Agenda packet, regular meeting, second session — Citrus Heights City Council Meetings, April 8, 2026 (part 1 of 2)

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Wednesday, April 8, 2026
City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA 95621 Teleconference Location - 6412 Oakcreek Way, Citrus Heights, CA 95621 6:00 PM REGULAR MEETING
This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-Council-Meetings-Speaker-Card-30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

The City provides three ways to watch a City Council Meeting.

IN PERSON - City Council meetings take place in the City Hall Council Chambers.

ONLINE - Watch the livestream and replay past meetings on the City website.

ON TELEVISION - Watch live and replays of meetings on Sac Metro Cable, Channel 14.

LEVINE ACT:

The Levine Act (Government Code Section 84308) requires parties to a proceeding before the City of Citrus Heights involving a license, permit or other entitlement for use to disclose any contribution over $500 made to a City elected or appointed officer (including Council Members and Planning Commissioners) within the 12 months before and 12 months after the City decision, and are prohibited from making, participating in, or using their official position to influence the decision.

April 8, 2026 City Council Agenda Packet
04-08-26 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski- Costa, Nelson, Schaefer, Middleton, Lopez- Taff

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming April 19-25, 2026 As National Volunteer Week

5. Proclamation Of The City Of Citrus Heights Proclaiming April 19-25, 2026 As National Library Week

6. Proclamation Of The City Of Citrus Heights Proclaiming April 12-18, 2026 As National Public Safety Telecommunicators Week

7. Proclamation Of The City Of Citrus Heights Proclaiming April 12-18, 2026 As National Animal Care & Control Appreciation Week

8. Police Department Annual Report

9. Presentation By The General Services Department – Capital Improvement Projects Update

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council ’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “ Public Comment ” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

10. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of February 11, 2026

11. SUBJECT: Adoption Of Annual Strategic Planning Objectives STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Strategic Objectives for April 2026 to June 2027

12. SUBJECT: Primrose Drive And Various Repairs Project Award Of Construction Contract STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with All-American Construction, Inc. for Construction of the Primrose Drive and Various Repairs Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301

13. SUBJECT: Resolution Authorizing Applications For Grant Funding From The Sacramento Area Council Of Governments (SACOG) 2026 Federal Funding Programs STAFF REPORT: R. Cave / L. Blomquist / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Priority Projects for the Various Funding Programs

14. SUBJECT: Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane) Project GS 25-15 Professional Engineering Services Agreement STAFF REPORT: C. Kempenaar / R. Cave / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Professional Services Agreement with Mark Thomas & Company, Inc. for the Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane)

15. SUBJECT: Annual Comprehensive Financial Report, Single Audit Report, And Audited Financial Statements And Compliance Report For Transportation Development Act Funds STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2025, the Audit Communication Letter, the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters, the Single Audit Report for the fiscal year ended June 30, 2025, and the City of Citrus Heights Transportation Development Act (TDA) Funds Audited Financial Statements and Compliance Report for the fiscal year ended June 30, 2025 Item 15 Staff Report - Revised 4/8/26
(REVISED) STAFF REPORT - ACFR AUDITOR REPORTS SINGLE AUDIT TDA AUDIT.PDF

16. SUBJECT: Approval Of Investment Policy Updates
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-_____, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Investment Policy and Delegating Authority to the Administrative Services Director to Invest Funds in Accordance with the Investment Policy

REGULAR CALENDAR

17. SUBJECT: Approval Of Sunrise MarketPlace Property-Based Improvement District 2025 Annual Report STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution No. 2026-____, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Sunrise MarketPlace 2025 Annual Report

18. SUBJECT: Consider Policy Adoption For Public Meeting Disruption Procedures Under Brown Act Amendments (SB 707) STAFF REPORT: A. Van
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Adopting a City Council Policy on Disruption of Telephonic or Internet Service during Public Meetings

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

19. SUBJECT: Discussion Of City’s Regulations For Temporary Signs Placed In The Public Right-Of- Way STAFF REPORT: A. Van

ADJOURNMENT
AMERICANS WITH DISABILITIES ACT:

If you need a disability- related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916- 725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

WRITINGS RECEIVED AFTER AGENDA POSTING:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk’s Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

Documents:

City Council meetings take place in
the City Hall Council Chambers.

MariJane Lopez-Taff, Mayor
Porsche Middleton, Vice Mayor
Dr. Jayna Karpinski-Costa, Council Member
Kelsey Nelson, Council Member
Tim Schaefer, Council Member

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Wednesday, April 8, 2026
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Teleconference Location – 6412 Oakcreek Way, Citrus Heights, CA 95621 Regular Meeting 6:00 p.m.

This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-Council-Meetings- Speaker-Card-30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

The City provides three ways to watch a City Council meeting.

IN PERSON ONLINE ON TELEVISION
LEVINE ACT:

April 3, 2026
_______________________
Amy Van, City Clerk
Watch the livestream and replay past
meetings on the City website.

Watch live and replays of meetings
on Sac Metro Cable, Channel 14.

Agenda Packet Page #1
Citrus Heights City Council Wednesday, April 8, 2026

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5:00 – 5:45 PM
Reception for Citrus Heights Volunteers – Citrus Heights City Hall

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming April 19-25, 2026 as National Volunteer Week

5. Proclamation of the City of Citrus Heights Proclaiming April 19-25, 2026 as National Library Week

6. Proclamation of the City of Citrus Heights Proclaiming April 12-18, 2026 as National Public Safety Telecommunicators Week

7. Proclamation of the City of Citrus Heights Proclaiming April 12-18, 2026 as National Animal Care & Control Appreciation Week

8. Police Department Annual Report

9. Presentation by the General Services Department – Capital Improvement Projects Update

PUBLIC COMMENT
This is an opportunity to make a public comment on non-agenda items. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
CONSENT CALENDAR (Estimated Start Time 7:45 p.m.)
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

10. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of February 11, 2026

REGULAR CITY COUNCIL MEETING
6:00 PM
Agenda Packet Page #2
Citrus Heights City Council Wednesday, April 8, 2026

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11. SUBJECT: Adoption of Annual Strategic Planning Objectives STAFF REPORT: A. Feeney
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Strategic Objectives for April 2026 to June 2027

12. SUBJECT: Primrose Drive and Various Repairs Project Award of Construction Contract STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with All-American Construction, Inc. for Construction of the Primrose Drive and Various Repairs Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301

13. SUBJECT: Resolution Authorizing Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs STAFF REPORT: R. Cave / L. Blomquist / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Priority Projects for the Various Funding Programs

15. SUBJECT: Annual Comprehensive Financial Report, Single Audit Report, and Audited Financial Statements and Compliance Report for Transportation Development Act Funds STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2025, the Audit Communication Letter, the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters, the Single Audit Report for the fiscal year ended June 30, 2025, and the City of Citrus Heights Transportation Development Act (TDA) Funds Audited Financial Statements and Compliance Report for the fiscal year ended June 30, 2025

16. SUBJECT: Approval of Investment Policy Updates
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-_____, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Investment Policy and Delegating Authority to the Administrative Services Director to Invest Funds in Accordance with the Investment Policy

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Citrus Heights City Council Wednesday, April 8, 2026

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REGULAR CALENDAR (Estimated Start Time 7:50 p.m.)

17. SUBJECT: Approval of Sunrise MarketPlace Property-Based Improvement District 2025 Annual Report
STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution No. 2026-____, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Sunrise MarketPlace 2025 Annual Report

18. SUBJECT: Consider Policy Adoption for Public Meeting Disruption Procedures under Brown Act Amendments (SB 707)
STAFF REPORT: A. Van
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Adopting a City Council Policy on Disruption of Telephonic or Internet Service during Public Meetings

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

19. SUBJECT: Discussion of City’s Regulations for Temporary Signs Placed in the Public Right-of- Way
STAFF REPORT: A. Van

ADJOURNMENT

AMERICANS WITH DISABILITIES ACT:

If you need a disability-related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

WRITINGS RECEIVED AFTER AGENDA POSTING:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk’s Offic e at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

Agenda Packet Page #4

CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special and Regular Meetings of Wednesday, February 11, 2026 City Hall Council Chambers
6360 Fountain Square Dr., Citrus Heights, CA 95621

CALL SPECIAL MEETING TO ORDER
The special meeting was called to order at 5:03 p.m. by Mayor Lopez-Taff.

1. Roll Call: Council Members present: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff Council Members absent: None
Staff Members present: Feeney, D. Jones, R. Jones, Van

PUBLIC COMMENT
None

CLOSED SESSION

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) Number of potential cases: 1
The City Council, City Manager and City Attorney participated in the closed session.

REPORT OUT OF CLOSED SESSION
There was no reportable action from closed session.

ADJOURNMENT
Mayor Lopez-Taff adjourned the special meeting at 5:55 p.m.

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:00 p.m. by Mayor Lopez-Taff.

1. The Flag Salute was led by Council Member Karpinski-Costa.

2. Roll Call: Council Members present: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff Council Members absent: None
Staff Members present: Aguirre, Cuffe, Feeney, Huber, D. Jones, R. Jones, Kempenaar, Van and department directors.

3. The video statement was read by Acting City Clerk Jones.

ITEM 10
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Citrus Heights City Council Wednesday, February 11, 2026

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APPROVAL OF AGENDA

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Nelson, the City Council approved the agenda.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming February 2026 as Black History Month

Mayor Lopez-Taff read and presented the Proclamation to Lisa D. Taylor and members of the Purple Pageant.

PUBLIC COMMENT

Josh Gumacal with Congressman Bera’s office spoke about the bipartisan resolution introduced in the House of Representatives that declares the first Saturday after the Spring Equinox as “National Day of Play”. The resolution encourages people to get off their devices and connect with their community, friends and family. He expressed appreciation to the City for bringing forward its own resolution.

Charles Stone, Commander of American Legion Post 637, spoke about the annual Veteran’s Picnic scheduled for April 18, 2026. Richard Tkach spoke about a flag retirement ceremony planned for February 18. Mr. Stone announced that the annual Battle of the Bands will be on September 12.

Lisa Sanchez with the River City Waterway Alliance spoke about the group’s efforts to clean, restore and protect local waterways. The Alliance seeks to bring awareness to the health issues of Citrus Heights creeks, namely due to trash and debris. The City’s General Services Department has been partnering with the Alliance by disposing of the materials removed from the creeks. Ms. Sanchez thanked Construction/Maintenance Inspector Supervisor Velasquez and his crew, as well as Republic Services for their partnership. She encouraged the City to provide more attention and resources to the creeks within its jurisdiction. She announced that the Alliance’s 1,000th Event celebration will take place next week.

Randy Smith with the River City Waterway Alliance spoke about scheduling a meeting at Sylvan Oaks Library with residents, property owners and business owners who adjoin the creek to discuss the creek debris and issues with encampments. He would like to include District 1 Council Member Nelson, District 3 Council Member Schaefer, Sunrise Recreation & Park District, the Citrus Heights Police Department, and others.

Acting City Clerk Jones read the following public comment submitted by Bethany Brown, “I continue to urge to Citrus Heights City Council to adopt or reaffirm legislation that would designate our city as a sanctuary for all who live here. In addition, I urge you to update the Citrus Heights website to include answers to frequently asked questions regarding immigration and constitutional rights, resources for immigrants, refugees, protesters, and observers, as well as clear messaging from the Citrus Heights police department regarding their role in immigration enforcement and whether or not they will ask for immigration status or report immigration status to DHS. I look forward to seeing these issues addressed ITEM 10
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Citrus Heights City Council Wednesday, February 11, 2026

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on future council meeting agendas. Thank you for your consideration and your commitment to ensuring the safety of our community.”

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Nelson attended the State of Public Safety Address by Sacramento County District Attorney Thien Ho. She attended a meeting of the Arts & Cultural 2x2 and reviewed grant applications.

She went to a Citrus Heights Neighborhood Area 3 (CHANT) meeting.

Council Member Karpinski-Costa attended “History of Citrus Heights You Never Knew”, one of the free quarterly presentations hosted by the Citrus Heights Historical Society. She went to the Citrus Heights Rotary Club’s Annual Crab Feed. She attended a Sacramento Area Sewer District meeting and reported that the district won a national award for its Septic-to-Sewer Conversion Project.

Council Member Schaefer discussed his recent health issues and diagnosis and apologized for missing some commitments. He reported on a Sacramento Area Council of Governments (SACOG) Policy & Innovation Committee meeting. He went to a Sacramento Regional Transit District (SacRT) Board meeting and reported that SacRT has discontinued its contract with the Sacramento Police Department and has retained an agreement with the Sacramento County Sheriff’s Department. He discussed the SacRT Flex program.

Vice Mayor Middleton attended the Arts & Cultural 2x2 and the State of Public Safety Address. She participated in the “Fill the Boot for Burns” fundraiser.

Mayor Lopez-Taff went to the Big Day of Service kick-off, with the first large planning meeting. She announced the next planning meeting and reported that she has been coordinating with the Citrus Heights project co-captains to manage and promote all the projects within the City. She participated in the “Fill the Boot for Burns” fundraiser and displayed a plaque presented to the City by the Firefighters Burn Institute. She went to the Rotary Club’s Annual Crab Feed. She has attended several ribbon cutting ceremonies, including Gateway Nails & Spa. She reported on a meeting of the League of CA Cities Sacramento Valley Division, where she is now a board member. She is also on the Cal Cities Environmental Quality Policy Committee.

CONSENT CALENDAR

5. SUBJECT: Support for Annual Designation of the First Saturday After the Spring Equinox as “National Day of Play”
STAFF REPORT: A. Van
RECOMMENDATION: Adopt Resolution No. 2026-005, A Resolution of the City Council of the City of Citrus Heights, California, Expressing Support for the Annual Designation of the first Saturday after the Spring Equinox as “National Day of Play”

6. SUBJECT: Updated Housing Rehabilitation Program Guidelines to Incorporate the Permanent Local Housing Allocation as a Funding Source
STAFF REPORT: C. Kempenaar / N. Piva
RECOMMENDATION: Adopt Resolution No. 2026-006, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Updated Housing Rehabilitation Program Guidelines to Incorporate the Permanent Local Housing Allocation as a Funding Source ITEM 10
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Citrus Heights City Council Wednesday, February 11, 2026

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7. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2025.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Schaefer, the City Council adopted Consent Calendar Items 5, 6 and 7.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

REGULAR CALENDAR

8. SUBJECT: History and Arts Grant Requests – Committee Recommendation for Approval STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution 2026-007, A Resolution of the City Council of the City of Citrus Heights, California, Approving the History and Arts Grant Requests

Director Huber introduced the item. She reported that the City received two requests: from Royal Stage and the Citrus Heights Veterans Memorial Project. Both requests meet the program guidelines and were reviewed by the City Council’s Arts & Cultural 2x2.

Public Comment

Tiffany Corona with Royal Stage spoke about the organization’s theater and arts offerings and thanked the City for its support.

Kermit Schayltz and Scott Miller with the Citrus Heights Veterans Memorial Project provided a presentation detailing the project located at Calvary Cemetery and thanked the City for its support and partnership.

City Council questions and comments followed.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Nelson, the City Council adopted Resolution No. 2026-007, A Resolution of the City Council of the City of Citrus Heights, California, Approving the History and Arts Grant Requests.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

9. SUBJECT: Second Reading – Ordinance Establishing Commercial Property Reoccupancy Program
STAFF REPORT: M. Huber / C. Kempenaar / A. Turcotte / S. Lui / A. Aguirre ITEM 10
Agenda Packet Page #8
Citrus Heights City Council Wednesday, February 11, 2026

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RECOMMENDATION: Adopt Ordinance No. 2026-001, An Ordinance of the City Council of the City of Citrus Heights, California, Adding Chapter 52 to the Citrus Heights Municipal Code to Establish a Commercial Property Reoccupancy Program

Director Kempenaar provided a summary presentation for the benefit of stakeholders not in attendance at the January 28, 2026 City Council meeting. He reviewed the changes made to the program in response to feedback received. He discussed the proposed fees and noted that if businesses proactively register and meet the requirements, the fees would not apply.

Public Comment

Additional written public comment received since the posting of the agenda was distributed to the City Council, posted to the City website and copies were available for the public.

Greg Hall inquired about vacancy rates versus occupancy rates to better understand the impact of the program. Directors Kempenaar and Huber provided responses and summary metrics.

City Council questions and comments followed.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Schaefer, the City Council adopted Ordinance No. 2026-001, An Ordinance of the City Council of the City of Citrus Heights, California, Adding Chapter 52 to the Citrus Heights Municipal Code to Establish a Commercial Property Reoccupancy Program.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

10. SUBJECT: One Year Update: 2025-2027 Economic Development Work Plan STAFF REPORT: M. Huber / A. Aguirre

Director Huber and Management Analyst II Aguirre provided a presentation on the Plan, which is a City Council Strategic Objective. The Plan includes five economic development focus categories; Business Attraction Incentive Program guidelines; a new program that was designed based on feedback from engagement, called the Small Business Support Program;70 implementation steps to advance Economic Development; and 18 sets of metrics to objectively measure results. Director Huber discussed the results of streamlining regulations and processes, onboarding additional staff for economic development liaison and project coordination roles, implementing economic development incentives and programs, and direct business recruitment. She provided a report showing top-visited restaurants based on foot traffic and discussed feedback on the Design Support Fund. Analyst Aguirre presented the business expansion and retention efforts, including the Sign Improvement Grant, Business Safety Hub, and Annual Business Survey. She reported on Small Business Support & Innovation programs, such as the Love Local campaign, Businesses of Distinction, and engaging more businesses at events through the Economic Development Support Fund. She reviewed the marketing updates previously provided by Communications Officer Brown in the annual Communications Update. Director Huber spoke to contributions to the organizational culture, such as supporting the Livability Summit and the Chamber Leadership Citrus Heights, as well as upcoming campaigns, events and outreach.

City Council questions and comments followed.

No Action was taken by the City Council.

ITEM 10
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Citrus Heights City Council Wednesday, February 11, 2026

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Mayor Lopez-Taff invited high school students in the audience for their government classes to the podium to introduce themselves.

11. SUBJECT: Presentation of Findings and Recommendations for a Youth Advisory Commission or Youth Advisory Liaison
STAFF REPORT: A. Van
RECOMMENDATION: Staff recommends the following:

a. Receive a presentation on findings for a Youth Advisory Commission or Youth Advisory Liaison to City Council; and

b. Consider Adoption of Resolution 2026-008 , A Resolution of the City Council of the City of Citrus Heights, California, Establishing a Youth Advisory Commission.

City Clerk Van provided a presentation evaluating two youth civic engagement options, which has been established as a City Council Strategic Objective. The Youth Advisory Commission would consist of 13 Citrus Heights residents in grades 8–12. Members would serve one-year terms and meet monthly during the school year (September–May). The commission would advise the City Council and staff on youth- related policies, programs, and initiatives. The Youth Advisory Liaison would be a Junior or Senior in high school; attend and participate in City Council meetings with a designated seat at the dais; and could receive a stipend or scholarship. The recommendation was for the Council to establish a Youth Advisory Commission, and proposed next steps were discussed.

City Council questions and comments followed.

ACTION: On a motion by Council Member Schaefer, seconded by Council Member Nelson, the City Council adopted Resolution No. 2026-008, A Resolution of the City Council of the City of Citrus Heights, California, Establishing a Youth Advisory Commission.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

12. SUBJECT: Ordinance to Repeal Chapter 2, Article IV, Division 5. Construction Board of Appeals and Add Chapter 18, Article XXXI, Building Code Board of Appeals STAFF REPORT: C. Kempenaar / A. Van / J. Cuffe
RECOMMENDATION: Staff recommends the City Council:

a. Introduce for a First Reading, read by title only, and waive the first full reading of Ordinance No. 2026-002, An Ordinance of the City Council of the City of Citrus Heights, California, Repealing Chapter 2, Article IV, Division 5 Construction Board of Appeals and Adding Chapter 18, Article XXXI Building Code Board of Appeals, to the Citrus Heights Municipal Code Relating to Buildings and Building Regulations.

City Clerk Van presented on the item. Due to the challenges with recruitment and infrequency of meetings of the Construction Board of Appeals, staff recommended a transition to a Board of Appeals comprised of Building Officials in neighboring jurisdictions.

City Council questions and comments followed. Chief Building Official Cuffe responded to questions.

ITEM 10
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Citrus Heights City Council Wednesday, February 11, 2026

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ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Middleton, the City Council Introduced for a First Reading, read by title only, and waived the first full reading of Ordinance No. 2026-002, An Ordinance of the City Council of the City of Citrus Heights, California, Repealing Chapter 2, Article IV, Division 5 Construction Board of Appeals and Adding Chapter 18, Article XXXI Building Code Board of Appeals, to the Citrus Heights Municipal Code Relating to Buildings and Building Regulations.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

DEPARTMENT REPORTS

None

CITY MANAGER ITEMS

City Manager Feeney provided a presentation announcing that the Gateway Activation Plan Mitigated Negative Declaration public review period is February 16 – March 19, 2026. He thanked Congressman Ami Bera for securing Community Projects Funding, which will be utilized for the San Juan Avenue Phase 2 Project. He noted that City Hall will be closed on February 16 in observance of President’s Day.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

None

ADJOURNMENT

Mayor Lopez-Taff adjourned the regular meeting at 8:14 p.m.

Respectfully submitted,

__________________________
Amy Van, City Clerk

ITEM 10
Agenda Packet Page #11

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: April 8, 2026
TO: Mayor and City Council Members
FR
OM: Ashley J. Feeney, City Manager
SU
BJECT: Adoption of Annual Strategic Planning Objectives Recommendation
The
City Council and staff held the Annual Strategic Planning Session on March 18, 2026, where the City Council and executive staff reviewed the last goal period and developed new strategic objectives for the planning period April 2026 to June 2027. The next strategic planning session is anticipated to be held in March 2027.

St
aff recommends the City Council adopt Resolution No. 2026-___, a Resolution of the City Council of the City of Citrus Heights, California, Adopting the Strategic Objectives for April 2026 to June 2027.

St
rategic Plan Alignment
Thi
s item supports all the City Council three-year goals.

Fi
scal Impact
The
re is no fiscal impact with this action. Funding needed to achieve strategic goals and objectives is considered as part of the City’s budget adoption process. Strategic objectives that have potential fiscal impacts or budget ramifications will be discussed when those items are considered at future meetings.

Bac
kground
Si
nce incorporation, Citrus Heights has placed an emphasis on strategic planning to prioritize its policies, programs, and services for the coming year. The City Council, City Manager, and executive staff members participate in the goal and objective-setting process. It is the responsibility of the City Manager to oversee the implementation of the Strategic Plan, coordinating with the City's operating departments and divisions.

His
torically, a strategic planning session is held where the City Council reviews the goals and identifies a list of objectives to support the core goals. Implementation of these objectives is how ITEM 11
Agenda Packet Page #12
Subject: Adoption of Annual Strategic Planning Objectives Date: April 8, 2026

Page 2 of 2 ends

the City achieves our shared vision of a city of choice for residents and businesses to prosper and thrive.

Proposed Strategic Goals & Objectives

The current adopted Three-Year Goals (2024-2027) associated with the Strategic Plan are:

• Maintain and enhance fiscal stability while supporting operational excellence • Maintain public infrastructure and enhance all modes of transportation • Diversify for a vibrant economy
• Preserve and enhance public safety
• Enhance community vibrancy and engagement

On March 18, the City Council reviewed and discussed over 30 objectives for consideration. The Council provided direction on modifications to some objectives which have been updated accordingly. In addition, staff identified the responsible party(s) and timelines for each of the objectives considered. These recommended draft Strategic Objects Matrix (Exhibit A) serve as a work plan matrix to track the City Council-approved strategic objectives that are designed to create progress and meet community needs in each focus area.

As part of the annual cadence for Strategic Planning, the session traditionally occurs in March to align with the City’s budget processes. Staff recommends adopting a best practice this year by adjusting the strategic objectives timeline to better inform the budget and align with the City's fiscal year, which runs from July 1 to June 30. For the upcoming priorities, staff suggests setting the next strategic objectives period from April 2026 to June 2027, and thereafter, future objectives will be scheduled to coincide with the fiscal year. This approach ensures that any strategic objective requiring financial resources is fully integrated into the annual budget planning and mid-cycle budget considerations.

The recommended draft strategic objective statements and implementation measures are specifically designed to be community facing and serving to help address the community focus areas referenced above. The proposed strategic objectives for the April 2026 to June 2027 planning cycle include a number of non-community facing items as well, but are important to the organization and consistent with the discussion that came out of the March 18, 2026 Strategic Planning Session. The volume of City Council and staff work anticipated for delivery throughout 2026-2027 continues to be impressive. Staff will present a mid-year report to the City Council on implementation of the Strategic Objectives to provide opportunities for modifications based upon evolving needs, results, and return on investment.

Attachments:

1. Resolution of the City Council of the City of Citrus Heights, California, Adopting the Strategic Planning Objectives for April 2026 – June 2027 a. Exhibit A – Strategic Objectives Matrix for April 2026 – June 2027 ITEM 11
Agenda Packet Page #13
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, ADOPTING THE STRATEGIC OBJECTIVES FOR
APRIL 2026 TO JUNE 2027

WHEREAS, since incorporation, Citrus Heights has placed an emphasis on strategic planning to prioritize its policies, programs, and services for the coming year; and

WHEREAS, the City Council held its Annual Strategic Planning Session on March 18, 2026.

At this meeting, strategic objectives were discussed for each of the three-year goal areas (2024-2027); and

WHEREAS, strategic planning is a disciplined effort to produce fundamental actions that shape and guide an organization. The Strategic Objectives for April 2026 to June 2027 reflects finalized goals and objectives established by City Council and staff; and

WHEREAS, the adoption of the Strategic Objectives for April 2026 to June 2027 would confirm the City Council’s focus and direction to staff as a work plan for the 2026/2027 period; and

WHEREAS, the City Council intends to hold the next Annual Strategic Planning Session in March 2027 to discuss the City’s progress on implementation of the set objectives and will hold a Strategic Planning Session annually in March of each year; and

WHEREAS, there are numerous benefits to strategic planning, including: organizations can increase effectiveness and efficiency, improve understanding of the community’s needs, enhance organizational capabilities, and improve communications, and public relations.

NOW THEREFORE BE IT RESOLVED AND ORDERED the City Council hereby adopts the Strategic Objectives for April 2026 to June 2027 as outlined in Exhibit A.

BE IT FURTHER RESOLVED staff will present a mid-year report to the City Council on implementation of the Strategic Objectives for April 2026 to June 2027 to provide opportunities for modifications based upon evolving needs, results, and return on investment.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 8 th day of April 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

ITEM 11
Agenda Packet Page #14

MariJane Lopez-Taff, Mayor

ATTEST:

Amy Van, City Clerk

Exhibit

A. Strategic Objectives for April 2026 to June 2027
ITEM 11
Agenda Packet Page #15
March 18, 2026
1 CITY OF CITRUS HEIGHTS  STRATEGIC OBJE CTIVE S
April 2026 – June 2027

THREE-YEAR GOAL: MAINTAIN AND ENHANCE FISCAL STABILITY

WHILE SUPPORTING OPERATIONAL EXCELLENCE

WHEN

WHO

WHAT

STATUS

COMMENTS

DONE ON TARGET REVISED
1 May 30, 2027 • Administrative
Services
Director
Transition the City’s official web presence from a .net domain to a .gov domain to enhance credibility,
security, and compliance with federal standards.

Complete domain migration and update all associated
digital assets by the end of the fiscal year, ensuring
uninterrupted access for residents and stakeholders.

2 June 30, 2027 • Administrative
Services
Director
To maintain a highly skilled workforce, develop and
implement Employee Engagement and professional
development efforts to promote operational
excellence and provide opportunities for succession
planning and cross training. Present a department
report or memorandum on this effort to the City
Council. (Objective moved from 2025/2026 due to
staffing constraints.)

3 September 9, 2026 • Administrative
Services
Director
Develop and issue a Request for Proposals (RFP) for
independent audit services to ensure compliance with
regulatory requirements and maintain transparency in
financial reporting. The RFP will outline scope,
evaluation criteria, and timelines, with the goal of
selecting a qualified auditor.

4 June 30, 2027 • Administrative
Services Director
Continue Tyler Munis implementation and system
enhancements such as Encroachment Permits,
Finance Contracts, Fixed Assets components and
improved reporting.

5 January 27, 2027 • Administrative
Services Director
Develop and issue Request for Proposals (RFP) on
City Government phone system replacement due to

ITEM 11
Agenda Packet Page #16
March 18, 2026
2 end of life of current system by 2026/27.
6 October 28, 2026 • General Services
Director
Issue Request for Proposals (RFP), award
construction contract and complete tenant
improvements on the Old Auburn Road Animal
Services building renovation.

7 June 10, 2026 • Administrative
Services Director
Conduct and complete negotiations with both
bargaining units to reach agreements that support the
City’s operational goals.

ITEM 11
Agenda Packet Page #17
March 18, 2026
3 THREE-YEAR GOAL: MAINTAIN PUBLIC INFRASTRUCTURE AND ENHANCE ALL

MODES OF TRANSPORTATION
#

WHEN

WHO

WHAT

STATUS

COMMENTS

DONE ON TARGET REVISED
8 August 12,
2026
• General Services
Director
Complete construction of the Roseville Road /
Butternut Drive Systematic Signalized Intersection
Improvement Project.

9 July 8, 2026 • General Services
Director
Complete construction of the 2025 Roadway
Resurfacing Project.

10 August 12,
2026
• General Services
Director
Award construction contract for the 2026/2027
Accessibility & Drainage Project.

11 April 30, 2027 • General Services
Director
Complete environmental documentation for the
Arcade Cripple Creek Trail-Mariposa Extension
Project.

12 February 10,
2027
• General Services
Director
Develop the next 3-year pavement preservation
program for Council review and approval (2028-2030
streets).

13 March 10, 2027 • General Services
Director
Award construction contract for the San Juan Avenue
Complete Streets Phase 1B Project.

14 June 10, 2026 • General Services
Director
Issue Request for Proposal (RFP) and award new
contracts for multi-year Pavement and Concrete
Maintenance Services.

ITEM 11
Agenda Packet Page #18
March 18, 2026
4 THREE-YEAR GOAL: DIVERSIFY FOR A VIBRANT ECONOMY
#

WHEN

WHO

WHAT

STATUS

COMMENTS

DONE ON TARGET REVISED
15 June 24, 2026 • Economic
Development and
Community
Engagement Director
Develop a recruitment strategy to advance investment
attraction and tenant recruitment efforts to secure
complementary hospitality, entertainment, dining,
housing and retail uses that support the sports center
and position the Sunrise district as a regional
destination.

16 January 1, 2027 • City Manager
• Community
Development Director
• Economic
Development and
Community
Engagement Director
Negotiate and bring forward for City Council
consideration a Development Agreement with project
partners consistent with the Economic Development
and Participation Agreement (EDPA) establishing the
roles, responsibilities, performance benchmarks, and
implementation framework necessary to advance the
Sunrise Sports Center project.

17 January 1, 2027 • Community
Development Director
Complete required CEQA environmental review and
secure necessary planning approvals for the Sunrise
Sports Center project, including any Specific Plan
amendments, use permits, design review approvals,
and related entitlements required to enable
development.

18 January 1, 2027 • City Manager
• City Attorney
Advance site acquisition or other land control
mechanisms necessary to secure the project site and
enable redevelopment consistent with the Sunrise
Tomorrow Specific Plan, including negotiation and
execution of site control agreements.

19 January 1, 2027 • City Manager
• Community
Development Director
• Economic
Development and
Establish the financing structure necessary to support
project development and related infrastructure
improvements, including development of a bonding
framework and presentation of financing options for
City Council consideration.

ITEM 11
Agenda Packet Page #19
March 18, 2026
5 Community
Engagement Director
• Administrative
Services Director
20 May 27, 2027 • Economic
Development and
Community
Engagement Director
Explore workforce development opportunities,
including potential partnerships with post-secondary
schools.

ITEM 11
Agenda Packet Page #20
March 18, 2026
6 THREE-YEAR GOAL: PRESERVE & ENHANCE PUBLIC SAFETY
#

WHEN

WHO

WHAT

STATUS

COMMENTS

DONE ON TARGET REVISED
21 August 13,
2026
• Police Chief

Create and implement an E-bike education and
enforcement program to curb unsafe behavior.

22 October 14,
2026
• Police Chief

Review and adjust, as appropriate, the pedestrian
safety ordinance to further the beautification efforts
and increase driver and pedestrian safety near
intersections.

23 February 24,
2027
• Police Chief
• Community
Development Director
• Economic
Development and
Community
Engagement Director
Create a process and procedure for monitoring vacant
buildings consistent with the Commercial Property Re-
occupancy (CPR) ordinance.

24 October 1, 2026 • Police Chief

Transition the digital evidence platform (officer
supporting camera technologies) to a new vendor to
align with best practices and requirements for
evidence retention.

25 January 18,
2027
• Police Chief

Evaluate the public safety impact of recent grant
funded technology enhancements to determine best
platforms to retain for future operations including a
review of possible future funding sources.

26 November 30,
2026
• Police Chief

Utilize public safety grant funding to acquire a new
armored rescue vehicle to replace the current
outdated platform.

27 May 13, 2026 • Police Chief

Evaluate the efficacy of current red-light photo
enforcement program and work with City Council to
determine the future of the program.

ITEM 11
Agenda Packet Page #21
March 18, 2026
7 28
August 17,
2026
• Police Chief

Develop and implement a Business Watch program in
partnership with the local Chamber of Commerce to
enhance communication between businesses,
promote crime prevention strategies, and enhance
collaboration among local enterprises.

ITEM 11
Agenda Packet Page #22
March 18, 2026
8 THREE-YEAR GOAL: ENHANCE COMMUNITY VIBRANCY AND ENGAGEMENT #

WHEN

WHO

WHAT

STATUS

COMMENTS

DONE ON TARGET REVISED
29 March 24,
2027
• City Manager
• General Services
Director
• City Attorney

Evaluate and develop opportunities for the Coronado
property to support recreation, culture, and nature-
based uses that enhance community identity and
public space offerings. Present to the City Council for feedback and direction.

30 June 24,
2027
• City Clerk
• Economic
Development and
Community
Engagement Director

Present the City Council with a plan to expand and
formalize engagement with community members for
whom English is a second language by increasing
outreach efforts, fostering partnerships with
community leaders and organizations, and improving
access to City services and civic participation.

31 August 19,
2026
• General Services
Director

Commemorate the completion of the Auburn
Boulevard Complete Streets revitalization by hosting a
ribbon cutting event to recognize the contributions and efforts of the community, City Council, staff, stake
holders and construction team.

32 August 26,
2026
• General Services
Director
• City Clerk

Create policy guidelines for displaying or installing art on public property for Council review and
consideration.

33 February 10,
2027
• City Manager
• City Clerk
Identify and pursue partnership opportunities that will continue to foster vibrant, accessible, and community-
inspired public facing art installations inviting
community stakeholders to engage, connect, and
celebrate local creativity together.

ITEM 11
Agenda Packet Page #23

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: April 8, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SU
BJECT: Primrose Drive and Various Repairs Project Award of Construction Contract
Recommendation
The Primrose Drive and Various Repairs Project (Project) consists of the following items of work, all in preparation for the upcoming 2025 Roadway Resurfacing Project:
• On Primrose Dr:
o Reconstruct failed and damaged sections of existing curb/gutter/sidewalk o Replace deteriorated and damaged storm drain facilities • On Woodcreek Dr: replace damaged storm drain facility • On Greenback Ln Frontage Road: median modifications
Staff recommends the City Council adopt Resolution No. 2026-____, a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with All-American Construction, Inc. for construction of the Primrose Drive and Various Repairs Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301.

Strategic Plan Alignment
This item aligns with the Citrus Heights City Council Strategic Plan Three Year Goal:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation Fiscal Impact
There is no impact to the Fiscal Year (FY) 2025/2026 budget. The full funding for the project is summarized in the following tables, consistent with the current 5-Year Capital Improvement Program (CIP) and approved 2-Year budget for “Pavement Restoration Project.” ITEM 12
Agenda Packet Page #24
Subject: Primrose Drive and Various Repairs Project – Award of Construction Contract Date: April 8, 2026

Page 2 of 3 ends

Table No 1. – Estimated Project Costs
Project Component Estimated Cost ($)
Recommended Contract Award $237,263.50
15% Contingency $35,589.53

Grand Total $272,853.03
Table No 2. – Project Funding
Source Fund Fund No. Amount ($)
Storm Water Utility Funds 209 $116,052.25
Gas Tax 205 $156,800.78
Totals $272,853.03
Background and Analysis
On December 14, 2023, the City Council approved the Pavement Restoration Plan for 2025 through 2027. The scope of work for the Project includes necessary upgrades to the existing storm drain system, repair damaged sidewalk locations, reconstruct curb ramps to current standards and construct new curb ramps when required for compliance with the ADA.

Primrose Drive is included on the 2027 list of the Council approved Pavement Restoration Plan.

However, due to the severe degradation of the asphalt concrete on this roadway, it is recommended to move this roadway from the 2027 list to the 2025 list. The roadways on the 2025 list are scheduled for resurfacing beginning in Spring 2026.

Historically, the City has performed accessibility and drainage improvement projects as a predecessor to annual street resurfacing project, as required by the Americans with Disabilities Act (ADA) and in conformance with the City’s ADA Transition Plan. In addition, prior to resurfacing roadways, it has been the City’s practice to perform sidewalk, curb, gutter and underground storm drain pipe repairs.

On May 28, 2025, the City Council adopted a resolution awarding a construction contract for the 2025 Accessibility and Drainage project which included all concrete (i.e. curb ramp, sidewalk, curb & gutter) and storm drain repairs along streets included on the 2025 Pavement Restoration Plan. This project is substantially complete and the contractor has demobilized from the site.

