Clovis City Council
December 15, 2025

PERRIN-SUNNYSIDE SOUTHEAST REORGANIZATION

ANNEXATION TO THE CITY OF CLOVIS AND

DETACHEMENT FROM THE FRESNO COUNTY

FIRE PROTECTION DISTRICT

LEGAL DESCRIPTION

That portion of The Southwest Quarter and Northwest Quarter of Section 21, in Township 12 South, Range 21 East, Mount Diablo Base and Meridian, described as follows:

Commencing at a point being 30.00 feet North and 20.00 feet East of the Southwest corner of said Section 21, said point being the most Easterly Southeast corner of the Shepherd-Sunnyside Northwest Reorganization, recorded December 19, 2018 as Document No. 2018-0150987, Fresno County Records; thence

(1) North 00°53’28” West along the existing City Limit Line of the City of Clovis and the boundary of said Shepherd-Sunnyside Northwest Reorganization, parallel with and 20.00 East of the West line of said Southwest Quarter, a distance of 1,293.66 feet; thence

(2) North 89°20’24” East, a distance of 20.00 feet to the TRUE POINT OF BEGINNING ; thence

(3) North 00°53’28” West, along a line parallel with and 40.00 feet East of said West line, along said boundary, a distance of 1,308.59 feet; thence

(4) Northeasterly along a tangent curve, along said boundary, concave Southeasterly, having a radius of 15.00 feet, through a central angle of 90°14’50”, a distance of 23.63 feet to the intersection with the North line of said Southwest Quarter; thence

(5) South 89°21’22” West, along the existing City limit line of the City of Clovis and the boundary of the Shepherd-Sunnyside Northwest Reorganization, a distance of 5.10 feet; thence

(6) North 00°54’12” West, along the existing City limit line of the City of Clovis and the boundary of Behymer-Sunnyside Southwest Reorganization, recorded October 14, 2024 as Document No. 2024-0094582, Fresno County Records, a distance of 60.00 feet; thence

Attachment 3
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(7) North 89°21’22” East, parallel with and 60.00 feet North of said North line, a distance of 1,269.70 feet; thence

(8) South 00°53’09” East, along the existing City Limit Line of the City of Clovis, also being the boundary of the Shepherd- Sunnyside Reorganization, recorded August 26, 2024 as Document No. 2024-0077001, Fresno County Records, a distance of 1,383.30 feet; thence

(9) South 89°20’24” West, along last said boundary, a distance of 1,279.53 feet to the TRUE POINT OF BEGINNING .

Contains 40.62 acres more or less
Dated: December 9, 2025
Revised:

For assessment purposes only. This description of land is not a legal property description as defined in the Subdivision Map Act and may not be used as the basis for an offer for sale of the land described.
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1 FOR THE BENEFIT OF THE CITY OF CLOVIS

FREE RECORDING IN ACCORDANCE WITH CALIFORNIA
GOVERNMENT CODE SECTIONS 6103 AND 27383

RECORDING REQUESTED BY, AND
WHEN RECORDED, MAIL TO:

City of Clovis
1033 Fifth Street
Clovis, California 93612
ATTN: City Manager

QUAIL RUN 18 ANNEXATION AGREEMENT

APN XXX-XXX-XX
This Quail Run 18 Annexation Agreement (“ Agreement”) is entered into as of _______________, 2025, between the City of Clovis, a California municipal corporation and general law city (“ City”), and XXXXX (“Owner”) with respect to the following recitals, which are a substantive part of this Agreement. Each of the City and each Owner is a “ Party” and are collectively the “Parties.”

RECITALS
A. Owner owns the real property in the County of Fresno, State of California, identified as Assessor’s Parcel Number XXX-XXX-XX and located at XXXX E. Street Avenue (“Property”). The legal description of the Property is described in Exhibit A attached hereto and incorporated herein.

B. The Property is one of eighteen properties in a neighborhood known as Quail Run (“Quail Run Neighborhood”) and is currently zoned Fresno County R-R (Rural Residential) and is improved with a single-family home and other structures and improvements consistent with uses, standards and setbacks allowed in Fresno County R-R Zone District.

C. The Property is located in an area within the City’s Sphere of Influence, and Owner desires to have the Property annexed into the City along with the other seventeen parcels comprising the Quail Run Neighborhood.

D. Annexation is at the Owner’s request to facilitate Owner’s desire to access City’s domestic water system and services, but Owner desires to maintain the existing rural residential lifestyle on the Property following annexation.

Attachment 4
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2 E. The Property is consistent with the City’s 2014 General Plan land use designation of Rural Residential (R-R), and Owner and City desire that the Property may be pre -zoned to the Clovis R-R (Rural Residential) Zone District as part of the annexation.

F. The City’s annexation of the Property will require the Owner to construct and pay for necessary water system infrastructure improvements in order for the Property to have access to and be served by the City’s domestic water system in accordance with applicable City ordinances and payment of applicable City fees.

G. Consistent with the City’s 2014 General Plan, the Parties expect the Property will retain its existing rural residential nature following the City’s annexation in accordance with the terms and conditions of this Agreement.

H. The City of Clovis Water System and its customers are required to comply with State regulations; including the requirements of the Sustainable Groundwater Management Act (SGMA), the North Kings Groundwater Sustainability Agency (NKGSA), and Water Conservation Legislation. By connecting to the City of Clovis Water system, customers acknowledge and agree to comply with such requirements. Noncompliance with such requirements may result in fines or water shut offs as outlined in the City of Clovis Municipal Code.

I. City is willing to consider and pursue annexing the Property only with Owner’s agreement to the terms and conditions set forth in this Agreement, and Owner is willing to enter this Agreement so that the City will pursue annexing the Property.

NOW, THEREFORE, for the consideration set forth herein, the parties agree as follows.

AGREEMENT

ARTICLE I

TERM OF AGREEMENT
This Agreement shall only be effective upon the annexation of the Property into the City and except as provided in the following sentence, shall thereafter be perpetual in terms and shall run with the Property. Should use of the Property intensify (as defined in Section

2.10 below) following annexation, this Agreement shall terminate and all City ordinances, policies, and standards then in effect shall govern the Property and be complied with by Owner or Owner’s successors, heirs, and assigns; provided, however, all legal nonconforming improvements situated on the Property at the time of annexation and all improvements legally made to or on the Property after annexation shall be deemed legal nonconforming if and to the extent that they do not comply. The provisions of this Article I shall survive the termination of this Agreement as to the Property. 238
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3 ARTICLE II

BENEFITS TO OWNER
Section 2.1 Permitted Uses. The following uses shall be allowed on the Property following annexation:
(a) Those uses to which the Property is currently put at the time of annexation; (b) Accessory structures meeting the setback requirements for accessory structures set forth in Fresno County Ordinance 822.3.100H.3; and
(c) Those uses permitted under the City’s Municipal Code after annexation.

Legally non-conforming uses under the Fresno County Code may only be allowed to continue if Owner can demonstrate that the non -conforming use was approved under a pre -existing Fresno County Code and the time to remove the non-conformity has not expired.

Section 2.2 Farm Animals. Owner may keep farm animals to the extent the keeping of farm animals was lawfully allowed to exist under the Fresno County Code for properties zoned R -R (Rural Residential) at the time of annexation, or, if more expansive, as otherwise lawfully allowed under City’s Municipal Code for the designated zoning upon annexation.

Section 2.3 Use of Water Wells. Owner may continue to use existing water well(s) on the Property and defer connection to the City’s municipal water system, even if a City water service connection is available to the Property. At any time in the future, Owner shall be required, upon receipt of written notice from City with no less than ninety (90) days notice, to install a water meter for each water well on the Property as approved by the City. Owner shall be subject to applicable fees, utility rates, and charges as stated in the City’s Municipal Code or approved by City Council resolution for use of a private supply water well and a charge for groundwater use or over-drafting. It is understood that the City is a member of the NKGSA and subject to the NKGSA’s Groundwater Sustainability Plan (“GSP”) and understood that the City is solely responsible for compliance with applicable State law, including SGMA, and mitigating the impacts of groundwater pumping within its jurisdiction. Use and maintenance of the on-site private water supply system will remain solely the Owner’s responsibility, and any water well must be kept and maintained in a condition consistent with applicable Fresno County Environmental Health Department standards as if the Property were still in the unincorporated area of the County of Fresno. The City is not responsible for existing well water quality or any changes to well water quality after annexation, and the Owner shall be solely responsible for any and all compliance with applicable water quality standards. Owner shal l comply with applicable State law and regulations, including SGMA, applicable provisions of the City’s Municipal Code, and lawful directives from the NKGSA pertaining to water wells and groundwater use.
(a) If a new well becomes necessary on the Property, Owner shall comply with the City’s Municipal Code with respect to the permitting, drilling and completion thereof. The drilling, deepening, and abandonment of any wells shall also be 239
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4 permitted, drilled and completed in accordance with the City’s Municipal Code and applicable State and County standards for wells in effect at the time. (b) If Owner connects the Property to the City’s municipal water system after annexation, Owner may continue to use the existing well(s) on the Property, including mainten ance, and metering consistent with this section, solely for landscaping purposes so long as no cross -connection is made between the well(s) and any residence now or hereafter constructed on the Property, and Owner installs a back flow prevention device in accordance with applicable City standards. (c) A City water service connection will be deemed available to the Property if (i) the Property is within the City limits, and (ii) a water service connection has been constructed and is available for use in any public street, easement, or right -of-way adjacent to the Property in accordance with the applicable sections of the City of Clovis Municipal Code.
(d) With any connection to the City’s municipal water system, Owner shall be responsible for making such connection in accordance with applicable City standards and requirements, including, without limitation, the payment of all costs associated with the conne ction, payment of applicable City connection fees, and payment of any costs related to the physical construction to connect in accordance with the applicable sections of the City’s Municipal Code.

Section 2.4 Use of Septic Tanks. Owner may continue to use and maintain the existing septic tank or pit on the Property, even if a City sewer service connection is available to the Property. Use and maintenance of the existing system will remain sole ly the Owner’s responsibility, and the septic system must be kept and maintained in a condition consistent with State requirements and Fresno County Environmental Health Department standards as if the Property were still in the unincorporated area of the County of Fresno. If a septic system fails, the onsite septic system may be repaired or replaced in accordance with State, County, and City standards for septic systems in effect at the time.

After annexation, and within three (3) years of a sewer service connection being available to the Property, Owner shall either connect to the City sewer system or obtain a written deferral from the City under the criteria set forth below. Connection or deferral is only required upon City notification to the Owner of the need to connect to the City sewer system and shall not be unreasonably denied.

Deferral of connection to the City’s sewer system is authorized only if each of the following Deferral Criteria (a -e immediately below) is satisfied at the time deferral commences and remains satisfied throughout the deferral period:
(a) The septic system must comply with current State standards at the time deferment is requested.
(b) The septic system may not have leach fields or tanks within areas that are flood irrigated.
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5 (c) Owner must provide a diagram of the septic system’s location and proof that the septic system is in good working order. The diagram and acceptable proof may be provided by having a licensed septic company inspect the septic system and provide documentation that the system is functioning properly and of a design that meets State standards.
(d) A deferment must be renewed every ten (10) years until the septic system on the Property is abandoned or removed in accordance with applicable State, County, and City standards in effect at the time and the Property is connected to the City’s sewer system.
(e) Owner must be in compliance with the City’s Municipal Code in all respects except as otherwise specifically authorized in this Agreement.

Notwithstanding the foregoing and any authorized deferral, u pon any Intensification of use as set forth in Section 2.10 of this Agreement, Owner shall connect to the City sewer system if it is available to the Property. A sewer service connection will be deemed available to the Property if: (i) the Property is within the City limits, and ( ii) a sewer service connection has been constructed and is available for use in any public street, easement, or right -of-way adjacent to the Property in accordance with the applicable sections of the City of Clovis Municipal Code.

With any connection to the City’s sewer system, Owner shall be responsible for making such connection in accordance with applicable City standards and requirements, including, without limitation, the payment of all costs associated with the connection, payment of applicable City connection fees, and payment of and any costs related to the physical construc tion to connect in accordance with the applicable sections of the City’s Municipal Code.

Section 2.5 Solid Waste Service. Owner shall have the choice of changing to City solid waste service immediately, or staying with their existing franchised service provider through the County for up to five (5) years from the date of annexation. City’s basic residential refuse, recycling and organics service is centered on urban waste production. All City residents are required to have refuse, recycling and organics toters. Rural residential properties can generate waste material in quantities or types that r equire additional services above City’s standard waste pickup. Street Sweeping services will not be provided on streets that are not constructed to City of Clovis standards and do not have a curb and gutter. Therefore, when Owner is ready to change to City service it will be necessary to work directly with City’s solid waste division to determine the best way City can service Owner’s solid waste needs.

Section 2.6 E. Lexington and N. Purdue Avenues . Owner, as part of the Quail Run Neighborhood, agrees to fund street maintenance work to bring the condition of the pavement to City standard and no less than a pavement condition index of ninety (90) as a condition precedent to the City assuming maintenance responsibility of the street . If street lighting is desired by a majority of the eighteen property owners comprising the Quail Run Neighborhood, or deemed necessary by the City , Owner, as part of the Quail Run Neighborhood, shall be responsible for providing funding for the installation and perpetual maintenance of street lighting in accordance with applicable City standards, which may include 241
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6 the formation of or annexation to an assessment district or community facilities district for such purposes in accordance with applicable law.

Section 2.7 Storm Drainage. Storm drainage from each parcel in the Quail Run Neighborhood is addressed through on-site drainage basins and easements per Tract Map 3286 recorded on November 17, 1980. The City played no role in the design or approval of the on-site drainage basins and easements, and no alteration to the existing storm drainage patterns in the Quail Run Neighborhood is proposed or approved by the City as part of this annexation.

Owner hereby releases City from any liability for storm drain improvements and patterns existing at the time of annexation, and Owner waives any claim against City or right to claim against the City for any damages or negative impacts to the Property caused by storm drainage after annexation.

Section 2.8 Conditions for Annexation; Improvements. (a) City and Owner shall cooperate in causing the following conditions and requirements to be satisfied prior to recordation of annexation of the Property:
(1) The Property shall be included within or annexed to a Community Facilities District (CFD), established by the City for the provision of public facilities and services, for which proceedings have been consummated, and shall be subject to the special tax approved with the formation or annexation to the CFD.
(2) Owner acknowledges and agrees that if the Property were not part of a CFD, the City might lack the financial resources to operate facilities and provide public services to the Property at the same or similar level(s) as elsewhere in the City , such as police protection, fire protection, emergency medical services, park and recreation services, street maintenance and public transit.
(3) Owner hereby requests annexation to and shall provide a duly executed covenant for annexation to the City’s Landscape Maintenance District ( LMD) no later than thirty (30) after the Property is annexed to the City . Owner acknowledges and agrees that this request serves as a petition pursuant to applicable California law, including without limitation, CA Const., Art. XIII D, Gov.

Code section 53750, et seq., and a waiver and written consent to annexation to the LMD as described in Streets and Highways Code section 22608, without the right of a hearing or majority protest proceeding, and no property owner ballot election shall be required for the establishment of the initial assessment. The assessment for the Property shall be obtained from the City for the tax year following annexation. The annual assessment is subject to change and is subject to an annual change in the range of the assessment in the amount of the Consumer Price Index (CPI), U.S. City Average, All Urban Consumers (CPI Index), plus two percent (2.0%). 242
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7 (4) Owner shall pay City for the Property’s fair share of the $43,802.07 payment the City must make pursuant to the transition agreement for fire services with the Fresno County Fire Protection District associated with the annexation of the Quail Run Neighborhood, and such payment by Owner to City must be made within thirty (30) days following Council action and prior to LAFCo’s consideration on the Quail Run Neighborhood annexation. Interest shall accrue at the rate of ten percent (10.0%) per annum compounded annually on any unpaid amount after said thirty days.
(5) Owner shall grant City all necessary public utility easements required by City for any public street(s) owned or maintained by City adjacent to the Property.
(b) Water System Improvements to serve the Quail Run Neighborhood. Owner shall be required to cooperate and participate with the Quail Run neighborhood in installing and constructing public potable water facilities in accordance with current City Standard Specifications and Standard Drawings so that the City’s municipal water system can serve the Quail Run neighborhood and a City water service connection to the City’s municipal water system is available to the Property following annexation. The facilities sha ll include, but not be limited to, the following, and shall be completed and accepted by the City.
(1) Water mains in Sunnyside Avenue, Lexington Avenue, Purdue Avenue and Perrin Road necessary to make a City water service connection available to the Property.
(2) Fire hydrants to serve the Quail Run neighborhood.
(3) Cost of Water System Improvements. Owner and the other owners of property in the Quail Run neighborhood may decide among themselves and any third party(ies) how the improvements will be installed and constructed to satisfy this Section 2.8(b) and how the costs of such improvements will be divided or paid.
(c) Individual Water System Improvements to Serve the Property . Owner shall be required to provide the following improvements in accordance with the applicable City standards and requirements at the time the Property is connected to the City’s municipal water system.
(1) One (1) service lateral from an available water main adequate to provide for domestic uses on the Property.
(2) One (1) service lateral from an available water main adequate to provide for landscape irrigation uses on the Property.
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8 (3) Back flow prevention device(s) in accordance with applicable City Standards.
(d) Public Improvements upon Intensification in Use of the Property . Except as otherwise provided in this Agreement, Owner shall not be required to install additional improvements on the Property or adjacent to the Property prior to Intensification as defined in Section 2.10 below. Owner may be required to install improvements following Intensification as described in Section 2.10 below, and such improvements may include, but are not limited to, public street improvements, wet and dry utility facilities, and storm drainage facilities that serve the Property. (e) Water Main Connection Fees/Charges Distribution . Owner is responsible to pay their individual connection fees/charges for the Property in accordance with Section

6.5.203 of the City’s Municipal Code. In lieu of this payment method of fees, all owners of properties in the Quail Run neighborhood agree to combine all applicable individual water main connection fees /charges for the properties in the neighborhood and redistribute them equally to all owners , and City agrees to such equal distribution and payment as satisfying the connection fees/charges for the Property.

Section 2.9 Addressing. Owner acknowledges that as part of the annexation process, the Property will be required to change from a County address to a City address. The address change will be in accordance with City policy. Changing to a City address will allow Clovis Police and Clovis Fire to accurately dispatch calls for service to the Property without delay.

Section 2.10 Intensification in Use . The provisions of this Agreement intended to protect Owner’s right to maintain the existing rural residential lifestyle on the Property following annexation shall remain in effect and run with the land so long as use of the Property does not intensify after annexation. Intensification may occur upon the City’s approval of an applicable rezone application, subdivision map, parcel map, parcel map waiver, lot lin e adjustment, or building permit that allows a use that is considered an intensification hereunder.

Any intensification as provided herein, whether or not approved by City, shall result in the termination of this Agreement, except for the provisions and requirements in Section 2.8 herein which shall continue to be binding on the parties following intensification , and the Property shall immediately be subject to applicable provisions of the City’s Municipal Code. “Intensification” and “Intensify” mean the following:
(a) Subdivision of the Property into any density greater than 0.5 Units/Acre (2 -acre parcels). If, after annexation, the Property is subdivided into a density greater than

0.5 Units/Acre, this Agreement shall terminate, and the Property and all newly created parcel(s) shall be subject to applicable provisions of City’s Municipal Code. (b) The addition of additional residential units without subdivision, except that up to one (1) second residential unit, one (1) accessory dwelling unit, and one (1) junior accessory dwelling unit shall be allowed on the Property as permitted by City’s accessory dwelling unit ordinance and state legislation, and such development shall 244
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9 not be deemed an intensification of use. Outbuildings and other improvements that are not dwelling units (e.g., barns, shops, sheds, shade structures, swimming pools, pool house, fountains, etc.) may be constructed on the Property consistent with applicable City zoning requirements and development standards (as modified herein) and such improvements shall not be deemed an Intensification of use. (c) The rezone of the Property to anything other than residential, use of the Property for commercial, office, or industrial uses, or the development of commercial, office, or industrial structures on the Property, except that home offices and any other uses identified and authorized in this Agreement or the City’s Municipal Code shall not be an Intensification of use.

ARTICLE III

BENEFITS TO CITY
Section 3.1 Consent to Annexation. Owner consents to annexation of the Property in accordance herewith. As such, Owner agrees to sign any request by the City, the County, and LAFCo to consent to annexation of Owner’s Property Section 3.2 Failure to Consent to Annexation. If Owner fails to consent to annexation as required hereunder, or if Owner, any subsequent owner of the Property, or any registered voter residing on the Property objects to or withdraws consent to the City’s annexation of the Property, this Agreement s hall be null and void as to the Property even if annexation is ultimately approved and the Property is annexed.

Section 3.3 Non-Precedent Setting. This Agreement is unique to Owner and the Property and the circumstances surrounding the annexation and in no way shall be considered precedent setting, persuasive, or binding on the City in any other circumstance.

ARTICLE IV

MISCELLANEOUS
Section 4.1 Voluntary Agreement; Construction; Authority . The Parties represent that they have read this Agreement in full and understand and voluntarily agree to all of its provisions. The Parties each further declare that prior to signing this Agreement they apprized themselves of relevant information through sources of their own selection, including but not limited to consulting or having the opportunity to consult with legal counsel of their own choosing. In executing this Agreement, no Party has relied up on any statements of any other Party or any third party concerning the meaning or import of this Agreement or any portion thereof. This Agreement was negotiated between the Parties at arm’s length and was prepared by and among each Party and/or their duly appointed attorneys or representative(s).

Accordingly, the Parties expressly waive the provisions of Civil Code section 1654 and acknowledge and agree that the Agreement shall not be deemed prepared or drafted by any one Party, and shall be construed accordingly. The Parties further represent that they have, as of the date of execution of this Agreement, the legal capacity and authority to sign this Agreement. 245
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10 Section 4.2 Severability. If any section of this Agreement is found by competent authority to be invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of such section in every other respect and the remainder of this Agreement shall continue in effect so long as the Agreement still expresses the intent of the Parties. However, if the intent of the Parties cannot be preserved, this Agreement shall be renegotiated to provide each Party with the benefits originally intended hereunder.

Section 4.3 Integration. The Recitals set forth above are hereby incorporated in and made a part of this Agreement by this reference. This Agreement contains the entire and only understanding between the Parties with respect to the subject matter hereof and supersedes any prior or collateral agreements, negotiations, and communications in connection with the subject matter covered herein, whether oral or written, and any warranty, representation, promise, or condition in connection therewith not incorporated herein shall not be binding upon any Party.

Section 4.4 Conflict with Law . To the extent this Agreement contains provisions in conflict with State or federal law, including judicial or administrative decisions, the State or federal law shall control. Notwithstanding the foregoing, this Agreement shall control over inconsistent provisions in the City’s Municipal Code, as it exists on the date of this Agreement.
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[Signatures on next page]

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11 WHEREFORE, the Parties hereto, by their signatures below, enter into this Agreement.

CITY OF CLOVIS

Signed: ________________________
By: Andrew Haussler, City Manager

Dated: ______________________

ATTEST:

Signed:_________________________
By: Briana Parra, City Clerk

Dated: ___________________________

OWNER

Signed: ______________________
By:

Dated: ______________________

Signed: ______________________
By:

Dated: ______________________

OWNER SHALL ATTACH NOTARY ACKNOWLEDGMENT.
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EXHIBIT A

LEGAL DESCRIPTION

INPUT FOR EACH PAREL

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of Fresno )

On ____________________, before me, ____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

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SPECIFIC SERVICE PLAN

PERRIN-SUNNYSIDE SOUTHEAST REORGANIZATION
RO313
City of Clovis Perrin-Sunnyside Southeast Reorganization December 2025 Site Specific Service Plan

Attachment 5

P L A N N I N G & D E V E L O P M E N T
1 0 3 3 F I F T H S T R E E T • C L O V I S , C A 9 3 6 1 2

1.1 INTRODUCTION
A Site Specific Service Plan for providing services and improvements to land being annexed to the City is required by the Fresno Local Agency Formation Commission (LAFCo ). The site specific service plan provides assurance to LAFCo that newly annexed land to the City will be properly served as urban territory.

The service plan also provides information to property owners, districts and interesting parties who may have projects underway within the vicinity of the proposed annexation.

On November 20, 2025, the Clovis Planning Commission conducted a noticed public hearing and adopted a resolution recommending approval of the following applications:
a. Approval of an addendum to the Environmental Impact Report adopted for Shepherd North for the Quail Run Annexation.
b. R2024-008, Approval of a request to prezone the properties within the Quail Run Neighborhood from the Fresno County R-R (Rural Residential) Zone District to the Clovis R-R (Rural Residential) Zone District.

On December 1 5, 2025, the Clovis City Council conducted a noticed public hearing and took action to approve the following applications:
a. Approval of an addendum to the Environmental Impact Report adopted for Shepherd North for the Quail Run Annexation.
b. RO313, A resolution of the City Council approving an application for the Annexation of the Territory known as the Perrin-Sunnyside Southeast Reorganization area (±40.62 acres). c. R2024-008, Approval of a request to prezone the properties within the Quail Run Neighborhood from the Fresno County R-R (Rural Residential) Zone District to the Clovis R-R (Rural Residential) Zone District.

On December 15, 2025, the Clovis City Council adopted a resolution addressing Reorganization RO 313, requesting the Fresno Local Agency Formation Commission (LAFCo) take proceedings for the reorganization of the territory known as the Perrin-Sunnyside Southeast Reorganization.

1.2 SERVICES EXISTING OR PROPOSED

1. Community Water Service
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SITE SPECIFIC SERVICE PLAN
City of Clovis Perrin-Sunnyside Southeast Reorganization December 2025 Site Specific Service Plan
The Water Master Plan Update, completed in 2017, by Provost & Pritchard Consulting Group, was prepared to support the 2014 Clovis General Plan, and the development plans therein. The plan examined the feasibility of continued growth in the greater Clovis area from a water resource perspective. This included a review of existing and future demands for water from surface, groundwater, and reclaimed water . The study area corresponded with t he General Plan planning area. The 2015 Urban Water Management Plan updated the water supply and demand issues identified in the 2017 Master Plan.

The City and Tarpey Village have 37 domestic water wells to provide f or the needs of its residents. Some of these have wellhead treatment facilities to t reat contaminated groundwater. The wells discharge water into a distribution main grid, based on a minimum of 12 -inch mains, spaced at half -mile intervals. The present water storage facilities consist of one elevated tank and three ground level tanks. The total storage capacity is 7 million gallons.

The City began operations of the Surface Water Treatment Facility, located on the Enterprise Canal on the east side of Clovis, in 2004. Kings River water is supplied to the plant via Fresno Irrigation Dist rict’s (FID) Enterprise Canal. This 15 million gallon-per-day (MGD) plant allows Clovis to serve existing users and new growth areas, while lessening the demand on groundwater. In 2014, treatment capacity at the SWTF was increased to 22.5 MGD.

In 2009, the City began operation of the Water Reuse Facility (WRF) to treat wastewater from a porti on of the City’s growth areas. In 2012, the City began using recycled water from this facility to irrigate public landscapes. At build-out of the system, this facility will be able to produce 8.4 MGD of recycled water.

The strategy for future water supply is termed “conjunctive use” where multiple elements are used to provide a secure long-term supply. It includes using both groundwater and treated surface water to ensure a secure drought-resistant water supply with the flexibility to use surface and groundwater supplies in a cost and operationally-efficient manne r. This strategy is conducive to phased development that is critical to both community approval and existing operational constraints.

Water systems for newly developed areas, such as the project site, will be financed by development fees, assessment districts, a nd capital facilities funding. Additional surface water supplies for certain growth areas will be financed by the Water Supply development fee.

2. Water
The following water conditions have been placed on the project per the annexation agreement:
a. Water System Improvements to serve the Quail Run Neighborhood . Owner shall be required to cooperate and participate with the Quail Run neighborhood in installing and constructing public potable water facilities in accordance with current City Standard Specifications and Standard Drawings so that the City’s municipal water system can serve the Quail Run neighborhood and a City water service connection to the City’s municipal water system is available to the Property following annexation. The facilities shall include, but not be limited to, the following, and shall be completed and accepted by the City. i. Water mains in Sunnyside Avenue, Lexington Avenue, Purdue Avenue and Perrin Road necessary to make a City water service connection available to the Property. ii. Fire hydrants to serve the Quail Run neighborhood.
iii. Cost of Water System Improvements. Owner and the other owners of property in the Quail Run neighborhood may decide among themselves and any third party(ies) how the improvements will be installed and constructed pursuant to this Error! Reference source not found.(b) and how the costs of such improvements will be divided or paid.
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b. Individual Water System Improvements . Owner shall be required to provide the following improvements in accordance with the applicable City standards and requirements at the time they wish to connect to City water.
i. One (1) service stub for domestic uses on the Property. ii. One (1) service stub for landscape irrigation uses on the Property. iii. Back flow prevention device(s) in accordance with applicable City Standards.

3. Wastewater
The Fresno-Clovis Regional Wastewater Treatment Facility serves the Fresno and Clovis urban area from its location southwest of the two cities. The City of Clovis owns and maintains sewer lines within the City Sphere of Influence, with the exception of the Tarpey Village area, which is maintained by the City of Fresno.

The City operates the Water Reuse Facility which treats wastewater from a portion of the City and provides recycled water for use in public landscapes. This facility will be expanded as requi red to serve portions of the northwest and northeast growth areas. The City does not have sewer collection facilities constructed for the entire current Sphere of Influence at this time, but all areas have been master planned.

The Clovis Wastewater Master Plan Update in 2017 provided the City with a course of action with respect to wastewater service needs through the year 2035, in keeping with the Clovis General Plan.

Wastewater facilities for newly developed areas will be financed by development fees, assessment districts, and capital facilities funding.

The following sewer conditions have been placed on the project per the annexation agreement:
i. The septic system must comply with current State standards at the time deferment is requested. ii. The septic system may not have leach fields or tanks within areas that are flood irrigated. iii. Owner must provide a diagram of the septic system’s location and proof that the septic system is in good working order. The diagram and acceptable proof may be provided by having a licensed septic company inspect the septic system and provide documentation that the system is functioning properly and of a design that meets State standards. iv. A deferment must be renewed every ten (10) years until the septic system on the Property is abandoned or removed in accordance with applicable State, County, and City standards in effect at the time and the Property is connected to the City’s sewer system. v. Owner must be in compliance with the City’s Municipal Code in all respects except as otherwise specifically authorized in this Agreement.

4. Dedications and Street Improvements
The following street conditions have been placed on the project:
i. E. Lexington and N. Purdue Avenues. Owner, as part of the Quail Run Neighborhood, agrees to fund street maintenance work to bring the condition of the pavement to City standard and no less than a pavement condition index of 90 as a condition precedent to the City assuming maintenance responsibility of the street. If street lighting is desired by a majority of the eighteen property owners comprising the Quail Run Neighborhood, or deemed necessary by the City, Owner, as part of the Quail Run Neighborhood, shall be responsible for providing funding for the 252
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installation and perpetual maintenance of street lighting in accordance with applicable City standards, which may include the formation of community facilities district for such purposes in accordance with applicable law.

5. Solid Waste Collection
Owner shall have the choice of changing to City solid waste service immediately, or staying with their existing franchised service provider through the County for up to five (5) years from the date of annexation.

City’s basic residential refuse, recycling and organics service is centered on urban waste production. All City residents are required to have refuse, recycling and organics toters. Rural residential properties can generate waste material in quantities or types that require additional services abov e City’s standard waste pickup. Street Sweeping services will not be provided on streets that are not constructed to City of Clovis standards and do not have a curb and gutter. Therefore, when Owner is ready to change to City service it will be necessary to work directly with City’s solid waste division to determine the best way City can service Owner’s solid waste needs.

6. Fire Protection
The Fire Department employs two primary measures in determining service for the com munity and future development. The first measure is distribution. “Distribution” describes station locations that allow for a rapid first -due response deployment to mitigate fire and medical aid emergencies before they result in further life/property loss. Distribution is measured by how much of the jurisdiction is covered by first due units within our adopted response time goal of arrival within 5 minutes or less 90% of the time. The second term, “concentration” is a measure of how many multiple units are within sufficient proximity to provide the necessary tools, equipment and personnel, known as an effective response force, for a large scale incident or when another unit is assigned to a concurrent emergency. An initial effective response force is one that has been determined likely to stop the escalation of a fire emergency and bring it effectively under control.

In addition to these factors, Clovis Fire has conducted several station location studies over the last ten years to ensure efficient and effective operations. Stations have generally been located in between 4.5 to 5 mile squares n ear major street intersections. Previous studies identified various station configurations that could serve City growth depending on the type of development and infrastr ucture planned for these areas. Currently, the Clovis Fire Department operates out of five fire stations located throughout the City.

In determining desired levels of resource concentration to maintain existing standards and to provide equal protection to future growth areas, the Clovis Fire Department analyzed the risk assessment, call volume, population, critical task analysis, and ind ustry standards. Depending on the factors previously noted, the number of units needed for an initial effective response force are dispatched as defined in the Critical Task Analysis document.

Consideration for community protection must also take into account utilization of Automatic Aid Agreements that provide the closest available resourc es, regardless of jurisdiction. Using software programs and data from neighboring jurisdictions, fire staff are able to analyze the concentration of units revealing detailed information regarding the deployment of resources necessary to provide an effective fire fighting force within defined response time goals for a geographic area neighboring other fire prote ction districts.

The Emergency Services Bureau is responsible for providing the resources need ed by Fire Department staff who respond daily to requests for emergency and non-emergency services from the citizens of Clovis through four divisions: Operations, Support Services, Training, and Communications. The Operations Division activities include: responding to fires, first responder medical services, mutual/automatic aid, mapping, apparatus replacement, etc. The Training Division activities include coordination of recruitme nt, testing and training of new employees, in -service training for all Department employees and coordinated use of the Fire Training Center. Support Services Division activities include: apparatus maintenance, facilities maintenance, station supplies, etc. The Communications Division has responsibility for 253
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coordinating dispatch services to the Fire Department. Fire dispatch services are provided via a contract with the Fresno County Emergency Medical Services Division. Dispatch services coordinate the emergency response of all City fire resources and mutual or automatic aid resources. The Department continues to promote sound planning, economic efficiency, and effective use of the City resources while providing essential and valuable services.

The Life Safety and Enforcement Bureau is responsible for providing community risk reduction activities through two divisions: Fire Prevention and Emergency Preparedness. The Fire Prevention Division assists local businesses and building development though activities such as inspections and plan review to ensure safe occupancies comply with fire codes, standards, and local ordinances. Additional risk reduction is performed through public education where citizens learn about actions they can take to reduce t heir fire risk and learn emergency preparedness skills that are essential during times of crisis. Within the Bureau, the Investigations team has the responsibility to investigate all fires for cause and origin, and enforce minimum standards to safeguard life, health, property, and public welfare.

The Emergency Preparedness Division has the responsibility for preparing and carrying out emergency plans to protect property and the citizens of Clovis in case of actual or threatened conditions of disaster or extreme peril. This includes having an emergency plan in place, maintaining an Emergency Operations Center (EOC), ensuring policies and procedures are compliant with the National Incident Management System (NIMS) guidelines and exercises are conducted to evaluate system effectiveness. Within the Emergency Preparedness section are the Hazardous Materials Response Team and an Urban Search and Rescue Team. These teams are capable of responding to emergency incidents that require specialized tools, equipment, and personnel. Some funding for this division is augmented by state and federal grants.

The Fire Administration Division is responsible for supporting all department operations, administering the Accreditation program, and the development and administration of the Fire Department budget. Fire Administration provides administrative analysis, r eport preparation, coordination of programs, incident response data management, timekeeping, and other routine duties performed daily that support the delivery of emergency and non-emergency services. Fire Administration also identifies, writes, and manages grants to supplement funding for all Department programs.

7. Law Enforcement
The responsibility of the Police Department is to provide protection and police -related services to the community. The Department’s mission is to do this in a manner that builds public confidence and improves the quality of life in Clovis. Police headquart ers is located at the Clovis Civic Center. Currently, the Police Department is allotted for 112 sworn officers. The current ratio is 0.90 sworn officers per 1,000 residents.

In accordance with the recommendations contained in the Police Department Master S ervice Plan, the Police Department will seek funding to achieve and maintain a ratio of 1.3 officers per 1,000 residents.

Police protection to the unincorporated areas is provided by the Fresno County Sheriff and California Highway Patrol. The City has a mutual aid assistance agreement with both agencies.

The operations of the Police Department, now and as the City grows, will be funded through the General Fund, Community Facilities District (CFD) fund, and grants. It is noted that continued annexation and development without proportionate increase in the funding of safety services will have an effect on the city’s ability to maintain acceptable service levels. If unable to maintain acceptable service levels, the department will have to reduce response to certain calls and possibly eliminate other services altogether. This reduction of services will greatly impact our citizens and the quality of life in our community.

The Department is organized into three major divisions, which are composed of seven budgetary sections.

8. Parks & Recreation
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The Parks Section provides maintenance to City parks, trails and trail lighting, street landscaping, City trees, and numerous recreational facilities, including playgrounds and picnic sites; maintains Old Town streetscape; and provides grounds maintenance at C ity administrative facilities. Some of these areas are maintained by Parks personnel, while others are maintained through contracts administered by the Parks section. Parks also provides support for civic activities such as hanging banners and decorating for Christmas, Rodeo Weekend, Big Hat Days, and Farmer's Market. The Park s Section administers the Landscape Maintenance District (LMD), which provides funding for maintenance of certain parks, trails, street landscaping, streetlights, and neighborhood architectural enhancement features for areas within the Landscape Maintenance District. All City owned landscaping that is not within the LMD is funded through the General Fund.

9. Transit Services
The Community Services Division administers various senior citizen programs at the Clovis Senior Activity Center. The Division also administers the City’s Round -Up demand-response transit program, the fixed - route Stageline transit program, and administers the City’s contract with Fresno Area Express (FAX). User fees, and state and federal transit funds and grants support the transit service.

10. Storm Drainage
Storm Drain responds to significant rainfall events by providing sand bags, pumping of flooded areas, monitoring stream channels, placing warning signage, and pumping temporary s torm drain basins when needed. It also provides pre-storm cleaning of drain inlets to ensure debris do not hamper proper operation of the storm drain collection system. As development occurs, applicants will be required to construct storm drainage facilities in accordance with the standard and requirements of the Fresno Metropolitan Flood Control District. Specific conditions for improvements to the storm drainage system will be issued as development projects are proposed and approved.

11. Street Lighting
If street lighting is desired by a majority of the eighteen property owners comprising the Quail Run Neighborhood, or deemed necessary by the City, the Quail Run Neighborhood shall be responsible for providing funding for the installation and perpetual mai ntenance of street lighting in accordance with applicable City standards, which may include the formation of or annexation to an assessment district or community facilities district for such purposes in accordance with applicable law.

12. Schools
The City of Clovis and its sphere of influence lies primarily within the Clovis Unified School District (CUSD).

The portion the sphere of influence within the Loma Vista Specific Plan, east of the Highland Avenue alignment lies within the Sanger Unified School District (SUSD). Only a small portion of the southwest area of the city lies in the Fresno Unified School District (FUSD). These districts are affected by residential growth in the Clovis area. The area of the City serviced by FUSD is fully built -out and future development within the City’s sphere of influence will not affect this district.

13. Other Services
Pacific Gas and Electric (PG &E) provides gas and electrical service to the City of Clovis, its sphere of influence, and Fresno County. Electrical service is supplied by underground and overhead lines routed through three substatio ns in the greater Clovis area. The hierarchy of establishing electrical power lines from generation stations to customers is as follows: transmission distribution; sub-transmission; and service. PG&E provides gas to customers through plasti c and steel underground lines. Residents n ot serviced by PG&E use propane fuel.

