Coachella City Council
May 13, 2026

Item 23.

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025

CITY OF COACHELLA, CALIFORNIA

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53990 ENTERPRISE WAPage 208 Y, COACHELLA CA 92236
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City of Coachella, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared By:

The City of Coachella Finance Department

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City of Coachella
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................... i Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ........................................................................................................ vii Principal Officials of the City of Coachella ............................................................................................................ viii Organizational Chart ................................................................................................................................................. ix

FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................. 5 Basic Financial Statements:

Government–Wide Financial Statements:

Statement of Net Position .................................................................................................................................. 19 Statement of Activities ...................................................................................................................................... 20 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .............................................................................................................................................. 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ............................................................................ 29 Statement of Revenues, Expenditures,
and Changes in Fund Balances ............................................................................................................. 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ......................................................................................................................... 32 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 37 Statement of Cash Flows ............................................................................................................................. 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................... 43 Statement of Changes in Fiduciary Net Position ........................................................................................ 44 Notes to the Basic Financial Statements ............................................................................................................... 49

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City of Coachella
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Notes to the Budgetary Comparison Schedules .............................................................................................................. 99 Budgetary Comparison Schedule – General Fund ........................................................................................................ 101 Budgetary Comparison Schedule – Development Impact Fees Special Revenue Fund ............................................... 102 Budgetary Comparison Schedule – Grants Special Revenue Fund .............................................................................. 103 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ...................................... 104 Schedule of Contributions – Pensions .......................................................................................................................... 106 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios ........................................ 108 Schedule of Contributions – Other Postemployment Benefits ..................................................................................... 110 Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Capital Projects Fund....................................................................................................................................... 115 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................... 121 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Air Quality Improvement Special Revenue Fund ..................................................................................... 127 Local Transportation Special Revenue Fund ............................................................................................ 128 Landscape and Lighting District Special Revenue Fund .......................................................................... 129 Fire Protection District Special Revenue Fund ......................................................................................... 130 CDBG Special Revenue Fund ................................................................................................................... 131 State Gas Tax Special Revenue Fund ....................................................................................................... 132 Road Maintenance Dillon Road Special Revenue Fund ........................................................................... 133 Road Maintenance SB1 Special Revenue Fund ........................................................................................ 134 Community Facility District - Police Service Special Revenue Fund ...................................................... 135 Debt Repayment Debt Service Fund ......................................................................................................... 136 Custodial Funds Financial Statements:

Combining Statement of Fiduciary Net Position ............................................................................................. 141 Combining Statement of Changes in Fiduciary Net Position .......................................................................... 142

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City of Coachella
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page

STATISTICAL SECTION (UNAUDITED)
Description of Statistical Section Contents .................................................................................................................. 145 Net Position by Component .......................................................................................................................................... 146 Changes in Net Position ............................................................................................................................................... 148 Fund Balances of Governmental Funds ........................................................................................................................ 152 Changes in Fund Balances of Governmental Funds ..................................................................................................... 154 Schedule of Net Assessed Value .................................................................................................................................. 156 Citywide Assessed Value and Estimated Actual Value of Taxable Property ............................................................... 157 Citywide Assessed Value of Property by Use Code ..................................................................................................... 159 Direct and Overlapping Property Tax Rates ................................................................................................................. 160 Property Tax Levies and Collections ............................................................................................................................ 162 Principal Property Taxpayers ....................................................................................................................................... 163 Principal Sales Taxpayers ............................................................................................................................................. 164 Ratios of Outstanding Debt by Type ............................................................................................................................ 165 Legal Debt Margin Information.................................................................................................................................... 166 Direct and Overlapping Bonded Debt .......................................................................................................................... 168 Revenue Bond Coverage – Coachella Sanitary District ............................................................................................... 169 Revenue Bond Coverage – Coachella Water Authority ............................................................................................... 170 Demographic and Economic Statistics ......................................................................................................................... 171 Principal Employers ..................................................................................................................................................... 172 Ten Year Staffing History (Full Time Equivalents) ..................................................................................................... 173 Capital Asset Statistics by Function ............................................................................................................................. 174 Operating Indicators by Function ................................................................................................................................. 176

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i

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v

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vi

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Coachella
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
v i

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vii

CITY OF COACHELLA
List of Principal Officials
As of June 30, 2025
City Council – Manager Form of Government

CITY COUNCIL
Steven Hernandez
Mayor

DENISE DELGADO
Mayor Pro Tem
Dr. Frank Figueroa STEPHANIE VIRGEN YADIRA PEREZ
Council Member Council Member Council Member

CITY ADMINISTRATION
William Pattison
City Manager
City Attorney Ryan Guiboa
City Treasurer Mayra Perez
City Clerk Angela Zepeda
Public Works Director - City Engineer Andrew Simmons
Development Services Director Kendra Reif
Finance Director Lincoln Bogard
Battalion Chief Justin Karp
Police Chief Michael Bianco
Utilities Manager Castulo Estrada

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General Information
City Organizational Chart

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of the City Council of the City of Coachella
Coachella, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coachella, 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 accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Emphasis of Matters
Change in Accounting Principle
As discussed in Notes 1 and 16 to the basic financial statements, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences during the year ended June 30, 2025. The adoption of this standard resulted in the restatement of the City’s net position as of June 30, 2024. Our opinion is not modified with respect to his matter.

Correction of Errors
As discussed in the Note 16 to the basic financial statements, the City recorded restatements due to correction of revenues. Our opinion is not modified with respect to this matter.

Item 23.

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

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

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

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

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

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

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

Item 23.

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

3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

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

Item 23.

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

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
April 30, 2026

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5 The information in this section is not covered by the Independent Auditor’s Report but is presented as required supplementary information for the benefit of the readers of the Annual Comprehensive Financial Report (ACFR).

As the management of the City of Coachella (City), we offer readers of these financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2025. Management’s Discussion and Analysis provides readers with a basic overview of the financial results and financial position of the City of Coachella. We encourage readers to consider the information presented here in conjunction with additional information we have furnished in our letter of transmittal. All amounts are expressed in millions of dollars unless otherwise stated.

Financial Highlights
The assets and deferred outflows of resources of the City of Coachella exceeded its total liabilities and deferred inflows of resources at the close of the fiscal year by $285.74 million (net position). Of this amount, $231.95 million is the net investment in capital assets and is not available to meet ongoing obligations. Approximately $17.61 million (unrestricted net position) represents net position available to meet the government’s ongoing obligations to citizens and creditors.

The City’s total net position increased by $13.21 million between FY 2023-24 and FY 2024-25. During the period, total revenues equaled $82.65 million, an increase of $16.47 million over fiscal year 2023-24, and expenses totaled $69.43 million, a $3.37 million increase over the same time period.

The governmental activities’ total net position increased by $10.44 million (including prior year restatement impacts), and the business-type total net position increased by $3.13 million (including prior year restatement impacts). The governmental activities increase was primarily due to an increase of $5.72 million in operating grants and contributions for assistance from the American Rescue Plan Act for pandemic recovery, Coachella Valley Area Governments grants, and a Transformative Climate Communities grant; an increase of $4.16 million in capital grants and contributions for assistance in construction and improvements to city infrastructure for streets; an increase of $1.93 million in charges for services due to increased development, and an increase in property taxes of $0.97 million due to property value increases and home sales at higher prices, offset by an increase in public safety contract costs of $2.63 million.

The business-type activities increased $3.13 million, the increase was primarily due to an increase of $1.70 million in capital grants and contributions for infrastructure improvements in water and sanitary sewer; a $0.65 million increase in charges for services due to increased demand due to growth, and an error correction for revenue of $0.45 million.

At the close of the fiscal year 2024-25, the City of Coachella’s governmental funds reported combined ending fund balances of $41.35 million, a decrease of $6.13 million in comparison with the prior year. The primary reason for the decrease was due to an increase in amounts due from other governments of $3.01 million for unavailable revenues associated with grants for special revenue funds, issuance of leases of $1.41 million, a $1.06 million increase in personnel costs, and an increase of $0.93 million for accounts payable due to timing of invoicing.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Coachella’s basic financial statements which include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report contains other supplementary information in addition to the basic financial statements themselves.

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

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6 The statement of net position presents information on all of the City’s assets and deferred outflows of resources as well as liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported on this statement for some items that will result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, public works (highways and streets), economic development, and parks and recreation. The business-type activities of the City include a Water Authority and a Sanitary District.

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

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

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Coachella maintains fifteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Development Impact Fees Special Revenue Fund, Grants Special Revenue Fund, and the Capital Projects Fund all of which are considered to be major funds. Data from the eleven other funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the Supplementary Information in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

Proprietary funds: The City of Coachella maintains one type of proprietary funds. Enterprise funds are used to report on the same function as presented in business-type activities on the government-wide financial statements. The City uses enterprise funds to account for its Water Authority and Sanitation District. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
7 Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

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

Other information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information and supplementary information including individual and combining fund schedules.

Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Coachella, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $285.74 million at the close of the fiscal year. By far the largest portion of the City’s net position, $231.95 million, reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment), less any related debt used to acquire those assets and is still outstanding net of unspent debt proceeds. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported as a net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
*2024 balances were restated due to error corrections.

Note: a change in accounting estimate is treated prospectively, prior periods are not restated due to GASB 101 implementation.

The City’s net position increased by $13.17 million or 4.83 percent, during the fiscal year; reasons for this increase were given above in the Financial Highlights section.

FY 2025 FY 2024 FY 2025 FY2024* FY 2025 FY 2024
Current and restricted assets 70,711,053 $ 68,631,779 $ 28,252,635 $ 28,130,321 $ 98,963,688 $ 96,762,100 $ Capital assets 216,606,492 204,588,561 58,026,509 54,951,800 274,633,001 259,540,361 Total Assets 287,317,545 273,220,340 86,279,144 83,082,121 373,596,689 356,302,461 Deferred Outflows of Resources 3,384,384 6,764,674 1,865,885 3,478,650 5,250,269 10,243,324 Long-term debt outstanding 36,600,816 37,349,931 30,655,276 33,734,378 67,256,092 71,084,309 Other liabilities 15,659,913 12,916,161 3,968,848 1,354,933 19,628,761 14,271,094 Total Liabilities 52,260,729 50,266,092 34,624,124 35,089,311 86,884,853 85,355,403 Deferred Inflows of Resources 4,542,821 6,275,276 1,682,486 2,349,894 6,225,307 8,625,170 Net position:

Net Invested in capital assets, 196,224,441 184,375,498 35,728,243 28,935,952 231,952,684 213,311,450 Restricted 23,614,547 18,469,626 12,556,099 13,331,879 36,170,646 31,801,505 Unrestricted 14,059,391 20,598,522 3,554,077 6,853,735 17,613,468 27,452,257 Total Net Position 233,898,379 $ 223,443,646 $ 51,838,419 $ 49,121,566 $ 285,736,798 $ 272,565,212 $ City of Coachella's Net Position
Governmental Activities Business-Type Activities Total

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024
REVENUES:

Program Revenues:

Charges for services 5,199,617 $ 3,269,906 $ 14,779,927 $ 14,129,251 $ 19,979,544 $ 17,399,157 $ Operating grants and
contributions 18,460,177 12,739,566 18,460,177 12,739,566 Capital grants and contributions 6,685,677 2,524,623 3,429,935 1,731,749 10,115,612 4,256,372 General Revenues:

Property Taxes 8,945,307 7,976,283 247,664 9,192,971 232,753 8,209,036 Sales and Use Taxes 11,473,65 12,051,079 4 11,473,654 12,051,079 Franchise Taxes 1,240,236 1,317,405 1,240,236 1,317,405 Transient Occupancy Taxes 1,961,515 1,304,365 1,961,515 1,304,365 Utility Users Taxes 3,260,719 3,436,456 3,260,719 3,436,456 Construction Taxes 340,412 174,807 340,412 174,807 Cannabis Tax 612,046 1,029,401 612,046 1,029,401 Business License Taxes 775,581 769,641 775,581 769,641 Investment Income 2,048,96 1,170,319 4 1,209,501 1,126,203 3,258,465 2,296,522 Other revenues 1,322,64 534,374 4 655,313 658,681 1,977,957 1,193,055 Total Revenues 62,326,549 48,298,225 20,322,340 17,878,637 82,648,889 66,176,862 EXPENSES:

General government 13,316,99 11,897,326 0 - 11,897,326 13,316,990 Public safety 17,400,86 14,772,296 0 - 14,772,296 17,400,860 Community development 5,969,173 5,704,915 - 5,704,915 5,969,173 Public works 12,585,275 13,876,230 - 13,876,23 12,585,275 0 Parks & recreation 3,518,92 3,801,434 0 - 3,518,920 3,801,434 Interest on long-term debt 1,079,008 796,900 1,029,497 1,079,008 1,826,397 Operating expenses 15,561,136 14,182,289 15,561,136 14,182,289 Total Expenses 53,870,226 50,849,101 15,561,136 15,211,786 69,431,362 66,060,887 Increase (Decrease) in Net Position before transfers 8,456,323 (2,550,876) 4,761,204 13,217,527 2,666,851 115,975 Net transfers 2,048,85 2,216,779 0 (2,048,850) (2,216,779) - - Increase (Decrease) in Net Position 10,505,173 (334,097) 2,712,354 13,217,527 450,072 115,975 Change in accounting princile (GASB 101) (50,440) - 4,499 - (45,941) - Error Correctiom - - - 413,980 - 413,980 Beginning of Net Position 223,443,646 223,777,743 49,121,566 48,257,514 272,565,212 272,035,257 Ending Net Position 233,898,379 $ 223,443,646 $ 51,838,419 $ 49,121,566 $ 285,736,798 $ 272,565,212 $ City of Coachella's Changes in Net Position
Governmental
Activities
Business-Type
Activities Total

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 Governmental activities: Governmental activities increased the City’s net position by $10.5 million. Key elements of this increase are as follows:

Total revenues increased $14.03 million or 29.05 percent, the City saw an increase of $5.72 million in operating grants and contributions for assistance from the American Rescue Plan Act for pandemic recovery, Coachella Valley Area Governments grants, and a Transformative Climate Communities grant; an increase of $4.16 million in capital grants and contributions for assistance in construction and improvements to city infrastructure for streets; an increase of $1.93 million in charges for services due to increased development, and an increase in property taxes of $0.97 million due to property value increases and home sales at higher prices.

Total expenses from governmental activities increased by $3.02 million or 5.94 percent during the fiscal year. The change was primarily due to an increase of $2.63 million in public safety contract costs.

Business-type Activities: Business-type activities increased its net position by $2.7 million. Business-type revenues increased $2.44 million or 2.96 percent. The increase was due to an increase of $0.65 million in charge for services due to increased usage due to growth, and an increase of $1.70 million in capital grants and contributions for infrastructure projects for water and sanitary sewer. Expenses increased by $0.35 million or 0.50 percent. The increase was due to a $0.36 million increase in interest on long-term debt.

Financial Analysis of the Government’s Funds
As noted earlier, the City of Coachella uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

At the end of the fiscal year, the City’s governmental funds reported combined ending fund balances of $41.35 million, a decrease of $6.13 million in comparison with the prior year. Of the $41.35 million total, $13.1 million constitutes as non-spendable fund balances, which means that these balances are not available to fund operating expenditures of the organization; $11.13 million are restricted fund balances which are the result of external limitations on spending; $18.94 million are committed which are the result of City Council imposed restritions for fiscal reserves, $7.24 million are assigned for various known financial resource requirements of the City’s governmental funds and ($9.1) million represents unassigned fund balances or the residual net resources after taking into consideration the other classifications.

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $12.25 million, while the total General Fund balance was $42.39 million. As a measure of the General Fund’s liquidity, it may be useful to compare the total General Fund balance to budgeted expenditures (including transfers out). The total fund balance represents 121 percent of the total budgeted expenditures.

A target for unassigned fund balance is 25 percent of general fund budgeted expenditures and the city’s is 35 percent.

The fiscal year 2024-25 ending fund balance of the City’s General Fund is a net total of $42.39 million, which is a decrease of $1.96 million from fiscal year 2023-24. General Fund revenues were $33.62 million with expenditures at $34.99 million, which is a deficit of $1.37 million of revenues under expenditures. The other financing uses decreased the fund balance by $0.59 million, which brings the net change in fund balance for the year to $1.96 million. The decrease in the General Fund’s balance was mostly due to and an increase in public safety contract costs.

The Development Impact Fees Fund (DIF) is a special revenue fund primarily used to collect development impact fees and fund capital improvement projects. The fund ended the year with a fund balance of ($12.14) million, an increase of $1.56 million. The fund balance reflects bonded borrowings for capital improvements to the Coachella Library with $9.82 million funded through the borrowing and the unpaid principal balance reflected in the negative fund balance along with advances from the City’s General Fund for the construction of the City’s Senior and Civic Center. The Development Impact Fund increase was a direct result of an increase in developer fee payments. DIF funds were primarily used to fund street additions, expansions and upgrades.

The Grants Fund is a special revenue fund primarily used to account for grant revenues received from federal, state and local funding sources. The fund ended the year with a fund balance of ($8.02) million a decrease of $3.68 million.

The decrease in fund balance is largely due to the unavailable revenues from fiscal year 2024-25 that were not received in time to be considered current economic resources of this fiscal year and were recognized as revenues in fiscal year 2025-26.

The City’s Capital Projects Fund is primarily used to account for capital improvement projects including streets, storm drains, city facilities, and other significant capital improvements. The fund ended the year with a fund balance of $0.29 million an increase of $0.56 million net change in fund balance for the fiscal year. The change was primarily due to revenue recognition for unavailable revenue for projects that were completed during the year.

Proprietary funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. The proprietary funds include the Coachella Water Authority and the Coachella Sanitary District.

Total net position for proprietary funds finished the year at $51.83 million. The Water Authority accounted for $28.48 million of this total, and the Sanitary District accounted for the remaining $23.35 million.

The Coachella Water Authority’s net position increased by $0.79 million over the fiscal year 2023-24. During the year, the Authority had total operating revenues of $7.51 million and operating expenses of $7.83 million. The Authority’s total operating revenues increased $0.26 million or 3.61 percent over the previous fiscal year, while operating expenses increased $0.44 million or 6.00 percent. A large portion of this increase in operating expenses was due to an increase in salaries and benefit costs of $0.26 million due to addition of staff, a 0.28 million increase in professional service costs for consultants, and a $0.16 million increase in repairs and maintenance costs for facilities.

The Coachella Sanitary District’s net position increased $1.9 million over the fiscal year 2023-24. The District had operating revenues of $7.92 million and operating expenses of $6.79 million. Operating revenues increased $0.39 million or 5.1 percent while operating expenses remained unchained for the year. The increase in operating revenues was due to growth of consumption and new connections. There was also a $0.41 million impact from an error correction relating to capital assets.

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 Capital Asset and Debt Administration
Capital assets: The City’s investment in capital assets for its governmental and business-type activities at June 30, 2025, amounts to $274.63 million (net of accumulated depreciation). The City invests in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, equipment, and intangible leased assets. This amount represents a net increase, which includes additions and deletions amounting to a net increase of $15.09 million.

Governmental activities had the following projects completed and assets placed in service during the fiscal year 2024- 25 (in millions of dollars):

Land $4.86
Buildings and improvements $7.78
Machinery and equipment $0.01
Street Pavement Rehabilitation $2.80
Additional information on the City of Coachella’s capital assets can be found in Note 8 to the financial statements.

Long-term debt: At the end of the current fiscal year, the City’s governmental activities had $36.69 million in bonds, loans payable, compensated absences, claims payable, and net pension, total OPEB liabilities compared to $37.60 million the previous year, a decrease of $0.91 million or 2.41 percent. This decrease was due to an increase in lease payable and a reduction of pension obligation bonds, plus a reduction in net pension liability and total OPEB liability.

Business-type activities had $30.71 million in bonds, loans payable, compensated absences, and net pension, total OPEB liabilities compared to $33.40 million last year, a decrease of $2.69 million or 8.04 percent. This decrease was due to the regular debt service payments for loans, pension obligation and revenue bonds, plus decreases in net pension and total OPEB liabilities. See Note 8 Long-Term Liabilities.

FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024
Land 23,068,061 $ 18,211,458 $ 909,917 $ 909,917 $ 23,977,978 $ 19,121,375 $ Intangible Leased Assets 1,107,179 26,323 214,588 - 26,323 1,321,767 Construction In Progress 27,490,717 31,991,108 4,610,327 1,934,637 32,101,044 33,925,745 Buildings & Improvements 27,043,054 19,265,319 395,745 423,171 27,438,799 19,688,490 Machinery & Equipment 1,227,375 1,220,000 1,510,601 1,740,365 2,737,976 2,960,365 Infrastructure 136,670,106 133,874,353 50,385,331 49,943,710 187,055,437 183,818,063 Totals 216,606,492 $ 204,588,561 $ 58,026,509 $ 54,951,800 $ 274,633,001 $ 259,540,361 $ City of Coachella's Capital Assets Net of Depreciation
Governmental Activities Business-Type Activities Total

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Note: a change in accounting estimate is treated prospectively, prior periods are not restated due to GASB 101 implementation.

General Fund Budgetary Highlights
The City Council revised the budget throughout the fiscal year with midyear revenue and appropriation adjustments, changes made to appropriations for specific identified projects, and approved other revenue and appropriation adjustments after the original budget was adopted.

After accounting for these budget adjustments, the General Fund revenues were $2.17 million higher than the final budgeted amounts. Collections of investment income, increases in the fair value of investments, and additional unexpected other revenues were over budget, but this was somewhat offset by lower-than-expected charges for services and sales tax revenues.

General fund expenditures were $1.55 million higher than the final budgeted amounts. Capital outlay for public works projects was $1.46 million over budget. General government and public safety costs were above budget but offset by savings in community development, engineering, and public works.

Economic Factors and Next Year’s Budget
California’s diverse economy has recovered from the negative effects of the COVID 19 pandemic emergency. Inflation fell to near target levels, but new uncertainties of tariffs and war have left the economy in an uncertain position with rate cuts stopping and inflation indicators showing potential negative consequences. Unemployment has remained relatively unchanged; California’s unemployment rate was 5.4 percent in November 2024 and is 5.4 percent as of February 2026. California's unemployment rate is expected to remain elevated at approximately 5.5% throughout 2026, stemming from a sluggish economy and layoffs, before seeing improvement in 2027. While AI drives job gains in certain sectors, layoffs are concentrated in manufacturing and tech. A recovery is anticipated later, with unemployment potentially dropping to 4.6% in 2027.