As Primrose Drive was moved from the 2027 to the 2025 list, after substantial completion of the 2025 Accessibility and Drainage Project, and in order to secure the lowest and most competitive price, the Primrose Drive and Various Repairs Project was developed and includes the following items of work:
• On Primrose Dr:
o Reconstruct failed and damaged sections of existing curb/gutter/sidewalk o Replace deteriorated and damaged storm drain facilities • On Woodcreek Dr: replace damaged storm drain facility • On Greenback Ln Frontage Road: median modifications
ITEM 12
Agenda Packet Page #25
Subject: Primrose Drive and Various Repairs Project – Award of Construction Contract Date: April 8, 2026

Page 3 of 3 ends

On February 18, 2026, the City Engineer approved the Project Plans and construction bid documents for the project prepared by City staff.

The Project was advertised on February 18, 2026 and construction bids were received and read aloud on March 12, 2026. A total of seven bids were received and after a thorough analysis, staff determined that All-American Construction, Inc.’s bid of $237,263.50 was the lowest responsive base-bid for the project, based on the prices submitted. The complete bid results are shown in the following table:

Table No 3 – Project Bid Tabulation
Bidder Base Bid Total
All-American Construction, Inc. $237,263.50
Platinum General Engineering $243,357.56
Hyatt Contracting $259,640.00
FBD Vanguard Construction, Inc. $260,812.00
Central Valley Engineering & Asphalt $274,601.00
B&M Civil LLC $343,488.00
Martin General Engineering, Inc $438,594.00
The engineer’s estimate for the base bid of this project was $276,700.00.

All-American Construction, Inc. base bid for the project is $237,263.50. This bid is based upon estimated quantities, which may vary due to actual field conditions. Ultimately, the Contractor is paid for actual work completed based upon the unit price bid, which may require the approval of a change order. Change orders for amounts less than 15% of the total contract price shall require prior written approval of the City Manager or his designee. Change orders for amounts equal to or greater than 15% of the total contract price shall require prior approval of the City Council.

Staff recommends the City Council adopt the attached Resolution authorizing the City Manager to execute an agreement with All-American Construction, Inc. for construction of the Primrose Drive and Various Repairs Project.

Environmental Review
California Environmental Quality Act (CEQA): The Project is Categorically Exempt from review under CEQA pursuant to Sections 15301, as the repair, maintenance or modification of existing facilities involve no or negligible expansion of use beyond that which currently exists.

Attachments

1. Resolution No. 2026-_____ A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with All-American Construction, Inc. for Construction of the Primrose Drive and Various Repairs Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301.

ITEM 12
Agenda Packet Page #26
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH ALL-AMERICAN CONSTRUCTION, INC. FOR

CONSTRUCTION OF THE PRIMROSE DRIVE AND VARIOUS REPAIRS PROJECT

AND FINDING THE PROJECT IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15301

WHEREAS, the City Council of the City of Citrus Heights, California, desires to proceed with construction of the Primrose Drive and Various Repairs Project (Project); and

WHEREAS, the Project will construct sidewalk repairs, storm drain improvements and median modifications at various locations included throughout the City; and

WHEREAS, bids for the project were received, opened and read aloud on March 12, 2026, and All-American Construction, Inc. was determined to be the lowest responsive, responsible bidder for the Project; and

WHEREAS, sufficient Stormwater Utility (Fund 209) , Gas Tax (Fund 205) funds have been budgeted in Fiscal Year 25/26 and 26/27 to fund the Project.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby as follows:

1. Finds the Primrose Drive and Various Repairs Project is Categorically Exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15301, as the repair, maintenance or modification of existing facilities involve no or negligible expansion of use beyond that which currently exists.

2. Awards the Primrose Drive and Various Repairs Project to All-American Construction, Inc., who is the lowest responsive and responsible bidder in the March 12, 2026, bid opening.

3. Authorizes the City Manager is to execute an agreement with All-American Construction, Inc., in the amount of $237,263.50 for the Primrose Drive and Various Repairs Project and that a copy of the Agreement is available and on file in the City Clerk’s office and is incorporated herein by reference and made a part of this Resolution.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 8th day of April, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

ITEM 12
Agenda Packet Page #27

MariJane Lopez-Taff, Mayor
ATTEST:

_________________________________
Amy Van, City Clerk

ITEM 12
Agenda Packet Page #28

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: April 8, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
Mary Poole, Operations Manager
SU
BJECT: Resolution Authorizing Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs
Recommendation
The Sacramento Area Council of Governments (SACOG) has announced three 2026 Federal Funding Cycle Programs (Funding Programs): System Preservation Program, System Performance Program, and Next Generation Solutions & Clean Air Program. The three Funding Programs are open to sponsoring agencies within the six-county SACOG region. As part of the application process, a resolution is required authorizing City staff to submit applications on behalf of the City.

The application process also requires that the City identify priority projects that it may submit for funding under the SACOG 2026 Federal Funding Programs. The funding programs and City priority projects based on program eligibility and competitiveness are listed in the table below (not in priority order).

SACOG Federal
Funding Program Purpose City Priority Projects
System Preservation
Program
Invests in maintaining and
resurfacing major roadways that
keep people and goods moving
San Juan Complete Streets Phase 2
ITEM 13
Agenda Packet Page #29
Subject: SACOG 2026 Funding Program Resolution
Date: April 8, 2026

Page 2 of 3 ends

SACOG Federal
Funding Program Purpose City Priority Projects
System Performance
Program
Funds projects that improve how the
transportation system functions day-
to-day, including roadway and safety
improvements, transit upgrades,
electric vehicle charging, new bike
and pedestrian connections, mobility
hubs, and smart-transportation
technologies that help manage traffic
and improve reliability
- Arcade Cripple Creek Trail
(ACCT) Extension – Stock
Ranch Center to Sylvan Road
- Gateway Activation Project
(GAP) - Multi Modal
Improvements
- San Juan Complete Streets
Phase 2 – Multi-Modal
Improvements
- Sunrise Tomorrow Frontage
Improvements
Next Generation
Solutions & Clean Air
Program
Supports projects that reduce
emissions and improve air quality—
such as high-capacity transit, zero-
emission vehicles and charging
infrastructure, bikeways and trails,
Complete Streets, traffic flow
improvements, and programs that
encourage carpooling, transit use,
and other clean transportation
options
- Arcade Cripple Creek Trail
(ACCT) Extension – Stock
Ranch Center to Sylvan Road
- Gateway Activation Project
(GAP) - Multi Modal
Improvements
- San Juan Complete Streets
Phase 2 – Multi-Modal
Improvements
- Sunrise Tomorrow Frontage
Improvements
Staff recommends the City Council adopt Resolution 2026-____, a Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Priority Projects for the Various Funding Programs.

Strategic Plan Alignment
This item aligns with the Citrus Heights City Council Strategic Plan Three Year Goal:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation

ITEM 13
Agenda Packet Page #30
Subject: SACOG 2026 Funding Program Resolution
Date: April 8, 2026

Page 3 of 3 ends

Fiscal Impact
There is no impact to the Fiscal Year (FY) 2025/2026 budget. A positive fiscal impact will be realized if funding applications are approved and funds are awarded. Typically, a local match is required for federal grant funds, typically in the form of a percentage match of 11.47% of the overall project or grant award. If the City is awarded funds, the local match amount could be provided with local funds or a combination of local funds and staff time.

Attachments

1. Resolution No. 2026-_____, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Priority Projects for the Various Funding Programs ITEM 13
Agenda Packet Page #31
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS

HEIGHTS, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF APPLICATIONS

FOR GRANT FUNDING FROM THE SACRAMENTO AREA COUNCIL OF
GOVERNMENTS (SACOG) 2026 FEDERAL FUNDING PROGRAMS AND

IDENTIFYING PRIORITY PROJECTS

FOR THE VARIOUS FUNDING PROGRAMS

WHEREAS, the Sacramento Area Council of Governments (SACOG) has announced three 2026 Federal Funding Cycle Programs (Funding Programs), which are open to sponsoring agencies within the six-county SACOG region: System Preservation Program, System Performance Program, and Next Generation Solutions & Clean Air Program; and

WHEREAS, the System Preservation Program invests in maintaining and resurfacing major roadways that keep people and goods moving; and

WHEREAS, the System Performance Program funds projects that improve how the transportation system functions day-to-day, including roadway and safety improvements, transit upgrades, EV charging, new bike and pedestrian connections, mobility hubs, and smart- transportation technologies that help manage traffic and improve reliability; and

WHEREAS, the Next Generation Solutions & Clean Air Program supports projects that reduce emissions and improve air quality—such as high-capacity transit, zero-emission vehicles and charging infrastructure, bikeways and trails, Complete Streets, traffic flow improvements, and programs that encourage carpooling, transit use, and other clean transportation options; and

WHEREAS, eligible projects for Funding Programs must be listed in the 2025 Blueprint or fit within 2025 Blueprint lump-sum project categories including but not limited to road maintenance and reconstruction, transit vehicle replacements, operational improvements, Intelligent Transportation Systems, and bicycle and pedestrian investments; and

WHEREAS, SACOG limits Funding Programs grant applications to no more than three applications per sponsoring agency for any one of the three different Funding Programs to SACOG, up to a maximum of nine total applications per sponsoring agency; and

WHEREAS, applicants shall affirm their commitment to delivering projects in accordance with the requirements of Surface Transportation Block Grant (STBG) Program and Congestion Mitigation & Air Quality (CMAQ) Improvement Program, as applicable; and

WHEREAS, grant proposals for construction work shall obligate Funding Program dollars for construction activities no later than the end of federal Fiscal Year 2028-29; and

WHEREAS, SACOG will not provide additional federal or state funding in the event that cost overruns are identified; and

WHEREAS, project sponsors shall commit to providing local matching dollars, typically

11.47% of the total project cost; and

ITEM 13
Agenda Packet Page #32

WHEREAS, SACOG requires that if awarded federal funds by the SACOG Board, City of Citrus Heights staff responsible for project delivery must attend quarterly project delivery meetings with SACOG staff to receive assistance until project closeout.

NOW, THEREFORE, BE IT RESOLVED by the City of Citrus Heights as follows:

1. The General Services Director, City Engineer or designee is authorized to execute all documents necessary to committing the City of Citrus Heights to federal, state and regional funding and project delivery requirements, including but not limited to abiding by Funding Program guidelines.

2. The City acknowledges that in the event of receiving an award by the SACOG Board of Funding Program dollars, that the City of Citrus Heights will be required to abide by multiple timely use of funding requirements described in Funding Program guidelines and SACOG’s Regional Delivery Policies, including but not limited to: obligating federal funding no later than the end of federal fiscal year 2028-2029 for construction activities; committing to securing required local match dollars; acknowledging that SACOG does not cover cost overruns; and committing staff to attend delivery meetings until project closeout.

3. The General Services Director, City Engineer or designee is authorized to submit the following applications for 2026 Six-County Federal Funding Cycle Programs, with a maximum of three applications allowed per funding program area:

4. The following projects are priority projects to be submitted under any and all funding programs for which they are eligible:

o Arcade Cripple Creek Trail – Sylvan to Stock Ranch Center Extension – an extension of the Arcade Cripple Creek Trail, the next phase in the City’s citywide trail network;

o Gateway Activation Project (GAP) – On Old Auburn Road, between Wachtel Way and the City’s eastern boundary and on Wachtel Way south to the Arcade Cripple Creek Trail, the project will extend multi modal facilities, upgrade intersections and improve pedestrian safety and crossings;

o San Juan Complete Streets Phase 2 (Greenback Lane to Spicer Drive): a complete streets improvement project including but not limited to multi modal safety and accessibility improvements, traffic signa upgrades and signal coordination, crossing improvements, lighting improvements, and resurfacing; and

o Sunrise Tomorrow Specific Plan Frontage Improvement and Related Projects – transportation capital projects to support the Sunrise Tomorrow Specific Plan implementation, including frontage improvements along Greenback Lane and Sunrise Boulevard, Bus Rapid Transit, the Transit Center and related elements.

ITEM 13
Agenda Packet Page #33

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 8th day of April, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

_________________________________
Amy Van, City Clerk

ITEM 13
Agenda Packet Page #34

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: April 8, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Casey Kempenaar, Community Development Director
Regina Cave, General Services Director
Mary Poole, Operations Manager
SU
BJECT: Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane) Project GS 25-15 Professional Engineering Services Agreement
Reco
mmendation
St
aff recommends the City Council adopt Resolution No. 2026- ___, a Resolution of the City Council of the City of Citrus Heights , California, authorizing the City Manager to execute a Professional Services Agreement with Mark Thomas & Company, Inc. for the Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane).

St
rategic Plan Alignment
Th
is item is in alignment with the following City Council priority:

Goal
: Diversify for a Vibrant Economy
Objective: Establish the financing structure necessary to support project development and related infrastructure improvements, including development of a bonding framework and presentation of financing options for City Council consideration.

Fi
scal Impact
Thi
s Project scope subject to this contract authorization is funded by a Reconnecting Communities Green Means Go grant from SACOG in the amount of $450,000. The initial contract amount for this phase of the project is: $449,090. An additional $35,303.00 is estimated for the optional task for geotechnical work. If this task is needed, the associated cost will be funded by the multi-modal impact fee program.

ITEM 14
Agenda Packet Page #35
Subject: Sunrise Tomorrow Specific Plan Frontage Improvement Project – Professional Services Contract Date: April 8, 2026

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Background and Analysis

The Sacramento Area Council of Governments (SACOG) has received $22.5 million from the U.S. Department of Transportation Reconnecting Communities Grant to fund the next phase of SACOG’s award-winning Green Means Go program. The planning investment will accelerate infill development in ten areas across the region in designated Green Zones, or areas that have been identified for infill development, to reimagine neighborhoods and address transportation needs. In partnership with SACOG, the City was awarded $450,000 to support the preliminary engineering for the Sunrise Tomorrow frontage improvements – Sunrise Boulevard and Greenback Lane. The scope of work includes the following:

- Preliminary Engineering Design for the full frontage of Sunrise Boulevard and Greenback Lane including:
o Intersection modifications
o Green Loop Multi-Use Trail
o Multi-modal transit facility and associated infrastructure o Utility points of connection
o Phasing
o Environmental (NEPA review)

In 2025, the City executed an agreement with SACOG to secure the funding to support this effort and to allocate the $450,000 grant.

The City issued a Request for Proposals (RFP) in December 2025, and received two proposals by the February 5, 2026, due date. The City used a qualifications-based selection process consistent with Caltrans Local Assistance Procedures Manual (LAPM), Chapter 10, which governs consultant selection. Interviews of the two consultant teams were conducted in February 2026.

Proposals and interviews were evaluated based on the criteria specified in the RFP. As a result of the process, Mark Thomas & Company, Inc. was determined to be the most qualified consultant. They provided an in-depth and detailed proposal, introduced a highly qualified team and demonstrated a clear understanding of the work involved in the design and public outreach of the grant funded project.

Staff and the top-ranked consultant have fine-tuned the scope and cost for work associated with the Project Approval and Environmental Document (PA/ED) phase of the project to ensure that the services provided meet the City’s needs and that the work will be done cost effectively.

Although the RFP solicited proposals for all phases of the Project, only PA/ED funds have been authorized for expenditure at this time. The proposed contract is to award the portion of the Project scope associated with the PA/ED phase. Future phases including Right of Way (ROW) and Construction will not begin until formal authorization to proceed is received from Caltrans.

Staff will continue to fine-tune the scope and fee for future phases of the project. A contract amendment and City Council approval will be needed to authorize work on the ROW, final design and construction phases of the Project.

The City will continue to seek funding for design and construction of complete streets improvements for future phases on the Sunrise Tomorrow site.

ITEM 14
Agenda Packet Page #36
Subject: Sunrise Tomorrow Specific Plan Frontage Improvement Project – Professional Services Contract Date: April 8, 2026

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Environmental Review

The proposed project was reviewed and approved as part of the Sunrise Tomorrow Specific Plan and associated Environmental Impact Report (EIR), no further review is required under the California Environmental Quality Act (CEQA). The project is funded by federal funding, which requires evaluation under National Environmental Policy Act (NEPA), which is included with the proposed scope of work.

Attachments

1. Resolution 2026- ___ a Resolution of the City Council of the City of Citrus Heights , California, authorizing the City Manager to execute a Professional Services Agreement with Mark Thomas & Company, Inc. for the Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard and Greenback Lane).

2. Scope of Work for the Sunrise Tomorrow Specific Plan Frontage Improvement Project

ITEM 14
Agenda Packet Page #37
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A

PROFESSIONAL SERVICES AGREEMENT WITH MARK THOMAS & COMPANY, INC. FOR THE SUNRISE TOMORROW FRONTAGE IMPROVEMENT PROJECT (SUNRISE BOULEVARD & GREENBACK LANE)

WHEREAS, in 2025, the City executed an agreement with the Sacramento Area Council of Governments (SACOG) to implement the Reconnecting Communities Grant SACOG received from the United States Department of Transportation; and

WHEREAS, the grant is intended to accelerate infill development in ten areas across the region in designated Green Zones including the Sunrise MarketPlace Green Zone, to reimagine neighborhoods and address transportation needs; and

WHEREAS, the City circulated a request for proposals for professional engineering services in accordance with Caltrans procedures for consultant selection and Mark Thomas & Company Inc. was selected as the most qualified consultant team to provide the required services; and

WHEREAS, the City now desires to enter into a Professional Services agreement with Mark Thomas & Company Inc. in an amount not to exceed $484,393.00; and

WHEREAS, this funding includes $449,090.00 for the Reconnecting Communities grant funded portion of the project scope and an estimated $35,303.00 for the optional task for geotechnical work; and

WHEREAS, the contract will be funded by a Reconnecting Communities grant ($450,000) and Multi-Modal Impact Fees ($35,303); and

WHEREAS, the contract may be amended to add additional scope or work to provide needed professional engineering services associated with future phases of the Project as funding is secured.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby authorize the City Manager to execute a Professional Services Agreement with Mark Thomas & Company Inc. For the Sunrise Tomorrow Frontage Improvement Project in a form approved by the City Attorney.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

ITEM 14
Agenda Packet Page #38
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 8th day of April, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MaryJane Lopez-Taff Mayor
ATTEST:

Amy Van, City Clerk
ITEM 14
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SCOPE OF WORK
Mark Thomas will follow the scope of work below for the City of Citrus Height’s Sunrise Tomorrow Specific Plan Frontage Improvement Project. In the performance of this scope of services, Mark Thomas will diligently perform this scope of work and will be responsible for items of work under this contract to the extent that issues arising from the performance of these services are within our reasonable control, and the Mark Thomas' obligation to indemnify and defend are limited to the extent actually caused by Mark Thomas in the performance of this scope of work.

Mark Thomas will provide contract documents (final) design services needed to perform the tasks noted below. All reports and/or studies, renderings and exhibits, plans and specifications, calculations, etc. developed by Mark Thomas will at a minimum comply with the City of Citrus Heights’s Standards. Electronic file Deliverables will be in PDF (Portable Document Format), Microsoft (MS) Word, MS Excel, and/or CAD (Autodesk AutoCAD 2022 format).

TASK 1. PROJECT MANAGEMENT AND COORDINATION
Task 1.1. Project Management
This task includes project management time to manage the scope tasks below. Mark Thomas' project manager will plan, organize, direct, and monitor project work activities and resources in accordance with the contracted scope, schedule, and budget. This task includes performing ongoing general project management with the client, subconsultants and stakeholders including preparing contract paperwork, monthly status reports, memos, letters, and email, making phone calls and maintaining project files. This task will also include preparing monthly status reports, which will be submitted with invoices. The status report will outline all activities for which charges have been made by the Consultant or sub-Consultants. Mark Thomas will prepare a draft status report and submit it for approval prior to submitting the first invoice.

Task 1.2. Project Schedule and File Management
This task will include developing a master Critical Path Method (CPM) schedule and maintaining it throughout the design process. Input will be collected from Project Development Team (PDT) meetings and incorporated for the duration of the project. The CPM schedule will be updated monthly and at major project milestones, will consider City peer review, and will be prepared using Microsoft Project software.

Mark Thomas will maintain an organized project file structure for all deliverables, correspondence, and supporting documentation throughout the duration of the project. Files will be stored electronically using a consistent naming convention and folder system that aligns with City preferences and Caltrans documentation standards.

Task 1.3. Meetings
Mark Thomas will facilitate and attend a project kick-off meeting and monthly coordination meetings with the City as needed. Coordination check-in meetings will include representatives from Mark Thomas, City Staff and other stakeholders as directed by the City. This task includes preparation of loose agendas and a log of action items. The project CPM schedule identified below will be distributed and reviewed during coordination meetings along with updates on various activities. Project development team (PDT) meetings with multiple project team, City staff and stakeholders may take the place of the monthly coordination meetings when needed.

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Mark Thomas will coordinate and attend up to Twenty Four (24) coordination meetings with the City and other agencies (i.e., Caltrans, etc.) to resolve technical issues.

Mark Thomas will participate and provide support for public workshops and property owner meetings included elsewhere in this Scope of Work.

Task 1.4. Agency Coordination
Mark Thomas will coordinate with applicable local, regional, state, and federal agencies to support project development, environmental clearance, and future implementation of the Sunrise Tomorrow Specific Plan Frontage Improvement Project. Coordination will include, as appropriate, Caltrans Local Assistance, Sacramento Regional Transit, and other permitting or resource agencies identified during Preliminary Engineering and environmental review. Efforts will include agency meetings, technical coordination, data exchange, and documentation necessary to support NEPA approval, right-of-way certification, and consistency with the Sunrise Tomorrow Specific Plan. Agency coordination will be conducted in accordance with Caltrans LAPM requirements and integrated with overall project schedule and deliverables. This scope of work assumes a total of four (4) virtual meetings including preparation of exhibits, agendas, and meeting minutes.

Task 1.5. Quality Control
The Mark Thomas Quality Control plan consists of established procedures for performing the work (which are reassessed with each project), including methods for design calculations, establishing appropriate levels of design development for intermediate submittals, identification of required plan checks, design checklists, and methods of project documentation. Our QC/QA Manager will implement and maintain these quality control procedures during the preparation of plans and documents throughout the design.

Deliverables
• Kick-off Meeting Agenda & Meeting Minutes
• Monthly progress reports and invoices (up to 24)
• Monthly CPM schedule updates (up to 24)
• Monthly Project Coordination Meeting Agenda & Meeting Minutes (up to 24 meetings) • Agency Coordination Meeting Agenda & Meeting Minutes (up to 4 focus meetings) • Project File Management
• QC/QA Checklist (at milestone submittals & City Request) TASK 2. PRELIMINARY ENGINEERING
Task 2.1. Project Initiation and Site Investigation
Mark Thomas will coordinate the project kick-off meeting with the City and members of the design team to discuss the project background, scope, concepts, schedule, project management, potential stakeholders and issues, outreach opportunities and expectations. Mark Thomas will provide a project information gathering checklist to collect data elements needed for the design, including GIS mapping information, City-owned facility maps, utility contacts, as-built and planned improvement drawings, and available traffic counts and speed studies.

Mark Thomas will conduct site visits and take photographic inventory of existing conditions to reference during the design process and make observations related to sight distance at pedestrian crossings, ADA-compliance, and identify ITEM 14
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potential conflicts with existing utilities and privately-owned improvements within the public right-of-way. For estimating purposes, 2 days of site visits have been assumed to complete the field reviews. A photo log will be prepared and submitted to the City electronically.

Task 2.2. Topographic Surveys
The survey team will conduct two days of field work focused on collecting key information to support the preliminary (35%) design. This effort will include capturing visible existing utility features, dipping existing drainage inlets (DIs) to confirm invert elevations, and collecting spot elevations only where necessary to inform design decisions. Full corridor topography will not be collected at this stage; survey will be targeted to areas where grade, drainage, or utility conflicts may influence layout. All data will be compiled and integrated into the base mapping to support the design team’s needs at this early phase.

Task 2.3. Utility Base Mapping
Mark Thomas will perform utility mapping that will consist of retrieving a list of utility owners that may be affected by the project and sending out utility request (“A” letters) for records and as-built drawings. All record mapping obtained will be provided to the design team. Mark Thomas survey staff will follow up with utility companies that have not responded and will provide any additional mapping as it is received.

Mark Thomas will plot the utility lines of record by connecting them to above ground visible utilizes (including existing paint marks of underground locating) collected during the topographic survey tasks. This task does not include Subsurface Utility Engineering (SUE) or UG mark & locate.

Task 2.4. Preliminary Assessment and Concept Plans
Based on input from the prior studies identified under Task 2 as well as input from the City, Mark Thomas will perform a preliminary assessment of the project area to identify potential physical, operational, and regulatory constraints that may affect project development. Based on existing considerations (ie. right of way constraints, accessibility, drainage, etc.), Mark Thomas will prepare concept plans showing the proposed geometric improvements for the frontage improvements. These concepts will evaluate the existing right of way, traffic operations, opportunities, and drainage improvements. Mark Thomas will provide the exhibit in the form of strip map that can be used to determine which geometrics to move forward with for 35% plans. Mark Thomas assumes one (1) concept plan exhibit to be developed for this task and any comments received will be implemented on the 35% plans.

Task 2.5. 35% Plans
Mark Thomas team will build upon the preferred concept plan and prepare draft construction documents using City, County and, if needed, Caltrans standards and guidelines. These will include Title, Typicals, Cross Sections, Layouts, and Drainage/Utilities (plan view).

Fehr & Peers will prepare preliminary engineering (35%) plans for the traffic signal installation and modifications to implement the improvements in the Sunrise Tomorrow Specific Plan. This includes traffic signal designs at the following five (5) intersections:
• Sunrise Boulevard/Greenback Lane (modification)
• Sunrise Boulevard/Entry “A” Driveway (modification)
• Sunrise Boulevard/Entry “B” Driveway/Birdcage Centre Lane (installation) • Sunrise Boulevard/Entry “D” Driveway/Macy Plaza Drive (modification) • Greenback Lane/Arcadia Drive (modification)
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Fehr & Peers will perform a field review of existing signalized intersections and prepare 35% preliminary traffic signal concepts, including controller locations, signal phasing, and preliminary pole layouts. Preliminary designs will be coordinated with available survey, roadway, right-of-way, and utility information to identify potential conflicts, right-of- way or easement needs, and fiber optic interconnect requirements. Fehr & Peers will also prepare a preliminary street lighting assessment, including an AGi32 photometric analysis and planning-level cost estimate to accommodate proposed frontage improvements. One round of City review comments will be incorporated, and planning-level input on future traffic control options and associated costs will be provided.

Task 2.6. 35% Estimate
Mark Thomas and Fehr & Peers will develop quantities and prepare construction cost estimates using the project geometrics and surfaces developed from survey information. Construction costs will be developed using current bid results from similar projects, Caltrans database information and from Caltrans latest Construction Cost Manual. All estimates will be done in Caltrans BEES format using Microsoft Excel.

Task 2.7. PES Form
As a subconsultant to Mark Thomas, De Novo Planning Group will initiate the project by establishing coordination with the City of Citrus Heights and Caltrans to confirm lines of communication, concurrence on the appropriate environmental approach, and agreement on required technical studies and CEQA/NEPA documentation. This effort will include review of available background reports, plans, and the certified Sunrise Tomorrow EIR, and coordination through an initial meeting or conference call with the City, Caltrans, and the project team.

Based on this coordination, De Novo Planning Group will prepare the Preliminary Environmental Study (PES) Form for Caltrans review and City signature. The PES will define the project description, purpose and need, anticipated environmental clearance path, and identify any environmental technical studies required to support NEPA approval. The assumption is that environmental clearance will be achieved through a Categorical Exemption under CEQA and a Categorical Exclusion under NEPA, based on the previously approved EIR; however, Caltrans local assistance may require additional technical studies that were not completed as part of the original EIR. Task 3 identifies assumed studies that may be required from the PES Form review.

Task 2.8. Geotechnical Report (Optional Tasks)
As a subconsultant to Mark Thomas, Crawford and Associates, Inc. will provide geotechnical engineering services to support development of pavement rehabilitation and design recommendations for the proposed frontage and intersection improvements. Services will include review of available geotechnical information, coordination for site access and permitting, pavement coring at proposed widened roadway segments, and laboratory testing to evaluate existing pavement structure and subgrade support characteristics. Based on field observations and test results, engineering analyses will be performed to evaluate existing pavement conditions, estimate current traffic index, and develop comparative pavement section and rehabilitation alternatives. Findings and recommendations will be documented in a draft and final Pavement Design Report summarizing site conditions, test results, and pavement design and rehabilitation recommendations suitable for use in preliminary design and cost estimating.

Deliverables
• Photo Log of Site Conditions (provided electronically) • Topographic Base Mapping and Survey
• Record Level Right of Way
• Utility Mapping, Coordination Records, Prior Rights Determinations, and “A” Letters. • Concept Plans Exhibit
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• 35% Plans and Estimate
• PES Form
• Geotechnical Investigation Report (optional task)
TASK 3. ENVIRONMENTAL DOCUMENTATION
We understand that the project will utilize federal funds, and therefore NEPA clearance will be required in addition to CEQA clearance. We anticipate the City to be the CEQA and NEPA lead agency. Separate CEQA and NEPA documents are proposed, to allow a more efficient and streamlined CEQA preparation process

De Novo Planning Group brings a deep understanding of the Sunrise Tomorrow Specific Plan, having prepared the certified Environmental Impact Report for the Specific Plan. This prior involvement provides direct familiarity with the project area, environmental framework, and supporting technical studies, allowing the team to efficiently support PES development and subsequent environmental clearance. The following studies are based on assumptions from the team on what additional tech studies Caltrans may require to support the original EIR Task 3.1. Prepare Community Impact Assessment – Tech Memo De Novo will prepare a Community Impact Assessment Technical Memorandum that will summarize the existing socioeconomic and demographic setting of the project study area and evaluate potential community and neighborhood impacts related to the proposed project. This technical memorandum includes a discussion of social impacts related to implementation of the proposed project, including minority and low-in come populations,
environmental justice, and neighborhood disruptions within the project study area. This report also includes a discussion of economic impacts related to project implementation, including displacements. This document describes potential impacts of the proposed project and suggests minimization measures available to reduce potential adverse impacts. The report will include an Introduction, Project Description, Affected Environment, Environmental Consequences, Minimization Measures, Cumulative Impacts, References, and Figures. This task does not include a full CIA report, or relocation analysis/report. If Caltrans required this higher level study additional scope would be required.

Task 3.2. Prepare Noise Study
Consistent with the recommendations of Caltrans/FHWA Protocol and general requirements of the City of Citrus Heights, continuous (24-hr) and short-term (10-15 min) noise level measurements will be conducted at representative sensitive receptors along the project route. The continuous noise measurement data will be used for determining the time of day when the peak hour of traffic noise occurs, and to determine the relationship between peak hour noise levels and the 24-hour day/night average (Ldn) value. Additionally, the continuous and short-term noise level measurement data will be used to validate the FHWA Traffic Noise Model (TNM) predictions.

Existing, future no-project, and future + project traffic noise levels will be calculated for the project. The FHWA TNM model will be used for all traffic noise level predictions, consistent with the Caltrans/FHWA Protocol procedures. The TNM model is required by Caltrans and FHWA for determining traffic noise levels and evaluating noise abatement measures. Traffic noise levels will be determined for specific land uses which may be impacted by the project.

A detailed NSR will be prepared in accordance with the Caltrans/FHWA Protocol procedures. The NSR will include the results of the noise analysis for each receptor location and will include graphics showing noise monitoring sites, sensitive receptor locations, and noise abatement locations. Where noise abatement measures may be required, they will be included in the report. A preliminary determination of reasonableness will be conducted for noise abatement measures.

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This Scope of Work will include responding to comments on the NSR. We assume a total of 4 hrs. time for this task. It is noted that this scope does not include a Noise Abatement Decision Report (NADR), which can be added should Caltrans require this report.

Task 3.3. Prepare Visual Impact Assessment – Tech Memo
De Novo will prepare a Visual Impact Assessment Technical Memorandum that will define the visual environment within the project site and its vicinity, estimate viewer response to visual resources within the project site and vicinity, and then assess the changes to the visual resources that are associated with the project to determine the degree to which visual impacts will result from project implementation. The report will include an Introduction, Project Description, Setting, Views, Methodology, Effects on the Landscape, Cumulative Impacts, References, and Figures. We have not budgeted to perform photo simulations but can add this service for additional budget if needed. If Caltrans requires the tech memo review/signature by a LLA, then our assumption is that an LLA from Mark Thomas would provide the review/signature.

Task 3.4. Prepare Air Quality Study
The Air Quality Report will include an air quality and climate change analysis, as well as a project-level conformity analysis. The air quality analysis will utilize CalEEMOD and/or EMFAC, as appropriate, to quantify criteria pollutants generated from traffic. Our analysis will be based on the traffic forecasts provided by the project engineer. We do not anticipate the need for a Health Risk Assessment or CO dispersion modeling.

The GHG emissions analysis will follow the Caltrans protocols as provided in the SER and document templates, as well as the SACOG regional GHG analysis, to ensure that GHG emissions are appropriately considered and addressed under CEQA. The Air Quality analysis will describe the federal, state, and local regulatory environment and existing air quality conditions impacting the region, and will describe emission sources, regional emission estimates, vehicle use, and construction emissions associated with implementation of the project. The analysis will conclude with a consistency analysis, cumulative impact analysis, and a discussion of feasible mitigation measures that should be implemented to reduce impacts on air quality and to ensure air quality conformity with the State Implementation Plan (SIP).

Task 3.5. Prepare CEQA/NEPA Documentation and Hearing Attendance De Novo will prepare a CEQA document utilizing the City of Citrus Heights templates. The appropriate document will be an Initial Study and Categorical Exemption. This work effort will utilize the technical studies that are available from the engineers, as well as those listed under Task 3. The work plan and schedule will follow the City of Citrus Heights normal staff review timelines. We will submit an administrative review copy of these documents to the City for review and comment. We will revise the document based on the comments received and provide the City with a second administrative draft. Once the environmental document is approved for circulation, we will prepare a public draft with the appropriate public notices. Lastly, we will provide the City of Citrus Heights with an electronic copy of the notice of exemption which will be filed after approval by the City.

De Novo will prepare a NEPA document utilizing the Caltrans templates. The appropriate document will be a Categorical Exclusion. The work plan and schedule will follow Caltrans review timelines. We will submit an administrative review copy of these documents to Caltrans for review and comment. We will revise the document based on the comments received and provide Caltrans with a second administrative draft. Once the environmental document is approved for circulation, we will prepare a public draft document. We anticipate that Caltrans serving as the NEPA lead will be responsible for the filing in the federal register if required.

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The CEQA process will require a public hearing at the Planning Commission and City Council. We have budgeted to have the project manager attend to answer any questions that the public or the elected may have regarding the environmental studies and CEQA document/
Task 3.6. Initial Site Assessment
Crawford will perform an Initial Site Assessment to identify any existing or historical hazardous materials conditions that could affect project design, permitting, or construction. This will include a review of federal, state, and local environmental databases, historic aerial imagery, and topographic maps. A limited site reconnaissance will be conducted to observe current conditions. Findings will be documented in a brief report summarizing site history, potential environmental concerns, and recommendations moving forward.

Deliverables
• Preliminary and Final CEQA Documents/Technical Studies (provided electronically) • Preliminary and Final NEPA Documents/Technical Studies • Draft and Final ISA
TASK 4. RIGHT OF WAY SERVICES
To successfully complete the proposed project, it will be necessary to identify right-of-way requirements resulting from the proposed design alternatives and estimate the cost to acquire the necessary properties and rights. Monument will work closely with the design team and the City to ensure that all potential property impacts are identified, and their associated costs are analyzed and estimated, and that all necessary property rights are acquired to allow for construction of the Project.

All services will be performed in accordance with all applicable statutory and regulatory requirements, including: the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (49 CFR Part 24), as amended; the Caltrans Right-of-Way Manual; the Real Property Acquisition Guidelines (Title 25, California Code of Regulations); and the City’s own policies and procedures
Task 4.1. Property Owner Coordination and Exhibits
Mark Thomas will support the right of way effort by preparing right of way impact exhibits to be used in coordination with property owners. These exhibits will be used to discuss the total areas proposed for the acquisition. Mark Thomas will also assist the City in Property Owner Coordination meetings, if needed. It is assumed 5 property owner meetings will be needed and supported as part of this scope.

Task 4.2. Right of Way Cost Estimates
Monument will coordinate with the design team to identify right-of-way acquisitions resulting from the proposed improvements. Additionally, Monument will provide information about existing conditions within the project limits including, land use, and any existing rights or encumbrances known to exist on the affected properties. The specific steps Monument will take to determine impacts and estimate costs are as follows:
• Perform a GIS analysis to identify property and rights potentially affected by the proposed design • Use publicly available data and other real estate resources to confirm the ownership, land use, zoning, lot size, and improvements for each affected property.

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• Perform a desktop inspection of properties to confirm the probable acquisition type (fee, easement, temporary construction easement, etc.) including identifying existing uses or personal property to be relocated (if any).
• Calculate the fee and/or easement area (including temporary construction easements) that will need to be acquired for each impacted property using design data and assessor boundary information. • Estimate the total capital cost of acquisition for all parcels including real estate costs, relocation assistance, severance damages, loss of goodwill, fixtures and equipment, demolition and clearance. • Estimate permit costs.
• Estimate the total support cost for all parcels including appraisal fees, condemnation costs, title and escrow fees, environmental fees, and consultant fees as necessary. • Escalate costs to anticipated right-of-way acquisition date. • Prepare a draft Caltrans Right of Way Data Sheet using Caltrans Exhibit 17-EX-21 (Right of Way Data Sheet for Local Public Agencies) for the Build Alternatives.
• Update the RWDS based on comments from the design team and the City and submit a final Draft RWDS. • Respond to comments from Caltrans R/W as necessary and make required updates to the Data Sheets.

Assumptions
• RWDS will be prepared for a maximum of 2 Build Alternatives. • Maximum of 2 updates based on comments from the City and Caltrans.

Task 4.3. Prepare Utility Conflict Mapping
Mark Thomas will utilize the preliminary utility mapping developed in Task 2 to prepare utility conflict maps (“B” Plans) and coordinate relocation designs with the affected owners and will prepare “C – Notice to Owner” letters notifying the utilities of the pending construction. Should any relocations of private utility facilities be required, it is assumed that these designs will be provided by the private utility company. This task includes producing utility conflict exhibits and sharing with utility owners in advance of final design. Additional utility coordination meetings required for relocation will occur in future Final Design Phase and are not included in this task.