14. Financing of Services and Facilities
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The City Council has established fiscal policies that govern the city’s financial administration and are designed to safeguard the C ity’s assets, provide a stable funding base, and ensure that adequate accounting data are compiled. These accounting data allow for the preparation of various accounting reports such as the annual budget and the ann ual year-end financial report. Following are the financial policies that provide the basis for the financial direction of the city. • The City’s budget policy states that all operating budgets shall be balanced and ongoing costs will not exceed current revenues plus available fund balance that exceeds reserve requirements. The minimum reserve for any operational fund is 10 % of the budgeted expenditures with the goal for reserves of 15% of budgeted expenditures unless capital borrowing or extraordinary fiscal conditions require that higher lev els of reserves be maintained. As discussed during the five -year forecast, the General Fund target reserve is now set at 25%, the current General Fund reserve is approximately 16.5%. Budgetary and purchasing controls have been instituted that ensure adherence to the adopted budget.

• The Enterprise Funds are to be fully supported by user fees and charges, and the Internal Services Funds are to be funded at appropriate levels to ensure reasonable ability to respond to unforeseen events. Annually, the City has designated a contribution of general funds to the General Government Services Fund (an Internal Service Fund) to address the building space needs for new fire stations, safety training facilities, regio nal park facilities, business and industrial parks, upgrades and new technology fo r improved productivity, and major remodeling, repairs, or additions to existing facilities.

• The C ity will not issue long -term deb t to cover current operations. The C ity will consider the issuance of long -term debt to purchase/build capital assets when those assets will benefit users over several years and it is determined that it is more equitable to spread the capital investment and financing costs of the asset to current and future users of the asset.

• Annually the C ity will have an independent audit of its financial records prepared by a certified public accountant pursuant to generally accepted auditing practices of the government finance industry and submit an annual financial report to the City Council by December 31 for the previous fiscal year.

• Fees for services will be charged directly to users of the services when appropriate and should cover the full cost of service delivery. Fees are to be reviewed on an annual basis to ensure that the fee is appropriate for the service provided compared to actual cost or an approved cost index.

• Development impact fees will be established to ensure that new growth pays the cost of infrastructure improvements and is not a burden to existing tax payers.

• The City will invest available cash assets in a manner consistent with the safeguards and diversity that a prudent investor would adhere to with primary emphasis on preservation of principal, sufficient liquidity to cover anticipated payment outflows, and high yields consistent with the first two goals. The City’s investments will be consistent with Section 53601 of the Government Code of the State of California that identifies which types of investments are eligible for investment of public funds and the m aximum percentage of an investment portfolio that is allowed for any one investment.

The City is in compliance with all of its financial policies.

15. California Environmental Quality Act (CEQA) Compliance An addendum to the EIR conducted for the Shepherd North Project was prepared for this Project. The Addendum concludes that the proposed annexation and prezone of the existing subdivision will not cause 256
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a new significant impact or substantially increase the severity of a previously identified significant impact.

There have been no changes in the environmental conditions on the Property not previously contemplated and analyzed in the Shepherd North EIR tha t would result in new or substantially more severe impacts.

Therefore, a subsequent EIR is not required per CEQA Guidelines section 15162. 257
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DEVELOPMENT SERVICES AND CAPITAL PROJECTS DIVISION
2220 Tulare Street, Sixth Floor / Fresno, California 93721 / Phone (559) 600-4497 / 600-4022 / 600-4545 / FAX 600-4200 The County of Fresno is an Equal Employment Opportunity Employer

DEPARTMENT OF PUBLIC WORKS AND PLANNING
STEVEN E. WHITE, DIRECTOR

December 3, 2024

George Gonzalez MPA, Senior Planner
City of Clovis Planning and Development Services
1033 Fifth Street Clovis, CA 93612

SUBJECT: City of Clovis RO313, R2024-008

Dear Mr. Gonzalez,

The County of Fresno appreciates the opportunity to review and comment on the subject project being reviewed by the City of Clovis. The proposed Annexation and Rezoning of multiple APNS across approximately 38-acres on the southeast corner of the N Sunnyside and E. Perring.

The documents received for this review were circulated to our various Fresno County Public Works and Planning divisions. See comments below.

Fresno County Transportation Planning:

This application, along with other land use applications requiring annexation—whether already approved or currently under review—has impacted nearby county roads due to the growth of residential developments within the City of Clovis. With the anticipated increase in traffic from the expanding development, and safety concerns, the county recommends that the following intersections and road segments be annexed into the City of Clovis.:

Intersections:

N. Sunnyside Avenue and Perrin Avenue
Ticonderoga Avenue and N. Fowler Avenue

The entire Right-of-Way for the following Segments:

N. Sunnyside Avenue north of Perrin Avenue
Perrin Avenue between Sunnyside Avenue and N. Stanford Avenue N. Stanford Avenue between Perrin Avenue and Ticonderoga Avenue E. Solar Avenue (cul-de-sac) east of N. Stanford Avenue Ticonderoga Avenue between N. Stanford Avenue and N. Fowler Avenue

Fresno County Environmental Health Division:

Recommended Conditions of Approval:

Future projects have the potential to expose nearby residents to elevated noise levels. Consideration should be given to the City of Clovis Municipal Code and the Fresno County Noise Ordinance Code.

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2 As a measure to protect ground water, all water wells and/or septic systems that exist or have been abandoned within the project area should be properly destroyed by an appropriately licensed contractor.

Should any underground storage tank(s) be found during the project, the applicant shall apply for and secure an Underground Storage Tank Removal Permit from the Fresno County Department of Public Health, Environmental Health Division. Contact the Fresno County Hazmat Compliance Program at (559) 600-3271 for more information.

Fresno County Road Maintenance and Operations Division:

Perrin Avenue is a County maintained road classified as a Local road with an existing 60’ total road right-of-way from Sunnyside Avenue to Stanford Avenue. Ultimate right-of-way of 60’ per Fresno County General Plan.

Lexington Avenue is a County maintained road classified as a Local road with an existing 60’ total road right-of-way. Ultimate right-of-way of 60’ per Fresno County General Plan.

Purdue Avenue is a County maintained road classified as a Local road with an existing 60’ total road right-of-way. Ultimate right-of-way of 60’ per Fresno County General Plan.

The City of Clovis should be required to annex the full road right-of-way width of Perrin Avenue along proposed annexation limits.

Sincerely,

Arianna Brown
Arianna Brown, Planner -- Development Services and Capital Projects Division

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TO:

FROM:

DATE:

SUBJECT:

ATTACHMENTS:

C I T Y 01 C L O V I S

REPORT TO THE CITY COUNCIL
Mayor and City Council
Planning and Development Services
June 17, 2024
Consider policy direction on a request for 18 rural County residents seeking annexation (approximately 38 acres) to the City of Clovis for properties located near the southeast corner of Perrin Road and N.

Sunnyside Avenue. Quail Run 18 Association, applicant; Rich Wathen and Jared Callister, representatives.

Staff: George Gonzalez, Senior Planner
Recommendation: Provide Policy Direction

1. Justification Letter

CONFLICT OF INTEREST
Councilmembers should consider recusal if a campaign contribution exceeding $250 has been received from the project proponent (developer, applicant, agent, and/or participants) within the preceding 12 months (Government Code 84308).

RECOMMENDATION
Staff recommends that the City Council consider the Quail Run 18 Association (Applicant) letter (see Attachment 1) provided in this report, together with any public comments offered regarding this item, and provide policy direction regarding the annexation proposal and connection to City water for properties located at the southeast corner of Perrin Road and N. Sunnyside Avenues (approximately 38 acres).

EXECUTIVE SUMMARY
The Applicant has requested consideration and direction from the City Council to be able to move forward with the prezoning and annexation of 18 rural residential properties (approximately 38 acres) located on the south side of Perrin Road, east of N. Sunnyside Avenue. Subsequent to the approval of the Shepherd North Project (see Figure 1 below) on March 18, 2024 and May 6, 2024, Planning staff has received the attached justification letter from 18 rural residential property owners requesting annexation and connection to City potable water. Staff is seeking policy direction on the fiscal impacts of annexing a fully developed area into the City for the purpose of securing water. If Council authorizes staff to move forward with the Applicant's request, the City will need to address the following: the tax sharing agreement revenues with the �------------ATTACHMENT7 ____________ �
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County; address City standards for water connections; provide City services, purchase/ secure FID water supply; executing associated annexation agreements; and likely other unknown issues associated with this request. City staff will also need to evaluate if the Applicant will be required to annex into the City's Landscape Maintenance District (LMD) and if active wells will require a meter.

When fully developed properties (such as the Quail Run Neighborhood) are annexed into the City, the City only receives a very minor portion of the property taxes going forward, but incurs the total cost of providing all services, such as police and fire. Also, it's important to note on this request if directed to begin the annexation process, that the Applicant would be responsible for all costs associated with the annexation and water connections. This would include the associated construction costs, City impact fees, and LAFCo fees, which in total will likely be several hundred thousand dollars. It is likely that some form of agreement between the City and the Applicant would be necessary to memorialize all conditions of the annexation.

FIGURE 1
= Quail Run 18 Association (neighborhood boundaries)

BACKGROUND
On March 18, 2024, the City Council approved the Project EIR, sphere of influence expansion, and annexation components for the Shepherd North Project. The annexation component ATTACHMENT 7
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encompassed only the development area, identified as Vesting Tentative Tract Map 6205 (see Figure 1 above). The Council continued the remaining components of the Project to a date certain, May 6, 2024.

On May 6, 2024, the City Council approved the remaining components of the Shepherd North Project and authorized staff to forward the Fourth Amendment to the MOU to the County Board of Supervisors for consideration and approval.

During the entitlement processing of the Shepherd North Project, some of the neighbors inquired about annexation into the City and if this would be possible with the Wilson TM6205 Project.

Staff informed the neighbors that the annexation of this rural residential neighborhood would need to be processed under separate planning entitlements.

On June 4, 2024, the Board of Supervisors approved the Fourth Amendment to the MOU between the County of Fresno and the City of Clovis for the Shepherd North Project.

PROPOSAL AND ANALYSIS
The Quail Run neighborhood (Quail Run 18 Association) is located within the recently expanded sphere of influence boundaries approved by Council on March 18, 2024 for the Shepherd North Project. The current land use designation for the subject area is Rural Residential under the City's general plan land use diagram. If Council directs staff to move forward with the applicant's request, the land use designation would remain the same. The subsequent planning entitlements required to be submitted to initial the request are a pre-zoning and annexation application(s).

In general, the geographical location of the Quail Run neighborhood between the Lennar TM6200 development on the west side of N. Sunnyside Avenue and the recently approved Wilson's TM6205 at the northeast corner of Shepherd and N. Sunnyside Avenues makes access to City water infrastructure feasible. Additionally, with the Council's approval of Wilson's TM6205, the project is conditioned to install a water line along Perrin Road, which is intended to serve the neighborhood in question.

Below, please find a general summary of the requirements by Planning and Development Services, if staff is directed to proceed by Council. It's important to note that the summary below is subject to change based on formal analysis of the proposed project after the submittal of complete planning applications. Upon submittal of planning applications, staff anticipates bringing this back to Council within 4 months for review and consideration.

Planning Division Requirements
The applicant is required to comply with the following Planning Division requirements:

1. Submit formal prezoning and annexation applications to the Planning Division. a. Begin preparing environmental documents;
b. Negotiation of a stand-alone MOU and tax sharing agreement with the County; c. If an agreement with the County is unable to be reached, a funding mechanism for the 18 rural residential properties would be required.

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d. The project would need to address all LAFCo requirements; and e. The Quail Run neighborhood will be responsible for all costs associated with the annexation and water connections, including associated construction costs, City impact fees, and LAFCo fees.

Engineering Division Requirements
The applicant is required to comply with the following Engineering Division requirements:

1. Submit plans for review and approval prepared by an appropriately licensed professional. a. Main lines in the streets with roadway resurfacing;
b. Water services with water meter(s) and transceiver(s); and c. Backflow devices will be required between the well and the home, if the well remains for outdoor irrigation uses.

2. Apply for an Encroachment Permit, which will include an Inspection Fee, for the work to be performed by appropriately licensed and insured contractors.

3. Engineering fees will be due prior to commencing the work for each property that chooses to connect at this time to the public potable water system. a. Water major facilities fee
b. Water oversize fee
c. Water-front footage fee
d. Water meter(s) and transceiver(s) costs
e. Water supply fee
Building Division Requirements
The applicant is required to comply with the following Building Division requirements:

1. Submit plans for review, approval, and permitting through the Building Division. a. Well abandonment is reviewed and permitted over the counter (no plans required); b. On-site plumbing between the water meter and the home. Site plan shall show location of waterline and provide a cross-section on water line placement in the ditch (site plan shall call out material used); and
c. On-site plumbing for the backflow prevention device on the line between the well and the home, if the well remains for outdoor irrigation. The submitted plans shall have a good description of the work to be completed and provide the specifications on the backflow prevention device.

FISCAL IMPACT
The fiscal impacts on the City will be analyzed at the time of a prezone and annexation request is submitted to the Planning Division. If Council recommends moving forward with the Applicant's request, staff will return with a fiscal impact analysis at the time the project is presented to Council for consideration.

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REASON FOR RECOMMENDATION
Staff is seeking City Council direction on this request to annex the Quail Run neighborhood into the City and connect to the City's potable water system. If directed to proceed, staff will direct the Applicant to submit formal planning entitlements and begin preparing environmental documents. The City receives a very minor portion of property taxes when annexing developed rural residential properties. Therefore, it's important to note that the City would need to negotiate a stand-alone tax sharing agreement with the County of Fresno, specifically for the Quail Run neighborhood. Additionally, the City will request that the County transfer the property tax equivalent of what the City would have received had they developed in the City. If the County is unwilling to share the property taxes, staff will recommend that the Council consider a funding mechanism for the 18 rural residential properties equivalent to what the City would have received had they developed in the City.

The Quail Run neighborhood will be responsible for all costs associated with the annexation and water connections, including associated City impact fees and LAFCo fees.

ACTIONS FOLLOWING APPROVAL
If directed by the City Council to proceed, staff will bring the prezoning and annexation request back to Council for formal consideration, along with the fiscal impact analysis. If Council approves the annexation at that time, a resolution authorizing staff to apply to LAFCo will be part of the action request.

Prepared by:

Reviewed by:

George Gonzalez, MPA, Senior Planner
City Manager�
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TO: Mayor and City Council
FROM: Planning and Development Services
DATE: December 15, 2025
SUBJECT: Consider Approval – To a uthorize the City Manager to enter into an agreement with Willdan Financial Services in the amount of $131,520 for the Review and Update of the City’s Development Impact Fee Program.

Staff: Sean Smith, Deputy City Engineer / Tatiana Partain, Management Analyst
Recommendation: Approve

ATTACHMENTS: 1. Draft Agreement with Willdan Financial Services

RECOMMENDATION
For the City Council to authorize the City Manager to enter into an agreement with Willdan Financial Services (Willdan) in the amount of $131,520 for the review and update of the City’s Development Impact Fee Program.

EXECUTIVE SUMMARY
In August 2025, City staff issued a Request for Proposals (RFP) on PlanetBids for a two-phase project focused on evaluating and updating the City’s Development Impact Fee (DIF) Program.

Phase 1 – Evaluation of the Current Fee Program
This phase includes a comprehensive review of the City’s existing DIF Program to assess legal compliance, policy alignment, and consistency with regional practices.

Phase 2 – Revisions to the Major Facilities Fees Program, Optional Re -Evaluation and Fee Recommendations, and Nexus Study Updates
This phase includes a restructuring of the City’s major facilities fee programs (water and sewer), developing fee calculation tools and staff training materials, and providing recommendations for alternative collection methods. The consultant may also propose additional program modifications for City consideration and potential contract amendment.

Only one proposal was r eceived—from Willdan Financial Services . Their submission was detailed and demonstrated a strong understanding of the project scope. Following an interview 268
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with their project team, City staff unanimously concluded that Willdan possesses the expertise and approach necessary to deliver a comprehensive, defensible, and effective update to the City’s DIF Program.

BACKGROUND
The City assesses a variety of cost-recovery based development fees in accordance with Clovis City Council’s guiding principle that “devel opment pays its way.” These fees help fund the infrastructure necessary to serve new growth, including major facilities such as sewer, water, community sanitation, parks, major streets, public safety, and the undergrounding of overhead utilities.

Over time, the City has implemented numerous updates to these fees to meet the evolving needs of Clovis’s growing community. These updates have been driven by factors such as changes in state law, the 2014 General Plan Update (which is currently undergoing revision), the 2017/2018 Master Plan Update, and various annual adjustments made in response to current market conditions.

Recently, at the request of the City Council, the City Attorney’s Office, and the development community, City staff was asked to explore what an in-depth analysis and potential restructuring of the current fee programs would entail. Staff determined that the most effective approach would be to engage an outside consultant to conduct this analysis, collaborate with stakeholder groups and City staff, and ultimately update and refine the existing program. The goal is to ensure the revised Development Impact Fee (DIF) Program continues to uphold the principle that “development pays its way”, adhere to all state laws and local policies, while also being easier for staff and the public to understand and apply.

To achieve this, staff developed a detailed Request for Proposals (RFP) ( Exhibit A to the attached agreement) that divides the work into two distinct phases. This approach ensures the entire program is reviewed comprehensively and maintains a unified timeline for future updates.

The objective of this project is to produce an updated DIF Program that meets the City’s current needs while also accounting for future growth. The selected consultant will provide staff training and develop tools to enhance transparency and usability, including updated fee estimation tools, mapping resources for each fee program, and a user-friendly self-service tool allowing the public to generate fee estimates.

City staff has also emphasized that stakeholder engagement will be essential to the project’s success. Willdan’s proposal includes up to ten (10) in -person meetings with City staff, stakeholders, and/or the City Council.

According to Willdan’s proposed schedule, the project is expected to begin in January 2026 and take approximately 12 months to complete . Around the project’s midpoint, staff plans to host a Council workshop to share progress and get feedback before finalizing the report. City Staff anticipates bringing the final product back to council for approval in early 2027.

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FISCAL IMPACT
The cost proposal submitted by Willdan Financial Services was $131,520. The administrative fee allocation of the Development Fee Program will fund this project.

REASON FOR RECOMMENDATION
Willdan Financial Services has a strong background and reputation in the area of Development Fee Programs. The two project team members combined bring over 45 years of experience in assisting cities with projects such as ours. The feedback provided during the reference check was extremely positive and complimentary to the two specific individuals members of the proposed project team.

ACTIONS FOLLOWING APPROVAL
City staff will finalize the agreement and route it for signatures. The project is proposed to take 12 months to complete and will kickoff in January 2026.

CONFLICT OF INTEREST
None.

Prepared by: Tatiana Partain, Management Analyst

Reviewed by: City Manager AH
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CITY OF CLOVIS

CONSULTANT SERVICE AGREEMENT

This Consultant Services Agreement ("Agreement") is entered into between the City of Clovis, a California general law city ("City") and Willdan Financial Services ("Consultant") with respect to the following recitals, which are a substantive part of this Agreement. This Agreement shall be effective on December _____, 2025 ("Effective Date").

RECITALS

A. City desires to obtain services to conduct a formal review and update (including nexus studies) to the City’s Development Impact Fees ("Services") more fully described in Exhibit A, and, if applicable, as further set forth in the proposal from Consultant attached as Exhibit B, which are incorporated herein by reference.

B. Consultant is engaged in the business of furnishing the Services and hereby warrants and represents that Consultant is qualified, experienced, and capable of performing the Services, and possesses any required licenses, certifications, security/bonding, and/or training necessary to perform the Services.

C. City desires to retain Consultant, and Consultant desires to provide the City with the Services, on the terms and conditions as set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual agreements herein, City and Consultant agree as follows:

AGREEMENT

1. Scope of Services. Consultant shall perform the Services described in the Recitals and detailed in Exhibits A & B. Changes in the scope of Services, including the work performed and/or deliverables produced, shall be made in writing and particularly describe the changes in Services, including payment/costs and schedule/term, as applicable.

2. Priority and Conflicts; Exclusions. If the terms and requirements of this Agreement and/or Exhibit A conflict with Exhibit B, this Agreement and Exhibit A shall control. No contractual terms and/or conditions found in Exhibit B shall purport to waive, disclaim, or limit Consultant’s liability, indemnification obligations, warranties, damages for breach or delay, or any security, bonding, or insurance requirements, and any such provisions shall have no force or effect with respect to this Agreement and the Services performed by Consultant.

3. Term of Agreement; Commencement of Services; Schedule. Consultant shall perform the Services according to the schedule set forth in Exhibits A and/or B, if applicable. If no schedule is set forth in Exhibits A and/or B, City and Consultant shall mutually agree on a schedule for performance of the Services and completion of any deliverables. The schedule shall be subject to modification based on the City’s operational needs. City will notify Consultant in advance of any modification to the schedule.

4. Payment for Services. City shall pay Consultant for the Services performed pursuant to this Agreement according to the rate(s) stated in Exhibit A or in Consultant’s Proposal, which is set forth in Exhibit B, as applicable. The total amount paid by City to Consultant shall not exceed _one hundred thirty- one thousand, five hundred twenty dollars ($131,520.00).

Attachment 1
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The foregoing is inclusive of all labor, equipment, materials, costs and expenses, taxes, and overhead. City shall pay Consultant for Services satisfactorily performed pursuant to this Agreement. Consultant shall submit monthly invoices to City containing detailed billing information regarding the Services provided and unless otherwise specified in Exhibit A, City shall tender payment to Consultant within thirty (30) days after receipt of invoice.

5. Independent Contractor Status. Consultant and its subcontractors shall perform the Services as independent contractors and not as officers, employees, agents or volunteers of City. Consultant is engaged in an independently established trade, occupation, or business to perform the Services required by this Agreement and is hereby retained to perform work that is outside the usual course of City’s business.

Consultant is free from the control and direction of City in connection with the manner of performance of the work. Nothing contained in this Agreement shall be deemed to create any contractual relationship between City and Consultant's employees or subcontractors, nor shall anything contained in this Agreement be deemed to give any third party, including but not limited to Consultant's employees or subcontractors, any claim or right of action against City.

6. Consultant Representations; Standard of Care; Compliance with Law. Consultant represents that Consultant and any subcontractors utilized by Consultant are and will be qualified in the field for which Services are being provided under this Agreement and Consultant and any subcontractors are now, and will be throughout their performance of the Services under this Agreement, properly licensed, certified, secured/bonded, trained, and/or otherwise qualified and authorized to perform the Services required and contemplated by this Agreement, as may be required by law. Consultant and its subcontractors shall utilize the standard of care and skill customarily exercised by members of their profession, shall use reasonable diligence and best judgment while performing the Services, and shall comply with all applicable laws, regulations, and industry standards.

7. Identity of Subcontractors and Sub-Consultants. Consultant shall, before commencing any work under this Agreement, provide to City in writing: (a) the identity of all subcontractors and sub-consultants (collectively referred to as "subcontractors"), if any, Consultant intends to utilize in Consultant's performance of this Agreement; and (b) a detailed description of the full scope of work to be provided by such subcontractors. Consultant shall only employ subcontractors pre-approved by City and in no event shall Consultant replace an approved subcontractor without the advance written permission of City, with the understanding that City's permission will not be unreasonably withheld. Notwithstanding any other provisions in this Agreement, Consultant shall be liable to City for the performance of Consultant's subcontractors.

8. Subcontractor Provisions. Consultant shall include in its written agreements with its subcontractors, if any, provisions which: (a) impose upon the subcontractors the obligation to provide to City the same insurance and indemnity obligations that Consultant owes to City; (b) make clear that City intends to rely upon the reports, opinions, conclusions and other work product prepared and performed by subcontractors for Consultant; and (c) entitle City to impose upon subcontractors the assignment rights found elsewhere in this Agreement.

9. Power to Act on Behalf of City. Consultant is not acting as an agent of City and shall not have any right, power, or authority to create any obligation, express or implied, or make representations on behalf of City except as may be expressly authorized in advance in writing from time to time by City and then only to the extent of such authorization.

10. Record Keeping; Reports. Consultant shall keep complete records showing the type of Services performed. Consultant shall be responsible and shall require its subcontractors to keep similar records. City shall be given reasonable access to the records of Consultant and its subcontractors for inspection and audit

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purposes. Consultant shall provide City with a working draft of all reports upon reasonable request by City and of all final reports prepared by Consultant under this Agreement.

11. Ownership and Inspection of Documents. All data, tests, reports, analyses, documents, records, conclusions, opinions, recommendations and other work product generated by or produced for Consultant or its subcontractors in connection with the Services, regardless of the medium, including physical drawings and materials recorded on computer discs or other electronic devices ("Work Product"), shall be and remain the property of City. City shall have the right to use, copy, modify, and reuse the Work Product as it sees fit.

Upon City's request, Consultant shall make available for inspection and copying all such Work Product and all Work product shall be turned over to City promptly at City's request or upon termination of this Agreement, whichever occurs first. Consultant shall not release any Work Product to third parties without prior written approval of City. This obligation shall survive termination of this Agreement and shall survive for four (4) years from the date of expiration or termination of this Agreement.

12. Confidentiality. All Work Product prepared and performed by and on behalf of Consultant in connection with the Services performed pursuant to this Agreement shall be kept confidential and shall be disclosed only to City, unless otherwise provided by law or expressly authorized by City. Consultant shall not disclose or permit the disclosure of any confidential information acquired during performance of the Services, except to its agents, employees and subcontractors who need such confidential information in order to properly perform their duties relative to this Agreement. Consultant shall also require its subcontractors to be bound to these confidentiality provisions.

13. City Name and Logo. Consultant shall not use City's name or insignia, photographs relating to the City projects or work for which Consultant's services are rendered, or any publicity pertaining to the Consultant's Services under this Agreement in any magazine, trade paper, newspaper, television or radio production, internet website, social media, or other similar medium without the prior written consent of City.

14. Conflicts of Interest. Consultant warrants that neither Consultant nor any of its employees have an improper interest, present or contemplated, in the Services which would affect Consultant’s or its employees’ performance of the Services and the Work Product produced. Consultant further warrants that neither Consultant nor any of its employees have real property, business interests or income that will be affected by the Services. Consultant covenants that no person having any such interest, whether an employee or subcontractor shall perform the Services under this Agreement. During the performance of the Services, Consultant shall not employ or retain the services of any person who is employed by the City or a member of any City Board or Commission.

15. Non-liability of Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successors in interest, in the event of a default or breach by City for any amount which may become due Consultant or its successor, or for any breach of any obligation under the terms of this Agreement.

16. City Right to Employ Other Consultants. Unless Exhibit A specifically provides that the Services City seeks pursuant to this Agreement are exclusive to Consultant, this Agreement and performance of the Services are non-exclusive and City reserves the right to employ other consultants in connection with the Services while this Agreement is in effect.

17. Termination of Agreement. This Agreement shall terminate as provided in Section 3, unless terminated earlier pursuant to the following:

a. Termination by City: For Convenience. City may at its discretion terminate this Agreement for convenience and without cause upon fourteen (14) days prior written notice to Consultant. Upon receipt

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of a termination notice pursuant to this subsection, Consultant shall promptly discontinue all Services affected, unless the notice directs otherwise.

b. Termination by City or Consultant: For Cause. Either party may terminate this Agreement upon ten (10) days prior written notice to the other party of a material breach, and a failure within that time period to cure or commence reasonable steps to cure the breach.

c. Compensation to Consultant Upon Termination. Consultant shall be paid compensation for Services satisfactorily performed prior to notice of termination. As to any phase partially performed but for which the applicable portion of Consultant's compensation has not become due, Consultant shall be paid the reasonable value of its Services provided. However, in no event shall such payment when added to any other payment due under the applicable part of the work exceed the total compensation of such part as specified Section 4. In the event of termination due to Consultant’s failure to perform in accordance with the terms of this Agreement through no fault of City, City may withhold an amount that would otherwise be payable as an offset to City's damages caused by such failure.

d. Effect of Termination. Upon termination of this Agreement, Consultant shall: (i) promptly discontinue all Services affected, unless the notice of termination directs otherwise; and (ii) deliver or otherwise make available to the City, without additional compensation, all Work Product and/or deliverables accumulated by the Consultant in performing this Agreement, whether completed or in process. Consultant may not refuse to provide such Work Product for any reason whatsoever.

18. Insurance. Consultant shall satisfy the insurance requirements set forth in Exhibit C.

19. Indemnity and Defense. Consultant hereby agrees to indemnify, defend and hold the City, its officials, officers, employees, agents, and volunteers harmless from and against all claims, demands, causes of action, actions, damages, losses, expenses, and other liabilities, (including without limitation reasonable attorney fees and costs of litigation) of every nature arising out of or in connection with the alleged or actual acts, errors, omissions or negligence of Consultant or its subcontractors relating to the performance of Services described herein to the fullest extent permitted by law, unless the injuries or damages are the result of City's sole negligence or willful misconduct, subject to any limitations imposed by law. Consultant and City agree that said indemnity and defense obligations shall survive the expiration or termination of this Agreement for any items specified herein that arose or occurred during the term of this Agreement.

20. Taxes. Consultant agrees to pay all taxes, licenses, and fees levied or assessed by any governmental agency on Consultant incident to the performance of Services under this Agreement, and unemployment and workers’ compensation insurance, social security, or any other taxes upon the wages of Consultant, its employees, agents, and representatives. Consultant agrees to obtain and renew an annual business tax certificate from City and pay the applicable annual business registration tax to City during the term of this Agreement.

21. Assignment. Neither this Agreement nor any duties or obligations hereunder shall be assignable by Consultant without the prior written consent of City. In the event of an assignment to which City has consented, the assignee shall agree in writing to personally assume and perform the covenants, obligations, and agreements herein contained. In addition, Consultant shall not assign the payment of any monies due Consultant from City under the terms of this Agreement to any other individual, corporation or entity. City retains the right to pay any and all monies due Consultant directly to Consultant.

22. Form and Service of Notices. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served upon, or given to either party to this Agreement by the

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other party shall be in writing and shall be deemed properly delivered, served or given by one of the following methods:

a. Personally delivered to the party to whom it is directed. Service shall be deemed the date of delivery.

b. Delivered by e-mail to a known address of the party to whom it is directed provided the e- mail is accompanied by an acknowledgment of receipt by the other party. Service shall be deemed the date of acknowledgement.

c. Delivery by a reliable overnight delivery service, ex., Federal Express, receipted, addressed to the addressees set forth below the signatories to this Agreement. Service shall be deemed the date of delivery.

d. Delivery by deposit in the United States mail, first class, postage prepaid. Service shall be deemed delivered ninety-six (96) hours after deposit.

23. Entire Agreement. This Agreement, including the Exhibits and any other attachments, represents the entire Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either written or oral with respect to the subject matter herein. This Agreement may be amended only by written instrument signed by both City and Consultant.

24. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

25. Authority. The signatories to this Agreement warrant and represent that they have the legal right, power, and authority to execute this Agreement and bind their respective entities. Evidence of Consultant’s authority is attached as Exhibit D.

26. Severability. In the event any term or provision of this Agreement is declared to be invalid or illegal for any reason, this Agreement will remain in full force and effect and will be interpreted as though such invalid or illegal provision were not a part of this Agreement. The remaining provisions will be construed to preserve the intent and purpose of this Agreement and the parties will negotiate in good faith to modify any invalidated provisions to preserve each party’s anticipated benefits.

27. Applicable Law and Interpretation and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. The language of all parts of this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against either party. This Agreement is entered into by City and Consultant in the County of Fresno, California. Consultant shall perform the Services required under this Agreement in the County of Fresno, California. Thus, in the event of litigation, venue shall only lie with the appropriate state or federal court in Fresno County.

28. Amendments and Waiver. This Agreement shall not be modified or amended in any way, and no provision shall be waived, except in writing signed by the parties hereto. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

29. Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any party not a signatory to this Agreement.

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30. Execution in Counterparts. This Agreement may be executed in counterparts such that the signatures may appear on separate signature pages. A copy or an original, with all signatures appended together, shall be deemed a fully executed Agreement.

31. Alternative Dispute Resolution. If a dispute arises out of or relating to this Agreement, or the alleged breach thereof, and if said dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by non-binding mediation before resorting to litigation. The mediator shall be mutually selected by the parties, but in case of disagreement, the mediator shall be selected by lot from among two nominations provided by each party. All costs and fees required by the mediator shall be split equally by the parties, otherwise each party shall bear its own costs of mediation. If mediation fails to resolve the dispute within thirty (30) days, either party may pursue litigation to resolve the dispute.

Demand for mediation shall be in writing and delivered to the other party to this Agreement.

A demand for mediation shall be made within reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for mediation be made after the date when institution of legal or equitable proceedings based on such a claim, dispute or other matter in question would be barred by California statues of limitations.

32. Non-Discrimination. Consultant shall not discriminate on the basis of any protected class under federal or State law in the provision of the Services or with respect to any Consultant employees or applicants for employment. Consultant shall ensure that any subcontractors are bound to this provision. A protected class, includes, but is not necessarily limited to race, color, national origin, ancestry, religion, age, sex, sexual orientation, marital status, and disability.

Now, therefore, the City and Consultant have executed this Agreement on the date(s) set forth below.

CONSULTANT CITY OF CLOVIS

By: __________________________ By: ______________________________ Robert Fisher, Vice President Andrew Haussler, City Manager

Date: __________________ Date: ______________________

Party Identification and Contact Information:

Consultant City of Clovis
Willdan Financial Services Planning and Development Services Attn: James A. Edison, JD, MPP, MA Attn: Sean Smith, PE Principal-in-Charge Deputy City Engineer/ Project Manager 66 Franklin Street, Suite 300 1033 Fifth Street
Oakland, CA 94607 Clovis, CA 93612
[email protected] [email protected]
800.755.6468 559.324.2363

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EXHIBIT A

REQUEST FOR PROPOSALS

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CITY OF CLOVIS

REQUEST FOR REVIEW AND UPDATES TO THE

CITY OF CLOVIS

DEVELOPMENT IMPACT FEE PROGRAM

August 18, 2025

City of Clovis
Planning and Development Services
1033 Fifth Street
Clovis, CA 93612
(559) 324-2350
www.cityofclovis.com

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SUMMARY

Purpose: The City of Clovis is requesting proposals from qualified and experienced Consultant firms interested in reviewing and providing recommended modifications to the City’s Development Impact Fee Program.

Proposal Due Date: 3:00 p.m., September 23, 2025
Proposal packages received after the time and date stated above will be returned unopened to the consultant.

Submittals: One (1) paper copy of the proposal and the separate, sealed cost proposal along with a flash drive containing an electronic copy of the proposal in PDF.

Addressed to: City of Clovis
Planning and Development Services – Engineering Division c/o Sean Smith, Deputy City Engineer
1033 Fifth Street
Clovis, CA 93612
PROJECT: Development Impact Fee RFP
Notification List: The full content of the RFP is available free of charge from the vendor portal of PlanetBids, Inc., which is accessible on the City of Clovis website. If addenda are necessary, they will be posted onto PlanetBids, Inc. as well.

Inquiries: Requests for clarification regarding this RFP must be submitted via email to Sean Smith at [email protected], no later than 3:00 p.m., September 9, 2025. Responses to timely inquiries will be posted via addendum to PlanetBids, on or about September 12, 2025.

Any other communication or solicitation with other City of Clovis Officials or Employees regarding any aspect of this RFP is expressly prohibited and may result in disqualification.

Funding: Funding for this project will come from the City of Clovis Development Impact Fee Program.

The City will not provide a budget for this proposal. Rather, it is the expectation of the City that interested parties estimate the cost of the project based on the deliverables being requested in this proposal.

Anticipated Consultant
Selection Schedule:

Proposal Review and Evaluation: September 24 – October 10, 2025 Interview Top Consultant(s): October 21 – October 23, 2025 (in person only) Selection/Negotiation: October 27 – November 14, 2025
Anticipated Council Approval & Award: December 8, 2025
Anticipated Notice to Proceed: January 5, 2026

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TABLE OF CONTENTS

INTRODUCTION .......................................................................................................................................................................... 4 CITY OF CLOVIS BACKGROUND ..................................................................................................................................... 4 GENERAL PROJECT DESCRIPTION ................................................................................................................................ 4 DEVELOPMENT FEE PROGRAM BACKGROUND ........................................................................................................... 5 PROJECT REQUIREMENTS ....................................................................................................................................................... 5 APPLICANT REQUIREMENTS .......................................................................................................................................... 5 SAMPLE CONSULTANT AGREEMENT ............................................................................................................................. 6 INSURANCE REQUIREMENTS ......................................................................................................................................... 6 PROJECT SCOPE ....................................................................................................................................................................... 6 GENERAL ........................................................................................................................................................................... 6 PHASE 1 – EVALUATION OF CURRENT FEE PROGRAM ....................................................................................................... 7 TASK 1: OVERALL PROJECT MANAGEMENT ................................................................................................................. 7 TASK 2: EVALUATION OF CURRENT DEVELOPMENT IMPACT FEE (DIF) PROGRAM................................................ 8 TASK 3: REVIEW OF REIMBURSEMENT AND CREDIT POLICY .................................................................................... 9 TASK 4: REVIEW ALTERNATIVE DIF FINANCING METHODS ........................................................................................ 9 TASK 5: SUMMARY, PRESENTATION OF FINDINGS & DRAFT TOOLS ...................................................................... 10 TASK 6: FINAL REVIEW OF DELIVERABLES ................................................................................................................. 10 PHASE 2 – REVISIONS TO THE DIF PROGRAM – WATER & SEWER PROGRAMS, NEXUS STUDIES, AND OTHER ASSOICATED ITEMS ................................................................................................................................................................ 11 TASK 1: OVERALL PROJECT MANAGEMENT ............................................................................................................... 11 TASK 2: WATER & SEWER FEE UPDATE ...................................................................................................................... 11 TASK 3: OTHER FEE UPDATE & ADDITIONAL FEES (OPTIONAL) .............................................................................. 11 TASK 4: NEXUS STUDY UPDATE ................................................................................................................................... 12 TASK 5: STAFF TRAINING .............................................................................................................................................. 12 TASK 6: SUMMARY OF INFORMATION, AND PRESENTATION OF FINDINGS ........................................................... 12 TASK 7: FINAL REVIEW OF DELIVERABLES ................................................................................................................. 13 TASK 8: ONGOING SUPPORT (OPTIONAL) ................................................................................................................... 13 PROPOSAL SUBMITTAL AND CONTENT REQUIREMENTS .................................................................................................. 13 SUBMITTAL AND CONTENT REQUIRED ....................................................................................................................... 14 CLARIFICATIONS OF REFERENCE MATERIAL CONFLICTS ....................................................................................... 16 CONSULTANT SELECTION PROCEDURES ........................................................................................................................... 16 DISCLAIMER .................................................................................................................................................................... 17 APPENDICES ............................................................................................................................................................................ 17

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INTRODUCTION

CITY OF CLOVIS BACKGROUND
Located in the heart of the great San Joaquin Valley, in the Fresno-Clovis Metropolitan Area, the City of Clovis (“City”) is situated in the midst of the richest agricultural area in the world. Since the City’s incorporation in 1912, Clovis remains a community that values its citizens, its “way of life”, and its future as a leader and innovator in the San Joaquin Valley. Clovis has maintained the small-town community spirit envisioned by its early founders, as reflected in its nationally acclaimed school district, responsive safety services, engaged local government, and vibrant community events. Availability of housing, quality hospital care, a mild climate, access to varied recreational opportunities, and strong community identity all contribute to Clovis’ recognition and reputation as a great place to live.

GENERAL PROJECT DESCRIPTION
The City is interested in securing an experienced consultant with a proven track record to conduct an in-depth review and evaluation of the City’s complete Development Impact Fee (“DIF”) program (hereinafter referred to as “Project”). The assigned consultant (or consultants) will be tasked to conduct an in-depth analysis of the current fee structure and methodology for each fee assessed by the City. This work includes a thorough review of the nexus analysis for each fee. As a part of the evaluation, the Consultant will also be asked to recommend which fees should be updated, and to propose any additional fees that could be considered, as appropriate. The City’s fees must comply with any applicable state and federal law including but not limited to the Mitigation Fee Act (California Government Code section 66000 et seq., also known as Assembly Bill 1600 (1987)).

The Project is divided into two distinct phases.

Phase 1 will consist of a thorough assessment of the current Development Impact Fee (DIF) program for all fees, including applicable sections of the City Municipal Code and City Policies.