In 2025-26 the City of Coachella plans to spend $63.81 million on capital improvements, many of them with a focus on building up the city infrastructure. The funding comes from federal, state, and regional grants, local Measure A, and gas tax revenues. Some of the projects that the City of Coachella will be working in the fiscal year 2025-26 are as follows:

Fire Station Expansion
Library Annex
Civic Center Breakroom
Wellness Center
CRC
FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024
Loans Payable 601,926 $ 682,605 $ 5,140,351 $ 6,606,345 $ 5,742,277 $ 7,288,950 $ Pension Obligation Bonds 9,604,041 10,365,075 3,835,959 4,139,925 13,440,000 14,505,000 Revenue Bonds 13,722,173 14,299,329 16,491,060 17,536,301 30,213,233 31,835,630 Lease Payable 6,171,056 5,231,129 2,188,564 2,037,143 8,359,620 7,268,272 Compensated Absences 1,097,122 721,271 656,750 403,404 1,753,872 1,124,675 Claims Payable 999,741 1,145,642 - - 999,741 1,145,642 Net Pension Liability (Asset) 2,190,967 2,680,488 1,018,587 1,130,346 3,209,554 3,810,834 Total OPEB Liability 2,294,693 2,474,688 1,380,445 1,543,752 3,675,138 4,018,440 Totals 36,681,719 $ 37,600,227 $ 30,711,716 $ 33,397,216 $ 67,393,435 $ 70,997,443 $ City of Coachella's Long-term Debt
Governmental Activities Business-Type Activities Total

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 LLMD 13 District Improvements
Veteran's Park Splash Pad
Dateland Skatepark Rehabilitation
Sierra Vista Park Restroom Replacement
Park Tot Lot Ave 53
Bagdouma Park Restroom
Rancho Las Flores Park Expansion
Bagdouma Restroom
Shady Lane & Amezcua Septic to Sewer Conversion
Capacity Imp. Tyler from Ave 53 to Ave 54
Capacity Improvements - Ave 50 from Coronado to Harrison SCADA System Upgrade
Park Drywell Project
Avenue 50 Bridge (Over Whitewater Channel)
New Interchange @ Ave 50 & 86S EXPY
Ave 50 Widening Project (Calhoun to Harrison)
Street pavement Rehab Phase 21
Street Pavement Rehab Phase 22
Avenue 50 Bridge Coating
Dillon Road Bridge Coating
ATP HWY 111 and Ave 54 Bike Lanes
Street Pavement Rehab Phase 23
Coachella Valley Arts and Music Line
Airport Blvd Bridge
TCC Urban Greening

TCC ATP
Street Pavement Rehab Phase 24
Dillon Road Rehab
Avenue 50 Realignment (Oates Ln to Tyler Street)
HSIP Cycle 12
Safe Streets for All
Shady Lane & Amezcua Water System Consolidation

3.6Mg Reservoir Interior Relining
Whitewater Wash Bridge Pipeline @ Ave 50
Valve Replacement
Well 20
SCADA System Upgrade
Well 16 Rehab
Hexavalent Chromium Treatment
Meter Exchange Project 2025/26
Sales Tax: The City’s sales taxes decreased in the fiscal year 2024-25 and are projected to decrease in the fiscal year 2025-26. California sales tax revenues are decreasing due to factors including higher interest rates, elevated inflation, a shift in consumer spending from taxed goods to untaxed services, and the unwinding of pandemic-era revenue spikes.

Sales tax revenues decreased by $0.58 million compared to the fiscal year 2023-24. During the fiscal year 2024-25, Sales Tax Revenue was $11.47 million.

Item 23.

City of Coachella
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Revenue Outlook: Overall tax revenues are expected to be steady as the economy continues to grow albeit at a slower pace, but federal policies could impact the economic growth and reduce state revenues. Property and sales taxes are expected to grow moderately. Growth is currently hedged in development related fee revenues as investment activity slows.

Expenditure Outlook: The fiscal year 2025-26 will see General Fund expenditures budgeted at $39.22 million. The Public Safety budget continues to dominate with a police services budget of $12.35 million, which represents 31.49 percent of the General Fund budget. Assessments from the public safety community facilities district (CFD) offset some of the burdens of providing police and fire services to a growing population as well as the Utility User Tax that is expected to provide $3.50 million in revenue to the General Fund.

Requests for information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department at the City of Coachella, 53-990 Enterprise Way, Coachella California 92236 or via email at [email protected].

Item 23.

BASIC FINANCIAL STATEMENTS
15

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Item 23.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
17

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18

Item 23.

Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 43,047,990 $ 13,496,301 $ 56,544,291 $ Restricted cash - 12,172,308 12,172,308
Investments with fiscal agent 1,995,741 1,627,502 3,623,243 Accounts receivable 1,764,252 2,377,298 4,141,550 Interest receivable 285,065 136,120 421,185 Internal balance 2,001,670 (2,001,670) - Due from other governments 13,107,144 59,621 13,166,765 Prepaid items 2,006,264 16,916 2,023,180 Deferred special assessment - 2,188,380 2,188,380 Loans receivable 3,738,046 - 3,738,046 Lease receivable - 944,740 944,740 Capital assets not being depreciated 50,558,778 5,520,244 56,079,022 Capital assets being depreciated and amortized, net 166,047,714 52,506,265 218,553,979 Total Assets 86,279,144 287,317,545 373,596,689

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 125,049 125,049 Pension related items 3,124,054 1,584,227 4,708,281 Other postemployments benefits related items 156,609 260,330 416,939 Total Deferred Outflows of Resources 1,865,885 3,384,384 5,250,269 LIABILITIES Accounts payable and accrued liabilities 9,283,662 2,069,974 11,353,636 Retention payable 613,236 215,290 828,526 Deposits payable 597,095 306,615 903,710 Due to other governments 13,373 - 13,373 Unearned revenue 4,871,733 1,008,180 5,879,913 Interest payable 199,911 312,349 512,260 Total OPEB liabilities, due within one year 93,821 56,440 150,261 Long-term liabilities:

Due within one year 3,438,748 2,916,257 6,355,005 Due in more than one year 24,873,936 29,279,802 54,153,738 Net pension liabilities, due in more than one year 2,190,967 1,018,587 3,209,554 Total OPEB liabilities, due in more than one year 2,200,872 1,324,005 3,524,877 Total Liabilities 34,624,124 52,260,729 86,884,853 DEFERRED INFLOWS OF RESOURCES Pension related items 2,237,042 860,135 3,097,177 Other postemployment benefits related items 1,366,981 822,351 2,189,332 Lease related items - 938,798 938,798
Total Deferred Inflows of Resources 1,682,486 4,542,821 6,225,307 NET POSITION Net investment in capital assets 196,224,441 35,728,243 231,952,684 Restricted for:

Low income housing 6,407,361 - 6,407,361 Highways and streets 4,349,873 - 4,349,873 Capital projects 9,552,233 12,172,308 21,724,541 Debt service - 24,894 24,894 Public safety - 141,589 141,589 Pension obligation 899,123 358,897 1,258,020 Fire protection 2,264,368 - 2,264,368 Total restricted 12,556,099 23,614,547 36,170,646 Unrestricted 14,059,391 3,554,077 17,613,468 Total Net Position $ 51,838,419 233,898,379 $ 285,736,798 $ City of Coachella
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 19

Item 23.

Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental Activities:

General government 13,316,990 $ 17,790 $ 262,444 $ - $ 280,234 $ Public safety 17,400,860 393,515 4,257,043 804,314 5,454,872 Community development 5,969,173 1,022,962 1,765,300 - 2,788,262 Public works 12,585,275 3,763,100 12,175,390 5,566,827 21,505,317 Parks and recreation 3,518,920 2,250 - 314,536 316,786 Interest on long-term debt 1,079,008 - - - - Total governmental activities 53,870,226 5,199,617 18,460,177 6,685,677 30,345,471 Business-type Activities:

Water utility 8,278,124 6,859,284 - 1,624,062 8,483,346 Sewer utility 7,283,012 7,920,643 - 1,805,873 9,726,516 Total business-type activities 15,561,136 14,779,927 - 3,429,935 18,209,862 Total primary government $ 19,979,544 69,431,362 $ 18,460,177 $ 10,115,612 $ 48,555,333 $ (Continued)
Program Revenues
City of Coachella
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 20

Item 23.

Governmental Business-type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (13,036,756) $ - $ (13,036,756) $
Public safety (11,945,988) - (11,945,988) Community development (3,180,911) - (3,180,911) Public works 8,920,042 - 8,920,042 Parks and recreation (3,202,134) - (3,202,134) Interest on long-term debt (1,079,008) - (1,079,008) Total governmental activities (23,524,755) - (23,524,755) Business-type Activities:

Water utility - 205,222 205,222 Sewer utility - 2,443,504 2,443,504 Total business-type activities - 2,648,726 2,648,726 Total primary government 2,648,726 (23,524,755) (20,876,029) General Revenues:

Property taxes 8,945,307 247,664 9,192,971
Sales and use tax 11,473,654 - 11,473,654
Franchise taxes 1,240,236 - 1,240,236
Transient occupancy tax 1,961,515 - 1,961,515
Utility users tax 3,260,719 - 3,260,719
Construction tax 340,412 - 340,412
Cannabis tax 612,046 - 612,046
Business License 775,581 - 775,581
Investment income 2,048,964 1,209,501 3,258,465
Other revenue 1,322,644 655,313 1,977,957
Transfers (2,048,850) 2,048,850 - Total general revenues and transfers 34,029,928 63,628 34,093,556 Change in Net Position 10,505,173 2,712,354 13,217,527
Net Position
Beginning of year, as previously
presented as of June 30, 2024 223,443,646 48,707,586 272,151,232 Change in accounting principle (GASB 101) (50,440) 4,499 (45,941) Error correction - 413,980 413,980 Beginning of year, as restated Note (Note 16) 223,393,206 49,126,065 272,519,271 End of year $ 51,838,419 233,898,379 $ 285,736,798 $ (Concluded)
Net (Expense) Revenue and Changes in Net Position
City of Coachella
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 21

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22

Item 23.

FUND FINANCIAL STATEMENTS
23

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Item 23.

GOVERNMENTAL FUND FINANCIAL STATEMENTS
25

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General Development Grants Capital
Fund Impact Fees Fund Projects Fund
ASSETS
Cash and investments 23,809,305 $ 3,970,292 $ 5,435,938 $ - $ Receivables:

Accounts receivable 538,601 - - 1,214,309 Interest 186,168 21,345 37,123 - Due from other governments 2,683,246 - 9,660,870 - Deferred special assessment - - - - Loans - - - - Lease 944,740 - - - Due from other funds 7,901,957 - - 10,174,239 Prepaid items 1,955,030 - - - Restricted assets:

Cash and investments with fiscal agent - - - - Advance to other funds 11,164,802 - - - Total assets $ 3,991,637 49,183,849 $ 15,133,931 $ 11,388,548 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 4,298,671 $ - $ 201,585 $ 2,410,522 $ Retention payable - - - 613,236 Accrued wages payable 376,015 - 12,291 - Interest payable - - - - Due to other governments - - - - Due to other funds 7,900 27,247 9,134,907 7,157,607 Unearned revenue 44,284 126,897 4,538,798 161,754 Deposits payable 566,750 - - 30,345 Advance from other funds - 15,977,865 - - Total liabilities 16,132,009 5,293,620 13,887,581 10,373,464 Deferred Inflows of Resources:

Unavailable revenue 560,055 - 9,263,294 726,145 Leases 938,798 - - - Total deferred inflows of resources - 1,498,853 9,263,294 726,145 Fund Balances:

Nonspendable 13,097,809 - - - Restricted - - - 288,939 Committed 9,804,903 - - - Assigned 7,238,113 - - - Unassigned (Deficit) 12,250,551 (12,140,372) (8,016,944) - Total fund balances (12,140,372) 42,391,376 (8,016,944) 288,939 Total liabilities, deferred inflows of resources and fund balances $ 3,991,637 49,183,849 $ 15,133,931 $ 11,388,548 $ (Continued)
Special Revenue Funds
City of Coachella
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 26

Item 23.

Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 9,832,455 $ 43,047,990 $
Receivables:

Accounts receivable 11,342 1,764,252 Interest 40,429 285,065 Due from other governments 763,028 13,107,144 Deferred special assessment 2,188,380 2,188,380 Loans 3,738,046 3,738,046 Lease - 944,740 Due from other funds 711,000 18,787,196 Prepaid items 51,234 2,006,264 Restricted assets:

Cash and investments with fiscal agent 1,627,502 1,627,502 Advance to other funds 8,473,063 19,637,865 Total assets $ 107,134,444 27,436,479 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 1,975,709 $ 8,886,487 $ Retention payable - 613,236 Accrued wages payable 8,869 397,175 Interest payable - - Due to other governments 13,373 13,373 Due to other funds 2,459,535 18,787,196 Unearned revenue - 4,871,733 Deposits payable - 597,095 Advance from other funds 1,658,330 17,636,195 Total liabilities 51,802,490 6,115,816 Deferred Inflows of Resources:

Unavailable revenue 2,493,022 13,042,516
Leases - 938,798 Total deferred inflows of resources 13,981,314 2,493,022 Fund Balances:

Nonspendable 51,234 13,149,043
Restricted 10,843,147 11,132,086
Committed 9,133,619 18,938,522
Assigned - 7,238,113 Unassigned (Deficit) (1,200,359) (9,107,124) Total fund balances 41,350,640 18,827,641 Total liabilities, deferred inflows of resources and fund balances $ 107,134,444 27,436,479 $ (Concluded)
June 30, 2025
City of Coachella
Balance Sheet (Continued)
Governmental Funds
See accompanying Notes to the Basic Financial Statements. 27

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Item 23.

Fund Balances of Governmental Funds 41,350,640 $
Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets and intangible asset used in governmental activities are not financial resources and therefore are not reported in the government funds. 216,606,492
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the government-wide financial statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. 13,042,516 Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position:

Compensated absences (1,097,122) Long-term debt (30,099,196) Claims payable (999,741) Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds. (199,911)
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Deferred outflows of resources related to pensions 3,124,054 Net pension liability (2,190,967)
Deferred inflows of resources related to pensions (2,237,042) Net other postemployment benefits liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Deferred outflows of resources related to other postemployment benefits 260,330 Net other postemployment benefits liability (2,294,693) Deferred inflows of resources related to other postemployment benefits (1,366,981) Net Position of Governmental Activities 233,898,379 $
City of Coachella
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 29

Item 23.

General Development Grants Capital
Fund Impact Fees Fund Projects Fund
REVENUES:

Taxes 28,241,563 $ - $ - $ - $
Licenses, permits and fees 700,540 - - - Charges for services 601,270 - - - Fines, forfeitures and penalties 344,786 - - - Intergovernmental 385,269 - 7,551,370 - Developer fees - 3,297,276 - - Special assessments - - - - Investment income 1,587,398 90,656 186,961 - Net increase (decrease) in the fair value of investments 546,232 79,400 - - Other revenue 1,216,068 - 485,548 682,045 Total revenues 3,467,332 33,623,126 8,223,879 682,045 EXPENDITURES:

Current:

General government 11,400,431 - - - Public safety - police 11,988,470 - - - Public safety - fire - - - - Community development 3,613,194 - 2,090,400 - Engineering 933,756 - - - Public works 2,497,152 7,200 38,025 - Public works - parks and recreation 2,678,794 - - - Capital outlay 1,567,686 1,506,874 - 12,426,117 Debt service:

Principal retirement 80,679 303,056 - - Interest and fiscal charges 13,441 313,949 - - Total expenditures 1,908,702 34,995,980 2,128,425 12,426,117 Excess (deficiency) of revenues over expenditures 1,558,630 (1,372,854) 6,095,454 (11,744,072) OTHER FINANCING SOURCES (USES):

Inception of lease liability 1,408,637 - - - Transfers in 5,335,595 - - 12,894,199 Transfers out (7,329,685) - (9,778,220) (588,774) Total other financing sources (uses) - (585,453) (9,778,220) 12,305,425 Net change in fund balances 1,558,630 (1,958,307) (3,682,766) 561,353 FUND BALANCES:

Beginning of year, as previously
presented as of June 30, 2024 44,349,683 (13,699,002) (4,334,178) (272,414) Change within financial reporting entity:
(major to nonmajor) - - - - Beginning of year, as restated (Note 16) 44,349,683 (13,699,002) (4,334,178) (272,414) End of year $ (12,140,372) 42,391,376 $ (8,016,944) $ 288,939 $ (Continued)
Special Revenue Funds
City of Coachella
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 30

Item 23.

Debt Repayment Nonmajor Total
Debt Service Governmental Governmental
Fund Funds Funds
REVENUES:

Taxes 1,351,627 $ 29,593,190 $
Licenses, permits and fees - 700,540 Charges for services 51,700 652,970 Fines, forfeitures and penalties - 344,786
Intergovernmental 3,376,507 11,313,146 Developer fees - 3,297,276 Special assessments 5,848,133 5,848,133 Investment income 169,485 2,034,500
Net increase (decrease) in the
fair value of investments 55,956 681,588 Other revenue 8,915 2,392,576 Total revenues 56,858,705 10,862,323 EXPENDITURES:

Current:

General government - 11,400,431 Public safety - police 503 11,988,973 Public safety - fire 5,303,416 5,303,416 Community development - 5,703,594 Engineering - 933,756 Public works 2,647,024 5,189,401 Public works - Parks and recreation - 2,678,794 Capital outlay 4,604,245 20,104,922 Debt service:

Principal retirement 1,456,688 1,840,423 Interest and fiscal charges 978,075 1,305,465 Total expenditures 66,449,175 14,989,951 Excess (deficiency) of revenues over expenditures (9,590,470) (4,127,628) OTHER FINANCING SOURCES (USES):

Inception of lease liability - 1,408,637
Transfers in 6,151,730 24,381,524
Transfers out (4,635,995) (22,332,674)
Total other financing sources (uses) 3,457,487 1,515,735 Net change in fund balances (6,132,983) (2,611,893) FUND BALANCES:

Beginning of year, as previously
presented as of June 30, 2024 11,369,278 10,070,256 47,483,623 Change within financial reporting entity:
(major to nonmajor) (11,369,278) 11,369,278 - Beginning of year, as restated (Note 16) - 21,439,534 47,483,623 End of year $ 18,827,641 - $ 41,350,640 $ (Concluded)
For the Year Ended June 30, 2025
City of Coachella
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
See accompanying Notes to the Basic Financial Statements. 31

Item 23.

Net Change in Fund Balances - Governmental Funds (6,132,983) $ Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlay as an expenditure in the full amount as current financial resources are used. However, in the Statement of Activities the cost of these assets is allocated over the estimated useful life as depreciation expense.

Capital outlay 19,385,695
Depreciation (6,899,166) Net effect on disposal of capital assets (468,598) Revenues in the Statement of Activities that do not provide current financial resources are not reported in the governmental funds. 5,636,354
Governmental funds report activity of long-term liabilities as revenues and expenditures, but they are included as increases and reductions on the long-term liabilities in the Statement of Net Position.

Long-term debt principal payments 1,840,423
Issuance of debt (1,408,637)
Claim payments 145,901
In the Statement of Activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This represents the change in compensated absences during the year. (325,411) Debt service expenditures, as well as interest, are reported only when payment is due in the governmental funds. In the Statement of Activities, interest and amortization expenses are recognized in the period in which the liability is incurred. 57,947 Certain pension 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. (1,259,940) Certain other postemployment benefits 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. (66,412) Change in Net Position of Governmental Activities 10,505,173 $ City of Coachella
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental-Wide Statement of Activities For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 32

Item 23.

PROPRIETARY FUND FINANCIAL STATEMENTS
33

Item 23.

Water Sanitary
Authority District Total
ASSETS
Current Assets:

Cash and investments 3,422,052 $ 10,074,249 $ 13,496,301 $ Restricted cash 12,172,308 - 12,172,308 Investments with fiscal agent 1,356,977 638,764 1,995,741 Accounts receivable, net 1,436,812 940,486 2,377,298 Interest receivable 88,716 47,404 136,120 Due from other government - 59,621 59,621 Prepaid items 646 16,270 16,916 Total current assets 18,477,511 11,776,794 30,254,305 Noncurrent Assets:

Capital assets:

Capital assets not being depreciated 1,363,503 4,156,741 5,520,244 Capital assets being depreciated and amortized 65,372,910 64,109,273 129,482,183 Less: accumulated depreciation and amortized (39,489,963) (37,485,955) (76,975,918) Total capital assets 27,246,450 30,780,059 58,026,509 Total noncurrent assets 27,246,450 30,780,059 58,026,509 Total assets 42,556,853 45,723,961 88,280,814

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges from debt refunding - 125,049 125,049 Deferred amount related to pensions 728,440 855,787 1,584,227 Deferred amount related to other postemployment benefits 78,283 78,326 156,609 Total deferred outflows of resources 1,059,162 806,723 1,865,885 (Continued) Business-type Activities
Enterprise Funds
City of Coachella
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 34

Item 23.

Water Sanitary
Authority District Total

LIABILITIES
Current Liabilities:

Accounts payable and accrued liabilities 911,742 961,705 1,873,447 Retention payable 108,335 106,955 215,290
Accrued wages payable 98,730 97,797 196,527
Deposits payable 306,615 - 306,615
Interest payable 176,601 135,748 312,349
Unearned revenue - 1,008,180 1,008,180
Advance from other fund, due within one year 22,023 - 22,023 Compensated absences, due within one year 205,632 207,535 413,167 Bonds payable, due within one year 895,285 497,598 1,392,883 Loans payable, due within one year - 1,567,252 1,567,252 Lease liability, due within one year 32,723 32,723 65,446 Total other postemployment benefits liability, due within one year 28,212 28,228 56,440 Total current liabilities 2,785,898 4,643,721 7,429,619 Noncurrent Liabilities:

Advance from other fund, due in more than one year 1,979,647 - 1,979,647 Compensated absences, due in more than one year 103,381 140,202 243,583 Bonds payable, due in more than one year 11,160,913 9,745,724 20,906,637 Loans payable, due in more than one year - 3,573,099 3,573,099 Lease liability, due in more than one year 75,308 75,309 150,617 Net pension liability, due in more than one year 468,354 550,233 1,018,587 Total other postemployment benefits liability, due in more than one year 661,819 662,186 1,324,005 Total noncurrent liabilities 14,449,422 14,746,753 29,196,175 Total liabilities 19,390,474 17,235,320 36,625,794

DEFERRED INFLOWS OF RESOURCES
Deferred amount related to pensions 395,497 464,638 860,135 Deferred amount related to other postemployment benefits 411,061 411,290 822,351 Total deferred inflows of resources 875,928 806,558 1,682,486

NET POSITION
Net investment in capital assets 17,962,134 17,766,109 35,728,243 Restricted for capital projects 12,172,308 - 12,172,308 Restricted for pension obligation bonds 170,984 187,913 358,897 Restricted for debt service 24,124 770 24,894
Unrestricted (1,840,744) 5,394,821 3,554,077
Total Net Position $ 23,349,613 28,488,806 $ 51,838,419 $ (Concluded)
Enterprise Funds
City of Coachella
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
Business-type Activities
See accompanying Notes to the Basic Financial Statements. 35

Item 23.