Deliverables
• Right-of-Way Data Sheets (Caltrans Exhibit 17-EX-21) for up to 2 build alternatives • Utility Conflict Maps

ASSUMPTIONS
o Monument Preservation is not included in this SOW
o Record of Survey is not included in this SOW
o Boundary and Control Surveys not included in this SOW o It is assumed encroachment permits and access will be granted by the City (for public right of way and City owned parcels)
o No subsurface mark and locate is included in this SOW o Site-specific traffic control plans are not required for field crews; latest MUTCD will be used for traffic control. o City to provide all as-built information within project limits ITEM 14
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City of Citrus Heights

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o Aerial Topography provided by City will be used at 30% design with the assumption that field topographical surveys will be completed in future task for final design. o Utility Coordination and LAPM forms associated with coordination work is not included with this scope and will need to be included in future task for final design.

ITEM 14
Agenda Packet Page #48

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: April 8, 2026
TO: M
ayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Susan K. Talwar, Administrative Services Director
Dena Jenkins, Finance Manager
SU
BJECT: Annual Comprehensive Financial Report, Single Audit Report, and Audited Financial Statements and Compliance Report for Transportation Development Act Funds
Recommendation
St
aff recommends the City Council receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2025, the Audit Communication Letter, the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters, the Single Audit Report for the fiscal year ended June 30, 2025, and the City of Citrus Heights Transportation Development Act (TDA) Funds Audited Financial Statements and Compliance Report for the fiscal year ended June 30, 2025.

St
rategic Plan Alignment
Thi
s item is in alignment with the following City Council priority:

Goal
: Maintain and Enhance Fiscal Stability while supporting operational excellence.

Fi
scal Impact
Th
ere is no fiscal impact associated with this action.

Ba
ckground and Analysis
Annua
l Comprehensive Financial Report (ACFR)
Fi
nancial Report
ITEM 15
Agenda Packet Page #49
Subject: Annual Comprehensive Financial Report, Single Audit Report, and Audited Financial Statements and Compliance Report for Transportation Development Act Funds Date: April 8, 2026

Page 2 of 3 ends

In accordance with the provisions of California Government Code Sections 37208, 53891, and Section 2-355 of the Citrus Heights Municipal Code, the City prepares and publishes annual audited financial statements. The accounting firm Lance, Soll & Lunghard, LLP (LSL) performed the annual audit of the City’s general purpose financial statements for the fiscal year ended June 30, 2025. The auditor has opined that the City’s financial statements present fairly, in all material respects, the respective financial position of the City of Citrus Heights. The statements are in conformity with Generally Accepted Accounting Principles.

Some highlights from this year’s ACFR include:
• An increase in Property Tax of $420,000;
• A decrease in Sales Tax Revenue of $695,000;
• An increase in State Vehicle In-Lieu tax of $694,000; • Higher than expected revenues in investment revenue and vehicle fines; • Savings in the General Fund of approximately $1.5 million due primarily to salary savings and lower than anticipated operating expenses;
• An increase in the General Fund balance of approximately $11.2 million.

Popular Annual Financial Report

The City has also completed its fourth Popular Annual Financial Report (PAFR), a report intended to provide the City’s citizens with an easy-to-read explanation of its finances. The information in the PAFR is derived from the City’s ACFR.

The Annual Comprehensive Financial Report and the Popular Annual Financial Report for the fiscal year ended June 30, 2025 are posted on the City’s website at:
http://citrusheights.net/213/Financial-Reporting-Budget-CIP.

The City received awards from the Governmental Finance Officers Association (GFOA) for both its 2024 ACFR and its 2024 PAFR, and the 2025 reports have been submitted for consideration of the awards.

Communications from LSL

The City’s audit firm, LSL is required by auditing standards to provide communication to the Council in the form of an Auditor Communication Letter and an Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

The purpose of the Auditor Communication Letter is to communicate significant audit matters (if any) to the City Council. No significant audit matters were identified as a result of the audit procedures.

The purpose of the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters is to communicate any deficiencies in internal control or ITEM 15
Agenda Packet Page #50
Subject: Annual Comprehensive Financial Report, Single Audit Report, and Audited Financial Statements and Compliance Report for Transportation Development Act Funds Date: April 8, 2026

Page 3 of 3 ends

instances of noncompliance with certain provisions of laws, regulations, contracts, and grant agreements. LSL reports that they did not identify any deficiencies in internal control or instances of noncompliance.

Single Audit Report

A single audit is required by Title 2 of the U.S. Code of Federal regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) when federal expenditures during a fiscal year exceed $750,000. For the fiscal year ended June 30, 2025, the City made federal expenditures of $17.7 million. The City’s audit firm, LSL, performed the single audit. The single audit report also includes the report on Internal Control over Financial Reporting and Compliance and Other Matters. LSL issued a clean audit opinion regarding compliance and internal control over compliance for the City’s major federal programs and Schedule of Expenditures of Federal Awards (SEFA).

The Single Audit Report for the fiscal year ended June 30, 2025 is posted on the City’s website at: http://citrusheights.net/213/Financial-Reporting-Budget-CIP.

Transportation Development Act Audit

The accounting firm of Richardson & Company, LLP was hired by the Sacramento Area Council of Governments to audit the transportation funds received by member agencies for the fiscal year ended June 30, 2025. They have determined that the City of Citrus Heights Transportation Fund financial statements present fairly, in all material respects, the financial position of the Transportation Development Act Funds of the City of Citrus Heights as of June 30, 2025. The statements are in conformity with Generally Accepted Accounting Principles.

Attachments

1. City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025.

2. City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2025.

3. Auditor Communication Letter.

4. Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

5. City of Citrus Heights Single Audit Report for the year ended June 30, 2025.

6. City of Citrus Heights Transportation Development Act Funds – Audited Financial Statements and Compliance Report as of June 30, 2025.

ITEM 15
Agenda Packet Page #51
https://www.citrusheights.net/916-725-2448 6360 Fountain Square Dr Citrus Heights, CA 95621
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
Prepared for : Prepared by :

Citrus Heights, CA Finance, a Division of the
Administrative Services Department
https://www.citrusheights.net/916-725-2448 6360 Fountain Square Dr Citrus Heights, CA 95621
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ITEM 15
Agenda Packet Page #52

CITY OF CITRUS HEIGHTS, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2025

Prepared by
Finance,
A Division of the Administrative Services Department

ITEM 15
Agenda Packet Page #53
7+,63$*(,17(17,21$//</()7%/$1.
ITEM 15
Agenda Packet Page #54

CITY OF CITRUS HEIGHTS, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2025

Table of Contents

Page

INTRODUCTORY SECTION

Letter of Transmittal ................................................................................................................................................ i Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ..................................................................................................... vi Organizational Chart ............................................................................................................................................ vii List of Officials ..................................................................................................................................................... vii

FINANCIAL SECTION

Independent Auditors’ Report ................................................................................................................................ 1

Management’s Discussion and Analysis (Required Supplementary Information) ................................................ 5

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................... .................... 17

Statement of Activities ............................................................................................................................ 18

Fund Financial Statements:

Balance Sheet – Governmental Funds ........................................................................................... ....... 20

Reconciliation of Governmental Funds Balance Sheets
to the Statement of Net Position ............................................................................................ ................. 21

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ......................................................................................................... .................... 22

Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ..................................................................................................... ....................... 23

Statement of Net Pos ition – Proprietary Funds ...................................................................................... 25

Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ........................................................................................................... ........................ 26

Statement of Cash Flows – Proprietary Funds ................................................................................. ...... 27

Statement of Fiduciary Net Position ....................................................................................................... 28

Statement of Changes in Fiduciary Net Position .................................................................................... 29

Notes to Basic Financial Statements .......................................................................................... .................. 31 ITEM 15
Agenda Packet Page #55

CITY OF CITRUS HEIGHTS, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2025

Table of Contents

Page

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Funds:

General Fund .......................................................................................................................................... 65

Schedules of the Proportionate Share of the Net Pension Liability – Cost Sharing Plan ............................. 66

Schedule of Plan Contributions ..................................................................................................................... 67

Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 68

Notes to Required Supplementary Information ............................................................................................. 70

SUPPLEMENTARY INFORMATION

Nonmajor Governmental Funds:

Description of Nonmajor Funds ............................................................................................... ............... 72 Combining Balance Sheets .................................................................................................... ................ 74 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................ 84

Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Special Revenue Funds:

HOME Program Grants .......................................................................................................... .......... 94 CDBG Grants Special Revenue Fund ............................................................................................. 95 Code Enforcement ............................................................................................................. .............. 96 Gas Tax ...................................................................................................................... ...................... 97 Road Maintenance and Rehabilitation .......................................................................................... ... 98 Stormwater Utility Tax ...................................................................................................................... 99 Road Maintenance ............................................................................................................. ............ 100 Transit ...................................................................................................................... ...................... 101 Transportation Dev elopment Act ................................................................................................... 102 Police........................................................................................................................ ...................... 103 Police Grants ................................................................................................................ .................. 104 Supplemental Law Enforcement Services (SLES) ........................................................................ 105 Housing Mitigation Development Fees .......................................................................................... 106 Tree Mitigat ion Fees ...................................................................................................................... 107 Park Facilities Development Fees ............................................................................................. .... 108 Other Grants ................................................................................................................. ................. 109 Assessment District 98-02 Zone 3 ............................................................................................. .... 110 Assessment District Zone 1 ................................................................................................... ........ 111 Assessment District Zone 2 ................................................................................................... ........ 112 Assessment District Zone 3 ................................................................................................... ........ 113 Assessment District Zone 4 ................................................................................................... ........ 114 Assessment District 98-01 .................................................................................................... ......... 115 Assessment District 98-02 .................................................................................................... ......... 116 ITEM 15
Agenda Packet Page #56

CITY OF CITRUS HEIGHTS, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2025

Table of Contents

Page

SUPPLEMENTARY INFORMATION (CONTINUED)

Assessment District 03-01 .................................................................................................... ......... 117 Assessment District 98-02 Zone 2 ............................................................................................. .... 118 Assessment District 03-01 Zone 2 ............................................................................................. .... 119 Lighting Assessment District .......................................................................................................... 120 Police Donations ............................................................................................................. ............... 121 Assessment District 03-01 Zone 3 ............................................................................................. .... 122 Fire CFD Impact Fee Fund ..................................................................................................... ....... 123 SB 1186 Access Comp Fund ......................................................................................................... 124 Multimodal Impact Fee Fund ................................................................................................... ...... 125 Assessment District 98-02 Fund ............................................................................................... ..... 126

Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Capital Projects Funds:

Streets ................................................................................................................................................. 127 Measure A Construction ....................................................................................................................... 128 General Capital Improvements ............................................................................................................. 129 Community Capital Replacement ......................................................................................................... 130

Custodial Funds:

Combining Statement of Net Position................................................................................................... 131 Combining Statement of Changes in Fiduciary Net Position ............................................................... 132

STATISTICAL SECTION:

Table of Contents ........................................................................................................................................ 133 Net Position by Component ........................................................................................................................ 135 Changes in Net Position .............................................................................................................................. 136 Fund Balances, Governmental Funds ........................................................................................................ 138 Changes in Fund Balances, Governmental Funds ..................................................................................... 139 Assessed Value and Actual Value of Taxable Property ............................................................................. 140 Direct and Overlapping Property Tax Rates ............................................................................................... 141 Principal Property Tax Payers .................................................................................................................... 142 Direct and Overlapping Sales Tax Rates .................................................................................................... 143 Schedule of Top 25 Principal Sales Tax Remitters .................................................................................... 144 Property Tax Levies and Collections .......................................................................................................... 145 Direct and Overlapping Debt ....................................................................................................................... 146 Legal Debt Margin Information .................................................................................................................... 147 Ratios of Outstanding Debt by Type – Governmental Activities ................................................................. 148 Demographic and Economic Statistics ....................................................................................................... 149 Principal Employers .................................................................................................................................... 150 Full-time and Part-time City Employees by Function .................................................................................. 151 Operating Indicators by Function ................................................................................................................ 152 Capital Asset Statistics by Function ............................................................................................................ 153 ITEM 15
Agenda Packet Page #57
7+,63$*(,17(17,21$//</()7%/$1.
ITEM 15
Agenda Packet Page #58
January 29, 2026
To the Honorable Mayor and Members of the City Council and Citizens of the City of Citrus Heights:

City staff is pleased to submit the City of Citrus Heights’ Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2025. The City of Citrus Heights has a long tradition of self-reliance. Strong financial policies and responsible fiscal management of taxpayer dollars remain a core tenet of City operations. Our City is committed to continued strong fiscal stewardship, transparency, and accountability over taxpayer dollars. Working together, the City Council and City staff ensure our budget and financial policies reflect spending consistent with essential priorities.

It is the policy of the City Council that a licensed certified public accountant conducts an annual audit at the end of each fiscal year and issue a complete set of audited financial statements. The audit is conducted following generally accepted auditing standards and the financial statements are presented in conformity with Generally Accepted Accounting Principles (GAAP).

The City is responsible for the accuracy of the data and the fairness of the presentation, including all footnotes and disclosures. City staff believes that the information presented in this report is accurate in all material aspects and that it includes all necessary statements and disclosures to provide the reader with a comprehensive understanding of the City’s financial activities.

The City’s management has implemented an internal control system designed to safeguard the City's assets from loss, theft, or misuse, while also ensuring the collection of reliable information for the preparation of the City’s financial statements in compliance with GAAP. Since the cost of implementing a control should not exceed its benefits, the goal is to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatements.

While this report is traditionally directed to the governing body of the City, its purpose is to provide relevant financial information to the citizens of Citrus Heights, city staff, creditors, investors, and other interested parties. City staff encourages all readers to reach out to the Finance Division with any questions or comments regarding this report.

The City’s financial statements have been audited by LSL, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

Based upon the audit, the independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. i
ITEM 15
Agenda Packet Page #59
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports will be available in the City’s separately issued Single Audit Reports.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A. The City’s MD&A can be found immediately following the report of the independent auditors.

Profile of the City of Citrus Heights
The City of Citrus Heights operates under a Council-Manager form of government and provides municipal services that include public safety, public works, and community development. This report includes all funds of the City of Citrus Heights. The MD&A continues to demonstrate our commitment to providing essential quality-of-life services, maintaining public safety, improving the City’s infrastructure including streets and roads, and growing our local economy while maintaining financial stability.

The City Council establishes annual budgets for the General Fund, Proprietary Funds, and Special Revenue Funds, with the exception of certain Special Revenue Funds where expenditures are controlled by grant funding or assessments received. Budgetary control is legally maintained at the fund level for these funds. Department directors submit their budget requests to the Administrative Services Director, who prepares revenue estimates and budget recommendations for the following year, which are then presented to the City Manager. The preliminary budget may be amended by the City Council and is adopted by resolution on or before June 30th of each year, in accordance with the City’s Municipal Code.

The City of Citrus Heights was incorporated on January 1, 1997, as a general law city. Citrus Heights was the first new city in Sacramento County in more than 50 years and was the largest city to incorporate in the State of California. With a population of approximately 86,000 in a 14.2 square-mile area, Citrus Heights is 98% developed, with two large commercial corridors and a well-established residential community. The City attracts a population of all ages and has a higher percentage of millennials and retirees than other cities of the same size.

The Citrus Heights City Council consists of five members, elected to four-year overlapping terms in district-based elections. Council members must be residents of the City. The positions of Mayor and Vice Mayor are chosen by the City Council through policy direction determined by the City Council. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions.

The City Council serves as the policy board for the municipality. As an elected Board of Directors, the City Council provides policy direction, establishes goals, and sets priorities for the City government. In addition to serving as the policy makers for the community, the City Council also is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, City Attorney, and all members of advisory boards and commissions.

In Citrus Heights, the total labor force is approximately 44,000. Unemployment in Sacramento County is at approximately 5.1%, which is below the current rate of unemployment for California (5.5%). The City of Citrus Heights is home to a diverse labor force, specializing in such occupations as sales, executive and managerial services, technical support, professional specialties, and other services. As the geographic center of the Greater Sacramento area, Citrus Heights offers residents and workforce effective access to the region.

Most of Citrus Heights’ commercial real estate comprises large retail and small office space. Citrus Heights has long been known as a retail mecca, but the current retail market is in a state of change. Consumers are relying less on brick-and-mortar stores now that online shopping is mainstream. Citrus Heights is home to one of the Sacramento area’s first regional shopping centers, Sunrise Mall. In its prime, Sunrise Mall served as the economic engine of the City and the community’s central gathering place. With the addition of other regional malls and a shift toward online shopping, Sunrise Mall has been impacted significantly — resulting in a significant decline since 2006. iL
ITEM 15
Agenda Packet Page #60
In 2019, the City Council directed staff to embark on a specific plan process for Sunrise Mall. This plan has engaged each of the five owners of the 100-acre mall site, stakeholders, and the community, to work together on a new vision for Sunrise Mall. Through zoning, visioning, and entitling, the plan re-envisions Sunrise Mall as a regional destination and economic engine for the community. Citrus Heights is a City that takes charge of its future. By undertaking this process, we are encouraging continued growth and prosperity for our commercial business community. The Specific Plan and Environmental Impact Report was unanimously approved by the City Council in October 2021.

In addition to ushering in a new era for Sunrise Mall, the City also works hard to support our small businesses.

There are over 2,100 businesses in Citrus Heights, and 67% of those have less than 10 employees. Many of our small businesses are supported by three business districts: Sunrise MarketPlace, Auburn Blvd Business Association, and Antelope Crossing Business Association.

Budget Initiatives
The City of Citrus Heights has developed broad policy direction through the development of budget strategies that establish long-term policy guidance for conducting the City’s financial activities. Citrus Heights has a long tradition of self-reliance and local control with excellent quality-of-life services our residents expect and deserve. The City Council has established policies to meet the following strategic objectives:

1. Strategic Focus – The City’s financial management should be strategic, reflecting the Council’s and the community’s priorities for service while providing resources that realistically fund routine operations. Most importantly, we strive to maintain essential services reflective of our community’s values and engage in continued fiscally responsible planning amid state mandates and takeaways.

2. Fiscal Control and Accountability – The City’s financial activities should be fiscally sound and accountable to the City Council through the City Manager. It is our intent to maintain local control over local funds for our local needs in a fiscally prudent manner that addresses essential priorities.

3. Clarity – The City’s financial planning and reporting should be clear and easy to understand so that all participants, the City Council, the community, and staff can productively participate in making good decisions. We intend to keep local government transparent and accountable, which includes our community’s ability to engage with our financial information. The City of Citrus Heights regularly issues communications that inform and engage residents in fiscal updates.

4. Long-Term Planning – The City of Citrus Heights has always taken charge of its future. We became a city by intent, establishing our own police department and being fiscally responsible, and we have plans for our future. The City’s financial planning should emphasize multi-year horizons to promote long-term planning of resource uses. We have always engaged in long-term and comprehensive financial planning to ensure that the City can keep its budget balanced while preserving local control and essential services such as public safety and street maintenance in Citrus Heights.

5. Flexible and Cost-Effective Responses – The City’s financial management practices should encourage a mission-driven organization that responds quickly and straightforwardly to community demands. The City’s management should flexibly respond to opportunities for better service, should proactively manage revenues, and should cost-effectively manage ongoing operating costs. We must maintain public safety, economic development, and local control to adequately address our community’s essential services and quality of life.

6. Staffing Philosophy – The City has worked towards establishing a balance between City employees and contract staff to ensure the most efficient City operations. iLL
ITEM 15
Agenda Packet Page #61
Financial Policies
The City Council has developed policy parameters for the City’s fiscal management. Those fiscal policies address several issues including financial activity reporting, budgeting and financial planning, appropriation control, debt management, investments, fees, purchasing, performance measures and competitive review, and reserves.

Long-Term Financial Planning
The City’s financial planning promotes long-term planning of its resources that is reflective of community priorities, essential services, and quality of life. The ten-year financial forecast has served as the primary budget guidance tool since the City’s incorporation in 1997. The forecast is updated annually to project future General Fund revenue and expenditures. Several factors directly affect the City’s General Fund revenue. Since the City currently receives approximately 15.6% of its General Fund revenue from sales and use tax, it is especially susceptible to economic downturns and the changing retail economy. In addition, the City is approximately 98% built out which results in fewer opportunities for revenue generating growth. The City will continue to balance the General Fund by implementing a combination of cost-saving measures as well as prudent financial planning.

In 2013 the City increased its fiscally conservative general fund balance reserve from ten percent to fifteen percent to cover unanticipated revenue shortfalls or expenditure requirements. In 2019, the general fund reserve was raised to seventeen percent. For the fiscal year ended June 30, 2025, the City’s uncommitted general fund reserve once again met the increased percentage policy requirement.

Current Economic Conditions and Outlook
The City of Citrus Heights received its first property tax revenue previously retained by the County of Sacramento with the end of the revenue neutrality agreement in January 2023. This milestone provides an important boost to the City's fiscal health and enhances its ability to invest in local services and infrastructure.

The City’s economic development efforts and implementation of sound financial policies continue to promote fiscal stability. Since incorporation in 1997, at the direction of the City Council, staff has conducted a systematic review of operations, which has sometimes resulted in transitioning from contract services to an in-house operational model, renegotiating existing service contracts, or retaining the contract operational model with a different service provider. These operational analyses and reforms are designed to promote long-term stability, particularly in the face of economic trends affecting developed cities, such as rising housing costs, labor market challenges, and ongoing supply chain disruptions. The City is mindful of these factors and remains focused on ensuring that its economic development strategies are resilient, adaptable, and aligned with the needs of the community for the future.

Awards and Acknowledgements
The City of Citrus Heights is proud to announce that it has received the prestigious Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its submission of the FY 2024 Annual Comprehensive Financial Report. This marks the twenty-fourth consecutive year that the dedicated efforts of the City's staff have been recognized with this esteemed award, reflecting their commitment to transparency, accuracy, and excellence in financial reporting.

To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. City staff believes that this report will again meet the program requirements to receive the award. iY
ITEM 15
Agenda Packet Page #62
The preparation of this Annual Comprehensive Financial Report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Division, particularly Finance Manager Alberto Preciado and Senior Accountant Dena Jenkins, whose hard work and expertise were instrumental in ensuring the successful completion of the report. We also extend our gratitude to the auditing firm of LSL, LLP, as well as the City Manager and staff from various departments for their cooperation and support in planning and conducting the financial operations of the City during the past fiscal year.

Respectfully Submitted,
Susan Talwar
Administrative Services Director

Y
ITEM 15
Agenda Packet Page #63
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Citrus Heights
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
Yi
ITEM 15
Agenda Packet Page #64

CITY OF CITRUS HEIGHTS, CALIFORNIA
Organizational Chart

List of 2025 Officials
Elected
Mayor MariJane Lopez-Taff
Vice Mayor Porsche Middleton
Council Member Tim Schaefer
Council Member Dr. Jayna Karpinski-Costa
Council Member Kelsey Nelson
Appointed
City Manager Ashley Feeney
Administrative Services Director Susan Talwar
Community Development Director Casey Kempenaar
Economic Development & Community
Engagement Director
Meghan Huber
General Services Director Regina Cave
Chief of Police Alexander Turcotte
City Attorney Ryan R. Jones, Jones & Mayer

CITY COUNCIL
City
Manager
City
Manager’s
Office
Administrative
Services
Department
Community
Development
Department
Economic
Development
& Community
Engagement
Department
General
Services
Department
Police
Department
City
Attorney
YLL
ITEM 15
Agenda Packet Page #65
7+,63$*(,17(17,21$//</()7%/$1.
ITEM 15
Agenda Packet Page #66

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Citrus Heights, 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 Citrus Heights, California, (hereafter, 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

ITEM 15
Agenda Packet Page #67
To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

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

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

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

Required Supplementary Information

Accounting pr
inciples generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and required pension schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 ITEM 15
Agenda Packet Page #68

To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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

Other Information

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

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Irvine, California
January 29, 2026

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

This section provides a narrative overview and analysis of the financial activities of the City of Citrus Heights (City) for the fiscal year ended June 30, 2025. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS

Ƈ As of June 30, 2025, total assets and deferred outflows of the City’s governmental activities exceeded its liabilities and deferred inflows by $379,766,156 (net position). The portion of net position that may be used to meet the government’s ongoing obligations to citizens and creditors (unrestricted net position) is $24,637,567.

The portion of net position that is restricted and may only be used for specific purposes is $24,630,036. The remaining $330,498,553 is invested in capital assets.

Ƈ As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $68,319,442.

Of the combined fund balances, 58.83% ($40.19 million) is available to meet the City’s current and future needs (committed, assigned and unassigned balances).

♦ As of June 30, 2025, the committed amount in the General Fund of $4,486,978 represents amounts committed for insurance, postemployment healthcare benefits and a Council commitment for economic uncertainties and anticipated future short-term structural deficits (i.e. revenue stabilization). See Note 8.

Ƈ For the fiscal year ending June 30, 2023, the City collected its first distribution of property tax following the expiration of the revenue neutrality agreement with the County of Sacramento. In the current fiscal year, the City received $8.14 million in property tax revenue.

Ƈ Capital assets, net of depreciation, increased to $336,104,519 from $316,139,717, which includes $245,396,734 of infrastructure per the requirements of GASB 34.

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT

This Annual Comprehensive Financial Report is in three major parts:

1) Introductory section, which includes the Transmittal Letter and general information;

2) Financial section, which includes the Management’s Discussion and Analysis, the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules; and,

3) Statistical section, which includes detailed information as a context for understanding what the information in the financial statements and footnotes says about the City's overall financial health.

The Basic Financial Statements

The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.

The Government-wide Financial Statements

The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and are comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and expenses, also on the full accrual basis, with the emphasis on
measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in net position for the year.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, CONTINUED

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below.

All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole.

Ƈ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, economic development, public safety, animal control, engineering, community events, public improvements, planning and zoning, building inspections, and general administration. These services are supported by general City revenues such as taxes and by specific program revenues such as user fees.

Ƈ Business-type activities – All of the City’s enterprise activities are reported here. The City’s only Business-type activity fund is Solid Waste. Unlike governmental services, this service is supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements

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

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

Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the details of these nonmajor funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2025, the City’s major funds include the General Fund and Streets Fund.

For the fiscal year ended June 30, 2025, the City adopted annual appropriated budgets for the General Fund and Special Revenue funds.

Proprietary funds. The City maintains one Enterprise-type proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses an enterprise fund to account for Solid Waste activities.

Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for the Solid Waste operation. 6 ITEM 15
Agenda Packet Page #72
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, CONTINUED

Notes to the Basic Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 31-61 of this report. Required Supplementary Information follows the notes on page 63.

Combining and Individual Fund Financial Statements and Schedules. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements and required supplementary information. Combining and individual fund statements can be found on pages 74-132 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.

In the case of the City, assets and deferred inflows of resources exceeded liabilities and deferred outflows of resources by $382,278,306 as of June 30, 2025. Under the revenue neutrality settlement, the County retained the annual property tax for the first twenty-five years after the City’s incorporation through the fiscal year ending June 30, 2022. For the fiscal year ended June 30, 2025, the City received $8,139,767 of property taxes.

The Summary of Net Position as of June 30, 2025, and 2024, follows:

Restricted net position decreased by $2,120,663 due to an increase in the use of restricted funds in a number of special revenue funds for road maintenance, general capital improvement, transit services and various development activities. Unrestricted net position can be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements. The City had $26,819,528 of unrestricted net position as of June 30, 2025, which is an increase of $2,849,705. While unrestricted net position is technically unrestricted, much of the amount is committed for a specific use as described in Note 8.

The City maintains a commitment of fund balance in the General Fund, commonly called the General Fund Reserve.

It is set at a maximum of $35 million at June 30, 2025, and the balance is currently $4.5 million. The net position of business-type activities cannot be used to make up an unrestricted net position deficit in the governmental activities. The City generally can only use these assets to finance the continuing operations of the business-type activities.
2025 2024 2025 2024 2025 2024
Current and other assets 87,552,440$ 85,363,296$ 2,754,315$ 2,639,545$ 90,306,755$ 88,002,841$ Capital assets 335,778,056 315,805,381 326,463 334,336 336,104,519 316,139,717 Total Assets 423,330,496 401,168,677 3,080,778 2,973,881 426,411,274 404,142,558 Total Deferred Outflows 11,312,025 15,095,391 271,575 319,774 11,583,600 15,415,165 Long-term liabilities
due within one year 2,914,040 2,432,596 - - 2,914,040 2,432,596 due in more than one year 32,458,342 26,634,233 709,221 646,059 33,167,563 27,280,292 Other liabilities 14,679,998 20,410,175 92,040 234,836 14,772,038 20,645,011 Total Liabilities 50,052,380 49,477,004 801,261 880,895 50,853,641 50,357,899 Total Deferred Inflows 4,823,985 6,159,342 38,942 49,025 4,862,927 6,208,367 Net position:

Net investment in capital asse 330,498,553 311,932,873 326,463 334,336 330,825,016 312,267,209 Restricted 24,630,036 26,750,252 3,726 4,173 24,633,762 26,754,425 Unrestricted 24,637,567 21,944,597 2,181,961 2,025,226 26,819,528 23,969,823 Total Net Position 379,766,156$ 360,627,722 $ 2,512,150 $ 2,363,735 $ 382,278,306$ 362,991,457 $ Governmental Activities Business-T ype Activitites Totals 7 ITEM 15
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GOVERNMENT-WIDE FI

NANCIAL ANALYSIS, CONTINUED
The change in net position for the fiscal years ended June 30, 2025, and 2024, follows:

Revenues
The City’s total revenues for governmental and business-type activities were $90,020,941 for the fiscal year ended June 30, 2025. Approximately 73.82% of the City’s key revenues are generated from five major sources. 2025 2024 2025 2024 2025 2024
Revenues:

Program revenues:

Charges for services 13,956,862$ 12,679,221$ 1,380,757$ 1,356,068$ 15,337,619$ 14,035,289$ Grants and contributions:

Operating 16,005,026 12,248,466 - - 16,005,026 12,248,466 Capital 15,451,423 6,409,747 - - 15,451,423 6,409,747 General revenues:

Property taxes
and assessments 8,139,767 7,872,534 - - 8,139,767 7,872,534 Sales and use taxes 13,778,642 13,849,506 - - 13,778,642 13,849,506 Utility users tax 3,077,576 2,732,097 - - 3,077,576 2,732,097 Other taxes 1,563,976 1,450,458 - - 1,563,976 1,450,458 Other revenue - - - 61,711 - 61,711
Shared intergovernmental -
unrestricted 11,987,161 11,155,935 - - 11,987,161 11,155,935 Use of money and property 4,576,545 3,755,795 103,206 94,538 4,679,751 3,850,333 Total Revenues 88,536,978 72,153,759 1,483,963 1,512,317 90,020,941 73,666,076 Expenses:

Governmental activities:

General government 15,680,122 10,184,057 - - 15,680,122 10,184,057 Public safety 28,363,422 26,368,209 - - 28,363,422 26,368,209 Public ways and facilities 18,640,661 21,076,523 - - 18,640,661 21,076,523 Culture and recreation 1,285,621 1,185,806 - - 1,285,621 1,185,806 Economic development 468,220 1,141,315 - - 468,220 1,141,315 Community enhancements 4,784,190 4,389,584 - - 4,784,190 4,389,584 Interest on long-term debt 176,308 75,339 - - 176,308 75,339 Business-type activities:

Solid waste - - 1,335,548 1,061,583 1,335,548 1,061,583 Total Expenses 69,398,544 64,420,833 1,335,548 1,061,583 70,734,092 65,482,416 Excess of revenues over
expenditures before transfers 19,138,434 7,732,926 148,415 450,734 19,286,849 8,183,660 Transfers - 5,940 - (5,940) - -
Change in Net Position 19,138,434 7,738,866 148,415 444,794 19,286,849 8,183,660 Net position, beginning of year 360,627,722 352,888,856 2,363,735 1,918,941 362,991,457 354,807,797 Net Position, June 30 379,766,156$ 360,627,722 $ 2,512,150 $ 2,363,735$ 382,278,306$ 362,991,457 $ Governmental Activities Business-T ype Activitites Totals 8 ITEM 15
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED

The following discusses variances in key revenues from the prior fiscal year:

1. Sales Tax - Annual receipts for the fiscal year ended June 30, 2025 decreased by $70,864 from the prior year due to sustained inflationary pressures causing a cutback in consumer spending, in addition to the closure of retail stores located in the City and the continued decline of the Sunrise Mall.

2. Shared Intergovernmental Revenues - Annual receipts for the fiscal year ended June 30, 2025 increased by $831,226 from the prior year due to moderately increased property values. This amount represents the property tax in-lieu of vehicle license fees.

3. Property Tax - Annual receipts for the fiscal year ended June 30, 2024 increased by $267,233 from the prior year as real estate values increased modestly.

4. Grants and Contributions - Governmental Activities Operating - Governmental Activities operating grants and contributions were mainly from public safety street, road, and community enhancement grants that were for maintenance and operations as well as CARES Act allocations for CDBG Supplemental and DOJ for public safety. The amounts also included the CARES Act Relief funding for cities and the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). Operating grants increased by $3,756.560 due to use of SLFRF funds and a state grant for preventing organized retail theft.

5. Grants and Contributions - Governmental Activities Capital - The $9,041,673 increase in capital grant revenues reflects more projects with active construction than in the prior year, leading to increased capital project expenditures being reimbursed during the fiscal year. Specifically, the Auburn Boulevard Complete Streets project has resulted in significant grant-funded capital expenditures.

Expenses

Governmental and business-type activity expenses of the City for the year totaled $70,734,092. Governmental activity expenses totaled $69,398,544 or 98.11% of total expenses. Business-type activities expenses totaled $1,335,548 during the fiscal year. Public safety costs represented 40.87% of total governmental activities expenses and represented the largest single expense for governmental activities.

Governmental Activities

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

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 15,680,122$ (8,225,758)$ 10,184,057$ (3,920,099)$ Public safety 28,363,422 (23,871,720) 26,368,209 (23,043,347) Public ways and facilities 18,640,661 5,759,066 21,076,523 (3,365,067) Culture and recreation 1,285,621 (1,226,807) 1,185,806 (1,139,568) Economic development 468,220 300,046 1,141,315 (919,378) Community enhancements 4,784,190 3,456,248 4,389,584 (620,601) Interest on long-term debt 176,308 (176,308) 75,339 (75,339) TOTAL 69,398,544$ (23,985,233) $ 64,420,833 $ (33,083,399) $ 2025 2024
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED

Revenues by source for the fiscal years ended June 30, 2025, and 2024, are as follows:

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED

Business-type activities. The City’s net position for business-type activities increased by $45,209 for the fiscal year ended June 30, 2025. The City has one business-type activity, which is Solid Waste Operations. The expenses and program revenues for the Solid Waste Operation for the fiscal year ended June 30, 2025, and 2024, are as follows:

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED

The revenues by source for the solid waste business-type activity for the fiscal years ended June 30, 2025 and 2024 are as follows:

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

FUND FINANCIAL ANALYSIS

Financial Analysis of the Government’s Funds

The City of Citrus Heights uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental funds . The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2025, the City’s governmental funds reported combined fund balances of $68,319,442.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2025, the General Fund’s fund balance totaled $40,931,449 of which $4,486,978 was committed for reserves and revenue stabilization. Fund balance in the General Fund increased by $5,883,575 largely due to the City’s receipt of federal grant reimbursement revenues, higher than expected interest revenue, and salary savings from vacant positions.

The Streets Fund accounts for funds expended on various street capital improvement and paving projects. Fund balance in the Streets Fund decreased by $1,415,357 due to increased spending on capital projects such as Auburn Boulevard Complete Streets and Dewey Van Maren Enhancement, and timing of grant reimbursements.

Proprietary funds. The City has one business-type activity, which is Solid Waste Operations. The Proprietary fund unrestricted net position increased $45,209 in the fiscal year ended June 30, 2025, largely due to increase in franchise fee revenue.

General Fund Budgetary Highlights

The actual total revenues were approximately $8,172,194 higher than the final budgeted amount. All revenue categories exceeded budget estimates, except for taxes. The largest variance compared to the budget was in intergovernmental revenue, which was $4,199,156 more than budgeted. This is due primarily to a significant increase in federal grant reimbursements including from the City’s State and Local Fiscal Recovery Funds (also known as the American Recovery Plan Act, or ARPA funds). Revenue for investment revenue was also significantly higher than anticipated, due to interest rates decreasing more slowly than projected.

The actual total expenditures were less than the final budgeted amount by $3,394,158 due mainly to salary savings from vacant positions.

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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

CAPITAL ASSETS AND

DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for governmental and business-type activities as of June 30, 2025 amounted to $335,778,056. This investment in capital assets includes land, art, construction in progress costs for road and other improvements, buildings and improvements, infrastructure, the City Hall and Utility Yard assets, and machinery and equipment.

The increase in construction in progress was mainly due to the following projects:
• Auburn Boulevard Complete Streets,
• 2021 Bridge Maintenance,
• San Juan Complete Streets,
• Dewey Van Maren Enhancement, and
• Sunrise Boulevard Resurfacing
More detail of the capital assets and current activity can be found in the notes to the financial statements on Pages 43 and 44.

Long-term Debt
The City’s total long-term liabilities at June 30, 2025 totaled $36,081,603 and included a net pension liability of $26,837,611. CalPERS achieved a strong investment return of 9.3% for Fiscal Year 2023/24, exceeding expectations. This positive performance is reflected in the actuarial valuation reports used to assess the City’s net pension liability, resulting in a reduction of $442,681.