Phase 2 will consist of updates to the City’s current Major Facilities Fee Programs (water and sewer) as well as a full nexus report including updates to the nexus studies for all the City’s existing fee programs to ensure compliance with the Mitigation Fee Act. It is the expectation of the City that staff training for all revised fees be included in this phase as well as a presentation to all stakeholders and Clovis City Council. The second part of Phase 2, if initiated at the City’s discretion, will be based on the findings from Phase 1 and will consist of an update to the remaining fees in the DIF program, including revised fees and implementation strategies. A detailed task breakdown for each phase can be found under Project Scope.

Consultants shall provide a detailed cost estimate for Phase 1 and Phase 2 of the project. The cost estimate may include optional add-ons for Phase 2, subject to City review and approval following the completion of Phase1.

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DEVELOPMENT FEE PROGRAM BACKGROUND
The City assesses a variety of cost-recovery based development fees in accordance with Clovis City Council’s guiding principle that “development pays its way.” These fees help fund the infrastructure necessary to serve new growth, including major facilities such as sewer, water, community sanitation, parks, major streets, public safety, and the undergrounding of overhead utilities.

Over time, the City has implemented numerous updates to these fees to meet the evolving needs of Clovis’s growing community. These updates have been driven by factors such as changes in state law, the 2014 General Plan Update (which is currently undergoing revision), the 2017/2018 Master Plan Update, and various annual adjustments made in response to current market conditions.

The City will provide detailed information on each fee program. Such information may include files in Excel format and maps in PDF format. Additionally, the City will provide the selected consultant with:

City Council agenda packages for the rates that took effect on the nine (9) following dates:
 2013-09-17
 2015-05-04
 2018-09-10
 2019-09-16
 2020-08-17
 2021-07-19
 2022-08-29
 2023-08-07
 2025-07-21

City Council agenda packages and supporting spreadsheets in MS Excel format for the rates that took effect on:
 2024-08-12
 2025-05-13 (Water Major Facilities revision only)
The City’s project team, which possess familiarity with the DIF Program and its history, will be available to support the selected consultant by providing relevant background information, answering questions, and offering insights based on their experience.

PROJECT REQUIREMENTS

APPLICANT REQUIREMENTS
The City is expecting that all proposals received are prepared by qualified firms with experience evaluating DIFs, advising municipalities on their implementation and making suggested refinements of these programs. As a part of this RFP, all proposers are to provide at least three (3) references within the last five (5) years for similar projects.

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SAMPLE CONSULTANT AGREEMENT
The Sample Consultant Agreement (Appendix C) is a template of the Consultant Service Agreement that the City intends to use for this project. It is recommended that the Consultant review the sample Agreement with legal and insurance providers. Generally, the City does not negotiate the terms for such Agreements, but a proposing Consultant shall raise any concerns about the Agreement and identify all contract issues in its proposal. The City reserves the right to modify this agreement prior to award.

INSURANCE REQUIREMENTS
Insurance Requirements (Appendix B) contains the insurance criteria set by the City’s Risk Management Department.

PROJECT SCOPE

GENERAL
The City is interested in contracting with a consultant that will conduct and coordinate specified tasks related to reviewing and updated the City’s DIF Program.

The work shall comply with the requirements in this RFP including the following without limitation, and any subsequent contract as though incorporated herein by reference:

1. Federal laws

2. State laws

3. Local laws

4. Rules and regulations governing municipal Development Impact Fees

The Consultant is asked to further define the scope of work in the following and to make scope enhancements based on their knowledge of Development Impact Fees and their study requirements. It is requested that the Consultant include proposed deliverables in their scope of work based on the generalized scope below.

Prior to beginning work, the Consultant will develop a plan for executing the work, including a timeline and requirements for City staff time and other City resources. The City shall be provided with a reasonable opportunity to review the plan and provide feedback, and the consultant shall make revisions accordingly. The Consultant’s timeline will include the review of the above information as well as the recommended tasks listed below.

(Note: The Project is not limited to the tasks listed below and if the Consultant recommends additional tasks are warranted, they must be clearly highlighted within their proposal.)

The City intends to implement this work in two phases, which are briefly highlighted below but are covered further under each specific phase section.

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 Phase 1 – Evaluation of Current Fee Program
The Consultant will conduct a comprehensive review and evaluation of the City’s current DIF Program for legal compliance, policy alignment, and consistency with regional practices. Suggested tasks for Phase 1 are provided below.

 Phase 2 - Revisions to the Major Facilities Fee Program, Optional Re-Evaluation and Fee Recommendations, and Nexus Study Updates

Based on Phase 1 findings, the Consultant will assist the City in restructuring the Major Facilities Fees (water and sewer) program which may include recalculating these fees. The Consultant will also provide staff training on fee calculations, develop mapping tools, and self-service tools for estimating fees and offer recommendations on alternative collection methods.

Optional Phase 2 may be authorized as a contract amendment, at the City’s discretion, depending on the findings of Phase 1. Required portions of the phase will involve preparing updates or revisions to the remaining fees in the DIF program, including revised nexus studies and updated fee structures. It will also include staff training, mapping tools, and a self-service fee estimator. Suggested tasks associated for Phase 2 are provided below.

PHASE 1 – EVALUATION OF CURRENT FEE PROGRAM

TASK 1: OVERALL PROJECT MANAGEMENT
This task includes all work by the Consultant to effectively manage the scope, cost, and schedule of the Project. This may include, but is not limited to, the activities and deliverables identified below:

Project Administration

1. Prepare and submit monthly progress reports.

2. Prepare and submit progress payment invoices accompanied with backup material supporting the amount being invoiced at project milestones, or as negotiated within the contract, and in a form as approved by City staff. Invoices shall comply with the following requirements:
 Prepared on the consultant’s letterhead;
 Signed by the consultant’s project manager;
 Have a unique invoice number;
 Attach appropriate supportive documentation;
 Each milestone should be invoiced separately;
 A summary of the reimbursements to-date and a summary of the funds remaining in the contract;
 If the contract involves sub-consultants, an invoice from the sub-consultant should be attached in the same format as the prime consultant’s invoice and should be included in the summary of the prime consultant’s invoice;  For each sub-consultant: a summary of payments to-date and funds remaining in the contract(s).

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Project Communication

1. Prepare and submit correspondence and memos, including all meeting minutes.

2. Support and prepare materials as may be requested for meetings including but not limited to City presentations, technical advisory committees, and other stakeholders.

Project Meetings

1. Initiate and conduct monthly Project Development Team (“PDT”) Meetings. The first PDT meeting will take place one month from the date of contract execution.

2. Coordination meetings may be required to obtain required deliverables.

Deliverables for Task 1:
 Project Correspondence
 Meeting Minutes
 Meeting Agendas

TASK 2: EVALUATION OF CURRENT DEVELOPMENT IMPACT FEE (DIF) PROGRAM The Consultant will conduct a comprehensive review and evaluation of the City’s current DIF Program to assess legal compliance, policy alignment, and consistency with regional best practices. The evaluation shall focus on the following fee programs for compliance with the Mitigation Fee Act:

Existing DIF Programs to be Evaluated

 Sewer Fees (Municipal Code Chapter 6.4)
o Sewer Major Facilities Fee
o Sewer Oversize Fee
o Sewer Front Footage Fee
o Sewer House Branch Construction Fee

 Water Fees (Municipal Code Chapter 6.5)
o Water Major Facilities Fee
o Water Oversize Fee
o Water Front Footage Fee
o Non-Potable Water Fee
o Water Supply Fee
o Water Meter and Water Service with Meter Fee

 Major Street Fees (Municipal Code Chapter 7.7)
o Outside Travel Lane Fee
o Center Travel Lane Fee
o Traffic Signal Fee
o Bridge Fee

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 Community Sanitation Fee (Municipal Code Chapter 6.3)  Fire Department Fee (Municipal Code Chapter 4.10)
 Police Department Fee (Municipal Code Chapter 4.11)
 Library Fee (Municipal Code Chapter 7.8)
 Administrative Charges
Note: Full descriptions of the fees listed above can be found in Appendix D – Nexus Book.

Suggested Subtasks for Each Fee Evaluation:
 Provide supporting analysis and evidence for any recommended restructuring or reassessment of fees.
 Ensure all recommendations align with the City’s Capital Improvement Program (“CIP”) and long-range planning goals and policies.
 Develop options for phasing in updated or new fee structures, where applicable.  Include an evaluation of the recommended changes of each of the fees and how the recommendations may have impacts on future development within the City of Clovis.

Deliverables for Task 2:

Draft Fee Evaluation Report: a comprehensive report including findings from the review of each fee program, along with recommendations for revisions, updates, or next steps.

TASK 3: REVIEW OF REIMBURSEMENT AND CREDIT POLICY
The Consultant shall also review the other payment policies and options currently offered by the City. That review shall include:
 The City’s current policy for “in-lieu” fee programs.  Fee Credits and Reimbursements.

The City would also like the Consultant to provide recommendations to fee program considerations as well as phased-in increases,

Compare these policies to other comparable cities within California, including neighboring cities. Provide a complete narrative of findings and, if applicable, recommendations or revisions.

Deliverables for Task 3:

Report of evaluation of the City’s current “in-lieu” fee program with recommendations on modifications to the program.

TASK 4: REVIEW ALTERNATIVE DIF FINANCING METHODS
Review the use of alternative methods and forms of financing methods for DIF obligations.

Provide a complete narrative of the impact and necessary revisions for incorporating these alternatives. Provide a complete narrative describing the extent to which fees can be funded by use of these alternatives and their limitations. Provide examples of other comparable California cities that have incorporated the use of these alternatives, including their challenges and their successes.

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Deliverables for Task 4:

Report of alternative methods of payments, highlighting the benefits and potential negative impacts of incorporating them into the program. The Report shall include practical examples of how the alternative finance methods impact cash flow, payment of fee obligations, credits, and reimbursements.

TASK 5: SUMMARY, PRESENTATION OF FINDINGS & DRAFT TOOLS The Consultant shall provide draft findings and recommendations to City staff for review.

Draft information must be submitted in Microsoft Word and Microsoft Excel. City staff will provide feedback on the draft documents.

Following feedback from City staff, the Consultant shall submit final versions of the documents. Final documents shall be provided in Microsoft Word, Microsoft Excel and as a single, consolidated Adobe PDF document.

The Consultant will also prepare summaries of key documents in a format appropriate for presentations to senior City officials, City Council members, and other audiences. The Consultant will be expected to be available and assist the City in presenting its work to senior City officials and City Council.

As part of this task, the Consultant shall provide draft versions of the interactive mapping tool and the self-service fee estimator tool:
 The interactive mapping tool will assist City staff in visualizing boundaries or zones associated with various fee programs.
 The public-facing, self-service tool will allow customers to input project parameters and generate estimated fees. These tools will enhance transparency and predictability for both City staff and the public.

Deliverables for Task 5:
 Draft presentation materials for stakeholder meetings  Draft presentation materials for City Council meeting  Demonstration of interactive mapping tool
 Demonstration of interactive self-service estimator tool

TASK 6: FINAL REVIEW OF DELIVERABLES
The Consultant shall provide City staff with final drafts of all Phase 1 project materials. All final technical reports and map files shall be provided electronically in the following forms:

PDF, Microsoft Word, Microsoft Excel format, Map Files (Geodatabase format), as directed by City of Clovis. No files shall be password protected.

The Consultant shall assume a minimum review time of fifteen (15) working days per submittal for City of Clovis’ review of the following documents, prior to releasing for initial review by stakeholders:

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Final Deliverables for Task 6 and Phase 1 shall include:
 Final Fee Evaluation Report & Recommendations for Next Steps  Stakeholder Meeting Presentation and Meeting documents  City Council Meeting Presentation
 Final interactive mapping tool
 Final interactive self-service estimator tool

PHASE 2 – REVISIONS TO THE DIF PROGRAM – WATER & SEWER

PROGRAMS, NEXUS STUDIES, AND OTHER ASSOICATED ITEMS

TASK 1: OVERALL PROJECT MANAGEMENT
Expectations set forth in Phase 1 – Task 1 are to be carried over into Phase 2.

TASK 2: WATER & SEWER FEE UPDATE
The City has a desire, regardless of the findings of Phase 1, to have an in-depth reanalysis of its DIFs that fall under the Sewer and Water categories. These two (2) categories combine for a large portion of the fee obligation of each project and have been challenged by stakeholders.

In addition to this update, the Consultant shall be responsible for the impact these revisions have on the other fee programs and provide the City with a report.

If a restructuring of these fee programs is recommended and agreed to by the City, the Consultant shall propose an alternative fee program lay out and provide information on the impacts of the proposed restructuring.

Deliverables for Task 2:
 Fee Calculation updates for Water and Sewer Fee Programs  Report analyzing the changes for the fee program and how they impact other various fee programs.
 If restructuring is recommended, a report laying out the recommendations for restructuring that will include the rationale for the recommendation, highlighting the benefits of the new proposed fee structure and the impacts.

TASK 3: OTHER FEE UPDATE & ADDITIONAL FEES (OPTIONAL)
Should the findings of Phase 1 recommend the City re-evaluate/restructure various fees within its current fee program and the City agrees with the findings, the expectation will be that the Consultant provide an individual fee evaluation and recommendation for restructure.

All other estimates will be done on a fee-by-fee basis (not as a lump item) for cost control purposes. If the findings of Phase 1 lead to the Consultant recommending a new fee program, it shall be separated into its own line item.

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not in the fee program, but would likely need to be incorporated as the planned improvements are of regional significance and will be essential to the City’s growth. A list of these planned improvements will be provided to the consultant at project kick-off.

Deliverables for Task 3:
 Evaluation and written recommendation for each existing fee proposed for restructuring, based on Phase 1 findings and City direction.  Each fee evaluated and documented individually (not bundled), to support transparent cost tracking.
 If a completely new fee program is recommended, the evaluation must include:
o Separate scope of work line item
o Summary report explaining the justification
o Proposed fee structure
 New fee line item, summary and structure for planned major transportation infrastructure improvements.

TASK 4: NEXUS STUDY UPDATE
Under this task the Consultant shall provide a comprehensive background report, as well as technical reports for each fee that document the study results including but not limited to, methodology, findings, supporting justification, recommended impact fees and calculations that provide the legal nexus between the fee recommendations and the new development as required by law.

Deliverables for Task 4:
 A complete and legally defensible Nexus Study prepared for each fee, both existing and restructured.
 Provide for each fee:
o A separate scope of work line item
o A summary report explaining the justification
o The proposed fee structure
o An associated Nexus Study or studies

TASK 5: STAFF TRAINING
The cost estimate for Phase 2 of the Project shall include staff training regarding the newly developed methodology for the fees associated at a minimum with the fee updates under Water and Sewer. Should the City choose to engage in Task 3, staff training will also be needed to support staff for each of the restructured fees.

The proposal shall include an estimate of time to verify data and methodology of the recommended DIF programs revisions; time for coordination with City personnel familiar with the programs; and time with City personnel to discuss all recommendations. The goal is to enable City staff to fully familiarize themselves with how any fees or allocations were determined.

TASK 6: SUMMARY OF INFORMATION, AND PRESENTATION OF FINDINGS The Consultant shall provide draft revisions and recommendations to City staff for review.

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Draft information must be submitted in Microsoft Word and Microsoft Excel. City staff will provide any feedback on the draft documents within a reasonable time.

Following the feedback from City staff, the Consultant shall submit final versions of the documents. Final documents shall be provided in Microsoft Word, Microsoft Excel and as a single, consolidated Adobe PDF document.

The Consultant will also prepare summaries of key documents in a format appropriate for presentations to senior City officials, City Council members, and other audiences. The Consultant will be expected to be available and assist the City in presenting its work to senior City officials and City Council.

Deliverables for Task 6:
 Draft presentation materials for stakeholder meetings  Draft presentation materials for City Council meeting  Demonstration of interactive mapping tool
 Demonstration of interactive self-service estimator tool

TASK 7: FINAL REVIEW OF DELIVERABLES
The Consultant shall provide City staff with final drafts of all Phase 2 proposed fee outlines, Nexus Studies and all project materials. All final technical reports and map files shall be provided electronically in the following forms: PDF, Microsoft Word, Microsoft Excel format, Map Files (Geodatabase format), as directed by the City. No files shall be password protected.

The Consultant shall assume a minimum review time of 15 working days per submittal for the City’s review of the following documents, prior to releasing for initial review by stakeholders:

Final Deliverables for Task 7 shall include:
 Final Fee Program Layout
 Final Nexus Studies on all revised fees and additional fees being recommended  Stakeholder Meeting Presentation and Meeting documents.  City Council Meeting Presentation
TASK 8: ONGOING SUPPORT (OPTIONAL)
It is the City’s expectation that the Consultant will be available for a period of three (3) years after the City Council approves the initial revisions at an agreed upon rate/fee. The length of time was determined to cover the first year of the new fee structure as well as two (2) years of fee updates.

PROPOSAL SUBMITTAL AND CONTENT REQUIREMENTS

The City requests that the Consultant submit a concise proposal clearly addressing all the requirements outlined in the RFP. The intent of the RFP is to encourage responses that Page A14
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clearly communicate the Proposer’s understanding of the City’s requirements and its approach to successfully provide the products and/or services on time and within budget.

SUBMITTAL AND CONTENT REQUIRED
The proposal shall not exceed 30 pages total and must include, at a minimum, the following information:

1. Front Cover

2. Cover Letter (1 page): Signed by a company officer authorized to bind the company in agreements.

3. Table of Contents

4. Project Understanding (up to 2 pages): Provide a summary of the consultant’s understanding of the project as a whole and the unique capabilities to perform the services required. The summary shall establish that the Consultant understands the City’s objectives and work requirements and the Consultant’s ability to satisfy those objectives.

5. Scope of Work and Work Plan (up to 11 pages): Provide a detailed Scope of Work Statement describing all the services to fulfill the project scope. Explain what specific steps are to be taken, methodologies to be employed, and what tools are to be used, how fees are to be developed, and what quality control measures will be taken. The approach should include examples of what report components may look like.

Proposals shall describe the Consultant’s approach to completing the required work timely and on schedule. It should also include a detailed schedule that specifically addresses each task, as applicable, including a breakdown of phases, and a timeframe of how long each phase will take to complete. Include how often the project team expects to meet with City personnel and the development community as well as describe for what purposes; how progress relative to the schedule will be tracked and communicated; and how project costs will be tracked and invoiced.

The Consultant may also include technical or procedural innovations, or specific new concepts that have been used successfully on development fees and which may benefit the City with better fee implementation.

Describe the proposed cost control and budgeting methodology for this project.

Describe critical issues associated with the scope of work and how you will address these. Provide information regarding your firm’s financial management capabilities, including the accounting proposed for the Project.

6. Schedule of Work (up to 2 pages): Provide a detailed schedule for all phases of the project and the proposing Consultant’s services including time for reviews and Page A15
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approvals. The schedule shall be drafted to follow the Draft Project Delivery Schedule shown in Exhibit A, however, expedited schedules are preferred with justification for timeline feasibility.

Anticipate all reviews for the City take approximately 15 days to complete and return to the Consultant.

7. Cost Proposal (up to 2 pages): The proposal shall include cost and rate information. A cost proposal shall be submitted with the initial written proposal.

Cost will be evaluated based on its reasonableness and overall value in the context of the submitted proposal.

The Consultant shall provide a separate cost breakdown for Phase 1 and Phase

2. The optional tasks in Phase 2 shall be priced as an optional add-on, subject to City review and approval following the completion of Phase 1. The City will not be obligated to proceed with the optional tasks of Phase 2 of this project.

8. Experience with Similar Projects (up to 4 pages): The consultant’s experience and history in performing this type of work for other public agencies and master planned communities, including the consultant’s ability to provide prioritized project recommendations and scheduling based on an efficient timeline. Include references of persons, firms, or agencies that the City may contact to verify the experience of the Consultant. Please do not include projects that are older than 5 years.

9. Staff Resumes, Key Project Personnel (up to 6 pages): For the members of the Consultant’s proposed project team (including subconsultants). Provide detailed resumes for the top project team members. Also, include the amount of time each team member will be working on the proposed project.

10. Conflict of Interest Statement (1 page): The proposing Consultant shall disclose any financial, business or other relationship with the City that may have an impact upon the outcome of the contract or the construction project. The Consultant shall also list current clients who may have a financial interest in the outcome of this contract. The proposing Consultant shall disclose any financial interest or relationship with any company that might directly benefit from the outcome of the development fee program. Refer to Section C below for additional Conflict of Interest Requirements.

11. References (up to 2 pages): The Consultant should provide a minimum of three (3) references. Do not provide references older than 5 years. Please note that a representative from the City will be contacting references of the chosen consultant.

12. Acknowledgement of Agreement (1 page)

13. Back Cover

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Notes:
- Please note that the following will not be counted towards the page limits: front cover, table of contents, dividers, and back cover.
- Double sided pages will count as two pages.
- Proposals shall be numbered consecutively.
- Use a minimum 11-point font size (e.g., Arial, Calibri, or Times New Roman) for all narrative content.
- Any proposal failing to include the required information described above will be considered incomplete and disqualified.
- Any proposal received after the deadline will not be considered.

CLARIFICATIONS OF REFERENCE MATERIAL CONFLICTS
In case of conflict, ambiguities, discrepancies, errors or omissions among the reference materials obtained by the Consultant from other agencies, the Consultant shall submit the matter to City of Clovis for clarification. Any work affected by such conflicts, ambiguities, discrepancies, errors or omissions which is performed by the Consultant before clarification by City of Clovis shall be at the Consultant's risk. Such conflicts, ambiguities, discrepancies, errors or omissions among the references shall not give rise to a claim by the Consultant for extra work unless the Consultant can demonstrate that it has incurred additional expenses as a result thereof.

CONSULTANT SELECTION PROCEDURES

City staff will assemble a Selection Committee and will review and evaluate all proposals received in accordance with the criteria identified below.

The top consultant(s) with the highest scores after the City has evaluated the written criteria will then proceed to an interview with the City Project Manager and other City staff. It is the City’s preference that these interviews be held in person.

The selection process will include the following evaluation factors:

1. Proposal Thoroughness and Understanding: The Consultant has demonstrated a clear and complete understanding of the project requirements, goals, and constraints.

Proposal shows creativity and innovation in the consultant’s approach to the Project.

2. Qualifications, Staff Expertise and Overall Experience: Qualifications of the firm, Project Manager, and sub-consultant have been demonstrated through similar projects and experience. Quality of staff clearly demonstrates technical ability to complete the project requirements.

3. Project Time Schedule: The Consultant has prepared a clear and comprehensive schedule that properly reflects the scope and objectives of the project.

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4. Efficiency and Clarity: The Consultant proposes innovative, practical, and value-added methodologies, tools, or communication strategies that enhance the effectiveness, transparency, and usability of the DIF program. This may include features such as interactive fee calculators, visual tools for stakeholder engagement, simplified reporting formats, phasing strategies, or other creative approaches that improve stakeholder understanding and project implementation.

5. Cost: Cost will be evaluated based on its reasonableness and overall value in the context of the submitted proposal.

6. References: References provide strong support and history of having worked with the consultant.

The evaluation worksheet will be as represented in the table below:

WRITTEN EVALUATION CRITERIA MAXIMUM POINTS
Proposal Thoroughness and Understanding 35
Qualifications, Staff Expertise and Overall Experience 25 Project Time Schedule 15
Efficiency and Clarity 10
Cost 10
References 5
TOTAL 100

DISCLAIMER
The City reserves the right to amend, withdraw and cancel this RFP. The City reserves the right to reject all responses to this request at any time prior to contract execution. The City reserves the right to request or obtain additional information about any and all proposals, and/or amend the scope of work.

APPENDICES
A. Draft Project Delivery Schedule
B. Insurance Requirements
C. Sample Consultant Agreement Template
D. Current Nexus Studies Book

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EXHIBIT B

CONSULTANT PROPOSAL

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City of Clovis, CA
Review and Update of
Development Impact Fee Program
Proposal for
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City of Clovis, CA

1. Front Cover
Title Page
Request for Review and Updates to the City of Clovis
Development Impact Fee Program

66 Franklin Street, Suite 300
Oakland, CA 94607
Tel: (800) 755-6864 | Fax: (951) 587-3510

Contact Person:

James Edison
Managing Principal
Email: [email protected] | Tel #: (800) 755-6468

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T 800.755.6864 | 66 Franklin Street, Suite 300, Oakland, California 94607 | www.willdan.com 1

2. Cover Letter
September 23, 2025
Mr. Sean Smith
Deputy City Engineer
City of Clovis
1033 Fifth Street
Clovis, CA 93612
Re: Proposal to Conduct a Development Impact Fee Review and Update, Including Nexus Studies, for the City of Clovis
Dear Mr. Smith:

Willdan Financial Services (“Willdan”) is pleased to present this proposal to the City of Clovis (“City”) to conduct a comprehensive Development Impact Fee Review and Update, including the preparation of Nexus Studies. Willdan’s project approach ensures the preparation of a fee program that is transparent, technically sound, and defensible. With unmatched impact fee experience, Willdan is particularly well positioned to serve the City and support its long -term infrastructure and growth objectives. Outlined below are the advantages and benefits that Willdan will provide for the City.

Unmatched experience implementing and defending fee programs - Willdan has assisted more than 100 California agencies with the development and update of all major fee types. Each engagement has required defensible documentation and coordination of fee program changes across agency departments and with the development community. Our team has experience negotiating fee structures with stakeholders and defending them in public meetings, ensuring programs are both equitable and durable.

Compliance with State law and evolving requirements - In addition to preparing the technical analyses, Willdan advises clients on the advantages and disadvantages of different fee schedule structures (e.g., citywide versus zoned, broader versus more detailed land use categories). We ensure programs comply with the Mitigation Fee Act (Gov. Code Section 66000 et seq.) and remain defensible and transparent. Our staff is also current on requirements introduced by AB 602 (2022), which establishes additional standards for nexus studies and adoption processes.

Innovative Methodologies - Drawing on national experience, Willdan provides unique insights to address a variety of challenges. Our ability to present clear options and evaluate trade-offs ensures that studies are balanced and pragmatic.

Where appropriate, we support stakeholder eng agement through structured meetings that foster understanding of fee justification and the role of impact fees in funding community infrastructure.

Successful project completion - Willdan has successfully completed many development impact fee studies, including recent work in the Counties of Madera, San Benito, San Joaquin, Stanislaus, Tulare, Tuolumne, and Yolo, as well as the Cities of Carpinteria, Garden Grove, Hollister, Murrieta, Oroville, Rialto, and Santa Clara. Our track record demonstrates our ability to deliver high-quality, defensible programs that withstand public and technical scrutiny.

Willdan Financial Services is proud to submit this proposal to the City of Clovis. Mr. James Edison will serve as the prime contact if you wish to discuss any aspect of this submittal , please contact him at [email protected] or via phone at (510) 912-4687.

As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement.

Sincerely,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
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3. Table of Contents

1. Front Cover.................................................................................................................................................................. 1 Title Page ................................................................................................................................................................. 1

2. Cover Letter ................................................................................................................................................................ 1

4. Project Understanding .......................................................................................................................................... 1 Project Approach .................................................................................................................................................... 1 Project Objectives ................................................................................................................................................... 1

5. Scope of Work and Work Plan .......................................................................................................................... 2 Project Methodology ............................................................................................................................................... 2 Work Plan ................................................................................................................................................................. 5 Project Disclaimer ................................................................................................................................................... 8 Quality Control Procedures ................................................................................................................................... 9

6. Schedule of Work ................................................................................................................................................... 11

7. Cost Proposal ................................................................................................................ Under Separate Cover Hourly Rates ............................................................................................................................................................ 2

8. Experience with Similar Projects ................................................................................................................... 12 Firm Profile ............................................................................................................................................................ 12 Experience and Expertise .................................................................................................................................... 13 Similar Studies ...................................................................................................................................................... 14

9. Staff Resumes, Key Project Personnel ........................................................................................................ 16 Proposed Project Team ........................................................................................................................................ 16 Resumes ................................................................................................................................................................ 16 James Edison, JD, MPP, MA .................................................................................................................................. 17 Carlos Villarreal, MPP ............................................................................................................................................. 19

10. Conflict of Interest Statement ......................................................................................................................... 21

11. References ................................................................................................................................................................ 22

12. Acknowledgement of Agreement ............................................................................................................... 24 Page B5
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4. Project Understanding
Project Approach
As part of the larger financial planning effort for the City’s future development, the City of Clovis seeks to understand the financial impacts that foreseeable growth will have on public services and infrastructure. This review of the Development Impact Fee program will help ensure that the City’s fee structure remains legally compliant, technically defensible, and aligned with its long -range planning goals. A well -structured program is central to maintaining the principle that new development contributes its fair share toward the cost of public facilities and services needed to support growth.

The City has identified the need to update its impact fees so they reflect current capital costs, growth projections, and facility standards. The study will be prepared consistent with the Mitigation Fee Act (Government Code 66000 et seq.), including new r equirements established by AB 602, which place additional emphasis on nexus documentation and transparency. In addition to ensuring compliance with State law, the updated fee program must be clear to the development community, practical for staff to administer, and transparent to the public.

The review will involve a comprehensive evaluation of the City’s current fee structure and methodologies, including careful consideration of reimbursement and credit policies, capital facility plans, and growth assumptions. It will also assess opportunities to expand or restructure fees to address unmet needs and ensure that infrastructure funding keeps pace with development. A key focus will be on major infrastructure categories such as water, sewer, transportation, parks, public safety, and general govern ment facilities, with attention to how updated costs and standards affect the calculation of maximum justified fees.

As part of this review, the study will focus on the following fee programs currently included in the City’s DIF structure:
▪ Sewer Fee ▪ Water Fee
▪ Major Street Fees ▪ Utility Undergrounding Fee
▪ Park Acquisition and Development Fee ▪ Community Sanitation Fee ▪ Fire Department Fee ▪ Police Department Fee
▪ Library Fee ▪ Administrative Charges
Project Objectives
In addition to evaluating the current set of fees, the study will help the City identify where adjustments or new funding tools may be needed to keep pace with future growth. The analysis will address the long -term relationship between development and infr astructure demand, while also considering the City’s housing obligations, capital improvement planning, and service standards. By looking at both existing conditions and projected needs, the study will provide City leaders with a clear picture of how futur e development impacts facilities and where funding gaps may occur. This broader perspective will allow Clovis to make informed policy choices that balance fiscal sustainability, legal compliance, and fairness to the development community.

To accomplish this objective, this study will:
▪ Develop a technically defensible fee justification, based on the reasonable relationship and deferential review standards;
▪ Review facility standards, capital facilities plans and costs, and development and growth assumptions (including the recent Infrastructure Task Force report and facilities master plans); ▪ Identify potential additional fees to address unmet future capital facilities needs ; ▪ Provide a schedule of maximum-justified fees by land use category; and ▪ Provide comprehensive documentation of assumptions, methodologies, and results, including findings required by the Mitigation Fee Act.

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5. Scope of Work and Work Plan
Project Methodology
Public Facilities Financing in California
The changing fiscal landscape in California during the past 40 years has steadily undercut the financial capacity of local governments to fund infrastructure. Four dominant trends stand out:

1. The passage of a st ring of tax limitation measures starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996;

2. Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses;

3. Steep reductions in Federal and State assistance; and

4. Permanent shifting by the State of local tax resources to the State General Fund to offset deficit spending brought on by recessions.

Faced with these trends, many cities and counties have had to adopt a policy of "growth pays its own way." This policy shifts the burden of funding infrastructure expansion from existing rate and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees, also known as public facilities fees. Assessments and special taxes require approval of property owners or registered voters and are appropriate when the funded facilities are directly related to the developing property.

Development impact fees, on the other hand, are an appropriate funding source for facilities that benefit development jurisdiction-wide. Development fees need only a majority vote of the legislative body for adoption.

Approach and Methodology
Willdan’s methodology for calculating public facilities fees is both simple and flexible. Simplicity is important so that the development community and the public can easily understand the justification for the fee program. At the same time, we use our expertise to reasonably ensure that the program is technically defensible.

Flexibility is important, so we can tailor our approach to the available data, and the agency’s policy objectives. Our understanding of the technical standards established by statutes and case law suggests that a range of approaches are technically defensible. Consequently , we can address policy objectives related to the fee program , such as economic development and affordable housing. Flexibil ity also enables us to avoid excessive engineering costs associated with detailed facility planning. We calculate the maximum justifiable impact fee and provide flexibility for the agency to adopt fees up to that amount.

Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The four steps followed in an impact fee study include:
▪ Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities; ▪ Identify facility standards: Determine the facility standards used to plan for new and expanded facilities; ▪ Determine facilities required to serve new development and their costs: Estimate the total amount and cost of planned facilities, and identify the share required to accommodate new development; and ▪ Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the public facilities fee schedule.

We discuss key aspects of our approach to each of these steps in the subsections that follow.

Growth Projections
In most cases, we recommend use of long -range market-based projections of new development. By “long -range” we suggest 20 to 30 years to: capture the total demand often associated with major public facility investments; and support analysis of debt financing, if needed. In contrast to build out projections, market -based projections provide a more realistic estimate of development across all land uses. Build out projections typically overestimate commercial and industrial development because of the oversupply of these land uses relative to residential development.

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Facility Standards
The key public policy issue in development impact fee studies is the identification of facility standards (second bullet above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development.

Our approach recognizes three separate components of facility standards:

1. Demand standards determine the amount of facilities required to accommodate growth. Examples include park acres per thousand residents, square feet of library space per capita, or gallons of water per day. Demand standards may also reflect a level of service such as the vehicles-to-capacity (V/C) ratio used in traffic planning;

2. Design standards determine how a facility should be designed to meet expected demand, for example park improvement requirements and technology infrastructure for office space. Design standards are typically not explicitly evaluated as part of an impact fee analysis but ca n have a significant impact on the cost of facilities.

Our approach incorporates current facility design standards into the fee program to reflect the increasing construction cost of public facilities; and

3. Cost standards are an alternate method for determining the amount of facilities required to accommodate growth based on facility costs per unit of demand. Cost standards are useful when demand standards were not explicitly developed for the facility planning process. Cost standards also enable different types of facilities to be analyzed based on a single measure (cost or value), useful when disparate facilities are funded by a single fee program.

Examples include facility costs per capita, per vehicle trip, or cost per gallon of water per day.

Identifying New Development Facility Needs and Costs
We can take several different approaches to identify facility needs and costs to serve new development. Typically, this is a two-step process: 1) identify total facility needs; and 2) allocate to new development its fair share of those needs.

Total facility needs are often identified through a master facility planning process that typically takes place concurrent with or prior to conducting the fee study. Engineered facility plans are particularly important in the areas of traffic, water, sewer, and storm drain due to the specialized technical analysis required to identify facility needs.

There are three common methods for determining new development’s fair shar e of planned facilities costs: 1) the existing inventory method; 2) the planned facilities method; and 3) the system plan method. Often the method selected depends on the degree to which the community has engaged in comprehensive facility master planning to identify facility needs.

The formula used by each approach and the advantages and disadvantages of each method is summarized as follows:

Existing Inventory Method
The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows:

Current Value of Existing Facilities = $/unit of demand Existing Development Demand Under this method new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Only the initial facilities to be funded with fees are identified in the fee study. Future facilities to serve growth are identified through an annual Capital Improvement Plan (CIP) and budget process, possibly after completion of a new facility master plan.

Planned Facilities Method
The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows:

Cost of Planned Facilities = $/unit of demand New Development Demand This method is appropriate when specific planned facilities can be identified that only benefit new development.

Examples include street improvements to avoid deficient levels of service or a sewer trunk line extension to a previously undeveloped area. Thi s method is appropriate when planned facilities would not serve existing development. Under this method new development funds the expansion of facilities at the standards used for the master facility plan.

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System Plan Method
This method calculates the fee based on the ratio of the value of existing facilities plus the cost of planned facilities divided by demand from existing plus new development:

Value of Existing Facilities + Cost of Planned Facilities = $/unit of demand Existing + New Development Demand This method is useful when planned facilities need to be analyzed as part of a system that benefits both existing and new development. It is difficult, for example, to allocate a new fire station solely to new development when that station will operate as part of an integrated system of fire stations that work together to achieve the desired level of service.

Police substations, civic centers, and regional parks are examples of similar facilities.

The system plan method ensures that new development does not pay for existing deficiencies. Often, facility standards based on policies such as those found in General Plans are higher than existing facility standards. This method enables the calculation of the existing deficiency required to bring existing development up to the policy -based standard. The local agency must secure non -fee funding for that portion of planned facilities, required to correct the deficiency, to ensure that new development receives the level of service funded by the impact fee.

Calculating the Fee Schedule
At its simplest, the fee schedule uses the cost per unit of demand discussed in the last subsection to generate the fee schedule. This unit cost is multiplied by the demand associated with a new development project to calculate the fee for that project. Th e fee schedule uses different demand measures by land use category to provide a reasonable relationship between the type of development and the amount of the fee. We are familiar with a wide range of methods for identifying appropriate land use categories and demand measures depending on the study.

Related Approach Issues
Funding and Financing Strategies
In our experience, one of the most common problems with impact fee programs and with many CIPs is that the program or plan is not financially constrained to anticipated revenues. The result is a “wish list” of projects that generate community expectations that often cannot be fulfilled. Our approach is to integrate the impact fee program into the local agency’s existing CIPs while encouraging those plans to be financially constrained to available resources. We clearly state the cost of correcting existing deficiencies, if any, to document the relationship between the fee program and the need for additional non-fee funding.

We can also address one of the most significant drawbacks of an impact fee program – the inability to support conventional public debt financing, so projects can be built before all fee revenues have been received. In collaboration with financial advisors and underwriters, we have developed specific underwriting criteria so that fees can be used to pay back borrowing if another source of credit exists. Typically, this approach involves the use of Certificates of Participation or revenue bonds that are calibrated so that they can be fully repaid using impact fee revenues.

Economic Development Concerns
The development community often is concerned that fees and other exactions will become too high for development to be financially feasible under current market conditions. Local agencies have several strategies to address this concern, including:
▪ Conducting an analysis of the total burden placed on development, by exactions, to see if feasibility may be compromised by the proposed fees;
▪ Gathering similar data on the total fee burden imposed by neighboring or competing jurisdictions; ▪ Developing a plan for phasing in the fees over several years to enable the real estate market to adjust; ▪ Providing options for developers to finance impact fees through assessment s and other types of financing districts; and
▪ Imposing less than the maximum justified fee.

If less than the maximum justified fee is imposed, we will work with staff to identify alternative revenues sources for the CIP. The CIP should remain financially feasible to maintain realistic expectations among developers, policymakers, and the public.

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Stakeholder Participation
Stakeholder participation throughout the study supports a successful adoption process. Our approach is to create consensus first, around the need for facilities based on agreed upon facility standards. Second, we seek consensus around a feasible funding strategy for these needs, leading to an appropriate role for impact fees.

Gaining consensus among various groups requires a balanced discussion of both economic development and community service objectives. Often, our approach includes formation of an advisory committee to promote outreach to and input from the development commu nity and other stakeholders. We have extensive experience facilitating meetings to explain the program and gain input.

Program Implementation
Fee programs require a certain level of administrative support for successful implementation. Our final report will include recommendations for appropriate procedures, such as:
▪ Regularly updating development forecasts;
▪ Regularly updating fees for capital project cost inflation; ▪ Regularly updating capital facility needs based on changing demands; ▪ Developing procedures for developer credits and reimbursements; and ▪ Including an administrative charge in the fee program.

Work Plan
Willdan will work with the City to update its impact fees consistent with the Mitigation Fee Act and other relevant laws.

We want to ensure that our scope of services is responsive to the City’s needs and specific local circumstances.

We will work with the City to revise our proposed scope based on input prior to approval of a contract, and as needed during the course of the study.