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36

Item 23.

Water Sanitary
Authority District Total

OPERATING REVENUES
Charges for services 6,859,284 $ 7,920,643 $ 14,779,927 $ Other revenue 654,168 1,145 655,313 Total operating revenue 7,513,452 7,921,788 15,435,240 OPERATING EXPENSES Salaries and benefits expense 2,667,695 2,765,088 5,432,783 Pension expense 319,567 374,043 693,610 OPEB expense 51,151 40,842 91,993 Administrative and general 598,860 365,041 963,901 Professional services 574,420 425,934 1,000,354 Materials and supplies 437,386 258,226 695,612 Repairs and maintenance 660,374 134,684 795,058 Utilities 1,312,082 882,058 2,194,140 Depreciation and amortization 1,204,808 1,545,071 2,749,879 Total operating expenses 7,826,343 6,790,987 14,617,330 Operating income (312,891) 1,130,801 817,910 NONOPERATING REVENUES (EXPENSES) Property taxes - 247,664 247,664
Investment income 499,422 242,135 741,557
Net increase in the
fair value of investments 312,314 155,630 467,944
Interest expense and fiscal charges (451,781) (492,025) (943,806) Total nonoperating revenues (expenses) 359,955 153,404 513,359 Loss before contributions and transfers 47,064 1,284,205 1,331,269 CONTRIBUTIONS AND TRANSFERS Connection charges 998,534 594,591 1,593,125
Intergovernmental revenue 625,528 1,211,282 1,836,810
Transfer in 200,000 - 200,000 Transfer out (1,086,287) (1,162,563) (2,248,850) Total contributions and transfers 737,775 643,310 1,381,085 Change in net position 784,839 1,927,515 2,712,354

NET POSITION
Beginning of year, as previously presented as of June 30, 2024 27,693,958 21,013,628 48,707,586 Change in accounting principle (GASB 101) 10,009 (5,510) 4,499 Error correction - 413,980 413,980 Beginning of year, as restated Note (Note 16) 27,703,967 21,422,098 49,126,065 End of year $ 23,349,613 28,488,806 $ 51,838,419 $ Business-type Activities
Enterprise Funds
City of Coachella
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 37

Item 23.

Water Sanitary
Authority District Total
Cash Flows From Operating Activities:

Cash received from customers 7,534,144 $ 9,075,952 $ 16,610,096 $ Cash payments to vendors and suppliers (3,134,728) (1,442,451) (4,577,179) Cash payments to employees for services (2,602,242) (2,680,587) (5,282,829) Net cash provided by operating activities 4,952,914 1,797,174 6,750,088 Cash Flows From Noncapital Financing Activities:

Property taxes received - 247,664 247,664 Cash transferred/paid to other funds (1,162,563) (886,287) (2,048,850) Principal paid on pension obligation bonds (159,241) (144,725) (303,966) Interest paid on pension obligation bonds (51,749) (47,031) (98,780) Net cash (used in) noncapital financing activities (1,125,889) (1,078,043) (2,203,932) Cash Flows From Capital and Related Financing Activities:

Acquisition and construction of capital assets (3,040,904) (2,343,414) (5,384,318) Connection charges received 998,534 594,591 1,593,125 Intergovernmental revenue 625,528 1,207,483 1,833,011 Principal paid on capital debt (663,166) (1,869,265) (2,532,431) Interest paid on capital debt (506,457) (451,791) (958,248) Net cash provided by (used in) capital and related financing activities (2,586,465) (2,862,396) (5,448,861) Cash Flows From Investing Activities:

Investment income received 825,930 397,093 1,223,023 Net cash provided by investing activities 397,093 825,930 1,223,023 Net change in cash and cash equivalents (1,041,404) 1,361,722 320,318 Cash and Cash Equivalents:

Beginning of year 17,992,741 9,351,291 27,344,032 End of year 16,951,337 $ 10,713,013 $ 27,664,350 $ Cash and Cash Equivalents:

Cash and investments 3,422,052 $ 10,074,249 $ 13,496,301 $ Restricted cash 12,172,308 - 12,172,308 Investment with fiscal agent 1,356,977 638,764 1,995,741 Total cash and cash equivalents 16,951,337 $ 10,713,013 $ 27,664,350 $ Noncash Capital and Related Financing Activities
Amortization of premium on bonds and deferred charges $ 114 (88,524) $ (88,410) $ Inception of lease asset $ 136,197 136,197 $ 272,394 $
Issuance of lease liability $ 136,197 136,197 $ 272,394 $ Noncash Investing Activities
Net increase in fair value of investment $ 155,630 312,314 $ 467,944 $ (Continued)
Business-type Activities
Enterprise Funds
City of Coachella
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 38

Item 23.

Water Sanitary
Authority District Totals
Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities:

Operating income (loss) (312,891) $ 1,130,801 $ 817,910 $ Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:

Depreciation and amortization 1,204,808 1,545,071 2,749,879 Changes in assets and liabilities:

Decrease (increase) in accounts receivable 58,288 145,984 204,272 Decrease (increase) in prepaid items 1,683 3,103 4,786 Decrease (increase) in deferred outflows of resources - pensions 716,582 830,943 1,547,525 Decrease (increase) in deferred outflows of resources - OPEB 26,674 27,198 53,872 Increase (decrease) in accounts payable 446,711 620,389 1,067,100 Increase (decrease) in accrued wages payable 8,478 10,311 18,789 Increase (decrease) in deposits payable (16,819) - (16,819) Increase (decrease) in unearned revenue - 1,008,180 1,008,180 Increase (decrease) in advance from other fund (20,777) - (20,777) Increase (decrease) in compensated absences 123,105 134,740 257,845 Increase (decrease) in net pension liability (53,199) (58,560) (111,759) Increase (decrease) in net OPEB liability (79,768) (83,539) (163,307) Increase (decrease) in deferred inflows of resources - pensions (343,816) (398,340) (742,156) Increase (decrease) in deferred inflows of resources - OPEB 38,115 36,633 74,748 Total adjustments 2,110,065 3,822,113 5,932,178 Net cash provided by operating activities $ 4,952,914 1,797,174 $ 6,750,088 $ (Concluded)
Business-type Activities
Enterprise Funds
City of Coachella
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 39

Item 23.

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40

Item 23.

FIDUCIARY FUND FINANCIAL STATEMENTS
41

Item 23.

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42

Item 23.

Successor
Agency
Private-Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments 656,418 $ 3,242,446 $
Cash and investments with fiscal agent 2,126 - Receivables:

Accounts - 127,118 Interest - 13,682 Prepaid items 147,042 - Land held for resale 906,960 - Total assets 3,383,246 1,712,546 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 10,249 - LIABILITIES
Accounts payable 1,500 49,767 Accrued interest 306,437 - Long-term liabilities:

Due within one year 2,141,886 - Due in more than one year 21,738,083 - Total liabilities 49,767 24,187,906 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding 175,303 - NET POSITION (DEFICIT) Restricted for:

Individuals, organization, and other governments (22,640,414) $ 3,333,479 $ City of Coachella
Statement of Fiduciary Net Position
June 30, 2025
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements. 43

Item 23.

Successor
Agency
Private-Purpose
Trust Fund Custodial Funds
ADDITIONS:

Redevelopment Property Tax Trust Fund 2,990,448 $ - $
Assessment revenue collected - 431,092 Investment income 8,902 66,358 Net increase in the fair value of investments - 45,709
Refuse revenue collected for other organization - 3,726,499 Other revenue 86,983 - Total additions 4,269,658 3,086,333 DEDUCTIONS:

Interest and fiscal charges 800,974 - Administrative expense 35,193 - Payment of special assessment district expense - 385,794 Payment of refuse revenue to other organization - 3,613,356 Total deductions 3,999,150 836,167 Change in net position 270,508 2,250,166 NET POSITION (DEFICIT):

Beginning of year (24,890,580) 3,062,971 End of year $ 3,333,479 (22,640,414) $ City of Coachella
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 44

Item 23.
45 NOTES TO THE BASIC FINANCIAL STATEMENTS

Item 23.
46 This page intentionally left blank.

Item 23.

City of Coachella
Index to the Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
47 Page
Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies ...................................... 49 A. Financial Reporting Entity ..................................................................................................................... 49 B. Measurement Focus, Basis of Accounting and Financial Statement Presentation ................................ 50 C. Cash and Investments ............................................................................................................................ 52 D. Fair Value Measurement ........................................................................................................................ 53 E. Property Taxes Receivable .................................................................................................................... 53 F. Prepaid Items ......................................................................................................................................... 53 G. Land Held for Resale ............................................................................................................................. 53 H. Interfund Transactions ........................................................................................................................... 53 I. Lease Receivable and Related Deferred Inflows of Resources ............................................................. 54 J. Capital Assets ........................................................................................................................................ 54 K. Unearned and Unavailable Revenue ...................................................................................................... 55 L. Lease Payable and Right-to-Use Assets ................................................................................................ 55 M. Long-Term Liabilities ............................................................................................................................ 56 N. Compensated Absences ......................................................................................................................... 56 O. Claims Payable ...................................................................................................................................... 56 P. Pension ................................................................................................................................................... 57 Q. Other Postemployment Benefits ............................................................................................................ 57 R. Deferred Outflows and Inflows of Resources ........................................................................................ 57 S. Net Position ........................................................................................................................................... 58 T. Fund Balances ........................................................................................................................................ 58 U. Use of Estimates .................................................................................................................................... 59 V. Implementation of New GASB Pronouncements .................................................................................. 59 Note 2 – Cash and Investments ................................................................................................................................. 60 A. Demand Deposits ................................................................................................................................... 60 B. Investments Authorized by the California Government Code and the City's Investment Policy ................................................................................................................... 60 C. Investments Authorized by Debt Agreements ....................................................................................... 61 D. Fair Value Measurement ........................................................................................................................ 62 E. Risk Disclosures .................................................................................................................................... 63 F. Investments in Local Agency Investment Fund (“LAIF”) .................................................................... 64 Note 3 – Interfund Transactions ............................................................................................................................... 65 A. Due From/To Other Funds ..................................................................................................................... 65 B. Advances To/From Other Funds ............................................................................................................ 65 C. Transfers ................................................................................................................................................ 67 Note 4 – Deferred Special Assessment Receivable ................................................................................................... 68 Note 5 – Loans Receivable ......................................................................................................................................... 68 Note 6 – Lease Receivable .......................................................................................................................................... 68 Note 7 – Capital Assets ............................................................................................................................................... 69

Item 23.

City of Coachella
Index to the Notes to the Basic Financial Statements (Continued) For the Fiscal Year Ended June 30, 2025
48 Page
Note 8 – Long-Term Liabilities ................................................................................................................................. 71 A. Governmental Activities ........................................................................................................................ 71 B. Business-Type Activities ....................................................................................................................... 75 C. Fiduciary Activities ............................................................................................................................... 79 D. Non-City Obligation Debt ..................................................................................................................... 81 Note 9 – Compensated Absences ............................................................................................................................... 81 Note 10 – Risk Management ...................................................................................................................................... 81 Note 11 – Pensions ...................................................................................................................................................... 82 A. General Information About the Pension Plan ........................................................................................ 82 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions ....................................................................... 85 Note 12 – Other Postemployment Benefits (“OPEB”) Plan .................................................................................... 89 A. General Information About the OPEB Plan ........................................................................................... 89 B. Total OPEB Liability ............................................................................................................................. 90 C. Changes in the Net OPEB Liability ....................................................................................................... 91 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB .................................................................................................................. 92 Note 13 – Net Investment in Capital Assets .............................................................................................................. 92 Note 14 – Classification of Fund Balances ................................................................................................................ 93 Note 15 – Individual Fund Disclosure ....................................................................................................................... 94 A. Expenditures in Excess of Appropriation .............................................................................................. 94 B. Deficit Net Positions and Fund Balances............................................................................................... 94 Note 16 – Change to or within the Financial Reporting Entity and Restatements ............................................... 95

Item 23.

City of Coachella
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
49 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies A. Financial Reporting Entity
The City of Coachella (the "City") was incorporated under the general laws of the State of California as a General Law City. The City operates under a Council-Manager form of government, and provides the following services:
general administrative services, public safety services, public works, parks and recreation, planning, community development, fire protection, law enforcement services, water, sanitation, and sewer services.

The financial statements of the City include the financial activities of the City, the Coachella Water Authority, the Coachella Sanitary District, the Coachella Fire Protection District, and the Coachella Financing Authority. The criteria for including an agency, institution, authority or other organization in a governmental unit's financial reporting entity is financial accountability. Financial accountability includes, but is not limited to 1) selection of the governing body, 2) imposition of will, 3) ability to provide a financial benefit to or impose financial burden on and 4) fiscal dependency.

There may, however, be factors other than financial accountability that are so significant that exclusion of a particular agency from a reporting entity's financial statements would be misleading. These other factors include scope of public service and special financing relationships.

Based upon the application of these criteria, an agency, institution or authority, may be included as a component unit in the primary government's financial statements. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Each blended component unit presented has a June 30 year-end. The basis for blending the component units is that their governing bodies are substantively the same as the City's Council and their operations are integral to the primary government. The following is a brief review of each component unit included in the primary government's reporting entity.

Coachella Water Authority – The Coachella Water Authority (the “Water Authority”) was formed on July 1, 2003, under a joint powers agreement. The City owns the water enterprise and leases it to the Water Authority on a 55- year lease. The purpose of the Water Authority is to provide water service to the citizens of the City as well as commercial and agricultural consumers. The City provides management assistance to the District and the members of the City Council also act as the governing body of the District. The Water Authority's activities are blended with those of the City in these financial statements and are reported as an enterprise fund.

Coachella Sanitary District – The Coachella Sanitary District (the “Sanitary District”) was created to provide sanitation and sewage treatment services to the City. The City provides management assistance to the Sanitary District and the members of the City Council also act as the governing body of the Sanitary District. The Sanitary District's activities are blended with those of the City in these financial statements and are reported as an enterprise fund.

Coachella Fire Protection District – The Coachella Fire District (the “Fire District”) was created to provide fire protection services to the residents of the City. The City provides management assistance to the District and the members of the City Council also act as the governing body of the District. The District's activities are blended with those of the City in these financial statements and are reported as a special revenue fund.

Coachella Financing Authority – The Coachella Financing Authority (the “Financing Authority”) was formed to issue debt, loans and loan proceeds to the City. The Authority is considered a component unit of the City and has been blended into the City's financial statements as Debt Repayment Debt Service Fund for reporting purposes as the services are provided entirely to the City.

There are no separately issued financial statements for these blended component units.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
50 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statement Presentation The basic financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for governmental accounting and financial reporting purposes.

Government-Wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements and eliminations have been made to minimize the double-counting of internal activities. However, interfund service provided and used are not eliminated in the process of consolidation. 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 fee and charges for support.

The government-wide financial statements are presented on an “economic resources” measurement focus and accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred, regardless of the timing of related cash flows. Fiduciary activities of the City are not included in these statements.

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 expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a give function or segments 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 that are not included in the program revenues are reported as general revenues.

Fund Financial Statements
Separate financial statements provide information about the government's funds, including its fiduciary funds and blended component units. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and proprietary funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Major individual governmental and proprietary funds are reported as separate columns in the fund financial statements.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
51 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Governmental Fund Financial Statements
Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period including for property taxes, which is also within 60 days.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Taxes, intergovernmental revenues, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and are therefore recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

The General Fund is used to account for all the financial resources of the City, except for those required to be accounted for in another fund.

The Development Impact Fees Special Revenue Fund is used to account for funds received to mitigate the impact of new development on the City's infrastructure.

The Grants Special Revenue Fund is used to account for grant funds that are reimbursed by federal and state grant agencies that provide funding programs that are based on selective eligibility criteria.

The Capital Projects Fund is used to account for the capital improvement projects which are financed through the governmental funds.

The Debt Repayment Debt Service Fund is used to account for the funding for the issuance of debt and repayments related activities.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and deferred inflows of resources are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position.

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
52 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Proprietary Fund Financial Statements (Continued)
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Capital contributions represent cash or utility plant additions contributed to the City by property owners or developers desiring services that require capital expenditures or capacity commitment. All such capital contributions are reflected as revenues. Depreciation of contributed utility plant is charged to operations.

The City reports the following major proprietary funds:

The Water Authority Enterprise Fund is used to account for the operations of the City's water distribution systems.

The Sanitary District Enterprise Fund is used to account for the cost of providing sewer services to the general public and the user charges by which these costs are recovered.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and a private purpose trust fund. Both custodial funds and the private purpose trust funds are reported using the “economic resources” measurement focus and accounted for on the full accrual basis of accounting.

The City reports the following fiduciary funds:

Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of the Successor Agency to the former Coachella Redevelopment Agency (the “Successor Agency”) and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Custodial Funds – These funds account for resources held by the City in a custodian capacity for Coachella Valley Water District for storm drainage and related capital projects, refuse service provided by Burrtec, Coachella Parks and Recreation Foundation, and special assessment collected for CFD 2018-1 Glenroy debt service payments. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

C. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities. For purposes of the Statement of Cash Flows, the Water Authority Enterprise Fund and Sanitary District Enterprise Fund consider all cash and investments with original maturities of 90 days or less to be cash or cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
53 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) D. Fair Value Measurement
Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

The three levels of the fair value measurement hierarchy are described below:

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

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

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

E. Property Taxes Receivable
Under California law, property taxes are assessed and collected by the counties up to l % of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by the state statutes. Accordingly, the City accrues only those taxes which are received from the County within sixty days after year-end.

Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien Date January 1
Levy Date July 1 to June 30
Due Date November 1 - 1st Installment
February 1 - 2nd Installment
Collection Date December 10 - 1st Installment
April 10 - 2nd Installment
F. Prepaid Items
Certain payments to vendors reflect costs applicable to future periods and are recorded as prepaid items using purchase method. Prepaid bond insurance costs are reported as prepaid items and recognized as an expense over the duration of the related debt.

G. Land Held for Resale
The former Redevelopment Agency acquired several parcels of land as part of its primary purpose to develop or redevelop blighted areas. The properties are held by the Successor Agency at the lower of cost or estimated net realizable value.

H. Interfund Transactions
In the governmental fund financial statements, activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans) or "advances to/from other funds" (i.e., the noncurrent portion of inter-fund loans).

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
54 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) H. Interfund Transactions (Continued)
Noncurrent portions of long-term interfund loan receivables are reported as advances and such amounts for General Fund are offset equally by nonspendable fund balance which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation.

In the government-wide financial statements, these activities have been eliminated.

I. Lease Receivable and Related Deferred Inflows of Resources The City is a lessor for leases of land and buildings and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $12,000 (undiscounted) for lease receivables.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are 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 are recognized as revenue over the life of the lease term in a systematic and rational method.

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 incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.

The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.

Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

J. Capital Assets
Capital assets, which include land, structures, equipment, and infrastructure assets, are reported in the governmentwide and proprietary funds financial statements. Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Capital assets purchased in excess of $5,000 are capitalized if they have an expected useful life in excess of 1 year. Donated capital assets, donated works of art and similar item, and capital assets received in a service arrangement are to be reported at acquisition value at the time of its donation.

Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debt financed capital assets, interest incurred during the construction phase of capital assets of business-type activities is reflected in the capitalization value of the asset constructed, net of interest earned on the invested proceeds over the same period. Capital assets acquired through lease obligations are valued at the present value of future lease payments at the date acquired. Page 278
Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
55 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Capital Assets (Continued)
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary funds.

Depreciation is charges as an expense against operations and accumulated depreciation is reported on the Statement of Net Position.

The range of lives used for depreciation purposes for each capital asset class is as follows:

Assets Years
Buildings 45 years
Machinery and Equipment 5 - 30 years
Office Equipment 5 - 10 years
Water System Improvements 45 - 65 years
Sewer Improvements 25 - 100 years
Infrastructure 45 - 100 years
K. Unearned and Unavailable Revenue
In the government-wide and fund financial statements, unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are payments received in advance, prepaid charges for services, and advance grant funding.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available to pay for current expenditures.

L. Lease Payable and Right-to-Use Assets
The City recognizes lease liabilities and right-to-use assets with an initial, individual value of $12,000 (undiscounted) or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

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

The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
56 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Lease Payable and Right-to-Use Assets (Continued)
The City has a policy to recognize a lease liability and a right-to-use lease asset (lease asset) in the governmentwide financial statements. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by an lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

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.

M. Long-Term Liabilities
In the government-wide and proprietary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts 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 recognized as an expense in the period incurred.

In the governmental fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

N. Compensated Absences
City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. The liability for compensated absences is recognized when leave is earned, based on the employee’s pay rate in effect at the financial statement date, including any applicable salary-related costs. The liability includes only amounts attributable to services already rendered that are more likely than not to be paid or used. The long-term amount is included as a liability in the governmental activities of the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. All of the liability for compensated absences applicable to proprietary funds is reported in those funds.

O. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
57 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) P. Pension
For purposes of measuring the aggregate 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. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement 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.

Q. Other Postemployment Benefits
For purposes of measuring the net other postemployment benefits (“OPEB)” liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, benefit payments are recognized when due and payable in accordance with benefit terms.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2024
Measurement Date June 30, 2025
Measurement Period July 1, 2024 to June 30, 2025
Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The gain and loss 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.