Long-term debt increased by an additional $1,573,190 due primarily to the addition of three software subscriptions that increased the City’s subscription liability, and the implementation of GASB Statement No. 101, Compensated Absences that increased the City’s compensated absences liability. This accounting standard became effective in the current year. More detail on the City’s long-term debt can be found in Note 6 and 7 on pages 45-47, and Notes 11 and 12 on pages 51-61.
2025 2024 2025 2024 2025 2024
Land 16,935,380$ 15,996,355$ -$ - $ 16,935,380$ 15,996,355$ Art 113,951 113,951 - - 113,951 113,951
Construction in progress 46,610,964 23,430,578 - - 46,610,964 23,430,578 Subscriptions in progress 192,257 92,865 - - 192,257 92,865 Buildings and
improvements 17,500,124 16,525,784 - - 17,500,124 16,525,784 Infrastructure 245,070,271 253,449,500 326,463 334,336 245,396,734 253,783,836 Lease assets 10,105 - - - 10,105 -
Subscription assets 3,905,318 3,364,867 - - 3,905,318 3,364,867 Machinery and
equipment 5,439,686 2,831,481 - - 5,439,686 2,831,481 Total 335,778,056$ 315,805,381 $ 326,463 $ 334,336$ 336,104,519$ 316,139,717 $ Governmental Business-type
Activities Activities Total
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MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

ECONOMIC OUTLOOK AND NEXT YEAR’S BUDGET

Economic Outlook

Looking to the next fiscal year, the following key factors may have an impact on City finances:
• Although median property taxes are decreasing in the Sacramento region, property taxes are expected to remain stable and grow by 3.55% for fiscal year 2025-2026 due to the appreciation of assessed property values.
• Sales tax revenue is expected to increase by 1.20% in fiscal year 2025-2026 due to anticipated steady consumer spending across a variety of categories, including autos and transportation, fuel and service stations, and general consumer goods. Current projections expect this trend to strengthen in fiscal year 2026-2027.
• Operating expenses are expected to increase due to rising costs of labor, service contracts, and increased insurance premiums.

Fiscal Year 2025-2026 Budget

The City Council adopted a two-year budget for fiscal years 2025-2026 and 2026-2027. The budget for fiscal year 2025-2026 includes revenues of $46.09 million and expenses of $48.62 million, including the use of $4 million in general fund reserves for accelerated street repair projects.

Requests for Information

This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Citrus Heights Administrative Services Department, 6360 Fountain Square Drive, Citrus Heights, CA 95621, or visit the City’s web page at www.citrusheights.net.

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CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 62,114,658$ 2,611,618$ 64,726,276$ Receivables (net of uncollectibles):

Accounts 1,791,564 98,692 1,890,256 Accrued interest 195,075 7,836 202,911 Due from other governments 11,720,015 16,123 11,736,138 Notes and loans 1,411,468 - 1,411,468 Leases 3,601,694 - 3,601,694 Deposits 4,000 - 4,000 Net OPEB asset 302,404 3,726 306,130 Land held for resale 6,224,697 - 6,224,697 Prepaid costs 186,865 16,320 203,185 Capital assets (not being depreciated) 63,852,552 - 63,852,552 Capital assets (net of accumulated depreciation/amortization) 271,925,504 326,463 272,251,967 Total assets 423,330,496 3,080,778 426,411,274

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 10,546,470 262,143 10,808,613 OPEB-related 765,555 9,432 774,987 Total deferred outflows of resources 11,312,025 271,575 11,583,600

LIABILITIES
Accounts payable 6,893,592 47,700 6,941,292 Pass-through payable 940,050 - 940,050 Due to other governments 946,518 42,939 989,457 Accrued liabilities 989,232 1,401 990,633 Accrued interest 66,653 - 66,653 Deposits payable 166,388 - 166,388 Unearned revenue 4,677,565 - 4,677,565 Noncurrent liabilities:

Due within one year: notes, loans, leases, SBITA, claims, and compensated absences 2,914,040 - 2,914,040 Due in more than one year:

Net pension liability 26,128,390 709,221 26,837,611 Notes, loans, leases, SBITA, claims and
compensated absences 6,329,952 - 6,329,952 Total liabilities 50,052,380 801,261 50,853,641

DEFERRED INFLOWS OF RESOURCES
Pension-related 1,025,325 25,034 1,050,359 OPEB-related 1,128,863 13,908 1,142,771 Lease-related 2,669,797 - 2,669,797 Total deferred inflows of resources 4,823,985 38,942 4,862,927

NET POSITION
Net investment in capital assets 330,498,553 326,463 330,825,016 Restricted:

Stormwater maintenance 1,578,678 - 1,578,678 Streets, roads and park projects 10,034,314 - 10,034,314 Assessment district maintenance 1,658,068 - 1,658,068 Police activities 630,944 - 630,944 Housing projects 8,452,295 - 8,452,295 Transit program 1,034,502 - 1,034,502 Tree mitigation 938,831 - 938,831 OPEB 302,404 3,726 306,130
Unrestricted 24,637,567 2,181,961 26,819,528 Total net position 379,766,156$ 2,512,150 $ 382,278,306 $ June 30, 2025
Primary Government
See Notes to Financial Statements.
17 ITEM 15
Agenda Packet Page #83

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government 15,680,122$ 2,872,528$ 4,581,836$ -$ Public safety 28,363,422 2,263,851 2,227,851 - Economic development 468,220 - 768,266 -
Culture and recreation 1,285,621 58,814 - - Public ways and facilities 18,640,661 5,724,776 5,738,567 12,936,384 Community enhancements 4,784,190 3,036,893 2,688,506 2,515,039 Interest on long-term debt 176,308 - - -
Total governmental activities 69,398,544 13,956,862 16,005,026 15,451,423 Business-type activities:

Solid Waste 1,335,548 1,380,757 - -
Total business-type activities 1,335,548 1,380,757 - - Total primary government 70,734,092$ 15,337,619$ 16,005,026$ 15,451,423$ General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Utility users tax
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Gain on sale of capital asset
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See Notes to Financial Statements.
18 ITEM 15
Agenda Packet Page #84
Governmental Business-Type
Activities Activities Total
(8,225,758)$ - $ (8,225,758)$
(23,871,720) - (23,871,720) 300,046 - 300,046
(1,226,807) - (1,226,807) 5,759,066 - 5,759,066
3,456,248 - 3,456,248
(176,308) - (176,308)
(23,985,233) - (23,985,233) - 45,209 45,209
- 45,209 45,209
(23,985,233) 45,209 (23,940,024)
8,139,767 - 8,139,767
13,778,642 - 13,778,642
90,445 - 90,445
1,386,411 - 1,386,411
3,077,576 - 3,077,576
40,865 - 40,865
11,987,161 - 11,987,161
4,411,069 103,206 4,514,275
46,255 - 46,255
165,476 - 165,476
43,123,667 103,206 43,226,873
19,138,434 148,415 19,286,849
360,627,722 2,363,735 362,991,457
379,766,156$ 2,512,150 $ 382,278,306 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
19 ITEM 15
Agenda Packet Page #85

CITY OF CITRUS HEIGHTS, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
Projects Fund
Total Total
Nonmajor Governmental
General Streets Funds Funds
ASSETS
Pooled Cash and investments 37,649,063$ - $ 24,465,595$ 62,114,658$ Receivables (net of allowance for uncollectible):

Accounts 693,274 7,800 1,090,490 1,791,564 Interests 122,878 - 72,197 195,075
Due from other governments 3,283,391 5,620,086 2,816,538 11,720,015 Notes and loans 8,504 - 1,402,964 1,411,468
Leases 3,601,694 - - 3,601,694
Due from other funds 3,738,361 - - 3,738,361
Deposits 4,000 - - 4,000
Prepaid costs 167,566 - 19,299 186,865
Land held for resale - - 6,224,697 6,224,697
Total assets 49,268,731$ 5,627,886$ 36,091,780$ 90,988,397$

LIABILITIES
Accounts payable 938,215$ 3,514,858 $ 2,440,519 $ 6,893,592$ Accrued liabilities 981,008 - 8,224 989,232
Unearned revenues 3,041,116 378,823 1,257,626 4,677,565 Other Payables - 926,217 13,833 940,050
Deposits payable 166,388 - - 166,388
Due to other governments 350,908 4,691 590,919 946,518 Due to other funds - 3,152,638 585,723 3,738,361 Total liabilities 5,477,635 7,977,227 4,896,844 18,351,706

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 189,850 369,880 1,087,722 1,647,452 Leases 2,669,797 - - 2,669,797
Total deferred inflows of resources 2,859,647 369,880 1,087,722 4,317,249

FUND BALANCES (DEFICITS)
Nonspendable 3,781,764 - 19,299 3,801,063
Restricted - - 24,316,007 24,316,007
Committed 4,486,978 - - 4,486,978
Assigned - - 5,797,517 5,797,517
Unassigned 32,662,707 (2,719,221) (25,609) 29,917,877 Total fund balances (deficits) 40,931,449 (2,719,221) 30,107,214 68,319,442 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 49,268,731$ 5,627,886$ 36,091,780$ 90,988,397$ Capital
See Notes to Financial Statements.
20 ITEM 15
Agenda Packet Page #86
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds 68,319,442$
335,778,056
Deferred outflows-pension related 10,546,470 $
Deferred outflows-OPEB related 765,555
Deferred inflows-pension related (1,025,325)
Deferred inflows-OPEB related (1,128,863)
Total deferred outflows and inflows related to postemployment benefits 9,157,837 Net OPEB asset 302,404
Miscellaneous revenues 1,647,452
Total other long-term assets 1,949,856
Notes and loans payable (821,894)
Claims payable (2,080,878)
Leases payable (10,184)
Subscriptions payable (3,507,375)
Compensated absences (2,823,661)
Accrued interest payable on long-term debt (66,653)
Net pension liability (26,128,390)
Total long-term liabilities (35,439,035)
Net position of governmental activities 379,766,156$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

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

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

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

See Notes to Financial Statements.
21 ITEM 15
Agenda Packet Page #87

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Total Total
Nonmajor Governmental
General Funds Funds

REVENUES
Taxes 26,503,561$ - $ 10,145$ 26,513,706$ Licenses and permits 2,628,955 - 200,792 2,829,747 Intergovernmental 16,247,609 13,737,134 13,005,931 42,990,674 Charges for services 2,528,098 - 6,547,509 9,075,607 Use of money and property 2,938,366 - 1,059,541 3,997,907 Fines and forfeitures 1,231,166 - - 1,231,166 Contributions 27,420 - 9,246 36,666 Miscellaneous 476,485 46,255 179,892 702,632 Total revenues 52,581,660 13,783,389 21,013,056 87,378,105

EXPENDITURES
Current:

General government 10,056,614 - 37,135 10,093,749 Public safety 24,415,982 - 1,467,936 25,883,918 Community enhancements 1,832,046 - 1,777,260 3,609,306 Economic development 1,039,437 - - 1,039,437 Culture and recreation 1,056,889 - 87,310 1,144,199 Public ways and facilities 1,900,024 345,597 10,743,906 12,989,527 Capital outlay 2,061,413 26,373,118 3,278,374 31,712,905 Debt service:

Principal 72,653 - 19,592 92,245 Interest and fiscal charges 101,316 - 11,752 113,068 Total expenditures 42,536,374 26,718,715 17,423,265 86,678,354 Excess (deficiency) of revenues
over (under) expenditures 10,045,286 (12,935,326) 3,589,791 699,751

OTHER FINANCING SOURCES (USES)
Transfers in - 11,367,472 1,830,772 13,198,244 Transfers out (5,390,369) (47,978) (7,759,897) (13,198,244) Issuance of leases, SBITAs, notes, and loans 1,228,658 200,475 - 1,429,133 Proceeds for sale of capital assets - - 165,476 165,476 Total other financing sources (uses) (4,161,711) 11,519,969 (5,763,649) 1,594,609 Net change in fund balances 5,883,575 (1,415,357) (2,173,858) 2,294,360 Fund balances (deficit)-beginning 35,047,874 (1,303,864) 32,281,072 66,025,082 Fund balances (deficit)-ending 40,931,449$ (2,719,221)$ 30,107,214$ 68,319,442$ Capital
Projects Fund
Streets
See Notes to Financial Statements.
22 ITEM 15
Agenda Packet Page #88
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: 2,294,360$ Capital outlay 33,540,339$
Depreciation/amortization expense (13,562,407)
Total adjustment 19,977,932
Earned but unavailable other revenues 845,315
Total adjustment 845,315
Notes and loans issued (200,475)
Leases issued (10,184)
Subscriptions issued (1,218,474)
Principal payments 530,174
Total adjustment (898,959)
Compensated absences (928,053)
Claims payable 253,822
Changes in pension liabilities and related deferred outflows and inflows of resources (2,293,506) Changes in OPEB liabilities and related deferred outflows and inflows of resources (49,237) Total adjustment (3,080,214)
Change in net position of governmental activities 19,138,434$ Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

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

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

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

See Notes to Financial Statements.
23 ITEM 15
Agenda Packet Page #89
7+,63$*(,17(17,21$//</()7%/$1.
24 ITEM 15
Agenda Packet Page #90

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current assets:

Cash and investments 2,611,618$
Receivables:

Accounts 98,692
Accrued interest 7,836
Due from other governments 16,123
Prepaid items 16,320
Total current assets 2,750,589
Noncurrent:

Net OPEB asset 3,726
Capital assets, net 326,463
Total noncurrent assets 330,189
Total assets 3,080,778

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 262,143
OPEB-related 9,432
Total deferred outflows of resources 271,575

LIABILITIES
Current liabilities:

Accounts payable 47,700
Accrued liabilities 1,401
Due to other governments 42,939
Total current liabilities 92,040
Noncurrent liabilities:

Net pension liability 709,221
Total noncurrent liabilities 709,221
Total liabilities 801,261

DEFERRED INFLOWS OF RESOURCES
Pension-related 25,034
OPEB-related 13,908
Total deferred inflows of resources 38,942

NET POSITION
Invested in capital assets 326,463
Restricted - OPEB 3,726
Unrestricted 2,181,961
Total net position 2,512,150$
Solid Waste
See Notes to Financial Statements.
25 ITEM 15
Agenda Packet Page #91

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025

OPERATING REVENUES
Charges for services 1,380,757$
Total operating revenues 1,380,757

OPERATING EXPENSES
Administration and general 536,607
Transmission/collection 355,015
Source of supply 171,628
Pumping 264,425
Depreciation 7,873
Total operating expenses 1,335,548
Operating income (loss) 45,209

NONOPERATING REVENUES (EXPENSES)
Interest revenue 103,206
Total nonoperating revenues (expenses) 103,206
Change in net position 148,415
Net position-beginning 2,363,735
Net position-ending 2,512,150$
Solid Waste
See Notes to Financial Statements.
26 ITEM 15
Agenda Packet Page #92

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,425,459$
Payments to suppliers and service providers (1,359,440) Payments to employees for salaries and benefits (10,083) Net cash provided by (used for)
operating activities 55,936

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 115,218
Net cash provided by (used for)
investing activities 115,218
Net increase (decrease) in
cash and cash equivalents 171,154
Cash and cash equivalents-beginning 2,440,464
Cash and cash equivalents-ending 2,611,618$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) 45,209$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 7,873
(Increase) decrease in accounts receivable 44,702
(Increase) decrease in prepaid items (777)
Increase (decrease) in accounts payable (144,197)
Increase (decrease) in accrued liabilities 1,401
Increase (decrease) in net pension liability 101,108
Increase (decrease) in net OPEB asset 617
Total adjustments 10,727
Net cash provided by (used for)
operating activities 55,936$
Solid Waste
See Notes to Financial Statements.
27 ITEM 15
Agenda Packet Page #93
Custodial
Funds
ASSETS
Cash and cash equivalents 85,226$
Total assets 85,226

LIABILITIES
Due to other governments 10,207
Total liabilities 10,207

NET POSITION
Restricted for:

Other governments 75,019
Total net position 75,019$

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See Notes to Financial Statements.
28 ITEM 15
Agenda Packet Page #94
Custodial
Funds

DEDUCTIONS
Contractual services 121,106$
Total deductions 121,106
Net increase (decrease) in fiduciary net position (121,106) Net position-beginning 196,125
Net position-ending 75,019$

CITY OF CITRUS HEIGHTS, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See Notes to Financial Statements.
29 ITEM 15
Agenda Packet Page #95
7+,63$*(,17(17,21$//</()7%/$1.
30 ITEM 15
Agenda Packet Page #96

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Financial Reporting Entity

The City of Citrus Heights (City) was incorporated on January 1, 1997, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: public safety (police), highways and streets, solid waste, stormwater utility, public improvements, planning and zoning, building, animal services, transit, and general administration.

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

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

As required by GAAP, these financial statements would present the government and its component units, entities for which the government is considered to be financially accountable. The City does not have any component units.

Basis of Presentation

Government-Wide Financial Statements

The government-wide statement of net position and statement of activities display information about the nonfiduciary activities of the government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues, while business-type activities rely to a significant extent on fees and charges to external parties.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions restricted to the operating or capital requirements of a specific function or segment. All taxes and internally dedicated resources classified as program revenues are reported as general revenues.

31 ITEM 15
Agenda Packet Page #97

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Financial Statements
Fund financial statement
s of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental fund are at least ten percent of the corresponding total for all funds of that category or type; and, b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least five percent of the corresponding total for all governmental funds combined.

Qualitative factors are also considered in determining major programs as applicable.

The City reports the following major funds:
• General Fund – The General Fund is the primary operating fund of the City. It accounts for all activities except those legally or administratively required to be accounted for in another fund. From this fund are paid the City’s general operating expenditures, the fixed charges, and the capital costs that are not paid through other funds. • Streets Capital Projects Fund – Accounts for all capital project expenditures for various street projects. • Solid Waste Enterprise Fund – Accounts for all administrative costs required for all solid waste activities.

Additionally, the City reports the following fund types:

Governmental Funds
Special Revenue Funds - The Special Revenue Funds are used to account for specific revenues that are legally or otherwise restricted to expenditures for particular purposes.

Capital Project Funds - The Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities other than those financed by proprietary funds.

Fiduciary Funds
Custodial Funds - Custodial Funds account for assets held by the City in a fiduciary capacity. The Custodial Funds account for monies held for other governments and/or entities to which the City provides accounting and investing services, which none are held in trust. There are two custodial funds reported by the City, including a fund that collects fire development fees on behalf of the Sacramento Metropolitan Fire District and a fund that collects transportation fees on behalf of the State.

Measurement Focus
Measurement focus is a term used to describe which transactions are recorded within the various financial statements.

The government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds. The accounting objectives of economic resources measurement focus are the determination of net income, financial position, and cash flows.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the 32 ITEM 15
Agenda Packet Page #98

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

timing of related cash flows. Property taxes are recorded in the year for which they are levied. Sales taxes are recognized when the underlying sales transaction takes place. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. All assets and liabilities (whether current or noncurrent) as well as deferred outflows and inflows of resources, associated with their activities are reported. Fund equity is classified as net position, which serves as an indicator of financial position.

In the governmental fund financial statements, the “current financial resources” measurement focus is used and the modified accrual basis of accounting. Only current financial assets and liabilities along with deferred outflows and inflows of resources are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

Basis of Accounting

In the government-wide statements, proprietary funds and private purpose trust funds are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund, including charges for services. All other
revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Governmental fund financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount, and available means the amount is collectible within the current period or soon enough thereafter to pay current liabilities. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year end, with the exception of grant revenues, sales tax and Transportation Development Act (TDA) revenues. Grant revenues are considered to be available if collected within 180 days and sales tax and TDA revenues are considered to be available if collected within 90 days of the end of the current fiscal period.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.

Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity

Cash and Investments

The City’s cash and cash equivalents include cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition, including the City’s investments in LAIF, and U.S. Agency Obligations.

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

33 ITEM 15
Agenda Packet Page #99

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Major receivable balances for the governmental activities include sales and use taxes, utility user taxes, intergovernmental subventions, interest earnings, expense reimbursements, and leases.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, utility user tax, and intergovernmental subventions since they are usually both measurable and available.

Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

Interfund Receivables and Payables

During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the government-wide Statement of Net Position. See Note 9 for details of interfund transactions, including receivables and payables at year-end.

Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are reported as nonspendable fund balance to indicate they do not constitute current resources available for appropriation. The consumption method is used to recognize prepaid items.

Capital Assets

The City's assets are capitalized at historical cost or estimated historical cost, if actual cost is unavailable. Donated capital assets are recorded at the acquisition value, which is the price that would be paid to acquire an asset with equivalent service potential in an orderly market transaction at the acquisition date. The City policy has set the capitalization threshold at $10,000 for non-infrastructure capital assets and $50,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems. Prior to July 1, 2003, governmental activity infrastructure assets were not capitalized; however, since then these assets have been valued at estimated historical cost.

The accounting treatment of capital assets depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Purchases of capital assets are reported as capital outlay expenditures in governmental funds and proceeds from sales of capital assets are reported as other financing sources. In the government-wide and proprietary fund statements, the cost of assets sold or retired, net of accumulated depreciation/amortization, is removed from the statement of net position in the year of sale or retirement and the resulting gain or loss on disposal is reported.
34 ITEM 15
Agenda Packet Page #100

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Depreciation/amortization of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation/amortization reflected in the Statement of Net Position.

Depreciation/amortization is provided over the assets’ estimated useful lives using the straight-line method of depreciation/amortization.

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

Building and improvements 5-50 years
Leasehold improvements 5 years
Machinery and equipment 5 years
Network equipment/ phone system 10 years
Computer equipment 5 years
Vehicles 5-15 years
Subscription assets Lesser of life of asset
or length of agreement

Deferred Outflows and Inflows of Resources

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represent a consumption of net assets by the government that is applicable to a future reporting period. Deferred inflows of resources represent an acquisition of net assets that is applicable to a future reporting period. These amounts will not be recognized as an outflow of resources (expenditure/expense) or an inflow of resources (revenue) until the earnings process is complete. The governmental funds report unavailable revenues for grants and other revenues when the amounts meet the asset recognition criteria under GASB Statement No. 33 and were accrued as receivables, but the amounts were not received in the availability period. Deferred outflows and inflows of resources include amounts deferred related to the City’s lease under GASB 87 as described in Note 5, the City’s pension plan under GASB 68 as described in Note 11, and the City’s OPEB plan under GASB 75 as described in Note 12.

Compensated Absences

Employees accrue annual leave, long-term medical, holiday and compensatory time off benefits. City employees have vested interests in the amount of accrued time off, with the exception of long-term medical leave, and are paid at termination. Also, annually an employee may elect to be compensated for up to 40 hours of unused annual leave.

However, this is contingent upon the employee using at least 40 hours of annual leave during the previous year and, the employee having a minimum balance of 80 annual leave hours after the payment. Compensated absences are accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if they have matured (for example, as a result of employee resignations or retirements) and are currently payable. The City had no employee resignations or retirements for which compensated absences should be accrued in governmental funds at year-end. 35 ITEM 15
Agenda Packet Page #101

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equity Classification
Government-Wide Statements
Equity in government-wide
and proprietary fund statements is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation/amortization and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation.
c. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
Fund Financial Statements
Governmental
fund equity is classified as fund balance and displayed in the following components:

Nonspendable Fund Balance –
• Assets that will never convert to cash (prepaid items and inventory) and assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).

Restricted Fund Balance –
• Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments). • Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g., Gas Tax).

Committed Fund Balance –
• Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
• Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove. Council Resolution is required to be approved to establish, modify or rescind a fund balance commitment.

Assigned Fund Balance –
• Resources constrained by the government’s intent to be used for specific purposes, but are neither restricted
nor committed.
• Governmental fund amounts in excess of nonspendable, restricted and committed in other than the General Fund are automatically reported as assigned.
• Assigned amounts for specific purposes are determined and authorized by the City Manager. Use of assigned funds exceeding the City Manager’s $50,000 spending authority are approved as part of the budget or by Council Resolution.
36 ITEM 15
Agenda Packet Page #102

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Unassigned Fund Balance –

• Residual net resources.

• Total fund balance in the General Fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus).

• Excess of nonspendable, restricted and committed fund balance over total fund balance (deficit).

See Note 8 for more information about the City’s net position and fund balances.

Revenues, Expenditures, and Expenses

Program Revenues

Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues.

Property Tax

The County of Sacramento (County) is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.

Secured property taxes are levied on or before the first day of September of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction. Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates, but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on March 1, and become delinquent if unpaid on August 31.

The City participates in an alternative method of distribution of property tax levies and assessments known as the “Teeter Plan.” The State Revenue and Taxation Code allow counties to distribute secured real property, assessment, and supplemental property taxes on an accrual basis resulting in full payment to cities each fiscal year.

Any subsequent delinquent payments and penalties and interest during a fiscal year will revert to Sacramento County. The Teeter Plan payment, which includes 95% of the outstanding accumulated delinquency, is included in property tax revenue retained by Sacramento County under the revenue neutrality agreement. Under the Teeter Plan Code, 5% of the delinquency must remain with the County as a reserve for Teeter Plan funding. 37 ITEM 15
Agenda Packet Page #103

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Interfund Transfers

Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers within individual governmental funds have been eliminated. See Note 9 for more information about the City’s interfund transfers.

Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund, Solid Waste Fund and any non-major special revenue funds that have contributions expense are used to liquidate the net pension liability.

Other Post-Employment Benefits Plan (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plan and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund, Solid Waste Fund and any non-major special revenue funds that have contributions expense are used to liquidate the net OPEB liability.

Use of Estimates

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

Joint Power Authorities or Jointly Governed Organizations

The City of Citrus Heights is a member of several Joint Powers Agencies (JPA) and/or jointly managed agencies, including:

Agency Name Purpose
Sacramento Metropolitan Air Quality Management District Monitors and enforces air quality requirements Sacramento Regional County Sanitation District Waste water conveyance, treatment and disposal Sacramento Area Sewer District Sewer service
Sacramento Transportation Authority Administration of transportation projects Sacramento Area Council of Governments Regional planning (primarily transportation)

Funding, if any, for each of these agencies from the City is based on annual appropriations. The City has no continuing financial liability and does not expect any financial burden from its participation in any of these agencies.

Separate financial statements of the JPA’s can be obtained by contacting the individual agencies. 38 ITEM 15
Agenda Packet Page #104

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Q. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements

During the year ended June 30, 2025, the City implemented the following new accounting standards issues by the Governmental Accounting Standards Board (GASB):

1. GASB Statement No. 101, Compensated Absences

The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences The City’s financial statements were not significantly impacted by the implementation of this statement.

2. GASB Statement No. 102, Certain Risk Disclosures

The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The City’s financial statements were not impacted by the implementation of this Statement.

NOTE 2: CASH AND INVESTMENTS

At June 30, 2025, the City’s pooled cash and investments are classified in the accompanying financial statements as follows:

Cash and investments are categorized as follows under GASB Statement No. 40:

Investments Authorized by the California Government Code and the City’s Investment Policy

Investments are reported at fair value. California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code that address interest rate risk, credit risk, and concentration of credit risk.

Statement of Net Position
Cash and investments 64,726,276 $
Statement of Fiduciary Net Position
Cash and cash equivalents 85,226
Total cash and investments 64,811,502$
Cash on hand 8,100$
Deposits with financial institutions 2,150,623
Investments 62,652,779
Total cash and investments 64,811,502$
39 ITEM 15
Agenda Packet Page #105

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 2: CASH AND INVESTMENTS (CONTINUED)
During the year ended June 30, 2025, the City’s permissible investments included the following instruments:

The City complied with the provisions of California Government Code pertaining to the types of investments held, institutions in which deposits were made and security requirements. The City will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.

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 maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. In accordance with its investment policy, the City manages its exposures to declines in fair values by limiting the weighted average maturity of its investment portfolio to less than 5 years. As of June 30, 2025, the weighted average maturity of investments was 12 months or less.

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

Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity * of Portfolio * in One Issuer * U.S. Treasury obligations Yes 5 years None None
U.S. agency securities Yes 5 years None None
Bankers acceptances Yes 180 days 40% 5%
Commercial paper Yes 270 days 25% 5%
Certificates of deposit (nonnegotiable) Yes 5 years None None Certificates of deposit (negotiable) Yes 5 years 30% None Repurchase agreements Yes 1 year None 5%
Medium-term notes Yes 5 years 30% 5%
Municipal investments Yes 5 years 10% 5%
Money market mutual funds Yes N/A 20% 10%
Mortgage pass-through securities Yes 5 years 20% None
Local Agency Investment Fund Yes N/A None $50 million
* Based on state law requirements or City investment policy requirements, whichever is more restrictive. 12 Months 13 to 24 25 to 60
Investment Type Total or Less Months Months
U.S. Treasury obligations 3,613,200 $ 998,233 $ 1,004,896 $ 1,610,072 $ U.S. agency securities 3,042,608 1,026,774 855,885 1,159,950 Commercial paper 1,216,769 - 202,960 1,013,809
Medium-term notes 2,784,944 473,445 1,116,199 1,195,300 Municipal investments 141,051 - - 141,051
Money market mutual funds 38,025 38,025 - - California Asset Management Program 31,065,832 31,065,832 - - Local Agency Investment Fund 20,584,319 20,584,319 - - Supranational 166,031 166,031 - -
Total 62,652,779$ 54,352,658$ 3,179,940$ 5,120,182$ Remaining Maturity (in Months)
40 ITEM 15
Agenda Packet Page #106

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

Credit Risk

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

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

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. At June 30, 2025 the City did not hold investments in any one issuer, other than U.S. Treasury securities, mutual funds, and external investment pools that represent more than 5% of the City’s investment portfolio.

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

At June 30, 2025, the carrying amount of the City’s deposits was $636,154 and the balance in financial institutions was $2,150,623. Of the balance in financial institutions, $250,000 was covered by federal depository insurance and $1,604,206 was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the City and governmental agencies, but not in the name of the City.

Minimum Exempt or
Inv estment Type Total Legal Rating Aaa Aa A Not Rated
U.S. Treasury obligations 3,613,200$ Exempt -$ -$ -$ 3,613,200$ U.S. agency securities 3,042,608 Exempt - - - 3,042,608 Commercial paper 1,216,769 Aaa 1,216,769 - - - Medium-term notes 2,784,944 A 124,215 566,896 2,093,833 - Municipal investments 141,051 A - 141,051 - - Money market mutual funds 38,025 Aaa 38,025 - - - California Asset Management Program 31,065,832 Not Rated - - - 31,065,832 Local Agency Investment Fund 20,584,319 Not Rated - - - 20,584,319 Supranational 166,031 Aa 166,031 - - - Total 62,652,779$ 1,545,040$ 707,947$ 2,093,833$ 58,305,960$ Moody's Rating as of Fiscal Year End
41 ITEM 15
Agenda Packet Page #107

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investment in LAIF
LAIF is stated at fair value. LAIF is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The total fair value amount invested by the City in LAIF is $20,584,319 and is managed by the State Treasurer. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Uncategorized – Investments in the Local Agency Investment Funds/State Investment Pools (LAIF) are not measured using the input levels above because the City’s transactions are based on a stable net asset value per share. All contributions and redemptions are transacted at $1.00 net asset value per share. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance of LAIF is available for withdrawal on demand.

As of June 30, 2025, 32.5% of the City’s investments were invested in LAIF with a reported balance of $20,584,319.

NOTE 3: LOANS AND NOTES RECEIVABLE
Through the City’s various housing rehabilitation funds and first-time home buyer’s funds, the City has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms of the loan. Accrued interest receivable on the loans totaled $572,267 at year-end. The City also has loans receivable from employees for computer purchases in the General Fund.

Governmental activities loans and notes receivable consisted of the following for the year ended June 30, 2025:

The following is a summary of the loans and notes receivable outstanding as of June 30, 2025:

General Fund – These loans are for employees to purchase computers for personal use as a benefit provided by the City, loans are provided on a two-year amortization schedule and do not bear interest. The balance of these loans at June 30, 2025, was $8,504.

Outstanding at
June 30, 2025
General Fund 8,504 $
Home Program Grants 2,481,545
CDBG Grants Special Revenue Fund 1,335,981
Housing Agency 1,345,149
Allowance for Uncollectible Loans (3,759,711)
1,411,468$
42 ITEM 15
Agenda Packet Page #108

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 3: LOANS AND NOTES RECEIVABLE (CONTINUED)

HOME Program Grants Special Revenue Fund – The City made various loans to qualifying participants within the City that are reported in this fund under the following programs:

Federal First Time Home Buyers Program (HOME) - Interest rates vary depending on the terms of the loan and interest is deferred until the loan is refinanced or title to the property changes. The loan principal may be assumed by another qualifying borrower or must be returned to the City if a nonqualifying buyer purchases the related property. Interest rates ranged from 0% to 3% at year-end and the loans mature through 2044. The HOME notes receivable balance at June 30, 2025, was $2,481,545 and an allowance was set up for the full amount.

Community Development Block Grant (CDBG) Special Revenue Fund – The City participates in a CDBG Revolving loan program. The program is federally funded and provides housing rehabilitation loans to eligible applicants. The City makes loans to resident homeowners who qualify as low income, some of which are deferred and are not repaid until the title to the property changes. Interest rates range from 0% to 3% at year-end and mature through 2048. The balance of these loans outstanding at June 30, 2025, was $1,335,981 of which, an allowance on uncollectible loans was set up for $1,133,016.

Housing Agency Fund – The City took over maintenance of loans receivable during the year ended June 30, 2016, for Low and Moderate-income Housing that were previously reported in the Successor Agency Housing Fund. The City provides home rehabilitation loans to eligible low and moderate-income borrowers. Interest on certain loans may be waived by the City if the loan remains outstanding for the full term; therefore, interest income is recorded when received. Interest rates ranged from 0% to 3% and loans mature through 2044. The balance of these loans outstanding at June 30, 2025, was $1,345,149, of which, an allowance on uncollectible loans was set up for $145,150.

NOTE 4: CAPITAL ASSETS

Capital asset activity was as follows for the year ended June 30, 2025:

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

Capital assets, not being depreciated/amortized
Land 15,996,355$ 939,025$ -$ -$ 16,935,380$ Art 113,951 - - - 113,951 Subscriptions-in-progress 92,865 99,392 - - 192,257 Construction-in-progress 23,430,578 28,203,059 - (5,022,673) 46,610,964 Total capital assets, not being depreciated/amortized 39,633,749 29,241,476 - (5,022,673) 63,852,552 Capital assets, being depreciated/amortized
Buildings 41,399,118 1,419,256 - - 42,818,374 Machinery, equipment, and vehicles 8,333,413 1,523,584 (408,973) 1,800,661 11,248,685 Infrastructure 587,800,206 216,184 - 3,222,012 591,238,402 Lease assets - equipment - 10,184 - - 10,184 Subscription assets - software 3,724,510 1,129,655 - - 4,854,165 Total capital assets, being depreciated/amortized 641,257,247 4,298,863 (408,973) 5,022,673 650,169,810 Less accumulated depreciation/amortization
Buildings (24,873,334) (444,916) - - (25,318,250) Machinery, equipment, and vehicles (5,501,932) (710,783) 403,716 - (5,808,999) Infrastructure (334,350,706) (11,817,425) - - (346,168,131) Lease assets - equipment - (79) - - (79) Subscription assets - software (359,643) (589,204) - - (948,847) Tot
al accumulated depreciation/amortization (365,085,615) (13,562,407) 403,716 - (378,244,306) Total capital assets, being depreciated/amortized, net 276,171,632 (9,263,544) (5,257) 5,022,673 271,925,504 Total governmental activities capital assets 315,805,381$ 19,977,932$ (5,257)$ -$ 335,778,056$ 43 ITEM 15
Agenda Packet Page #109

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 4: CAPITAL ASSETS (CONTINUED)

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

NOTE 5: LEASE RECEIVABLE

The City is reporting a lease receivable of $3,601,694 and deferred inflow of resources of $2,669,797 at June 30, 2025. For 2025, the City reported lease revenue of $177,478 and interest revenue of $166,509 related to lease payments received.

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

Dignity Health Lease - On February 14, 2017, the City entered into a fifteen-and-1/2-year lease agreement with the Dignity Health Medical Foundation for the lease of land to place a medical building for the operation of hospital outpatient services and other medical and ancillary uses for the residents of the City and surrounding areas. Based on this agreement, the City is receiving monthly payments through 2033 and will collect $231,933 in principal and $157,411 in interest during fiscal year 2026. There are no renewal options included in this lease agreement.

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

Capital assets, being depreciated
Infrastructure 393,675$ -$ -$ -$ 393,675$ Total capital assets, being depreciated 393,675 - - - 393,675 Less accumulated depreciation
Infrastructure (59,339) (7,873) - - (67,212) Total accumulated depreciation (59,339) (7,873) - - (67,212) Total capital assets, being depreciated, net 334,336 (7,873) - - 326,463 Total business-type activities capital assets 334,336$ (7,873)$ -$ -$ 326,463$ General government 541,884$
Public safety 622,507
Public ways and facilities 12,375,877
Culture and recreation 22,140
Total Governmental depreciation/amortization expense 13,562,408$ Solid Waste 7,873$
Total Business-Type depreciation expense 7,873$
Principal Interest
Fiscal Year Payments Payments Total Payment
2026 231,933$ 157,411 $ 389,344 $
2027 290,047 145,787 435,834
2028 352,018 131,469 483,487
2029 418,052 114,279 532,331
2030 488,366 94,030 582,396
2031-2033 1,821,278 128,098 1,949,376
Total 3,601,694$ 771,074 $ 4,372,768 $
Governmental Activities
44 ITEM 15
Agenda Packet Page #110

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 6: LONG-TERM LIABILITIES

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

*Compensated absences are reported as a net change.

On December 30, 2021, the City executed the Energy Conservation Assistance Act Loan Agreement in the amount of $396,601 to replace existing street lights with energy efficient materials and implement energy efficiency measures, including replacing the palm uplights on Sunrise Blvd in the Sunrise MarketPlace. The loan bears interest of 1%. Payments of principal and interest are due June 22 and December 22 of each year beginning December 22, 2022. The final annual payment is due December 22, 2041. The outstanding balance at June 30, 2025, is $341,675.

The annual debt services requirements at June 30, 2025, on the Streetlight Retrofit Loan are as follows:

On July 1, 2023, the City executed the SACOG Loan Agreement in the amount of $779,744 for the Arcade Creek Trail project. The loan bears no interest. Payments of principal are due July 30. The final annual payment is due July 30, 2025. The outstanding balance at June 30, 2025, is $480,219.