Phase One: Evaluation of Current Fee Program
Phase One will focus on evaluating the City’s current Development Impact Fee (DIF) Program to establish a clear understanding of its structure, compliance with the Mitigation Fee Act and recent court cases and legislat ion, and consistency with City policies and best practices. Willdan will review all existing fees, reimbursement and credit programs, and potential alternative financing methods. This phase also includes the preparation of draft findings, demonstration of mapping and fee estimator tools, and final deliverables to inform Phase Two. :

Task 1.1: Overall Project Management Support
Objective: Ensure effective management of scope, cost, schedule, and communication.

Description: Willdan will provide monthly progress reports, invoices, and correspondence. Our team will conduct Project Development Team (PDT) meetings, prepare agendas and minutes, and coordinate as needed with City staff.

Task 1.2: Evaluation of Current DIF Program
Objective: Review the City’s current DIF program for legal compliance, policy alignment, and consistency with regional best practice.

Description: Willdan will conduct a comprehensive evaluation of all existing fees (sewer, water, major streets, utility undergrounding, parks, sanitation, fire, police, library, and administrative charges). This will include review of alignment with current legal requirements , consistency with the City’s General Plan and Capital Improvement Program (CIP), and comparison to best practices in other jurisdictions. The analysis will highlight areas where fees may require updates or restructuring and identify options for phased implementation.

Task 1.3: Evaluate Master Plan & Capital Improvement Plan Objective: Assess the City’s current reimbursement and in-lieu fee policies.

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Description: Willdan will review the City’s current reimbursement and credit policies and evaluate whether they adequately address developer contributions and reimbursements while balancing City requirements of capital planning and administrability.

Peer agency policies will be examined to provide context and identify potential improvements.

Recommendations will focus on aligning policies with City priorities and enhancing clarity and predictability for stakeholders.

Task 1.4: Review Alternative DIF Financing Models
Objective: Identify and assess alternative financing tools to supplement DIF revenues .

Description: Willdan will evaluate financing methods such as debt mechanisms, alternative collection approaches, or phased payment options. Each alternative will be assessed in terms of legal defensibility, administrative feasibility, and potential impacts on project d elivery. The goal is to provide the City with clear options to strengthen its financial strategy for capital facilities.

Task 1.5: Summary, Presentation of Findings & Draft Tools Objective: Communicate Phase One results and provide draft tools for staff and stakeholders .

Description: Willdan will prepare a summary of key findings and recommendations for City staff, stakeholders, and the City Council. Draft versions of an interactive mapping tool and a public -facing self -service fee estimator will be developed and demonstrated. These to ols will allow City staff and the development community to visualize fee boundaries and estimate project-specific fees with greater transparency.

Deliverables: Draft Presentation materials, Draft mapping tool, Draft fee estimator tool.

Task 1.6: Final Review of Deliverables
Objective: Deliver complete and finalized Phase One materials in usable formats.

Description: Incorporating City feedback, Willdan will prepare final reports, presentation materials, and tools. Final versions will be submitted in Word, Excel, PDF, and GIS-compatible formats for City use.

Phase Two: Revisions to DIF Program, Nexus Studies, and Associated Items Building on the findings of Phase One, Phase Two will update and refine the City’s DIF Program. Willdan will prepare a detailed reanalysis of the water and sewer programs, update or restructure other fee programs, and evaluate potential new fees. Legally defensible Nexus Studies will be prepared for all revised or new programs, and City staff will receive training to maintain and apply the methodologies. Draft and final deliverables, including updated tools and presentations, will be prepared for stakeholders and the City Council.

Optional ongoing support is available for up to three years after adoption .

Task 2.1: Water and Sewer Fee Update
Objective: Reanalyze the water and sewer DIFs to ensure accuracy, compliance, and defensibility .

Description: Willdan will conduct a detailed review of the City’s sewer and water impact fees, which represent a significant portion of development obligations and have been subject to stakeholder scrutiny. This task will include updated fee calculations, evaluation of potential restructuring, and assessment of impacts on related DIF programs. Recommendations will provide the City with options for strengthening the structure and equity of these critical fee programs.

Deliverables: Willdan will deliver the following:
▪ Updated fee calculations;
▪ Report on fee impacts and restructuring options;
Task 2.2: Other Fee Update & Additional Fees
Objective: Update or restructure other existing fees and evaluate potential new fees.

Description: Based on the results of Phase One, Willdan will perform fee -by-fee evaluations for additional DIF categories. Each fee will be analyzed individually to ensure transparency and defensibility. This task may also include evaluation of new fee programs, such a s incorporating planned major transportation infrastructure improvements that are regionally significant.

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Deliverables: (1) Evaluation reports for each restructured fee and (2) Separate scope/report for any new fee programs.

Task 2.3: Nexus Study Update
Objective: Provide complete, legally defensible Nexus Studies for all revised or new fees .

Description: Willdan will prepare updated Nexus Studies that document methodology, assumptions, findings, and justification for each revised or new fee. The studies will establish the legal connection between new development and the need for public facilities, ensuring compliance with the Mitigation Fee Act.

Deliverables: (1) Nexus Studies for each revised or new fee Task 2.4: Determine Facilities Needs and Costs
Objective: Equip City staff with the knowledge to apply and maintain updated fee programs .

Description: Willdan will conduct training sessions to review methodologies, calculations, and assumptions for updated fee programs. Training will focus on water and sewer fees, with optional sessions for other restructured fees. The goal is to ensure City staff can in dependently apply the program in future updates.

Deliverables: (1) Training sessions and supporting materials Task 2.5: Summary of Information & Presentation of Findings Objective: Present Phase Two findings to stakeholders and Council for review and adoption .

Description: Willdan will prepare draft and final reports, updated tools, and presentation materials for staff, stakeholders, and the City Council. These materials will summarize assumptions, methodologies, and results, and support public engagement and Council decision-making.

Deliverables: (1) Draft and final presentation materials and (2) Updated mapping and estimator tools Task 2.6: Final Review of Deliverables
Objective: Deliver all final Phase Two reports, studies, and tools to the City.

Description: Willdan will finalize and submit all Phase Two materials, ensuring consistency across technical reports, Nexus Studies, and fee documentation. Final products will be submitted in Word, Excel, PDF, and GIS- compatible formats
Deliverables: Willdan will deliver the following items:
▪ Final Fee Program layout
▪ Final Nexus Studies
▪ Final presentation materials
Task 2.7: Ongoing Support (Optional)
Objective: Provide continued support for program implementation and updates.

Description: Willdan will remain available for up to three years following adoption of the revised program to provide technical support. This may include assistance with fee implementation, data verification, or updates as new projects and priorities arise..

Deliverables
The documents and deliverables produced, including those enumerated in Phases One and Two above, shall be provided in draft form for the City’s review.

Willdan anticipates two iterative rounds of comments and adjustments from the City on any document before City determines that it is final.

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Staff Support
To complete our tasks , we will need the cooperation of City of Clovis staff. We suggest that the City assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City’s project manager will:
▪ Coordinate responses to requests for information;
▪ Coordinate review of work products; and
▪ Help resolve policy issues.

Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such the City of Clovis represents, acknowledges, and agrees that Willdan is not acting as a “municipal advisor” (as defined by the SEC), to the City, in any capacity as it relates to the project proposed in this Fiscal Analysis proposal. (i) The City uses, or may use, the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, te rms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash- flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City , (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City , in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and
(v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that t he City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services. .

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Quality Control Procedures
Project Management Approach
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisi ons and/or the choice of critical assumptions used in constructing the analysis and model.

Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate.

Through the process of providing regular updates and conducting status conference calls, potential issues will be highlighted, discussed, and resolved. Any deviances from the project timeline will be identified and plans will be developed for course correc tions. If necessary, changes in approach or strategy will be discussed with City staff, to meet the needs of the City of Clovis. In doing this, we will ensure the project stays on track and evolves, based upon current thinking and outside dynamics.

Project Management

Define the
Project
Plan
the Project
Manage
the Project
Review the
Project
Communicate
the Project
▪ Identify the project
scope, set
objectives, list
potential
constraints,
document
assumptions.
▪ Define a course of
action and develop
an effective
communication
plan.
▪ Provide a forum for
applying the team’s
collective expertise
to solving difficult
analytical issues
that arise in
complex projects.
▪ Collaborate with
the project team
and client staff and
agree upon timeline
to meet the
estimated project
timeline.
▪ Assign workload
functions to
appropriately
qualified staff to
ensure milestones
are met, on time.
▪ Pre-schedule
quality control
meetings with
project team to
maintain the
progressive motion
of the project.
▪ Manage the
execution of the
project.
▪ Direct existing and
upcoming project
tasks.
▪ Control and
monitor work in
progress.
▪ Provide feedback
to client and
project team.
▪ Identify and
resolve deviances
from project
timeline.

▪ Review all work
product and
deliverables.
▪ Utilize structured
quality assurance
process involving
up to three levels
of review at the
peer level, project
manager level.
▪ Procure executive
officer level review.

▪ Communicate with
the client regarding
work status and
progress.
▪ Ensure client is in
receipt of regular
status updates.
▪ Schedule regular
conference calls to
touch base.
▪ Inform client of
roadblocks, work
outside of projected
scope.

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Quality Assurance / Quality Control Process
Our quality control program is incorporated as a required element of Willdan’s day -to-day activities. There are three levels of reviews incorporated for our deliverables:
1) Peer review;
2) Project Manager review; and
3) Final quality assurance
manager review.

Peer reviews involve one analyst
reviewing the work of another,
while project manager reviews
are conducted prior to delivery to
the quality assurance manager.

The quality assurance manager
then performs a final review. This
assures that our final product has
been thoroughly evaluated for
potential errors; thus, providing
quality client deliverables, and
high levels of integrity and outcomes.

The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established.

Quality Assurance Goals
Goal Lead Task
Quality Assurance /
Control Process James Edison
▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed;
▪ Emphasize quality in every phase of work;
▪ Ensure efficient use of resources;
▪ Establish a consistent and uniform approach to the services performed; and
▪ Implement appropriate quality control measures for each work task of the project.

Quality Control Plan James Edison;
Carlos Villareal
▪ Contract deliverables;
▪ Specific quality control procedures;
▪ Special quality control emphasis;
▪ Budget and manpower requirements;
▪ Overall project schedule and budget; and
▪ Project documentation requirements.

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6. Schedule of Work
Work is anticipated to begin in January 2026, with Phase One and Phase Two progressing sequentially, and the final in-person presentation of the completed study to the City Council scheduled for December 2026 . The proposed schedule can only be met with the c looperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule.

Development Impact Fees Study

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8. Experience with Similar Projects
Firm Profile
Willdan Financial Services is an operating division
within Willdan Group, Inc. (WGI), which was founded in
1964 as an engineering firm working with local
governments. Today, WGI is a publicly traded company
(WLDN). WGI, through its divisions, provides
professional technical and consulting services that
ensure the quality, value and security of our nation’s
infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since
its inception —ensuring the success of its clients and enhancing its surrounding communities.

A financially stable company, Willdan has
approximately 1,770 employees working in more than a
dozen states across the U.S. Our employees include a
number of nationally recognized Subject Matter Experts
for all areas related to the broadest definition of
connected communities —including a team who will
be committed to contribut ing their expertise
throughout the duration of the City of Clovis’s
Development Impact Fee Study engagement.

Willdan has solved economic, engineering and energy
challenges for local communities and delivered
industry-leading solutions that have transformed
government and commerce. Today, we are leading our
clients into a future accelerated by a change in resources, infrastructure, technology, regulations, and industry trends.

Willdan Financial Services
Established on June 24, 1988, Willdan Financial Services, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.

Our staff of over 80 professionals support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise.

Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Services
▪ User fee studies;
▪ Cost allocation studies;
▪ Utility rate and cost of service studies;
▪ Real estate economic analysis;
▪ Feasibility studies;
▪ Municipal Advisory;
▪ Arbitrage and Continuing Disclosure Services;
▪ Economic development strategic plans;
▪ Debt issuance support
▪ Development impact fee establishment and analysis;
▪ District Administration Services;
▪ Property tax audits;
▪ Tax increment finance district formation and
amendment;
▪ Housing development and implementation strategies;
and
▪ Long-term financial plans and cash flow modeling.

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Experience and Expertise
Willdan has been preparing impact fee nexus studies
since the passage of the Mitigation Fee Act . Our
commitment to public agencies and public solutions
has helped us develop the broad finance expertise that
will be utilized to support the City’s Development
Impact Fee Study. Willdan has worked on virtually
every aspect of municipal finance, including fiscal and economic impact studies related to development and
re-organization, the financing of infrastructure and
services through special district or supplemental
taxes, and even working under contract as a
department head of an entire municipality. This
experience has provided Willdan team members with
deep insight into the sources of municipal revenue and
the costs of services.

Managing Principal James A. Edison and his team
have worked with public agencies on many community
development projects, including the full range of
analysis related to feasibility, economic and fiscal
impacts, infrastructure finance, and negotiations with
private developers. Willdan is thoroughly familiar with both the Act and with the technical and policy issues
surrounding impact fees.

Unique Qualifications
Willdan is uniquely qualified to assist the City of Clovis with the proposed Development Impact Fee Study.

The following are specific advantages that we will provide for the proposed engagement.

Project Dedication
Willdan has assembled a project team of subject matter experts within the Financial Consulting Services group, to conduct the City of Clovis Development Impact Fee Study engagement. This team has coordinated or participated in numerous public stakeholder and staff workshops regarding fees and cost of service -based charges.

Community Investment
Much of our success in developing impactful programs and studies is due to our experiences in meeting with citizen / stakeholder groups and elected officials. Our ability to explain technical information in a concise, understandable manner is a fundamental reason for our high degree of success. Willdan staff take the time to include and inform the Community.

Proven Professionals
The Team’s quality is often as important as the consulting firm’s reputation. Willdan is known for its personal, customized service. Our team will work with the City’s professional staff to provide the long‐term service, that is our prime goal.

Project Availability
Willdan’s Financial Consulting Services group is composed of a team of over 30 senior-level professional consultants.

While each member of the project team currently has work in progress with other clients, the workload is at a manageable level with sufficient capacity to meet the needs of the City specific to the schedule and budget for this engagement.

The team presented within this proposal has
worked collectively on numerous projects, such
as the one requested by the City of Clovis; an
established work practice between the team
members has been forged, this proven long-
standing system has benefited our clients.

In the past five years Willdan has conducted over 125
Impact Fee Studies
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Similar Studies
The following table lists Willdan’s development impact fee clientele that have utilized our services.

Willdan Financial Services
Development Impact Fee Experience
Partial Client List
City of Alameda, CA City of Pacifica, CA
City of Antioch, CA City of Patterson, CA
City of Arcadia, CA City of Parkland, FL
City of Arroyo Grande, CA City of Pismo Beach, CA
City of Artesia, CA City of Pittsburg, CA
City of Atwater, CA City of Pleasant Hill, CA
City of Azusa, CA City of Pomona, CA
City of Bakersfield, CA City of Rancho Mirage, CA
City of Barstow, CA City of Redwood City, CA
City of Bell, CA City of Rialto, CA
City of Bell Gardens, CA City of Richmond, CA
City of Bellflower, CA City of Rio Rancho, NM
City of Brea, CA City of Riverbank, CA
City of Calexico, CA City of Rolling Hills Estates, CA
City of Calimesa, CA City of Rosemead, CA
City of Carpinteria, CA City of San Carlos, CA
City of Chino Hills, CA City of San Fernando, CA
City of Claremont, CA City of San Gabriel, CA
City of Clovis, CA City of San Jacinto, CA
City of Coachella, CA City of San Marcos, CA
City of Commerce, CA City of San Ramon, CA
City of Compton, CA City of Santa Clara, CA
City of Corona, CA City of Sebastopol, CA
City of Covina, CA City of Selma, CA
City of Cudahy, CA City of Sierra Madre, CA
City of Dixon, CA City of Soledad, CA
City of Dublin, CA City of South Gate, CA
City of Eastvale, CA City of South Pasadena, CA
City of East Palo Alto, CA City of South San Francisco, CA City of El Segundo, CA City of St. Helena, CA
City of Emeryville, CA City of Tehachapi, CA
City of Fillmore, CA City of Temple City, CA
City of Fontana, CA City of Thousand Oaks, CA
City of Fountain Valley, CA City of Tracy, CA
City of Fremont, CA City of Upland, CA
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Willdan Financial Services
Development Impact Fee Experience
Partial Client List
City of Garden Grove, CA City of Visalia, CA
City of Gilroy, CA City of Wasco, CA
City of Gonzales, CA City of Yucaipa, CA
City of Goose Creek, SC Coachella Valley Association of Governments, CA City of Guadalupe, CA Contra Costa Fire Protection District, CA City of Greenfield, CA County of Clay, FL
City of Grover Beach, CA County of Kern, CA
City of Hawthorne, CA County of Kings, CA
City of Healdsburg, CA County of Los Angeles, CA
City of Hemet, CA County of Madera, CA
City of Hercules, CA County of Merced, CA
City of Hollister, CA County of Placer, CA
City of Huntington Beach, CA County of Riverside, CA
City of Huntington Park, CA County of Sacramento, CA
City of Indian Wells, CA County of San Benito, CA
City of Irwindale, CA County of San Diego, CA
City of Kingsburg, CA County of San Joaquin, CA
City of La Mesa, CA County of San Luis Obispo, CA
City of La Verne, CA County of Santa Barbara, CA
City of Las Cruces, NM County of Solano, CA
City of Lake Elsinore, CA County of Sonoma, CA
City of Lake Forest, CA County of Stanislaus, CA
City of Lancaster, CA County of Tulare, CA
City of Lawndale, CA County of Yolo, CA
City of Livermore, CA East Contra Costa Fire Protection District, CA City of Long Beach, CA Kern Council of Governments, CA
City of McFarland, CA Nevada County Consolidated Fire District, CA City of Madera, CA Rodeo-Hercules Fire Protection District, CA City of Manteca, CA San Gorgonio Memorial Healthcare District, CA City of Menifee, CA Stanislaus Council of Governments, CA City of Moreno Valley, CA Tehachapi Valley Rec. & Park District, CA City of Morgan Hill, CA Town of Apple Valley, CA
City of Mountain View, CA Town of Mead, CO
City of Murrieta, CA Town of Windsor, CA
City of Newport Beach, CA Tulare County Association of Governments, CA City of Oroville, CA Village of Taos Ski Valley, NM

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9. Staff Resumes, Key Project Personnel
Proposed Project Team
Our management and supervision philosophy for the project team is very simple: s taff every position in sufficient numbers with experienced personnel to deliver a superior product and convey results to decision makers in meetings, on time and on budget. With that philosophy in mind, we have selected experienced professionals for the City’s engagement. We are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance.

City of Clovis
Project Team
Key Team Member Project Role Responsibility to the Engagement James Edison, JD, MPP
Managing Principal Principal-in-Charge
▪ Ensure client satisfaction, flow of communication, and management of the project
▪ Technical guidance
▪ Project oversight
▪ Quality assurance & control, and
▪ Meeting and presentation attendance
Carlos Villarreal, MPP
Principal Consultant
Project Manager
▪ Collect, interpret, and disseminate key data
▪ Day to day contact
▪ Production of key elements of the analysis
▪ Model development
▪ Report preparation, and
▪ Meeting and presentation attendance

Staff Continuity
Mr. Edison has been assigned to serve as the City’s principal-in-charge; he has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous fee studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.

Resumes
Resumes for Willdan’s project team are presented on the following pages.

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Education
Juris Doctorate,
University of
California, Berkeley ,
School of Law
Master of Public
Policy, Goldman
School of Public
Policy, University of
California, Berkeley
Bachelor of Arts,
magna cum laude,
Harvard University
Professional
Registrations
Member of State Bar,
California
Affiliations
Council of
Development Finance
Agencies
CFA Society of
San Francisco
Congress for the
New Urbanism
Urban Land Institute
Seaside Institute
International Economic
Development Council
27 Years’ Experience

James Edison, JD, MPP, MA
Principal-in-Charge
Mr. James Edison, Managing Principal, specializes in the nexus between public and private, with expertise in public-private partnerships, and the benefits of economic development to municipalities and state, provincial, regional, and national governments. He possesses deep expertise in land use economics, with a specialty in finance and implementation, including fiscal impact and the public and private financing of infrastructure and development projects, both in the U.S. and internationally. Mr. Edison’s public-sector experience includes local and regional economic impact studies; fiscal impact evaluations; new government formation strategies; and the creation of impact fees, assessments, and special taxes to fund infrastructure and public facilities. He has conducted numerous evaluations of the economic and fiscal impact of specific plans and consulted on a wide variety of land use planning topics related to community revitalization and the economic and fiscal impacts of development.

As a former bond attorney, Mr. Edison understands the legal underpinnings and technical requirements of public financing instruments and has advised both public and private clients on the use of individual instruments, and the interaction between those ins truments and the needs of developers and project finance.

Related Experience
City of East Palo Alto, CA – Development Impact Fee and Financial Feasibility Study:

Mr. Edison served in the role of principal -in-charge of an update to the City’s impact fee program.

The program included Water Capacity, Parks and Trails, Public Facilities, Transportation Infrastructure, and Storm Drainage impact fees. Stakeholder meeting s were held to inform the public about the project, and to solicit feedback.

City of Carpinteria, CA – Development Impact Fee Update: Mr. Edison was the project manager for the City of Carpinteria’s Development Impact Fee update study engagement. The study included updates to the following fees: highways and bridges, streets and thoroughfares, traffic control, parking, storm drain, gener al government, aquatic, park and recreation, and open space.

The City has engaged Willdan again to update their impact fees.

City of McFarland, CA – Impact Fee Study Update: Mr. Edison was the principal-in-charge and technical advisor on the update to the City’s development impact fee program. The study included the following facility fee categories; general government, law enforcement, park and recreation, fire protection, water, sewer, storm drain, and traffic.

City of Manteca, CA – Fire Impact Fee Update: Mr. Edison served in the capacity of project manager for the update of the City’s fire services impact fee program.

City of Fillmore, CA – North Fillmore Specific Plan Nexus Study: Mr. Edison is currently assisting the City with an analysis of development impact fees needed to finance public facilities necessary for the development of the North Filmore Specific Plan. Public facilities included in this analysis include water, sewer systems, recycled water, and streets.

City of Pismo Beach, CA – Development Impact Fee Update: Mr. Edison served in the role of principal-in-charge of an update to the City ’s impact fee program. The program included the following facilities: police, fire protection, park and recreation improvements, water system improvements, wastewater, traffic, and general government/administrative facilities. Prior to fee program adoption, a stakeholder meeting was held to inform the public about the project, and to solicit feedback from the development community.

City of Morgan Hill, CA – Development Impact Fee Update: Mr. Edison served as principal-in- charge of an update to the City’s existing nexus study, which included general government, fire, police, parks and recreation, library , and storm drain fee categories. The project scope included stakeholder outreach.

City of Fremont, CA – Comprehensive Impact Fee Update: Mr. Edison led the Willdan team in the successful update of the impact fee programs for the City of Fremont. The effort included an update of the City’s transportation impact fee program and capital improvement program.

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County of San Benito, CA – Comprehensive Impact Fee Study: Mr. Edison served as technical advisor to the County’s Impact Fee Study. The study included updates to the following fees: capital improvements, road equipment, fire mitigation, and park and recreation.

City of Alameda, CA – Comprehensive Impact Fee Update : Mr. Edison led the Willdan team that updated the City of Alameda’s impact fee programs, as well as created a separate impact fee program for Alameda Point, the former Alameda Naval Air Station.

City of Santa Clara, CA – Parks Fee Update : Mr. Edison served as principal -in-charge of the City’s park impact fee update. This project included a demographic analysis and estimation of the cost of acquiring and improving public park land.

Stanislaus County Council of Governments, CA – Regional Transportation Fee Update: Mr.

Edison worked on an update of the County’s transportation impact fee program. Key tasks included a revised capital improvement program and fee model, along with a public participation process that ensures buy-in from the communities of Stanislaus County and the County government itself.

County of Tulare, CA – Countywide Impact Fees: Mr. Edison served as project manager for a study that involved the creation of an impact fee program for the County. The study include d a range of facilities such as public protection, library, and parks, as well as a transportation facilities impact fee with different fees calculated for two zones in the County.

County of Riverside, CA – Comprehensive Impact Fee Update : Mr. Edison led the effort to establish a comprehensive fee program for the County, including facilities fees for fire, police, parks, criminal justice, libraries , and traffic. He prepared the technical and analytical documents necessary to calculate the fee and establish the necessary nexus to collect it, as well as presented the fees during public hearings to the County Board of Supervisors. Furthermore, Mr. Edison is currently leading an update to the County’s development impact fees for 2030.

City of Moreno Valley, CA – Comprehensive Development Impact Fee Study: Mr. Edison was the principal-in-charge for the City’s comprehensive impact update. Fee categories included arterial streets, traffic signals, interchanges, parks, recreation, fire, police, library, corporation yard, maintenance equipment, and animal shelter facilities.

City of Murrieta, CA – Master Facilities Plan and Development Impact Fee Calculation Report Update: Mr. Edison served as the principal -in-charge of the City’s study to update their Master Facilities Plan and Development Impact Fee Calculation Report, to ensure that new development pays the capital costs associated with growth. Willdan was recently re -selected, through competitive bid, to update the Impact Fees.

City of Cudahy, CA – Development Impact Fee Study: Mr. Edison led the Willdan team that helped the City analyze impact fees needed to support future development in the City of Cudahy through buildout of the City’s General Plan.

City of Indian Wells, CA – Development Impact Fee Study: Mr. Edison served as the principal- in-charge for the City Indian Wells’ update to their development impact fees. The fee program was comprised of a variety of fee categories including transportation, public facilities, recreation, park , and storm drain.

City of Fountain Valley, CA – Development Impact Fee Update Study: Mr. Edison served as the project manager for the City of Fountain Valley’s update to their development impact fees. Fees included the park impact fee, traffic improvement fee, transportation impact fee, utility infrastructure impact fee and general plan surcharge fee.

J. Edison
Resume Continued

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Education
Master of Public Policy,
Goldman School of
Public Policy,
University of California,
Berkeley
Bachelor of Arts,
Geography, University
of California, Los
Angeles; Minor in Public
Policy and Urban
Planning
Areas of Expertise
Fiscal Impact Analyses
Development Impact
Fees
Public Facilities
Financing Plans
GIS Analysis
19 Years’ Experience

Carlos Villarreal, MPP
Project Manager
Mr. Carlos Villarreal, a Financial Consulting Group Principal Consultant, is proposed to serve in the role of project manager due to his experience documenting nexus findings for development impact fees, preparing capital improvement plans, facilitating stakeholder involvement, and analyzing the economic impacts of fee programs. He has supported adoption of fee programs funding a variety of facility types.

Related Experience
City of East Palo Alto, CA – Development Impact Fee and Financial Feasibility Study:

Mr. Villarreal was the project manager for City’s extensive impact fee study project . Facilities included Water Capacity, Parks and Trails, Public Facilities, Transportation Infrastructure, and Storm Drainage impact fees. Stakeholder meetings were organized to inform the public about the project and gather feedback.

City of Pismo Beach, CA – Development Impact Fee Update: Mr. Villarreal served in the role of project manager for the City’s impact fee project. The program included: police, fire protection, park and recreation improvements, water system improvements, wastewater, traffic, and general government/administrative facilities. Prior to fee program adoption, a stakeholder meeting was held to inform the public about the project, and to solicit feedback from the development community.

City of Carpinteria, CA – Development Impact Fee Update: Mr. Villarreal was the lead analyst to update the City of Carpinteria’s impact fees, which included highways and bridges, streets and thoroughfares, traffic control, parking, storm drain, general government, aquatic, park and recreation, and open space. The City has engaged Willdan again to update their impact fees and Mr. Villarreal is serving in the role of project manager.

County of San Benito, CA – Comprehensive Impact Fee Study : As project manager, Mr.

Villarreal assisted the County with the preparation of an updated and expanded impact fee program. The study included updates to the following fees: capital improvements, road equipment, fire mitigation, and park and recreation.

City of Oroville, CA – Impact Fee Study Update: Mr. Villarreal served as project manager for a study updating the City’s development impact fee program, including parks, l aw enforcement, general government, fire suppression, and traffic facilities. The fee program was adopted by the City Council in 2015. The City engaged Willdan again to update the 2015 study, and Mr. Villarreal served in the role of project manager.

City of McFarland, CA – Development Impact Fee Study Update: Mr. Villarreal served as project manager updating the City’s development impact fee program. The study comprehensively updated the City’s fee program, incorporating new facility master planning and infrastructure costs necessary to facilitate expected development in the City through 2040. The study included the following facility fee categories; general government, law enforcement, park and recreation, fire protection, water, sewer, storm drain, a nd traffic. The fees were adopted by the City Council in 2020.

County of Stanislaus, CA – Impact Fee Study Update: Mr. Villarreal served in the role of project manager for a study updating the County’s existing impact fee program. The program includes a range of facilities, like public protection, library, and parks. The study also included a transportation facilities impact fee, with different fees calculated for two zones in the County. Considerable stakeholder outreach was an integral component of this project.

City of Soledad, CA – Development Impact Fee Study Update : Mr. Villarreal managed the update of the City’s impact fee program, specifically changes in demographics, growth projections, project costs, and facility standards. In particular, the City had to revise its capital facilities needs to accommodate a much lo wer amount of growth than what was projected before 2007. The resulting fees funded new development’s share of planned facilities, while not overburdening development with unnecessary costs.

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City of Morgan Hill, CA – Development Impact Fee Update: Mr. Villarreal served as lead analyst assisting with an update to the City’s existing nexus study, including general government, fire, police, parks and recreation, library, and storm drain fee categories. The project scope included stakeholder outreach. The City engaged Willdan again to update the study and Mr. Villarreal served in the role of project manager.

City of Murrieta, CA – Master Facilities Plan and Development Impact Fee Calculation Report Update: Mr. Villarreal served as the project manager of the City’s study to update their Master Facilities Plan and Development Impact Fee Calculation Report, to ensure that new development pays the capital costs associated with growth. Willdan was recently re -selected, through competitive bid, to update the Impact Fees.

City of Long Beach, CA – Park Impact Fee Update: Willdan assisted with an update to the City’s existing park impact fees, with Mr. Villarreal serving in the role of project manager. The project included updating demographic data and facility planning to properly update park facility standards.

He used this information to then calculate impact fees for single family and multi -family residential dwelling units and prepare a nexus study documenting the revised fees and the required legal findings under the Mitigation Fee Act.

County of Los Angeles/City of Santa Clarita, CA – Law Enforcement Facilities Fee Study:

Mr. Villarreal assisted with the development of an impact fee program to fund law enforcement facilities serving the City of Santa Clarita, and other Antelope Valley jurisdictions within the County of Los Angeles. The analysis involved the comparison of l aw enforcement facilities serving incorporated and unincorporated areas.

County of Riverside, CA – Comprehensive Impact Fee Update : Mr. Villarreal was the lead analyst in the effort to establish a comprehensive fee program for the County, including facilities fees for fire, police, parks, criminal justice, libraries , and traffic. He assisted in the preparation of the technical and analytical documents necessary to calculate the fees and establish the necessary nexus. Mr. Villarreal is once again serving on the project team to update the County’s impact fees through 2030.

City of Moreno Valley, CA – Comprehensive Development Impact Fee Study: Mr. Villarreal served as the project manager for the City’s comprehensive impact update. F ee categories included arterial streets, traffic signals, interchanges, parks, recreation, fire, police, library, corporation yard, maintenance equipment, and animal shelter facilities . In 2022 the City added a public arts fee and workforce development facility fee.

C. Villarreal
Resume Continued

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10. Conflict of Interest Statement
Willdan is not aware of any actual, apparent, direct, or potential conflicts of interest that would arise from any work performed by us that would impair or impede our ability to perform objectively for the City of Clovis.

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11. References
Provided below are client references for projects completed by Willdan and the project team members proposed herein, which demonstrates our ability to provide the requested services. We are proud of our reputation for customer service and encourage you to contact our past clients regarding our commitment to excellenc e.

City of East Palo Alto
Development Impact Fee Nexus and Financial Feasibility Study In 2023, Willdan was selected through a competitive bidding process to conduct a comprehensive Development Impact Fee Nexus and Financial Feasibility Study for the City. The planned growth outlined in the City’s 2035 Vista General Plan represented signific ant changes to the anticipated development of the City, and the City’s impact fee program was due for an update pursuant to the Mitigation Fee Act. Additionally, there has been an increasing interest in development within the Ravenswood Business District/4 Corners Transit-Oriented Development Specific Plan area that required modifications to the City’s infrastructure and financing plans.

To address these challenges, Willdan carried out a comprehensive Development Impact Fee Nexus Study update to revise the existing fees and conducted a Financial Feasibility Analysis to evaluate the effects of the maximum supportable impact fees on development projects. The impact fees included Water Capacity, Parks and Trails, Public Facilities, Transportation Infrastructure, and Storm Drainage.

For this project, the Willdan team evaluated nine development prototypes, compared impact fees with six similar cities, conducted extensive stakeholder outreach, and collaborated closely with City staff. The project was completed in March 2025.

Client Contact: Hanson Hom, FAICOP, Deputy Manager, Special Projects 1960 Tate Street, East Palo Alto, CA 94303
Tel #: (650) 519-5121 | Email: [email protected]
Project Dates: 2023 – 2025 Project Budget: $115,872
Project Team: James Edison | Carlos Villarreal Project %: 100% County of Stanislaus, CA
Development Impact Fee Update
Willdan has a long -standing relationship with the County of Stanislaus. In 2016, we assisted the County with an update to the existing impact fee program. The program is made up of a range of fee categories including animal control, behavioral health, crim inal justice, detention, emergency services, health, library, park, sheriff patrol and investigation, and countywide information technology facilities. Fees are collected on new development countywide, including incorporated municipalities within the Count y, which include the Cities of Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock and Waterford. The study also includes a Regional Transportation Impact Fee (RTIF), which is currently being updated for the County. Considerable stakeho lder outreach was an integral component of this project.

Willdan recently revised the Public Facilities Impact Fee Update report to include an accessory dwelling unit land use category.

Client Contact: Keith Boggs, Assistant Executive Officer (Retired, serving as independent consultant to the County) 1010 10th Street, Suite 6800, Modesto, CA 95354
Tel #: (209) 652-1514 | Email: [email protected]
Project Dates: 2011 – 2021 Recent DIF Project Budget: $71,680 Project Team: James Edison | Carlos Villarreal Project %: 100% Page B27
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City of Pismo Beach, CA
Development Impact Fee Study
Willdan assisted the City of Pismo Beach with an update to their impact fee program. The program included the following facilities: police, fire protection, park and recreation improvements, water system improvements, wastewater, traffic, and general gover nment/administrative facilities. This project was warranted due to the amount of time that had elapsed since the prior update, coupled with the adoption of new and revised public facility master plans that complemented the updated impact fees. Prior to fee program adoption, Willdan held a stakeholder meeting to inform the public about the project, and to solicit feedback from the development community.

Willdan was re-engaged in 2024 to provide an update to the Development Impact Fee Study.

Client Contact: Nadia Feeser, Administrative Services Director 760 Mattie Road, Pismo Beach, CA 93449
Tel #: (805) 773-7010 | Email: [email protected]
Project Dates: 2018 – Ongoing Recent DIF Project Budget: $45,600 Project Team: James Edison | Carlos Villarreal Project %: 100%

City of Murrieta, CA
Comprehensive Development Impact Fee Study
Willdan was retained originally in 2013 to conduct a comprehensive update to the City’s impact fees. The team was once again retained through competitive bid in 2023 to update the following fees: Law Enforcement, Fire Protection, Streets and Minor Bridges, Traffic Signals, Storm Drainage, General Facilities, Bridge/Freeway/Ramps, Open Space Acquisition, Park Land Facilities, Community Center, and Public Library.

Willdan developed a technically defensible fee justification based on the reasonable relationship and deferential review standards; provided a schedule of maximum -justified fees by land use category; engaged stakeholders to facilitate public support for th e impact fee; and provided comprehensive documentation of all assumptions, methodologies, and results, including findings required by the Mitigation Fee Act.

Willdan was re-engaged in 2023 to provide an update to the Development Impact Fee Study.

Client Contact: Javier Carcamo, Finance Manager
1 Town Square, Murrieta, CA 92562
Tel #: (951) 461-6090 | Email: [email protected]
Project Dates: 2013 – 2024 Recent DIF Project Budget: $86,520 Project Team: James Edison | Carlos Villarreal Project %: 100%

City of Fremont, CA
Comprehensive Impact Fee Update
Willdan’s impact fee staff has a long-standing relationship with the City of Fremont. In 2014/2015, Willdan successfully updated their impact fee programs, which included an update of the City’s transportation impact fee program and capital improvement pro gram. The City retained Willdan again in 2020 to update their impact fee program and the project was completed during the second quarter of 2021.

Client Contact: Michelle Silva-Salinas, Public Works Business Manager 3300 Capitol Avenue, Fremont, CA 94538
Tel #: (510) 979-5705 | Email: [email protected] Project Dates: 2013 – 2021 Recent DIF Project Budget: $226,840 Project Team: James Edison | Carlos Villarreal Project %: 100% Page B28
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12. Acknowledgement of Agreement
Willdan has reviewed the City’s sample agreement and requests no changes to the terms and conditions, Willdan will sign the agreement as presented with the City’s RFP.

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27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
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Review and Update of
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Proposal for
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Cost Proposal
September 23, 2025
Mr. Sean Smith
Deputy City Engineer
City of Clovis
1033 Fifth Street
Clovis, CA 93612
Re: Proposal to Conduct a Development Impact Fee Review and Update, Including Nexus Studies, for the City of Clovis
Dear Mr. Smith:

Willdan Financial Services (“Willdan”) is pleased to present the following cost proposal to the City of Clovis to conduct a comprehensive Development Impact Fee Review and Update, including the preparation of Nexus Studies . This submission reflects our understanding of the City’s Request for Proposal (“RFP”)

Willdan is excited about this opportunity to serve the City of Clovis. To discuss any aspect of our technical and/or cost proposal, please contact Managing Principal, James Edison directly at ( 510) 912 -4687 or via email at [email protected].

Sincerely,

WILLDAN FINANCIAL SERVICES

Chris Fisher
Vice President / Director

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7. Cost Proposal
Based upon the scope of work identified herein, Willdan proposes a not-to-exceed fixed fee of $131,520 for the City’s Development Impact Fee Review and Update, including Nexus Studies. The table below provides a breakdown of the proposed fee by task and project team member.

Notes
Please note the following:
▪ The fee denoted above includes attendance at up to ten (10) in -person meetings with City staff, stakeholders, and the City Council as part of this engagement. Attendance at more than ten meetings and/or presentations will be billed at our current hourly rates, plus actual expenses. ▪ Comprehensive written responses to resolve conflicts or preparation of more than one set of major revisions to the draft report will be classified as Additional Services, and may require additional billing at hourly rates stated in the hourly rate schedule listed below. These additional fees shall only take effect once the fixed fee stated above has been exceeded.
▪ Our fixed fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan 's rates in effect at the time of such response.
▪ Optional/Additional Services beyond the listed Scope of Services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates.
▪ The fee mentioned above may be lower, should there be fewer additional fees.

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Hourly Rates
Provided below is Willdan’s hourly rate table identifying current hourly rates for additional or optional services.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate
Vice President / Director $310
Managing Principal James Edison $300
Principal Consultant Carlos Villarreal $270
Senior Project Manager $250
Project Manager $210
Senior Project Analyst $150
Senior Analyst $135
Analyst II $120
Analyst I $110

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Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
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EXHIBIT C

INSURANCE REQUIREMENTS

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EXHIBIT D

SIGNING AUTHORITY

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1 ACTION BY UNANIMOUS WRITTEN CONSENT OF

THE BOARD OF DIRECTORS
OF

WILLDAN FINANCIAL SERVICES
(Approval of Officers)
(July 24, 2024)

The undersigned, constituting all of the directors of Willdan Financial Services, acting pursuant to the authority of Corporations Code Section 307(b), hereby adopt s the following resolution by unanimous written consent, effective July 24, 2024:

RESOLVED, that the Slate of Officers of Willdan Financial Services dated July 24, 2024, a copy of which is attached hereto as Exhibit “A,” is hereby approved, effective immediately.