R. Deferred Outflows and Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
58 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) S. Net Position
In the government-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, capital asset related debt net of unspent bond proceeds, deferred charges, and retention payable (if any).

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

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

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s practice is to apply the restricted component of net position first, then use the unrestricted component of net position as needed.

T. Fund Balances
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes as follows:

Nonspendable – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.

Restricted – amounts with constraints placed on their use that are either (a) externally imposed by creditors, granters, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed – amounts that can only be used for specific purposes pursuant to formal action of City Council (highest level of decision-making authority) through ordinances as they constitute the most binding constraint.

These amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action (city ordinance) it employed previously to commit those amounts. This action is taken by a vote of the Council which must be approved by a majority vote. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.

Assigned – amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. The governing council has authorized the City Manager to assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally do not exist temporarily. In other words, an additional action does not normally have to be taken for the removal of the assignment. The authority for assigning fund balance is expressed by the city manager or the appointed designee based on the City's approved policies.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
59 Note 1 – Financial Reporting Entity and Summary of Significant Accounting Policies (Continued) T. Fund Balances (Continued)
Unassigned – amounts that represent the residual net resources in excess of the other classifications. 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. However, in governmental funds other than 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.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s practice is to apply restricted fund balances first, then use unrestricted fund balances as needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
committed, assigned, and unassigned.

U. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

V. Implementation of New GASB Pronouncements
The requirements of the following accounting 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, including necessary retroactive adjustments to financial statement classifications and presentations.

GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of this Statement resulted in a restatement of the beginning fund balance as of July 1, 2024, as presented in Note 16.

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 constraints which may limit a government's ability to acquire resources or control spending. The City has evaluated its exposure to financial risk stemming from concentrations and constraints. Management has determined that no concentration exists for the fiscal year ended June 30, 2025.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
60 Note 2 – Cash and Investments
Cash and investments at June 30, 2025 are classified as follows:

Statement of
Governmental
Activities
Business-type
Activities
Fiduciary Net
Position Total
Cash and investments 43,047,990 $ 13,496,301 $ 3,898,864 $ 60,443,155 $ Restricted cash - 12,172,308 - 12,172,308 Cash and investment with fiscal agent 1,627,502 1,995,741 2,126 3,625,369 Total cash and investments 44,675,492 $ 27,664,350 $ 3,900,990 $ 76,240,832 $ Government-Wide
Statement of Net Position
Cash and investments at June 30, 2025 consisted of the following:

Cash and Investments:

Petty cash 5,500 $
Deposits with financial institutions 17,949,806 Investments 58,285,526 Total cash investments 76,240,832 $
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $17,949,806 at June 30, 2025. Bank balances at that date were $17,907,805, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City’s name as discussed below.

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

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of 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's investment policy.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
61 Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy (Continued) Authorized Investment Type Maturity (1)
Maximum
Percentage of
Portfolio (2)
Maximum
Investment in One
Issuer
Local Agency Investment Fund (LAIF) None 100% 75 Million/account U.S. Treasury 5 years None None
Federal agency 5 years None 40%
U.S. government sponsored enterprise securities 5 years None 40% State of California obligations 5 years None 5%
Obligation of the other 49 states 5 years None 5%
Obligations of local agencies in California 5 years None 5% County pool 5 years None 10 million
Bankers' acceptance 180 days 40% 5%
Commercial paper 270 days 25% 5%
Negotiable certificate of deposit 5 years 30% 5%
Nonnegotiable certificate of deposit 5 years None None
Medium term notes 5 years 30% 5%
Money market funds N/A 20% None
Local Government Investment Pools (LGIPs) None None None Asset-Backed Securities (ABS) 5 years 20% 5%
Supernational 5 years 30% None
(1) The average dollar weighted maturity of a portfolio may not exceed 3 years. At least 10% of the portfolio shall be invested in instruments, which can be liquidated on one day’s notice. (2) Excluding amounts held by bond trustee that are not subject to California Government Code Restrictions.

C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by the 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.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
62 Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2025, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within the fair value hierarchy in which the fair value measurements fall at June 30, 2025:

Quoted Prices Significant
in Active Other
Markets for Observable
Identical Assets Inputs
Investment Type Value (Level 1) (Level 2) Uncategorized Investments:

US Treasury 17,954,163 $ 17,954,163 $ - $ - $
US government sponsored enterprise
securities (1) (2) - 8,413,166 8,413,166 - Corporate note (1) - 10,250,797 10,250,797 - Municipal bonds (4)
- 150,000 150,000 - Money market funds 97,619 - - 97,619 LAIF 17,794,412 - - 17,794,412 Investments with Fiscal Agent:

Money market funds 3,625,369 - - 3,625,369 Total investments 58,285,526 $ 17,954,163 $ 18,813,963 $ 21,517,400 $ Fair Value Measurement
(1) Corporate bonds and United States government sponsored agency securities are valued by surveying the dealer’s community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the evaluation processes. Price spread basis is determined by the observed market data. Spread basis is by creating a bullet (non-call) spread scale for relevant maturities of each issuer.

These spreads represent credit risk and are based on the new issue market, secondary trading and dealer quotes. Each issuer-spread line has the capability to link parent/subsidiary and related companies to capture relevant movements. An Option Adjusted Spread (“OAS”) model is incorporated to adjust spreads of issues that have early redemption features. Spreads calculated continuously throughout the day, as well as “end of day”. Retails instruments are evaluated incorporating trades of all lot sizes. Prices basis is by matching each issue to its best-known market maker, monitoring new issues and determining their relevance to other securities. Crossover issues are evaluated based on how they treated by the marketplace – either on a spread or a price basis. (2) Priced based on Standard Inputs, listed in approximately order or priority for use when available, include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Evaluators may prioritize inputs differently on any given day for any security, and not all inputs listed are available for use in the evaluation process on any given day for each security evaluation. Interactive Data also monitors market indicators, and industry and economic events. Information of this nature is a trigger to acquire further corroborating market data. (3) Negotiable certificates of deposits are valued by a certificate deposit scale created daily for long term certificate deposits with maturities going out to forty years. These rates are obtained from various market makers and dealers, as well as data from the new issue market and continually follow the primary market and focus on changing market conditions as shown through new issue prices. An OAS model is incorporated to adjust the yields of issues that have early redemption features. (4) Municipal bonds are valued by municipal pricing tape from various market and industry inputs.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
63 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures
Disclosures 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. 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 and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distributions of the City's investment by maturity:

Investment Type Amount Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Investments:

US Treasury 17,954,163 $ 2,831,799 $ 2,525,905 $ 6,126,724 $ 302,017 $ 6,167,718 $ US government sponsored enterprise
securities 8,413,166 714,799 1,099,035 1,079,304 4,842,686 677,342 Corporate note 10,250,797 71,069 2,008,209 1,485,913 3,639,761 3,045,845 Municipal bonds(4) 150,000 150,000 - - - - Money market funds 97,619 97,619 - - - - LAIF 17,794,412 17,794,412 - - - - Investments with Fiscal Agent:

Money market funds 3,625,369 3,625,369 - - - - Total investments 58,285,526 $ 25,285,067 $ 5,633,149 $ 8,691,941 $ 8,784,464 $ 9,890,905 $ Investment Maturities (in Years)
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 investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy and the actual rating as of year and for each investment type:

Minimum
Legal
Investment Type Rating Total AAA AA- to AA+ A- to A+ Unrated Investments:

US Treasury N/A 17,954,163 $ 17,954,163 $ - $ - $ - $
US government sponsored
enterprise securities N/A 8,413,166 8,413,166 - - - Corporate note A 10,250,797 2,420,107 1,578,775 5,765,953 485,962 Municipal bonds A 150,000 - - 150,000 - Money market funds N/A 97,619 97,619 - - - LAIF N/A 17,794,412 - - - 17,794,412 Investments with Fiscal Agent:

Money market funds N/A 3,625,369 3,625,369 - - - Total investments 58,285,526 $ 32,510,424 $ 1,578,775 $ 5,915,953 $ 18,280,374 $

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
64 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City invested in Federal Home Laon Mortgage Corporate (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total City's investments as of June 30, 2025 at 15%.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by 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. At June 30, 2025, the City deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California law.

F. Investments in 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 $17,794,412 invested in LAIF. The value of the City’s investment in the pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded at the amortized cost.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
65 Note 3 – Interfund Transactions
A. Due From/To Other Funds
At June 30, 2025, the City had the following due from/to other funds:

Capital Nonmajor
Projects Governmental
Due To Other Funds General Fund Fund Funds Total
General Fund - $ 7,900 $ - $ 7,900 $
Development Impact Fees Fund 27,247 - - 27,247 Grants Revenue Fund - 9,134,907 - 9,134,907 Capital Projects Fund 7,157,607 - - 7,157,607 Nonmajor Governmental Funds 717,103 1,031,432 711,000 2,459,535 Total $ 10,174,239 7,901,957 $ 711,000 $ 18,787,196 $
Due From Other Funds
The General Fund reported an interfund payable to the Capital Projects Fund for was for the Veteran’s Park Splash Pad project in the amount of $7,900.

The Development Impact Fees Fund reported an interfund payable for short-term cash borrowing in the amount of $27,247.

The Grants Special Revenue Fund reported an interfund payable to the Capital Projects Fund for grant funding to be provided in the amount of $9,134,906.

The Capital Projects Fund reported an interfund payable for short-term cash borrowing in the amount of $7,157,607.

The Nonmajor Governmental Funds reported an interfund payable in the amount of $2,459,535:
$424,423 for short-term cash borrowing
$711,000: $365,600 for debt service for gas tax bonds and $345,400 for short-term cash borrowing. $741,818 for SB1 funds for street improvements
$292,681 for short-term cash borrowing
$289,614 for CDBG funding for basketball court at Bagdouma Park B. Advances To/From Other Funds
At June 30, 2025, the City had the following advances to/from other funds:

Advance To Other Fund
General Fund
Nonmajor Governmental Funds
Total $ 19,637,865
$ 11,164,802
8,473,063 8,473,063 $ 7,504,802
$ 15,977,865
$ 2,001,670
- $ 2,001,670
$ 1,658,330
- $ 1,658,330
Special Revenue Fund Total
Development Impact Fees
Advance From Other Funds
Enterprise Fund
Water Authority
Governmental Funds
Nonmajor

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
66 Note 3 – Interfund Transactions (Continued)
B. Advances To/From Other Fund (Continued)
Library Development Impact Fee Loans
During the year ended June 30, 2017, the City Council approved interfund fund loans between General Fund and Development Impact Fees Special Revenue Fund for the acquisition of the real property, the library site, the design of the library for a total of $1,382,500. During the year ended June 30, 2018, the City Council approved an additional interfund loan from the General Fund to the Development Impact Special Revenue Fund for the construction of the library in the amount of $8,391,348. These loans bear simple interest computed at a rate per annum equal to the average monthly rate from LAIF from the date of loan to the date of repayment. At June 30, 2025, principal amount outstanding was in the amount of $3,381,925. As of June 30, 2025, $8,473,063 was the remaining balance of the advances to the Library Development Impact Fee Special Revenue Fund for the construction of the library from Lease Revenue Bonds Debt Service Fund.

General Government Impact Fee Loans
During the year ended June 30, 2018, the City Council approved an interfund loan from the General Fund to the Development Impact Fees Special Revenue Fund for the construction of the Permit Center and Senior Center in the amount of $1,725,000 and $299,679, respectively. During the year ended 2019, the City Council approved an additional interfund loan from the General Fund to the Development Impact Special Revenue Fund for the construction of the Permit Center and Senior Center in the amount of $311,000 and $2,148,293, respectively. During the year ended June 30, 2020, the City Council approved an additional interfund loan from the General Fund to the Development Impact Special Revenue Fund for the construction of the Permit Center in the amount of $200,000.

These loans bear simple interest computed at a rate per annum equal to the average monthly rate from LAIF from the date of loan to the date of repayment. At June 30, 2025, principal amount outstanding and accrued interest outstanding was in the amounts of $4,122,877.

Dillon Road Project Loan
On February 28, 2024, the City Council approved an interfund loan from the General Fund to the Dillon Road Project Special Revenue Fund for the construction of Dillon Road. It was estimated to repay the General Fund in 15 years with no interest accrued. At June 30, 2025, the amount outstanding was in the amount of $1,658,330.

Water Authority Loan
In 2003 the City formed the Coachella Water Authority (Authority) under a Joint Powers Agreement. As part of the Authority formation, the City contributed the existing water system to the Authority under a lease agreement.

The lease agreement specifies equal annual lease payments through July 1, 2058.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
67 Note 3 – Interfund Transactions (Continued)
B. Advances To/From Other Fund (Continued)
Water Authority Loan (Continued)
The lease agreement specifies interest at 6% annually.

Year Ending June 30, Principal Interest Total
2026 22,023 $ 120,100 $ 142,123 $
2027 23,344 118,779 142,123 2028 24,745 117,378 142,123 2029 26,230 115,893 142,123
2030 27,803 114,320 142,123
2031-2035 166,135 544,481 710,616
2036-2040 222,327 488,290 710,617
2041-2045 297,523 413,093 710,616
2046-2050 398,153 312,463 710,616
2051-2055 532,819 177,798 710,617
2056-2057 260,568 23,679 284,247
Total Future Repayments 2,001,670 $ 2,546,274 $ 4,547,944 $ C. Transfers
During the year ended June 30, 2025, the City had the following transfers:

Capital Nonmajor
General Projects Governmental Water Authority
Transfers out Fund Fund Funds Enterprise Fund Total
General Fund - $ 2,160,679 $ 4,969,006 $ 200,000 $ 7,329,685 $ Grants Special Revenue Fund 285,976 9,492,244 - - 9,778,220 Capital Projects Fund - - 588,774 - 588,774 Nonmajor Governmental Funds 2,840,190 1,201,855 593,950 - 4,635,995 Water Authority Enterprise Fund 1,066,576 19,711 - - 1,086,287 Sanitary District Enterprise Fund 1,142,853 19,710 - - 1,162,563 Total $ 12,894,199 5,335,595 $ 6,151,730 $ 200,000 $ 24,581,524 $ Transfers in
Transfers from Grants Special Revenue Fund, Nonmajor Governmental Funds (Landscape and Lighting District Special Revenue Fund), Water Authority Enterprise Fund and Sanitary District Enterprise Fund to General Fund were to provide funding for administrative expenses in the amounts of $285,976, $2,840,190, $1,066,576 and $1,142,853, respectively.

Transfers to the Capital Projects Fund in the amount of $12,894,199 were to provide funding for Capital Projects.

Transfer from General Fund, Capital Projects Fund, Nonmajor Governmental Funds to Nonmajor Governmental Funds:
$2,315,247 was to provide funding for repayment of the pension obligation bonds, lease revenue bonds, and gas tax revenue refunding bonds.
$453,271 was to subside grant related activities.
$3,383,212 was to support public safety costs incurred by the Fire Protection District.

Transfer from General Fund to Water Authority Enterprise Fund for or the Mesquite Water Mutual Association for the emergency generator for well 16 located at Tyler and Avenue 54 in the amount of $200,000.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
68 Note 4 – Deferred Special Assessment Receivable
To facilitate the construction of low income housing, the City entered into a prepayment agreement with local developers to defer police and fire services assessments through the City’s Public Safety CFD 2005-1. The agreement with the developer stipulates that the developer can defer police and fire service assessments if the low income housing development does not produce sufficient revenue to cover the annual assessments. The agreement allows for assessment deferrals for up to 55 years at which time the full deferral balance is due and payable to the City. The maximum deferral amounts totaled to $17,842,000 and the agreement include provisions for the accrual of 3% interest on any deferred balance. If the project is sold or transferred the deferred amount is required to be paid in full to satisfy the lien placed on the property by the City. No assessment payments were made during the current fiscal year and the ending balance owed was $2,118,380 ($65,099 accrued interest, and $2,053,281 deferred assessments) at June 30, 2025.

Note 5 – Loans Receivable
The City has made long-term rehabilitation and acquisition loans to owner-occupants of substandard homes who would otherwise be unable to obtain sufficient public or private financing to rehabilitate or acquire their homes. The loans are payable upon the sale or change in ownership of property. Total outstanding balance at June 30, 2025 was $3,738,046.

Note 6 – Lease Receivable
Lease receivable consists of agreements with other for the right–to–use of the underlying assets for land and buildings owned by the City at various location. The remaining terms of the agreements range from 1 to 28 years. The incremental borrowing rate used was 2% and 2.47%. For the year ended June 30, 2025, the City recognized $97,737 in lease revenue and $9,053 in interest revenue for General Fund. The outstanding receivable is $944,740 in the General fund.

The future required payments for these leases, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2026 89,327 $ 10,234 $ 99,561 $
2027 83,035 12,411 95,446 2028 83,106 14,685 97,791
2029 73,453 10,573 84,026
2030 62,980 15,467 78,447
2031-2035 278,146 92,052 370,198 2036-2040 103,069 53,042 156,111 2041-2045 100,727 71,632 172,359
2046-2049 70,897 63,874 134,771
Total $ 343,970 944,740 $ 1,288,710 $
Governmental Activities

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
69 Note 7 – Capital Assets
The summary of changes in capital assets for the governmental activities for the year ended June 30, 2025 is as follows:

Balance Balance
July 1, 2024 Additions Deletions Transfer June 30, 2025 Capital assets not being depreciated:

Land 18,211,458 $ - $ - $ 4,856,603 $ 23,068,061 $
Construction in progress 31,991,108 17,695,335 (446,037) (21,749,689) 27,490,717 Total capital assets not being depreciated 50,202,566 17,695,335 (446,037) (16,893,086) 50,558,778 Capital assets being depreciated / amortized:

Buildings 28,078,360 - - 8,434,050 36,512,410 Machinery and equipment 2,777,897 298,254 - - 3,076,151 Infrastructure 231,118,172 - - 8,459,036 239,577,208 Lease assets:

Right to use - leased building 31,496 - (31,496) - - Right to use - leased equipment 28,244 31,752 (5,735) - 54,261 Right to use - leased vehicle - 1,360,354 - - 1,360,354 Total capital assets being depreciated / amortized 262,034,169 1,690,360 (37,231) 16,893,086 280,580,384 Less accumulated depreciation / amortization for:

Buildings (8,813,041) (656,315) - - (9,469,356) Machinery and equipment (1,557,897) (290,879) - - (1,848,776) Infrastructure (97,243,819) (5,663,283) - - (102,907,102) Lease assets:

Right to use - leased building (9,624) - 9,624 - - Right to use - leased equipment (23,793) - 5,046 - (18,747) Right to use - leased vehicle - (288,689) - - (288,689) Total accumulated depreciation / amortization (107,648,174) (6,899,166) 14,670 - (114,532,670) Total capital assets being depreciated/amortized , net 154,385,995 (5,208,806) (22,561) 16,893,086 166,047,714 Total governmental activities $ 12,486,529 204,588,561 $ (468,598) $ - $ 216,606,492 $ Depreciation expense was charged to the governmental activities as follows:

General government 1,198,889 $
Public safety - fire 18,497 Public works 4,849,257 Public works - parks and recreation 832,523 Total depreciation expense $ 6,899,166

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
70 Note 7 – Capital Assets (Continued)
The summary of changes in capital assets for the business-type activities for the year ended June 30, 2025 is as follows:

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

Land 909,917 $ - $ - $ 909,917 $
Construction in progress 1,934,637 5,487,896 (2,812,206) 4,610,327 Total capital assets not being depreciated 2,844,554 5,487,896 (2,812,206) 5,520,244 Capital assets being depreciated / amortized:

Buildings 1,221,305 - - 1,221,305 Machinery and equipment 13,594,143 64,298 - 13,658,441 Infrastructure 111,517,837 - 2,812,206 114,330,043 Lease assets:

Right to use - leased vehicle - 272,394 - 272,394 Total capital assets being depreciated / amortized 126,333,285 336,692 2,812,206 129,482,183 Less accumulated depreciation / amortization for:

Buildings (798,134) (27,426) - (825,560) Machinery and equipment (11,853,778) (294,062) - (12,147,840) Infrastructure (61,574,127) (2,370,585) - (63,944,712) Lease assets:

Right to use - leased vehicle - (57,806) - (57,806) Total accumulated depreciation / amortization (74,226,039) (2,749,879) - (76,975,918) Total capital assets being depreciated / amortization, net 52,107,246 (2,413,187) 2,812,206 52,506,265 Total business-type activities $ 3,074,709 54,951,800 $ - $ 58,026,509 $ The depreciation was charged to the business-type activities as follows:

Water 1,204,808 $
Sanitary 1,545,071 Total depreciation and amortization expense $ 2,749,879

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
71 Note 8 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in more
(As restated) Additions Deletions June 30, 2025 One Year than One Year Loans payable 682,605 $ - $ (80,679) $ 601,926 $ 83,966 $ 517,960 $ Pension Obligation Bonds Series 2020 10,365,076 - (761,035) 9,604,041 771,753 8,832,288 2023 Energy Improvement Financing Agreement 5,220,458 - (165,654) 5,054,804 176,615 4,878,189 Revenue Bonds:
2016 Lease Revenue Bonds 9,820,000 - (325,000) 9,495,000 340,000 9,155,000 2016 Bond premium 178,569 - (8,117) 170,452 8,117 162,335 Gas Tax Revenue Refunding Bonds Series 2019 3,790,000 - (205,000) 3,585,000 215,000 3,370,000 2019 Bond premium 510,760 - (39,039) 471,721 39,039 432,682 Total revenue bonds 14,299,329 - (577,156) 13,722,173 602,156 13,120,017 Lease payable 10,670 1,408,637 (303,055) 1,116,252 328,769 787,483 Compensated absences 771,711 325,411 * 1,097,122 - 798,196 298,926 Claims payable 1,145,642 62,343 (208,244) 999,741 154,802 844,939 Total $ 1,796,391 32,495,491 $ (2,095,823) $ 32,196,059 $ 2,916,257 $ 29,279,802 $ Classification
* The change in the compensated absences liability is presented as a net change.