The annual debt services requirement at June 30, 2025, on the SACOG Loan are as follows:

Amount
Balance Balance Due Within
June 30, 2024 Additions Retirements June 30, 2025 One Year Governmental activities :

Equipment loan 72,653 $ - $ (72,653)$ - $ - $ Streetlight retrofit 361,267 - (19,592) 341,675 19,788 SACOG Loan 279,744 200,475 - 480,219 480,219 Leases payable - 10,184 - 10,184 1,975 Subscriptions payable 2,726,830 1,218,474 (437,929) 3,507,375 439,399 Claims payable 2,334,700 574,495 (828,317) 2,080,878 826,173 Compensated absences* 1,895,608 928,053 - 2,823,661 1,146,486 Total 7,670,802 $ 2,931,681 $ (1,358,491) $ 9,243,992 $ 2,914,040 $ Year Ending June 30, Principal Interest Total
2026 19,788$ 3,368$ 23,156$
2027 19,986 3,169 23,155
2028 20,593 2,563 23,156
2029 20,389 2,767 23,156
2030 20,594 2,562 23,156
2031-2035 106,100 9,678 115,778
2036-2040 111,527 4,250 115,777
2041-2042 22,698 175 22,873 Totals 341,675$ 28,532$ 370,207$
Streetlight Retrofit Loan
Year Ending June 30, Principal Total
2026 480,219$ 480,219$
Totals 480,219$ 480,219$
SACOG Loan
45 ITEM 15
Agenda Packet Page #111

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
A. Leases
The City has
entered into a lease for use of copiers. The term is 5 years. As of June 30, 2025, the total value of the lease liability was $10,184. The City is required to make annual payments of $538. Information on the lease assets as of June 30, 2025, are as follows:

B. Subscription-Based Information Technology Arrangements The City has entere
d into various subscription-based information technology agreements for the use of software as a service. The terms of these subscriptions range from 2 to 10 years. As of June 30, 2025, the total value of the subscription liability was $3,507,375. The City is required to make annual payments ranging from $3,500 to $192,161. The subscriptions were valued using the City’s incremental borrowing rate. Information on the subscription assets as of June 30, 2025, are as follows:

The future principal and interest subscription payments as of June 30, 2025, were as follow:

Value of Accumulated
Asset Class Lease Asset Amortization
Equipment 10,184$ 79$
Fiscal Year Ending Governmental Activities
June 30, Principal Payments Interest Payments
2026 1,975 $ 177$
2027 1,983 169
2028 2,028 124
2029 2,075 77
2030 2,123 30
Total 10,184$ 577$
Principal and Interest Requirements to Maturity
Value of Accumulated
Asset Class Subscription Asset Amortization
Software 4,854,164$ 948,847$
Subscriptions-in-progress 192,257 -
Total 5,046,421$ 948,847$
Fiscal Year Ending
June 30, Principal Payments Interest Payments
2026 439,399 $ 110,770 $
2027 425,641 96,837
2028 450,652 83,099
2029 459,845 68,489
2030 486,921 53,416
2031-2035 1,244,917 75,252
Total 3,507,375$ 487,863$
Principal and Interest Requirements to Maturity
Governmental Activities
46 ITEM 15
Agenda Packet Page #112

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 7: COMPENSATED ABSENCES

Compensated absences are liquidated by the fund that has recorded the liability. The governmental activities compensated absences will be liquidated primarily by the General Fund. The following is a summary of changes in the City’s compensated absences for the fiscal year ended June 30, 2025:

NOTE 8: FUND BALANCES

Nonspendable, restricted, committed and assigned fund balance consisted of the following at June 30, 2025:

Balance Balance
June 30, 2024 Net Change June 30, 2025 Current Portion
Governmental activities $1,895,608 $928,053 $2,823,661 $1,146,486 Total $1,895,608 $928,053 $2,823,661 $1,146,486
Total Total
Nonmajor Governmental
General Streets Funds Funds
Nonspendable
Notes and loans receivable 8,504$ -$ -$ 8,504$ Leases receivable 3,601,694 - - 3,601,694 Deposits 4,000 - - 4,000 Prepaid costs 167,566 - 19,299 186,865 Total nonspendable 3,781,764 - 19,299 3,801,063 Restricted
Stormwater maintenance - - 1,578,678 1,578,678 Streets, roads and park projects - - 10,022,689 10,022,689 Assessment district maintenance - - 1,658,068 1,658,068 Police activities - - 630,944 630,944 Housing projects - - 8,452,295 8,452,295 Transit program - - 1,034,502 1,034,502 Tree mitigation - - 938,831 938,831 Total restricted fund balances - - 24,316,007 24,316,007 Committed
Insurance 300,000 - - 300,000 Petty cash 2,600 - - 2,600 Revenue stabilization 4,184,378 - - 4,184,378 Total committed fund balances 4,486,978 - - 4,486,978 Assigned
Capital improvement and equipment
replacement - - 5,797,517 5,797,517 Total assigned fund balances - - 5,797,517 5,797,517 U
nassigned 32,662,707 (2,719,221) (25,609) 29,917,877 Total fund balances (deficits) 40,931,449$ (2,719,221)$ 30,107,214$ 68,319,442$ Major Funds
47 ITEM 15
Agenda Packet Page #113

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 8: FUND BALANCES (CONTINUED)

Nonspendable

• Loans and notes receivable – used to segregate that portion of fund balance to indicate that long-term loans or notes receivable do not represent available, spendable resources, even though they are components of assets. Only loans and notes not deferred are reported in this category.

• Leases receivable – used to segregate that portion of fund balance to indicate that long-term leases receivable do not represent available, spendable resources, even though they are components of assets. Only the portion of leases receivable not deferred is reported in this category.

• Prepaid items – used to indicate that prepaid amounts do not represent available, spendable resources, even though they are components of assets.

• Deposits – used to indicate that deposits receivable do not represent available, spendable resources, even though they are components of assets.

Restricted

• HOME Program Grants – represents amounts restricted for housing under the HOME program.

• CDBG Grants – represents amounts restricted for housing purposes by the Department of Housing and Urban Development.

• Code Enforcement – represents amounts restricted for the rental housing inspection program.

• Gas Tax – represents amounts restricted for street maintenance and construction by the State excise Gas Tax.

• Road Maintenance and Rehabilitation – represents amounts restricted for use by the Road Repair Accountability Act SB1.

• Stormwater Utility Tax – represents parcel tax revenue restricted for stormwater drainage activities.

• Road Maintenance – represents amounts restricted for streets and road maintenance by the Department of Transportation.

• Transit – represents transit revenues restricted for transit activities.

• Transportation Development Act – represents amounts restricted for use by the Transportation Development Act for transportation, including pedestrian and bicycle.

• Police – represents police revenues restricted to fund programs to combat drug abuse and divert gang activity.

• Police Grants – represents police grants revenues restricted for police programs and activities.

• Supplemental Law Enforcement Services (SLES) – represents supplemental law enforcement services revenues restricted for law enforcement programs and activities.

• Housing Agency – represents assets of the former redevelopment agency that are restricted for low and moderate-income housing.

• Roadway Development Fees – represents impact fees restricted for roadway development.

• Housing Mitigation Development Fees – represents impact fees restricted for housing mitigation development.

• Tree Mitigation Fees – represents impact fees restricted for tree mitigation. 48 ITEM 15
Agenda Packet Page #114

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 8: FUND BALANCES (CONTINUED)

• Park Facilities Development Fees – represents impact fees restricted for park facilities development.

• Transit Development Fees – represents impact fees restricted for transit development.

• Other Grants – represents amounts restricted for purposes defined by awarding grant agencies.

• Assessment District Funds – represents special assessments restricted to assessment district activities.

• Property Based Improvement District Funds – represents special assessments for marketing expenditures and special assessments on homeowners for lighting and landscaping and other expenses.

• Police Donations – represents donations received restricted to police K-9 and other programs.

• Measure A Construction – represents funds received from the Sacramento Transportation Authority restricted for construction, upgrade and improvement of the City’s roadways.

Committed

General Fund Reserve – used to represent that portion of fund balance committed for unexpected events that may impact the City’s ability to provide essential day-to-day services. The attached table lists specific amounts committed by the City Council. The revenue stabilization commitment amount may only be used if there is a revenue shortfall of 10% of budgeted revenues. This amount can only be changed by Council Resolution.

Assigned

The fund balances of the General Capital Improvements Fund and Community Capital Replacement Fund are assigned to various equipment and public improvement projects.

The City’s policy is to use restricted, committed, assigned and unassigned resources, in that order, when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Deficit fund balances consisted of the following:

These deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues and expenditure reductions.

NOTE 9: INTERFUND TRANSACTIONS

A. Due to and due from other funds

This balance resulted from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur. All interfund receivables are expected to be paid back within the next fiscal year.

Fund Deficit
Streets (2,719,221)$
Police Grants (12,431)
Supplemental Law Enforcement Services (284)
(2,731,936)$
Due From Other Funds Due to Other Funds Amount
General Fund Non-Major Governmental Funds 585,723$
General Fund Streets Capital Project Fund 3,152,638
Total 3,738,361$
49 ITEM 15
Agenda Packet Page #115

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 9: INTERFUND TRANSACTIONS (CONTINUED)
B. Interfund Transfers
Transfer
s are used to (1) move revenues from the fund that statute or budget requires to collect them to the funds that statute or budget requires to expend them and (2) subsidize operating losses. The majority of transfers were from city revenue funds to cover the costs of the City's capital projects.

NOTE 10: RISK MANAGEMENT
The City is a member of the Public Agency Risk Sharing Authority of California (PARSAC), for liability and workers’ compensatio
n risk coverage. The liability program includes coverage for general liability, property, bond and employment practices. PARSAC is a statewide joint powers authority providing risk sharing services to California public entities that provide a municipal service. The City pays an annual premium to PARSAC for its risk coverage and purchases commercial insurance for claims exceeding PARSAC limits.

The City’s insurance coverage for liability and workers’ compensation provided through membership in PARSAC are as follows:

PARSAC is governed by a Board of Directors and member agencies are entitled to representation on the board.

Upon termination of the joint powers authority agreements, all property of PARSAC would be returned to the respective parties that transferred the property to PARSAC and any surplus of funds and assets would be returned to the parties in proportion to actual balances of each entity. Complete financial information for PARSAC is available at 1525 Response Road, Sacramento, California 95815.

The City accrues a claims liability for probable losses under the self-insured retention amounts in the table above for the general liability and workers’ compensation programs. While the ultimate amount of losses incurred through June 30 is dependent on future developments, the estimated claims liability is based upon information from the actuarial valuation reports. The liability is based on the estimated ultimate cost of settling the claims, including the effects of inflation and other societal and economic factors, and includes an estimate for incurred but not reported claims. There are no claims that exceed insurance coverage and no significant changes or reductions in insurance coverage over the last three fiscal years. Costs relating to the litigation of claims are charged to expenditures as incurred. Claims are generally liquidated by the General Fund. At June 30, 2025 and 2024, fund balance of $300,000 has been committed for self-insured general liability claims.

Transfer Out Transfer In Amount
General Fund Non-Major Governmental Funds 1,782,794$
General Fund Streets Capital Project Fund 3,607,575
Streets Capital Project Fund Non-Major Governmental Funds 47,978 Non-Major Governmental Funds Streets Capital Project Fund 7,759,897 Total 13,198,244$
Coverage Provider Payment Source
0$ - $ 100,000 Self-insured retention City funds
100,001 - 1,000,000 Public Agency Risk Sharing Authority of California Shared risk pool 1,000,001 - 50,000,000 CSAC - Excess Insurance Authority Shared risk pool 50,000,001 - statutory limits Excess insurance (purchased with CSAC-EIA) 0$ - $ 100,000 Self-Insured retention City funds
100,001 - 500,000 Public Agency Risk Sharing Authority of California Shared risk pool 500,001 - 5,000,000 Local Agency Worker's Compensation Excess Pool Shared risk pool 5,000,001 - 50,000,000 Commercial reinsurance (purchased with CSAC-EIA ) 50,000,001 - statutory limits Excess insurance (purchased with CSAC-EIA) Worker's Compensation Claims
Amount
General Liability Claims
50 ITEM 15
Agenda Packet Page #116

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 10: RISK MANAGEMENT (CONTINUED)

Changes in the liability and workers’ compensation claims payable amounts during the year ended June 30, 2025, were as follows:

NOTE 11: PENSION PLANS

A. General Information about the Defined Benefit Pension Plan

Plan Description

All qualified permanent and probationary employees are eligible to participate in the City’s Cost-Sharing Multiple Employer Defined Benefit Pension Plan (the Plan or PERFC) administered by the California Public Employees’ Retirement System (CalPERS). PERFC consists of a miscellaneous risk pool and a safety risk pool, which are comprised of the following rate plans:

• Miscellaneous Plan
• Miscellaneous Second Tier Plan
• PEPRA Miscellaneous Plan
• Safety Plan
• Safety Second Tier Plan
• PEPRA Safety Police Plan

Although one Plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately below where available. 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 plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (52 for PEPRA Miscellaneous Plan) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the 1959 Survivor Benefit level 4, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

Claims and
Balance Changes in Balance Due within
June 30, 2024 Estimates Claims Paid June 30, 2025 one year General Liability 1,013,572$ -$ (263,488)$ 1,013,572$ 330,318$ Workers' Compensation 1,321,128 574,495 (564,829) 1,321,128 495,855 Total 2,334,700$ 574,495$ (828,317)$ 2,080,878$ 826,173$ 51 ITEM 15
Agenda Packet Page #117

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)
The rate plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

All rate plans except the PEPRA plans are closed to new members that are not already CalPERS participants. All miscellaneous rate plans are combined and reported below as the Miscellaneous Risk Pool and all safety rate plans are combined and reported below as the Safety Risk Pool.

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

Miscellaneous PEPRA
Miscellaneous Second Tier Rate Miscellaneous
Rate Plan Plan Rate Plan
Hire Date Prior to August 13, 2011 to On or after
August 13, 2011 December 31, 2012 January 1, 2013
Benefit Formula 2.7% @ 55 2.0% @ 55 2.0% @ 62
Benefit v esting schedule 5 years serv ice 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 2.0% to 2.7% 1.426% to 2.418% 1.0% to 2.5% Required employee contribution
rates 8.00% 7.00% 7.75%
Required employer contribution
rates 16.02% 11.88% 7.78%
Required UAL payment 996,128.00$ 12,876.00 $ 11,152.00 $ Safety Second Tier PEPRA Safety
Safety Rate Plan Rate Plan Rate Plan
Hire Date Prior to August 13, 2011 to On or after
August 13, 2011 December 31, 2012 January 1, 2013
Benefit Formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit v esting schedule 5 years serv ice 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of
eligible compensation 3.00% 2.40% to 3.00% 2.00% to 2.70% Required employee contribution
rates 8.99% 9.00% 13.75%
Required employer contribution
rates 21.11% 20.59% 13.54%
Required UAL payment $699,098 $28,635 $546
*Plan is closed to new entrants.
52 ITEM 15
Agenda Packet Page #118

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)

For the year ended June 30, 2025, the contributions recognized as a reduction of the net pension liability for each risk pool were as follows:

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources

As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of each risk pool as follows:

The City’s net pension liability for each risk pool is measured as the proportionate share of the net pension liability.

The net pension liability of each risk pool is measured as of June 30, 2024, and the total pension liability for each risk pool 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 risk pool relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each risk pool as of June 30, 2024 and 2025 for the measurement date as of the previous year-end were as follows:

Miscellaneous
Risk Pool Safety Risk Pool Total
Contributions - Employer 1,819,237$ 2,292,567 $ 4,111,804 $ Proportionate
Share of Net
Pension Liability
Miscellaneous Risk Pool 13,336,227 $
Safety Risk Pool 13,501,384
Total Net Pension Liability 26,837,611 $
Financial Statement Classification:

Gov ernmental Activ ities 26,128,390$
Business-type Activities 709,221
Total Net Pension Liability 26,837,611$
Miscellaneous Safety
Measurement Date Risk Pool Risk Pool Total
Proportion - June 30, 2023 0.10778% 0.12989% 0.23767%
Proportion - June 30, 2024 0.27574% 0.18518% 0.46092%
Change -0.16796% -0.05529% -0.22325%
53 ITEM 15
Agenda Packet Page #119

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)
For the year ended June 30, 2025, the City recognized pension expense of $4,680,212 for both risk pools combined.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to each risk pool and combined from the following sources:

The $4,680,213 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 next fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the risk pools will be recognized as pension expense as follows:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Pension Contributions Subsequent to measurement date 2,069,207$ -$ 2,611,006$ -$ 4,680,213 $ -$ Differences between actual and expected experience 1,153,039 (44,991) 1,101,833 (35,825) 2,254,872 (80,816) Changes in assumptions 342,769 - 332,646 - 675,415 - Differences between the employer's contributions
and the employer's proportionate share of contributions 767,750 (425,744) 652,595 (543,799) 1,420,345 (969,543) Change in employer's proportion 596,587 - 1,181,181 - 1,777,768 - Total 4,929,352$ (470,735)$ 5,879,261$ (579,624)$ 10,808,613$ (1,050,359)$ Miscellaneous Risk Pool Safety Risk Pool Total
Year Ended Miscellaneous Safety
June 30 Risk Pool Risk Pool Total
2026 896,367$ 1,193,531$ 2,089,898$ 2027 1,730,053 1,662,701 3,392,754
2028 26,089 55,687 81,776
2029 (263,099) (223,288) (486,387)
Total 2,389,410$ 2,688,631$ 5,078,041$ 54 ITEM 15
Agenda Packet Page #120

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)

Actuarial Assumptions

The total pension liabilities in the June 30, 2024, actuarial valuations for each risk pool was determined using the following actuarial assumptions:

All other actuarial assumptions used in the June 30, 2023, valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate

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

Long-term Expected Rate of Return

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Amortization Method Level Percent of Payroll
Asset Valuation Method Market Value
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table Derived using CalPERS Membership
Data for all funds
Post Retirement Benefit
Increase
Contract COLA up to 2.30% until
Purchasing Power Protection Allowance
Floor on Purchasing Power applies
(1)
The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the December 2021 experience study report that can be found on the CalPERS website.
55 ITEM 15
Agenda Packet Page #121

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)
two cost-sharing plans or PERF A, B, and C funds), 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 PERF C fund. The expected rate of return was set by calculating the rounded 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 equal 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 followed:

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

Pension Plan Fiduciary Net Position

Detailed information about each risk pool’s fiduciary net position is available in the separately issued CalPERS financial reports.

Assumed
Asset
Asset Class Allocation Real Return
1, 2
Global equity-cap-weighted 30.00% 4.54%
Global equity-non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
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) (0.01)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study Miscellaneous Safety
Risk Pool Risk Pool Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability 22,326,104$ 24,484,926 $ 46,811,030$ Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability 13,336,227$ 13,501,384$ 26,837,611$ 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability 5,936,235$ 4,518,391$ 10,454,626$ 56 ITEM 15
Agenda Packet Page #122

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 11: PENSION PLANS (CONTINUED)

Defined Contribution Plan

On June 22, 2017, the City Council approved an Internal Revenue Code (IRC) Section 401(a) retirement plan in the form of a Governmental Money Purchase Plan & Trust (the 401(a) Plan), which is a single employer defined contribution retirement plan. Eligible employees include the City’s full-time executive management directors, who may participate at their employment date. The 401(a) Plan is administered by the ICMA Retirement Corporation and assets are invested in an IRC qualifying trust fund with VantageTrust, which holds assets for the benefit of participants.

Benefit terms, including contribution requirements, for the 401(a) Plan are established and may be amended by the City Council. For each employee in the 401(a) Plan, the City is required to contribute a match 5% of the employee’s annual salary to an individual employee account. Employees are mandated to contribute a minimum of 5% and up to 20% of their salary to the 401(a) Plan, subject to IRC contribution limits. Employees vest immediately in their own contributions and City contributions, as well as earnings on those contributions.

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS PLAN

Plan Description

The City’s defined benefit other post-employment healthcare benefit plan, the City of Citrus Heights Retiree Healthcare Plan (the Plan), is an agent multiple-employer defined benefit plan administered by CalPERS. The Plan provides access to lifetime healthcare benefits to eligible retirees and their dependents. Employees are eligible to participate in the Plan if they retire directly from the City under CalPERS at age 50 or above and with five years of CalPERS service (there is no minimum service requirement if retirement is due to a service-connected disability).

The City does not provide dental, vision, life, or Medicare Part B reimbursement to retirees. The City Council has the authority under the California Government Code and City Municipal Code to establish and amend the benefit provisions of the Plan subject to collective bargaining arrangements. The City participates in the California Employers’ Retiree Benefit Trust (CERBT) Fund, which is administered by CalPERS. The CERBT is a tax-qualified irrevocable trust organized under Internal Revenue Code Section 115 to administer retiree healthcare benefits and collectively invest plan assets of all trust members. The CERBT issues publicly available financial statements that can be obtained from the CalPERS website at www.calpers.ca.gov. The City’s Plan does not issue separate financial statements.

Benefits Provided

The City provides retiree medical benefits through the California Public Employees’ Medical and Hospital Care Act (PEMHCA). The City pays the PEMHCA minimum contribution for active employees. For eligible retirees, the City contributes not less than 5% of the active employee contribution, multiplied by the number of years the City has participated in PEMHCA (the City joined PEMHCA in 1998). The City’s active employee contributions were $157 and $158 per month and retiree contributions were $157 and $158 per month for the years ended June 30, 2024 and 2025, respectively. In May 2014, the Actuarial Standards Board released revisions to ASOP 6 requiring that the implied subsidy for claims in excess of premiums be valued for community rated plans such as PEMHCA.

Employees Covered by Benefit Terms

At the June 30, 2024, measurement date, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefit payments 19 Inactive employees entitled to but not yet receiving benefit payments 80 Active members 202
Total 301
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED) Contributions
The City Council has the authority to establish and amend the contribution requirements of the City and employees, subject to the City’s Memorandum of Understanding with employee bargaining units. The City currently funds Plan benefits through the CERBT by contributing at least 100% of the actuarially determined contribution based on the active employee contributions described above when a liability exists. When a net OPEB asset exists, the City evaluates whether a contribution to the CERBT is necessary. During the measurement period, the City contributed $0 to the CERBT, which were recognized as reductions to the City’s net OPEB liability.

Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.

Actuarial Assumptions
The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Pre-retirement mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December 2017 and post-retirement mortality information was derived from the 2007 to 2015 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Actuarial assumptions:

Discount rate 6.00%
Inflation 2.50%
Salary Increases 2.80%, aggregate
Healthcare cost trend rates Based on 2021 Getzen model that reflects actual premium increases through 2023. Trend rates assume
that deductibles and out-of-pocket maximums will be
increased periodically as trends increase over time.
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Discount Rate

The discount rate used to measure the total OPEB liability/(asset) was 6.00% which was a decrease from the 6.75% discount rate used in the previous valuation. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability/(asset).

Plan Fiduciary Net Net OPEB
Total OPEB Liability Position Liability/(Asset)
Balance at June 30, 2024
(6/30/2023 Measurement Date) 3,225,419 $ 3,595,335 $ (369,916) $ Changes in the year:

Service Cost 242,276 - 242,276 Interest 204,263 - 204,263 Actual vs. expected experience 389,026 - 389,026 Assumption changes - - - Contributions - employer - 250,000 (250,000) Investment income - 394,442 (394,442) Administrative expenses - (1,173) 1,173 Benefit payments (128,510) - (128,510) Net changes 707,055 643,269 63,786 Balance at June 30, 2025
6/30/2024 Measurement Date) 3,932,474 $ 4,238,604 $ (306,130) $ Financial Statement Classification:

Governmental Activities (302,404)$
siness-Type Activities (3,726)
(306,130)$
Increase (Decrease)
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate:

Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:

OPEB Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CERBT financial report at www.calpers.ca.gov.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2025, the City recognized OPEB expense of $196,248. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources from the following sources:

Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
(4.5%/4.5% (5.5%/5.5% (6.5%/6.5%
decreasing to 3%) decreasing to 4%) decreasing to 5%)
Net OPEB liability (843,516) $ (306,130)$ 359,299$ Current
1% Decrease Discount Rate 1% Increase

5.00% 6.00% 7.00%
Net OPEB liability 187,454 $ (306,130)$ (722,532)$ Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date 118,502 $ -$
Changes of assumptions 235,308 (101,448)
Differences between expected and
actual experience 40,136 -
Net difference between projected
and actual earnings on OPEB
plan investments 381,041 (1,041,323)
Total 774,987$ (1,142,771)$
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)

The $118,502 reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the following fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in OPEB expense as follows:

NOTE 13: COMMITMENTS AND CONTINGENCIES

The City is a party to claims and lawsuits arising in the ordinary course of business. The City’s management and legal counsel are of the opinion that the ultimate liability, if any, arising from these claims will not have material adverse impact on the financial position of the City.

The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

In 2011, the City purchased fifteen parcels in foreclosure along Sayonara Drive and demolished the buildings.

Because affordable housing was demolished, a statutory requirement exists under the State of California Health & Safety Code, Redevelopment Law, Chapter 4, Article 9, Section 33413 to replace the affordable housing. The City must replace either 35 units or 70 bedrooms of affordable housing. The replacement requirement may be satisfied within or outside of the former redevelopment project area. The City is currently pursuing alternatives for replacement of the affordable housing. Options being considered include selling the property for fair market value and selling the property with an affordable housing requirement attached to the property. The parcels are reported as land held for resale in the Housing Agency Special Revenue Fund.

Contractual Commitments – The City had the following significant unexpended contractual commitments as of June 30, 2025 in the amount of $18,669,538.

NOTE 14: SUBSEQUENT EVENTS

The City evaluated subsequent events for recognition and disclosure through January 29, 2026, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.

Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2026 (73,118)$
2027 37,858
2028 (108,766)
2029 (107,086)
2030 (72,812)
Thereafter (162,362)
(486,286)$
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7+,63$*(,17(17,21$//</()7%/$1.
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REQUIRED SUPPLEMENTARY INFORMATION
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7+,63$*(,17(17,21$//</()7%/$1.
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 27,074,946$ 27,074,946 $ 26,503,561 $ (571,385)$ Licenses and permits 1,692,446 1,692,446 2,628,955 936,509 Intergovernmental 12,048,453 12,048,453 16,247,609 4,199,156 Charges for services 2,003,778 2,003,778 2,528,098 524,320 Use of money and property 913,123 913,123 2,938,366 2,025,243 Fines and forfeitures 829,586 829,586 1,231,166 401,580 Contributions 5,000 5,000 27,420 22,420
Miscellaneous 19,802 19,802 476,485 456,683
Total revenues 44,587,134 44,587,134 52,581,660 7,994,526

EXPENDITURES
Current:

General government 10,654,090 13,124,910 10,056,614 3,068,296 Public safety 23,457,902 26,025,023 24,415,982 1,609,041 Community enhancements 3,897,895 1,713,093 1,832,046 (118,953) Economic development 1,014,126 1,082,209 1,039,437 42,772 Culture and recreation 1,062,729 1,117,067 1,056,889 60,178 Public ways and facilities - 1,423,233 1,900,024 (476,791) Capital outlay - 1,364,197 2,061,413 (697,216)
Debt service:

Principal 80,800 80,800 72,653 8,147
Interest and fiscal charges - - 101,316 (101,316)
Total expenditures 40,167,542 45,930,532 42,536,374 3,394,158 Excess (deficiency) of revenues
over (under) expenditures 4,419,592 (1,343,398) 10,045,286 11,388,684

OTHER FINANCING SOURCES (USES)
Transfers out (1,110,000) (1,110,000) (5,390,369) (4,280,369) Debt issuance proceeds - - 1,228,658 1,228,658
Total other financing sources (uses) (1,110,000) (1,110,000) (4,161,711) (3,051,711) Net change in fund balances 3,309,592$ (2,453,398)$ 5,883,575 8,336,973$ Fund balances (deficit)-beginning 35,047,874
Fund balances (deficit)-ending 40,931,449$
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedules of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years
Proportionate Share
Proportion of the Proportionate of the Net Pension
Reporting Date 1 Net Pension Share of Net Liability as a % of as of June 30, Liability Pension Liability Covered Payroll Covered Payroll 2025 0.27574% 13,336,227$ 9,864,129$ 135.2% 2024 0.25745% 13,445,554 9,095,795 147.8% 2023 0.10778% 12,046,873 8,443,872 142.7% 2022 0.07394% 3,998,659 8,285,854 48.3% 2021 0.08832% 9,609,910 8,169,066 117.6% 2020 0.08366% 8,572,628 8,715,322 98.4% 2019 0.07897% 7,610,202 8,319,602 91.5% 2018 0.07939% 7,873,259 7,889,233 99.8% 2017 0.07496% 6,486,625 8,017,935 80.9% 2016 0.07230% 4,962,609 8,102,528 61.2% 2025 0.18518% 13,501,384$ 9,106,958$ 148.3% 2024 0.17038% 13,834,738 8,286,907 166.9% 2023 0.12989% 11,707,786 7,725,344 151.6% 2022 0.04075% 2,203,680 7,104,170 31.0% 2021 0.08190% 8,910,669 7,542,123 118.1% 2020 0.07275% 7,454,716 8,420,924 88.5% 2019 0.06658% 6,415,392 7,715,475 83.1% 2018 0.06404% 6,351,188 8,354,763 76.0% 2017 0.05852% 5,064,060 8,247,151 61.4% 2016 0.05364% 3,681,807 7,921,496 46.5% Notes to Schedule of Proportionate Share of the Net Pension Liability:
1 The proportions and proportionate share of the net pens ion liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.

Miscellaneous Plan
Safety Plan
Benefit Changes : None
Changes of Assumptions : None
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contrib utions (Excess) Payroll Payroll 2025 2,059,653$ 2,069,207$ (9,554)$ 10,483,804$ 19.7% 2024 1,819,237 1,819,237 - 9,864,129 18.4% 2023 1,761,543 1,761,543 - 9,095,795 19.4% 2022 1,582,843 1,582,843 - 8,443,872 18.7% 2021 1,524,519 1,524,519 - 8,285,854 18.4% 2020 1,419,774 1,419,774 - 8,169,066 17.4% 2019 1,259,805 1,259,805 - 8,715,322 14.5% 2018 1,127,777 1,127,777 - 8,319,602 13.6% 2017 1,109,977 1,109,977 - 7,889,233 14.1% 2016 1,052,606 1,052,606 - 8,017,935 13.1% 2025 2,698,575$ 2,611,006$ 87,569$ 9,723,055$ 26.9% 2024 2,292,567 2,292,567 - 9,106,958 25.2% 2023 2,147,365 2,147,365 - 8,286,907 25.9% 2022 1,965,298 1,965,298 - 7,725,344 25.4% 2021 1,958,149 1,958,149 - 7,104,170 27.6% 2020 1,782,277 1,782,277 - 7,542,123 23.6% 2019 1,743,186 1,743,186 - 8,420,924 20.7% 2018 1,675,225 1,675,225 - 7,715,475 21.7% 2017 1,605,543 1,605,543 - 8,354,763 19.2% 2016 1,460,317 1,460,317 - 8,247,151 17.7% 2025 213,552$ 118,502$ 95,050$ 20,206,859$ 0.6% 2024 312,623 378,510 (65,887) 15,425,165 2.5% 2023 236,900 365,618 (128,718) 16,197,230 2.3% 2022 255,000 352,003 (97,003) 16,163,096 2.2% 2021 248,000 68,364 179,636 19,538,878 0.3% 2020 296,000 296,000 - 19,487,524 1.5% 2019 288,000 288,000 - 19,084,505 1.5% 2018 378,000 378,000 - 18,764,996 2.0% Agent, Multiple Employer OPEB Plan2
Miscellaneous Cost-Sharing, Multiple-Employer Pension Plan Safety Cost-Sharing, Multiple-Employer Pension Plan
1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021

TOTAL OPEB LIABILITY
Service cost 242,276$ 202,788$ 179,883$ 245,140$ Interest on total pension liability 204,263 245,726 231,076 215,907 Changes of assumptions - 7,274 327,698 (101,261) Difference between expected and actual experience 389,026 (1,057,712) 26,784 16,101 Benefit payments, including refunds of employee
contributions (128,510) (128,718) (104,003) (68,364) Net change in total OPEB liability 707,055 (730,642) 661,438 307,523 Total OPEB liability-beginning 3,225,419 3,956,061 3,294,623 2,987,100 Total OPEB liability-ending (a) 3,932,474 3,225,419 3,956,061 3,294,623

PLAN FIDUCIARY NET POSITION
Contributions-employer 250,000 365,618 352,003 68,364 Net investment income 394,442 204,752 (495,223) 734,994 Benefit payments, including refunds of employee
contributions - (128,718) (104,003) (68,364)
Administrative expense (1,173) (917) (893) (1,011) Net change in fiduciary net position 643,269 440,735 (248,116) 733,983 Plan fiduciary net position-beginning 3,595,335 3,154,600 3,402,716 2,668,733 Plan fiduciary net position-ending (b) 4,238,604 3,595,335 3,154,600 3,402,716 Net OPEB liability/(asset) (a) - (b) (306,130)$ (369,916)$ 801,461$ (108,093)$ Plan fiduciary net position as a percentage of the
total OPEB liability 107.8% 111.5% 79.7% 103.3%
Covered-employee payroll 15,425,165$ 16,197,230 $ 16,163,096 $ 19,538,878$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll -2.0% -2.3% 5.0% -0.6%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.

Benefit Changes: None
Changes of Assumptions: None
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2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
217,915$ 217,491 $ 211,156$ 205,006$ 192,196 195,735 171,850 149,338 (29,367) (43,330) - - - (380,831) - - (46,180) (37,626) (33,358) (20,597) 334,564 (48,561) 349,648 333,747 2,652,536 2,701,097 2,351,449 2,017,702 2,987,100 2,652,536 2,701,097 2,351,449 - 288,000 378,000 373,000 92,830 140,138 143,701 159,817 (46,180) (37,626) (33,358) (20,597) (1,282) (479) (3,288) (837) 45,368 390,033 485,055 511,383 2,623,365 2,233,332 1,748,277 1,236,894 2,668,733 2,623,365 2,233,332 1,748,277 318,367$ 29,171 $ 467,765 $ 603,172 $

89.3% 98.9% 82.7% 74.3%
19,487,524$ 19,084,505 $ 18,764,996 $ 18,696,235$

1.6% 0.2% 2.5% 3.2%
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
Budgetary Accoun
ting
The City Council establishes budgets for the General Fund, as well as all Special Revenue Funds and Capital Projects Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

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

For the fiscal year ending June 30, 2025, the following funds had no adopted annual budgets:

Housing Agency
Roadway Development Fees
Transit Development Fees
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COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 71 ITEM 15
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GOVERNMENTAL FUNDS
The following funds are reported in total on the Governmental Fund Financial Statements under the column Other Governmental Funds.

SPECIAL REVENUE FUNDS
HOME Program Grants – Accounts for HOME Program Grant funds used for low income housing activities.

CDBG Grants – Accounts for revenues and expenditures for CDBG grants and programs.

Code Enforcement – Accounts for funds to be used on Code Enforcement for neighborhood enhancement activities.

Gas Tax – Accounts for State gas tax revenues used for street maintenance and construction.

Road Maintenance and Rehabilitation – Accounts for revenue and expenditures on deferred maintenance on local streets and road systems with State funds provided by the Road Repair and Accountability Act SB1.

Stormwater Utility Tax – Accounts for revenues and expenditures associated with the administration and coordination of stormwater drainage activities as supported by a parcel tax.

Road Maintenance – Accounts for sales tax revenue collected in accordance with a voter approved special tax to be used for repairs and maintenance of streets.

Transit – Accounts for Transportation Development Act revenues restricted for the City’s transportation needs.

Transportation Development Act – Accounts for Transportation Development Act monies received for road and sidewalk improvement purposes and transit related activities.

Police – Accounts for police revenues received that are restricted to fund programs designed to combat drug abuse and divert gang activity.

Police Grants – Accounts for police grants received that are restricted to fund specific police programs, including sobriety checkpoints, methamphetamine enforcement, stolen vehicles, children exposed to domestic violence and other programs.

Supplemental Law Enforcement Services (SLES) – Accounts for revenues and expenditures associated with State funds provided as a match for the COPS Universal Hiring Grant.

Housing Agency – Accounts for the housing assets of the former redevelopment agency that are used for low and moderate income housing activities.

Roadway Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Housing Mitigation Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Tree Mitigation Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.
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SPECIAL REVENUE FUNDS (CONTINUED)

Park Facilities Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Transit Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Other Grants – Accounts for revenues and expenditures for miscellaneous state grants and programs.

Assessment Districts: Accounts for special assessments collected for the assessment districts below within the City limits for which the City is obligated to maintain. The Lighting Assessment District accounts for special assessments used for street lighting purposes. The remaining assessment districts were organized under the Landscaping and Lighting Act of 1972 to account for special assessment used for street corridor landscape, open space maintenance and sound wall maintenance expenses.

• Assessment District 98-02 Zone 3
• Assessment District Zone 1
• Assessment District Zone 2
• Assessment District Zone 3
• Assessment District Zone 4
• Assessment District 98-01
• Assessment District 98-02
• Assessment District 03-01
• Assessment District 98-02, Zone 2
• Assessment District 03-01, Zone 2
• Lighting Assessment District
• Assessment District 03-01, Zone 3
• Assessment District 98-02 Fund

Police Donations – Accounts for donations received for K-9 and other police activities and programs.

Fire CFD Impact Fee Fund – Accounts for revenues and expenditures related to the Fire CFD impact fee.

SB1186 Access Comp Fund – Accounts for revenues and expenditures related to SB1186 access fee.

Multimodal Impact Fee Fund – Accounts for revenues and expenditures related to the multimodal impact fee.

CAPITAL PROJECT FUNDS

Measure A Construction – Accounts for Measure A revenues received from the Sacramento Transportation Authority that are restricted for expenditures associated with specific purposes, including construction, upgrade and improvements of the City’s roadways.