By: ________________________
Michael A. Bieber, Sole Director
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AGENDA ITEM NO. 17.

Exhibit “A”
Officersslate wfs 9/1/2016

WILLDAN FINANCIAL SERVICES

SLATE OF OFFICERS

July 24, 2024

Michael A. Bieber ........................ Chairman of the Board Mark J. Risco ............................... President, Chief Executive Officer Creighton K. Early ........................ Chief Financial Officer, Treasurer Robert Fisher ................................. Vice President – Group Manager Gladys Ceballos……………………Vice President – Group Manager
Jeff McGarvey .............................. Vice President Dan Jackson ................................. Vice President Jason Gray ..................................... Vice President Josephine Moses ........................... Vice President Michael Vasquez ........................... Vice President Kate Nguyen ................................. Secretary Cathaleen D. Steele ....................... Assistant Secretary Rebekah L. Smith ......................... Assistant Secretary

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AGENDA ITEM NO. 17.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 15, 2025
SUBJECT: Consider Approval - 2024-25 Annual Comprehensive Financial Report.

Staff: Jay Schengel, Finance Director
Recommendation: Approve

ATTACHMENTS: 1. 2024-25 Annual Comprehensive Financial Report (ACFR)

2. Statement on Auditing Standards Letter

RECOMMENDATION
For the Council to approve the 2024-25 Annual Comprehensive Financial Report.

EXECUTIVE SUMMARY
Annual Comprehensive Financial Reports (ACFR) are a primary objective source of information to most people concerned about a government's financial condition. Taxpayers are interested in the amount of revenues and expenditures. Investors and bond-rating agencies are interested in the ability of a jurisdiction to meet its debt obligations. For the City Council, the financial reports provide an opportunity to determine compliance with budgetary appropriations as well as the status of the government's assets and liabilities and the financial condition of the City.

The City of Clovis' ACFR was audited and received an unqualified opinion from The PUN Group, LLP, a firm of independent, licensed certified public accountants, which mea ns the financial statements for the fiscal year ending June 30, 2025, are free of material misstatement and are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP).

BACKGROUND
The 2024-25 ACFR represents the City’s financial, operational, and current economic condition for the fiscal year ending June 30, 202 5. The City’s financial statements for this period have been audited by The PUN Group, Certified Public Accountants, the City’s independent auditing firm. Their Independent Auditors Report has been incorporated into the ACFR, and their opinion letter is included on pages 13 -15. The auditors have also prepared the Statement on Auditing Standards (SAS114) letter (Attachment 2) that was submitted subsequent to the completion of the financial report.

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State law requires the City of Clovis to prepare a complete set of audited financial statements.

The attached 2024-25 ACFR (Attachment 1) fulfills this requirement.

The PUN Group has audited the City’s financial statements prepared by Finance staff for the fiscal year ended June 30, 202 5, and have provided an unqualified (clean) opinion. An unqualified opinion concludes that the ACFR presents fairly, in all material r espects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, and the respective changes in financial position. This audit includes a review of the City’s financial records, internal controls, management of assets and review of major account balances and large dollar activities to validate year-end balances. There were no audit findings for fiscal year 2024-25.

The ACFR is prepared annually in accordance with GAAP and reporting standards established by the Governmental Accounting Standards Board (GASB), as verified during the independent auditor’s examination. The ACFR for fiscal year ending June 30, 2025 continues to comply with the GASB reporting standards.

The financial statement information and audit opinion, as well as additional narrative and statistical information, is presented within the ACFR. The layout of the ACFR follows guidelines established by the Government Finance Officers Association (GFOA). Four major sections are presented:

 Introductory Section – This section includes the Letter of Transmittal, which discusses the profile of the City and factors affecting the City’s financial condition along with the City’s long-term policies and plans. Additionally, this section includes the GFOA Certificate of Achievement for Excellence in Financial Reporting for the prior fiscal year, the City’s Organizational Chart, and a listing of the City of Clovis’ principal officials.

 Financial Section – This section includes the Independent Auditor’s Report, Management’s Discussion and Analysis, the audited financial statements, the notes to the financial statements and additional required supplementary information.

 Statistical Section – This section includes supplemental data not evident in the Financial Section, such as financial trend information and demographic information.

 Single Audit Section – This compliance -based audit is required by law for government entities with federal expenditures in excess of $750,000. This audit includes an audit of both the financial statements and the federal grant awards. This section includes the Independent Auditor’s Report on internal controls and compliance for each major grant program along with the Schedule of Expenditures of Federal Awards and notes to those expenditures. Finally, the Appropriations Limit Schedule and corresponding notes complete the section.

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Two Kinds of Financial Statements - Two distinct forms of information are provided in the basic financial statements:

Government-wide statements. These are consolidated financial statements for all of the City’s operations on a full accrual basis of accounting which record revenues when they are earned and expenses when a liability is incurred, regardless of when cash is received or paid. They are not presented on a separate fund basis; instead, fiscal operations are organized into two major activities: governmental and business -type. They will have a “net position” focus which is designed to show the overall financial health of the government similar to a private sector’s balance sheet and income statement. It excludes interfund transactions such as internal service funds and fiduciary funds. Expenses (which may include allocated “indirect costs”) are shown both gross and net of related revenues such as fees and grants (see page 31).

Fund statements. In meeting stewardship and accountability concerns, financial statements are also presented on a fund basis - but not using the same basis of accounting as the government- wide statements for governmental funds (see pages 32-43). Governmental funds such as the General Fund, Measure Y Fund, Special Revenue, Capital Projects and Debt Service are reported on the modified accrual basis of accounting where revenues are recognized when measurable and available and expenditures are recognized when the liability is incurred.

Proprietary Funds including Enterprise Funds, Internal Service Funds, and Fiduciary Funds are reported on a full accrual basis of accounting.

Because there are differences in the basis of accounting and scope of transactions, there are significant differences between these two financial statements - but they are not obvious. For this reason, a detailed reconciliation between them is required as part of the audited basic financial statements (see page 34).

The ACFR includes all funds of th e City. In addition to the City's funds, the Clovis Successor Agency, a private purpose trust fund separate from the City, is reported in the ACFR.

This is the thirty -seventh year that the City's Finance Department has prepared the Annual Comprehensive Financial Report. The previous reports prepared by the Finance Department (1987-88 through 202 3-24) were submitted to the Government Finance Officers Association (GFOA) for consideration of the GFOA Certificate of Achievement Program. The City subsequently received the Certificate of Achievement for Excellence in Financial Reporting presented by the GFOA for each of these years. We believe the report for 2024-25 continues to meet the requirements of the Certificate of Achievement Program and will be submit ted to GFOA for review.

FISCAL IMPACT
This information provided in the ACFR is important to the Council, public, and financial institutions to affirm that the City's financial activity is accounted for in accordance with GAAP.

In addition, the ACFR includes all necessary disclosures to provide an understanding of the City's financial activities and fiscal condition.

REASON FOR RECOMMENDATION
The Annual Comprehensive Financial Report is formally being submitted to the Council. 351
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ACTIONS FOLLOWING APPROVAL
After receiving the ACFR by the Council, the ACFR will be distributed to interested parties, other agencies, financial institutions, bond-rating services, and copies will be made available for public review. In addition, the ACFR will be submitted to t he GFOA for consideration of the GFOA Certificate of Achievement Program.

CONFLICT OF INTEREST
None.

Prepared by: Susan Evans, Deputy Finance Director

Reviewed by: City Manager AH
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CITY OF
C L O V I S

CALIFORNIA
Annual
Comprehensive
Financial
Report
For the Fiscal Year ended
June 30, 2025
Attachment 1
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2025

VONG MOUANOUTOUA, MAYOR

DIANE PEARCE, MAYOR PRO-TEM

LYNNE ASHBECK, COUNCILMEMBER

MATT BASGALL, COUNCILMEMBER

DREW BESSINGER, COUNCILMEMBER

ANDREW HAUSSLER, CITY MANAGER

CITY OF CLOVIS

CALIFORNIA
Prepared by City of Clovis Finance Department
Jay Schengel, Finance Director
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CITY OF CLOVIS

TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Page

INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal .............................................................................................................................................. 3 GFOA Certific
ate of Achievement ......................................................................................................................... 8 Organizational Chart ......................................................................................................... .................................... 9 List of Principal Officials ...................................................................................................................................... 10

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................. 13 Management’s Discuss
ion and Analysis (Required Supplementary Information) (Unaudited) ........................... 16 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position................................................................................................... ...................... 30 Statement of Activities .................................................................................................... .......................... 31 Fund Financial Statements:

Balance Sheet-Governmental Funds ........................................................................................... ............ 32 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds ............... 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balance of Governmental Funds to the Statement of Activities ............................................ 34 Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual:

General Fund ...................................................................................................................................... 35 Statement of Net Position-Proprietary Funds ........................................................................................... 36 Statement of Revenues, Expenses and Changes in Net Position-Proprietary Funds.............................. 38 Statement of Cash Flows-Proprietary Funds ........................................................................................... 40 Statement of Fiduciary Net Position-Fiduciary Funds .............................................................................. 42 Statement of Changes in Fiduciary Net Position ...................................................................................... 43 Notes to Financial Statements ......................................................................................................................... 44 Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios ............................................................... 82 Schedule of Pension Contributions ................................................................................................................ 86 Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet-Nonmajor Governmental Funds .......................................................................... 90 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances-Nonmajor Governmental Funds ........................................................................ 92 Schedules of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual:

Local Transportation Capital Projects Fund ........................................................................................ 94 Off Highway Use Special Revenue Fund ........................................................................................... 95 Housing & Community Development Special Revenue Fund ............................................................ 96 Community Facilities District 2020-1 Special Revenue Fund ............................................................. 97 1976 Fire and Sewer Debt Service Fund ............................................................................................ 98 Parks and Recreation Capital Projects Fund ...................................................................................... 99 Refuse Equipment Capital Projects Fund ......................................................................................... 100 Combining Statement of Net Position-Internal Service Funds ..................................................................... 102 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position-Internal Service Funds .......................................................................... 103 iii
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CITY OF CLOVIS

TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Page

FINANCIAL SECTION (Continued)
Combining Statement of Cash Flows-Internal Service Funds ..................................................................... 104 Combining Statement of Net Position- General and Measure Y Funds ...................................................... 106 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position-General and Measure Y Funds ............................................................. 107 Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual:

Measure Y .................................................................................................................. ............................ 108 Combining Statement of Fiduciary Net Position .......................................................................................... 110 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds .......................................... 111 STATISTICAL SECTION (Unaudited)
Net Position by Component .............................................................................................................................. 115 Changes in Net Position .................................................................................................................................... 116 General Government Revenues by Source ...................................................................................................... 118 General Government Expenditures by Function ............................................................................................... 119 Changes in Fund Balances of Governmental Funds ........................................................................................ 120 Fund Balances of Governmental Funds ............................................................................................................ 122 Assessed and Estimated Actual Value of Property ........................................................................................... 123 Property Tax Rates-Direct and Overlapping Government ................................................................................ 124 Principal Property Tax Payers ........................................................................................................................... 125 Property Tax Levies and Collections ................................................................................................................. 126 Ratios of Outstanding Debt by Type ................................................................................................................. 127 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita ........................................................................................ 128 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt ............................................ 129 Computation of Direct and Overlapping Bonded Debt ...................................................................................... 130 Computation of Legal Debt Margin .................................................................................................................. 131 Revenue Bond Coverage .................................................................................................................................. 132 Demographic Statistics ....................................................................................................... .............................. 133 Principal Employers .......................................................................................................... ................................ 134 Full-Time City Employees ................................................................................................................................. 135 Capital Asset Statistics by Function .................................................................................................................. 136 Operating Indicators by Function ...................................................................................................................... 137 Building Permit Valuations ................................................................................................... ............................. 138 Miscellaneous Statistics ..................................................................................................... ............................... 139

SINGLE AUDIT SECTION
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 ......................................................................................... ............ 143 Independent Auditors' Report on Compliance with Requirements that Could have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with Federal Uniform Guidance ...................................................................................... 145 Schedule of Expenditures of Federal Awards ................................................................................................... 148 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 149 Schedule of Findings and Questioned Costs .................................................................................................... 150

LOCAL TRANSPORTATION FUND SECTION
Independent Auditor’s Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of the Basic Financial Statements in Relation to the Local Transportation Purpose Funds Performed in Accordance with Government
Auditing Standards ....................................................................................................... 153 iv
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CITY OF CLOVIS

TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Page

APPROPRIATION LIMIT SECTION
Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations

Limit….…. ................................................................................................................... ................................. 155 Appropriations Limit Schedule ................................................................................................ .......................... 157 Notes to Appropriations Limit Schedule ............................................................................................................ 158 v
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November 26, 2025
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Clovis:

It is with pleasure that I present to you the City of Clovis A nnual Comprehensive Financial Report (ACFR). This report has been formatted to comply with the financ ial reporting model as prescribed by the Governmental Accounti ng Standards Board (GASB). These statements have been audited in accordance with Gener ally Accepted Auditing Standards (GAAS) by a firm of licensed certified public accountants as required by State law. Pur suant to that requirement, we hereby issue the ACFR of the City of Clovis for the fiscal y ear ended June 30, 2025.

This report consists of management’s representations concerning the financ es of the City of Clovis. Consequently, managem ent ass umes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the City of Clovis has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliabl e information for the preparation of the City of Clovis’ financial s tatements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh thei r benefits, the City of Clovis’ comprehensive fr amework of inter nal controls has been designed to provide reasonable rather than absolute assurance t hat the financial statem ents will be free from material misstatements. As ma nagement, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Clovis’ financial statements have been audited by Th e Pun Group LLP. The goal of the independent audit was to provide r easonable assurance that t he financial statem ents of the City of Clovis for t he fiscal year ended June 30, 2 025, are free of material misstatement. The independent audit involv ed ex amining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates m ade by management; and evaluating the ov erall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonabl e basis for rendering an unmodified op inion that the City of Clovis’ financial statements for the fi scal year ended June 30, 2025, are fairly pr esented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

City Manager 559.324. 2060 • Finance 559.324. 2130 • Fire 559.324. 2200 • General Services 559. 324.2060 Planning & Development Services 559 .324.2340 • Police 559.324.2400 • Public Utilities 5 59.324. 2600 • TTY-711 www.cityofclovis.com
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GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complem ent MD&A and should be read in conjunction with it. The City of Clovi s’ MD&A can be found immediately following the report of the independent auditors.

Profile of the Government
The City of Clovis, inc orporated in 1912, as a general law City of the State of Ca lifornia, is located near the middle of t he state in the San Joaquin Vall ey. The Central Valley is considered to be a national and world leader in the agricultural industry. The City of Clovis currently occupies over 25 square miles and serves a population of 129,121.

The City of Clovis operates under the council-m anager form of governm ent. Policy-making and legislative authority are vested in a govern ing council consisting of the m ayor and four other members. The council is elected on a non-partis an bas is. Council members ser ve four-year staggered terms, with two council me mbers elected in one election and three elected in another election, s eparated by two year s. The mayo r is selected from among the council members by the council mem bers and serv es a two-y ear term. All five members of the governing board are elected at large. The council is re sponsible, among other things, for passing ordinances, adopting the budget, appoint ing committees, and hiring the City’s manager and attorney. The City manager is responsible for carr ying out the policies and ordinances of the governing council, for ov erseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of Clovis provides a full range of serv ices, including police and fire protection; the construction, maintenance, and cleaning of str eets and other infrastructure; planning and development services; water service; refuse collection, dis posal, and r ecycling services; sewer service; s torm drainage; transit services; recreation activities and cultural events; and general administration.

The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are requir ed to submit requests for appr opriations to the City manager during the second week of March eac h year. The City manager uses these requests along with input from the council to dev elop a proposed budget. By the second Monday in May the pr oposed budget is presented to the City council for rev iew. The council is required to hold public hear ings on the proposed budget and to adopt a final budget by no later than June 30, the close of the City of Clovis’ fiscal year. The appropriated budget is prepared by fund and department. The City manager may make transfers of appropriations between departments within a specific fund of up to $5,000 and up to $2,500 from reserves.

Transfers in excess of thos e amounts require council action. Budget-t o-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Fo r the general fund, the budget-t o-actual comparison is presented on page 35 as part of the basic financial statements. For all other governmental funds with appropriated annual budgets, other than the general fund, this comparison is presented in the governmental fund subsection of this report, which starts on page 89. 4 364
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Factors Affecting Financial Condition

The information presented in the financial stat ements is perhaps best understood when it is considered from the broader pers pective of the specific environment within which the City of Clovis operates.

Local Economy. The City’s unemployment rate as of June 2025 is approximately 5.3%, a slight increase from 4.7% in June 2024. This
reflects broader statewide and national trends of
economic cooling. While Clovis continues to outperform many peer cities, signs of a slowdown are emerging.

The City is now experiencing a decline in local General Fund sales tax revenue, following a period of historically high collections in 2023 and early 2024. This decline is attributed to persistent inflationary pressures, elevated intere st rates, and shifts in consumer behavior.

Although Clovis has maintained higher-than-aver age retail sales and strong hotel occupancy rates compared to other cities and the state, t he rate of revenue growth has slowed and is no longer considered sustainable.

Inflation, which peaked near 10% in 2023, has moderated to around 3.8% in mid-2025.

However, the Federal Reserve has maintained high interest rates to curb demand, which continues to impact borrowing, investment, and real estate activity.

The national economy is forecasted to slow further, though a recession is not currently projected for the coming year. Nonetheless, early indicators of economic softening are evident. As demonstrated during the 2020 recession, Clovis’ long-term strategy of building a diverse and resilient economy remains critical to navigating uncertainty. The City’s ability to attract high-quality businesses, employees, and residents continues to be a stabilizing force.

The City is also adapting to a rapidly cha nging economic environment. The rise of non- taxable digital services and delivery-based commerce is reducing reliance on traditional brick- and-mortar retail. These trends are being addre ssed in the General Plan Update and through initiatives like the Shaw Avenue Revitalization Strategy.

Clovis has also seen continued growth in entrepreneurial start-ups , which the City has actively supported. These ventures are helping to diversify the local economy and create new opportunities.

As the City continues to analyze the economic shifts accelerated by the pandemic, it is clear that Clovis remains on solid economic footing. The community’s strengths—a well-educated population, strong infrastructure, sound land use policies, and a culture of hard work— position it well for long-term success. Maintain ing a spirit of partnership with local businesses will be essential to achieving shared goals and ensuring a vibrant economy that supports the success of all residents.

The City of Clovis is part of t he Fresno/Clovis Metropolitan Area. This includes the City of Clovis, City of Fresno and the developed areas of the County of Fresno. The population of Fresno County is 1,037,053 as of January 1, 2025. The City’s popul ation of 129,121 experienced a .2% growth in 2025 compared to a .2% growth rate in th e County. There are approximately 432,000 jobs in Fr esno County. The City of Clovi s has 59,300 employed out of a total labor force of 62,600 with many Clovis residents employed outside of the City limits. 5 365
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Major employers include Target
and Costco wit h over 400 employees, Clovis Community
Hospital with over 3,000 employees, Wawona Frozen Foods with over 700 employees, Anlin Industries with 500 employees, t he County of Fresno with over 1,800 employees, and the largest employer, Clovis Unified School Dis trict with over 5,800 employees. Of the approximately 40,500 total jobs in Clovis, 14,700 jobs are generated by the City’s top ten employers.

Long-term financial planning. As part of the City of Clovis l and use planning process, the City’s completed General Plan is at the top of th e City’s land use regulation hierarchy. It is the foundation for most of the Council’s budgeting decisions in terms of capital facilities, staffing, programs, utility infrastructure, and levels of service; it establishes a land use pattern for lands beyond the City limit; it provides the vision and guidance for capital improvements and the development of City infras tructure; and it is used to cr eate development impact fees and provides the basis for environmental analysis of the growth of th e City. The plan is intended to guide development for a period of ten years and will be the basis of the City’s annual 5-year operating and capital forecast.

Part of the previous General Plan was the construction of a wa stewater treatment plant to serve the needs of the new growth area. The plant is expected to accommodate growth through 2033 when construction of phase two of the facility is anticipated. The wastewater treatment plant creates approximately 2.8 million ga llons of disinfected recycled water each day and distributes this water through a “pur ple pipe” distribution system for landscape irrigation throughout the east side of the City. The reuse of this water will help conserve and manage a limited water supply.

Also, to finance current growth, the City has in pl ace a variety of user and developer fees to pay for streets, parks, water wells and lines, and sewer lines. The City reviews these fees on an annual basis to ensure that the f ee structure is in line with the co st of construction. The Water and Sewer Funds have approved annual increases of 3% into the future if necessary.

The Community Sanitation Fund has approved annual increases of 4% into the future if needed. For fiscal year 2024/25, the City implemented a 3% annual increase in water and sewer rates and a 4% annual increase in refuse, residential recycling, organics and street sweeping rates. The Sewer Fund bond surcharge of $7.30 was fully rebated for the fiscal year.

Structurally Balanced Budget Policy. Prior to the economic re cession, in fiscal year 2006/07, the City Council utilized the em ergency reserve when budgetary demand for services exceeded available resources. However, with a decline in building activity beginning in the fall of 2007, the City Council acted quickly to cut costs and services to ensure a balanced budget. Although it was necessary in 200 7/08 to utilize addition al funds from the emergency reserve, the efforts of the Council to develop a “structurally balanced budget” has paid off and the reserve has been rebuilt from 5. 5% of expenditures in 2007/08 to 17.6% of the 2025/26 general fund budgeted expend itures. The Council is determined to maintain a structurally balanced budget where current es timated expenditures are within projected current revenues in order to provide budgetary stability for all operating budgets.

Assigned for Emergencies. The City currently has a policy to assign a portion of its fund balance for emergencies. These emergencies can range from major catastrophic incidents to significant economic downturns. The City Council annually consi ders an increase in the fund balance assigned for emergencies whenever ther e is unexpected or one-time revenue or 6 366
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expenditure savings are realized. The use of the assigned fund balance must be approved by 4/5ths of the Council.

Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Rep
orting to the Cit y of Clovis for its ACFR for the fiscal year ended June 30, 2024. This was the thirty se venth consecutive year that the City has received this prestigious award. To be aw arded a Certificate of Achievement, the City published an easily readable and efficiently organized ACFR. This report satisfied both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a per iod of one year only. We believ e that our current ACFR continues to meet the Certific ate of Achievement Progr am requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated Ju ly 1, 2025. To qualify for the Distinguished Budget Presentation Award, the governments’ budget document wa s judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.

The preparation of this report has been accomplished with the efficient and dedicated service

of the City’s Finance Department. I would like to express my appreciation to everyone who

assisted in its preparation, especially Susan Evans, Angela Papazian, Jose Cortez, Jose Reynoso, Ran Chan, Emily Pimentel and Elena Me
ndrin.

Respectfully submitted,
Jay Schengel, CPA
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clovis
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 202
Executive Director/CEO
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CITIZENS
OF
CLOVIS
MAYOR
AND

CITY COUNCIL

CITY MANAGER

ASSISTANT CITY MANAGER

CITY CLERK

CITY ATTORNEY
Planning and Development Services
Department
Planning, Enterprise Fund
Building, Enterprise Fund
Engineering Services, Enterprise Fund
Community Investment Program, Capital
Project Fund

PLANNING COMMISSION

PERSONNEL COMMISSION

CITY OF CLOVIS ORGANIZATION CHART
Police Department, General Fund
Administration and Support Services
Communication
Patrol
Investigations
Youth Services
Animal Shelter
City Manager Department
Communications, General Fund
Economic Development, General Fund
Housing and Community Development,
Special Revenue Fund
Information Technology, Internal Service Fund
Elections, General Fund
Legislative Administrative, General Fund
Records Management, General Fund
Public Utilities Department
Water, Enterprise Fund
Wastewater, Enterprise Fund
Community Sanitation, Enterprise Fund
Parks, General Fund
Streets, General Fund
Fleet Maintenance, Internal Service Fund
General Services Department
Personnel/Risk Management, General Fund
Senior Services, General Fund
Public Transit, Enterprise Fund
Recreation Services, General Fund
Facilities Maintenance, Internal Service Fund
Purchasing, Internal Service Fund
Fire Department, General Fund
Operations
Training
Fire Prevention
Emergency Preparedness
Finance Department, General Fund
Accounting/Reporting
Utility Billing
Budgeting
City Treasurer
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LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2025
Title Name
City Manager Andrew Haussler
Assistant City Manager Paul Armendariz
City Clerk Briana Parra
Economic Development, Housing &
Communications Director Chad McCollum
Finance Director/City Treasurer Jay Schengel
Fire Chief Chris Ekk
General Services Director Amy Hance
Planning & Development Services Director Renee Mathis
Police Chief Curt Fleming
Public Utilities Director Scott Redelfs
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AGENDA ITEM NO. 18.
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AGENDA ITEM NO. 18.
4660 La Jolla Village Drive, Suite 100
San Diego, California 92122
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, 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 f und information of the City of Clovis , California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above pr esent fairly, in all material respects, the respective financial position of the governmental activities, the bus iness-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, cash flows, and the budgetary comparison schedule for the Gene ral Fund, 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 responsib ilities under those standards are further described in the Auditor’s Responsibilities for the Audi t of the Financial Statem ents section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of a Matter – Change in Accounting Principle
As discussed in Note V.F to the financial statements , the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 101, Compensated Absences , effective July 1, 2024. The implementation of this standard required the City to change its method of ac counting for compensated absences and resulted in a restatement of beginning net position as of July 1, 2024. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair pres entation 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 financi al 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.

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AGENDA ITEM NO. 18.

To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement wh en 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 contro l. Misstatements are considered material if there is a substantial likelihood that, individual ly 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 auditing standards generally accepted in the Un ited States of America 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 financ ial statements, whether due to fraud or error, and design and perform audit procedures res ponsive 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 ac counting 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 cert ain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United Stat es of America require that the Management’s Discussion and Analysis, the Schedules of Changes in Net Pension Liability and Related Ratios, and the Schedule of Pension Contributions as listed in the table of contents, be pres ented to supplement the basic financial statements. Such 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 hist orical 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 met hods 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 audi t 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.

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AGENDA ITEM NO. 18.

To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, California

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules 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 Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules are 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 incl uded in the annual report. The other information comprises the introductory and statistical sections but does not incl ude the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 25, 2025 on our consideration of the City’s internal control over financ ial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agree ments and other matters. The pur pose of that report is to describe the scope of our testing of inte rnal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Diego, California
November 26, 2025
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AGENDA ITEM NO. 18.

Management’s Discussion and Analysis

This discussion and analysis of the City of Clovis’ financial performance provides an overview of the City’s financial activities for the fisca l year ended June 30, 2025. Please read it in conjunction with the accompanyi ng transmittal letter, the basic financial statements and the accompanying notes to those financial statements.

Financial Highlights

The City’s government-wide total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources (net position) at the close of the fiscal year by $1.11 billion, which is 6% more than 2024. Of this amount, $101 million is in unrestricted net position, which is available to meet the City’s ongoing commitments to citizens and creditors.

The City’s General Fund, including Measure Y, Landscape Maintenance, Parking and Business Improvement (PBI A), and Supplemental Law Enforcement, ended the year with a fund balance of $41 million, which represents a small increase from the previous year. The unassigned balance of $8.2 million is available for carryover to fund future general fund expenditures.

During the year, approved rates for recycling and green waste pr ograms increased by 4% along with a 4% increase in the refuse collection and disposal program. A 3% increase in the Water and Sewer Funds were implemented during the 2025 fiscal year.

The City continued to rebate the full sewer bond surcharge of $7.30 per month.

Overview of the Financial Statements

This annual report consists of a series of financial statements. These statements include all activities of the City of Clovis, using the integrated approach as prescribed by GASB Statement No. 34. The Statement of Net Position and Statem ent of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements tell how these servic es are financed in the short term as well as what remains for future spending. Fund financial statem ents also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the Government.

Reporting the City as a Whole

Government-wide financial statements. The government-wide fi nancial statements are designed to provide readers with a broad overview of the City’s finances. These statements include all assets and liabili ties of the City using the accrual basis of accounting, which is similar to the accounting method used by most pr ivate sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid out.

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AGENDA ITEM NO. 18.

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

The statement of activities presents information showing how the City’s net position changed in the most recent fiscal year . All changes of net positi on are reported as soon as the underlying event giving rise to the change o ccurs. Thus, revenues and expenses are reported on this statement for some items that will result in cash flows in future fiscal periods (e.g. earned but unused vacation leave).

The government-wide financial statements of the City are divided as follows:

Governmental Activities: Most of the City’s basic services are included here such as public safety, transportation (street and roads), community development, culture and recreation and general government. These services are prim arily financed by property and sales taxes and federal and state grants.

Business-type Activities: The City charges fees to customers to cover the costs of services provided. The City’s utilities, water, sewer, community sanitation (refuse and street cleaning), planning and development services as well as public transit services are included here.

The government-wide financial statements can be found on pages 30-31 of this report.

Fund financial statements. The fund financial statements provide more detailed information about the City’s most significant funds, not the City as a whole. A fund is a grouping of related accounts that is used to maintain cont rol over resources that have been segregated for specific activities or objectives. Some funds are required to be established by State Law or by bond covenants. Managem ent establishes other funds to control and manage money for particular purposes or to sh ow the City is meeti ng legal responsibilities for using certain taxes, grants, and other money. All the funds of the City can be classified into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds . Governmental funds are used to account for essentially the same functions reported as governmental activities in the governmen t-wide financial statements.

However, unlike the government -wide financial statements, government al fund financial statements focus on the near-term inflows and outfl ows of spendable resources, as well as on balances of spendable resources available at t he end of the fiscal year. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Such information is useful in evaluating a government’s near-term financing requirements.

Because the focus of the gover nmental funds is narrower than that of the government-wide financial statements, it is usef ul to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions
. Both the governmental fund balance sheet and
the governmental fund statem ent of revenues, expenditures, and changes in fund balances provide reconciliation betw een governmental funds and governmental activities. This reconciliation explains the relationship (or differences) between the fund statements and the government-wide statements.
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AGENDA ITEM NO. 18.

The City of Clovis maintains seven individual gov ernmental funds. Info rmation is presented separately in the government al funds ’ balance sheet and in the governmental funds’ statement of revenues, expenditures, and changes in fund balances for the General Fund and the Local Transportation Fund, both of which are considered major funds. Data from the other five funds are combined in to a single aggregated pr esentation. Individual fund data for each of these nonm ajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appr opriated budget for the General Fund. A budgetar y comparison statement has been provided for the General Fund to demonstrate compliance to this budget. The basic governmental fund financial statements can be found on pages 32-35 of this report.

Proprietary funds. The City has two different types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report the same functions represented as business-type activities in the government- wide financial statement s. The City utilizes enterprise funds to account for those activities that are supported primarily by user charges to external users, and includes community sani tation, sewer dispos al, water, transit and planning and development services . Internal service funds are used to account for activities that are supported by user char ges primarily to the City’s other programs and activities and include employee benefits, general services, self-insurance and fleet services. Bec ause all these services predominantly b enefit governmental rather than business-type functions, they have been included within gove rnmental activ ities in the government-wide financial statements.

P
roprietary funds provide the same type of infor mation as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterpris e funds since they are all major funds . All the internal service funds are combined into a s ingle, aggregated pres entation in the fund financ ial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this repor t. The basic proprie tary fund financial statements can be found on pages 36-41 of this report.

Fiduciary funds. Fiduciary funds are used to account fo r resources held for the benefits of parties outside the c ity. Fiduciary funds are not reflected in the government-wide financial statements because the City cannot use these funds to finance its operations. The bas ic fiduciary fund financial statements can be found on pages 42-43 of this report.

Notes to the financial statements. The notes provide additiona l information that is essential to a full understanding of the data provided in the government-wide and fund statements. The notes to the financial statements can be found on pages 44-81 of this report.
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AGENDA ITEM NO. 18.

Government-wide Financial Analysis
Below is a table showing the City’s net position for the fiscal year ended June 30, 2025, with comparative data for the fiscal year ended June 30, 2024.

City of Clovis'
Net Position
Governmental
activities
Business-type
activities Total
2025 2024 2025 2024 2025 2024
Current and other assets 227,527,198$ 204,221,975$ 199,183,297$ 182,456,659$ 426,710,495$ 386,678,634$ Capital and intangible assets 769,814,230 733,488,241 288,151,533 287,182,814 1,057,965,763 1,020,671,055 Total assets 997,341,428 937,710,216 487,334,830 469,639,473 1,484,676,258 1,407,349,689 Deferred Outflows of Resources 32,408,266 38,297,623 8,203,420 10,301,502 40,611,686 48,599,125 Long-term liabilities outstanding 246,389,974 234,575,496 134,841,173 140,585,580 381,231,147 375,161,076 Other liabilities 15,912,849 16,032,482 17,849,852 17,174,543 33,762,701 33,207,025 Total liabilities 262,302,823 250,607,978 152,691,025 157,760,123 414,993,848 408,368,101 Deferred Inflows of Resources 1,532,688 2,866,503 3,119,958 3,818,342 4,652,646 6,684,845 Net Position:

Net investment in capital assets 747,004,253 707,385,881 205,554,846 197,511,336 952,559,099 904,897,217 Restricted 52,451,063 45,148,172 7,825 2,105 52,458,888 45,150,277 Unrestricted (33,541,133) (30,000,695) 134,164,596 120,849,069 100,623,463 90,848,374 Total net position 765,914,183$ 722,533,358$ 339,727,267$ 318,362,510$ 1,105,641,450$ 1,040,895,868$ As of June 30, 2025, the City’ s government-wide total assets and deferred outfl ows of
resources exceeded liabilities and deferred infl ows of resources (net position) by $1.11 billion. Governmental activities finished t he year with a positive ne t position balance of $766 million. Net position incr eased by $48 million as a result of current year operations, but was offset by a $5 million prior per iod adjustment, with a net increase of $43 million, or 6%, over 2024. Business-type activities finished the year with a positive balance of $340 million. Net position increased by $23 million as a result of current year operations, but was offset by a $2 million prior period adjustment, wit h a net increase of an increase of $21 million, or 6%, over 2024. Net position, as noted earlier, may serve over time as a useful indicator of the City’s health of financial position.

Of the total net position, $953 m illion, or 86%, is the City’s net investment in capital assets (e.g. land, buildings and im provements, machinery and equi pment and the road network) less any related debt used to acquire those asse ts that is still outstanding. The City’s investment in capital assets increased $48 m illion, restricted net position increased by $7 million and unrestricted net posit ion increased by $10 million, a ccounting for the increase in total net position of $65 million. This is primarily due to the City’s investment in the road network, buildings and related improvements, and machinery and equipment.

The majority of the City’s long-term liabilities re late to the City’s net pension liability and the debt related to the acquisition of capital assets. Some of th ose assets include the City’s corporation yard, fire stations , police vehicles and sewer and water infrastructure including the surface water treatment plant and the sewer treatment-water reuse facility. These capital assets are utilized to provide services to citiz ens and are not available for future spending.

The repayment of the debt on t hese assets must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. 19 379
AGENDA ITEM NO. 18.

Restricted net position is $52 million, which r epresents 5% of the total net position.

Restricted net position represents t hose resources that are subject to external restrictions on how they may be used. These restrictions are established by bond covenants or restrictions on the use of funds by state or federal regulations.

Unrestricted net position repres ents those resources which may be used to meet the City’s ongoing commitments to citizens and creditors. Go vernment-wide unrestricted net position is $101 million, or 9% of the total net position, whic h is a 6% increase from the previous year.

Governmental activities have a negative $(34) million unrestricted net position, which is a decrease of $4 million compared to last year. Business-type activities have $134 million in unrestricted net position, an increase of $13 million, or 11%, compared to last year.

Governmental activities. Governmental activities account for $766 million, or 69%, of the total Government-wide net position. This is an increase of $43 mill ion, or 6%, over June 30, 2024. Donated and constructed assets increased by $40 million while the amounts available for debt service, street and r oad construction and community development increased by $7 million. Addi tionally, the amount accumulated during the year for normal activities, unrestricted net position, decreased by $4 million. 20 380
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The following lists key components of this increase:

City of Clovis'
Changes in Net Position
Governmental
activities
Business-type
activities Total
2025 2024 2025 2024 2025 2024
Revenues:

Program revenues:

Charges for services $ 34,609,620 $ 34,300,015 $ 103,748,843 $ 88,034,447 $ 138,358,463 $ 122,334,462 Operating grants and contributions 10,658,002 5,007,289 8,771,444 7,987,902 19,429 ,446 12,995,191 Capital grants and contributions 42,187,897 34,127,517 6,983,183 2,769,840 49,171,08 0 36,897,357 General revenues:

Property taxes 41,744,457 39,288,942 41,744,457 39,288,942 Sales taxes 36,340,501 29,516,137 36,340,501 29,516,137 Franchise taxes 3,192,305 2,950,622 3,192,305 2,950,622 Transient occupancy taxes 5,385,574 5,400,999 5,385,574 5,400,999 Unrestricted investment earnings 10,332,376 8,115,077 8,872,166 5,876,145 19,204,5 42 13,991,222 Total revenues 184,450,732 158,706,598 128,375,636 104,668,334 312,826,368 263,374,93 2 Expenses:

General government 14,471,866 8,869,453 14,471,866 8,869,453 Public safety 86,853,724 79,683,221 86,853,724 79,683,221 Transportation 21,437,175 19,858,019 21,437,175 19,858,019 Community development 837,115 1,054,705 837,115 1,054,705 Cultural and recreation 11,154,079 10,292,672 11,154,079 10,292,672 Interest and other charges 546,718 617,657 546,718 617,657 Community Sanitation 28,993,326 26, 696,040 28,993,32 6 26,696,040 Sewer 23,088,010 22,316,767 23,088,010 22,316,767 Water 28,149,199 24,680,751 28,149,199 24,680,751 Transit 11,191,971 10,091,917 11,191,971 10,091,917 Planning & Development Services 14,049,788 13,748,338 14,049,788 13,748,338 Total expenses 135,300,677 120,375,727 105,472,294 97,533,813 240,772,971 217,909,5 40 Increase in net position before transfers 49,150,055 38,330,871 22,903,342 7,134,521 72,053,397 45,465,392 Transfers (500,000) (2,220,000) 500,000 2,220,000 0 0 Increase in net position 48,650,055 36,110,871 23,403,342 9,354,521 72,053,397 45,465,392 Net position-beginning 722,533,358 686,422,487 318,362,510 309,007,989 1,040,895,868 995,430,47 6 Prior period adjustments (Note V.F.) (5,269,230) (2,038,585) (7,307,815) 0 Net position - ending $ 765,914,183 $ 722,533,358 $ 339,727,267 $ 318,362,510 $ 1,105,641,450 $ 1,040,895,868 Total governmental revenues for the year were $184 million, which is $25 million, or 16%, more than in 2024. Most of this incr ease is a ttributable to developer capital contributions or donated assets, federal and stat e grant revenues, and taxes. Taxes, including property, sales, franchise, and transient occupancy, account for $87 million, or 47%, of the City’s governmental activities revenue and increased $10 million, or 12%, from 2024. Property taxes increased by $2 million due to increased assessed values related to new c onstruction, increased valuation base due to annexations and the statutory annual increase in taxes not to exceed 2%. Sales taxes increased by nearly $7 million primarily due to the new voter approved Measure Y tax revenue received in the last quarter of the fiscal year, along with population growth and the price increase of goods due to inflation. Additional information on Measure Y is available in the Supplementary Information section on pages 105-108. 21 381
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Total governmental expenses for the year were $135 million, an increas e of $15 million, or 12%, from 2024. Public Safety , which includes police and fire , accounts for $87 million, or 64%, of the total governmental activities’ ex penses. Public Safety expenses increased $7 million, or 9%, from 2024 primarily due to salary increases related to the police and fire departments. Community development expenses decreased from 2024 by $0.2 million or 20%. General government expenses increas ed from 2024 by $6 million or 63%.