Loans Payable
On October 25, 2016, the City of Coachella entered into a loan agreement with another party to purchase real property in the City. The loan amount is for $1,200,000. Interest on the note is payable monthly. Interest on the note accrues at 4.00% per annum. Principal and Interest are payable in monthly installments of $8,876, commencing December 1, 2016 through November 1, 2031. The outstanding balance of the loan at June 30, 2025 was in the amount of $601,926.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 83,966 $ 22,549 $ 106,515 $
2027 87,387 19,128 106,515 2028 90,947 15,568 106,515
2029 94,653 11,862 106,515
2030 98,509 8,006 106,515
2031-2032 146,464 4,433 150,897
Total $ 81,546 601,926 $ 683,472 $
2016 Lease Revenue Bonds
On September 1, 2016, the Coachella Financing Authority issued $12,150,000 Lease Revenue Bonds, Series 2016 to finance the costs of construction of a library. Interest on the bonds is payable December 1 and June 1 of each year. Interest on the bonds accrues at rates varying from 1.50% to 4.00% per annum. Principal on serial and term bonds is payable in annual installments ranging from $260,000 to $440,000, commencing June 1, 2016 through June 1, 2036. Concurrently with the issuance of the bonds, a surety policy was purchased in lieu of maintaining a reserve balance. The outstanding balance of the lease revenue bonds at June 30, 2025 was in the amount of $9,495,000.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
72 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2016 Lease Revenue Bonds (Continued)
The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 340,000 $ 271,731 $ 611,731 $
2027 350,000 258,131 608,131 2028 365,000 244,131 609,131 2029 375,000 236,831 611,831
2030 380,000 228,863 608,863
2031-2035 2,050,000 1,006,988 3,056,988 2036-2040 2,335,000 711,100 3,046,100 2041-2045 2,710,000 337,350 3,047,350 2046 590,000 17,700 607,700 Total 9,495,000 $ 3,312,825 $ 12,807,825 $ Gas Tax Revenue Refunding Bonds, Series 2019
On October 1, 2019 the City of Coachella issued $4,775,000 Gas Tax Revenue Refunding Bonds, Series 2019 to current refund 2008 Certificates of Participation. Interest is payable June 1 and December 1 of each year. Interest accrues at rates carrying from 3.00% to 4.00% per annum. Principal is payable in annual installments ranging from $175,000 to $345,000 commencing June 1, 2019 through June 1, 2038. The outstanding balance of the 2019 Gas Tax Revenue Refunding Bonds, Series 2019 at June 30, 2025 was in the amount of $3,585,000.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 215,000 $ 143,400 $ 358,400 $
2027 225,000 134,800 359,800 2028 235,000 125,800 360,800 2029 240,000 116,400 356,400
2030 250,000 106,800 356,800
2031-2035 1,425,000 374,800 1,799,800 2036-2038 995,000 80,600 1,075,600 Total 3,585,000 $ 1,082,600 $ 4,667,600 $
Pension Obligation Bonds – Series 2020
On December 1, 2020 the City of Coachella issued $17,590,000 Taxable Pension Obligation Bonds, Series 2020 to pay down the City’s currently unamortized, unfunded accrued liability to the California Public Employees’ Retirement System “CalPERS” for the benefit of the City’s employees. Interest is payable January 1 and July 1 of each year. Interest accrues at rates carrying from 1.017% to 3.234% per annum. Principal is payable in annual installments ranging from $1,000,000 to $1,400,000 commencing July 1, 2021 through July 1, 2035. The liability was allocated between the governmental activities and business-type activities.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
73 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Pension Obligation Bonds – Series 2020 (Continued)
The annual principal requirements for the governmental activities and the business-type activities to amortize the outstanding Pension obligation Bonds, Series 2020 are as follows:

Year ending
June 30, Principal Interest Total Principal Interest Total 2026 771,753 $ 247,315 $ 1,019,068 $ 146,762 $ 47,031 $ 193,793 $ 2027 786,045 233,649 1,019,694 149,480 44,432 193,912 2028 800,337 217,203 1,017,540 152,198 41,305 193,503 2029 821,774 198,023 1,019,797 156,275 37,658 193,933 2030 843,212 176,755 1,019,967 160,352 33,613 193,965 2031-2035 4,580,499 513,909 5,094,408 871,063 97,729 968,792 2036 1,000,421 16,177 1,016,598 190,249 3,076 193,325 Total $ 1,603,031 9,604,041 $ 11,207,072 $ 1,826,379 $ 304,844 $ 2,131,223 $ Governmental Activities Business-Activities
Water Authority
Year ending
June 30, Principal Interest Total Principal Interest Total 2026 161,485 $ 51,749 $ 213,234 $ 1,080,000 $ 346,095 $ 1,426,095 $ 2027 164,475 48,889 213,364 1,100,000 326,970 1,426,970 2028 167,465 45,448 212,913 1,120,000 303,956 1,423,956 2029 171,951 41,435 213,386 1,150,000 277,116 1,427,116 2030 176,436 36,985 213,421 1,180,000 247,353 1,427,353 2031-2035 958,438 107,532 1,065,970 6,410,000 719,170 7,129,170 2036 209,330 3,385 212,715 1,400,000 22,638 1,422,638 Total $ 335,423 2,009,580 $ 2,345,003 $ 13,440,000 $ 2,243,298 $ 15,683,298 $ Total
Sanitary District
Business-Activities
2023 Energy Improvement Financing Agreement
On October 25, 2023 the City of Coachella entered an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp to purchase certain equipment with a cost not to exceed $15,600,000 and interest rate not to exceed 4.35% constituting personal property necessary for the City to perform essential governmental functions.

The final total project cost is $7,817,600. Principal is payable in semi-annual installments ranging from $230,000 to $527,0000 commencing May 1, 2024 through November 1, 2043. The liability was allocated between the governmental activities and business-type activities.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
74 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2023 Energy Improvement Financing Agreement (Continued) The annual principal requirements for the governmental activities and the business-type activities to amortize the outstanding 2023 Energy Improvement Financing Agreement are as follows:

Year ending
June 30, Principal Interest Total Principal Interest Total 2026 176,615 $ 215,745 $ 392,360 $ 68,919 $ 84,189 $ 153,108 $ 2027 184,287 207,906 392,193 71,913 81,130 153,043 2028 192,293 199,727 392,020 75,037 77,938 152,975 2029 200,645 191,192 391,837 78,297 74,608 152,905 2030 209,362 182,287 391,649 81,698 71,132 152,905 2031-2035 1,191,392 763,709 1,955,101 464,909 298,017 152,905 2036-2040 1,473,643 475,328 1,948,971 575,050 185,484 152,905 2041-2044 1,426,567 127,232 1,553,799 556,678 49,649 758,217 Total 5,054,804 $ 2,363,126 $ 7,417,930 $ 1,972,501 $ 922,147 $ 1,828,963 $ Sanitary District
Governmental Activities Business-Activities
Year ending
June 30, Principal Interest Total
2026 176,615 $ 215,745 $ 392,360 $
2027 184,287 207,906 392,193 2028 192,293 199,727 392,020 2029 200,645 191,192 391,837
2030 209,362 182,287 391,649
2031-2035 1,191,392 763,709 1,955,101 2036-2040 1,473,643 475,328 1,948,971 2041-2044 1,426,567 127,232 1,553,799
Total $ 2,363,126 5,054,804 $ 7,417,930 $
Lease payable
The City entered into leases for vehicles, copiers and building. The terms for the agreements range from 60 months to 36 months with interest rates of 7.2% and 2.0%.

Principal and interest payments to maturity at June 30, 2025 are as follows:

Year ending
June 30, Principal Interest Total
2026 338,226 $ 11,543 $ 349,769 $
2027 300,081 7,621 307,702 2028 255,660 4,209 259,869
2029 181,682 1,553 183,235
2030 40,603 175 40,778 Total 1,116,252 $ 25,101 $ 1,141,353 $

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
75 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities
Summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in more
(Restated) Additions Deletions June 30, 2025 One Year than One Year Loans payable 6,606,345 $ - $ (1,465,994) $ 5,140,351 $ 1,498,333 $ 3,642,018 $ Pension Obligation Bonds Series 2020- Water 1,971,103 - (144,724) 1,826,379 146,762 1,679,617 Pension Obligation Bonds Series 2020- Sanitary 2,168,822 - (159,242) 2,009,580 161,484 1,848,096 2023 Energy Improvement Financing Agreement 2,037,143 - (64,642) 1,972,501 68,919 1,903,582 Revenue bonds:
2005B Wastewater 3,682,901 - (105,463) 3,577,438 109,859 3,467,579 2015A Wastewater 2,765,000 - (205,000) 2,560,000 215,000 2,345,000 2022A Water Refunding 4,620,000 - (145,000) 4,475,000 150,000 4,325,000 2022B Water Refunding 5,235,000 - (490,000) 4,745,000 510,000 4,235,000 Bonds premium 1,233,400 - (99,778) 1,133,622 99,778 1,033,844 Total revenue bonds 17,536,301 - (1,045,241) 16,491,060 1,084,637 15,406,423 Lease payable - 272,394 (56,331) 216,063 65,446 150,617 Compensated absences 398,905 257,845 * 656,750 - 413,167 243,583 Total $ 530,239 30,718,619 $ (2,936,174) $ 28,312,684 $ 3,438,748 $ 24,873,936 $ Classification
* The change in the compensated absences liability is presented as a net change.

Loans Payable
On September 26, 2005 the Sanitary District entered into a loan agreement with the State of California Water Resources Control Board (“SWRCB”). The terms of this loan provide for drawing funds for the expansion of the sewer treatment plant up to $23,658,615. As of April 2008, the full amount of $23,658,615 was withdrawn.

Repayment of this loan shall be paid in annual installments commencing on the date that is one year after the completion of construction and shall be fully amortized not later than twenty years after completion of construction.

The project was completed in April 2008. The interest rate on this loan is 2.3%. The outstanding balance for the SWRCB loan at June 30, 2025 was in the amount of $2,890,351.

On September 14, 2011 the Sanitary District entered into a loan payable from the United States Department of Agriculture (“USDA”). The terms of this loan provide for drawing funds for the expansion of the sewer treatment plant up to $3,000,000. As of June 30, 2013, $2,875,606 was withdrawn. Repayment of this loan shall be paid in annual installments through October 1, 2050. The completion date was September 4, 2012. The interest rate on this note is 2.375%. The outstanding balance for the USDA loan at June 30, 2025 was in the amount of $2,250,000.

Total outstanding balance for the loans payable was in the amount of $5,140,351.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
76 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 1,498,333 $ 119,901 $ 1,618,234 $
2027 1,536,413 85,276 1,621,689 2028 65,000 49,889 114,889 2029 65,000 48,346 113,346 2030 70,000 46,683 116,683
2031-2035 365,000 207,766 572,766
2036-2040 410,000 161,216 571,216
2041-2045 465,000 108,609 573,609
2046-2050 520,000 49,710 569,710
2051-2052 145,605 3,696 149,301
Total $ 881,092 5,140,351 $ 6,021,443 $
Pension Obligation Bonds, Series 2020 – Water Authority See Note 8 A for disclosure.

Pension Obligation Bonds, Series 2020 – Sanitary District See Note 8 A for disclosure.
2023 Energy Improvement Financing Agreement
See Note 8 A for disclosure.
2005 Wastewater Revenue Refunding Bonds, Series B
On September 26, 2005, the Financing Authority issued $5,000,000 Wastewater Revenue Refunding Bonds (USDA), Series 2005B for the Sanitary District, to finance on-going capital improvements to the wastewater enterprise. Interest is payable September 26 and March 26 of each year. Interest accrues at 4.125% per annum.

Principal is payable in annual installments ranging from $50,573 to $248,591 commencing September 26, 2006, through September 26, 2045. The outstanding balance for the 2005 Wastewater Revenue Refunding Bonds, Series B at June 30, 2025 was in the amount of $3,577,438.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 109,859 $ 145,303 $ 255,162 $
2027 114,437 140,677 255,114 2028 119,207 135,858 255,065 2029 124,175 130,839 255,014
2030 129,350 125,610 254,960
2031-2035 732,244 541,662 1,273,906 2036-2040 898,086 374,092 1,272,178 2041-2045 1,101,489 168,571 1,270,060
2046 248,591 5,127 253,718 Total $ 1,767,739 3,577,438 $ 5,345,177 $

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
77 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2015 Wastewater Revenue Refunding Bonds, Series A
On October 15, 2015, the Sanitary District issued $4,260,000 Wastewater Revenue Refunding Bonds, Series 2015A Interest on the bonds is payable April 1 and October 1 of each year. Interest on the bonds accrues at rates varying from 2.00% to 5.00% per annum. Principal on serial and term bonds is payable in annual installments ranging from $135,000 to $295,000, commencing April 1, 2016 through April 1, 2035. Concurrently with the issuance of the bonds, a surety policy was purchased in lieu of maintaining a reserve balance. The Sanitary District, with the issuance of the bonds, entered into a rate covenant agreement. For the year ended June 30, 2025, the Sanitary District met the rate covenant as required by the bond indenture. The outstanding balance for the 2015 Wastewater Revenue Refunding Bonds, Series A at June 30, 2025 was in the amount of $2,560,000.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 215,000 $ 92,175 $ 307,175 $
2027 225,000 81,425 306,425 2028 240,000 70,175 310,175 2029 245,000 60,575 305,575
2030 250,000 53,225 303,225
2031-2035 1,385,000 140,745 1,525,745 Total 2,560,000 $ 498,320 $ 3,058,320 $ 2022 Water Refunding Bonds, Series A
On February 2, 2022, the Water Authority issued $4,895,000 Water Revenue Refunding Bonds, Series 2022A.

Interest on the bonds is payable February 1 and August 1 of each year. Interest on the bonds accrues at rates 2.00% per annum. Principal on serial and term bonds is payable in annual installments ranging from $135,000 to $255,000, commencing August 1, 2022 through August 1, 2048. The outstanding balance for the 2022 Water Refunding Bonds, Series A at June 30, 2025 was in the amount of $4,475,000.

The annual debt service requirements to maturity are as follow:

Year ending
June 30, Principal Interest Total
2026 150,000 $ 176,000 $ 326,000 $
2027 160,000 169,800 329,800 2028 165,000 163,300 328,300 2029 170,000 156,600 326,600
2030 175,000 149,700 324,700
2031-2035 860,000 639,800 1,499,800 2036-2040 830,000 478,400 1,308,400 2041-2045 1,005,000 295,500 1,300,500
2046-2049 960,000 78,800 1,038,800
Total 4,475,000 $ 2,307,900 $ 6,782,900 $

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
78 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2022 Water Refunding Bonds, Series B
On May 1, 2022, the Water Authority issued $6,225,000 Water Revenue Refunding Bonds, Series 2022B. Interest on the bonds is payable February 1 and August 1 of each year. Interest on the bonds accrues at rates 2.00% per annum. Principal on serial and term bonds is payable in annual installments ranging from $475,000 to $685,000, commencing August 1, 2022 through August 1, 2032. The outstanding balance for the 2022 Water Refunding Bonds, Series A at June 30, 2025 was in the amount of $4,745,000.

The annual debt service requirements to maturity are as follows:

Year ending
June 30, Principal Interest Total
2026 510,000 $ 179,600 $ 689,600 $
2027 530,000 158,800 688,800 2028 550,000 137,200 687,200 2029 580,000 114,600 694,600
2030 605,000 90,900 695,900
2031-2033 1,970,000 120,400 2,090,400 Total 4,745,000 $ 801,500 $ 5,546,500 $ Lease payable
The City entered into leases for vehicles. The terms for the agreements range from 60 months to 36 months with interest rates of 1% .

Principal and interest payments to maturity at June 30, 2025 are as follows:

Year ending
June 30, Principal Interest Total
2026 65,446 $ 1,861 $ 67,307 $
2027 57,957 1,231 59,188 2028 49,740 681 50,421
2029 34,898 253 35,151
2030 8,022 35 8,057 Total $ 4,061 216,063 $ 220,124 $

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
79 Note 8 – Long-Term Liabilities (Continued)
C. Fiduciary Activities
Summary of changes in long-term liabilities for fiduciary activities for the year ended June 30, 2025 is as follows:

Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year 2013 Tax Allocation Bonds 1,785,000 $ - $ (330,000) $ 1,455,000 $ 340,000 $ 1,115,000 $ 2014 Tax Allocation Bonds 6,600,000 - (560,000) 6,040,000 585,000 5,455,000 2016 Tax Allocation Bonds, Series A 10,020,000 - (595,000) 9,425,000 630,000 8,795,000 2016A Bond premium 1,231,397 - (100,522) 1,130,875 100,522 1,030,353 2016 Tax Allocation Bonds, Series B 6,350,000 - (480,000) 5,870,000 490,000 5,380,000 2016B Bond discount (44,542) - 3,636 (40,906) (3,636) (37,270) Total $ - 25,941,855 $ (2,061,886) $ 23,879,969 $ 2,141,886 $ 21,738,083 $ Classification
2013 Subordinate Tax Allocation Bonds (Merged Project Areas) On October 1, 2013, the Successor Agency issued $5,275,000 Tax Allocation Bonds (Merged Project Areas), Series. The Bonds are payable from pledged tax revenues allocated from the project areas noted above. Interest on the bonds is payable March 1 and September 1 of each year. Interest accrues at rates varying from 2.00% to 4.25% per annum. Principal on these bonds is payable in annual installments ranging from $360,000 to $385,000 from September 1, 2015 through September 1, 2028. The outstanding balances for the 2013 Subordinate Tax Allocation Bonds (Merged Project Areas) at June 30, 2025 was in the amount of $1,455,000.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 340,000 $ 53,288 $ 393,288 $
2027 360,000 39,287 399,287 2028 370,000 24,225 394,225 2029 385,000 8,181 393,181
Total $ 124,981 1,455,000 $ 1,579,981 $
2014 Subordinate Tax Allocation Bonds (Merged Project Areas) On September l, 2014, the Successor Agency issued $9,250,000 of Subordinate Tax Allocation Bonds (Merged Project Areas), Series 2014 The Bonds are payable from pledged tax revenues allocated from the project areas noted above. Interest on the bonds is payable March 1 and September 1 of each year. Interest accrues at rates varying from 2.00% to 5.00% per annum. Principal on these bonds is payable in annual installments ranging from $210,000 to $720,000 from September 1, 2015 through September 1, 2030. The outstanding balances for the 2014 Subordinate Tax Allocation Bonds (Merged Project Areas) at June 30, 2025 was in the amount of $6,040,000.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
80 Note 8 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2014 Subordinate Tax Allocation Bonds (Merged Project Areas) (Continued) The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Total
2026 585,000 $ 221,988 $ 806,988 $
2027 620,000 191,862 811,862 2028 650,000 160,113 810,113 2029 680,000 133,238 813,238
2030 705,000 111,156 816,156
2031-2035 2,800,000 223,128 3,023,128 Total 6,040,000 $ 1,041,485 $ 7,081,485 $ 2016 Tax Allocation Refunding Bonds Series A and B
On February 10, 2016, the Successor Agency issued $14,935,000 and $9,690,000 of Tax Allocation Refunding Bonds (Merged Project Areas), Series 2016 A and 2016 B, respectively, The Bonds are payable from pledged tax revenues allocated from the project areas noted above. Interest on the bonds is payable March l and September l of each year. Interest accrues at rates varying from 1.375% to 5.00% per annum. Principal on these bonds is payable in annual installments ranging from $260,000 to $1,650,000 from September l, 2016 through September l, 2036.

The outstanding balances for the 2016 Tax Allocation Refunding Bonds, Series A and B at June 30, 2025 were in the amounts of $9,425,000 and $5,870,000, respectively.

The future debt service requirement is as follows:

Year ending
June 30, Principal Interest Principal Interest Total
2026 630,000 $ 388,100 $ 490,000 $ 211,106 $ 1,719,206 $ 2027 660,000 355,850 505,000 195,244 1,716,094 2028 690,000 322,100 520,000 177,288 1,709,388 2029 725,000 286,725 540,000 157,413 1,709,138 2030 1,170,000 239,350 665,000 134,818 2,209,168 2031-2035 3,680,000 501,600 2,495,000 333,538 7,010,138 2036-2037 1,870,000 56,400 655,000 26,500 2,607,900 Total 9,425,000 $ 2,150,125 $ 5,870,000 $ 1,235,907 $ 18,681,032 $ Series A Series B
Pledged Future Revenues
The City pledged future tax revenues associated with its bond issuances for Series 2013, 2014, 2016A and 2016B.

This comprises all of the debt issued in tax allocation debt in this note above. These debt issuances and pledged tax revenues are reported in the fiduciary funds. The pledged tax revenues are to be used solely for the repayment of principal and interest on the bonds until they are paid in full through 2037 and are not available for other purposes during the duration that the bonds are outstanding which are pledged for the respective bonds. The pledged tax revenues totaled $2,990,448 for the year ended June 30, 2025. The net principal and interest payments on the bonds that had pledged tax revenues for the year ended June 30, 2025 were $1,965,000 and $961,576, respectively. The total principal and interest remaining is approximately $27,342,498 with annual payments expected to require 100% of pledged tax revenues.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
81 Note 8 – Long-Term Liabilities (Continued)
D. Non-City Obligation Debt
The City of Coachella Community Facilities District No. 2018-1 (the “District”) issued City of Coachella (Glenroy) Special Tax Bonds, Series 2018 on August 1, 2018 in the amount of $5,745,000. The bond proceeds will be used to: (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Coachella and sewer facilities to be owned and operated by the Coachella Sanitary District; (ii) fund a reserve account for the Bonds; (iii) fund capitalized interest on the Bonds through September 1, 2018; and (iv) pay costs of issuance of the Bonds. The outstanding balance at June 30, 2025 was $5,230,000.

Note 9 – Compensated Absences
For governmental activities and business-type activities, accumulated vacation, sick and administrative leave benefits payable in future years amounted to $1,097,122 and $656,750, respectively, at June 30, 2025. The City has estimated that for the governmental activities that $798,196 is to be paid within the next fiscal year and therefore have considered this amount to be the current portion of the liabilities. Vacation benefits, sick leave, and compensatory time are recorded as expenditures in the related governmental fund financials statements when used. Upon retirement or termination, the expenditures are recorded in the fund which incurred the original obligation. Compensated absences payable for business-type activities are reported within the respective enterprise funds and the City has estimated that for businesstype activities that $413,167 is to be paid within the next fiscal year and therefore have considered this amount to be the current portion of the liabilities.

The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. In prior years, the General Fund has typically been used to liquidate the liability. All vested vacation and compensatory leave time is recognized as an expense and as a liability in the businesstype funds at the time the liability vests. The Water Authority and the Sanitary District Enterprise funds have been used to liquidate the liability. There is no fixed payment schedule to pay these liabilities.