General Capital Improvements – Accounts for funds collected and expended for the construction or purchase of public facilities and projects.

Community Capital Replacement – Accounts for funds expended on various capital improvement and replacement projects, including vehicle replacement.

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CITY OF CITRUS HEIGHTS, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments 1,653,822$ 116,558 $ 615,667 $ 2,644,419$ Receivables (net of allowance for uncollectible):

Accounts - - 1,090,482 -
Interest 3,116 424 1,821 8,177
Due from other governments - 126,779 4,658 214,413
Notes and loans - 202,965 - -
Prepaid costs - - 1,350 -
Land held for resale - - - -
Total assets 1,656,938 446,726 1,713,978 2,867,009

LIABILITIES
Accounts payable 252,517$ 60,711 $ 16,536 $ 168,630$ Accrued liabilities - - 2,725 1,667
Unearned revenues 208,149 - - -
Other Payables - - - -
Due to other governments - 3,379 - 14,077
Due to other funds - - - -
Total liabilities 460,666 64,090 19,261 184,374

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 1,079,922 -
Total deferred inflows of resources - - 1,079,922 -

FUND BALANCES (DEFICITS)
Nonspendable - - 1,350 -
Restricted 1,196,272 382,636 613,445 2,682,635 Assigned - - - -
Unassigned - - - -
Total fund balances (deficits) 1,196,272 382,636 614,795 2,682,635 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 1,656,938$ 446,726$ 1,713,978$ 2,867,009$ HOME
Program
Grants
CDBG Grants
Special
Revenue Fund
Code
Enforcement Gas Tax
Special Revenue Funds
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CITY OF CITRUS HEIGHTS, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
4,232,837$ 1,524,516 $ 1,977,823 $ 462,430$ - - - - 16,256 11,306 7,917 1,327 421,842 274,887 226,750 - - - - - - - 3,500 - - - - - 4,670,935 1,810,709 2,215,990 463,757 -$ 198,738$ 570,577 $ 3,865$ - 1,530 1,166 521 - - - - - - - - - 31,763 482,748 35,014 - - - - - 232,031 1,054,491 39,400 - - - - - - - - - - 3,500 - 4,670,935 1,578,678 1,157,999 424,357 - - - - - - - - 4,670,935 1,578,678 1,161,499 424,357 4,670,935$ 1,810,709 $ 2,215,990 $ 463,757 $ Road
Maintenance
and
Rehabilitation
Stormwater
Utility Tax
Road
Maintenance Transit
Special Revenue Funds
75 ITEM 15
Agenda Packet Page #141

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
-$ 2,692,794$ - $ 436,486$
- - - -
83 6,779 - 1,144
416,299 1,089 489,616 -
- - - -
- 780 12,894 -
- - - -
416,382 2,701,442 502,510 437,630 -$ 361$ 19,950$ 28,339$
- - 615 -
- 440,060 29,986 409,575
- - - -
- - - -
121,333 - 464,390 -
121,333 440,421 514,941 437,914 7,800 - - -
7,800 - - -
- 780 12,894 -
287,249 2,260,241 - -
- - - -
- - (25,325) (284)
287,249 2,261,021 (12,431) (284) 416,382$ 2,701,442 $ 502,510 $ 437,630 $ Police Police Grants
Supplemental
Law
Enforcement
Services
(SLES)
Transportation
Development
Act
Special Revenue Funds
76 ITEM 15
Agenda Packet Page #142

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
168,951$ 366,271 $ 422,876 $ 992,119$ - - - - - - 1,103 2,601 - - - - 1,199,999 - - - - - - - 2,784,600 - - - 4,153,550 366,271 423,979 994,720 -$ - $ - $ 55,889$ - - - - - - - - - - - - - - - - - - - - - - - 55,889 - - - - - - - - - - - - 4,153,550 366,271 423,979 938,831 - - - - - - - - 4,153,550 366,271 423,979 938,831 4,153,550$ 366,271 $ 423,979 $ 994,720 $ Housing
Agency
Roadway
Development
Fees
Housing
Mitigation
Development
Fees
Tree
Mitigation Fes
Special Revenue Funds
77 ITEM 15
Agenda Packet Page #143

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
169,565$ 207,543 $ 174,896 $ 41,191$ - - - - 432 - - 105 - - 567,818 66 - - - - - - 775 - - - - - 169,997 207,543 743,489 41,362 -$ - $ 572,282$ 618$ - - - - - - 169,856 - - - - - - - - 16 - - - - - - 742,138 634 - - - - - - - - - - 775 - 169,997 207,543 576 40,728 - - - - - - - - 169,997 207,543 1,351 40,728 169,997$ 207,543 $ 743,489 $ 41,362 $ Assessment
District 98-02
Zone 3
Park Facilities
Development
Fees
Transit
Development
Fees Other Grants
Special Revenue Funds
78 ITEM 15
Agenda Packet Page #144

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
47,833$ 38,284 $ 1,210 $ 2,451$ - - - - 125 102 - - 252 231 75 46 - - - - - - - - - - - - 48,210 38,617 1,285 2,497 4,974$ 15,681 $ 886 $ 1,143$ - - - - - - - - - - - - - - 399 1,354 - - - - 4,974 15,681 1,285 2,497 - - - - - - - - - - - - 43,236 22,936 - - - - - - - - - - 43,236 22,936 - - 48,210$ 38,617 $ 1,285 $ 2,497 $ Assessment
District Zone 1
Assessment
District Zone 4
Special Revenue Funds
Assessment
District Zone 2
Assessment
District Zone 3
79 ITEM 15
Agenda Packet Page #145

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
140,062$ 59,164 $ 840,355 $ 45,552$ - - - -
367 156 2,200 117
62 674 515 288
- - - -
- - - -
- - - -
140,491 59,994 843,070 45,957 1,474$ 2,199 $ 2,324 $ 1,011$ - - - -
- - - -
- - - -
390 - 176 625
- - - -
1,864 2,199 2,500 1,636
- - - -
- - - -
- - - -
138,627 57,795 840,570 44,321 - - - -
- - - -
138,627 57,795 840,570 44,321 140,491$ 59,994 $ 843,070 $ 45,957 $ Assessment
District 03-01
Assessment
District 98-01
Assessment
District 98-02
Assessment
District 98-02
Zone 2
Special Revenue Funds
80 ITEM 15
Agenda Packet Page #146

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
55,972$ 53,857 $ 17,668 $ 377,809$ - - - - 134 - - 952 945 5,926 - 484 - - - - - - - - - - - - 57,051 59,783 17,668 379,245 3,809$ 39,025 $ 169 $ 273$ - - - - - - - - - - - - 220 20,758 - - - - - - 4,029 59,783 169 273 - - - - - - - - - - - - 53,022 - 17,499 378,972 - - - - - - - - 53,022 - 17,499 378,972 57,051$ 59,783 $ 17,668 $ 379,245 $ Assessment
District 03-01
Zone 2
Special Revenue Funds
Lighting
Assessment
District
Police
Donations
Assessment
District 03-01
Zone 3
81 ITEM 15
Agenda Packet Page #147

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
1,582$ 36,694 $ 113,338 $ 26,336$ - 4 - - - 90 2,015 65 - 6,633 - 40 - - - - - - - - - - - - 1,582 43,421 115,353 26,441 1,582$ 7,804 $ - $ 205$ - - - - - - - - - - - - - - - - - - - - 1,582 7,804 - 205 - - - - - - - - - - - - - 35,617 115,353 26,236 - - - - - - - - - 35,617 115,353 26,236 1,582$ 43,421 $ 115,353 $ 26,441 $ Assessment
District 98-02
Fund
SB 1186
Access Comp
Fund
Multimodal
Impact Fee
Fund
Special Revenue Funds
Fire CFD
Impact Fee
Fund
82 ITEM 15
Agenda Packet Page #148

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

Accounts
Interest
Due from other governments
Notes and loans
Prepaid costs
Land held for resale
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Other Payables
Due to other governments
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
935,198$ 755,482 $ 2,015,984 $ 24,465,595$ - 4 - 1,090,490 3,283 - - 72,197 56,150 - - 2,816,538 - - - 1,402,964 - - - 19,299 - 3,440,097 - 6,224,697 994,631 4,195,583 2,015,984 36,091,780 8,730$ - $ 400,217$ 2,440,519$ - - - 8,224 - - - 1,257,626 - - 13,833 13,833 - - - 590,919 - - - 585,723 8,730 - 414,050 4,896,844 - - - 1,087,722 - - - 1,087,722 - - - 19,299 985,901 - - 24,316,007 - 4,195,583 1,601,934 5,797,517 - - - (25,609) 985,901 4,195,583 1,601,934 30,107,214 994,631$ 4,195,583 $ 2,015,984 $ 36,091,780 $ General
Capital
Improvements
Community
Capital
Replacement
Measure A
Construction
Capital Projects Funds
83 ITEM 15
Agenda Packet Page #149

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

REVENUES
Taxes -$ -$ -$ -$
Licenses and permits - - - -
Intergovernmental 766,194 750,123 - 2,479,715 Charges for services - - 824,293 -
Use of money and property 46,790 810 23,298 128,116 Contributions - - - -
Miscellaneous - 92,221 - -
Total revenues 812,984 843,154 847,591 2,607,831

EXPENDITURES
Current:

General government - - - -
Public safety - - 906,869 -
Community enhancements 766,193 261,561 - - Culture and recreation - - - -
Public ways and facilities - - - 2,078,193
Capital outlay - - - 82,237
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 766,193 261,561 906,869 2,160,430 Excess (deficiency) of revenues
over (under) expenditures 46,791 581,593 (59,278) 447,401

OTHER FINANCING SOURCES (USES)
Transfers in - 2,198 - -
Transfers out - (392,444) - (327,213)
Proceeds from sale of capital asset - - - -
Total other financing sources (uses) - (390,246) - (327,213) Net change in fund balances 46,791 191,347 (59,278) 120,188 Fund balances (deficit)-beginning 1,149,481 191,289 674,073 2,562,447 Fund balances (deficit)-ending 1,196,272$ 382,636$ 614,795$ 2,682,635$ Special Revenue Funds
HOME
Program
Grants
CDBG Grants
Special
Revenue Fund
Code
Enforcement Gas Tax
84 ITEM 15
Agenda Packet Page #150

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ 10,145$ - $ -$ - - - - 2,393,827 - 2,681,502 - - 4,305,847 - 389,253 236,037 179,716 132,340 23,573 - - - - - - - - 2,629,864 4,495,708 2,813,842 412,826 - - - - - - - - - - - - - - - - 10,853 3,865,351 3,567,972 310,051 - 35,600 - - - - - - - - - - 10,853 3,900,951 3,567,972 310,051 2,619,011 594,757 (754,130) 102,775 - - - - (2,438,584) (2,919,152) (884,961) - - - - - (2,438,584) (2,919,152) (884,961) - 180,427 (2,324,395) (1,639,091) 102,775 4,490,508 3,903,073 2,800,590 321,582 4,670,935$ 1,578,678 $ 1,161,499 $ 424,357 $ Special Revenue Funds
Road
Maintenance
and
Rehabilitation
Stormwater
Utility Tax
Road
Maintenance Transit
85 ITEM 15
Agenda Packet Page #151

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ - $ - $ -$ - - - - 413,162 195,974 1,516,944 235,750 - - - - 1,308 80,240 - - - - - - - 5,714 - - 414,470 281,928 1,516,944 235,750 - - - - - 17,459 429,963 89,710 - - - - - - - - - - - - - - 1,095,660 146,040 - - - - - - 8,188 - - 17,459 1,533,811 235,750 414,470 264,469 (16,867) - - - - - (152,847) - - - - - - - (152,847) - - - 261,623 264,469 (16,867) - 25,626 1,996,552 4,436 (284) 287,249$ 2,261,021 $ (12,431) $ (284) $ Special Revenue Funds
Police Police Grants
Supplemental
Law
Enforcement
Services
(SLES)
Transportation
Development
Act
86 ITEM 15
Agenda Packet Page #152

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ - $ - $ -$ - - - - - - - - - - - 277,876 - - 18,205 36,932 - - - - 81,957 - - - 81,957 - 18,205 314,808 - - - - - - - - - - - 17,621 - - - - - - - 60,556 - - - - - - - - - - - - - - - 78,177 81,957 - 18,205 236,631 - - - 47,978 - (82,576) - - - - - - - (82,576) - 47,978 81,957 (82,576) 18,205 284,609 4,071,593 448,847 405,774 654,222 4,153,550$ 366,271 $ 423,979 $ 938,831 $ Special Revenue Funds
Housing
Agency
Roadway
Development
Fees
Housing
Mitigation
Development
Fees
Tree
Mitigation Fes
87 ITEM 15
Agenda Packet Page #153

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ -$ -$ -$
- - - -
- - 905,326 -
34,756 - - 12,372
10,715 - - 1,425
- - - -
- - - -
45,471 - 905,326 13,797
- - 6,331 -
- - - -
- - 731,800 -
- - - -
- - - 8,359
- - 1
94,742 -
- - - -
- - - -
- - 932,873 8,359
45,471 - (27,547) 5,438
- - 48,536 -
- - - -
- - - -
- - 48,536 -
45,471 - 20,989 5,438
124,526 207,543 (19,638) 35,290
169,997$ 207,543 $ 1,351 $ 40,728 $ Special Revenue Funds
Assessment
District 98-02
Zone 3
Park Facilities
Development
Fees
Transit
Development
Fees Other Grants
88 ITEM 15
Agenda Packet Page #154

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ - $ - $ -$ - - - - - - - - 10,368 13,237 6,424 4,602 2,229 2,190 255 195 - - - - - - - - 12,597 15,427 6,679 4,797 - - - - - - - - - - - - - - - - 10,419 57,222 18,349 23,283 - - - - - - - - - - - - 10,419 57,222 18,349 23,283 2,178 (41,795) (11,670) (18,486) - - 11,625 18,486 - - - - - - - - - - 11,625 18,486 2,178 (41,795) (45) - 41,058 64,731 45 - 43,236$ 22,936$ -$ -$ Special Revenue Funds
Assessment
District Zone 1
Assessment
District Zone 2
Assessment
District Zone 3
Assessment
District Zone 4
89 ITEM 15
Agenda Packet Page #155

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ -$ -$ -$
- - - -
- - - -
11,575 24,057 99,239 17,830 5,258 3,168 31,845 2,067
- - - -
- - - -
16,833 27,225 131,084 19,897 - - - -
- - - -
- - - -
- - - -
11,904 36,797 122,659 21,884 - - - -
- - - -
- - - -
11,904 36,797 122,659 21,884 4,929 (9,572) 8,425 (1,987)
- - - -
- - - -
- - - -
- - - -
4,929 (9,572) 8,425 (1,987)
133,698 67,367 832,145 46,308 138,627$ 57,795 $ 840,570 $ 44,321 $ Special Revenue Funds
Assessment
District 98-01
Assessment
District 98-02
Assessment
District 03-01
Assessment
District 98-02
Zone 2
90 ITEM 15
Agenda Packet Page #156

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ - $ - $ -$ - - - - - - - - 22,136 339,063 - 91,630 5,862 - - 11,887 - - 9,246 - - - - - 27,998 339,063 9,246 103,517 - - - - - - 2,752 - - - - - - - - - 13,313 466,747 - 273 - 28,546 - - - 19,592 - - - 3,564 - - 13,313 518,449 2,752 273 14,685 (179,386) 6,494 103,244 - 202,542 - - - - - - - - - - - 202,542 - - 14,685 23,156 6,494 103,244 38,337 (23,156) 11,005 275,728 53,022$ - $ 17,499$ 378,972 $ Special Revenue Funds
Lighting
Assessment
District
Police
Donations
Assessment
District 03-01
Zone 3
Assessment
District 03-01
Zone 2
91 ITEM 15
Agenda Packet Page #157

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$ - $ - $ -$ - - - - - - - - 18,193 16,037 17,496 11,225 - 2,024 29,820 918 - - - - - - - - 18,193 18,061 47,316 12,143 - - - - 18,193 - - - - 85 - - - - - - - - - 205 - - - - - - - - - - - - 18,193 85 - 205 - 17,976 47,316 11,938 - - - - - - - - - - - - - - - - - 17,976 47,316 11,938 - 17,641 68,037 14,298 -$ 35,617$ 115,353 $ 26,236 $ Special Revenue Funds
Fire CFD
Impact Fee
Fund
SB 1186
Access Comp
Fund
Multimodal
Impact Fee
Fund
Assessment
District 98-02
Fund
92 ITEM 15
Agenda Packet Page #158

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

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

EXPENDITURES
Current:

General government
Public safety
Community enhancements
Culture and recreation
Public ways and facilities
Capital outlay
Debt service:

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

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
-$ - $ - $ 10,145$ - 141,978 58,814 200,792 663,238 - 4,176 13,005,931 - - - 6,547,509 42,318 - - 1,059,541 - - - 9,246 - - - 179,892 705,556 141,978 62,990 21,013,056 - - 30,804 37,135 - - 2,990 1,467,936 - - - 1,777,260 - - 87,310 87,310 59,516 - - 10,743,906 53,398 - 1,642,151 3,278,374 - - - 19,592 - - - 11,752 112,914 - 1,763,255 17,423,265 592,642 141,978 (1,700,265) 3,589,791 - - 1,499,407 1,830,772 (321,658) (191,926) (48,536) (7,759,897) - - 165,476 165,476 (321,658) (191,926) 1,616,347 (5,763,649) 270,984 (49,948) (83,918) (2,173,858) 714,917 4,245,531 1,685,852 32,281,072 985,901$ 4,195,583 $ 1,601,934 $ 30,107,214 $ Capital Projects Funds
Measure A
Construction
General
Capital
Improvements
Community
Capital
Replacement
93 ITEM 15
Agenda Packet Page #159

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

REVENUES
Intergovernmental 500,000$ 500,000 $ 766,194 $ 266,194$ Use of money and property - - 46,790 46,790 Total revenues 500,000 500,000 812,984 312,984

EXPENDITURES
Current:

Community enhancements 500,000 500,000 766,193 (266,193) Total expenditures 500,000 500,000 766,193 (266,193) Net change in fund balances -$ -$ 46,791 46,791$
Fund balances (deficit)-beginning 1,149,481
Fund balances (deficit)-ending 1,196,272$
94 ITEM 15
Agenda Packet Page #160

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

REVENUES
Intergovernmental 600,000$ 600,000 $ 750,123 $ 150,123$ Use of money and property - - 810 810 Miscellaneous - - 92,221 92,221 Total revenues 600,000 600,000 843,154 243,154

EXPENDITURES
Current:

Community enhancements 600,000 600,000 261,561 338,439 Total expenditures 600,000 600,000 261,561 338,439 Excess (deficiency) of revenues
over (under) expenditures - - 581,593 581,593

OTHER FINANCING SOURCES (USES)
Transfers in - - 2,198 2,198 Transfers out - - (392,444) (392,444) Total other financing sources (uses) - - (390,246) (390,246) Net change in fund balances -$ -$ 191,347 191,347$ Fund balances (deficit)-beginning 191,289
Fund balances (deficit)-ending 382,636$
95 ITEM 15
Agenda Packet Page #161

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

REVENUES
Charges for services 699,644$ 699,644 $ 824,293 $ 124,649$ Use of money and property - - 23,298 23,298 Total revenues 699,644 699,644 847,591 147,947

EXPENDITURES
Current:

Public safety 859,073 859,073 906,869 (47,796) Total expenditures 859,073 859,073 906,869 (47,796) Net change in fund balances (159,429)$ (159,429)$ (59,278) 100,151$ Fund balances (deficit)-beginning 674,073
Fund balances (deficit)-ending 614,795$
96 ITEM 15
Agenda Packet Page #162

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

REVENUES
Intergovernmental 2,597,140$ 2,597,140 $ 2,479,715 $ (117,425)$ Use of money and property - - 128,116 128,116 Total revenues 2,597,140 2,597,140 2,607,831 10,691

EXPENDITURES
Current:

Public ways and facilities 2,058,557 2,058,557 2,078,193 (19,636) Capital outlay - - 82,237 (82,237) Total expenditures 2,058,557 2,058,557 2,160,430 (101,873) Excess (deficiency) of revenues
over (under) expenditures 538,583 538,583 447,401 (91,182)

OTHER FINANCING SOURCES (USES)
Transfers out (400,000) (400,000) (327,213) 72,787 Total other financing sources (uses) (400,000) (400,000) (327,213) 72,787 Net change in fund balances 138,583$ 138,583$ 120,188 (18,395)$ Fund balances (deficit)-beginning 2,562,447
Fund balances (deficit)-ending 2,682,635$
97 ITEM 15
Agenda Packet Page #163

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

REVENUES
Intergovernmental 1,881,447$ 1,881,447 $ 2,393,827 $ 512,380$ Use of money and property - - 236,037 236,037 Total revenues 1,881,447 1,881,447 2,629,864 748,417

EXPENDITURES
Current:

Public ways and facilities - - 10,853 (10,853) Total expenditures - - 10,853 (10,853)
Excess (deficiency) of revenues
over (under) expenditures 1,881,447 1,881,447 2,619,011 737,564

OTHER FINANCING SOURCES (USES)
Transfers out (1,800,000) (1,800,000) (2,438,584) (638,584) Total other financing sources (uses) (1,800,000) (1,800,000) (2,438,584) (638,584) Net change in fund balances 81,447$ 81,447$ 180,427 98,980$ Fund balances (deficit)-beginning 4,490,508
Fund balances (deficit)-ending 4,670,935$
98 ITEM 15
Agenda Packet Page #164

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

REVENUES
Taxes -$ - $ 10,145$ 10,145$ Charges for services 3,965,879 3,965,879 4,305,847 339,968 Use of money and property - - 179,716 179,716 Total revenues 3,965,879 3,965,879 4,495,708 529,829

EXPENDITURES
Current:

Public ways and facilities 2,466,497 3,646,497 3,865,351 (218,854) Capital outlay 1,180,000 - 35,600 (35,600) Total expenditures 3,646,497 3,646,497 3,900,951 (254,454) Excess (deficiency) of revenues
over (under) expenditures 319,382 319,382 594,757 275,375

OTHER FINANCING SOURCES (USES)
Transfers out (1,300,000) (1,300,000) (2,919,152) (1,619,152) Total other financing sources (uses) (1,300,000) (1,300,000) (2,919,152) (1,619,152) Net change in fund balances (980,618)$ (980,618)$ (2,324,395) (1,343,777)$ Fund balances (deficit)-beginning 3,903,073
Fund balances (deficit)-ending 1,578,678$
99 ITEM 15
Agenda Packet Page #165

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

REVENUES
Intergovernmental 2,767,832$ 2,767,832 $ 2,681,502 $ (86,330)$ Use of money and property - - 132,340 132,340 Total revenues 2,767,832 2,767,832 2,813,842 46,010

EXPENDITURES
Current:

Public ways and facilities 2,054,045 3,229,045 3,567,972 (338,927) Capital outlay 1,175,000 - - - Total expenditures 3,229,045 3,229,045 3,567,972 (338,927) Excess (deficiency) of revenues
over (under) expenditures (461,213) (461,213) (754,130) (292,917)

OTHER FINANCING SOURCES (USES)
Transfers out (120,000) (120,000) (884,961) (764,961) Total other financing sources (uses) (120,000) (120,000) (884,961) (764,961) Net change in fund balances (581,213)$ (581,213)$ (1,639,091) (1,057,878)$ Fund balances (deficit)-beginning 2,800,590
Fund balances (deficit)-ending 1,161,499$
100
ITEM 15
Agenda Packet Page #166

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

REVENUES
Charges for services 383,877$ 383,877 $ 389,253 $ 5,376$ Use of money and property - - 23,573 23,573 Total revenues 383,877 383,877 412,826 28,949

EXPENDITURES
Current:

Public ways and facilities 348,526 514,135 310,051 204,084 Total expenditures 359,135 514,135 310,051 204,084 Net change in fund balances (130,258)$ (130,258)$ 102,775 233,033$ Fund balances (deficit)-beginning 321,582
Fund balances (deficit)-ending 424,357$
101
ITEM 15
Agenda Packet Page #167

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

REVENUES
Intergovernmental 101,275$ 101,275 $ 413,162 $ 311,887$ Use of money and property - - 1,308 1,308
Total revenues 101,275 101,275 414,470 313,195 Excess (deficiency) of revenues
over (under) expenditures 101,275 101,275 414,470 313,195

OTHER FINANCING SOURCES (USES)
Transfers out - - (152,847) (152,847)
Total other financing sources (uses) - - (152,847) (152,847) Net change in fund balances 101,275$ 101,275$ 261,623 160,348$ Fund balances (deficit)-beginning 25,626
Fund balances (deficit)-ending 287,249$
102
ITEM 15
Agenda Packet Page #168

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

REVENUES
Intergovernmental -$ - $ 195,974$ 195,974$ Use of money and property - - 80,240 80,240 Miscellaneous - - 5,714 5,714 Total revenues - - 281,928 281,928

EXPENDITURES
Current:

Public safety 65,169 96,169 17,459 78,710 Total expenditures 65,169 96,169 17,459 78,710 Net change in fund balances (65,169)$ (96,169)$ 264,469 360,638$ Fund balances (deficit)-beginning 1,996,552
Fund balances (deficit)-ending 2,261,021$
103
ITEM 15
Agenda Packet Page #169

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

REVENUES
Intergovernmental 115,482$ 115,482 $ 1,516,944 $ 1,401,462$ Total revenues 115,482 115,482 1,516,944 1,401,462

EXPENDITURES
Current:

Public safety 161,486 161,486 429,963 (268,477) Capital outlay - - 1,095,660 (1,095,660) Debt service:

Interest and fiscal charges - - 8,188 (8,188) Total expenditures 161,486 161,486 1,533,811 (1,372,325) Excess (deficiency) of revenues
over (under) expenditures (46,004) (46,004) (16,867) 29,137 Net change in fund balances (46,004)$ (46,004)$ (16,867) 29,137$ Fund balances (deficit)-beginning 4,436
Fund balances (deficit)-ending (12,431)$
104
ITEM 15
Agenda Packet Page #170

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Supplemental Law Enforcement Services (SLES)
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 133,393$ 133,393 $ 235,750 $ 102,357$ Total revenues 133,393 133,393 235,750 102,357

EXPENDITURES
Current:

Public safety 24,402 24,402 89,710 (65,308) Capital Outlay - - 146,040 (146,040) Total expenditures 24,402 24,402 235,750 (211,348) Net change in fund balances 108,991$ 108,991$ - (108,991)$ Fund balances (deficit)-beginning (284)
Fund balances (deficit)-ending (284)$
105
ITEM 15
Agenda Packet Page #171

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

REVENUES
Charges for services 18,002$ 18,002 $ - $ (18,002)$ Use of money and property - - 18,205 18,205 Total revenues 18,002 18,002 18,205 203

EXPENDITURES
Current:

Community enhancements 54,636 54,636 - 54,636 Total expenditures 54,636 54,636 - 54,636 Net change in fund balances (36,634)$ (36,634)$ 18,205 54,839$ Fund balances (deficit)-beginning 405,774
Fund balances (deficit)-ending 423,979$
106
ITEM 15
Agenda Packet Page #172

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

REVENUES
Charges for services 39,393$ 39,393 $ 277,876 $ 238,483$ Use of money and property - - 36,932 36,932 Total revenues 39,393 39,393 314,808 275,415

EXPENDITURES
Current:

Community enhancements 22,003 22,003 17,621 4,382 Public ways and facilities - - 60,556 (60,556) Total expenditures 22,003 22,003 78,177 (56,174) Excess (deficiency) of revenues
over (under) expenditures 17,390 17,390 236,631 219,241

OTHER FINANCING SOURCES (USES)
Transfers in - - 47,978 47,978 Total other financing sources (uses) - - 47,978 47,978 Net change in fund balances 17,390$ 17,390$ 284,609 267,219$ Fund balances (deficit)-beginning 654,222
Fund balances (deficit)-ending 938,831$
107
ITEM 15
Agenda Packet Page #173

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

REVENUES
Charges for services 120,943$ 120,943 $ 34,756 $ (86,187)$ Use of money and property - - 10,715 10,715 Total revenues 120,943 120,943 45,471 (75,472)

EXPENDITURES
Current:

Public ways and facilities 54,636 54,636 - 54,636 Total expenditures 54,636 54,636 - 54,636 Net change in fund balances 66,307$ 66,307$ 45,471 (20,836)$ Fund balances (deficit)-beginning 124,526
Fund balances (deficit)-ending 169,997$
108
ITEM 15
Agenda Packet Page #174

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

REVENUES
Intergovernmental 12,000$ 12,000 $ 905,326 $ 893,326$ Total revenues 12,000 12,000 905,326 893,326

EXPENDITURES
Current:

General government - - 6,331 (6,331) Community enhancements 15,000 15,000 731,800 (716,800) Capital Outlay - - 194,742 (194,742) Total expenditures 15,000 15,000 932,873 (917,873) Excess (deficiency) of revenues
over (under) expenditures (3,000) (3,000) (27,547) (24,547)

OTHER FINANCING SOURCES (USES)
Transfers in - - 48,536 48,536 Total other financing sources (uses) - - 48,536 48,536 Net change in fund balances (3,000)$ (3,000)$ 20,989 23,989$ Fund balances (deficit)-beginning (19,638)
Fund balances (deficit)-ending 1,351$
109
ITEM 15
Agenda Packet Page #175

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 98-02 Zone 3
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 12,348$ 12,348 $ 12,372 $ 24$ Use of money and property - - 1,425 1,425 Total revenues 12,348 12,348 13,797 1,449

EXPENDITURES
Current:

Public ways and facilities 6,259 6,259 8,359 (2,100) Total expenditures 6,259 6,259 8,359 (2,100) Net change in fund balances 6,089$ 6,089$ 5,438 (651)$ Fund balances (deficit)-beginning 35,290
Fund balances (deficit)-ending 40,728$
110
ITEM 15
Agenda Packet Page #176

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District Zone 1
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 10,523$ 10,523 $ 10,368 $ (155)$ Use of money and property - - 2,229 2,229 Total revenues 10,523 10,523 12,597 2,074

EXPENDITURES
Current:

Public ways and facilities 17,656 17,656 10,419 7,237 Total expenditures 17,656 17,656 10,419 7,237 Net change in fund balances (7,133)$ (7,133)$ 2,178 9,311$ Fund balances (deficit)-beginning 41,058
Fund balances (deficit)-ending 43,236$
111
ITEM 15
Agenda Packet Page #177

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District Zone 2
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 13,169$ 13,169 $ 13,237 $ 68$ Use of money and property - - 2,190 2,190
Total revenues 13,169 13,169 15,427 2,258

EXPENDITURES
Current:

Public ways and facilities 15,293 15,293 57,222 (41,929) Total expenditures 15,293 15,293 57,222 (41,929) Net change in fund balances (2,124)$ (2,124)$ (41,795) (39,671)$ Fund balances (deficit)-beginning 64,731
Fund balances (deficit)-ending 22,936$
112
ITEM 15
Agenda Packet Page #178

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District Zone 3
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 6,550$ 6,550 $ 6,424 $ (126)$ Total revenues 6,550 6,550 6,679 129

EXPENDITURES
Current:

Public ways and facilities 16,517 16,517 18,349 (1,832) Total expenditures 16,517 16,517 18,349 (1,832) Net change in fund balances (9,967)$ (9,967)$ (45) 9,922$ Fund balances (deficit)-beginning 45
Fund balances (deficit)-ending -$
113
ITEM 15
Agenda Packet Page #179

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District Zone 4
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 4,718$ 4,718 $ 4,602 $ (116)$ Use of money and property - - 195 195 Total revenues 4,718 4,718 4,797 79

EXPENDITURES
Current:

Public ways and facilities 20,782 20,782 23,283 (2,501) Total expenditures 20,782 20,782 23,283 (2,501) Excess (deficiency) of revenues
over (under) expenditures (16,064) (16,064) (18,486) (2,422)

OTHER FINANCING SOURCES (USES)
Transfers in 6,511 - 18,486 18,486 Total other financing sources (uses) 6,511 - 18,486 18,486 Net change in fund balances (9,553)$ (16,064)$ - 16,064$ Fund balances (deficit)-beginning -
Fund balances (deficit)-ending -$
114
ITEM 15
Agenda Packet Page #180

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 98-01
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 11,627$ 11,627 $ 11,575 $ (52)$ Use of money and property - - 5,258 5,258 Total revenues 11,627 11,627 16,833 5,206

EXPENDITURES
Current:

Public ways and facilities 14,956 14,956 11,904 3,052 Total expenditures 14,956 14,956 11,904 3,052 Net change in fund balances (3,329)$ (3,329)$ 4,929 8,258$ Fund balances (deficit)-beginning 133,698
Fund balances (deficit)-ending 138,627$
115
ITEM 15
Agenda Packet Page #181

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 98-02
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 24,259$ 24,259 $ 24,057 $ (202)$ Use of money and property - - 3,168 3,168
Total revenues 24,259 24,259 27,225 2,966

EXPENDITURES
Current:

Public ways and facilities 33,019 33,019 36,797 (3,778) Total expenditures 33,019 33,019 36,797 (3,778) Net change in fund balances (8,760)$ (8,760)$ (9,572) (812)$ Fund balances (deficit)-beginning 67,367
Fund balances (deficit)-ending 57,795$
116
ITEM 15
Agenda Packet Page #182

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 03-01
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 96,925$ 96,925 $ 99,239 $ 2,314$ Use of money and property - - 31,845 31,845 Total revenues 96,925 96,925 131,084 34,159

EXPENDITURES
Current:

Public ways and facilities 119,621 119,621 122,659 (3,038) Total expenditures 119,621 119,621 122,659 (3,038) Net change in fund balances (22,696)$ (22,696)$ 8,425 31,121$ Fund balances (deficit)-beginning 832,145
Fund balances (deficit)-ending 840,570$
117
ITEM 15
Agenda Packet Page #183

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 98-02 Zone 2
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 17,798$ 17,798 $ 17,830 $ 32$ Use of money and property - - 2,067 2,067 Total revenues 17,798 17,798 19,897 2,099

EXPENDITURES
Current:

Public ways and facilities 19,145 19,145 21,884 (2,739) Total expenditures 19,145 19,145 21,884 (2,739) Net change in fund balances (1,347)$ (1,347)$ (1,987) (640)$ Fund balances (deficit)-beginning 46,308
Fund balances (deficit)-ending 44,321$
118
ITEM 15
Agenda Packet Page #184

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 03-01 Zone 2
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 21,957$ 21,957 $ 22,136 $ 179$ Use of money and property - - 5,862 5,862 Total revenues 21,957 21,957 27,998 6,041

EXPENDITURES
Current:

Public ways and facilities 30,685 30,685 13,313 17,372 Total expenditures 30,685 30,685 13,313 17,372 Net change in fund balances (8,728)$ (8,728)$ 14,685 23,413$ Fund balances (deficit)-beginning 38,337
Fund balances (deficit)-ending 53,022$
119
ITEM 15
Agenda Packet Page #185

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

REVENUES
Charges for services 350,000$ 350,000 $ 339,063 $ (10,937)$ Total revenues 350,000 350,000 339,063 (10,937)

EXPENDITURES
Current:

Public ways and facilities 499,372 499,372 466,747 32,625 Capital Outlay - - 28,546 (28,546)
Debt service:

Principal - - 19,592 (19,592)
Interest and fiscal charges - - 3,564 (3,564)
Total expenditures 499,372 499,372 518,449 (19,077) Excess (deficiency) of revenues
over (under) expenditures (149,372) (149,372) (179,386) (30,014)

OTHER FINANCING SOURCES (USES)
Transfers in 90,000 - 202,542 202,542
Total other financing sources (uses) 90,000 - 202,542 202,542 Net change in fund balances (59,372)$ (149,372)$ 23,156 172,528$ Fund balances (deficit)-beginning (23,156)
Fund balances (deficit)-ending -$
120
ITEM 15
Agenda Packet Page #186

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

REVENUES
Contributions -$ - $ 9,246$ 9,246$ Total revenues - - 9,246 9,246

EXPENDITURES
Current:

Public safety 1,591 1,591 2,752 (1,161) Total expenditures 1,591 1,591 2,752 (1,161) Net change in fund balances (1,591)$ (1,591)$ 6,494 8,085$ Fund balances (deficit)-beginning 11,005
Fund balances (deficit)-ending 17,499$
121
ITEM 15
Agenda Packet Page #187

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 03-01 Zone 3
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 94,261$ 94,261 $ 91,630 $ (2,631)$ Use of money and property - - 11,887 11,887 Total revenues 94,261 94,261 103,517 9,256

EXPENDITURES
Current:

Public ways and facilities 33,865 33,865 273 33,592 Total expenditures 33,865 33,865 273 33,592 Net change in fund balances 60,396$ 60,396$ 103,244 42,848$ Fund balances (deficit)-beginning 275,728
Fund balances (deficit)-ending 378,972$
122
ITEM 15
Agenda Packet Page #188

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

REVENUES
Charges for services 51,500$ 51,500 $ 18,193 $ (33,307)$ Total revenues 51,500 51,500 18,193 (33,307)

EXPENDITURES
Current:

Public safety 16,500 - 18,193 (18,193) Total expenditures 16,500 16,500 18,193 (1,693) Net change in fund balances 35,000$ 35,000$ - (35,000)$ Fund balances (deficit)-beginning -
Fund balances (deficit)-ending -$
123
ITEM 15
Agenda Packet Page #189

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB 1186 Access Comp Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 11,000$ 11,000 $ 16,037 $ 5,037$ Use of money and property - - 2,024 2,024
Total revenues 11,000 11,000 18,061 7,061

EXPENDITURES
Current:

Community enhancements 10,500 10,500 85 10,415 Total expenditures 10,500 10,500 85 10,415 Net change in fund balances 500$ 500$ 17,976 17,476$ Fund balances (deficit)-beginning 17,641
Fund balances (deficit)-ending 35,617$
124
ITEM 15
Agenda Packet Page #190

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

REVENUES
Charges for services 30,210$ 30,210 $ 17,496 $ (12,714)$ Use of money and property - - 29,820 29,820 Total revenues 30,210 30,210 47,316 17,106