Transportation expenses increased from 2024 or less than 1% from 2024. Cultural and Recreation expenses were $11 million, $0.8 million more when compared to 2024.

Expenses and Program Revenues-Governmental Activities
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
$65,000,000
$70,000,000
$75,000,000
$80,000,000
$85,000,000
$90,000,000
$95,000,000
General
Government
Public
Safety
Transportation Community
Development
Cultural
and Recreation
Expenses Program Revenues
Revenu
es by Source-Governmental Activities
charges for
serv ices
19%
operating grants
and contributions
6%
capital grants
and contributions
23%
property taxes
22%
business license &
franchise taxes
2%
sales tax es
20%
transient
occupancy taxes
3%
unrestricted
investment
earnings
5%
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Program revenues that include charges for services, and grants specific to certain programs were $87 million, or 48% of t he total governmental activity revenue. The largest change in program revenues, notably in General Government, is in operating grants and contributions by an increase of $5 million and in capital gr ants and contributions with an increase of $8 million, mostly in developer ca pital contributions. The amounts necessary to fully fund the governmental activity programs are made up of “general” revenues such as taxes, interest, and grants and contributions.

Business-type Activities. Business-type activities account for $340 million, or 31% of the total Government-wide net position. This is an increase of $22 m illion, or 7%, from June 30, 2024. The component, “Net Investment in Capital Assets” accounts for $206 million, or 61% of the total net position, and is an incr ease of $8 milli on from 2024. The amount of restricted net position represents less than 1% of the total net position. The amount of net position t hat is unrestricted, $134 million, or 39%, increased $13 million from 2024. Charges for services were $104 million, or 81% of the total business-type activity revenue, an increase from 2024. Grants and contri butions of $16 million represent $7 million in contributions of sewer and water mains fr om developers and $9 million in state transit funding.

Expenses and Program Revenues-Business-type Activities
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Community Sanitation Sewer Water Transit Planning &
Development Services
Expenses Program Revenues
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Revenues by Source-Business-type Activities
charges for
serv ices
81%
operating grants
and
contributions
7%
capital grants
and
contributions
5%
unrestricted
investment
earnings
7%

Included in charges for services are charges for utility services, permit fees, various development fees including fees relating to the construction of capital improvements for sewer disposal and water operations. The re venues generated by these development fees are normally accumulated until such time as t here are sufficient reserves to construct or acquire capital assets or to pay debt servic e on previously incurred debt. Debt service payments of principal are not considered a program expense and are, therefore, not reflected in this chart.

Financial Analysis of the City’s Funds

As noted earlier, the City uses fund accounti ng to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. Fund balance is defined in five ca tegories: nonspendable, restricted, committed, assigned and unassigned. Nonspe ndable fund balances cannot be spent because of their form. Rest ricted fund balance has limitatio ns imposed externally by creditors, grantors, contributors, or laws and regul ations of other governments. Committed fund balance has self-imposed lim itations set in place prior to the end of the period.

Assigned fund balance is the amount left available for appropriation at the City’s discretion within the fund’s purpose.

The City’s governmental funds ended the year with positive f und balances. The ending fund balance for all funds is $86 million, which is a $10 million increase from the previous year. Of the total fund balance, $8.2 million or 10% is una ssigned, which, within the limitations of the fund’s purpose, is available for spending at the City’s discretion. The remainder of the fund balance is not available for new spending because it is either in a form not able to be spent or has already been restricted, assigned or committed for the following: (in millions)

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Capital Projects $26.5
Community Development 14.8
Debt service 0.5
Landscape Maintenance 10.4
Parking and Business Improvement 0.2
Law Enforcement 0.1
Services materials and supplies 1.3
Capital Outlay 3.0
Emergencies 20.9

The General Fund is the chief oper ating fund of the City. As of June 30, 2025, the total fund balance (including all categories) of the general fund was $41. 2 million. The total fund balance of $41.2 million includes restricted balances of $10.8 mill ion, assigned balances of $22.2 million, and an unassigned bal ance of $8.2 million. The change in fund balance was primarily due to the increase in sales tax re venues attributable to the voter approved Measure Y collections in the la st quarter of the fiscal year al ong with expenditure savings in energy costs and salary and benefits.

The Local Transportation Fund, used to account for all street construction projects, incurred less than budgeted expenditures as a result of se veral large projects awarded towards the end of the fiscal year and limited staff resources. The ending fund balance of $26.4 million is $2.9 million more than June 30, 2024.

Proprietary funds. As indicated in the description of proprietary funds, there are two types of funds, Enterprise and Internal Service fu nds. The City’s enterprise funds ended the year with positive unrestricted net po sition except for the Transit Fund. This deficit balance is attributable to the liability of CalPERS pension funds and unearned revenues of $12.5 million.

The Transit Fund must defer revenues received and not yet spent to the following year. This pension liability is long-term in nature, not requiring current resources, and is not being funded at this time.

All the internal service funds finished with pos itive unrestricted net position. The current liability for workers’ compensation claims is $10.5 million. The City funds the current year workers’ compensation expendit ures with charges to City pr ograms. The City has also funded approximately $4.3 million of the accrued lia bility through charges to City programs in prior years. The balance of the liability is of a long-term nature, not requiring current resources, and therefore has not been funded.

General Fund Budgetary Highlights

Throughout the fiscal year it was necessary to adjust the original General Fund budget. The Statement of Revenues, Expenditures, and Chang e in Fund Balance-Budget to Actual, General Fund, on page 35 shows the original budget and final budget.

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The Variance with Final Budget within the same statement allows t he City to analyze and improve the upcoming fiscal year budget. Below is a summary of the primary variances:

Budgeted
Original
Budgeted
Final
Actual
Amounts
Final Budget
Variance Explanation
Revenues:

Sales Taxes 30,892,000 30,892,000 36,340,501 5,448,501 Variance due to an increase in sales tax revenues as a
result of a new voter approved sales tax measure.

Use of Money and
Property 546,000 546,000 1,234,592 688,592 Variance due to an increase in interest income collected due to higher yielding investments.

From Other Agencies 6,194,600 6,429,500 9,281,271 2,851,771 Variance mostly due to State reimbursement and
acquired grant funding.

Expenditures:

Public Utilities 15,251,337 15,251,337 14,115,715 1,135,622 Variance due to salary savings and a reduction of
service and supply usage.

Comparison of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund

Capital Assets and Debt Administration

Capital Assets. The City’s capital assets for its governmental and business-type activities as of June 30, 2025, amount to $1.05 billion (net of depreciation/amortization), an increase of $37 million over 2024. Capital assets include l and, buildings and improvements, right to use lease buildings, machinery and equipment, and r oad network and intangib le capacity rights for water and sewer.

Major capital asset additions this year include the following:

Land $ 24 million
Road network improvements and land acquisitions $ 12 million Intangibles $ 3 million

During the year the City made improvements to various streets and received developer donated infrastructure. The sewer system improv ements include the City’s share of capital projects for the Fresno-Clovis regional wastewater treatment plan t. Additional information on the City’s capital assets can be found in note IV.E on pages 62-64.

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CITY OF CLOVIS’
Capital Assets
(net of depreciation and amortization)
Governmental
activities
Business-type
activities Total
2025 2024 2025 2024 2025 2024
Land 321,900,889 $ 297,987,318 $ 40,776,635 $ 40,776,635 $ 362,677,524 $ 338,763,953 $ Buildings and improvements 114,188,471 116,083,788 211,932,256 211,173,387 326,120,727 327,257,175 Right to use lease buildings 9,692,504 10,041,534 9,692,504 10,041,534 Machinery and equipment 18,512,097 18,440,002 4,509,312 4,746,664 23,021,409 23,186,666 Right to use lease equipment 2,005,268 2,343,792 2,005,268 2,343,792 Road network 298,666,654 286,538,716 298,666,654 286,538,716 Intangibles 4,848,347 2,053,091 30,933,330 30,486,128 35,781,677 32,539,219 Total 769,814,230$ 733,488,241$ 288,151,533$ 287,182,814$ 1,057,965,763$ 1,020,671,055$

Long-term Debt . The City’s long-term debt as of June 30, 2025, wa s $103 million, with governmental activities accounting for $22 milli on, or 22%, and business-type activities accounting for $81 million, or 78%.

CITY OF CLOVIS'
Outstanding Bonds, Loans, Notes from Direct Borrowings and Contracts Governmental
activities
Business-type
activities Total
2025 2024 2025 2024 2025 2024
Loans payable 2,521,682$ 2,775,567$ 2,521,682$ 2,775,567$ Notes from direct borrowings 6,922,272 9,077,447 6,922,272 9,077,447 Revenue bonds 12,848,628 13,168,706 80,760,516$ 87,414,061$ 93,609,144 100,582,767 Total 22,292,582$ 25,021,720$ 80,760,516$ 87,414,061$ 103,053,098$ 112,435,781$

General obligation debt are direct obligations of the City and are backed by the full faith and credit of the City requiring vote r approval and may have a tax ra te set to cover repayment.

State statues limit the amount of general obligation debt to 15% of the City’s total assessed valuation. The City of Clovis’ debt limit is $2.0 b illion. The City currently has no general obligation debt outstanding. Deta iled information on the City’s long-term debt activity can be found in Note F. of the notes to the financial statements.

CITY OF CLOVIS'
Leases and Technology Subscriptions
Governmental
activities
Business-type
activities Total
2025 2024 2025 2024 2025 2024
Lease liability 995,532$ 577,017$ 995,532$ 577,017$ Subscription liability 3,403,244 1,102,730 9,210$ 117,070$ 3,412,454 1,219,800 Total 4,398,776$ 1,679,747$ 9,210$ 117,070$ 4,407,986$ 1,796,817$ The City has recognized lease liabilities and subscription-based IT arrangements (SBITAs) in accordance with GASB Statement s No. 87 and 96. These obligat ions represent long-term commitments for leased assets and cloud-based software services. As of June 30, 2025, the City reported $1 million in lease liabilities and $3 million in SBITA liabilities. These arrangements are not funded through bond proc eeds and are typically budgeted annually through operating funds.

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Economic Factors and Next Year’s Budgets and Rates

The City continues to monitor national economic trends and the State of California’s budget closely, as both have direct implications fo r Clovis. During the budget development process for the 2025/26 fiscal year, the City was able to increase general fund expenditures by $4 million, or 4% compared to t he estimated 2024/25 expenditures. This growth reflects the addition of new staff positions, cost-of-living adjustments to salaries, rising employee benefit costs, and general inflationary pressures affecting the cost of services and supplies.

While the City’s unemployment rate is current ly considered low at 5.3%, the U.S. has experienced historically high infl ation over the last several year s. This continues to be a concern for the City in the next budget year. The increase in prices is putting further pressure on households and shifts househol d dollars away from discret ionary spending which could have a significant impact on the City’s sales taxe s as a larger portion of income goes to essentials such as food, transportation and housin g costs. High inflati on has originated from a mismatch between total demand and supply in the economy, largely as a result of constraints from the pandemic and an aggressive fiscal and monetary policy response.

The Federal Reserve began reducing interest rates in the second half of 2024 after a prolonged period of tight ening. The federal funds rate dropped from 5.5% in mid-2023 to

4.0% by October 2025, as inflat ion showed signs of sustained m oderation. While this shift in monetary policy has helped ease some financial pr essures, the City remains cautious about the potential for continued economic volatility and its impact on municipal revenues.

Clovis’ long-term strategy of building a dive rse and resilient economy remains essential in navigating this uncertainty. T he City’s ability to attract high- quality businesses, employees, and residents continues to serve as a stabilizi ng force. Additionally, Clovis is adapting to structural changes in the econom y, including the rise of non- taxable digital services and delivery-based commerce, which are reducing reli ance on traditional br ick-and-mortar retail.

These trends are being addressed through the G eneral Plan Update and initiatives like the Shaw Avenue Revitalization Strategy.

On June 30, 2025, the General Fund has an assi gned fund balance of $20.9 million, or

18.1% of 2024/25 budgeted expenditures set aside for unforeseen emergencies. The City continues to monitor the impacts of inflation and interest rates on the economy and the City’s budget and will continue to adjust its strategies to address those impacts.

The Council determined that it was necessa ry for the Community Sanitation Fund to implement a rate increase of 4% for the green waste, recycling and organics programs, the refuse collection and disposal program and t he street sweeping prog ram for the 2025/26 fiscal year. Furthermore, the Council determined that a 3% increase was necessary for the Water Fund. The Sewer Fund wil l had a 3% rate increase and the full $7.30 bond surcharge will continue to be fully rebated.

Requests for Information

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City of Clovis’ finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Finance Director, City of Clovis, 1033 Fifth Street, Clovis, CA, 93612.
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Primary Government
Governmental Business-typ e
Activities Activities Total
ASSETS
Cash and investments 222,106,779$ 157,276,123$ 379,382,902$ Receivables 9,962,752 14,214,041 24,176,793 Internal balances (24,095,351) 24,095,351
Due from other governments 18,453,539 3,589,957 22,043,496 Inventories 1,082,000 1,082,000
Restricted assets:

Cash and investments 17,479 7,825 25,304 Capital assets:

Capital assets, not being depreciated 321,900,889 40,776,635 362,677,524 Capital assets (net of accumulated depreciation) 443,064,994 216,441,568 659,506,562 Intangible assets (net of accumulated amortization) 4,848,347 30,933,330 35,781,677 Total assets 997,341,428 487,334,830 1,484,676,258

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 32,408,266 8,203,420 40,611,686 32,408,266 8,203,420 40,611,686

LIABILITIES
Accounts payable 9,246,707 4,901,705 14,148,412 Accrued payroll 3,913,326 3,913,326
Unearned revenue 2,752,816 12,948,147 15,700,963 Long-term liabilities:

Due within one year 64,776,047 14,147,263 78,923,310 Due in more than one year 181,613,927 120,693,910 302,307,837 Total liabilities 262,302,823 152,691,025 414,993,848

DEFERRED INFLOWS OF RESOURCE
S
Lease related deferred inflows 58,457 1,139,986 1,198,443 Pension related deferred inflows 1,474,231 153,011 1,627,242 Deferred gain on bond refunding 1,826,961 1,826,961 1,532,688 3,119,958 4,652,646

NET POSITION
Net investment in capital assets 747,004,253 205,554,846 952,559,099 Restricted for:

Debt service 473,917 7,825 481,742 Streets and roads 26,454,240 26,454,240
Community development 15,135,678 15,135,678
Landscape maintenance 10,387,228 10,387,228
Unrestricted (deficit) (33,541,133) 134,164,596 100,623,463 Total net position 765,914,183$ 339,727,267$ 1,105,641,450$ The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Net Position
June 30, 2025
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Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contri butions Activities Activities Total Function/Programs
Primary government:

Governmental activities:

General government 14,471,866 $ 11,443,752 $ 198,875 $ (2,829,239) $ (2,829,239) $ Public safety 86,853,724 1,937,327 5,407,544 1,068,831 $ (78,440,022) (78,440,022) Transportation 21,437,175 17,322,425 40,368,007 36,253,257 36,253,257 Community development 837,115 7,500 4,952,522 324,359 4,447,266 4,447,266 Cultural and recreation 11,154,079 3,898,616 99,061 426,700 (6,729,702) (6,729,702) Interest and other charges 546,718 (546,718) (546,718) Total governmental activities 135,300,677 34,609,620 10,658,002 42,187,897 (47,845,158) 0 (47,845,158) Business-type activities:

Community sanitation 28,993,326 29,452,989 459,663 $ 459,663 Sewer disposal 23,088,010 23,742,966 987,733 1,642,689 1,642,689 Water 28,149,199 34,194,451 5,995,450 12,040,702 12,040,702 Transit 11,191,971 2,790,889 8,703,432 302,350 302,350 Planning & Development Services 14,049,788 13,567,548 68,012 (414,228) (414,228) Total business-type activities 105,472,294 103,748,843 8,771,444 6,983,183 0 14,031,176 14,031,176 Total primary government 240,772,971 $ 138,358,463 $ 19,429,446 $ 49,171,080 $ (47,845,158) 14,031,176 (33,813,982) General revenues:

Property taxes 41,744,457 41,744,457
Sales taxes 36,340,501 36,340,501
Franchise taxes 3,192,305 3,192,305
Transient occupancy taxes 5,385,574 5,385,574
Unrestricted investment earnings (losses) 10,332,376 8,872,166 19,204,542 Transfers (500,000) 500,000 0
Total general revenues and transfers 96,495,213 9,372,166 105,867,379 Changes in net position 48,650,055 23,403,342 72,053,397 Net position-beginning 722,533,358 318,362,510 1,040,895,868 Prior period adjustments (Note V.F.) (5,269,230) (2,038,585) (7,307,815) Net position-ending 765,914,183 $ 339,727,267 $ 1,105,641,450 $ The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Activities
For the Year Ended June 30, 2025
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Other Total
Local Governmental Governmental
General Transportation Funds Funds
ASSETS
Cash and investments 31,089,326 $ 80,580,905 $ 14,573,498 $ 126,243,729 $ Cash with agents-restricted 17,100 17,100 Receivables 4,332,437 359,794 4,819,509 9,511,740 Due from other governments 12,292,634 5,982,003 178,902 18,453,539 Total assets 47,714,397 $ 86,939,802 $ 19,571,909 $ 154,226,108 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 1,314,405 $ 3,000,689 $ 1,253,064 $ 5,568,158 $ Accrued payroll 3,913,327 3,913,327
Due to other governments 27,866 282,509 310,375 Deposits and other liabilities 638,229 55,140,666 34,259 55,813,154 Unearned revenue 613,637 2,139,179 2,752,816 Total liabilities 6,507,464 60,563,043 1,287,323 68,357,830 Fund balances:

Restricted for:

Capital projects 26,376,759 77,481 26,454,240 Community development 32,752 14,763,567 14,796,319 Debt service 473,538 473,538
Landscape maintenance 10,387,228 10,387,228
Parking and business improvement 245,778 245,778 Law enforcement 93,581 93,581
Assigned for:

Services, materials and supplies 1,304,700 1,304,700 Capital 2,970,000 2,970,000
Emergencies 20,970,000 20,970,000
Unassigned, reported in:

General fund 8,172,894 8,172,894
Total fund balances 41,206,933 26,376,759 18,284,586 85,868,278 Total liabilities and fund balances 47,714,397$ 86,939,802$ 19,571,909$

Reconciliation of the Governmental Fund Balances to the Governmental Activities Net Position Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. (Net of $118,174,169 of internal service fund capital assets) 651,640,061 Internal service funds are used by management to charge the costs of fleet management, employee benefits, liability and property insurance and general services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. (Net of $18,845,351 allocated to business-type activities) 144,176,484 Long-term liabilities, including compensated absences, and net pension liability, are not due and payable in the current period and therefore are not reported in the funds. (115,770,640) Net Position of Governmental Activities 765,914,183 $
The notes to the financial statements are an integral part of this statement.

Major Funds
City of Clovis
Balance Sheet
Governmental Funds
June 30, 2025
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AGENDA ITEM NO. 18.

Other Total
Local Governmental Governmental
General Transportation Funds Funds

REVENUES
Property taxes 41,744,457 $ 41,744,457 $
Sales taxes 36,340,501 36,340,501
Business license & Franchise taxes 7,902,136 7,902,136 Transient occupancy taxes 5,385,574 5,385,574
Licenses and permits 1,370,624 1,370,624
Fines and forfeitures 225,318 225,318
Use of money and property 1,234,592 4,041,731 $ 664,092 $ 5,940,415 From other agencies 9,281,271 19,560,409 1,104,505 29,946,185 Charges for services 8,458,340 785,400 2,611,983 11,855,723 Other revenues 7,374,744 7,374,744
Total revenue 119,317,557 24,387,540 4,380,580 148,085,677

EXPENDITURES
Current:

General government 11,373,386 11,373,386
Public safety 85,717,682 85,717,682
Transportation 6,241,804 6,241,804
Community development 34 843,610 843,644 Cultural and recreation 11,253,707 11,253,707
Capital outlays 21,410,420 632,477 22,042,897 Total expenditures 114,586,613 21,410,420 1,476,087 137,473,120 Excess (deficiency) of revenues
over (under) expenditures 4,730,944 2,977,120 2,904,493 10,612,557

OTHER FINANCING SOURCES (USES)
Transfers in 1,192,000 1,192,000
Transfers out (1,475,000) (29,000) (150,000) (1,654,000) Total other financing sources (uses) (1,475,000) (29,000) 1,042,000 (462,000) Net change in fund balances 3,255,944 2,948,120 3,946,493 10,150,557 Fund balances-beginning 37,950,989 23,428,639 14,338,093 75,717,721 Fund balances-ending 41,206,933 $ 26,376,759 $ 18,284,586 $ 85,868,278 $ The notes to the financial statements are an integral part of this statement.

Major Funds
City of Clovis
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
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Amounts reported for governmental activities in the statement of activities (page 31) are different because:

Net change in fund balances-total governmental funds (page 33) 10,150,557 $ Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which depreciation/amortization exceeded capital outlays in the current period. 6,742,380 The net effect of donations and miscellaneous transactions involving capital assets (i.e., sales and trade-ins) is to increase net position. 31,671,730 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 governmental funds. (7,305,844)
Internal service funds are used by management to charge the costs of fleet maintenance, employee benefits, liability and property insurance and general services to individual funds.

The net revenue of certain activities of internal service funds is reported with governmental activities. Net of $2,820,537 allocated to business-type activities. 7,391,232 Change in net position of governmental activities (page 31) 48,650,055 $ The notes to the financial statements are an integral part of this statement.

City of Clovis
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds To the Government-Wide Statement of Activities
For the Year Ended June 30, 2025
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AGENDA ITEM NO. 18.

Variance with
Budgeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negative)

REVENUE
Property taxes 42,044,000 $ 42,044,000 $ 41,744,457 $ (299,543) $ Sales taxes 30,892,000 30,892,000 36,340,501 5,448,501 Business license & Franchise taxes 8,155,000 8,155,000 7,902,136 (252,864) Transient occupancy taxes 5,411,000 5,411,000 5,385,574 (25,426) Licenses and permits 1,354,000 1,354,000 1,370,624 16,624 Fines and forfeitures 199,000 199,000 225,318 26,318 Use of money and property 546,000 546,000 1,234,592 688,592 From other agencies 6,194,600 6,429,500 9,281,271 2,851,771 Charges for services 8,181,800 8,464,800 8,458,340 (6,460) Other revenues 7,446,000 7,585,000 7,374,744 (210,256) Total revenues 110,423,400 111,080,300 119,317,557 8,237,257

EXPENDITURES
Council 563,500 619,100 608,497 10,603 Clerk 458,100 458,100 410,657 47,443 Attorney 1,123,900 2,889,488 2,781,226 108,262 Manager 2,668,300 2,711,100 2,562,576 148,524 General services 4,882,500 5,015,500 4,574,450 441,050 Finance/Treasurer 4,099,382 4,111,382 3,815,807 295,575 Police 59,152,139 59,624,839 59,624,024 815 F
ire 24,683,504 26,094,004 26,093,661 343
Public ut
ilities 15,251,337 15,251,337 14,115,715 1,135,622 Total expenditures 112,882,662 116,774,850 114,586,613 2,188,237 Excess (deficiency) of revenues
over expenditures (2,459,262) (5,694,550) 4,730,944 10,425,494

OTHER FINANCING SOURCES (USES)
Transfers In 135,000 (135,000)
Transfers Out (1,475,000) (1,475,000) (1,475,000) Total other financing sources (uses) (1,475,000) (1,340,000) (1,475,000) (135,000) Net change in fund balance (3,934,262) (7,034,550) 3,255,944 10,290,494 Fund balance-beginning 37,950,989 37,950,989 37,950,989 Fund balance-ending 34,016,727$ 30,
916,439$ 41,206,933$ 10,290,494$
The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual General Fund
For the Year Ended June 30, 2025
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Business-Type Activities-Enterprise Funds
Governmental
Planning & Activities
Community Sewe r Development Internal
Sanitation Disposal Wate r Services Transit Totals Service Funds ASSETS
Current assets:

Cash and investments 16,494,954$ 44,244,292$ 69,693,924$ 17,163,174$ 9,679,779$ 157,276,123$ 95,863,050 $ Receivables 4,996,689 3,887,875 5,230,281 66,125 33,071 14,214,041 451,012 Due from other governments 86,000 11,208 3,492,749 3,589,957 0 Inventories 0 1,082,000
Advances to other funds 5,250,000 5,250,000 0
Total current assets 21,491,643 48,132,167 80,260,205 17,240,507 13,205,599 180,330,121 97,396,062 Noncurrent assets:

Cash with fiscal agent-bond accounts 6,790 1,035 7,825 379 Total restricted assets 0 6,790 1,035 0 0 7,825 379
Capital assets:

Land 19,076,813 5,041,119 16,658,703 40,776,635 8,734,466 Buildings and improvements 9,939,421 180,275,921 149,635,712 339,851,054 142,234,482 Machinery and equipment 3,321,457 886,367 2,126,587 130,517 9,135,626 15,600,554 65,160,815 Less accumulated depreciation (4,853,895) (72,983,682) (54,934,469) (97,918) (6,140,076) (139,010,040) (99,517,121) Total capital assets (net of
accumulated depreciation) 27,483,796 113,219,725 113,486,533 32,599 2,995,550 257,218,203 116,612,642 Intangible assets: 45,039,649 16,118,786 316,673 61,475,108 2,512,581 Less accumulated amortization (26,174,207) (4,109,468) (258,103) (30,541,778) (951,054) Total intangible assets (net of
accumulated amortization) 18,865,442 12,009,318 58,570 30,933,330 1,561,527 Total noncurrent assets 27,483,796 132,091,957 125,496,886 32,599 3,054,120 288,159,358 118,174,548 Total assets 48,975,439 180,224,124 205,757,091 17,273,106 16,259,719 468,489,479 215,570,610

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 2,185,842 596,947 1,594,055 2,448,977 1,377,599 8,203,420 1,857,676 Total deferred outflows of resources 2,185,842 596,947 1,594,055 2,448,977 1,377,599 8,203,420 1,857,676 Major Enterprise Funds
City of Clovis
Statement of Net Position
Proprietary Funds
June 30, 2025
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Business-Type Activities-Enterprise Funds
Governmental
Planning & Activities
Community Sewe r Development Internal
Sanitation Disposal Wate r Services Transit Totals Service Funds Major Enterprise Funds

LIABILITIES
Current liabilities:

Accounts payable 725,515 2,640,969 1,226,031 266,434 40,784 4,899,733 3,368,173 Claims and judgments payable 0 2,548,000
Due to other governments 1,972 1,972
Accrued compensated absences 153,500 44,700 116,400 137,700 51,500 503,800 122,900 Deposits and other liabilities 2,800 2,413,368 4,112,854 6,529,022 833,054 Unearned revenue 224,682 212,490 12,510,975 12,948,147 0 Lease liability-current 0 187,049
Subscription liability-current 4,441 4,441 517,395 Direct borrowings-currrent 0 1,903,590
Loans payable-current 0 327,979
Revenue bonds-current 4,585,000 2,525,000 7,110,000 310,000 Contracts payable-current 0
Total current liabilities 1,106,497 7,270,669 6,280,799 4,729,478 12,609,672 31,997,115 10,118,140 Noncurrent liabilities:

Claims and judgments payable 0 8,013,000
Accrued compensated absences 958,530 278,996 726,937 860,320 321,433 3,146,216 767,519 Advances from other funds 0 5,250,000
Direct borrowings 0 5,018,682
Loans payable 0 2,193,703
Lease liability 0 471,285
Subscription liability 4,769 4,769 0
Revenue bonds (net of discount/premium) 67,825,982 5,824,534 73,650,516 12,538,628 Contracts payable 0
Landfill closure 6,085,840 6,085,840
Net pension liability 9,692,720 2,250,607 7,008,819 12,878,031 5,976,392 37,806,569 9,943,139 Total noncurrent liabilities 16,737,090 70,355,585 13,560,290 13,738,351 6,302,594 120,693,910 44,195,956 Total liabilities 17,843,587 77,626,254 19,841,089 18,467,829 18,912,266 152,691,025 54,314,096

DEFERRED INFLOWS OF RESOURCES
Lease related deferred inflows 549,170 590,816 1,139,986 58,457 Pension related deferred inflows 50,303 12,789 32,848 26,344 30,727 153,011 33,898 Deferred gain on bond refunding, net 1,379,640 447,321 1,826,961 Total deferred inflows of resources 50,303 1,941,599 1,070,985 26,344 30,727 3,119,958 92,355

NET POSITION
Net investment in capital assets 27,483,796 58,294,545 116,698,996 32,599 3,044,910 205,554,846 95,364,192 Restricted for debt service 6,790 1,035 7,8 25 379 Unrestricted (deficit) 5,783,595 42,951,883 69,739,041 1,195,311 (4,350,585) 115,319,245 67,657,264 Total net position $33,267,391 101,253,218$ 186,439,072 $ 1,227,910$ (1,305,675)$ 320,881,916 163,021,835$ Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds. 18,845,351 Net position of business-type activities 339,727,267$
The notes to the financial statements are an integral part of this statement. 37 397
AGENDA ITEM NO. 18.

Business-Type Activities-Enterprise Funds
Governmental
Planning & Activities
Community Sewer Development Internal
Sanitation Disposal Water Services Transit Totals Service Funds Operating revenues:

Charges for services 27,503,066 $ 23,148,253 $ 32,535,194 $ 13,320,589 $ 65,913 $ 96,573,015$ 81,316,088 $ From other agencies 300,952 19,460 68,012 2,264,309 2,652,733 153,339 Other revenues 160,299 371,767 105,062 637,128 3,080,757 Legal settlement 1,133,439 1,133,439
Total operating revenues 27,964,317 23,520,020 33,793,155 13,388,601 2,330,222 100,996,315 84,550,184 Operating expenses:

Salaries and benefits 8,606,212 2,152,039 5,834,232 8,960,110 5,966,107 31,518,700 28,561,654 Services, materials and supplies 15,635,870 9,829,897 14,331,359 2,497,939 2,580,327 44,875,392 39,978,818 Administration 4,385,300 3,286,800 4,026,133 2,579,500 1,872,700 16,150,433 2,281,400 Depreciation/amortization 365,944 5,402,635 3,427,915 12,239 772,837 9,981,570 8,198,371 Total operating expenses 28,993,326 20,671,371 27,619,639 14,049,788 11,191,971 102,526,095 79,020,243 Operating income (loss) (1,029,009) 2,848,649 6,173,516 (661,187) (8,861,749) (1,529,780) 5,529,941 Nonoperating revenues (expenses):

Interest income 563,071 1,511,358 3,146,449 570,877 235,635 6,027,390 3,081,512 Net increase (decrease) in cash fair value 324,448 855,240 1,227,068 317,081 120,939 2,844,776 1,433,942 Interest expense (2,416,639) (529,560) (2,946,199) (546,718) State transit funding 8,703,432 8,703,432
Gain (loss) on sale of capital assets 0 (25,876)
Total nonoperating revenue (expense) 887,519 (50,041) 3,843,957 887,958 9,060,006 14,629,399 3,942,860 Income (loss) before contributions and transfers (141,490) 2,798,608 10,017,473 226,771 198,257 13,099,619 9,472,801 Capital contributions 987,733 5,995,450 6,983,183 776,971 Transfers in 150,000 350,000 500,000 125,000 Transfer out 0 (163,000)
Changes in net position 8,510 3,786,341 16,012,923 576,771 198,257 20,582,802 10,211,772 Total net position-beginning 33,871,780 97,682,624 170,947,644 1,152,600 (1,316,949) 302,337,699 153,297,830 Prior period adjustments (Note V.F.) (612,899) (215,747) (521,495) (501,461) (186,983) (2,038,585) (487,767) Total net position-ending 33,267,391$ 101,253,218 $ 186,439,072$ 1,227,910$ (1,305,675)$ 320,881,916 $ 163,021,835 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 2,820,540 Change in net position of business-type activities (page 31) 23,403,342$ The notes to t
he financial statements are an integral part of this statement.

Major Enterprise Funds
City of Clovis
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
38 398
AGENDA ITEM NO. 18.
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is page is intentionally left blank)
39 399
AGENDA ITEM NO. 18.

Business-Type Activities-Enterprise Funds
Governmental
Planning & Activities-
Community Sewer Development Internal
Sanitation Disposal Water Services Transit Totals Service Funds

CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users 27,107,838 $ 23,152,728 $ 32,299,645 $ 13,269,489 $ 193,273 $ 96,022,973 $ Receipts for interfund services 81,434,101$
Payments to suppliers (19,640,101) (12,356,618) (18,616,980) (5,216,740) (4,426,262) (60,256,701) (40,381,679) Payments to employees (8,271,920) (2,114,358) (5,686,353) (8,659,573) (5,783,707) (30,515,911) (28,179,801) Other operating revenues 492,962 (371,309) 895,770.00 97,753 2,223,041 3,338,217 3,167,526 Net cash provided by (used in) operating activities (311,221) 8,310,443 8,892,082 (509,071) (7,793,655) 8,588,578 16,040,147

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers-in from other funds 150,000 350,000 500,000 125,000 Repayment of advances to other funds 750,000 750,000 Transportation funding-State 8,703,432 8,703,432 Net cash provided by (used in) noncapital financing activities 150,000 0 750,000 350,000 8,703,432 9,953,432 125,000

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (170,268) (1,374,036) (1,728,195) (694,608) (3,967,107) (5,204,061) Principal paid on bonds, loans, and direct borrowings (3,540,000) (2,410,000) (107,860) (6,057,860) (3,416,970) Interest paid on bonds, loans, and direct borrowings (2,416,639) (529,560) (2,946,199) (546,718) Proceeds from sale of property and equipment 0 64,323
Principal paid on advances from other funds 0 (750,000) Net cash provided by (used in) capital and related financing activities (170,268.00) (7,330,675) (4,667,755.00) 0 (802,468.00) (12,971,166) (9,853,426)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 563,071 1,511,358 3,146,449 570,877 235,631 6,027,386 3,081,512
Increase/(decrease) in fair value of investments 324,448 855,240 1,227,068 317,081 120,939 2,844,776 1,433,942 Net cash provided by (used in) investing activities 887,519 2,366,598 4,373,517 887,958 356,570 8,872,162 4,515,454 Net change in cash and cash equivalents 556,030 3,346,366 9,347,844 728,887 463,879 14,443,006 10,827,175 Cash and cash equivalents-beginning of year 15,938,924 40,904,716 60,347,115 16,434,287 9,215,900 142,840,942 85,036,254 Cash and cash equivalents-end of year 16,494,954$ 44,251,082$ 69,694,959$ 17,163,174$ 9,679,779$ 157,283,948$ 95,863,429$ Major Enterprise Funds
City of Clovis
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
40 400
AGENDA ITEM NO. 18.

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:

Operating income (loss) (1,029,009) $ 2,848,649 $ 6,173,516 $ (661,187) $ (8,861,749) $ (1,529,780) $ 5,529,941 $ Adjustments to reconcile operating income
to net cash provided by (used in) operating activities:

Depreciation/amortization expense 365,944 5,402,635 3,427,915 12,239 772,837 9,981,570 8,198,371 Amortization bond premium (583,690) (119,855) (703,545) (20,078) Landfill closure expense 385,300 385,300
(Increase)/decrease in receivables (125,973) 4,475 (235,549) 14,473 101,812 (240,762) 118,013 (Increase)/decrease in due from other governments 31,712 11,350 (7,916) 29,738 (37,215) 27,669 11,964 (Increase)/decrease in inventories 0 (123,000)
(Increase)/decrease in pension related deferred outflows 562,426 122,966 393,918 676,629 342,143 2,098,082 569,083 Increase/(decrease) in accounts payable (4,631) 760,081 153,439 52,993 26,767 988,649 553,540 Increase/(decrease) in claims and judgments payable 0 1,348,000 Increase/(decrease) in due to other governments (4,055) (4,055) Increase/(decrease) in accrued compensated absences 28,501 (22,595) (56,965) (19,645) (205) (70,909) 73,574 Increase/(decrease) in deposits and other liabilities 400 (412,926) (192,291) (604,817) 100,000 Increase/(decrease) in unearned revenue (269,255) (65,573) 25,548 (309,280) Increase/(decrease) in net pension liability (183,316) (44,734) (134,918) (254,351) (113,842) (731,161) (186,103) Increase/(decrease) in lease related deferred inflows (30,509) (61,265) (91,774) (58,457) Increase/(decrease) in pension related deferred inflows (73,320) (17,956) (54,156) (102,096) (45,696) (293,224) (74,701) Increase/(decrease) in deferred gain on bond refunding (140,229) (173,156) (313,385) Total adjustments 717,788 5,461,794 2,718,566 152,116 1,068,094 10,118,358 10,510,206 Net cash provided by (used in) operating activities (311,221) 8,310,443 8,892,082 (509,071) (7,793,655) 8,588,578 16,040,147 Noncash investing, capital, and financing activities:

During the year the Sewer Disposal Fund, an enterprise fund, received $987,733 in donated assets.

During the year the Water Fund, an enterprise fund, received $5,995,450 in donated assets.

The notes to the financial statements are an integral part of this statement. 41 401
AGENDA ITEM NO. 18.

Redevelopment
Successor
Agency Private-
Purpose Trust
Fund
Custodial
Funds
ASSETS
Cash and investments 1,053,568$ 158,929$
Cash with agent-restricted 1,075,862
Receivables 856 1,596
Prepaid items 119,814
Capital assets (net of accumulated depreciation) 10,518,469 Total assets 12,768,569 160,525

LIABILITIES
Accounts payable 145,731 24,664
Deposits and other liabilities
Tax allocation bonds payable 7,563,720
Total liabilities 7,709,451 24,664

NET POSITION
Restricted for:

Held in trust for Redevelopment Successor Agency Fund 5,059,118 Individuals, organizations, and other governments 135,861 Total net position 5,059,118$ 135,861$
The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
42 402
AGENDA ITEM NO. 18.

Redevelopment
Successor
Agency Private-
Purpose Trust
Fund
Custodial
Funds

ADDITIONS
Property taxes 1,426,103$
Special assessment tax 95,891$
Interest (779) 7,084
Total additions 1,425,324 102,975

DEDUCTIONS
Services, materials and supplies 10,000
Administration 10,000
Depreciation/amortization 75,563
Interest and other fiscal charges 383,641
Community development 119,911
Total deductions 479,204 119,911
Net increase (decrease) in fiduciary net position 946,120 (16,936) Net position-beginning 4,112,998 152,797
Net position-ending 5,059,118$ 135,861$
The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2025
43 403
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

I. Summary of Significant Account Policies

A. Financial Reporting Entity

The City of Clovis, California (City) was incorporated on February 27, 1912 as a general law city of the State of California, and as such can exercise the powers specified by the constitution and laws of the State of California.

The City is governed by an elected five-member City Council under the administration of an appointed City Manager. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended components units, although legally separate entities, are, in substance, part of the government’s operations.

1. Blended Component Units

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the Ci ty and the component unit; management of the City has operational responsibilities for the component unit; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly.

The Clovis Municipal Development Corporation (Corporation) was established by the Clovis City Council in January 1985 to handle the City’s and the Clovis Communi ty Development Agency’s development of property.

There were no assets, liabilities, equity or activity to report for the current or prior fiscal years.

The Clovis Public Financing Authority (Authority) was es tablished by the Clovis City Council in July 1991 to facilitate the issuance of the City’s debt. There were no assets, liabilities, equity or other activity to report for the current or prior fiscal years.

2. Fiduciary Activities

The City presents its fiduciary activity information for as sessing its accountability and financial reporting of the City in their role as fiduciaries. The definition of a “f iduciary” is a person or organization that acts on behalf of another person or persons to manage assets. Fiduciary resp onsibility refers to the obligation that one party has in relationship with another one to act entirely on the other party’s behalf and best interest. It is considered to be the standard of highest care.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the stat ement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its components units. The effects of interfund activity have been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function of a segment. Program revenues include 1) charges to cust omers 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 that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included am ong program revenues are reported instead as general revenues.