Note 10 – Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and emissions; and natural disasters. The City is a member of the Public Entity Risk Management Authority (“PERMA”), a joint powers authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. The Authority is currently comprised of thirty-four participating member agencies.

The City participates in the liability, worker's compensation, employment practices and property insurance programs of PERMA.

The City is self-insured for the first $125,000, $250,000 and $25,000 of each occurrence or accident in the liability, workers' compensation and employment practices programs respectively. For property insurance the City is self-insured for the first $5,000 per occurrence except as follows: $100,000 for flood, 24-hour service interruption. Excess costs above the self-insured amounts are shared between participating members based on their respective deposit premium contributions and in accordance with PERMA policies.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
82 Note 10 – Risk Management (Continued)
During the past three fiscal (policy) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured coverage from the prior year. Complete financial statement may be obtained from the Public Entity Risk Management Authority at 36- 951 Cook Street, Suite 101, Palm Desert, CA 92211.

Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs).

At June 30, 2025, the amount of these liabilities was $999,741. This liability is the City's best estimate based on available information.

Changes in the balances of claims payable during the past three years are as follows:

Current Year
Claims and
Changes in Claim
Beginning of Year Estimates Payments End of Year
Workers' Compensation
2022-2023 276,534 $ 695,710 $ (30,310) $ 941,934 $
2023-2024 941,934 75,299 (62,381) 954,852 2024-2025 954,852 (247,227) (190,377) 517,248 General Liabilities
2022-2023 398,696 $ 120,008 $ (46,190) $ 472,514 $
2023-2024 472,514 - (281,724) 190,790 2024-2025 190,790 309,570 (17,867) 482,493 Note 11 – Pensions
A. General Information About the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multipleemployer defined benefit pension plan for both miscellaneous and safety employees. There are no active employees in the City’s safety plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. 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. Copies of the CalPERS annual financial report may be obtained from https://www.calpers.ca.gov/page/forms-publications.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
83 Note 11 – Pensions (Continued)
A. General Information About the Pension Plan (Continued) Employees Covered by Benefit Terms
At June 30, 2023, the following employees were covered by the benefit terms:

Miscellaneous
Misc Second
Tier Misc PEPRA Safety
Active employees 28 7 47 - Transferred and terminated employees 13 4 13 7 Separated 17 5 8 - Retired Employees and Beneficiaries 125 - - 93 Total 183 16 68 100 Benefit Provided CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS 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. 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 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Miscellaneous
Rate Plan*
Miscellaneous
Second Tier Rate
Plan*
PEPRA
Miscellaneous
Rate Plan Safety Rate Plan*
Hire date Prior to July 1,
2002
Between
July 1, 2002 to
December 31,
2012
January 1, 2013
and after
Prior to July 1,
2012
Benefit formula 3% @ 60 2% @ 60 2% @ 62 Fire 1/2% @ 55
Police 2% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs minimum 50 yrs * Closed to new entrants
Cost-Sharing Rate Plans
Participants are eligible for non-industrial disability retirement 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 compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
84 Note 11 – Pensions (Continued)
A. General Information About the Pension Plan (Continued) Benefit Provided (Continued)
An employee'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 may 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 6.90 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.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

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 on a compound basis by 2 percent.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024 (the measurement date), the contribution rates were as follows:

Miscellaneous
Rate Plan*
Miscellaneous
Second Tier Rate
Plan*
PEPRA
Miscellaneous
Rate Plan Safety Rate Plan*
Required employee contribution rates 8.000% 7.000% 7.750% 0.000% Required employer contribution rates 17.260% 10.100% 7.680% 0.000% * Closed to new entrants
Cost-sharing Rate Plans

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
85 Note 11 – Pensions (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine June 30, 2024 total pension liability based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Price Inflation Salary Increases 2.30%
Salary Increases
Mortality Rate Table1 Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
Varies by Entry Age and Service
Entry Age Normal
Derived using CalPERS’ Membership Data for all Funds. 1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Change of Assumption
There was no change in assumption in 2024, the measurement period.

Long-Term Expected Rate of Return
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed Asset
Asset Class 1 Allocation Real Return 1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.0%
1An expected inflation of 2.30% used for this period. 2Figures are based on the 2021 Asset Liability Management study.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
86 Note 11 – Pensions (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates , actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members . Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Liquidating Net Pension Liability
The pension liabilities are liquidated principally by all the funds.

Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentagepoint higher (7.90%) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous $ 2,574,791 10,936,621 $ (4,308,226) $
Safety $ 634,763 2,929,972 $ (1,242,395) $
Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
87 Note 11 – Pensions (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Plan Total PensionPlan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/23 (Valuation date) 58,698,521 $ 55,909,548 $ 2,788,973 $ Balance at: 6/30/24 (Measurement date) 61,966,843 59,392,052 2,574,791 Net Changes during 2023-24 3,268,322 3,482,504 (214,182) Safety Balance at: 6/30/23 (Valuation date) 16,757,427 $ 15,985,862 $ 771,565 $ Balance at: 6/30/24 (Measurement date) 16,802,524 16,167,761 634,763 Net Changes during 2023-24 45,097 181,899 (136,802) Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2023). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2024). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2024 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2023-2024).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
88 Note 11 – Pensions (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of net pension liability during measurement period.

The City’s proportionate share of the net pension liability was as follows:

Miscellaneous Safety
June 30, 2023 0.02236% 0.00618%
June 30, 2024 0.02123% 0.00523%
Change - Increase (Decrease) -0.00113% -0.00095%
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. 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.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2023-2024 measurement period is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants:
active, inactive, and retired).

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

Deferred outflows Deferred inflows Deferred outflows Deferred inflows Deferred outflows Deferred inflows of Resources of Resources of Resources of Resources of Resources of Resources Pension contribution after measurement date 1,065,550 $ - $ 114,540 $ - $ 1,180,090 $ - $ Change of Assumptions 66,178 - 15,639 - 81,817 - Difference between expected and actual experience 222,612 (8,686) 51,800 (1,684) 274,412 (10,370) Difference between projected and actual earning on pension plan investments 148,227 - 30,680 - 178,907 - Adjustment due to differences in proportions 2,502,052 - 491,003 - 2,993,055 - Difference between City contributions and proportionate share of contributions - (2,165,569) - (921,238) - (3,086,807) Total $ (2,174,255) 4,004,619 $ 703,662 $ (922,922) $ 4,708,281 $ (3,097,177) $ Miscellaneous Safety Total
Deferred outflows of resources in the amount of $1,180,090 related to pensions resulting from the City’s contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2026.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
89 Note 11 – Pensions (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement
Period
Ending June 30, Miscellaneous Safety Total
2025 832,984 $ (113,090) $ 719,894 $
2026 60,618 (128,450) (67,832) 2027 (77,991) (81,761) (159,752) 2028 (50,797) (10,499) (61,296) 2029 - - - Thereafter - - - $ (333,800) 764,814 $ 431,014 $ Deferred Outflows/
(Inflows) of Resources
For the year ended June 30, 2025, the City recognized pension expense as follows:

Miscellaneous Safety Total
$ 338,003 2,794,735 $ 3,132,738 $
Note 12 – Total Other Postemployment Benefits (“OPEB”) Plan A. General Information About the OPEB Plan
Plan Description
The City provides postretirement medical benefits to employees who retire directly from the City under CalPERS under a single-employer defined benefit post-employment benefits plan. Eligible retirees can continue participation in the City medical plans (“PEMHCA”).

The plan is administrated by the City. The plan does not issue a standalone financial report and the plan is not provided through a trust and no assets are held in trust to offset plan liabilities.

Benefits Provided
The City contributes 100% of medical premium up to a capped dollar amount. For 2025, the monthly dollar caps were $257 for management and elected officials and $257 for mid-management, sanitary and miscellaneous employees. Future Retirees are eligible for PEMCHA minimum medical benefits ($158 per month in 2025 and $157 per month in 2024, respectively) if they retire directly from the City at Age 50 and with 5 years CalPERS service or disability retirement. Retiree benefit continues to surviving spouse if retiree elects CalPERS survivor annuity.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
90 Note 12 – Other Postemployment Benefits (“OPEB”) Plan (Continued) A. General Information About the OPEB Plan (Continued)
Employees Covered by Benefit Term
Active employees 96 Inactive currently receiving benefit 21 Inactive entitled to but not yet receiving
benefit payments 48
Total 165 Contributions
The City makes contributions on a pay-as-you-go basis. There is no pre-funding for the plan.

B. Total OPEB Liability
The City's net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2025.

Actuarial Assumptions
The total OPEB liability in the June 30, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Cost Method
Actuarial Assumptions:

Contribution policy No prefunding
Discount rate
Expected long-term rate of return on investments N/A
Global inflation 2.50% per annum
Mortality/retirement/disability/termination rate
Mortality improvement
Salary increases
Healthcare cost trend rates
Maximum monthly benefit increases
PEHMCA minimum increases
Healthcare Participation
at Retirement
Maximum Monthly
Benefit Increases
Based on PEMHCA Unequal method through 2021, 0%
thereafter but no less than PEMHCA minimum
Entry age normal level percentage of salary
Aggregate - 2.75% per annum

5.20% at June 30, 2025 (Bond buyer 20-Bond Index)
CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021 Medicare (Kaiser) - 5.65% for 2026, decreasing to ultimate rate of 3.45% in 2076 and later years
Based on PEHMCA Unequal method through 2021.
0% thereafter but no less than PEHMCA minimum

3.50% per annum
95% for management and elected officers
75% for mid-management and misc/sanitary employees
Merit - Tables from CalPERS 2000-2019 Experience Study
Non-Medicare - 7.90% for 2026, decreasing to ultimate rate of

3.45% in 2076 and later years
Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to
ultimate rate of 3.45% in 2076 and later years

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
91 Note 12 – Other Postemployment Benefits (“OPEB”) Plan (Continued) B. Total OPEB Liability (Continued)
Discount Rate
The discount rates used to measure the total OPEB liability were 5.20% and 3.93% at June 30, 2025 and 2024, respectively, based on Bond Buyer 20-bond Index. There is no expected long-term rate of return on investment since there is no pre-funding for OPEB.

Liquidating OPEB Liability
The OPEB liabilities are liquidated principally by the General Fund.

C. Changes in the Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balances as of June 30, 2024 4,018,440 $ - $ 4,018,440 $ Changes during the measurement period:

Service cost 255,197 - 255,197 Interest 165,012 - 165,012 Benefit changes - - - Actual vs. expected experience - - - Assumption changes (613,803) - (613,803) Employer contribution - 150,261 (150,261) Benefit payments (149,708) (149,708) - Administrative expenses - (553) 553 Net changes during measurement period 2024-25 (343,302) - (343,302) Balances as of June 30, 2025 (Measurement Date) 3,675,138 $ - $ 3,675,138 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (4.20%) or one percentage point higher (6.20%) follows:

Discount Rate Current Discount Discount Rate
- 1% (4.20%) Rate (5.20%) + 1% (6.20%)
$ 3,675,138 4,145,577 $ 3,284,129 $
Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates follows:

Healthcare
1% Decrease Cost Trend Rate 1% Increase
$ 3,675,138 3,376,025 $ 4,104,659 $
Net OPEB Liability

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
92 Note 12 – Other Postemployment Benefits (“OPEB”) Plan (Continued) D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized an OPEB expense of $181,986 At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Changes of assumptions 416,939 $ (1,555,959) $
Difference between expected and actual experience - (633,373) Total 416,939 $ (2,189,332) $ Deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Measurement
Period Ending
June 30,
Deferred
Inflows of
Resources
2026 (238,776) $
2027 (230,218) 2028 (233,467)
2029 (307,120)
2030 (338,902)
Thereafter (423,910)
$ (1,772,393)
Note 13 – Net Investment in Capital Assets
The net investment in capital assets for the governmental activities, and business-type activities are calculated as follows:

Governmental Business-Type
Activities Activities
Total capital assets, net 216,606,492 $ 58,026,509 $
Deferred charges for capital related debt - 125,049 Unspent capital debt proceed 1,611,950 726,340 Retention payable (613,236) (215,290) Capital related debt * (20,495,155) (23,819,975) Net investment in capital assets 196,224,441 $ 35,728,243 $ * Capital related debt includes all loans, bonds, and lease payable, except for pension obligation bonds.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
93 Note 13 – Net Investment in Capital Assets (Continued) The net investment in capital assets for the Water Fund, and Sanitary Fund are calculated as follows:

Water Sanitary
Total capital assets, net 27,246,450 $ 30,780,059 $
Deferred charges for capital related debt - 125,049 Unspent capital debt proceed 1,161,869 450,081 Retention payable (108,335) (106,955) Capital related debt * (10,337,850) (13,482,125) Net investment in capital assets 17,962,134 $ 17,766,109 $ Enterprise Funds
* Capital related debt includes all loans, and bonds payable, except for pension obligation bonds.

Note 14 – Classification of Fund Balances
At June 30, 2025, fund balances are classified in the governmental funds as follows:

Capital Nonmajor
General Development Projects Governmental
Fund Impact Fees Grants Fund Funds Total
Nonspendable:

Prepaid items 1,955,030 $ - $ - $ - $ 51,234 $ 2,006,264 $ Advance to other fund 11,142,779 - - - - 11,142,779 Total nonspendable 13,097,809 - - - 51,234 13,149,043 Restricted:

Low income housing - - - - 6,117,747 6,117,747 Highway and streets - - - - 3,608,700 3,608,700 Capital projects - - - 288,939 - 288,939 Fire protection - - - - 75,988 75,988 Public facilities - general government - - - - 141,589 141,589 Pension obligation bonds - - - - 899,123 899,123 Total restricted - - - 288,939 10,843,147 11,132,086 Committed:

Fiscal policy 9,804,903 - - - - 9,804,903 Debt service - - - - 9,133,619 9,133,619 Total committed 9,804,903 - - - 9,133,619 18,938,522 Assigned for:

Software upgrade 903,113 - - - - 903,113 Vehicle outfitting 70,000 - - - - 70,000 UAL policy 1,400,000 - - - - 1,400,000 Street improvements 4,865,000 - - - - 4,865,000 Total assigned 7,238,113 - - - - 7,238,113 Unassigned (deficit) (12,140,372) 12,250,551 (8,016,944) - (1,200,359) (9,107,124) Total fund balances $ (12,140,372) 42,391,376 $ (8,016,944) $ 288,939 $ 18,827,641 $ 41,350,640 $ Special Revenue Funds

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
94 Note 15 – Individual Fund Disclosure
A. Expenditures in Excess of Appropriation
The following functions report expenditures in excess of appropriations for the year ended June 30, 2025.

Expenditures
in Excess of
Expenditures Appropriation Appropriation
General Fund $ 33,446,212 34,995,980 $ (1,549,768) $
Development Impact Fees Special Revenue Fund 840,515 1,908,702 (1,068,187) Grants Special Revenue Fund 909,993 2,128,425 (1,218,432) Nonmajor Governmental Funds:

Fire Protection District Special Revenue Fund 5,303,416 5,061,261 (242,155) State Gas Tax Special Revenue Fund: 841,900 - (841,900) Debt Repayment Debt Service Fund 2,434,763 2,380,800 (53,963) B. Deficit Net Positions and Fund Balances Funds with deficit fund balances and net position at June 30, 2025 are as follows:

Deficit
Development Impact Fees Special Revenue Fund (12,140,372) $ Grants Special Revenue Fund (8,016,944) Road M aintenance Dillon Road (1,200,359) Successor Agency (22,640,414) The deficit fund balance for Development Impact Fee Special Revenue Fund will be eliminated through future development impact fee revenues. In addition, the City is currently conducting a development impact fee study to assess the appropriate recovery and payback period. The deficit fund balances for Grants and CDBG Special Revenue Fund will be eliminated when the reimbursement from grantors are received. The deficit for the Road Maintenance Dillon Road will be eliminated from the future mitigation fee revenues over the next 20 years; furthermore, the City Council approved an advance of $1,658,330 from the General Fund to finance expenditures incurred during the fiscal year ended June 30, 2025. The advance is to be repaid over a 15-year period. The deficit net position for Successor Agency Private-Purpose Trust Fund will be eliminated with future ROPS payment to pay down outstanding bonds.

Item 23.

City of Coachella
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
95 Note 16 – Changes to or within the Financial Reporting Entity and Restatements During fiscal year 2025, changes in accounting principle restatements and error corrections of beginning net position and fund balances are as follows:

June 30, 2024 Change to or within Change in
As Previously the Financial Reporting Accounting Principles Corrections of June 30, 2024 Reported Entity GASB 101 Errors As Restated
Government-Wide
Governmental Activities 223,443,646 $ - $ (50,440) $ - $ 223,393,206 $ Business-Type Activities 48,707,586 - 4,499 413,980 49,126,065 Total Government-Wide - Net Position 272,151,232 $ - $ (45,941) $ 413,980 $ 272,519,271 $ Governmental Funds:

Major Funds:

Debt Repayment Debt Service Fund 11,369,278 $ (11,369,278) $ - $ - $ - $ Nonmajor Funds 10,070,256 11,369,278 - - 21,439,534 Total Governmental Funds - Fund Balance 21,439,534 $ - $ - $ - $ 21,439,534 $ Proprietary Funds:

Water Enterprise Fund 27,693,958 $ - $ 10,009 $ - $ 27,703,967 $ Sanitary Enterprise Fund 21,013,628 - (5,510) 413,980 21,422,098 Total Proprietary Funds - Net Position 48,707,586 $ - $ 4,499 $ 413,980 $ 49,126,065 $ Changes Within the Financial Reporting Entity
The Debt Repayment Debt Service Fund changed from a Major Fund to a Nonmajor Fund $11,369,278.

Change in Accounting Principles - Implementation of GASB Statement No. 101, Compensated Absences Effective for the fiscal year ended June 30, 2025, the Authority implemented GASB Statement No. 101, Compensated Absences. This statement establishes accounting and financial reporting standards for compensated absences, including vacation, sick leave, and other paid time off. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

Under GASB 101, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly. As of July 1, 2024, the beginning net position was adjusted to reflect the cumulative effect of the change.

Specifically, the liability for compensated absences increased by $50,440 and decreased by $4,499 in governmentalactivities and business-type activities, respectively, resulting in a corresponding decrease in beginning net position of $50,440 and $4,499, respectively. The Proprietary Funds beginning balance is restated for the Water and Sanitary Funds in the amounts of $10,009 and ($5,510), respectively.

Correction of Errors
The beginning balances of the Business-Type Activities and Proprietary Funds were restated to correct prior-period revenue errors. As a result, the beginning balance for Business-Type Activities was adjusted by $413,980.

Item 23.
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Item 23.

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
97

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98

Item 23.

Budgetary Information

1. In May, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing July 1st. The operating budget includes proposed expenditures and the means for financing them.

2. Public hearings are conducted at City Council meetings to obtain taxpayer comments.

3. Prior to July 1, the budget is adopted by Council action. The budget includes amounts for revenues that, along with appropriations, compute the budgetary fund balances.

4. The City utilizes the fund level as budgetary control. The City Manager is authorized to transfer appropriated funds between major expenditure categories within the funds. However, any revisions that alter the total appropriations of any fund must be approved by the City Council. For budgeting purposes, the General Fund is composed of several departments while all other budgeted funds are considered a single department.

5. Formal budgetary integration is employed as management control device during the year for the governmental funds. 6. Budgets for the governmental funds are adopted on basis substantially consistent with generally accepted accounting principles.

Budgeted amounts are as originally adopted and as further amended by the City Council.

7. The City also budgets transfers in from special revenue funds to the General Fund to provide funding for expenditures incurred that meet the restricted purposes, or to capital projects funds to provide funding for capital projects.

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

The General Fund, Development Impact Fees Special Revenue Fund, and Grants Special Revenue Fund are major funds that have legally adopted budgets. The original budget, the final budget and actual amounts are presented in the Budgetary Comparison Schedules. Annual budgets are also adopted for the remaining special revenue funds and debt service funds, except for Economic Improvement Special Revenue Fund.

The Schedule of Revenue, Expenditures, and Change in Fund Balance - Budget and Actual for Capital Projects Fund and Debt Repayment Debt Service Fund are presented in the Supplementary Information.

City of Coachella
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
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100

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 28,609,932 $ 28,609,932 $ 28,241,563 $ (368,369) $ Licenses, permits and fees 518,195 518,195 700,540 182,345 Charges for services 725,752 725,752 601,270 (124,482) Fines, forfeitures and penalties 250,000 250,000 344,786 94,786 Intergovernmental 737,890 737,890 385,269 (352,621) Investment income 75,000 75,000 1,587,398 1,512,398 Net increase (decrease) in the fair value of investments - - 546,232 546,232 Other revenue 535,750 535,750 1,216,068 680,318 Total revenues 31,452,519 31,452,519 33,623,126 2,170,607 EXPENDITURES:

Current:

General government 10,001,520 10,702,443 11,400,431 (697,988) Public safety - police 11,348,079 11,348,079 11,988,470 (640,391) Community development 4,294,583 4,466,447 3,613,194 853,253 Engineering 1,188,400 1,188,400 933,756 254,644 Public works 2,954,967 2,954,967 2,497,152 457,815
Public works - Parks and recreation 2,661,331 2,667,331 2,678,794 (11,463) Capital outlay - 104,045 1,567,686 (1,463,641) Debt services:

Principal retirement 13,000 13,000 303,056 (290,056) Interest and fiscal charges 1,500 1,500 13,441 (11,941) Total expenditures 33,446,212 32,463,380 34,995,980 (1,549,768) Excess (deficiency) of revenues over expenditures (1,993,693) (1,010,861) (1,372,854) 620,839 OTHER FINANCING SOURCES (USES):

Inception of lease liability - - 1,408,637 1,408,637 Transfers in 5,891,519 5,891,519 5,335,595 (555,924) Transfers out (4,885,031) (8,991,173) (7,329,685) 1,661,488 Total other financing sources (uses) (3,099,654) 1,006,488 (585,453) 2,514,201 Net change in fund balance $ (5,093,347) (4,373) $ (1,958,307) 3,135,040 $ FUND BALANCE:

Beginning of year 44,349,683 End of year $ 42,391,376
Budgeted Amounts
City of Coachella
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
Required Supplementary Information (Unaudited)
101

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Developer fees 3,705,988 $ 3,705,988 $ 3,297,276 $ (408,712) $ Investment income 6,500 6,500 90,656 84,156 Net increase (decrease) in the fair value of investments - - 79,400 79,400 Total revenues 3,712,488 3,712,488 3,467,332 (245,156) EXPENDITURES:

Current:

Public works - 34,000 7,200 26,800 Capital outlay 700,000 700,000 1,506,874 (806,874) Debt service:

Principal retirement 80,679 80,679 80,679 - Interest and fiscal charges 25,836 25,836 313,949 (288,113) Total expenditures 840,515 806,515 1,908,702 (1,068,187) Net change in fund balance $ 2,871,973 2,905,973 $ 1,558,630 (1,313,343) $ FUND BALANCE:

Beginning of year (13,699,002) End of year $ (12,140,372) Budgeted Amounts
City of Coachella
Budgetary Comparison Schedule (Continued)
Development Impact Fees Special Revenue Fund
For the Year Ended June 30, 2025
Required Supplementary Information (Unaudited)
102

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 19,626,841 $ 20,708,967 $ 7,551,370 $ (13,157,597) $ Investment income - - 186,961 186,961 Other revenue - - 485,548 485,548 Total revenues 20,708,967 19,626,841 8,223,879 (12,485,088) EXPENDITURES:

Current:

Community development - 909,993 2,090,400 (1,180,407) Public works - - 38,025 (38,025) Total expenditures 909,993 - 2,128,425 (1,218,432) Excess (deficiency) of revenues over expenditures 19,798,974 19,626,841 6,095,454 (13,703,520) OTHER FINANCING (USES):

Transfers out (19,626,841) (19,654,747) (9,778,220) 9,876,527 Total other financing (uses) (19,654,747) (19,626,841) (9,778,220) 9,876,527 Net change in fund balance $ 144,227 - $ (3,682,766) (3,826,993) $ FUND BALANCE:

Beginning of year (4,334,178) End of year $ (8,016,944) Budgeted Amounts
City of Coachella
Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2025
Grants Special Revenue Fund
Required Supplementary Information (Unaudited)
103

Item 23.

Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 City's Proportion of the Net Pension Liability 0.22356% 0.02236% 0.01266% -0.14327% 0.11585% City's Proportionate Share of the Net Pension Liability 2,574,791 $ 2,788,973 $ 1,462,195 $ (7,748,397) $ 12,605,131 $ City's Covered Payroll 7,629,118 7,045,202 6,012,050 5,506,056 5,984,145 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 33.75% 39.59% 24.32% -140.72% 210.64% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 95.84% 95.25% 97.35% 114.63% 75.00% Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 City's Proportion of the Net Pension Liability 0.00523% 0.00618% 0.00398% -0.04194% 0.50680% City's Proportionate Share of the Net Pension Liability 634,763 $ 771,565 $ 460,009 $ (2,268,486) $ 5,514,400 $ City's Covered Payroll - - - - - City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll N/A N/A N/A N/A N/A Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 96.22% 95.40% 97.22% 113.81% 67.00% California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan City of Coachella
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
104

Item 23.

Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's Proportion of the Net Pension Liability 0.11435% 0.11244% 0.11295% 0.11192% 0.10333% City's Proportionate Share of the Net Pension Liability 11,717,156 $ 10,834,812 $ 11,201,840 $ 9,684,436 $ 7,092,438 $ City's Covered Payroll 5,744,896 5,439,535 5,412,001 5,475,348 5,166,649 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 203.96% 199.19% 206.98% 176.87% 137.27% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 75.80% 76.06% 73.32% 73.98% 79.89% Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's Proportion of the Net Pension Liability 0.05052% 0.05062% 0.04873% 0.04951% 0.05250% City's Proportionate Share of the Net Pension Liability 5,176,937 $ 4,878,054 $ 4,832,679 $ 4,284,302 $ 3,603,297 $ City's Covered Payroll - - - - - City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll N/A N/A N/A N/A N/A Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 74.04% 70.09% 70.45% 72.32% 76.34% Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan City of Coachella
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
105

Item 23.

Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially Determined Contribution 1,065,550 $ 845,222 $ 764,938 $ 664,272 $ 13,817,587 $ Contribution in Relation to the
Actuarially Determined Contribution (1,065,550) (845,222) (764,938) (664,272) (13,817,587) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll1
$ 7,629,118 7,842,732 $ 7,045,202 $ 6,012,050 $ 5,506,056 $ Contributions as a Percentage
of Covered Payroll 13.59% 11.08% 10.86% 11.05% 250.95%
Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially Determined Contribution 114,540 $ - $ 32,261 $ - $ 5,534,871 $ Contribution in Relation to the
Actuarially Determined Contribution (114,540) - (32,261) - (5,534,871) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll N/A N/A N/A N/A N/A
Contributions as a Percentage
of Covered Payroll N/A N/A N/A N/A N/A
N/A - Not applicable
Changes of Assumptions: There were no changes in 2024 and 2023. In 2022, the discount rate changed from 7.15% to 6.90%. In 2021, 2020 and 2019, there were no changes in assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced 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.

City of Coachella
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
Last Ten Fiscal Years
1 Includes one year’s payroll growth using 2.80 percent payroll assumption from fiscal year 2023 to 2024.

Notes to Schedule:

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 106

Item 23.

Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially Determined Contribution 1,517,558 $ 1,365,584 $ 1,202,460 $ 683,057 $ 628,259 $ Contribution in Relation to the
Actuarially Determined Contribution (1,517,558) (1,365,584) (1,202,460) (683,057) (628,259) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll1
$ 5,744,896 5,984,145 $ 5,439,535 $ 5,412,001 $ 5,475,348 $ Contributions as a Percentage
of Covered Payroll 25.36% 23.77% 22.11% 12.62% 11.47%
Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially Determined Contribution 432,948 $ 305,215 $ 241,940 $ 195,192 $ 162,021 $ Contribution in Relation to the
Actuarially Determined Contribution (432,948) (305,215) (241,940) (195,192) (162,021) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll N/A N/A N/A N/A N/A
Contributions as a Percentage
of Covered Payroll N/A N/A N/A N/A N/A
N/A - Not applicable
Changes of Assumptions: There were no changes in 2024 and 2023. In 2022, the discount rate changed from 7.15% to 6.90%. In 2021, 2020 and 2019, there were no changes in assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced 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.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan (Continued) California Public Employees' Retirement System ("CalPERS") Safety Plan (Continued) Notes to Schedule:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

City of Coachella
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years (Continued)
107

Item 23.

Measurement period 1
June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Total OPEB liability
Service cost 255,197 $ 212,686 $ 212,398 $ 424,327 $ 407,072 $ Interest 165,012 155,219 145,669 132,996 125,878 Differences between expected and actual experience - (36,828) - (980,439) - Changes of assumption (613,803) (278,209) (63,308) (1,248,883) 47,464 Benefit payments (149,708) (148,636) (166,181) (150,615) (121,842) Net change in total OPEB liability (95,768) (343,302) 128,578 (1,822,614) 458,572 Total OPEB liability, beginning 4,114,208 4,018,440 3,985,630 5,808,244 5,349,672 Total OPEB liability, ending (a) $ 4,018,440 3,675,138 $ 4,114,208 $ 3,985,630 $ 5,808,244 $ OPEB fiduciary net position
Employer contributions: 150,261 $ 149,363 $ 166,920 $ 151,141 $ 122,263 $ Net investment income - - - Benefit payments (149,708) (148,636) (166,181) (150,615) (121,842) Administrative expenses (553) (727) (739) (526) (421) Net change in plan fiduciary net position - - - - - Plan fiduciary net position, beginning - - - - - Plan fiduciary net position, ending (b) $ - - $ - $ - $ - $ Plan total OPEB liability - ending (a) - (b) $ 4,018,440 3,675,138 $ 4,114,208 $ 3,985,630 $ 5,808,244 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered employee payroll $ 9,217,275 10,913,502 $ 8,024,116 $ 7,442,817 $ 7,478,117 $ Total OPEB liability as a percentage of covered
employee payroll 33.68% 43.60% 51.27% 53.55% 77.67%
Note: There are no assets accumulated in a trust.

City of Coachella
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2025
Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
1 Historical information is presented for periods after GASB 75 was implemented in fiscal year of 2017-18. Additional years of information will be displayed as it becomes available.
108

Item 23.

Measurement period June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB liability
Service cost 277,196 $ 247,805 $ 256,623 $
Interest 155,219 150,757 134,880 Differences between expected and actual experience (127,508) - - Changes of assumption 949,213 224,305 (162,582) Benefit payments (124,173) (101,751) (82,609) Net change in total OPEB liability 521,116 1,129,947 146,312 Total OPEB liability, beginning 3,698,609 4,219,725 3,552,297 Total OPEB liability, ending (a) $ 4,219,725 5,349,672 $ 3,698,609 $ OPEB fiduciary net position
Employer contributions: 127,316 $ 102,056 $ 82,962 $
Net investment income - - - Benefit payments (124,173) (101,751) (82,609) Administrative expenses (3,143) (305) (353) Net change in plan fiduciary net position - - - Plan fiduciary net position, beginning - - - Plan fiduciary net position, ending (b) $ - - $ - $ Plan total OPEB liability - ending (a) - (b) $ 4,219,725 5,349,672 $ 3,698,609 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 0.00% 0.00% 0.00%
Covered employee payroll $ 6,775,511 6,957,280 $ 6,428,796 $ Total OPEB liability as a percentage of covered
employee payroll 76.89% 62.28% 57.53%
Note: There are no assets accumulated in a trust.

City of Coachella
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Other Postemployment Benefits ("OPEB")
1 Historical information is presented for periods after GASB 75 was implemented in fiscal year of 2017-18. Additional years of information will be displayed as it becomes available.

Last Ten Fiscal Years
109

Item 23.

Fiscal year end 2024-25 2023-24 2022-23 2021-22 2020-21 Actuarially determined contribution - $ - $ - $ - $ - $ Contribution in relation to the actuarially
determined contribution (150,261) (149,363) (166,920) (151,141) (122,263) Contribution deficiency/(excess) (150,261) $ (149,363) $ (166,920) $ (151,141) $ (122,263) $ Covered employee payroll $ 9,217,275 10,913,502 $ 8,024,116 $ 7,442,817 $ 7,478,117 $ Contributions as a percentage of covered employee payroll 1.38% 1.62% 2.08% 2.03% 1.63% 2 There is no actuarially determined contribution. 1 Historical information is presented for periods after GASB 75 was implemented in fiscal year of 2017-18. Additional years of information will be displayed as it becomes available.

City of Coachella
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
110

Item 23.

Fiscal year end 2019-20 2018-19 2017-18
Actuarially determined contribution2
$ - - $ - $
Contribution in relation to the actuarially
determined contribution (127,316) (102,056) (82,962) Contribution deficiency/(excess) (127,316) $ (102,056) $ (82,962) $ Covered employee payroll $ 6,775,511 6,957,280 $ 6,428,796 $ Contributions as a percentage of covered employee payroll 1.83% 1.51% 1.29% 1 Historical information is presented for periods after GASB 75 was implemented in fiscal year of 2017-18. Additional years of information will be displayed as it becomes available. 2
There is no actuarially determined contribution.

City of Coachella
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
111

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112

Item 23.

SUPPLEMENTARY INFORMATION
113

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114

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other revenue - $ 437,666 $ 682,045 $ 244,379 $
Total revenues 437,666 - 682,045 244,379 EXPENDITURES:

Capital outlay 38,547,462 38,209,700 12,426,117 25,783,583 Total expenditures 38,209,700 38,547,462 12,426,117 25,783,583 Excess (deficiency) of revenues over expenditures (37,772,034) (38,547,462) (11,744,072) 26,027,962 OTHER FINANCING SOURCES (USES):

Transfers in 30,545,524 37,164,941 12,894,199 (24,270,742) Transfers out - - (588,774) (588,774) Total other financing sources (uses) 37,164,941 30,545,524 12,305,425 (24,859,516) Net change in fund balance $ (607,093) (8,001,938) $ 561,353 1,168,446 $ FUND BALANCE:

Beginning of year (272,414) End of year $ 288,939
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2025
115

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116

Item 23.

NONMAJOR GOVERNMENTAL FUNDS
117

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118

Item 23.

Special Revenue Funds:

Air Quality Improvement - used to account for motor vehicle registration fee authorized by Assembly Bill (“AB”) 2766. Funds are disbursed to the City quarterly and can only be used for eligible projects that meet the requirements of federal and California Clean Air Act that reduces air pollution.

Local Transportation - used to account for revenue that is received from the Riverside County Transportation Commission ("RCTC") and used for transportation projects related to their Transportation Development Act, Measure A half-cent sales tax and Transportation Uniform Mitigation Fee ("TUMF") funding program.

Landscape and Lighting Districts - used to account for special assessments levied on real property and expenditures to provide landscape and street lighting maintenance for certain districts formed within the City.

Fire Protection District - used to account for special assessment collected for fire protection within the District.

CDBG - used to account for CDBG grant funds passed through the County of Riverside Economic Development Agency for Code Enforcement program.

State Gas Tax - used to account for the receipt and disbursement of monies apportioned to the City under the Streets and Highways Code of the State of California for street related maintenance, and street construction.

Road Maintenance Dillon Road - used to account for revenue received to rehab Dillon Road on a specific site where trucks drive every day.

Road Maintenance and Rehabilitation Program ("Road Maintenance SB 1") - used to account for street and road maintenance costs financed by the City's allocation of state gasoline taxes, diesel excise tax, vehicle license fee, and vehicle registration fee for zero-emission vehicles.

Economic Improvement - used to account for net proceeds from payment of principal and interest on first-time home buyer loans made with CalHome, HUD Home Program, and CDBG Home Rehabilitation Program funds and related administrative activities.

Community Facility District - Police Service - used to account for the portion of special assessments from the City's Community Facility District 2005-1 specific to police services. A portion of the District's special assessments are collected for fire services and are accounted for in the Fire Protection District Fund.

Debt Service Fund:

Debt Repayment Debt Service Fund is used to account for the funding for the issuance of debt and repayments related activities.

City of Coachella
Nonmajor Governmental Funds
119

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120

Item 23.

Landscape Fire
Air Quality Local and Lighting Protection
Improvement Transportation Districts District CDBG
ASSETS
Cash and investments 144,106 $ 801,993 $ 725,529 $ 1,641,761 $ 742,885 $ Receivables:

Accounts - - - - - Due from other governments 15,028 141,549 15,428 80,705 289,614 Deferred special assessment - - - 802,637 - Interest 761 12,899 3,245 7,902 1,232 Loans - - - - - Due from other funds - - - - - Prepaid - - - - - Restricted assets:

Cash and investments with fiscal agent - - - - - Advance to other funds - - - - - Total assets $ 956,441 159,895 $ 744,202 $ 2,533,005 $ 1,033,731 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable and accrued liabilities 20,879 $ 37,579 $ 262,871 $ 1,654,380 $ - $ Accrued wages payable - - 8,869 - - Due to other governments 11,271 2,102 - - - Due to other funds - - - - 582,294 Advance from other funds - - - - - Total liabilities 39,681 32,150 271,740 1,654,380 582,294 Deferred Inflows of Resources Unavailable revenues 15,028 - - 802,637 289,614 Fund Balances:

Nonspendable - - - - - Restricted for:

Low income housing - - - - 161,823 Highways and streets 112,717 916,760 472,462 - - Fire protection - - - 75,988 - Public facility general government - - - - - Pension obligation bonds - - - - - Committed for:

Debt service - - - - - Unassigned - - - - - Total fund balances 916,760 112,717 472,462 75,988 161,823 Total liabilities, deferred inflows of resources and fund balances $ 956,441 159,895 $ 744,202 $ 2,533,005 $ 1,033,731 $ (Continued)
Special Revenue Funds
Combining Balance Sheet
June 30, 2025
City of Coachella
Nonmajor Governmental Funds
121

Item 23.

Road Road Community
State Gas Maintenance Maintenance Economic Facility District Tax Dillon Road SB 1 Improvement Police Service
ASSETS
Cash and investments 280,094 $ 446,629 $ 2,368,167 $ 2,204,281 $ 122,610 $ Receivables:

Accounts - 11,342 - - - Due from other governments 103,776 - 98,742 - 18,186 Deferred special assessment - - - - 1,385,743 Interest - - - 13,597 793 Loans - - - 3,738,046 - Due from other fund 354,400 - - - - Prepaid - - - - - Restricted assets:

Cash and investments with fiscal agent - - - - - Advance to other funds - - - - - Total assets $ 457,971 738,270 $ 2,466,909 $ 5,955,924 $ 1,527,332 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable and accrued liabilities - $ - $ - $ - $ - $ Accrued wages payable - - - - - Due to other governments - - - - - Due to other funds 356,600 - 741,818 - - Advance from other funds - 1,658,330 - - - Total liabilities 1,658,330 356,600 741,818 - - Deferred Inflows of Resources Unavailable revenues - - - - 1,385,743 Fund Balances:

Nonspendable - - - - - Restricted for:

Low income housing - - - 5,955,924 - Highways and streets 381,670 - 1,725,091 - - Fire protection - - - - - Public facility general government - - - - 141,589 Pension obligation bonds - - - - - Committed for:

Debt service - - - - - Unassigned - (1,200,359) - - - Total fund balances (1,200,359) 381,670 1,725,091 5,955,924 141,589 Total liabilities, deferred inflows of resources and fund balances $ 457,971 738,270 $ 2,466,909 $ 5,955,924 $ 1,527,332 $ (Continued)
June 30, 2025
Special Revenue Funds
City of Coachella
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
122

Item 23.

Debt Service
Fund Total
Nonmajor
Debt Governmental
Repayment Funds
ASSETS
Cash and investments 354,400 $ 9,832,455 $
Receivables:

Accounts - 11,342
Due from other governments - 763,028
Deferred special assessment - 2,188,380
Interest - 40,429
Loans - 3,738,046
Due from other funds 356,600 711,000 Prepaid 51,234 51,234 Restricted assets:

Cash and investments with fiscal agent 1,627,502 1,627,502 Advance to other funds 8,473,063 8,473,063 , Total assets $ 27,436,479 10,862,799 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable and accrued liabilities - $ 1,975,709 $ Accrued wages payable - 8,869
Due to other governments - 13,373
Due to other funds 778,823 2,459,535
Advance from other funds - 1,658,330
Total liabilities 6,115,816 778,823
- Deferred Inflows of Resources
Unavailable revenues - 2,493,022
Fund Balances:

Nonspendable 51,234 51,234 Restricted for:

Low income housing - 6,117,747
Highways and streets 3,608,700
Fire protection - 75,988
Public facility general government - 141,589
Pension obligation bonds 899,123 899,123
Committed for:

Debt service 9,133,619 9,133,619 Unassigned - (1,200,359) Total fund balances 18,827,641 10,083,976 Total liabilities, deferred inflows of resources and fund balances $ 27,436,479 10,862,799 $
(Concluded)
June 30, 2025
City of Coachella
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
123

Item 23.

Landscape Fire
Air Quality Local and Lighting Protection
Improvement Transportation District District CDBG
REVENUES:

Taxes - $ - $ - $ 1,351,627 $ - $
Charges for services - - - 51,700 - Intergovernmental 42,519 811,814 - 53,176 26,499 Special assessments - - 2,750,194 1,173,446 - Investment income (loss) 3,508 57,799 6,477 32,377 4,452 Net increase (decrease) in the fair value of investments - - - 21,097 - Other revenue - - 8,915 - - Total revenues 869,613 46,027 2,765,586 2,683,423 30,951 EXPENDITURES:

Current:

Public safety - police - - - - - Public safety - fire - - - 5,303,416 - Public works 43,161 - 2,603,863 - - Capital outlay - 1,573,808 - - - Debt service:

Principal retirement - - - - - Interest and fiscal charges - - - - - Total expenditures 1,573,808 43,161 2,603,863 5,303,416 - Excess (deficiency) of revenues over expenditures (704,195) 161,723 2,866 (2,619,993) 30,951 OTHER FINANCING SOURCES (USES):

Transfers in - - - 3,383,212 453,271 Transfers out - - (267,807) (703,397) (26,499) Total other financing sources (uses) - - (267,807) 2,679,815 426,772 Net change in fund balances (704,195) 2,866 (106,084) 59,822 457,723 FUND BALANCES:

Beginning of year, as previously
presented as of June 30, 2024 109,851 1,620,955 578,546 16,166 (295,900) Change within financial reporting entity:
(major to nonmajor) - - - - - Beginning of year, as restated (Note 16) 109,851 1,620,955 578,546 16,166 (295,900) End of year $ 916,760 112,717 $ 472,462 $ 75,988 $ 161,823 $ (Continued)
City of Coachella
For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
124

Item 23.

Road Road Community
State Gas Maintenance Maintenance Economic Facility District Tax Dillon Road SB 1 Improvement Police Service
REVENUES:

Taxes - $ - $ - $ - $ - $
Charges for services - - - - - Intergovernmental 1,219,102 51,536 1,171,861 - - Special assessments - - - - 1,924,493 Investment income (loss) - (15,628) - 77,270 (6,339) Net increase (decrease) in the fair value of investments - - - 34,859 - Other revenue - - - - - Total revenues 35,908 1,219,102 1,171,861 112,129 1,918,154 EXPENDITURES:

Current:

Public safety - police - - - - 503
Public safety - fire - - - - - Public works - - - - - Capital outlay 841,900 1,446,719 741,818 - - Debt service:

Principal retirement - - - - - Interest and fiscal charges - - - - - Total expenditures 1,446,719 841,900 741,818 - 503 Excess (deficiency) of revenues over expenditures (1,410,811) 377,202 430,043 112,129 1,917,651 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out (356,600) - - (237,351) (1,868,986) Total other financing sources (uses) - (356,600) - (237,351) (1,868,986) Net change in fund balances (1,410,811) 20,602 430,043 (125,222) 48,665 FUND BALANCES:

Beginning of year, as previously
presented as of June 30, 2024 361,068 210,452 1,295,048 6,081,146 92,924 Change within financial reporting entity:
(major to nonmajor) - - - - - Beginning of year, as restated (Note 16) 361,068 210,452 1,295,048 6,081,146 92,924 End of year $ (1,200,359) 381,670 $ 1,725,091 $ 5,955,924 $ 141,589 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2025
City of Coachella
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
125

Item 23.