EXPENDITURES
Current:

Public ways and facilities 50,000 50,000 - 50,000 Total expenditures 50,000 50,000 - 50,000 Net change in fund balances (19,790)$ (19,790)$ 47,316 67,106$ Fund balances (deficit)-beginning 68,037
Fund balances (deficit)-ending 115,353$
125
ITEM 15
Agenda Packet Page #191

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Assessment District 98-02 Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 9,501$ 9,501 $ 11,225 $ 1,724$ Use of money and property - - 918 918
Total revenues 9,501 9,501 12,143 2,642

EXPENDITURES
Current:

Public ways and facilities 1,875 1,875 205 1,670
Total expenditures 1,875 1,875 205 1,670
Net change in fund balances 7,626$ 7,626$ 11,938 4,312$ Fund balances (deficit)-beginning 14,298
Fund balances (deficit)-ending 26,236$
126
ITEM 15
Agenda Packet Page #192

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

REVENUES
Intergovernmental -$ - $ 13,737,134$ 13,737,134$ Miscellaneous - - 46,255 46,255 Total revenues - - 13,783,389 13,783,389

EXPENDITURES
Current:

Public ways and facilities 300,000 - 345,597 (345,597) Capital outlay 20,910,730 21,210,730 26,373,118 (5,162,388) Total expenditures 21,210,730 21,210,730 26,718,715 (5,507,985) Excess (deficiency) of revenues
over (under) expenditures (21,210,730) (21,210,730) (12,935,326) 8,275,404

OTHER FINANCING SOURCES (USES)
Transfers in 21,210,730 - 11,367,472 11,367,472 Transfers out - - (47,978) (47,978) Debt issuance proceeds - - 200,475 200,475 Total other financing sources (uses) 21,210,730 - 11,519,969 11,519,969 Net change in fund balances -$ (21,210,730)$ (1,415,357) 19,795,373$ Fund balances (deficit)-beginning (1,303,864)
Fund balances (deficit)-ending (2,719,221) $
127
ITEM 15
Agenda Packet Page #193

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

REVENUES
Intergovernmental 686,117$ 686,117 $ 663,238 $ (22,879)$ Use of money and property - - 42,318 42,318 Total revenues 686,117 686,117 705,556 19,439

EXPENDITURES
Current:

Public ways and facilities 250,000 250,000 59,516 190,484 Capital outlay - - 53,398 (53,398) Total expenditures 250,000 250,000 112,914 137,086 Excess (deficiency) of revenues
over (under) expenditures 436,117 436,117 592,642 156,525

OTHER FINANCING SOURCES (USES)
Transfers out (513,000) (513,000) (321,658) 191,342 Total other financing sources (uses) (513,000) (513,000) (321,658) 191,342 Net change in fund balances (76,883)$ (76,883)$ 270,984 347,867$ Fund balances (deficit)-beginning 714,917
Fund balances (deficit)-ending 985,901$
128
ITEM 15
Agenda Packet Page #194

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

REVENUES
Licenses and permits 91,710$ 91,710 $ 141,978 $ 50,268$ Total revenues 91,710 91,710 141,978 50,268 Excess (deficiency) of revenues
over (under) expenditures 91,710 91,710 141,978 50,268

OTHER FINANCING SOURCES (USES)
Transfers out - - (191,926) (191,926) Total other financing sources (uses) - - (191,926) (191,926) Net change in fund balances 91,710$ 91,710$ (49,948) (141,658)$ Fund balances (deficit)-beginning 4,245,531
Fund balances (deficit)-ending 4,195,583$
129
ITEM 15
Agenda Packet Page #195

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

REVENUES
Licenses and permits 33,000$ 33,000 $ 58,814 $ 25,814$ Intergovernmental - - 4,176 4,176
Total revenues 33,000 33,000 62,990 29,990

EXPENDITURES
Current:

General government - - 30,804 (30,804)
Public safety - - 2,990 (2,990)
Culture and recreation - - 87,310 (87,310) Capital outlay - 2,234,482 1,642,151 592,331
Total expenditures - 2,234,482 1,763,255 471,227 Excess (deficiency) of revenues
over (under) expenditures 33,000 (2,201,482) (1,700,265) 501,217

OTHER FINANCING SOURCES (USES)
Transfers in 1,110,000 - 1,499,407 1,499,407
Transfers out - - (48,536) (48,536)
Proceeds for sale of capital assets - - 165,476 165,476 Total other financing sources (uses) 1,110,000 - 1,616,347 1,616,347 Net change in fund balances 1,143,000$ (2,201,482)$ (83,918) 2,117,564$ Fund balances (deficit)-beginning 1,685,852
Fund balances (deficit)-ending 1,601,934$
130
ITEM 15
Agenda Packet Page #196
Total
Custodial
Funds
ASSETS
Cash and cash equivalents 10,222$ 75,004 $ 85,226$ Total assets 10,222 75,004 85,226

LIABILITIES
Due to other governments 10,207 - 10,207 Total liabilities 10,207 - 10,207

NET POSITION
Restricted for:

Other governments 15 75,004 75,019 Total net position 15$ 75,004$ 75,019$ STA Fees WISN ESAC

CITY OF CITRUS HEIGHTS, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2025
131
ITEM 15
Agenda Packet Page #197
Total
Custodial
Funds

DEDUCTIONS
Contractual services -$ 121,106$ 121,106$ Total deductions - 121,106 121,106 Net increase (decrease) in fiduciary net position - (121,106) (121,106) Net position-beginning 15 196,110 196,125 Net position-ending 15$ 75,004$ 75,019$

CITY OF CITRUS HEIGHTS, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
STA Fees WISN ESAC
132
ITEM 15
Agenda Packet Page #198
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133
ITEM 15
Agenda Packet Page #199
7+,63$*(,17(17,21$//</()7%/$1.
134
ITEM 15
Agenda Packet Page #200

CITY OF CITRUS HEIGHTS, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Invested in capital assets 351,834,754$ 355,292,096 $ 344,507,138 $ 336,912,872 $ 328,594,520 $ 319,214,442 $ 316,887,986 $ 314,998,711 $ 311,932,873 $ 330,498,553$ Restricted 15,279,052 15,935,790 16,266,052 13,375,587 19,575,754 25,779,873 25,868,240 23,418,902 26,750,252 24,630,036 Unrestricted 14,663,297 4,264,024 1,755,048 1,882,908 (6,606,540) (7,281,556) 4,318,206 14,471,243 21,944,597 24,637,567 Total governmental activities net position 381,777,103$ 375,491,910 $ 362,528,238 $ 352,171,367 $ 341,563,734 $ 337,712,759 $ 347,074,432 $ 352,888,856 $ 360,627,722 $ 379,766,156$ Business-type activities
Invested in capital assets 321,123$ 389,449 $ 381,575 $ 373,702 $ 365,829 $ 357,956 $ 350,082 $ 342,209 $ 334,336 $ 326,463$ Restricted - - - - - - - - 3,726 Unrestricted 265,517 160,563 219,434 306,142 533,964 775,308 1,131,508 1,576,732 2,029,399 2,181,961 Total business-type activities net position 586,640$ 550,012 $ 601,009 $ 679,844 $ 899,793 $ 1,133,264 $ 1,481,590 $ 1,918,941 $ 2,363,735 $ 2,512,150$ Primary government
Invested in capital assets 352,155,877$ 355,681,545 $ 344,888,713 $ 337,286,574 $ 328,960,349 $ 319,572,398 $ 317,238,068 $ 315,340,920 $ 312,267,209 $ 330,825,016$ Restricted 15,279,052 15,935,790 16,266,052 13,375,587 19,575,754 25,779,873 25,868,240 23,418,902 26,750,252 24,633,762 Unrestricted 14,928,814 4,424,587 1,974,482 2,189,050 (6,072,576) (6,506,248) 5,449,714 16,047,975 23,973,996 26,819,528 Total primary government net position 382,363,743$ 376,041,922 $ 363,129,247 $ 352,851,211 $ 342,463,527 $ 338,846,023 $ 348,556,022 $ 354,807,797 $ 362,991,457 $ 382,278,306$ Source: City Administrative Services Department
135
ITEM 15
Agenda Packet Page #201

CITY OF CITRUS HEIGHTS, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government 4,704,899$ 5,463,122 $ 6,106,557 $ 6,909,949 $ 7,360,783 $ 10,210,576 $ 7,729,201 $ 9,404,296 $ 10,184,057 $ 15,680,122$ Public safety 17,355,288 18,378,242 21,698,128 24,025,017 24,443,611 23,338,398 15,877,629 25,813,011 26,368,209 28,363,422 Public ways and facilities 34,185,103 24,188,701 24,395,899 21,730,069 19,019,629 18,149,133 17,660,038 20,077,331 21,076,523 18,640,661 Culture and recreation 654,183 669,948 722,254 720,442 830,572 540,427 906,037 839,028 1,185,806 1,285,621 Economic development 214,978 402,904 353,608 296,233 950,409 916,027 55,751 1,123,525 1,141,315 468,220 Community enhancements 4,313,943 4,710,977 4,664,278 3,953,127 3,928,848 3,877,993 4,085,740 3,937,025 4,389,584 4,784,190 Interest on long-term debt - - - 70,962 151,957 144,455 131,908 16,108 75,339 176,308 Total governmental activities expenses 61,428,394 53,813,894 57,940,724 57,705,799 56,685,809 57,177,009 46,446,304 61,210,324 64,420,833 69,398,544 Business-type activities:

Solid waste 757,028 798,694 751,291 809,466 675,849 732,927 788,023 897,894 1,061,583 1,335,548 Total business-type activities expenses 757,028 798,694 751,291 809,466 675,849 732,927 788,023 897,894 1,061,583 1,335,548 Total primary government expenses 62,185,422 54,612,588 58,692,015 58,515,265 57,361,658 57,909,936 47,234,327 62,108,218 65,482,416 70,734,092 Program revenues
Governmental activities:

Charges for services:

General government
1,120,688 1,151,570 1,185,547 1,888,219 1,902,206 1,904,861 1,745,213 1,951,865 2,057,078 2,872,528 Public safety 1,547,840 1,759,927 1,488,252 1,978,407 2,133,898 2,074,980 2,173,237 2,320,214 2,064,564 2,263,851 Public ways and facilities 4,359,774 4,500,372 4,324,674 4,474,641 5,344,895 4,759,239 5,357,787 4,990,571 5,769,421 5,724,776 Culture and recreation 352,401 354,517 449,711 32,526 22,473 - 18,313 31,948 44,742 58,814 Economic development 50 - - - - - - 216,596 - - Community enhancements 1,912,936 1,597,005 498,673 1,242,148 1,508,999 2,730,818 3,221,746 2,332,285 2,743,416 3,036,893 Operating grants and contributions 10,236,552 6,087,515 6,265,040 7,165,367 6,053,305 11,072,674 10,921,489 11,327,442 12,248,466 16,005,026 Capital grants and contributions 4,489,329 2,006,396 1,483,643 7,101,580 3,790,741 3,589,794 5,389,435 4,959,684 6,409,747 15,451,423 Total governmental activities program revenues 24,019,570 17,457,302 15,695,540 23,882,888 20,756,517 26,132,366 28,827,220 28,130,605 31,337,434 45,413,311 Business-type activities:

Charges for services:

Solid waste 732,401 761,614 798,838 839,030 829,397 904,130 1,092,589 1,266,201 1,356,068 1,380,757 Total business-type activities program revenues 732,401 761,614 798,838 839,030 829,397 904,130 1,092,589 1,266,201 1,356,068 1,380,757 Total primary government program revenues 24,751,971 18,218,916 16,494,378 24,721,918 21,585,914 27,036,496 29,919,809 29,396,806 32,693,502 46,794,068 Net (Expense)/Revenue
Governmental activities (37,408,824) (36,356,592) (42,245,184) (33,822,911) (35,929,292) (31,044,643) (17,619,084) (33,079,719) (33,083,399) (23,985,233) Business-type activities (24,627) (37,080) 47,547 29,564 153,548 171,203 304,566 368,307 294,485 45,209 Total primary government net expense (37,433,451) (36,393,672) (42,197,637) (33,793,347) (35,775,744) (30,873,440) (17,314,518) (32,711,412) (32,788,914) (23,940,024) 136
ITEM 15
Agenda Packet Page #202

CITY OF CITRUS HEIGHTS, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Continued from previous page:

General Revenues and Other Changes
in Net Position:

Governmental activities:

General Revenues:

Property taxes 946,113 991,552 758,653 339,571 306,250 383,773 638,183 7,538,744 7,872,534 8,139,767 Sales and use tax 15,977,575 15,412,345 15,653,986 12,542,158 12,083,836 13,373,483 14,412,009 14,544,553 13,849,506 13,778,642 Utility users tax 2,810,771 2,881,617 2,932,236 2,739,888 2,650,891 2,717,945 2,794,196 2,974,871 2,732,097 3,077,576 Other taxes 1,601,229 1,616,163 1,600,300 2,225,772 2,019,859 1,412,898 1,807,986 1,551,878 1,450,458 40,865 Shared intergovernmental revenues 7,260,670 7,611,171 8,037,540 8,436,657 8,887,426 9,303,916 9,683,155 10,510,268 11,155,935 13,464,017 Investment earnings 527,734 1,108,551 254,162 32,181 458,727 1,650 - 1,773,829 3,695,776 4,411,069 Gain (loss) on sale of assets - - - - - - - - 60,019 165,476 Transfers - - - - - - - - 5,940 - Other - - - - - - - - - 46,255 Total governmental activities 29,124,092 29,621,399 29,236,877 26,316,227 26,406,989 27,193,665 29,335,529 38,894,143 40,822,265 43,123,667 Business-type activities:

Investment earnings 4,913 452 3,450 49,255 66,401 1,117 (14,531) 27,185 94,538 103,206 Other revenue - - - - - 61,151 58,444 41,705 61,711 - Transfers - - - - - (5,940) - Total business-type activities 4,913 452 3,450 49,255 66,401 62,268 43,913 68,890 150,309 103,206 Total primary government 29,129,005 29,621,851 29,240,327 26,365,482 26,473,390 27,255,933 29,379,442 38,963,033 40,972,574 43,226,873 Changes in Net Position
Governmental activities (8,284,732) (6,735,193) (13,008,307) (10,356,855) (10,607,634) (3,850,978) 9,361,673 5,814,424 7,738,866 19,138,434 Business-type activities (19,714) (36,628) 50,997 78,819 219,949 233,471 348,480 437,197 444,794 148,415 Total primary government (8,304,446) (6,771,821) (12,957,310) (10,278,036) (10,387,685) (3,617,507) 9,710,153 6,251,621 8,183,660 19,286,849 Source: City Administrative Services Department
....
137
ITEM 15
Agenda Packet Page #203

CITY OF CITRUS HEIGHTS, CALIFORNIA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund:

Nonspendable 298,407$ 32,159$ 279,210$ 135,485$ 302,545$ 145,343$ 64,859$ 1,430,808$ 983,660$ 3,781,764$ Restricted 14,613 25,394 21,143 - - - - - - - Committed 18,616,257 4,559,378 4,559,378 4,561,978 4,486,978 4,486,978 4,486,978 4,486,978 4,486,978 4,486,978 Unassigned 146,734 1,101,504 314,061 1,833,065 490,603 4,258,505 7,380,554 17,940,110 29,577,236 32,662,707 Total general fund 19,076,011 5,718,435 5,173,792 6,530,528 5,280,126 8,890,826 11,932,391 23,857,896 35,047,874 40,931,449 All Other Governmental Funds:

Nonspendable - - 2,784,600 2,285,330 1,980 2,345 8,083 6,231 8,258 19,299 Restricted 9,723,591 10,067,839 8,702,340 13,375,587 20,775,754 25,779,873 25,868,240 23,418,902 26,384,509 24,316,007 Committed - - - - - - - - - - Assigned 928,925 894,318 1,374,838 945,767 1,141,407 1,172,209 1,467,001 5,642,970 5,931,383 5,797,517 Unassigned (deficit) (122,707) (132,660) (262,719) (181,979) (140,450) (415,934) (32,428) (1,253,269) (1,346,942) (2,744,830) Total all other governmental funds 10,529,809 10,829,497 12,599,059 16,424,705 21,778,691 26,538,493 27,310,896 27,814,834 30,977,208 27,387,993 Total all governmental funds 29,605,820$ 16,547,932 $ 17,772,851 $ 22,955,233 $ 27,058,817 $ 35,429,319 $ 39,243,287 $ 51,672,730 $ 66,025,082 $ 68,319,442$ Source: City Administrative Services Department
138
ITEM 15
Agenda Packet Page #204

CITY OF CITRUS HEIGHTS, CALIFORNIA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
Revenues: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Taxes and assessments 16,984,351$ 16,631,964$ 16,522,415$ 16,837,829$ 16,252,772$ 17,671,002$ 19,197,868$ 26,581,105$ 25,897,023$ 26,513,706$ Licenses, permits and fees 1,524,848 1,631,147 1,462,504 1,567,925 1,949,980 3,000,422 3,540,116 2,449,287 2,575,555 2,829,747 Fines and forfeitures 1,084,980 1,247,094 1,147,719 1,127,317 1,154,133 1,227,526 1,265,820 1,466,712 1,158,387 1,231,166 Intergovernmental 22,748,760 19,003,009 18,839,531 21,159,815 17,640,156 23,490,200 25,327,254 26,322,994 29,033,652 42,990,674 Use of money and property 874,978 1,398,709 515,517 944,989 761,884 191,732 311,632 1,773,829 3,705,786 3,997,907 Charges for services 6,470,344 6,598,162 6,594,424 7,049,858 7,694,919 7,317,943 7,726,053 7,704,911 8,893,053 9,075,607 Contributions 1,807,470 155,409 19,726 26,872 42,369 103,390 4,416 34,002 25,058 36,666 Other revenues 216,226 1,082,642 491,114 1,580,426 1,430,106 328,076 710,956 409,448 225,146 702,632 Total revenues 51,711,957 47,748,136 45,592,950 50,295,031 46,926,319 53,330,291 58,084,115 66,742,288 71,513,660 87,378,105 Expenditures:

General government 4,940,481 5,547,678 5,582,583 6,364,953 6,481,755 8,989,692 8,086,021 8,932,680 9,033,599 10,093,749 Public safety 19,537,621 19,631,973 20,018,189 21,352,292 21,743,031 21,077,282 20,242,145 21,037,886 23,347,516 25,883,918 Public ways and facilities 16,288,336 12,303,244 11,251,339 10,177,443 7,469,779 6,347,685 6,348,281 8,221,805 10,504,647 12,989,527 Culture and recreation 667,099 724,750 704,866 673,253 787,545 478,510 961,940 777,710 1,111,682 1,144,199 Economic development 223,753 405,901 298,781 289,440 927,770 907,684 576,313 823,900 1,079,867 1,039,437 Community enhancements 4,425,724 4,714,654 4,306,626 3,920,072 3,708,522 3,573,622 4,139,680 3,918,990 2,491,290 3,609,306 Capital outlay 7,036,250 4,144,138 2,318,319 5,103,347 4,060,450 3,737,928 10,695,156 10,554,732 12,405,709 31,712,905 Debt service:

Lease principal 1 - 13,749,031 - - - - - - - - Principal 2 - - - - - 76,169 3,583,049 112,258 956,128 92,245 Interest and fiscal charges - - - 70,962 76,664 154,731 184,839 21,780 20,892 113,068 Total expenditures 53,119,264 61,221,369 44,480,703 47,951,762 45,255,516 45,343,303 54,817,424 54,401,741 60,951,330 86,678,354 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures (1,407,307)$ ########## 1,112,247 $ 2,343,269 $ 1,670,803 $ 7,986,988 $ 3,266,691 $ 12,340,547 $ 10,562,330 $ 699,751$ Other financing sources (uses):

Extraordinary loss on dissolution of redevelopmen - - - - - - - - - - Tax sharing payments - - - - - - - - - - Loan issued - - - - - 347,268 396,601 - 779,744 - Draw on line of credit - - - 50,001 3,470,000 - - - - - Debt issuance proceeds - - - - - - - 18,918 2,944,320 1,429,133 Proceeds from sale of capital assets 14,940 415,345 112,672 32,181 48,112 36,246 150,676 69,978 60,019 165,476 Transfers in 2,514,601 15,236,333 1,514,764 320,356 4,176,222 2,148,207 11,428,316 2,487,416 3,711,066 13,198,244 Transfers out (2,514,601) (15,236,333) (1,514,764) (320,356) (4,176,222) (2,148,207) (11,428,316) (2,487,416) (3,705,126) (13,198,244) Total other financing sources (uses) 14,940 415,345 112,672 82,182 3,518,112 383,514 547,277 88,896 3,790,023 1,594,609 Net change in fund balances (1,392,367)$ ########## 1,224,919 $ 2,425,451 $ 5,188,915 $ 8,370,502 $ 3,813,968 $ 12,429,443 $ 14,352,353 $ 2,294,360$

0.00% 24.09% 0.00% 0.17% 0.19% 0.55% 8.54% 0.31% 2.01% 0.21% Due to the purchase, the capital lease liability was extinguished.

Source: City Administrative Services Department
Debt service as a percentage of noncapital
expenditures
2 In 2022, the City repaid the outstanding revolving line of credit balance. 1 In 2015, the City entered into a capital lease payable agreement for a new City Hall building and utility yard. In 2017, the City exercised its option to p urchase the City Hall building and utility yard by making payments totaling $13,749,031.
139
ITEM 15
Agenda Packet Page #205

CITY OF CITRUS HEIGHTS, CALIFORNIA
Assessed Value and Actual Value of Taxable Property
For the Last Ten Fiscal Years
(In thousands of dollars)
Total Real Table Total
Residential Commercial Industrial Other Secured Unsecured Total Estimated Total Direct Less: Assessed Direct Property Property Property Property Property Property Assessed Full Market Tax Rate Secured Unsecured Exceptions Value Tax Rate FY 15-16 4,904,511,049 959,298,396 25,096,287 51,406,049 5,940,311,781 108,308,288 6,048,620,069 6,048,620,069 0.08 505,368,074 38,951,421 378,000 543,941,495 0.084% FY 16-17 5,123,458,670 995,114,927 26,777,317 48,869,328 6,194,220,242 127,456,727 6,321,676,969 6,321,676,969 0.08 515,200,283 39,266,230 371,000 554,095,513 0.084% FY 17-18 5,436,063,995 1,071,328,921 27,361,771 44,407,597 6,579,162,284 125,883,733 6,705,046,017 6,705,046,017 0.08 532,993,401 36,254,710 322,000 568,926,111 0.084% FY 18-19 5,759,511,551 1,094,930,040 31,158,659 47,155,289 6,932,755,539 131,198,394 7,063,953,933 7,195,152,327 0.08 - - - - 0.000% FY 19-20 6,063,826,197 1,109,893,409 28,709,180 54,462,552 7,256,891,338 129,920,746 7,386,812,084 7,516,732,830 0.08 - - - - 0.000% FY 20-21 6,368,025,400 1,142,931,179 29,220,643 63,644,340 7,603,821,562 133,241,641 7,737,063,203 7,870,304,844 0.08 - - - - 0.000% FY 21-22 6,676,628,818 1,104,565,332 29,522,369 86,849,964 7,897,566,483 126,225,115 8,023,791,598 8,150,016,713 0.08 - - - - 0.000% FY 22-23 7,361,001,973 1,115,342,553 30,218,661 68,349,526 8,574,912,713 148,741,399 8,723,654,112 8,872,395,511 0.08 - - - - 0.000% FY 23-
24 7,849,768,253 1,185,142,926 43,954,106 48,509,131 9,127,374,416 157,194,022 9,284,568,438 9,441,762,460 0.08 - - - - 0.000% FY 24-25 8,198,736,512 1,199,170,833 44,840,325 47,713,870 9,490,461,540 164,565,398 9,655,026,938 9,819,592,336 0.08 - - - - 0.000% Source: Sacramento County Assessor 2015/16 - 2024/25 Combined Tax Rolls Source: HDL Coren & Cone
* Due to a Revenue Neutrality law, the City has entered into a contract with the County, whereby the County will keep all of th e City's property tax revenue through June 2022. Values are provided by the County.

City * Redevelopment Agency
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed val ue of the property being taxed. Each year, the assessed value may be increased by an "inflation factor" (limited to a maximum of 2%). With few expectations, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is assessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 140
ITEM 15
Agenda Packet Page #206

CITY OF CITRUS HEIGHTS, CALIFORNIA
Direct and Overlapping Tax Rates
For the last ten fiscal years
(Rate per $100 of taxable value)
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Basic Levy 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Grant Joint High 0.03060 0.06480 0.01460 0.03320 0.02940 0.02000 0.02360 0.01200 0.01460 0.01100 Los Rios College Gob 0.00910 0.01410 0.01300 0.01310 0.02320 0.02230 0.02490 0.02260 0.01920 0.02000 North Sacto Elementary Gob 0.01260 0.01680 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Rio Linda Elementary Bond 0.04890 0.05210 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 San Juan Unified 0.15470 0.15220 0.21150 0.19930 0.17930 0.18090 0.18870 0.18730 0.17320 0.17960 Twin Rivers Elementary Sfid 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.03410 0.03380 Twin Rivers Unified 0.03890 0.04810 0.14430 0.07340 0.10330 0.10610 0.09840 0.09280 0.10700 0.07900 Total Direct & Overlapping2 Tax Rates 1.29480 1.34810 1.38340 1.31900 1.33520 1.32930 1.33560 1.31470 1.34810 1.32340 City's Share of 1% Levy Per Prop 13 3 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 Total Direct Rate5 0.07735 0.07759 0.08140 0.07837 0.07908 0.07943 0.07966 0.08021 0.08061 0.08082 Source: Sacramento County Assessor 2015/16 - 2024/25 Tax Rate Table Source: HDL Coren & Cone
4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
1 In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
3 City's Share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF general fund tax shifts are unknown and may not be subtracted from the City's share. 5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
141
ITEM 15
Agenda Packet Page #207

CITY OF CITRUS HEIGHTS, CALIFORNIA
Principal Property Tax Payers
Current Year and 9 Years Ago
Assessed % of Assessed % of
Property Owner Valuation Rank Total Valuation Rank Total KW Fund VI Autumn Ridge LLC 124,848,000$ 1 1.32%
Montage Apartments Properties Owners LL 85,883,361 2 0.90% 53,447,826 2 0.90% Birdcage GRF2 LLC 73,649,004 3 0.78%
29SC Arcade LP 56,181,600 4 0.59%
Lakeview Gold 52,311,430 5 0.55%
MG Atwood Apartments Ria LLC 51,401,365 6 0.54%
Mitchell Sippola LP 45,692,045 7 0.48% 39,588,487 5 0.67% Ethan Conrad 40,445,629 8 0.43%
Gallery Park LLC Westfal LLC Et Al 35,586,084 9 0.37% MPG XII Sunrise Village LLC 32,619,006 10 0.34%
Walmart/Sams 21,835,000 8 0.37%
MP Birdcage Marketplace LLC 61,235,957 1 1.03%
Sunrise Mall Property LLC 48,367,956 3 0.81%
J M Marlow Family Trust 44,616,347 4 0.75%
Fairfield Sunrise LLC 30,387,054 6 0.51%
Oakmont Properties 28,217,768 7 0.48%
Marshall Field Stores 23,889,135 9 0.40%
Costco Wholesale Copr 22,481,522 10 0.38%
598,617,524$ 6.31% 374,067,052 $ 6.30%
Source: Sacramento County Assessor 2015/16 - 2024/25 Tax Rate Table Source: HDL Coren & Cone
2024-2025 2015-2016
142
ITEM 15
Agenda Packet Page #208

CITY OF CITRUS HEIGHTS, CALIFORNIA
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Fiscal Year City Sacramento STA State of Total Sales
Ended June 30 Direct Rate County Measure A California Tax Rate 2016 1.00 0.25 0.50 6.25 8.00%
2017 1.00 0.25 0.50 6.00 7.75%
2018 1.00 0.25 0.50 6.00 7.75%
2019 1.00 0.25 0.50 6.00 7.75%
2020 1.00 0.25 0.50 6.00 7.75%
2021 1.00 0.25 0.50 6.00 7.75%
2022 1.00 0.25 0.50 6.00 7.75%
2023 1.00 0.25 0.50 6.00 7.75%
2024 1.00 0.25 0.50 6.00 7.75%
2025 1.00 0.25 0.50 6.00 7.75%
Source: California Department of Tax and Fee Administration 143
ITEM 15
Agenda Packet Page #209

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Top 25 Sales Tax Remitters (listed in alphabetical order) Current Year and Nine Years Ago
Fiscal Year Ended June 30, 2025
2024 2015
(represents 51.19% of total sales tax) (represents 51.32% of total sales tax) 76 Market A&A Stepping Stone Manufacturing
Arco AM PM Arco AM PM
Arco AM PM Arco AM PM
Best Buy AT&T Mobility
Burlington Barnes & Noble
Citrus Heights Shell Best Buy
Contractors' Warehouse Burlington
Costco Costco
El Tapatio Mexican Cuisine JC Penney
Future Honda Kmart
Green Acres Nursery & Supply Kohls
Hibachi Buffet Shushi Grill Lowes
Kwik Serv Macy's
Lowes Maita Honda
Macy's Marshalls
Marshalls McDonalds
McDonalds Ross
Pastor Auto Care Sams Club w/Fuel
Quik Stop Sears
Ross Sears
Sams Club w/Fuel Shell
Siteone Landscape Supply Target
Target Toys R Us
Texas Roadhouse Walgreens
Walmart Supercenter Walmart Supercenter
* Firms Listed Alphabetically
Period: January 2024 thru December 2024 Period: January 2015 thru December 2015 Source: The HDL Companies, State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office
Note: The lists above includes both public and private ent ities and therefore the dollar values have been omitted because the information is not public information and is not provided by HDL. Rankings are determined by the sales dollar volume.
144
ITEM 15
Agenda Packet Page #210

CITY OF CITRUS HEIGHTS, CALIFORNIA
Property Tax Levies and Collections
For the last ten fiscal years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year* Amount of Levy Years ** Amount of Levy 2016 4,801,882 4,662,052 100% - 4,662,052 100% 2017 4,960,511 4,774,258 100% - 4,774,258 100% 2018 5,286,616 4,885,101 100% - 4,885,101 100% 2019 5,593,319 5,593,319 100% - 5,593,319 100% 2020 5,888,260 5,888,260 100% - 5,888,260 100% 2021 6,203,470 6,203,470 100% - 6,203,470 100% 2022 6,521,191 6,521,191 100% - 6,521,191 100% 2023 7,147,126 7,147,126 100% - 7,147,126 100% 2024 7,494,038 7,494,038 100% - 7,494,038 100% 2025 7,826,637 7,826,637 100% - 7,826,637 100% Source: Sacramento County Auditor-Controller's Office
Collected within the
Fiscal Year of the Levy Total Collections to Date
* Due to a Revenue Neutrality law, the City entered into a con tract with the County of Sacramento (County), whereby the County kept all of the City's property tax revenue through J une 2022. Numbers through Fiscal Year 2022 were provided by the County.
** The City participates in a Teeter Plan (Plan) with the County. Any delinquencies at June 30 are purchased by the County and remited to the City. As part of the Plan, the County retains the penalties and interest on the delinquent taxes. 145
ITEM 15
Agenda Packet Page #211

CITY OF CITRUS HEIGHTS, CALIFORNIA
Direct and Overlapping Debt
Current Year
June 30, 2025
2024-25 Assessed Valuation $9,660,980,372
City's Share
Total Debt of Debt
OVERLAPPING TAX & ASSESSMENT DEBT: 6/30/2025 % Applicable 1 6/30/2025 Los Rios Community College District 356,335,000 3.456% 12,314,938$ San Juan Unified School District 673,593,387 19.665 132,462,140 Twin Rivers Unified School District 73,360,000 0.200 146,720 Twin Rivers Unified School District (former Grant Joint UHSD) 272,060,605 0.158 429,856 CA Statewide Communities Development Authority Assessment District No. 19 4,299,000 100.000 4,299,000 TOTAL OVERLAPPING TAX & ASSESSMENT DEBT 149,652,654 $
DIRECT & OVERLAPPING GENERAL FUND DEBT:

Sacramento County General Fund Obligations 91,907,145 4.142% 3,806,794$ Sacramento County Pension Obligation Bonds 308,630,000 4.142 12,783,455 Sacramento Board of Education Certificates of Participation 1,120,000 4.142 46,390 City of Citrus Heights Loans 821,894 100.000 821,894 City of Citrus Heights Subscription Liabilities 3,507,375 100.000 3,507,375 City of Citrus Heights Lease Liabilities 10,184 100.000 10,184 Sacramento Metropolitan Fire District General Fund Obligations 6,903,000 10.275 709,283 Sacramento Metropolitan Fire District Pension Obligations Bonds 20,200,000 10.275 2,075,550 Orangevale Recreation and Park District Certificates of Participation 781,000 0.037 289 Sunrise Recreation and Park District Certificates of Participation 4,355,000 54.676 2,381,140 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 26,142,354 Less: Sacramento County supported obligations 395,857
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 25,746,497$ TOTAL DIRECT DEBT 4,339,453
TOTAL GROSS OVERLAPPING DEBT 171,455,555
TOTAL NET OVERLAPPING DEBT 171,059,698
GROSS COMBINED TOTAL DEBT 175,795,008 2
NET COMBINED TOTAL DEBT 175,399,151
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01549 Direct Debit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0004 Gross Combined Total Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01820 Net Combined Total Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01816 Source: California Municipal Statistics, Inc.

City Administrative Services Department
(1)The percentage of overlapping debt applicable to the city is estimated u sing taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. 146
ITEM 15
Agenda Packet Page #212

CITY OF CITRUS HEIGHTS, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed Value 5,860,105,879$ 6,048,620,069 $ 6,321,676,969 $ 6,705,046,017 $ 7,063,953,933 $ 7,386,812,084 $ 7,737,063,203 $ 8,574,912,713 $ 9,127,374,416 $ 9,490,461,540$ Conversion Percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted Assessed Value 1,465,026,470 1,512,155,017 1,580,419,242 1,676,261,504 1,765,988,483 1,846,703,021 1,934,265,801 2,143,728,178 2,281,843,604 2,372,615,385 Debt Limit Percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 219,753,970 226,823,253 237,062,886 251,439,226 264,898,272 277,005,453 290,139,870 321,559,227 342,276,541 355,892,308 Total net debt applicable to limit - - - - - - - - - - Legal debt margin 219,753,970$ 226,823,253 $ 237,062,886 $ 251,439,226 $ 264,898,272 $ 277,005,453 $ 290,139,870 $ 321,559,227 $ 342,276,541 $ 355,892,308$ Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Source: City Administrative Services Department
The City does not have any outstanding general obligation debt subject to the limit.

Notes: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 147
ITEM 15
Agenda Packet Page #213

CITY OF CITRUS HEIGHTS, CALIFORNIA
Ratios of Outstanding Debt by Type - Government Activities Last Ten Calendar Years
Fiscal Year Subscription Percentage of
Ended June 30 Debt Liabilities Personal Income Per Capita 2016 13,749,031 - 655.61% 158.01 2017 - - - - 2018 - - - - 2019 50,001 - 1.96% 0.57 2020 3,520,001 - 130.45% 40.09 2021 3,791,100 - 134.40% 43.90 2022 604,652 - 20.42% 7.04 2023 522,606 149,952 21.61% 6.11
2024 713,664 2,726,830 107.87% 8.27
2025 821,894 3,507,375 n/a (1) n/a (1)
148
ITEM 15
Agenda Packet Page #214

CITY OF CITRUS HEIGHTS, CALIFORNIA
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Personal Income Per Capita Unemployment Median % of Pop 25+ w/ % of Pop 25+ w/ Year Population (In Thousands) Personal Income Rate Age High School Degree Bachelor's Degree 2015 86,291 $2,109,711 $24,448 6.3% 37.8 89.2% 18.9% 2016 87,013 $2,097,135 $24,101 5.6% 37.3 89.9% 18.8% 2017 87,731 $2,193,100 $24,997 4.5% 37.7 89.6% 19.0% 2018 88,095 $2,377,290 $26,985 3.7% 37.6 90.2% 20.0% 2019 87,811 $2,548,891 $29,027 3.5% 37.7 90.2% 20.7% 2020 87,811 $2,698,425 $30,729 9.0% 38.0 90.3% 20.4% 2021 86,367 $2,820,690 $32,659 6.6% 37.6 90.2% 21.6% 2022 85,837 $2,961,101 $34,496 3.8% 37.9 90.4% 22.4% 2023 85,554 $3,112,386 $36,379 4.2% 38.1 90.6% 22.0% 2024 * 86,280 $3,189,435 $36,966 4.7% 38.3 90.7% 22.2% Notes and Data Sources:

Information collected by: HDL Coren & Cone
Population: California State Department of Finance. Unemployment Data: California Employment Development Department Income, Age and Education Data: US Census Bureau, most recent American Community Survey 149
ITEM 15
Agenda Packet Page #215

CITY OF CITRUS HEIGHTS, CALIFORNIA
Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
of Top 10 of Top 10
Employer Employees Rank Employment Employees Rank Employment State of California 118,943 1 57.90% 73,676 1 39.55% UC Davis 16,617 2 8.09%
Sacramento County 13,653 3 6.65% 11,950 2 6.41%
Kaiser Permanente 12,624 4 6.15% 8,885 6 4.77%
U.S. Government 10,568 5 5.14% 10,007 4 5.37%
Sutter Health Sacramento Sierra Region 10,129 6 4.93% 8,905 5 4.78% Dignity Health 7,353 7 3.58% 7,853 7 4.22%
San Juan Unified School District 5,499 8 2.68% City of Sacramento 5,029 9 2.45% 43,000 10 23.08% Apple 5,000 2.43%
UC Davis Health System 10,145 3 5.45%
Elk Grove Unified School District 5,863 9 3.15%
Intel 6,000 8 3.22%
Total 205,415 100.00% 186,284 100.00%
Notes:

Source: Sacramento Business Journal
2025* 2016*
* Information presented is for the Largest Sacramento County Employers and Largest Private-Sector Employers, since separate data is not available for the City of Citrus Heights. Companies surveyed for this list have offices in Sacramento County. Not all responded to inquires. 150
ITEM 15
Agenda Packet Page #216

CITY OF CITRUS HEIGHTS, CALIFORNIA
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 25 28 28 23 31 31 27 25 26 22
Public safety 144 144 151 149 149 133 138 147 149 151
Public works 20 18 16 28 16 19 17 24 28 21
Community development 18 18 18 15 14 13 12 12 13 13
Economic development 000000033 3
Event center 1 4 1 19864844 14
Total 221 219 222 223 216 200 202 215 223 224
Source: City Administative Services Department
151
ITEM 15
Agenda Packet Page #217

CITY OF CITRUS HEIGHTS, CALIFORNIA
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police
Arrests 2,990 2730 2452 2249 1,966 2,054 1,411 1,538 2,559 3,435 Parking citations issued 520 650 908 906 581 393 681 1,122 1,813 876 Total police actions 3,510 3,380 3,360 3,155 2,547 2,447 2,092 2,660 4,372 4,311 Fire ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Public works
Street resurfacing (miles) 4 1 0 020630 0
Parks and recreation ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Water ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sewer ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Building:

Commercial/Industrial Construction 1 2 2 1 2 15210 2
Residential Construction 28 9 17 26 24 140 189 43 14 55 Total building actions 40 11 18 28 25 145 191 44 14 57
** Services are provided by Special Districts, which are separate from the City. Information not available.