44 404
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Separate fina
ncial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide fi nancial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measur
ement Focus, Basis of Accounting, and Financial Statement Presentation The basic financial statements of the City have been p repared in conformity with accounting principles generally accepted of the United Stat es of America (U.S. GAAP) as ap plied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted st andard setting body for establishing governmental accounting and financial reporting.

The government-wide, proprietary fund, and fiduciary fund financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurr ed, regardless of the timing of related cash flows.

Property taxes are recognized as revenue in the year fo r which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned, and they are both measurable and available. Revenues are consider ed to be available when they are collectible within the current period or soon enough thereafter to pay liabilit ies of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, under accrual accounting. However, debt service principal and interest expenditures on general long -term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, postemployment benefits and environmental obligations are recognized later based on sp ecific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions , including entering into contracts giving the City the right to use lease assets, are reported as expenditures in governmental funds. Issuance of long -term debt and financing through leases are reported as other financing sources.

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 period.

All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

General Fund – This is used as the main operating governmental fund of the City to account for general revenues of the City not specifically levied or collected for other City funds and the related expenditures.

The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund. The General Fund accounts for activity related to Measure Y, which is tracked separately within the General Fund for transparency and reporting purposes, but not presented separately.

Local Transportation Fund – This fund accounts for the City's share of Transportation Development Act (SB 325) funds allocated by the State that are restri cted to expenditures for capital street improvements and maintenance and for the deposits by developers for special street improvement projects.

The City reports the following major proprietary funds:

Community Sanitation Fund – This fund accounts for all financial transactions relating to the City’s refuse collection and disposal operations, landfill operations and street sweeping operations.

Sewer Disposal Fund – This fund accounts for all financial transactions relating to the City’s sanitary sewer system operations.
45 405
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Water Fund – This fund accounts for all financial transactions relating to the City’s water production and distribution operations.

Planning and Development Services Fund – This fund accounts for all financial transactions related to the City’s engineering operations.

Transit Fund – This fund accounts for all financial transactions related to the City’s transit operations.

Additionally, the City reports the following fund types:

Internal Service Funds - These funds account for general liabilit y and property damage insurance, fleet management services, retirement, workers’ compensation, and health, unemployment and Medicare insurance, facility maintenance and enhancement, telecommunication and information technology, and other general services provided to other departments or agencies of the City on cost reimbursement bases.

Custodial Funds – These funds account for assets held by the City for, certain special assessments collected and distributed on behalf of the districts.

Private-Purpose Trust Funds – These funds are used to account for the assets of the former Clovis Community Development Agency during the wind down period.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The exception to this general rule is payments-in-lieu of taxes. Eliminat ion of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributi ons, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the community sanitation enterprise fund, of the se wer enterprise fund, of the water enterprise fund and of the City's internal service funds are charges to customers for sales and services. The sewer enterprise fund and the water enterprise fund also recognize as operating revenue the portion of developer fees intended to recover the cost of connecting new customers to the system. Operati ng expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciat ion on capital assets: All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are avail able for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance

1. Cash and Investments

The City maintains a cash and investment pool that is available for use by all funds. This pool utilizes investments authorized by the Governm ent Code and is further defined by the City's investment policy that is reviewed annually by the City Council.

Highly liquid market investments with maturities of 1 year or less at the time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for the securities for which market quotations are readily available.
46 406
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Authori
zed investments include deposits in the State of California administered Local Agency Investment Fund, insured certificates of deposits, coll ateralized certificates of deposits, commercial paper, bankers acceptances, medium term notes, money market mutual funds and securities backed by the U.S. Government. All investments are stated at fair value.

Interest income earned as a result of pooling is distributed to the appropriate funds based on month end cash balances in each fund. Interest income from ca sh and investments with fiscal agents and deferred compensation is credited directly to the related fund.

For purposes of the statement of cash flows, the City considers short-term and highly liquid investments with original maturities of 3 months or less, (including restricted assets) to be cash and cash equivalents.

The City invests its excess cash principally in U.S. Government Securities, U.S. Treasuries and the State of California Local Agency Investment Fund (LAIF). Invest ments in the LAIF are available for withdrawal on demand.

The City is also required to deposit funds with fiscal agents under the provisions of revenue bonds, contracts and/or lease agreements. These funds ar e invested by the fiscal agent in instruments generally more restrictive than the City's investment policy.

U.S. GAAP defines fair values, est ablishes a framework for measuring fa ir value and estab lishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded fair value in the Statement of Net Position/Balance Sheet, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

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

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

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

2. Receivables
Billed but un
paid services provided to individuals or non- governmental entities are re corded as "receivables." Services provided to other governmental entities are recorded as "due from other governments." The City's utility enterprise funds include an estimated amount for services rendered but not yet billed as of June 30, 2025, determined by prorating the July 2025 bi-monthly billing.

The City has not experienced any material write-off of receivables; and therefore, an "allowance for bad debts" is not included on the City's balance sheet or statement of net position.

3. Interfun
d Receivables/Payables
Duri
ng the course of operations, interfund receivables and payables transactions arise. These receivables and payables are classified as "due from other funds" or "due to other funds" on the fund financial statements. On the government-wide statement of net position, the "internal balances" represents the amounts receivable/payable between business-type activities and governmental activities. All other interfund transactions have been eliminated on the statement of net position.
47 407
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

4. Inventorie
s
Inventories, consisting of fuel and vehicle parts, are valued at cost.

5. Capital As
sets/Intangible Assets
Capital assets, which include property, plant, equipment, ri ght to use and infrastructure assets (roadways), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000, and an estimated useful life of at least three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated a ssets are recorded at estimated acquisition value at the date donated. Intangible assets are valued at historical cost.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Intangible assets include the purchase of sewer capacity ri ghts and water entitlement rights. The City purchased sewer capacity rights from the City of Fresno at the Fresno Regional Wastewater Treatment Plant. The total amount of $44,824,154 is reported in the City’s Sewer Disposal Enterprise Fund. The City purchased water entitlement rights from the Fresno I rrigation District for surface water. The total amount of $16,118,786 reported in the City’s Water Enterprise Fund.

Donated assets include developer donated land as well as improvements on the land including streets, curbs and gutters, sidewalks, street lighting and landscaping. Included in the total amount of capital grants and contributions on the government-wide statement of activities is $39,431,884 of developer donated assets.

Property, plant and equipment of the primary government is depreciated over the estimated useful lives using the straight-line method, half-year convention. Estimated useful lives are as follows:

Distribution Systems 50 years
R
oadways 50
Buildings 20-40
Vehicles 5-20
Right to use 5-35
Other Equipment 3-10
Amortizatio
n of intangibles is computed over 40 years using the straight-line method, half-year convention. As the life of the rights have a life of 40 years.

6. Compens
ated Absences
Employees earn vacation, sick leave, and other compensa ted absences in accordance with City policies. A liability for compensated absences is recognized when the leave is attributable to services already rendered, the leave accumulates and is more likely than not to be used for time off or paid out. The liability is measured using the pay rates expected to be paid when the leave is taken or otherwise settled.

The governmental activities liability is reported in the st atement of net position, while amounts are recognized in governmental funds only when due and pay able. Proprietary funds record the expense and liability as benefits accrue. The City’s policies generally permit employees to accumulate unused vacation and a portion of unused sick leave up to specified limits. Upon separation from service, employees are compensated for accumulated vacation and eligible sick leave in accordance with those policies.

7. Long-Term Liabilities
In the gove
rnment-wide financial statements, and prop rietary fund types in the fund financial statements, long-term liabilities and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary f und type statement of net pos ition. Bond premiums and 48 408
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

discou
nts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are repo rted as other financing sources while discounts not withheld from the actual debt proceeds received are reported as debt service expenditures. Discounts withheld from the debt proceeds are reported as other financing uses.

8. Unear
ned Revenue
For the Government-wide Financial Statements, u nearned revenue is recognized in connection with a transaction before the earnings process is completed.

For the governmental fund financial st atements, unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, unearned revenues are removed from the balance sheet and revenue is recognized.

9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Plan investments are reported at fair value.

The following timeframes are used for pension plan reporting:

C
a l P E R S
Val
uation Date June 30, 2023
Meas
urement Date June 30, 2024
Meas
urement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

10. Fund Bal
ances
Fund balances, presented in the governmental fund financial statements, represent a resource for future periods that is the difference between assets and liabilities reported in a government fund. Fund balance of governmental funds is reported in various categories based on the nature of any limitat ions requiring the use of resources for specific purposes. The City evaluated each of its funds at June 30, 2025 and classified fund balances into the following five categories:

Non-spendable - amounts that cannot be spent becaus e they are not in spendable form, such as prepaid items, inventories and long-term receivables for which the payment of proceed s are not restricted or committed with respect to the nature of the specific expenditure of that fund. 49 409
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Re
stricted – amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

Committed – amounts that have been committed by formal ac tion by the entity’s “highest level of decision- making authority.” Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

Assigned – amounts that have been allocated by the City action where the government’s intent is to use the funds for a specific purpose. Assi gned fund balance is established by City Council through adoption or amendment of the budget as intended for specific purpose.

Unassigned – amounts that have not been restricted, committed, or assigned.

The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other t han the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

The City will spend the funds restricted for their purpose within those funds first followed by assigned funds for their intended purposes prior to spending any unassigned fund s. The City Council has established a target of a minimum unassigned fund balance for any operational fund is 10% of the budgeted expenditures with the goal for unassigned fund balance of up to 15% of budgeted ex penditures unless capital borrowing or extraordinary fiscal conditions require higher levels of unassigned fund balance be maintained.

The local transportation fund is the City’s only major capital project fund. This fund accounts for the capital street projects paid for out of the City's share of Transpor tation Development Act (SB 325) funds allocated by the state, 1/2 cent sales tax for transp ortation, Special Gas Tax Select Street funds, and federal funding sources under the Federal Intermodel Surface Transportation E fficiency Act. In addition, funds are transferred from the Developer Trust Fund as reimbursements are made for developer-financed projects.

11. Net Position
In the gove
rnment-wide financial statements and proprietary fund financial statements, net position is classified as follows:

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

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

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of re sources that are not incl uded in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
50 410
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

12. Use of Estimates
The preparation of financial statements in c onformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and di sclosures. Accordingly, actual results could differ from those estimates.

13. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recogniz ed as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this categor y. It is the deferred charge on refunding reported in the government-wide statement of net position, and deferred amo unts related to pens ion. The deferred charge on refunding resulted from the difference between the carryin g value of refunded debt and its reacquisition price.

This amount is deferred and amortized ov er the shorte r of the life of the refunded or refunding debt. The deferred amounts related to pension relate differences between estimated and actual inv estment earnings, changes in actuarial assumptions, and other pension related changes.

In addition to liabilities, the statement of financial positi on includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of res ources (revenue) until that time. The City has three items that qualify for reporting in this category: deferred inflows related to leases, pension, and deferred gain on bond refunding. Deferred lease inflows arise from lease arrang ements where the City is the les sor and reflect the recognition of lease revenue over the term of the le ase. Deferred pension inflows inc lude differences between expected and actual experience, changes in assumptions , and projected versus actual investment earnings, which are recognized systematically over time. The def erred gain on bond refunding results from the difference between the carrying amount of the old debt and its reacqui sition price, and is amortized over the remaining life of the refunded or refunding debt, whichever is shorter.

14. Leases
Lessee: The City has a policy to recognize a le ase liability and a right -to-use lease as set (lease as set) in the government-wide financial s tatements. The City recognizes leas e liabilities with an initial, individual value of $10,000 or more.

At the commencement of a lease, the Ci ty initially measures the lease liab ility at the present v alue of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially me asured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.

Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include ho w the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the le ssor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the non-cancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Lease assets are reported as right to use along with other capital assets and lease li abilities are reported with long-term debt on the statement of net position.
51 411
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Lesso
r: The City is a lessor for a leases of a building and land at four locations. The City recognizes a lease receivable and a deferred inflows of resources in both the government-wide and fund financial statements.

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

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the non-cancellable period of the lease. Lease receipts includ ed in the measurement
of the lease receivable is composed of fixed payments from the lessee.

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

15. Subscrip
tion Based Information Technology Arrangements (SBITA)
The Cit
y has a policy to recognize a subscription liability and a right -to-use subscription asset (subscription asset) in the government -wide financial statements and proprietary fund financial statements. The City recognizes subscription liabilities with an initial, individual value of $10,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as ou tflows of resources (expenses) in the period the obligation for those payments is incurred.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term . Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to t he SBITA vendor before the commencement of the subscription term, and capitalizab le initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

Costs associated with a SBITA, other than the subscription payments, are accounted for as follows:
 Preliminary Project Stage: Outlays are expensed as incurred.  Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.  Operation and Additional Implementation Stage: Outlays are expensed as incurred unless they meet specific capitalization
criteria.

Upo
n adoption, the City elected to exclude the capitalizab le outlays associated with the initial implementation stage and the operation and additional implementation stage t hat were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

Subscription assets are reported in capital assets and sub scrip tion liabilities are reported with long-term liabilities on the statement of net position.

Subscription assets are amortized using the straight-line method over the shor ter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subs cription asset is amortized over the useful life of the underlying IT asset.
52 412
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Key e
stimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to pres ent value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBI TA vendor as the discount rate. When the intere st rate ch
arged by the SBITA vendor is not provided, the City generally uses its estimated increme ntal borro
wing rate as the discount rate for SBITA.

The subscription term includes the non-cancel lable period of the SBITA. Subscription paym ents inclu
ded in the measurement of the subscription lia bility are composed of fixed payments and purch ase option pri
ce that the City is reasonably certain to exercise.

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

16. Imple
mentation of New GASB Pronouncements
The requi
rements of the following ac counting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, in cluding necessary retroactive adjustments to financial statement classifications and presentations.

Implementation of New GASB Pronouncements for the Year Ended June 30, 2025:

GASB Statement No. 101
In J
une 2022, GASB issued Statement No. 101, Compensated Absences. The obj ective of this Statement is to better meet the information needs of financial statem ent users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain prev iously required disclosures. Application of this statement is effective for The City’s fiscal year ending June 30, 2025.

GASB Statement No. 102
In December
2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraint s which may limit a government's ability to acquire resources or control spending. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

Upcoming Governmental Accounting Standards Implementation:

GASB Statement No. 103
In December
2023, GASB issued Statement No. Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision maki ng and assessing a government’s accountability.

Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104
In Septembe
r 2024, GASB issued Stat ement No. 104, Disclosure of Cert ain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right- to-use assets recognized in accordance with Statement No. 94, should be disclosed separately by major class 53 413
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

of underl
ying asset in the capital assets note disclosures . Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. Application of this statem ent is effective for the City’s fiscal year ending June 30, 2026.

II. Reconciliation of Government-Wide and Fund Financial Statements A. Explanati on of Certain Differences Between the Governmental Fund Balance Sheet and the Gover
nment-Wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net position-governmental activities as reported in the government-wid e statement of net position. One element of that reconciliati on explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reporte d in the funds.” The details of this ($115,770,640) difference are as follows:

Pension related items of $101,773,220
(net of $9,943,139 reported in Internal Service Funds) 101,773,220$ Accrued compensated absences of $10,774,373
(net of $890,419 reported in Internal Service Funds) 10,774,373 Accrued SBITA of $2,885,849
(net of $517,395 reported in Internal Service Funds) 2,885,849 Accrued Leases of $337,198
(net of $658,334 reported in Internal Service Funds) 337,198 Net adjustment to reduce fund balance-total governmental funds to arrive at net position-governmental activities 115,770,640$ B. Explanati
on of Certain Differences Between the Governmental Fund Statement of Reve nues, Expenditu
res, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances-total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.”
The details of this $6,742,380 difference are as follows:

Capital Outlay 22,042,897$
Depreciation/amortization expense (net of $8,198,372 reported in Internal Service Funds) (15,300,517) Net adjustment to decrease net changes in fund balance-total governmental funds to arrive at changes in net position-governmental activities 6,742,380$ Another el
ement of that reconciliation states that “The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net position.” Donated capital assets increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources.
54 414
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

The detail
s of this $22,042,897 difference are as follows:

General government capital asset additions 59,921,578$
Internal service fund capital asset additions (5,429,980) Donated capital asset additions (32,448,701)
Net capital outlay 22,042,897$
Another
element of that reconciliation states that “Some expenses reported in the st atement of activities do not require the use of current financial resources and theref ore are not reported as expenditures in governmental funds.” The details of this $7,305,844 difference are as follows:

Pension related items (Net of $308,278 reported in Internal Service Funds) 2,330,158$ Compensated absences (Net of $561,341 reported in Internal Service Funds) 3,544,870 SBITA related items (Net of $588,692 reported in Internal Service Funds) 1,093,618 Lease related items (Net of $114,174 reported in Internal Service Funds) 337,198 Net adjustment to decrease net changes in fund balance-total governmental funds to arrive at changes in net position-governmental activities 7,305,844$ III. Stewardship, Compliance, and Accountability
A. Budgetary Information
Annual budgets are adopted on a basis consistent with ge nerally acc epted accounting prin ciples f or all governmental funds. All annual appropriations lapse at fiscal year-end.

On or before the second week of March of eac h ye ar, all departments of the City submit request for appropriations to the City Manager so that a budget ma y be prepared. On or before the third Monday in May , the proposed budget is presented to the City council fo r review. The council holds public hearings and a final budget must be adopted no later than June 30.

The appropriated budget is prepared by fund and depa rtment. The City Manager may make transfers of appropriations between departments within a specific fund of up to $5,000 and up to $2,500 from any established reserves. Transfers in exce ss of those amounts require council ac tion. No action is required at any level lower than the department level. The legal level of budgetary control is the department level. During the year, supplementary appropriations approved by the council were necessary for some departments.

B. Deficit Fund Equity
Government-Wide Financial Statements
At June 30, 2025, deficit unrestric ted net position was reported for governm ental activities in the amount of $(33,541,133). The deficit is the result of reporting net pension liabilities of $140,826,616 in the government-wide financial stat ements. City management believe s the pres ent cash aggregate position of the Gen eral Fund is adequate to meet current needs.

Proprietary Funds
The Transit Fund has a deficit net position of $(1,305,675) as of June 30, 2025. The deficit is the result of reporting net pension liabilities of $5,976,392 in the proprietary fund financial statements. City management believes the present cash aggregate position of the Transit Fund is adequate to meet current needs. 55 415
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

IV. Detailed Notes on All Funds
A. Cas
h and Investments
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Primary Government:

Cash and investments 379,382,902$
Cash and investments - restricted 25,304
Fiduciary funds:

Cash and investments 1,212,497
Cash and investments with agent - restricted 1,075,862
Total cash and investments 381,696,565$
Fair val
ue of cash and investments based on quoted market prices . The City categorizes its fair value measurements within the fair value hierarchy establishe d by GASB Statement No. 72 Fair Value Measurement and Application. This hierarchy recognizes three tiers, outlined as follows:
 Level 1: Investments reflect prices quoted in active markets;  Level 2: Investments reflect prices that are base d on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and,  Level 3: Investments reflect prices based upon unobservable sources.

The table
below presents the fair value measurem ents of investments recogn ized in the accompanying statements of net position at June 30, 2025:

Fair Measurement
Value Input
Cash on hand 9,385 $ N/A
Deposit with financial institution 8,060,946
Investments:

Money Market Funds 35,184,563 N/A
Certificates of Deposit 28,000,000 N/A
Municipal Securities 60,084,332 N/A
Corporate Securities 70,073,902 N/A
U.S. Agency Securities 119,242,114 Level 2
Local Agency Investment Fund (LAIF) 59,940,157 N/A
Held by Bond Trustee:

Money Market Funds 1,101,166 N/A
Total 381,696,565$
Inve
stment securities classified in Level 2 of the fair value hierarchy are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

Investments Authorized by the California Govern ment Code and the City’s Investment Policy. The table below identifies the investment types that are authorized for the City by the Ca lifornia Government Code (or the City of Clovis investment policy, where more restrictive). The t able also identifies certain pr ovisions of the California Government Code (or the City Investm ent Policy, where more restrictive) t hat address interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City investment policy. 56 416
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Maximum Maximum
Per
centage Investment
Maximum of Portfolio or One Issuer
Authorized Investment Type Maturity or Amount* or Amount U.S. Treasury Obligations 3 years None None
U.S. Agency Securities 3 years None None
Bankers Acceptances 180 days 30% 30%
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 3 years 30% Legal Limit Repurchase Agreements 1 year None None
Medium-Term Notes 3 years 30% None
Qualified Mutual Funds N/A $2,000,000 $2,000,000
Money Market Accounts N/A $10,000,000 $10,000,000
Local Agency Investment Fund (LAIF) N/A None None
*
Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.

Investments Authorized by Debt Agreements. Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment ty pes that are authorized for investments held by bond trustee. The table also identifies certain pr ovisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Disclosures Relating to Interest Rate Risk. I nterest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally , the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market in terest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow a nd liquidity needed for operations. The City monitors the interest rate risk inherent in its por tfolio by measuring the weighted average maturity of its portfolio. The City investment policy states that no investment can have a maturity in excess of three years unless approved by the City Manager.

Maximum M aximum
M
aximum Percentage Investment
Authorized Investment Type Maturity of Portfolio or One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Bankers Acceptances 180 days 30% 30%
Commercial Paper 270 days 15% 10%
Qualified Mutual Funds N/A None None
Money Market Accounts N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations. The City’s investments do not include any investments that are highly sensitive to interest rate fluctuatio ns (to a greater degree than already indicated in the information provided above).

Disclosures Relating to Credit Risk. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the in vestment. 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, or debt agreements, and the actual rating as of year-end for each investment type.
57 417
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Weighted Average
Investment Type Amount Maturity (in years)
Money Market Funds 35,184,563 $ N/A
Municipal Securities 60,084,332 2.91
Certificates of Deposit 28,000,000 1.69
Corporate Securities 70,073,902 4.69
U.S. Agency Securities 119,242,114 2.52
Local Agency Investment Fund (LAIF) 59,940,157 N/A Held by Bond Trustee:

Money Market Funds 1,101,166 N/A
Total 373,626,234$
Con
centration of Credit Risk. The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Govern ment Code. Investments in any one issuer (other than U.S. Treas ury securities and external investment pools) that represent 5% or more of total City of Clovis’ investments are as follows:

Reported Per cent of
Is
suer Investment Type Amount Total Invested
Federal Farm Credit Banks Federal Agency Securities 31,700,000$ 8.47% Federal Home Loan Banks Federal Agency Securities 78,595,000 21.03% 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 recove r its deposits or will not be able to recover collateral securities that are in the possession of an outside party. T he custodial credit risk for investments is the risk that, in the event of the failure of the brok er or dealer to a transa ction, a government will not be able to recover the value of its investments 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 requi rements that would limit the exposure to custodial credit risk for deposits or inve stments, other than the following provisions 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 a depository regulated under state law (unless so waived by the governmental unit) . The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2025, no City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. In addition, as of June 30, 2025, no investments were held by the same broker dealer (counterparty) that was used by the City to purchase the securities. 58 418
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

D
isclosures Relating to Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of year-end, the average life-month end maturity of the investments contained in the LAIF investment pool is approximately 260.

Investment in State Investment Pool. The City’s investments with Local Agency Investment Fund (LAIF) at June 30, 2025 included a portion of the pooled f unds invested in Structured Notes and Assets-Backed Securities. These investments included the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO’s) or credit card receivables.

California Local Agency Investment Fund (LAIF) – The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $59,940,157 invested in LAIF, which had invested 2.02% of the pool investment funds in Structured Notes and Medium-term Asset-Backed Securities and 1.79% of pool investment funds in Short-term Asset-Backed Commercial Paper. LAIF determines fair va lue on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

The fair value of the City’s position in the LAIF pool is the same as the value of the pool shares.

The Pooled Money Investment Board provides oversight to the State Treasurer’s pooled investment program. The purpose of the board is to design and administer an effective cash management and investment program, using all monies flowing through the State Treasurer’s Office bank accounts and keeping all available funds invested in a manner consistent with the goals of safety, liquidity, and yield. The Pooled Money Investment Board is comprised of the State Treasurer as chair, the State Controller, and the Director of Finance. The investment program is not registered with the Securities and Exchange Commission as an investment company.

The State Treasurer’s Office reports its investments at fair value. The fair value of securities in the State Treasurer’s pooled investment program generally is based on quoted market prices. The value of the deposits in the State Treasurer’s pooled investment program, including the Local Agency Investment Fund, is equal to the dollars deposited in the program.

Certain funds have elected to participate in the pooled investment program even though they have the authority to make their own investments. Others may be required by legislation to participate in the program; as a result, the deposits of these funds or accounts may be considered involuntary. However, these funds or accounts are part of the State’s reporting entity. The remaining participation in the pool, the Local Agency Investment Fund, is voluntary.

B. Property Taxes
Secu
red property taxes become a lien on the property as of January 1 and are levied in two equal installments:
the first due November 1 and delinquent on December 11, and the second due February 1 and delinquent April 11. Property taxes on unsecured property ar e due on the lien date of March 1 and become delinquent on September 1. The County of Fresno is responsible fo r the assessment, collection and apportionment for all jurisdictions within the County, including the City.
59 419
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

C. Rec
eivables
Receivables as of June 30, 2025 for the City’s individual major funds and non-major, internal service, and fiduciary funds in the aggregate, are as follows:

Total Internal
L
ocal Nonmajor Governmental Service Fiduciary
General Transportation Funds Funds Funds Funds
Interest 49,298$ 167,568$ 38,095$ 254,962$ 194,134$ 1,133$ Taxes 927,425 6,104 933,529 1,319
Loans 8,227 4,775,309 4,783,536 47,148
Accounts 3,355,714 183,998 3,539,713 142,825 Leases 66,905
4,332,437$ 359,794$ 4,819,509$ 9,511,740$ 451,012$ 2,452$ Planning & Total
Community Sewer Development Proprietary
Sanitation Disposal Water Services Transit Funds
Interest 33,745$ 89,118$ 137,711$ 34,431$ 24,845$ 319,850$ Loans 33,736 326,325 360,061
Accounts 4,962,944 3,110,693 4,073,864 31,694 8,226 12,187,421 Leases 654,328 692,381 1,346,709
4,996,689$ 3,887,875$ 5,230,281$ 66,125$ 33,071$ 14,214,041$ Lease receivables consists of agreements with cellular network companies and Pacific Gas & Electric for the right to use land at various locations throughout the City . The terms of these arrangements range from 6 to 23 years and the interest rate on these is calculated at the City’s fiscal year 2024 borrowing rate of 3.032%. This is the All-in True Interest Cost rate derived from the Ci ty’s most recent bond issuance from fiscal year 2024. The City records any outstanding annual lease income as a deferred inflow on the government-wide financial statements.

The annual payments to be received for the lease receivables outstanding at June 30, 2025, are as follows:

Year ending June 30, Principal Interest Total
2026 135,230$ 34,987$ 170,217$
2027 72,797 31,640 104,437
2028 77,492 29,838 107,330
2029 87,236 27,920 115,156
2030 41,541 25,761 67,302
2031-2035 272,868 111,398 384,266
2036-2040 402,955 71,378 474,333
2041-2043 323,495 16,237 339,732
Total 1,413,614$ 349,159$ 1,762,773$
Lease Receivables
60 420
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

D. Interfund
Receivables, Payables and Transfers
Intrafund balances for the purpose of the government -wide financial statements have been eliminated. The composition of interfund balances in the fund level statements for the year ended June 30, 2025, is as follows:

Interfund transfers:

Transfers In Transfers Out Purpose Amount
Community Sanitation Fund Nonmajor Governmental Fund Development capital cost 150,000$ Nonmajor Governmental Fund Local Transportation Fund Capital projects 29,000 Nonmajor Governmental Fund General Fund Affordable home projects 1,000,000 Nonmajor Governmental Fund Internal Service Fund Asset transfer 163,000 Internal Service Fund General Fund Capital projects 125,000 Planning & Development Services Fund General Fund Operating costs 350,000 Total transfers 1,817,000$
Interfund receiva
bles/payables:

Total
Advances To Advances From Purpose Amount
Internal Service Fund Water Fund Advance for capital project 5,250,000 $ Year ending June 30, Principal Interest Total
2026 750,000 750,000
2027 750,000 750,000
2028 750,000 750,000
2029 750,000 750,000
2030 750,000 750,000
2031-2032 1,500,000 1,500,000
Total 5,250,000$ -$ 5,250,000$

Advances
61 421
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

E. Capital As
sets and Intangible Assets
Summary of cha
nges in capital and intangible assets for the year ended June 30, 2025 was as follows:

Beginning Retirements/ Ending
Balance Additions Adjustments Balance
Government activities:

Capital assets, not being depreciated:

Land 297,987,318$ 23,905,671$ 7,900$ 321,900,889$ Capital assets, being depreciated:

Buildings and improvements 177,427,317 2,728,239 (7,900) 180,147,656 Direct borrowing buildings 17,879,458 399,160 18,278,618 Machinery and equipment 58,482,619 3,385,502 (1,736,680) 60,131,441 Direct borrowing equipment 8,458,716 225,984 8,684,700 Road network 471,940,830 25,143,496 497,084,326 Total capital assets being depreciated 734,188,940 31,882,381 (1,744,580) 764,326,741 Less accumulated depreciation for
Buildings and improvements (61,343,529) (4,615,656) (65,959,185) Direct borrowing buildings (7,837,924) (748,190) (8,586,114) Machinery and equipment (40,042,617) (3,216,707) 1,639,980 (41,619,344) Direct borrowing equipment (6,114,924) (564,508) (6,679,432) Road network (185,402,114) (13,015,558) (198,417,672) Total accumulated depreciation (300,741,108) (22,160,619) 1,639,980 (321,261,747) Total capital assets,
being depreciated, net 433,447,832 9,721,762 (104,600) 443,064,994 Intangible assets, being amortized:

Software 102,380 102,380
Subscription assets 1,685,838 3,508,382 5,194,220 Lease assets 682,237 625,144 1,307,381
Total intangible assets being amortized 2,470,455 4,133,526 6,603,981 Less accumulated amortization for
Software (30,714) (20,475) (51,189)
Subscription assets (337,919) (1,149,405) (1,487,324) Lease assets (48,731) (168,390) (217,121)
Total accumulated amortization (417,364) (1,338,270) (1,755,634) Total intangible assets,
being amortized, net 2,053,091 2,795,256 4,848,347 G
overnmental activities
capital assets, net 733,488,241$ 36,422,689$ (96,700)$ 769,814,230$ 62 422
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Beginning Ending
Balance Additions Retirements Balance
Business-type activities:

Capital assets, not being depreciated:

Land 40,776,635$ 40,776,635$
Capital assets, being depreciated:

Buildings and improvements 331,892,070 7,958,984$ 339,851,054 Machinery and equipment 14,835,259 765,295 15,600,554 Total capital assets being depreciated 346,727,329 8,724,279 355,451,608 Less accumulated depreciation for
Buildings and improvements (120,718,683) (7,200,115) (127,918,798) Machinery and equipment (10,088,595) (1,002,647) (11,091,242) Total accumulated depreciation (130,807,278) (8,202,762) (139,010,040) Total capital assets,
being depreciated, net 215,920,051 521,517 216,441,568 Intangible assets, being amortized:

Water and sewer rights 58,932,424 2,226,011 61,158,435 Subscription assets 316,673 316,673
Total intangible assets being amortized 59,249,097 2,226,011 61,475,108 Less accumulated amortization for
Water and sewer rights (28,608,107) (1,675,568) (30,283,675) Subscription assets (154,862) (103,241) (258,103) Total accumulated amortization (28,762,969) (1,778,809) (30,541,778) Total intangible assets
being amortized, net 30,486,128 447,202 30,933,330 Business-type activities
capital assets, net 287,182,814$ 968,719$ 0$ 288,151,533$ 63 423
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Dep
reciation/amortization expense was charged to functions as follows:

Governmental activities depreciation/amortization:

General government 685,645$
Public safety 165,309
Transportation 13,091,729
Community Development 58,506
Cultural and recreation 1,299,328
Capital assets held by the government’s internal service funds are charged to the various functions based on their usage of the asset 8,198,372 Total governmental activities depreciation/amortization expense 23,498,889$ Business-type activities depreciation/amortization:

Community Sanitation 365,945$
Sewer Disposal 5,402,635
Water 3,427,915
Planning & Development Services 12,239
Transit 772,837
Total business-type activities depreciation/amortization expense 9,981,571$ Donated assets to governmental activities consisted of $32,448,701 of which the majority is donated to the City by developers for streets. Donated assets to business- type activities consisted of $6,983,183, which represents sewer and water infrastructure donated by developers.

Fiduciary Funds Capital Assets
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:

Land 9,087,336$ 9,087,336$
Capital assets, being depreciated:

Buildings and improvements 2,687,521 2,687,521
Total capital assets being depreciated 2,687,521 2,687,521 Less accumulated depreciation for
Buildings and improvements (1,180,825) (75,563)$ (1,256,388) Total accumulated depreciation (1,180,825) (75,563) (1,256,388) Total capital assets,
being depreciated, net 1,506,696 (75,563) 1,431,133 Fiduciary funds
capital assets, net 10,594,032$ (75,563)$ 0 $
10,518,469$
Dep
reciation expense for the year ended June 30, 2025 was $75,563. 64 424
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

F. Long-Term Liabilities
Summary of changes in long-term liabilities for the year ended June 30, 2025 was as follows:

Balance Balance Due in Due in more
7/1/2024 Additions Reductions 6/30/2025 One Year than One Year Governmental Activities:

Revenue bonds 12,640,000$ 0 $ (300,000)$ 12,340,000$ 310,000$ 12,030,000$ Less deferred amounts:
(Discounts)/premiums 528,706 (20,078) 508,628 508,628 Total bonds payable 13,168,706 0 (320,078) 12,848,628 310,000 12,538,628 Loans payable 2,775,567 (253,885) 2,521,682 327,979 2,193,703 Direct borrowings 9,077,447 (2,155,175) 6,922,272 1,903,590 5,018,682 Deposits & other liabilities 51,468,028 9,108,741 (3,930,561) 56,646,208 56,646,208 Claims and judgments 9,213,000 6,569,273 (5,221,273) 10,561,000 2,548,000 8,013,000 Lease liability 577,017 625,144 (206,629) 995,532 262,812 732,720 Subscription liability 1,102,730 3,475,642 (1,175,128) 3,403,244 1,167,658 2,235,586 Compensated absences 5,606,190 8,792,001 (2,733,399) 11,664,792 1,609,800 10,054,992 Net pension liability 141,586,813 (760,197) 140,826,616 140,826,616 Total governmental
activities 234,575,498$ 28,570,801 $ (16,756,325)$ 246,389,974$ 64,776,047$ 181,613,927$ Balance Balance Due in Due in more
7/1/2024 Additions Reductions 6/30/2025 One Year than One Year Business-Type Activities:

Revenue bonds 79,260,000$ 0 $ (5,950,000)$ 73,310,000$ 7,110,000$ 66,200,000$ Less deferred amounts:
(Discounts)/premiums 8,154,061 (703,545) 7,450,516 7,450,516 Total bonds payable 87,414,061 0 (6,653,545) 80,760,516 7,110,000 73,650,516 Landfill closure 5,700,540 385,300 6,085,840 6,085,840 Compensated absences 1,682,340 3,270,679 (1,303,003) 3,650,016 503,800 3,146,216 Subscription liability 117,070 (107,860) 9,210 4,441 4,769 Deposits & other liabilities 7,133,839 2,284,670 (2,889,487) 6,529,022 6,529,022 Net pension liability 38,537,730 (731,161) 37,806,569 37,806,569 Total business-type
activities 140,585,580$ 5,940,649 $ (11,685,056)$ 134,841,173$ 14,147,263$ 120,693,910$ Classification
Classification
Interna
l service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental ac tivities. At year end $890,419 of internal service funds compensated absences are included in the above amoun ts. Included in deposits and other liabilities in governmental activities are $55,140,666 in developer funded deposits related to streets and $1,505,542 in miscellaneous deposits. Business-type activities include utility customer deposits of $2,107,135 and miscellaneous deposits and other liabilities of $4,421,887. For the gove rnmental activities, accrued compensated absences are generally liquidated by the gener al fund. In addition, in prior years th e employee benefit fund has be used to liquidate pension liabilities.
65 425
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Governmental Activitie
s Long-Term Debt

1. Revenue Bonds
The City issues revenue bonds to provide funds for the acquisition and construction of major capital facilities.

The current bond outstanding has a maturity of 30 years.

Revenue bonds at June 30, 2025, consisted of the following:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2021 landmark square 13,355,000$ 2.50%-4.00% 2051 12,340,000$ Total revenue bonds 12,340,000 $
Balance Balance Due in Due in more
7/1/2024 Additions Reductions 6/30/2025 One Year than One Year 2021 landmark square 12,640,000$ 0$ (300,000) $ 12,340,000$ 310,000$ 12,030,000$ Total revenue bonds 12,640,000$ 0$ (300,000) $ 12,340,000$ 310,000$ 12,030,000$ Classification
The annual d
ebt service requirements for the revenue bonds outstanding at June 30, 2025, are as follows:

Year ending June 30, Principal Interest Total
2026 310,000$ 342,500$ 652,500$
2027 325,000 329,797 654,797
2028 335,000 316,600 651,600
2029 350,000 302,900 652,900
2030 365,000 288,600 653,600
2031-2035 2,045,000 1,224,700 3,269,700
2036-2040 2,345,000 918,326 3,263,326
2041-2045 2,640,000 618,689 3,258,689
2046-2050 2,980,000 270,376 3,250,376
2051 645,000 8,062 653,062
Total 12,340,000$ 4,620,550$ 16,960,550$
Revenue Bonds
66 426
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

2. Loans Pay
able
The City issues loans to provide funds for improvements at va rious City buildings. The loans have maturities ranging from 6 to 16 years. Loans payable at June 30, 2025, are as follows:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2011 energy loan payable 466,715$ 3.00% 2026 83,691 $ 2019 energy loan payable 1,741,854 1.00% 2035 1,189,957 2020 energy loan payable 157,550 0.00% 2030 75,349 2020 energy loan payable 195,011 0.00% 2026 41,055 2024 energy loan payable 1,131,630 1.00% 2037 1,131,630 Total loans payable 2,521,682$
The annual debt service requirements for the loans payable outstanding at June 30, 2025, are as follows:

Governmental Activities
Year ending June 30, Principal Interest Total
2026 327,979$ 35,613$ 363,592$
2027 236,760 20,724 257,484
2028 228,552 18,668 247,220
2029 230,728 16,491 247,219
2030 226,025 14,343 240,368
2031-2035 1,115,140 38,760 1,153,900 2036-2037 156,498 1,657 158,155
Total 2,521,682$ 146,256$ 2,667,938$
Loans Payable
The followi
ng is an analysis of the assets acquired with the proceeds as of June 30, 2025:

Buildings and improvements 3,521,408$
Less accumulated depreciation (1,134,604)
Total 2,386,804$
67 427
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

3. Note
s from Direct Borrowings
The City issues notes from direct borrowings to provide funds for the acquisition of public safety vehicles and governmental buildings. The maturity dates may range fr om 9 to 21 years. The City also recognizes an intangible right to use direct borrowing assets. The City re cognizes right to use direct borrowings with an initial, individual value of $10,000 or more.

Notes from direct borrowings at June 30, 2025, are as follows:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2014 corp yard 14,377,528$ 3.10% 2027 2,464,119$ 2011 solar project 2,454,100 4.95% 2031 1,000,117
2013 animal shelter 3,000,000 4.00% 2034 1,409,146
2015 PD/fire comm tower 1,810,000 2.35% 2026 100,876
2015 solar project 2,000,000 3.48% 2035 1,219,413
2016 safety vehicles 1,460,000 1.00%-3.00% 2026 48,733 2021 safety vehicles 2,340,000 1.71% 2030 679,868
Total direct borrowings 6,922,272$
The debt
service requirements for the City notes from direct borrowings are as follows:

Year ending June 30, Principal Interest Total
2026 1,903,590$ 224,134$ 2,127,724$
2027 1,811,856 164,529 1,976,385
2028 581,248 114,917 696,165
2029 602,604 93,559 696,163
2030 624,829 71,334 696,163
2031-2035 1,329,517 111,712 1,441,229
2036 68,628 1,194 69,822
Total 6,922,272$ 781,379$ 7,703,651$
Direct Borrowings
The followi
ng is an analysis of the land, structures, and equipment of the direct borrowings as of June 30, 2025:

Land, structures and equipment 2,057,359$
Less accumulated depreciation (977,246)
Total 1,080,113$
68 428
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Busine
ss-Type Activities Long-Term Debt

1. Reven
ue Bonds
The City issues revenue bonds to provide funds for the acqui sition and construction of major capital facilities.