Source: City Administrative Services Department
152
ITEM 15
Agenda Packet Page #218

CITY OF CITRUS HEIGHTS, CALIFORNIA
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police:

Stations 1 1 1111 1 11 1
Fire *
Fire stations 4 4 4444 4 44 5
Public works
Streets (miles) 237 237 237 214 237 237 242 242 242 242 Streetlights 4497 4480 4702 4714 4736 4741 4810 4810 4810 4810 Parks and recreation
Parks * 15 15 15 15 17 17 17 17 17 14
Community centers 3 3 3333 3 33 3
Water *
Water mains (miles) 225.00 225.00 225.00 22 5.00 340.00 340.00 36 6.66 366.66 367 367.00 Daily average consumption in MGD ** 12.00 12. 00 12.00 12.00 14.05 13.42 13.53 12.62 12.90 12.90 Sewer *
Sanitary sewers (miles) 235 235 235 235 238 240 240 240 240 240 Number of pump stations 1 1 1 1 2 2 2 2 2 2
Building
Commercial/Industrial Construction Value 22,135,000$ 7,105,826 $ 680,000 $ 9,950,000 $ 875,001 $ 591,141 $ 11,269,708$ 340,000 $ - $ 270,000$ Residential Construction Value 6,898,647 6,306,226 2,753,290 4,495,473 2,720,549 1,047,021 50,274,112 6,919,674 2,123,278 7,330,619 * Services are provided by Special Districts, which are separate from the City. The data provided are for those portions of the system located within the City of Citrus Heights. ** MGD = Million Gallons per Day.

Source: City Administrative Services Department
153
ITEM 15
Agenda Packet Page #219
7+,63$*(,17(17,21$//</()7%/$1.
154
ITEM 15
Agenda Packet Page #220

P O P U L A R A N N U A L

F I N A N C I A L R E P O R T

F O R F I S C A L Y E A R E N D E D
J u n e 3 0 , 2 0 2 5

P R E P A R E D F O R
C i t y o f C i t r u s H e i g h t s , C A

P R E P A R E D B Y
F i n a n c e ,
A D i v i s i o n o f t h e A d mi n i s t r a t i v e S e r v i c e s D e p a r t me n t
ITEM 15
Agenda Packet Page #221
View the ACFR
on the City's
website
http://www.citrusheights.net/
213/Financial-Reporting-
Budget-CIP

M E E T T H E C I T Y C O U N C I L

A B O U T C I T R U S H E I G H T S

N O T A B L E E V E N T S

E X P L A N A T I O N O F A C C O U N T I N G

T E R M S

N E T P O S I T I O N S T A T E M E N T

S T A T E M E N T O F A C T I V I T I E S

G E N E R A L F U N D

C I T Y D E M O G R A P H I C S &

S T A T I S T I C S

R E V E N U E S

M E S S A G E F R O M T H E

A D M I N I S T R A T I V E S E R V I C E S

D I R E C T O R

E X P E N D I T U R E S
1 2
3 4
5 6
7 8
9 1 0
1 1

T A B L E O F C O N T E N T S
ITEM 15
Agenda Packet Page #222

M E S S A G E F R O M T H E

D I R E C T O R
1 February 28, 2026
Dear Citizens of Citrus Heights:

We’d love to hear from you! If you have any
comments, questions, or suggestions,
reach out to the City of Citrus Heights
Administrative Services Department at
[email protected] or call (916) 725-
2448.

Thank you for taking the time to stay
informed about your city’s finances. We
appreciate your engagement and support!
I’m excited to share the City of Citrus Heights’ fifth Popular Annual Financial Report (PAFR)! Also known as the Citizen’s Report, this document is designed to give you a clear, easy-to-read snapshot of our City's financial health.

Inside, you'll find a breakdown of where our revenue comes from, how we invest those dollars back into our community, and a summary of the City's financial position for the fiscal year ending June 30, 2025 (FY25).

In the Finance Division of the Administrative Services Department, we are passionate about transparency and fiscal accountability. This report is part of our commitment to keeping you informed and engaged in the financial decisions that shape our city.

We’re also thrilled to announce that our 2024 PAFR received the Certificate of Achievement in Popular Annual Financial Reporting from the Government Finance Officers Association (GFOA)— marking the third consecutive year we've earned this honor! Administrative Services Director
Susan K. Talwar
ITEM 15
Agenda Packet Page #223

M E E T T H E C I T Y C O U N C I L
2 The Citrus Heights City Council consists of five members, elected to four-year overlapping terms in district-based elections. Council members must be residents of the City. The positions of Mayor and Vice Mayor are chosen by the City Council through policy direction determined by the City Council. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions.

The City Council responsibilities include:

Provides policy direction,
Establishes goals,
Sets priorities for the City government,
Decides on land use within its borders, including the General Plan, and Appoints the City Manager, City Attorney, and all members of advisory boards and commissions.

Ashley Feeney
City Manager
Susan Talwar
Administrative Services
Director
Casey Kempenaar
Community
Development Director
Meghan Huber
Economic Development &
Community Engagement
Director
Regina Cave
General Services Director
Alexander Turcotte
Chief of Police
Ryan R. Jones
City Attorney
ITEM 15
Agenda Packet Page #224
A B O U T C I T R U S H E I G H T S 3
Citrus Heights is located 15 miles northeast of California's capital of Sacramento. It neighbors the City of Roseville to the North, Orangevale to the East, Fair Oaks and
Carmichael to the South, and Antelope to the west.

Interstate 80 runs through Citrus Heights attracting
both Sacramento/San Francisco and Tahoe bound
travelers. It occupies approximately 14.2 square miles
and is 98% developed with two large commercial
corridors and a well established residential community.

The city is rooted back to the 1800's but didn't grow
significantly until gold was discovered in the foothills of the Sierra Mountains. The construction of the
Transcontinental Railroad and Lincoln Highway
brought a new wave of travelers into the area. Citrus
Heights remained predominantly rural until the 1960's
when it began its emergence as a regionally important
retail destination with the development of the Sunrise
Mall and Birdcage Walk shopping centers.

The path to incorporation started in 1984 when citizen- members of the local chamber of commerce circulated
petitions and received signatures forming the Citrus
Heights Incorporation Project (CHIP). During the next
several years, CHIP fought a long legal battle that
stretched as far as the Supreme Court with the County
of Sacramento to place the City’s incorporation on the
ballot.

It wasn’t until 1994 that an agreement was reached with the County. It was the first agreement for cityhood in
California to include terms from a 1992 Senate bill, SB 1559, which required communities to share tax dollars
with county governments. The agreement required the
City of Citrus Heights to give its property tax revenues to the County of Sacramento for the first 25 years of its
incorporation.

Voters approved the measure to incorporate on
November 5, 1996 and Citrus Heights became a City
effective January 1, 1997. Citrus Heights received the first full allocation of property taxes in fiscal year 2023.

ITEM 15
Agenda Packet Page #225
Total Population
86,280
Median Age of Citizens

38.3 High School
Degree
Bachelor's
Degree

22.2%

90.7%

4.7%
Unemployment
Rate
Average House
Sales Value
$461,086
Average Income
per person
$36,966
Property Tax Distribution

D E M O G R A P H I C S &

S T A T I S T I C S
4 20202021202220232024
Population Growth Over Time
Information collected by HDL Coren & Cone
Sales Tax Rate,

7.75%
STA Measure A, 0.50%
Sacramento County, 0.25%
State of California 6.00%
City Direct Rate 1.00%
ITEM 15
Agenda Packet Page #226
Habitat for Humanity
Launched the Home Repair
Grant Program Supporting
low-income mobile home
households with health and
safety repairs.

N O T A B L E E V E N T S5
Began New partnership with
local Sacramento County
Bradshaw Animal Shelter and
expanded animal-related
services.

Animal Serivces
Helen Putnam Award
Event Center
Rebranded the Community
Center to the Citrus Heights
Event Center and celebrated
with a ribbon cutting
Distinguished Service Medals
were awarded to Citrus
Heights PD Ofc. Hayden
LaCurelle, Ofc. Sheldon
Hanson, and Ofc. Christopher
Edwards.

Home Repair Grants
Awarded American Public
Works Association Project of
the Year for Arcade Cripple
Creek Trails
Approved and broke ground
on 26 new homes along
Sayonara Drive in
partnership with Habitat for
Humanity.

Sunrise Blvd
Resurfaced Sunrise Boulevard
from Madison Ave to
Greenback Lane to improve
safety and ride quality.

Distinguished Service
Public Works Award
Awarded Helen Pitnam Award
for Citrus Heights’
Beautification Crew Program
and Citrus Heights Cares
Campaign.

ITEM 15
Agenda Packet Page #227

E X P L A N A T I O N O F

A C C O U N T I N G T E R M S
Accrual Basis Accounting:

Recognizes revenues when earned and
expenses when incurred, regardless of
when cash changes hands, providing a
more accurate view of the city’s
financial performance and position.

Business-type activities:

City services that are supported by
charges paid by users based on the
amount of the service they use.

Deferred Inflows:

Represents an acquisition of net assets
by the City that is applicable to a future
reporting period.

Deferred Outflows:

Represents a consumption of net assets
by the City that is applicable to a future
reporting period.

Fund balance:

Governmental fund equity (assets
minus liabilities) is classified as Fund
Balance and displayed as
Nonspendable, Restricted, Committed,
Assigned, or Unassigned.
6 Governmental activities:

The City’s basic services that are supported
by general City revenues are considered
governmental activities, including general
government, community development,
economic development, public safety,
public improvements, etc.

Net investment in Capital Assets:

Represents the difference between the
amount paid for capital assets (such as
equipment and buildings), the
accumulated depreciation of those assets,
and any outstanding debt used to pay for
them.

Nonspendable:

Amounts that are not in a spendable form
or are required to be maintained intact.

Restricted:

Funds that are not available for City use
because they must be used for a specific
purpose or project as required by law or
regulation.

Unassigned:

Includes all spendable amounts not
contained in the other classifications
Unrestricted:

The remaining balance available for use
that is not invested capital assets or
restricted.

ITEM 15
Agenda Packet Page #228
Net Position Over Time
N E T P O S I T I O N S T A T E M E N T7
The Statement of Net Position provides information about the financial position of the City as a whole; much like a balance sheet does for a corporation. It represents the difference between all of its assets (everything the City owns) and its liabilities (everything the City owes). It is an indication of the City’s financial health at the end of each fiscal year.

Unrestricted net position can be used to
finance day-to-day operations without
constraints established by debt covenants
or other legal requirements. The City had
$26,819,528 of unrestricted net position as of
June 30, 2025, which is an increase of
$2,849,705. While unrestricted net position
is technically unrestricted, much of the
amount is committed for a specific use.

ITEM 15
Agenda Packet Page #229
The Statement of Activities reflects the City's fiscal year revenues and costs for governmental activities and business-type activities. The net revenues are broken out by program revenue (i.e. charges for services, operating and capital contributions, and grants) and general revenues (i.e. various tax revenue and shared intergovernmental revenues). The net costs reflect the financial burden that was placed on the City's taxpayers by each of the programs. A summary of activities were as follows:
8 S T A T E M E N T O F

A C T I V I T I E S
General
Government
Public Safety
Economic
Development
Culture &
Recreation
Public Ways
& Facilities
Community
Enhancement
Long-term
Debt
Governmental Activities Expenses & Revenue Sources
The large variances from FY24 to FY25 are:

Program Revenue - Increase is due to additional grant funding and operating contributions from outside agencies.

Solid waste revenue - Charges for service and investment earnings increased for the fiscal year.

Interest on long-term debt - increased in FY 2025 due to additional IT subscriptions subject to special accounting standards.

ITEM 15
Agenda Packet Page #230
The fund balance is used to measure
the financial resources available. As
such it is a good measure of the
financial health of the City. At the
fiscal year end on June 30, 2025, the
General Fund's fund balance totaled
$40,931,449, of which $4,486,978 was
committed for reserves and revenue
stabilization. Fund balance in the
General Fund increased by $5,883,575
largely due increased revenue from
grants and contributions to cover
capital and operating costs, and
intergovernmental revenues.

G E N E R A L F U N D 9
The General Fund is the chief operating fund of the City. It is used to account for all revenues and expenditures that are not required to be reported in another fund and is the City's primary fund. The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity.

This increase was higher than we originally budgeted for as well.

The actual total revenues were
$7,994,526 higher than the final
budgeted amount. The largest
variances compared to the budget was
in Intergovernmental Revenues,
Licenses and Permits, and Investment
Revenue. Intergovernmental Revenues
increased due increased grant funding
for the road maintenance. Additionally,
projects that require individuals
licenses or permits experience an
unexpected increase in activity and
investments, which were originally
budgeted conservatively, had higher
than expected returns for the fiscal
year.

While overall expenses came in lower
than budgeted amount, transfers to
the Capital Projects fund were higher
than budgeted amounts.

ITEM 15
Agenda Packet Page #231
Property Tax - Annual receipts for the fiscal year ended June 30, 2025 increased by $267,233 from the prior year as real estate values increased modestly and new homes from the Mitchell Village development were included in the property tax rolls for the first time.

Shared Intergovernmental Revenues - Annual receipts for the fiscal year ended June 30, 2025 increased by $831,226 from the prior year. This amount represents the property tax in-lieu of vehicle license fees
Grants and Contributions - Governmental Activities Operating & Capital - Governmental Activities operating grants and contributions were mainly from public safety street, road, and community enhancement grants that were for maintenance and operations and DOJ for public safety. The increase in capital revenues reflects more projects with active construction than in the prior year, leading to increased capital project expenditures being reimbursed during the fiscal year.

R E V E N U E S
The City’s total revenues for governmental and business-type activities were $88,588,275 for the fiscal year ended June 30, 2025. Approximately 77.6% of the City’s key revenues are generated from four major sources.

Sales Tax - Annual receipts for the fiscal year ended June 30, 2025 decreased by $70,861 from the prior year due to inflationary pressures causing a cutback in consumer spending, in addition to the closure of retail stores located in the City and the continued decline of the Sunrise Mall.
1 0
Four Major Sources of Revenues:

ITEM 15
Agenda Packet Page #232
$ 1,141,315
Economic
Development
General
Government
$ 10,184,057
Public Ways
and Facilities
$ 21,076,523
Public
Safety
$ 26,368,209
Culture &
Recreation
$ 1,185,806
Community
Enhancements
$ 4,389,584
Interest
$ 75,339
2025 Expenses by Function
E X P E N D I T U R E S 1 1
Governmental and business-type activity expenses of the City for the year totaled $70,734,092.

Governmental activity expenses totaled $69,398,544 or 98.11% of total expenses. Business-type activities expenses totaled $1,335,548 during the fiscal year. Public safety costs represented

40.87% of total governmental activities expenses and represented the largest single expense for governmental activities.

Historical Trends of Expenditures
ITEM 15
Agenda Packet Page #233
Contact Us
Join Us
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Citrus Heights, CA 95621
Phone: 916-725-2448
TTY/DD: CA Relay Service 7-1-1
Fax: 916-725-5799
http://www.citrusheights.net/
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ITEM 15
Agenda Packet Page #234

LSLCPAS.COM
January 29, 2026
To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California
We have audited the financial statements of the government al activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Citrus Heights, California (hereafter, the City) for the year ended June 30, 2025. Professional standards requi re that we provide you with information about our responsibilities under generally accept ed auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information rela ted to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 29, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practice
s
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies relat ed to compensated absences by adopting Statement of Governmental Accounting Standar ds (GASB Statement) No. 101, Compensated Absences , in fiscal year 2025.

Accordingly, the cumulative effect of the accounting c hange as of the beginning of the year is reported in the Statement of Activities. 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 finan cial 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 si gnificantly from those expected. The most sensitive estimate affecting the City’s financial statements was:

Managemen
t’s estimate of the net pension liability is based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.

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.

ITEM 15
Agenda Packet Page #235

To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California

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, none of the misstatements detected as a result of audit procedures and corrected by management were material , either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

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 auditors’ 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 dated January 29, 2026.

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 profe ssional standards require the consulting acco untant to check with us to determine that the consultant has all the relevant facts. To our knowledge, ther e 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 the 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.

LSL recommend that user access rights and role configur ations for all financial and operational software systems be administered under the City Manager’s department rath er than the CFO or Finance roles. Centralizing this responsibility within the City Manager’s office will help ensure segregation of duties, reduce the risk of unauthorized changes, and maintain impartial oversight of system ac cess. This approach aligns with best practices for governance and internal control, as it minimizes potential conflicts of in terest and enhances accountability across departments.

Other Matters

We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund and major special reven ue funds, and the required pension schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the me thods 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 finan cial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

ITEM 15
Agenda Packet Page #236

To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California

We were engaged to report on the combining and individual fund statements and 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.

We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financi al statements, and accordingly, we do not express an opinion or provide any assurance on it.

Future GASB Pronouncements

The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2025-2026

GASB Statement No. 103, Financial Reporting Model Improvements.

GASB Statement No. 104, Disclosure of Certain Capital Assets.

Future Projects

Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Subsequent Events.

Restriction on Use

This information is intended solely for the information and use of 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,

Irvine, California

ITEM 15
Agenda Packet Page #237

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTE

RNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayo
r and Members of the City Council
City of Citrus Heights, 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 the City of Citrus Heights, California (hereafter, 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, and have issued our report thereon dated January 29, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statemen ts, 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 misstatem ent 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 co ntrol 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 di rect and material effect on the financial statements.

However, providing an opinion on compliance with thos e 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.

ITEM 15
Agenda Packet Page #238

To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California

Purpose of This Report

The purpose of this report is solely to describe the sc ope 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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
January 29, 2026

ITEM 15
Agenda Packet Page #239

CITY OF CITRUS HEIGHTS, CALIFORNIA
FOR THE YEAR ENDED JUNE 30, 2025 SINGLE AUDIT REPORT
ITEM 15
Agenda Packet Page #240

CITY OF CITRUS HEIGHTS, CALIFORNIA

Single Audit Report

For the Year Ended June 30, 2025
ITEM 15
Agenda Packet Page #241

CITY OF CITRUS HEIGHTS, CALIFORNIA
Single Audit Report
For the Year Ended June 30, 2025
Table of Contents
Page
Numbe
r
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................................................................ 3 Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025 ...................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards .................................................................... 7 Schedule of Findings and Questioned Costs for the
For the Year Ended June 30, 2025 ...................................................................................................... 8 Schedule of Prior Year Findings and Questioned Costs for the For the Year Ended June 30, 2024 ...................................................................................................... 10 ITEM 15
Agenda Packet Page #242

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Citrus Heights, 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 Citrus Heights (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, and have issued our report thereon dated January 29, 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 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.

ITEM 15
Agenda Packet Page #243
To the Honorable Mayo
r and Members of the City Council
City of Citrus Heights, California
Purpose of This Report
The purp
ose 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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
January 29, 2026
2 ITEM 15
Agenda Packet Page #244

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS REQUIRED BY UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Citrus Heights, California (the “City”)’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, ITEM 15
Agenda Packet Page #245

To the Honorable Mayor and Members of the City Council
City of Citrus Heights, California

Government Auditing Standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:

x Exercise professional judgment and maintain professional skepticism throughout the audit.

x Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

x Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

4 ITEM 15
Agenda Packet Page #246
To the Honorable Mayo
r and Members of the City Council
City of Citrus Heights, California
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 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, 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. We issued our report thereon dated January 29, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Irvine, California
March 26, 2026 (Except for the Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance which is dated January 29, 2026)
5 ITEM 15
Agenda Packet Page #247

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
Federal
Assistance Pass-Through Entity Total Federal
Listing Number Identifying Number Expenditures
U.S Department of Housing and Urban Development
Direct Program
Community Development Block Grants/Entitlement Grants Cluster Community Development Block Grants 14.218 N/A 652,633$
Community Development Block Grant Loan (beginning balance) 14.218 N/A 1,348,078 Subtota
l - Assistance Listing 14.218 2,000,711
HOME I
nvestment Partnership Program Loan (beginning balance) 14.239 N/A 178,854 Total De
partment of Housing and Urban Development Programs 2,179,565 U.S. Department of Justice
Direct Programs
Bulletproof Vest Partnership Program 16.607 N/A 8,932
FY23 Pu
blic Safety Partnership and Community Policing Grants 16.710 N/A 423,660 Edward By
rne Memorial Justice Assistance Program 16.738 N/A 46,729 Equitable Sharing P
rogram 16.922 N/A 674
Total U.S. Dep
artment of Justice 479,995
U.S. Department of Transportation
Direct Program
Highway Safety Cluster
Selective Traffic Enforcement Program 20.600 / 20.608 N/A 58,777 Tota
l Highway Safety Cluster 58,777
Passed through California State Transportation Agency,
Department of Transportation
Highway Planning and Construction*
Auburn Blvd-Rusch/Northern Limits 20.205 N4YFFGL4CDX5 7,943,249 San Juan Av
enue 20.205 N4YFFGL4CDX5 2,464,544
Old Auburn Rd 20.205 N4YF
FGL4CDX5 74,648
Arcade Cripple Creek
/ Electric Greenway 20.205 N4YFFGL4CDX5 256,908
Subtota
l - Assistance Listing 20.205 10,739,349
Total U.S. Dep
artment of Transportation 10,798,126
U.S. Department of Treasury
Direct Programs
Equitable Sharing 21.016 N/A 121,106
Coronavirus State and Local Recovery
Funds 21.027 N/A 4,068,250
Total U.S. Department of Treasury 4,189,356
U.S Department of Energy
Direct Program
Energy Efficiency and Conservation Block Grant Program 81.128 N/A 137,060 Total U.S. Department of Energy 137,060
Total Expenditures of Federal Awards 17,784,102$
* Major Program
Note a: Refer to Note 1 to the Schedule of Expenditures of Federal Awards for a description of significant accounting policies used in preparing this schedule.

Note b: There were no federal awards expended in the form of noncash assistance and insurance in effect during the year.

Note c: Total amount provided to subrecipients during the year was $0.

Grantor/Program or Cluster Title
Federal Grantor/Pass-Through
6 ITEM 15
Agenda Packet Page #248

CITY OF CITRUS HEIGHTS, CALIFORNIA
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2025
NOTE 1: SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS
A. Scope of Presentation
The accompanying schedule presents only the
expenditures incurred by the City of Citrus Heights, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as we ll as federal funds received indirectly by the City from a non-federa l agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.

B. Basis of Accounting
The e
xpenditures included in the accompanying schedule were reported on the modified accrual basis of accounting.

Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use de minimis indirect cost rate allowed under the Uniform Guidance.

NOTE 2: LOAN PROGRAMS WITH CONTINUING COMPLIANCE REQUIREMENTS The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs required servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. Current year transactions relating to these programs are included in the Schedule of Expenditures of Federal Awards. In accordance with 2 CFR section 200.502(b), the balance of loan program outstanding June 30, 2025, are as follows:
7 ITEM 15
Agenda Packet Page #249

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025

SECTION I - SUMMARY OF AUDIT

ORS' RESULTS
Financial Statements
Type
of auditors' report issued: Unmodified Opinion
Internal control over financial reporting:
x Material weaknesses identified? yes X no
x Significant deficiencies identified?
yes X none reported
Noncompliance m
aterial to financial
statements noted? yes X no
Federal Aw
ards
Inter
nal control over major programs:
x Material weaknesses identified? yes X no
x Significant deficiencies identified?
yes X none reported
Type
of auditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform
Guidance)? yes X no
Identification
of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster

20.205 High
way Planning and Construction
Dollar threshold used to distinguish
between type A and type B program $750,000
Auditee qualified as low-risk auditee? X yes no 8 ITEM 15
Agenda Packet Page #250

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025

SECTION II - FINANCIAL STATEMENT FINDINGS

No matters were reported.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.
9 ITEM 15
Agenda Packet Page #251

CITY OF CITRUS HEIGHTS, CALIFORNIA
Schedule of Prior Year Findings and Questioned Costs
For the Year Ended June 30, 2024
No matter
s were reported.
10 ITEM 15
Agenda Packet Page #252

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS
Audited Financial Statements
and Compliance Report
June 30, 2025

ITEM 15
Agenda Packet Page #253

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS
Audited Financial Statements
and Compliance Report
June 30, 2025

Audited Financial Statements

Independent Auditor’s Report ................................................................................................................................... 1 Balance Sheets ........................................................................................................................................................... 3 Statements of Revenues, Expenditures and Changes in Fund Balances .................................................................... 4 Notes to Financial Statements ................................................................................................. .................................. 5 Compliance Report

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the Transportation Development Act ............................................................................................. 8

ITEM 15
Agenda Packet Page #254
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Citrus Heights, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanyi ng financial statements of the Transpor tation Development Act Funds (the Funds) of the City of Citrus Heights (the City), as of and for year ended June 30, 2025, and the related notes to the 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 financial position of the Transportation Development Act Funds of the City of Citrus Heights, as of June 30, 2025, and the changes in financial position for the year then ended in accordance w ith accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accept ed 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 responsibilitie s under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial St atements 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 aud it evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis-of-Matter
As discussed in Note B, the financial statements present only the Transportation Development Act Funds of the City of Citrus Heights and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025 and 2024, the changes in financial position, or wher e applicable, its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about wh ether 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.

ITEM 15
Agenda Packet Page #255
To the City Council
City of Citrus Heights, California
2 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 au diting 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 us ed and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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.

Other Matters
Prior Year Comparative Information
We have previously audited the June 30, 2024 Transporta tion Act Funds of the City of Citrus Heights’ financial statements dated March 17, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 is consistent, in a ll material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information
Management has omitted management’s discussion and an alysis and budgetary comparison information that accounting principles generally accepted in the United States of America require to be pr esented to supplement the basic financial statements. Such missing information, 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.

Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated March 5, 2026 on our consideration of the City’s internal control over financ ial reporting related to the Funds and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters, and the Transportation Development Act. 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 re porting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

March 5, 2026

ITEM 15
Agenda Packet Page #256
(Comparative
Purposes
Only)
Transit Non-Transit Total 2024
ASSETS
Cash and investments 462,430 $ 462,430 $ 24,539$ Interest receivable 1,327 83 $ 1,410 1,088 Due from other governments 416,298 416,298 718,433

TOTAL ASSETS 463,757 $ 416,381 $ 880,138 $ 744,060 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts payable 3,879 $ 3,879 $ 6,337$
Salaries and benefits payable 521 521
Due to other governments 35,000 35,000
Due to other funds 121,333 $ 121,333 66,689 TOTAL LIABILITIES 39,400 121,333 160,733 73,026

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 7,799 7,799 323,825

FUND BALANCES
Restricted for transit administration 424,357 424,357 321,582 Restricted for pedestrian and bicycle facilities 287,249 287,249 25,627 TOTAL FUND BALANCES 424,357 287,249 711,606 347,209

TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 463,757 $ 416,381 $ 880,138 $ 744,060 $ The accompanying notes are an integral part of these financial statements. 2025
June 30, 2025

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS

BALANCE SHEETS
(With Prior Year Data For Comparative Purposes Only)
3 ITEM 15
Agenda Packet Page #257
(Comparative
Purposes
Only)
Transit Non-Transit Total 2024

REVENUES
Local Transportation Funds
Pedestrian and bicycle 413,162 $ 413,162 $
Contract administration payment from SacRT 389,253 $ 389,253 394,608 $ Other revenue 125 125
Use of money and property 23,573 1,307 24,880 13,356 TOTAL REVENUES 412,951 414,469 827,420 407,964

EXPENDITURES
Administration 275,176 275,176 250,684
Contract services 35,000 35,000 35,000
Pedestrian and bicycle facilities
TOTAL EXPENDITURES 310,176 310,176 285,684 EXCESS OF REVENUES OVER EXPENDITURES 102,775 414,469 517,244 122,280

OTHER FINANCING SOURCES (USES)
Transfers out - pedestrian and bicycle facilities (152,847) (152,847) (101,713) NET CHANGE IN FUND BALANCES 102,775 261,622 364,397 20,567 Fund balances at beginning of year 321,582 25,627 347,209 326,642 FUND BALANCES AT END OF YEAR 424,357 $ 287,249 $ 711,606 $ 347,209 $ The accompanying notes are an integral part of these financial statements.

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS

STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
For the Year Ended June 30, 2025
(With Prior Year Data For Comparative Purposes Only)
2025
4 ITEM 15
Agenda Packet Page #258

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS

NOTES TO FINANCIAL STATEMENTS
June 30, 2025
5 NOTE A – ORGANIZATION
The City of Citrus Heights (the City) receives funds under the provisions of the Tr ansportation Development Act (TDA) from the Sacramento County Local Transportation Fund (LTF) under Article 3, Section 99234 for pedestrian and bicycle facilities. The City’s Article 3 LTF funds repr esent amounts set aside by th e Sacramento Area Council of Governments (SACOG), the transportation planning agency administering TDA fu nds, to be allocated for pedestrian and bicycle facilities within the jurisdictions of Sacramento County and represent up to 2% of the available funds countywide.

On January 1, 2019, the City’s transit operations were annexed by the Sacramento Regional Transit District (SacRT). As a result of this annexation, beginning in April of 2019, the City’s transit related State Transit Assistance (STA), State of Good Repair (SGR) and LTF funds, with the exception of Article 3 fund s, will be claimed directly from SACOG by SacRT. The transit administration allocation is provided by SacRT and will be adjusted in each future fiscal year to match the percent increase or decr ease in the budgeted TDA apportionment to the City for that fiscal year as compared to the previous year. The City will also continue to receive an apportionment for pedestrian and bicycle facilities under Article 3. The City of Citrus Heights’ Transit Fund and Transportation Development Act Fund (the Funds) are used to account for Transit and Non-transit TDA funds, received by the City.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation: The financial statements of the Transportation Development Act Funds (the Funds) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units.

The Governmental Acc ounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles.

Reporting Entity: The financial statements are intended to present the financial position and results of operations of only those transactions recorded in the Funds. The Funds are included in the financial statements of the City.

Fund Accounting: The accounts of the City are organized on the basis of funds. A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity.

The City utilizes the special revenue fund type of the governmental fund group to account for the activities of the Funds. Special revenue funds are used to account for the proceeds of specifi c revenue sources that are legally restricted to expenditures for specific purposes.

Basis of Accounting: The accounting and financial repor ting treatment applied to a fund is determined by its measurement focus. A special revenue fund is accounted for using a current financial resources measurement focus.

With this measurement focus, only curr ent assets, deferred outflows of resour ces, liabilities and deferred inflows of resources are generally included on the balance sheet. Oper ating statements of these fu nds present increases (i.e., revenues and other financing sources) and decreases (i.e ., expenditures and other financing uses) in net current assets.

The modified accrual basis of accountin g is used by special revenue funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., when they become both measurable and available. “Measurable” means the amount of the transact ion can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which is generally 90 days. TDA revenues are recognized when all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred.

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

ITEM 15
Agenda Packet Page #259

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2025
6 NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Short-term Interfund Receivables/Payable s: During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds” and “due to other funds” on the balance sheet. The “due to other funds” at June 30, 2025 represents payments made for the Transit Fund by another City fund.

Deferred Inflows of Resources: Deferred inflows of resources in governmental funds arise when a potential revenue source does not meet both the “meas urable” and “available” criteria for recognition in the current period. Deferred inflows of resources consisted of reve nues for which all eligibility requirements had been met at year end, but the amounts were not received from the Sacramento County Auditor – Controller’s Office within the 90-day availability period.

Fund Balance: Restrictions of fund balance represent amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers or through enabling legislation. The restrictions of fund balance are according to the provisions of the Transportation Development Act and the purpose of each restriction is indicated by the account title on the face of the balance sheets. Un assigned fund balance is used in governmental funds to report deficit balances due to overspending for specific purposes for which amounts had been restricted, committed or assigned.

Use of Estimates: The preparation of the financial statem ents in conformity with generally accepted accounting principles requires management to make estimates and a ssumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Comparative Financial Statements: The financial statem ents include certain prior-y ear summarized comparative information in total, but not by individual fund. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accountin g principles. Accordingly, such information should be read in conjunction with the Funds’ financial statemen ts for the year ended June 30, 2024, from which the summarized information was derived.

Reclassification: 2024 pedestrian and bicycle expenditures were reclassified as transfer s out to conform to the current presentation. This change had no effect on the total change in fund balance for the year ended June 30, 2024.

NOTE C – CASH AND INVESTMENTS
Investment Policy: The City’s investment policy may be found in the notes to City’s basic financial statements.

Investment in the City’s Investment Pool: The Funds’ cash is held in the City’s investment pool. The City maintains an investment pool and allocates interest to the various funds based upon the average daily cash balances.

Investments held in the City’s investment pool are available on demand to the Funds and are stated at fair value.

Interest Rate Risk: Interest rate risk is the risk that ch anges 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. As of June 30, 2025, the weighted average maturity of the investments contained in the City of Citrus Heights investment pool was approximately 247 days.

Credit Risk: Generally, credit risk is the risk that an issu er 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. The City’s investment pool does not have a rating provided by a nationally recognized statistical rating organization.

ITEM 15
Agenda Packet Page #260

CITY OF CITRUS HEIGHTS

TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2025
7 NOTE C – CASH AND INVESTMENTS (Continued)
Custodial Credit Risk: Custodial risk is the risk that the g overnment will not be able to recover its deposits or the value of its investments that are in the possession of an ou tside party. Custodial credit risk does not apply to a local government’s indirect deposits or investment in securities through the use of government investment pools (such as the City’s investment pool).

NOTE D – DUE FROM OTHER GOVERNMENTS
The due from other governments consists of the following at June 30, 2025:
(Comparative
Purposes
Only)
Transit Non-Transit Total 2024
Transportation Development Act:

Local Transportation Fund
Fiscal Year 2024/25 97,137$ 97,137$
Fiscal Year 2023/24 107,229 107,229 107,229$
Fiscal Year 2022/23 109,253 109,253 109,253
Fiscal Year 2021/22 94,880 94,880 94,880
Fiscal Year 2020/21 7,799 7,799 7,799
Fiscal Year 2019/20 4,664 Sacramento Regional Transit District 394,608 Total due from other governments -$ 416,298$ 416,298 $ 718,433$ 2025

NOTE E – CONCENTRATION
The Funds receive a substantial amount of their support from a statewide retail sales tax from the LTF created by the TDA. A significant reduction in the level of this support, if this were to occu r, may have a significant effect on the Funds’ activities.

ITEM 15
Agenda Packet Page #261
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
8 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

AND THE TRANSPORTATION DEVELOPMENT ACT
To the City Council
City of Citrus Heights, California
We have audited, 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, the financial statements of the City of Citrus Heights’ (the City) Transportation Development Act Funds (the Funds), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Funds’ basic financial statements, and have issued our report thereon dated March 5, 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 pe rforming 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 purpo se 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 a material weakness. However, material weaknesses or signifi cant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Funds’ financial statemen ts 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. Our audit was further made to determine that Transportation Development Act (TDA) funds allocated and received by the City were expended in conformance with the applicable statutes, rules and regulations of the TDA and Section 6666 and 6667 of the California Code of Regulations. 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 or the TDA.

ITEM 15
Agenda Packet Page #262
To the City Council
City of Citrus Heights, California
9 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 and the TDA in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 5, 2026
ITEM 15
Agenda Packet Page #263

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: April 8, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FR
OM: Susan Talwar, Administrative Services Director
Dena Jenkins, Finance Manager
SU
BJECT: Approval of Investment Policy Updates
Recommendation
Staff recommend that the City Council adopt Resolution No. 2026-___, a Resolution of the City Council of the City of Citrus Heights, California, Approving the Investment Policy and delegating authority to the Administrative Services Director to invest funds in accordance with the Investment Policy.

St
rategic Plan Alignment
Thi
s item is in alignment with the following City Council priority:

Goal
: Maintain and Enhance Fiscal Stability while supporting operational excellence.

Fi
scal Impact
Th
ere is no fiscal impact associated with this action.

Ba
ckground and Analysis
The
investment of City funds is governed by California Government Code (Code) sections 53600-53610 and 53646. The City Council periodically reviews the City’s Investment Policy to ensure compliance with the provisions of the Code. The City’s Investment Policy was last updated by the City Council on February 12, 2025. Staff, City Attorney Ryan Jones and City investment services firm Chandler Asset Management completed an annual review of the City’s Investment Policy and is recommending the following modifications:

Ma
in changes to the investment policy with a focus on best practice and legal updates include:

ITEM 16
Agenda Packet Page #264
Subject: Approval of Investment Policy Updates
Date: April 8, 2026

Page 2 of 2 ends

Citrus Heights City Council MeetingsApril 8, 2026

Citrus Heights City Council Meetings
April 8, 2026