The revenue bonds have maturities of 14-20 years.

Revenue bonds at June 30, 2025, consisted of the following:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Busiess-Type Activities:
2013 wastewater revenue refunding bonds 12,500,000$ 2.00%-5.00% 2028 6,480,000$ 2015 wastewater revenue refunding bonds 21,600,000 2.00%-3.75% 2035 19,200,000 2017 wastewater revenue refunding bonds 50,710,000 2.00%-5.00% 2038 39,670,000 2024 water revenue refunding bonds 12,710,000 2.00%-4.25% 2028 7,960,000 Total revenue bonds 73,310,000$
The ann
ual debt service requirements for the revenue bonds outstanding at June 30, 2025, are as follows:

Busiess-Type Activities:

Year ending June 30, Principal Interest Total
2026 7,110,000 $ 3,391,431 $ 10,501,431$ 2027 7,475,000 3,035,256 10,510,256
2028 7,840,000 2,657,188 10,497,188
2029 5,330,000 2,257,188 7,587,188
2030 3,580,000 2,031,075 5,611,075
2031-2035 20,715,000 7,341,144 28,056,144
2036-2039 21,260,000 2,194,941 23,454,941
Total 73,310,000$ 22,908,223$ 96,218,223$ Revenue Bonds
The followi
ng is an analysis of the improvements made with the proceeds of these bonds as of June 30, 2025:

Land, structures and equipment 140,291,752$
Less accumulated depreciation (60,071,728)
Total 80,220,024$
69 429
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

2013
Wastewater Revenue Refunding Bonds
In Jul
y 2013, The City issued wastewater revenue refunding bonds in the amount of $12,500,000. The net proceeds of $12,698,281 (after the original issue premium of $596,726 and payment of $398,445 in underwriting fees, insurance, and other issuance costs) from th e bonds were used to refund the $13,745,000 aggregate principal amount outstanding on the City’s 1998 wastewater bonds. The aggregate debt service payments of the new debt are $2,519,935 less than the old debt. The bonds have interest rates varying from 2.00% to 5.00% and the final payment is scheduled for August 2028.The is suance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $644,000. The wastewater revenue refunding bonds contain an acceleration clause that allows the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs.
2015 Wastewater Revenue Refunding Bonds
In August 2015, The City refinan
ced the 2005 wastewater revenue bonds and issued 2015 wastewater revenue bonds in the amount of $21,600,000. The net proceeds of $22,881,723 (after the original issue premium of $1,652,032 and payment of $370,309 in underwriting fees, insurance, and other issuance costs) from the bonds were used to refund the $24,885,000 aggregate princi pal amount outstanding on the City’s 2005 wastewater bonds. The aggregate debt service payments of the new debt are $10,852,200 less than the old debt. The bonds have interest rates varying from 2.0% to 3.75% and the final payment is scheduled for August 2035. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $4,410,265. The wastewater revenue bonds contain an acceleration clause that allo ws the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs. 2017 Wastewater Revenue Refunding Bonds
In August 2017, The City refinan
ced the 2007 wastewater revenue bonds and issued 2017 wastewater revenue bonds in the amount of $50,710,000. The net proceeds of $59,836,790 (after the original issue premium of $9,687,427 and payment of $560,637 in underwriting fees, insurance, and other issuance costs) from the bonds were used to refund the $59,620,000 aggregate princi pal amount outstanding on the City’s 2007 wastewater bonds. The aggregate debt service payments of the new debt are $18,669,931 less than the old debt. The bonds have interest rates varying from 2.0% to 5.0% and the final payment is scheduled for August 2038. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $8,750,978. The wastewater revenue bonds contain an acceleration clause that allo ws the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs. 2024 Water Revenue Refunding Bond
In Septembe
r 2023, The City issued water revenue refunding bonds in the amount of $12,710,000. The net proceeds of $13,379,188 (after the original issue premium of $669,188 and payment of $232,086 in underwriting fees, insurance, and other issuance costs) from th e bonds were used to refund the $31,810,000 aggregate principal amount outstanding on the City’s 2014 water revenue bonds. The aggregate debt service payments of the new debt are $30,111,596 less than the old debt. The bond s have interest rates varying from 2.0% to 5.0% and the final payment is scheduled for March 2028. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between t he present value of the old debt and new debt service payments) of approximately $393,000. The wastewater revenue bonds contain an acceleration clause that allows the bondholders to accelerate payment of t he entire principal amount to become immediately due if default in payment occurs.
70 430
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Fiduciary Fu
nds Long-Term Debt

1. T
ax Allocation Bonds Payable
2008 Tax Allocation Bonds
The forme
r Clovis Community Development Agency issued tax allocation bonds in the amount of $19,100,000 in April 2008. The interest rates on the 2008 tax allocation bonds vary from 3.00% to 4.75% and the final payment is scheduled for August 2037. Bonds outstanding at J anuary 31, 2012 were $17,445,000 and were transferred to the Successor Agency on February 1, 2012 due to the dissolution of the Agency. The balance outstanding at June 30, 2025 is $7,660,000 and is held in the City’s Redevelopment Successor Agency Private-purpose Trust Fund.

Tax allocation bonds at June 30, 2025, consisted of the following:

Balance Balance Due in Due in more
7/1/2024 Additions Reductions 6/30/2025 One Year than One Year 2008 tax allocation bonds 8,620,000$ (960,000)$ 7,660,000$ 995,000$ 6,665,000$ Less (discounts) on bonds (104,247) 7,967 (96,280) (96,280) Total tax allocation bonds 8,515,753$ 0$ (952,033) $ 7,563,720$ 995,000$ 6,568,720$ Classification
The ann
ual debt service requirements for the tax allocation bonds outstanding at June 30, 2025, are as follows:

Fiduciary Activities:

Year ending
June 30, Principal Interest Total
2026 995,000 $ 333,972$ 1,328,972$
2027 1,050,000 286,681 1,336,681
2028 1,095,000 237,078 1,332,078
2029 1,150,000 185,163 1,335,163
2030 1,205,000 130,703 1,335,703
2031-2035 1,260,000 370,025 1,630,025
2036-2038 905,000 65,669 970,669
Total 7,660,000$ 1,609,291$ 9,269,291$
Tax Allocation Bonds
71 431
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Subscription Liability
The City has entered into subscription-based inform atio n technology arrangements (SBITA) for various administrative and operational purposes. These subscription s include services related to cloud-based software applications, data storage, and management services. Unde r the terms of these arrangements, the City does not take possession of the software at any time and t he vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 2 to 5 years. The calculated interest rate used was 3.032%.

As of June 30, 2025, the capitalized right-to-use assets related to SBITA was $3,765,466 and the total subscription liability was $3,412,454, of which $1,172,099 is classified as current liability representing the portion due within the next fiscal year. The City re cognized $49,007 of interest expense related to these arrangements.

SBITAs at June 30, 2025, consisted of the following:

Balance Balance Due in Due in more
Governmental Activities 7/1/2024 Additi ons Reductions 6/30/2025 One Year than One Year VM Ware 58,344$ (58,344)$
ESRI 200,525 (99,037) 101,488$ 101,488$
Microsoft 365 821,769 (405,862) 415,907 415,907
Cartegraph 22,092 (10,911) 11,181 11,181
Axon 2,391,506$ (504,006) 1,887,500 471,875 1,415,625$ Brinc Drone 1,084,136 (96,968) 987,168 167,207 819,961 Total SBITAs 1,102,730$ 3,475,642$ (1,175,128)$ 3,403,244$ 1,167,658$ 2,235,586$ Classification
Balance Balance Due in Due in more
Business-Type Activities 7/1/2024 Additions Reductions 6/30/2025 One Year than One Year Passio Tech 38,217$ (38,217)$
Remix Tech 16,120 (16,120)
Spare Labs 49,397 (49,397)
Urban Trans 13,336 (4,126) 9,210$ 4,441$ 4,769$ Total SBITAs 117,070$ 0$ (107,860) $ 9,210$ 4,441$ 4,769$ Classification
Princi
pal and interest payments to maturity are as follows:

Year ending
June 30, Principal Interest Total
2026 1,172,099 $ 33,350 $ 1,205,449$ 2027 741,303 23,222 764,525
2028 749,526 23,437 772,963
2029 749,526 23,437 772,963
Total 3,412,454$ 103,446$ 3,515,900$ SBITAs
72 432
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Lease Liability
The City has entered into lease contracts to provide various administrative and operational purposes. The City has curre
ntly entered contracts with varying maturity peri ods ranging from 5 to 7 years. The calculated interest rate used was 3.032%.

As of June 30, 2025, the capitalized assets related to lease liabilities was $1,090,260 and the total lease liability was $955,532, of which $262,812 is classified as current liability representing the portion due within the next fiscal year. The City recognized $28,890 of interest expense related to these arrangements.

Lease liabilities at June 30, 2025, consisted of the following:

Balance Balance Due in Due in more
7/1/2024 Additions Reductions 6/30/2025 One Year than One Year Governmental Activities
ProAg - IT Building 577,017$ (71,581)$ 505,436$ 111,741$ 393,695$ ProAg - Admin/Personnel 399,160$ (61,962) 337,198 75,763 261,435 Cisco System Equip 225,984 (73,086) 152,898 75,308 77,590 Total leases 577,017$ 625,144$ (206,629)$ 995,532$ 262,812$ 732,720$ Classification
Principal and
interest payments to maturity are as follows:

Year ending
June 30, Principal Interest Total
2026 262,812$ 18,768$ 281,580$
2027 278,911 11,149 290,060
2028 211,895 5,639 217,534
2029 223,244 289 223,533
2030 18,670 18,670
Total 995,532$ 35,845$ 1,031,377$
Leases Payable
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AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

G. Landfill Closure
The Cit
y has recorded liabilities for landfill closure, post-c losure maintenance and for landfill corrective action in the Community Sanitation Fund, an enterprise fund. T he State of California performs an annual analysis to determine estimated total cost of the landfill closure, post-closur e care costs, total capacity and remaining life.

The City’s landfill closure liability, based on landfill capacity used to date, is recorded based on the information provided by their analysis. The land fill corrective action liability is based on the estimated co st of known or reasonably foreseeable corrective action that may be required at the facility.

The City is currently estimating at J une 30, 2025 that the capacity of the l andfill used is approximately 40%, the estimated remaining life is approximately 32 years and the estimated remaining cost to be recognized is $24,052,961. The estimated remaining capacity is 5, 966,431 cubic yards and the estimated landfill closure liability is $6,085,840. The current esti mated cost of known and/or reasonabl y foreseeable corrective action is $5,108,060 and the City currently has $1,000,000 set asid e for this purpose. These estimates are based on a closure and post-closure maintenance plan and correct ive action plan. The estimates have been adjusted for inflation and other factors such as technology and laws and regulations.

H. Pension Plans
Gene
ral Information about the Pension Plan
Plan De
scription
T
he City contributes to the California Public Employees’ Retirement System (CalPERS), an agent multiple-employer public employee defined benefit pension plan. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full descripti on of the pension plan regarding number of employees covered, benefit provisions, assumptions (for fu nding, but not accounting purposes), and membership information are listed in the June 30, 2024 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Benefit Provided
CalPE
RS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic miscellaneous member becomes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service . A classic safety member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service.

PEPRA safety members become eligible for service retire ment upon attainment of age 57 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' full-time equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2.7% of the average fi nal 12 months compensation. Retirement benefits for PEPRA miscellaneous employees are calc ulated as 2% of the highest av erage annual compensation over a three-year period. Retirement benefits for classic safety employees are calculated as 3% of the average highest 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2.7% of the average highest 36 months compensation.

Participants are eligible for non-industrial disability reti rement if they become disabled and have at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final co mpensation, multiplied by serv ice. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of highest compensation.
74 434
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

An emplo
yee's beneficiary may receive the basic death benefit if the employee dies while actively employed.

The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit ma y choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7. 375 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted by 2 percent applied to the original retirement allowance.

Employees Covered by Benefit Terms
At June 30, 2
024, the measurement date, the following employees were covered by the benefit terms:

Employee information
Miscellaneous Safety
Active employees 556 178
Transferred and terminated employees 843 77
Retired Employees and Beneficiaries 372 210
Total 1,771 465
Plans
Contri
butions
For the me
asurement period ended June 30, 2024, contributions were as follows:

Aggregate
Miscellaneous Safety Total
Contributions - employer 7,039,387$ 10,445,123$ 17,484,510$ Section 20814(c) of the California P ublic Employees’ Retirement Law (“P ERL”) requires that the employer contribution rates for all public employers be deter mined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the mea
surement period ended June 30, 2024, the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2024 total pension liability was based on the following actuarial methods and assumptions:
75 435
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Derived using CalPERS' Membership Data for all Funds
Contract COLA up to 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30%
thereafter
Entry Age Normal

6.90%

2.30%
Varies by Entry Age and Service

6.80% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
The Experie
nce Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
In Fiscal Year
2021-22, the discount rate was lowered from 7.15 percent to 6.90 percent. The last adjustment to the discount rate was in fiscal year 2016-17 when it was lowered from 7.65 percent to 7.15 percent in fiscal year. The funding discount rate includes a 15 basis- point reduction for administrative expenses, and the remaining decrease is consistent with the change in the financial reporting discount rate.

Long-term Expected Real Rates of Return by Asset Class
The table be
low reflects long-term expected real rates of return by asset class. The rates of return were calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These geometric rates of return are net of administrative expenses.

Asset Class1
Assumed Asset
Allocation Real Return 2 3
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 Yields 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
1 In the Basic Financial Statements, Fix ed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.30% used for this period.
3 Figures are based on the 2021-22 Asset Liability Management study.

Pension Expense
The Net Pens
ion Expense for the year ended June 30, 2025 is itemized as follows:

Net Pension
Expense
Miscellaneous Plan 2,268,089$
Safety Plan 2,659,410
4,927,499$
76 436
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Changes in the Net Pensi
on Liability
The followi
ng table shows the changes in net pension liability recognized over the measurement period.

Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Balance at June 30, 2023 (Valuation Date) 276,691,313$ 199,909,188$ 76,782,125$ Changes Recognized for the Measurement Period:

Service Cost 7,191,410 7,191,410
Interest on the total pension liability 19,255,796 19,255,796 Differences between expected and actual experience 4,710,916 4,710,916 Plan to plan resource movement 9,215 (9,215)
Contributions from the employer 7,039,387 (7,039,387) Contributions from employees 6,336,091 (6,336,091)
Net investment income 19,369,869 (19,369,869)
Benefit payments, including refunds of employee
contributions (11,856,867) (11,856,867)
Adminstrative expense (162,667) 162,667
Net Changes during July 1, 2023 to June 30, 2024 19,301,255$ 20,735,028$ (1,433,773)$ Balance at June 30, 2024 (Measurement Date) 295,992,568$ 220,644,216$ 75,348,352$ Increase (Decrease)
Safety Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Balance at June 30, 2023 (Valuation Date) 290,146,238$ 186,803,820$ 103,342,418$ Changes Recognized for the Measurement Period:

Service Cost 7,450,878 7,450,878
Interest on the total pension liability 20,185,373 20,185,373 Differences between expected and actual experience 5,443,191 5,443,191 Plan to plan resource movement (9,215) 9,215
Contributions from the employer 10,445,123 (10,445,123) Contributions from employees 4,574,908 (4,574,908)
Net investment income 18,278,214 (18,278,214)
Benefit payments, including refunds of employee
contributions (13,546,435) (13,546,435)
Adminstrative expense (152,003) 152,003
Net Changes during July 1, 2023 to June 30, 2024 19,533,007$ 19,590,592$ (57,585)$ Balance at June 30, 2024 (Measurement Date) 309,679,245$ 206,394,412$ 103,284,833$ Increase (Decrease)
77 437
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Sensitivit
y of the Net Pension Liability to Changes in the Discount Rate The following presents the net pensi on
liability of the Plan as of the me asurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability woul d be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.9%) Rate (6.90%) (7.90%)
Miscellaneous Plan 116,132,797$ 75,348,352$ 41,719,451$ Safety Plan 146,568,192$ 103,284,833$ 67,788,246$ Aggretate Total 262,700,989$ 178,633,185$ 109,507,697$ Plan's Net Pension Liability/(Asset)
Pensio
n Plan Fiduciary Net Position
Detaile
d information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Deferred Outflows and Deferred Inflows of Resources Related to Pensions Deferred Outflows
of Resources
Deferred employer
pension contributions Investment earnings Differences between Total made after Changes less than actual versus pension-related measurement date in assumptions expected earnings expected experience deferred outflows Miscellaneous Plan 8,038,581$ 1,476,890$ 2,881,100$ 3,760,259$ 16,156,830$ Safety Plan 11,650,569 4,021,763 2,610,303 6,172,221 24,454,856 Total 19,689,150$ 5,498,653$ 5,491,403$ 9,932,480$ 40,611,686$ The
City reported $8,038,581 and $11,650,569 as deferred outflows of resources related to contributions for the miscellaneous and safety plan, respectively, subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.

Deferred Inflows of Resources
Investment earnings Differences between Total
Changes less than actual versus pension-related
in assumptions expected earnings expected experience deferred inflows Miscellaneous Plan 0$ 0$ (327,929)$ (327,929)$ Safety Plan (1,299,313) (1,299,313)
Total 0$ 0$ (1,627,242)$ (1,627,242)$
78 438
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

Amortization of Deferred Outflows/(Inflows) of Resources

Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Measurement Period
Ended June 30 Miscellaneous Plan Safety Plan
2025 2,496,861 $ 2,985,024 $
2026 6,378,356 7,738,616
2027 23,500 851,218
2028 (1,108,397) (69,883)
7,790,320$ 11,504,975 $
Deferred Outflows/(Inflows) of Resources

Payable to Pension Plan

At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

I. Tax Abatements

The City has not entered into any tax abatement agreem ents as of June 30, 2025. However, the County of Fresno (County) has provided certain tax abatements that affect the property tax revenues of the City.

The County provides property tax abatements through the California Land Conservation (Williamson) Act of 1965. The program enrolls land in Williamson Act or Farmland Security Zone contracts within established agricultural preserves, whereby the land is restricted to agricultural or qualified recreational uses in exchange for reduced property tax assessments. The Williamson Act Program is administered according to the statute and the County’s Interim Program Guidelines adopted by the County’s Board of Supervisors. The County’s Assessor administers the property tax reduction that parcels enrolled in the program receive. Parcels enrolled in the Williamson Act Program are assessed for property tax purposes at a rate consistent with their actual use, rather than the market value of the property. The minimum contract term for the Williamson Act is ten years and for the Farmland Security Zone is twenty years. Both the Williamson Act and the Farmland Security Zone contracts automatically renew until a notice of non-renewal or a certificate of cancellation is recorded. Under the non- renewal process, the annual tax assessment gradually increases over a defined period until the assessment reflects the market value of the property. Under t he cancellation process, a one-time cancellation fee is assessed based upon a certain percentage of the unrestricted, current fair market value of the property.

For the fiscal year ended June 30, 2025, the Coun ty’s Williamson Act Program tax abatements were $72,498,713. The City’s affected portion of property tax revenues (approx. 1.9%) is, therefore, $1,377,476.

V. Other Information

A. Self Insurance

The City is self-insured for general li ability, automobile liability, workers' compensation, group dental and group vision programs. The City is responsible for all claims up to $5,000 per occurrence for automobile liability, $5,000 per occurrence for property, $250,000 per occurr ence for workers' compensation, and $100,000 per occurrence on general liability. The dental and vision prog rams have no individual per occurrence stop-loss and no aggregate annual stop-loss. Excess insurance for all am ounts in excess of the self-i nsured retention in the workers' compensation program is purchased from Local Agency Workers’ Compensation Excess JPA (LAWCX). Consistent with the LAWC X Memorandum of Coverage, LAWCX provides coverage for the City above its self-insured retention of $250,000 up to $5,000,000. LAWCX purchases excess insurance which covers the pool for losses from $5,000,000 to statutory limits.

79 439
AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

The City is a
member of the Central San Joaquin Va lley Risk Management Authority (RMA) for the purpose of pooling general liability coverage under a retrospectively rated Memorandum of Coverage. Deposit premiums to the RMA are based on actuarially determined claims co sts, including incurred but not reported claims, and expenses. Premiums are accrued based on the ultimate cost determined by the experience to date of the pool’s member cities. The risk pool covers the City above it s self-insured retention of $100,000 up to $1,000,000. The Authority purchases excess insurance which covers the pool for losses fr om $1,000,001 to $34,500,000. Pool Members may receive rebates when declared by RMA or, in the event excess liability claims against RMA exceed available resources, may be required to make additional contributions through a retrospective adjustment process.

The City accounts for the self-insurance programs in the Self-Insurance Fund and Employee Benefits Fund, both internal service funds. Charges to user departments are reported as interfund transactions.

Incurred but not reported claims have been accrued as a liability for the workers' compensation and dental programs as required in the amount of $4,520,590 based on previous claims experience and actuarial studies.

There were no reductions in insurance coverage from the prior year and there were no settlements that exceeded insurance coverage for the past three fiscal years. Following is a reconciliation of the changes in the City’s aggregate liabilities for claims for the current and prior fiscal year:

Workers'
Compensation Dental Total
Balance, 06/30/23 8,375,000$ 48,000$ 8,423,000$ Claims provision 4,652,367 431,698 5,084,065
Claims paid (3,862,367) (431,698) (4,294,065)
Balance, 06/30/24 9,165,000 48,000 9,213,000
Claims provision 5,680,431 888,842 6,569,273
Claims paid (4,332,431) (888,842) (5,221,273)
Balance, 06/30/25 10,513,000$ 48,000$ 10,561,000$ B. Deferred Compensation
The City has established a deferred compensation plan in accordance with Internal Revenue Code Section 457.

The plan, available to all full time employees, permits them to defer a portion of their salary until future years.

Participation in the plan is optional. The deferred compen sation is not available to employees until termination, retirement, death or unforeseeable emergency. All am ounts deferred under the plan and all income attributable to those amounts are solely the property and rights of the plan participants.

Semi-monthly the City forwards all contributions to t he plan administrator, the ICMA Retirement Corporation.

Plan participants may choose from inv estment options which are managed by the plan trustee. The City has no liability for losses under the plan. As of January 1, 1998 ICMA Retirement Corporation amended the agreement with the City to comply with IRC Section 457 regulations . The assets and related liabilities are not reported on the City’s financial statements in accordance with Gov ernmental Accounting Standards Board Statement No. 32 - “Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.”
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AGENDA ITEM NO. 18.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2025

C. Postretirement Benefits

The City allows its retirees who retire under provisions of a regular service retirement and who have five years of service the opportunity to continue enrollment in the City's health insurance program until age 65. The retirees have the same choice of insurance plans as those of current employees. The retirees are pooled together separately from the active employee pool and pay the full cost of the insurance prem iums without cost to the City.

D. Contingent Liabilities

The City participates in several feder ally assisted grant programs, includi ng those from the U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S.

Department of Labor, U.S. Department of Health and Human Services and the U.S. Department of Homeland Security. Receipts from these grant programs are subjec t to audit to determine if the monies were expended in accordance with the appropriate statutes, grant terms and regulations. The City believes no significant liabilities will result.

E. Claims and Litigation

The City is directly and indirectly involved in various su its relating principally to claims arising from construction contracts, personal injury, and property damage. In t he opinion of the City Attorney and City’s management, potential claims against the City resulting from such litigation, not covered by insurance, would not materially affect the basic financial st atements of the City. As a result, no liabilit y has been accrued by the City relating to these matters as of June 30, 2025.

F. Restatement of Beginning Balances

Effective for the fiscal year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Abse nces. This Statement establishes recognition and measurement guidance for all types of compensated absences, including vacation, sick leave, and other paid time off. As a result of implementing GASB 101, t he City changed its accounti ng principle for compensated absences. Previously, liabilities for compensated absences were recognized only when earned and expected to be paid. Under GASB 101, liabilities are now recognized when the leave is earned and attributable to services already rendered, regardless of when payment is expect ed. This change resulted in a restatement of beginning net position and fund balances as follows:

Governmental Activities
Net position at July 1, 2024, as previously stated 722,533,358 $ Compensated absences prior period adjustment (5,269,230) Net position at July 1, 2024, restated 717,264,128 $
Internal Service Funds
Net position at July 1, 2024, as previously stated 153,297,830$ Compensated absences prior period adjustment (487,767)
Net position at July 1, 2024, restated 152,810,063$
Business-type activities
Net position at July 1, 2024, as previously stated 318,362,510$ Compensated absences prior period adjustment (2,038,585) Net position at July 1, 2024, restated 316,323,925$

81 441
AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios

California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years
Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total pension liability
Service Cost 7,191,410$ 6,426,053$ 6,190,461$ 5,383,091$ 5,253,785$ Interest on the total pension liability 19,255,796 18,016,529 17,090,128 16,367,097 15,572,381 Changes of benefit terms 255,095 Changes of assumptions 8,861,339
Difference between expected and actual experience 4,710,916 752,648 (1,967,582) (202,740) 1,939,655 Benefit pmts, including refunds of employee contributions (11,856,867) (11,294,672) (10,665,437) (9,884,689) (9,261,642) Net change in total pension liability 19,301,255 14,155,653 19,508,909 11,662,759 13,504,179 Total pension liability - beginning 276,691,313 262,535,660 243,026,751 231,363,992 217,859,813 Total pension liability - ending (a) 295,992,568$ 276,691,313$ 262,535,660$ 243,026,751$ 231,363,992$ Plan fiduciary net position
Contributions - employer 7,039,387$ 6,599,704$ 6,561,636$ 5,805,693$ 4,995,682$ Contributions - employee 6,336,091 5,805,722 5,265,755 5,025,645 4,832,063 Net investment income 19,369,869 11,733,448 (15,397,968) 37,384,459 7,851,765 Benefit pmts, including refunds of employee contributions (11,856,867) (11,294,672) (10,665,437) (9,884,689) (9,261,642) Net Plan to plan resource movement 9,215
Administrative expense (162,667) (137,660) (125,562) (163,223) (218,790) Other miscellaneous income/(expense)
1 Net change in fiduciary net position 20,735,028 12,706,542 (14,361,576) 38,167,885 8,199,078 Plan fiduciary net position - beginning2
199,909,188 187,202,646 201,564,222 163,396,337 155,197,259 Plan fiduciary net position - ending (b) 220,644,216$ 199,909,188$ 187,202,646$ 201,564,222$ 163,396,337$ Plan net pension liability - ending (a) - (b) 75,348,352$ 76,782,125$ 75,333,014$ 41,462,529$ 67,967,655$ Plan fiduciary net position as a percentage
of the total pension liability 74.54% 72.25% 71.31% 82.94% 70.62% Covered payroll3
39,297,324$ 34,604,484 $ 33,086,378 $ 31,572,381 $ 30,228,914 $ Plan net pension liability as a % of covered payroll 191.74% 221.88% 227.69% 131.33% 224.84%

1 During Fiscal Year 2017-18, because of Governmental Accounting Standar ds Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense because of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of Califor nia agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In November 2021, the inflation and administrative expense assumptions were reduced which resulted in a discount rate reduction from 7.15 percent to 6.90 percent. None in 2019 or 2020. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
82 442
AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios

California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years
Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15 Total pension liability
Service Cost 5,057,577$ 4,786,244$ 4,581,081$ 4,019,807$ 3,839,364$ Interest on the total pension liability 14,655,898 13,670,020 12,863,057 12,118,925 11,339,870 Changes of benefit terms
Changes of assumptions (1,271,290) 10,936,836 (2,825,475) Difference between expected and actual experience 3,417,850 2,414,711 812,258 898,210 265,438 Benefit pmts, including refunds of employee contributions (8,604,933) (7,837,606) (6,970,312) (6,395,433) (5,572,456) Net change in total pension liability 14,526,392 11,762,079 22,222,920 10,641,509 7,046,741 Total pension liability - beginning 203,333,421 191,571,342 169,348,422 158,706,913 151,660,172 Total pension liability - ending (a) 217,859,813$ 203,333,421$ 191,571,342$ 169,348,422$ 158,706,913$ Plan fiduciary net position
Contributions - employer 4,051,371$ 3,326,932$ 3,204,896$ 2,918,817$ 3,275,626$ Contributions - employee 4,994,620 4,295,547 4,080,143 4,002,625 3,097,353 Net investment income 9,653,940 11,445,035 13,602,008 705,624 2,655,292 Benefit pmts, including refunds of employee contributions (8,604,933) (7,837,606) (6,970,312) (6,395,433) (5,572,456) Net Plan to plan resource movement (337)
Administrative expense (103,622) (209,719) (178,420) (72,943) (134,636) Other miscellaneous income/(expense)1
337 (398,260)
Net change in fiduciary net position 9,991,713 10,621,592 13,738,315 1,158,690 3,321,179 Plan fiduciary net position - beginning2
145,205,546 134,583,954 120,845,639 119,686,949 116,365,770 Plan fiduciary net position - ending (b) 155,197,259$ 145,205,546$ 134,583,954$ 120,845,639$ 119,686,949$ Plan net pension liability - ending (a) - (b) 62,662,554$ 58,127,875$ 56,987,388$ 48,502,783$ 39,019,964$ Plan fiduciary net position as a percentage
of the total pension liability 71.24% 71.41% 70.25% 71.36% 75.41% Covered payroll3
28,646,712$ 26,661,340 $ 25,396,835 $ 24,405,359$ 22,815,330$ Plan net pension liability as a % of covered payroll 218.74% 218.02% 224.39% 198.74% 171.03% 1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In November 2021, the inflation and administrative expense assumptions were reduced which resulted in a discount rate reduction from 7.15 percent to 6.90 percent. None in 2019 or 2020. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
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AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios, Continued

California Public Employees' Retirement System (CalPERS) - Safety Plan Last Ten Fiscal Years
Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total pension liability
Service Cost 7,450,878$ 6,574,473$ 6,423,279$ 5,626,832$ 5,692,902$ Interest on the total pension liability 20,185,373 18,927,029 17,891,502 17,172,665 16,528,674 Changes of benefit terms 102,156 Changes of assumptions 10,724,705
Difference between expected and actual experience 5,443,191 3,108,774 (2,813,898) (1,871,462) 3,334,764 Benefit pmts, including refunds of employee contributions (13,546,435) (12,745,618) (12,441,687) (11,535,391) (11,085,026) Net change in total pension liability 19,533,007 15,966,814 19,783,901 9,392,644 14,471,314 Total pension liability - beginning 290,146,238 274,179,424 254,395,523 245,002,879 230,531,565 Total pension liability - ending (a) 309,679,245$ 290,146,238$ 274,179,424$ 254,395,523$ 245,002,879$ Plan fiduciary net position
Contributions - employer 10,445,123$ 9,807,362$ 8,991,444$ 7,861,821$ 6,966,114$ Contributions - employee 4,574,908 4,184,407 3,677,476 3,509,463 3,314,861 Net investment income 18,278,214 10,898,008 (14,479,614) 35,205,099 7,391,522 Benefit pmts, including refunds of employee contributions (13,546,435) (12,745,618) (12,441,687) (11,535,391) (11,085,026) Net Plan to plan resource movement (9,215)
Administrative expense (152,003) (128,531) (117,834) (154,108) (208,492) Other miscellaneous income/(expense)1
Net change in fiduciary net position 19,590,592 12,015,628 (14,370,215) 34,886,884 6,378,979 Plan fiduciary net position - beginning2
186,803,820 174,788,192 189,158,407 154,271,523 147,892,544 Plan fiduciary net position - ending (b) 206,394,412$ 186,803,820$ 174,788,192$ 189,158,407$ 154,271,523$ Plan net pension liability - ending (a) - (b) 103,284,833$ 103,342,418$ 99,391,232$ 65,237,116$ 90,731,356$ Plan fiduciary net position as a percentage
of the total pension liability 66.65% 64.38% 63.75% 74.36% 62.97% Covered payroll3
23,744,036$ 20,759,310 $ 19,923,322$ 19,061,084$ 19,148,678$ Plan net pension liability as a % of covered payroll 434.99% 497.81% 498.87% 342.25% 473.83%

1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In November 2021, the inflation and administrative expense assumptions were reduced which resulted in a discount rate reduction from 7.15 percent to 6.90 percent. None in 2019 or 2020. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
84 444
AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios, Continued

California Public Employees' Retirement System (CalPERS) - Safety Plan Last Ten Fiscal Years
Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15 Total pension liability
Service Cost 5,508,074$ 5,400,076$ 5,070,624$ 4,128,912$ 3,953,791$ Interest on the total pension liability 15,548,223 14,583,496 13,834,596 13,060,555 12,319,585 Changes of assumptions (626,378) 11,813,770 (3,070,074) Difference between expected and actual experience 3,526,827 1,258,478 1,747,504 1,309,944 936,342 Benefit pmts, including refunds of employee contributions (10,456,706) (9,686,731) (8,769,084) (8,144,855) (7,825,158) Net change in total pension liability 14,126,419 10,928,941 23,697,410 10,354,556 6,314,486 Total pension liability - beginning 216,405,147 205,476,206 181,778,796 171,424,240 165,109,754 Total pension liability - ending (a) 230,531,565$ 216,405,147$ 205,476,206$ 181,778,796$ 171,424,240$ Plan fiduciary net position
Contributions - employer 5,912,775$ 5,062,611$ 4,872,316$ 4,263,677$ 4,110,362$ Contributions - employee 3,219,394 3,107,991 2,967,546 2,806,615 2,157,404 Net investment income 9,280,425 11,067,806 13,334,234 611,274 2,616,436 Benefit pmts, including refunds of employee contributions (10,456,706) (9,686,731) (8,769,084) (8,144,855) (7,825,158) Net Plan to plan resource movement (325)
Administrative expense (99,933) (204,254) (175,470) (72,758) (134,357) Other miscellaneous income/(expense)1
325 (387,882)
Net change in fiduciary net position 7,856,280 8,959,216 12,229,542 (536,047) 924,687 Plan fiduciary net position - beginning2
140,036,264 131,077,048 118,847,506 119,383,553 118,458,866 Plan fiduciary net position - ending (b) 147,892,544$ 140,036,264$ 131,077,048$ 118,847,506$ 119,383,553$ Plan net pension liability - ending (a) - (b) 82,639,021$ 76,368,883$ 74,399,158$ 62,931,290$ 52,040,687$ Plan fiduciary net position as a percentage
of the total pension liability 64.15% 64.71% 63.79% 65.38% 69.64% Covered payroll3
18,354,740$ 17,992,455 $ 16,912,791 $ 15,361,676 $ 14,732,611 $ Plan net pension liability as a % of covered payroll 450.23% 424.45% 439.90% 409.66% 353.23%

1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In November 2021, the inflation and administrative expense assumptions were reduced which resulted in a discount rate reduction from 7.15 percent to 6.90 percent. None in 2019 or 2020. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
85 445
AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Pension Contributions

California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years
2024-251 2023-241 2022-231 2021-221 2020-211
Actuarially determined contribution2
8,038,581$ 7,027,464 $ 6,599,704 $ 6,561,636 $ 5,805,693 $ Contributions to actuarially determined
contribution2
(8,038,581) (7,027,464) (6,599,704) (6,561,636) (5,805,693) Contribution deficiency (excess) 0 $ 0 $ 0 $ 0 $ 0 $ Covered payroll3
35,534,993$ 34,499,993 $ 33,495,139 $ 32,519,552 $ 31,572,381 $ Contributions as a percentage of covered payroll3

22.62% 20.37% 19.70% 20.18% 18.39%
2019-201 2018-191 2017-181 2016-171 2015-161
Actuarially determined contribution2
4,995,682$ 4,051,371 $ 3,326,932 $ 3,204,896 $ 2,918,817 $ Contributions to actuarially determined
contribution
2 (4,995,682) (4,051,371) (3,326,932) (3,204,896) (2,918,817) Contribution deficiency (excess) 0 $ 0 $ 0 $ 0 $ 0 $ Covered payroll3
30,228,914$ 28,646,712 $ 26,661,340 $ 25,396,835 $ 24,405,359 $ Contributions as a percentage of covered payroll3

16.53% 14.14% 12.48% 12.62% 11.96%

1 As prescribed in GASB 68, par agraph 46, the information pr esented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal ye ar-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towa rds their unfunded liability. Empl oyer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17.

Valuation Date: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method/Period For details, see June 30, 2021 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.

Inflation 2.30%
Salary increases Varies by Entry Age and Service
Payroll Growth 2.80%
Investment rate of return 6.80%, net of pension plan investment & admin exps; includes inflation.

Retirement age
Mortality
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
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AGENDA ITEM NO. 18.

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Pension Contributions, Continued

California Public Employees' Retirement System (CalPERS) – Safety Plan Last Ten Fiscal Years
2024-251 2023-241 2022-231 2021-221 2020-211
Actuarially determined contribution2
11,650,569$ 10,457,046 $ 9,807,362 $ 8,991,444 $ 7,861,821 $ Contributions to actuarially determined
contribution2
(11,650,569) (10,457,046) (9,807,362) (8,991,444) (7,861,821) Contribution deficiency (excess) 0$ 0$ 0$ 0$ 0$ Covered payroll3
21,453,418$ 20,828,561 $ 20,221,904 $ 19,632,917 $ 19,061,084 $ Contributions as a percentage of covered payroll3

54.31% 50.21% 48.50% 45.80% 41.25%
2019-201 2018-191 2017-181 2016-171 2015-161
Actuarially determined contribution2
6,966,114$ 5,912,775 $ 5,062,611 $ 4,872,316 $ 4,263,677 $ Contributions to actuarially determined
contribution2
(6,966,114) (5,912,775) (5,062,611) (4,872,316) (4,263,677) Contribution deficiency (excess) 0$ 0$ 0$ 0$ 0$ Covered payroll3
19,148,678$ 18,354,740 $ 17,992,455 $ 16,912,791 $ 15,361,676 $ Contributions as a percentage of covered payroll3

36.38% 32.21% 28.14% 28.81% 27.76%

1 As prescribed in GASB 68, par agraph 46, the information pr esented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal ye ar-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towa rds their unfunded liability. Empl oyer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17.

Valuation Date: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method/Period For details, see June 30, 2021 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.

Inflation 2.30%
Salary increases Varies by Entry Age and Service
Payroll Growth 2.80%
Investment rate of return 6.80%, net of pension plan investment & admin exps; includes inflation.

Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

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Nonmajor Governmental Funds

__________________________________

Special Revenue Funds

Special revenue funds are used to account for specific revenues that are legally restricted for particular purposes.

Off Highway Use Fund - This fund is used to account for the revenue received from the off-highway users fee since the fee can only be used for off-road facilities.

Housing & Community Development Fund - This fund is used to account for the revenue and expenses for the Community Development Block Grant operational activities.

Community Facilities District 2020- 1 Fund (Dry Creek Preserve Sewer Facilities and Services) - This fund is used to collect funds to finance all costs associated with the maintenance and operation of certain temporary public sewer facilities and the eventual replacement of those temporary facilities with permanent public sewer facilities.

Debt Service Funds

The debt service fund is used to account for the accumulation of resources and payment of bond principal and interest when the government is obligated in some manner for the payment.

1976 Fire and Sewer Bond Fund - This fund is used to account for the proceeds of the 1976 Fire and Sewer Bond sale and the annual debt service.

Capital Projects Funds

Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Park and Recreation Improvement Fund - This fund is used to account for capital improvements for parks, including acquisition of property. Revenues come from developer fees and grants.

Refuse Equipment Reserve Fund - This fund is used to account for the revenue generated by developer fees for the acquisition of equipment for refuse collection and disposal.

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