Debt Service
Fund Total
Nonmajor
Debt Governmental
Repayment Funds
REVENUES:

Taxes - $ 1,351,627 $
Charges for services - 51,700 Intergovernmental - 3,376,507 Special assessments - 5,848,133 Investment income (loss) 9,569 169,485 Net increase (decrease) in the fair value of investments - 55,956 Other revenue - 8,915 Total revenues 10,862,323 9,569 EXPENDITURES:

Current:

Public safety - police - 503 Public safety - fire - 5,303,416 Public works - 2,647,024 Capital outlay - 4,604,245
Debt service:

Principal retirement 1,456,688 1,456,688
Interest and fiscal charges 978,075 978,075
Total expenditures 14,989,951 2,434,763 Excess (deficiency) of revenues over expenditures (4,127,628) (2,425,194) OTHER FINANCING SOURCES (USES):

Transfers in 2,315,247 6,151,730 Transfers out (1,175,355) (4,635,995) Total other financing sources (uses) 1,515,735 1,139,892 Net change in fund balances (2,611,893) (1,285,302) FUND BALANCES:

Beginning of year, as previously
presented as of June 30, 2024 - 10,070,256 Change within financial reporting entity:
(major to nonmajor) 11,369,278 11,369,278
Beginning of year, as restated (Note 16) 11,369,278 21,439,534 End of year $ 18,827,641 10,083,976 $
(Concluded)
City of Coachella
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
126

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 60,000 $ 60,000 $ 42,519 $ (17,481) $ Investment income 500 500 3,508 3,008 Total revenues 60,500 60,500 46,027 (14,473) EXPENDITURES:

Current:

Public works 46,000 46,000 43,161 2,839 Total expenditures 46,000 46,000 43,161 2,839 Net change in fund balance $ 14,500 14,500 $ 2,866 (11,634) $ FUND BALANCE:

Beginning of year 109,851 End of year $ 112,717
Budgeted Amounts
City of Coachella
For the Year Ended June 30, 2025
Air Quality Improvement Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 127

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 834,000 $ 834,000 $ 811,814 $ (22,186) $ Investment income 8,000 8,000 57,799 49,799 Total revenues 842,000 842,000 869,613 27,613 EXPENDITURES:

Capital outlay 2,100,425 2,018,809 1,573,808 445,001 Total expenditures: 2,018,809 2,100,425 1,573,808 445,001 Net change in fund balance $ (1,176,809) (1,258,425) $ (704,195) 472,614 $ FUND BALANCE:

Beginning of year 1,620,955 End of year $ 916,760
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Local Transportation Special Revenue Fund
For the Year Ended June 30, 2025
128

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessments 2,760,927 $ 2,760,927 $ 2,750,194 $ (10,733) $ Investment income - - 6,477 6,477 Other revenue - - 8,915 8,915 Total revenues 2,760,927 2,760,927 2,765,586 4,659 EXPENDITURES:

Current:

Public works 2,740,650 2,740,650 2,603,863 136,787 Total expenditures 2,740,650 2,740,650 2,603,863 136,787 Excess (deficiency) of revenues over expenditures 20,277 20,277 161,723 141,446 OTHER FINANCING (USES):

Transfers out (267,807) (267,807) (267,807) - Total other financing (uses) (267,807) (267,807) (267,807) - Net change in fund balance $ (247,530) (247,530) $ (106,084) 141,446 $ FUND BALANCE:

Beginning of year 578,546 End of year $ 472,462
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Landscape and Lighting District Special Revenue Fund
For the Year Ended June 30, 2025
129

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 950,000 $ 950,000 $ 1,351,627 $ 401,627 $
Charges for services 40,000 40,000 51,700 11,700 Intergovernmental - - 53,176 53,176 Special assessments 1,163,299 1,163,299 1,173,446 10,147 Investment income - - 32,377 32,377
Net increase (decrease) in the
fair value of investments - - 21,097 21,097 Total revenues 2,153,299 2,153,299 2,683,423 530,124 EXPENDITURES:

Current:

Public safety 5,061,261 5,061,261 5,303,416 (242,155) Total expenditures 5,061,261 5,061,261 5,303,416 (242,155) Excess (deficiency) of revenues over expenditures (2,907,962) (2,907,962) (2,619,993) 287,969 OTHER FINANCING SOURCES (USES):

Transfers in 3,242,928 3,242,928 3,383,212 140,284 Transfers out (703,397) (703,397) (703,397) - Total other financing sources (uses) 2,539,531 2,539,531 2,679,815 140,284 Net change in fund balance $ (368,431) (368,431) $ 59,822 428,253 $ FUND BALANCE:

Beginning of year 16,166 End of year $ 75,988
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Fire Protection District Special Revenue Fund
For the Year Ended June 30, 2025
130

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 810,000 $ 810,000 $ 26,499 $ (783,501) $ Investment income - - 4,452 4,452 Total revenues 810,000 810,000 30,951 (779,049) OTHER FINANCING (USES):

Transfers in - - 453,271 453,271 Transfers out - - (26,499) (26,499) Total other financing (uses) - - 426,772 426,772 Net change in fund balance $ 810,000 810,000 $ 457,723 (352,277) $ FUND BALANCE:

Beginning of year (295,900) End of year $ 161,823
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) CDBG Special Revenue Fund
For the Year Ended June 30, 2025
131

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 1,211,000 $ 1,211,000 $ 1,219,102 $ 8,102 $ Total revenues 1,211,000 1,211,000 1,219,102 8,102 EXPENDITURES:

Capital outlay - - 841,900 (841,900) Total expenditures - - 841,900 (841,900) Excess (deficiency) of revenues over expenditures 1,211,000 1,211,000 377,202 (833,798) OTHER FINANCING (USES):

Transfers out (1,211,000) (1,211,000) (356,600) 854,400 Total other financing (uses) (1,211,000) (1,211,000) (356,600) 854,400 Net change in fund balance $ - - $ 20,602 20,602 $ FUND BALANCE:

Beginning of year 361,068 End of year $ 381,670
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
132

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 50,000 $ 50,000 $ 51,536 $ 1,536 $
Investment income (loss) - - (15,628) (15,628) Total revenues 50,000 50,000 35,908 (14,092) EXPENDITURES:

Capital outlay 1,816,597 1,816,597 1,446,719 369,878 Total expenditures 1,816,597 1,816,597 1,446,719 369,878 Net change in fund balance $ (1,766,597) (1,766,597) $ (1,410,811) 355,786 $ FUND BALANCE:

Beginning of year 210,452 End of year $ (1,200,359)
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Road Maintenance Dillon Road Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
133

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 1,099,700 $ 1,099,700 $ 1,171,861 $ 72,161 $ Total revenues 1,099,700 1,099,700 1,171,861 72,161 EXPENDITURES:

Capital outlay 2,216,122 1,206,496 741,818 464,678 Total expenditures 1,206,496 2,216,122 741,818 464,678 Net change in fund balance $ (106,796) (1,116,422) $ 430,043 536,839 $ FUND BALANCE:

Beginning of year 1,295,048 End of year $ 1,725,091
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Road Maintenance SB1 Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
134

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessments 1,868,986 $ 1,868,986 $ 1,924,493 $ 55,507 $ Investment income (loss) - - (6,339) (6,339) Total revenues 1,868,986 1,868,986 1,918,154 49,168 EXPENDITURES:

Current:

Public safety - police 6,000 6,000 503 5,497 Total expenditures 6,000 6,000 503 5,497 Excess (deficiency) of revenues over expenditures 1,862,986 1,862,986 1,917,651 54,665 OTHER FINANCING (USES):

Transfers out (1,868,986) (1,868,986) (1,868,986) - Total other financing (uses) (1,868,986) (1,868,986) (1,868,986) - Net change in fund balance $ (6,000) (6,000) $ 48,665 54,665 $ FUND BALANCE:

Beginning of year 92,924 End of year $ 141,589
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Community Facility District - Police Service Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
135

Item 23.

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment income - $ - $ 9,569 $ 9,569 $
Total revenues - - 9,569 9,569 EXPENDITURES:

Debt service:

Principal retirement 1,521,330 1,521,330 1,456,688 64,642 Interest and fiscal charges 859,470 859,470 978,075 (118,605) Total expenditures 2,380,800 2,380,800 2,434,763 (53,963) Excess (deficiency) of revenues over expenditures (2,380,800) (2,380,800) (2,425,194) (44,394) OTHER FINANCING SOURCES (USES):

Transfers in 1,936,203 1,936,203 2,315,247 379,044 Transfers out - - (1,175,355) (1,175,355) Total other financing sources (uses) 1,936,203 1,936,203 1,139,892 (796,311) Net change in fund balance $ (444,597) (444,597) $ (1,285,302) (840,705) $ FUND BALANCE:

Beginning of year 11,369,278 End of year $ 10,083,976
Budgeted Amounts
City of Coachella
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued) Debt Repayment Debt Service Fund
For the Year Ended June 30, 2025
136

Item 23.

CUSTODIAL FUNDS
137

Item 23.

This page intentionally left blank.
138

Item 23.

Custodial Funds:

Flood Control Capital Facilities Fund - used to account for the assets held on behalf of the Coachella Valley Water District for storm drainage and other capital projects.

Refuse Fund - used to account for the receipts collected and distributed to Burrtec Waste & Recycling Services, LLC for refuse services provided to City residents.

Coachella Parks and Recreation Foundation Fund - used to account for the receipts collected and distributed to the Coachella Parks and Recreation Foundation.

Special Assessment CFD 2018-1 Glenroy Fund - used to account for special assessment paid by property owners in the CFD 2018-1 Glenroy and to make the debt service payments on their behalf.

City of Coachella
Custodial Funds
139

Item 23.

This page intentionally left blank.
140

Item 23.

Coachella Special
Parks and Assessment
Flood Control Recreation CFD 2018-1 Total Custodial
Capital Facilities Refuse Fund Foundation Glenroy Funds ASSETS
Cash and investments 2,469,248 $ 36,491 $ 10,317 $ 726,390 $ 3,242,446 $ Accounts receivable - 127,118 - - 127,118 Interest receivable 13,682 - - - 13,682 Total Assets 163,609 2,482,930 10,317 726,390 3,383,246 LIABILITIES Accounts payable - 49,767 - - 49,767 Total liabilities 49,767 - - - 49,767 NET POSITION Restricted for:

Individuals, organization, and other governments 2,482,930 $ 113,842 $ 10,317 $ 726,390 $ 3,333,479 $ City of Coachella
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
141

Item 23.

Coachella Special
Parks and Assessment
Flood Control Recreation CFD 2018-1 Total Custodial
Capital Facilities Refuse Fund Foundation Glenroy Funds ADDITIONS:

Assessment revenue collected - $ - $ - $ 431,092 $ 431,092 $ Investment income 66,358 - - - 66,358 Net increase (decrease) in the fair value of investments 45,709 - - - 45,709 Refuse revenue collected for other organization - 3,726,499 - - 3,726,499 Contributions and donations - - - - - Total additions 3,726,499 112,067 - 431,092 4,269,658 DEDUCTIONS:

Payment of special assessment district expense - - 3,790 382,004 385,794 Payment of refuse revenue to other organization - 3,613,356 - - 3,613,356 Total deductions 3,613,356 - 3,790 382,004 3,999,150 Change in net position 113,143 112,067 (3,790) 49,088 270,508 NET POSITION:

Beginning of year 2,370,863 699 14,107 677,302 3,062,971 End of year 2,482,930 $ 113,842 $ 10,317 $ 726,390 $ 3,333,479 $ City of Coachella
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2025
142

Item 23.

STATISTICAL SECTION
143

Item 23.

This page intentionally left blank.
144

Item 23.

Contents: Pages
146 - 155
156 - 164
165 - 170
171 - 172
173 - 177
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information - These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs.

City of Coachella
Description of Statistical Section Contents
This part of the City of Coachella's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Financial Trends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 145

Item 23.
2016 2017 (1) 2018 2019 2020
Governmental activities:

Net investment in
capital assets 157,898,999 $ 166,082,543 $ 169,053,563 $ 175,347,890 $ 177,654,735 $ Restricted 3,795,395 4,053,609 9,447,922 11,302,241 12,089,961 Unrestricted 13,006,316 5,126,523 (1,023,578) (4,752,725) (5,589,645) Total governmental net position 174,958,924 $ 175,004,461 $ 177,477,907 $ 181,897,406 $ 184,155,051 $ Business-type activities:

Net investment in
capital assets 29,332,671 $ 29,366,927 $ 29,018,484 $ 28,549,842 $ 27,498,094 $ Restricted 11,854,918 11,783,670 13,395,402 12,728,682 12,551,198 Unrestricted (2,613,339) (1,742,673) (1,498,515) 1,557,514 3,450,313 Total business-type net position 38,503,002 $ 39,479,172 $ 40,915,371 $ 42,836,038 $ 43,499,605 $ Primary government:

Net investment in capital assets 187,231,670 $ 195,449,470 $ 198,072,047 $ 203,897,732 $ 205,152,829 $ Restricted 15,650,313 15,837,279 22,843,324 24,030,923 24,641,159 Unrestricted 10,392,977 3,383,850 (2,522,093) (3,195,211) (2,139,332) Total primary gov't net position 213,461,926 $ 214,483,633 $ 218,393,278 $ 224,733,444 $ 227,654,656 $ (1) Restated to reflect implementation of GASB 75 and prior period adjustments (2) Restated to reflect implementation of GASB 101 and error corrections.

Source: City of Coachella
Fiscal Years
City of Coachella
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
146

Item 23.
2021 2022 2023 2024(2) 2025
Governmental activities:

Net investment in
capital assets 177,996,160 $ 176,607,897 $ 185,565,733 $ 184,375,498 $ 196,224,441 $ Restricted 21,736,651 11,338,507 19,415,808 18,469,626 23,614,547 Unrestricted 2,185,791 17,672,055 19,267,524 20,535,164 14,059,391 Total governmental net position 191,520,458 $ 216,016,603 $ 224,249,065 $ 223,380,288 $ 233,898,379 $ Business-type activities:

Net investment in
capital assets 27,504,364 $ 29,657,790 $ 30,986,449 $ 28,935,952 $ 35,728,243 $ Restricted 9,217,697 14,725,959 10,193,969 13,331,879 12,556,099 Unrestricted 2,537,511 11,617,350 7,077,096 6,758,234 3,554,077 Total business-type net position 44,767,834 $ 50,492,837 $ 48,257,514 $ 49,026,065 $ 51,838,419 $ Primary government:

Net investment in capital assets 205,500,524 $ 206,265,687 $ 216,552,182 $ 213,311,450 $ 231,952,684 $ Restricted 30,954,348 26,064,466 29,609,777 31,801,505 36,170,646 Unrestricted 4,723,302 29,289,405 26,344,620 27,293,398 17,613,468 Total primary gov't net position 236,288,292 $ 266,509,440 $ 272,506,579 $ 272,406,353 $ 285,736,798 $ (1) Restated to reflect implementation of GASB 75 and prior period adjustments (2) Restated to reflect implementation of GASB 101 and error corrections.

Source: City of Coachella
Fiscal Years
City of Coachella
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
147

Item 23.
2016 2017 2018 2019 2020
Expenses:

Governmental activities:

General government $ 4,251,234 4,849,757 $ 6,836,135 $ 6,368,636 $ 6,553,545 $ Public safety 11,972,181 12,338,488 11,280,788 11,886,177 11,774,356 Community development - - 1,857,803 2,016,154 1,790,318 Public works 8,461,080 8,553,492 9,407,247 9,249,130 8,328,169 Parks and recreation 2,504,397 2,547,807 3,048,758 2,681,043 2,568,131 Interest on long-term debt 290,576 284,159 595,177 673,403 670,778 Total governmental activities 28,444,298 27,608,873 33,025,908 32,874,543 31,685,297 Business-type activities
Water 5,286,149 5,957,705 6,156,918 6,332,662 5,866,721 Sanitary 5,451,109 5,206,579 5,387,442 5,659,749 5,591,651 Total business-type activities 10,492,728 11,408,814 11,544,360 11,992,411 11,458,372 Total primary government expenses 39,017,687 38,937,026 44,570,268 44,866,954 43,143,669 Program Revenues Governmental activities:

Charges for services:

General government 1,403,812 995,116 481,951 501,631 796,669 Public safety 923,539 601,521 637,133 606,712 473,001
Community development - - 667,214 1,222,486 564,547
Public works 567,991 993,438 2,055,336 1,571,685 932,899 Parks and recreation 78,314 63,165 58,578 55,125 66,033 Operating grants and contributions 5,545,347 6,505,798 8,385,986 9,401,381 7,937,754 Capital grants and contributions 15,028,254 12,079,607 6,258,668 3,247,640 4,879,449 Total governmental activities program revenue 22,816,543 21,969,359 18,544,866 16,606,660 15,650,353 Business Type Activities Charges for services:

Water 6,795,227 5,991,334 5,810,063 6,170,863 6,221,940 Sanitary 5,411,565 5,480,180 5,312,468 5,438,519 5,866,814 Capital grants and contributions - - 858,571 1,702,766 776,614 Total business-type activities 12,275,407 11,402,899 11,981,102 13,312,148 12,865,368 Total primary government activities program revenues 28,296,723 33,372,258 30,525,968 29,918,808 28,515,721 Net revenues (expenses):

Governmental activities (5,627,755) (5,639,514) (14,481,042) (16,267,883) (16,034,944) Business-type activities 1,782,679 (5,915) 436,742 1,319,737 1,406,996 Total net revenues (expenses) (3,845,076) (5,645,429) (15,878,586) (14,948,146) (14,627,948) (Continued)
(1) Reclassifications were made to the 2017 balances
Source: City of Coachella
Fiscal Years
Last Ten Fiscal Years
(accrual basis of accounting)
City of Coachella
Changes in Net Position
148

Item 23.
2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government $ 6,549,997 7,540,100 $ 4,540,138 $ 11,911,955 $ 13,316,990 $ Public safety 14,091,910 13,095,197 10,755,514 17,927,110 17,400,860 Community development 2,763,141 1,943,784 86,174 4,846,387 5,969,173 Public works 10,631,562 13,357,859 10,326,119 11,432,375 12,585,275 Parks and recreation 2,730,838 2,057,642 2,208,681 3,900,723 3,518,920 Interest on long-term debt 954,884 915,310 771,465 691,304 1,079,008 Total governmental activities 36,896,365 39,735,859 28,688,091 50,709,854 53,870,226 Business-type activities
Water 7,121,639 6,595,413 910,853 8,958,174 8,278,124
Sanitary 6,089,286 5,816,793 5,475,261 8,457,435 7,283,012 Total business-type activities 12,938,432 12,684,699 6,386,114 17,415,609 15,561,136 Total primary government expenses 52,420,558 49,834,797 35,074,205 68,125,463 69,431,362 Program Revenues Governmental activities:

Charges for services:

General government 578,245 601,681 862,241 1,068,138 17,790 Public safety 179,705 434,478 303,107 406,708 393,515
Community development 1,051,471 686,961 1,268,718 1,433,724 1,022,962 Public works 2,298,215 3,907,646 4,576,373 4,168,950 3,763,100 Parks and recreation 29,566 743 12,164 1,234 2,250
Operating grants and contributions 8,759,557 9,937,711 8,975,380 10,937,624 18,460,177 Capital grants and contributions 5,482,587 5,992,390 4,689,833 10,170,330 6,685,677 Total governmental activities
program revenue 18,293,046 21,647,911 20,687,817 28,186,708 30,345,471 Business Type Activities Charges for services:

Water 5,991,611 6,370,999 6,851,756 6,238,825 6,859,284 Sanitary 6,658,098 5,969,661 6,628,586 7,082,823 7,920,643 Capital grants and contributions 1,057,169 1,951,333 2,077,157 2,375,244 3,429,935 Total business-type activities 13,018,441 14,980,430 15,557,499 15,696,892 18,209,862 Total primary government activities program revenues 31,311,487 36,628,341 36,245,316 43,883,600 48,555,333 Net revenues (expenses):

Governmental activities (18,603,319) (18,087,948) (8,000,274) (22,523,146) (23,524,755) Business-type activities 80,009 2,295,731 9,171,385 (1,718,717) 2,648,726 Total net revenues (expenses) (18,523,310) (15,792,217) 1,171,111 (24,241,863) (20,876,029) (Continued) Source: City of Coachella
Fiscal Years
(accrual basis of accounting)
City of Coachella
Changes in Net Position (Continued)
Last Ten Fiscal Years
149

Item 23.
2016 2017 (1) 2018 2019 2020
General Revenues
Governmental activities:

Taxes:

Property taxes 4,944,626 $ 4,754,692 $ 5,036,564 $ 5,439,836 $ 6,042,270 $ Other taxes 12,186,264 11,306,756 12,057,090 13,486,358 12,468,513 Interest and rental income 240,638 91,806 182,336 209,045 427,179 Other revenues 1,595,993 171,567 442,860 409,173 340,100 Transfers 1,280,352 1,268,912 1,022,479 910,030 1,573,863 Total governmental activities 20,247,873 17,593,733 18,741,329 20,454,442 20,851,925 Business-type activities Other taxes 122,031 140,354 146,243 183,787 178,215 Interest and rental income 191,419 (24,732) (8,682) 560,759 713,094 Other revenues - 759,370 1,001,380 679,155 705,991 Transfers (1,280,352) (1,268,912) (1,022,479) (910,030) (1,573,863) Total business-type activities (966,902) (393,920) 116,462 513,671 23,437 Total primary government 19,280,971 17,199,813 18,857,791 20,968,114 20,875,363 Changes in Net Position Governmental activities 5,766,831 1,325,850 2,706,385 1,851,123 2,763,977 Business-type activities (530,160) 925,817 1,523,458 593,680 2,319,168 Total primary government $ 2,251,667 5,236,671 $ 4,229,843 $ 2,444,803 $ 5,083,145 $ (Continued)
(1) Reclassifications were made to the 2017 balances
Source: City of Coachella
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Years
City of Coachella
Changes in Net Position (Continued)
150

Item 23.
2021 2022 2023 2024 2025
General Revenues
Governmental activities:

Taxes:

Property taxes 6,271,457 $ 6,474,314 $ 7,708,910 $ 7,976,283 $ 8,945,307 $ Other taxes 16,967,648 19,386,064 20,529,540 20,083,154 19,664,163 Interest and rental income 60,372 (76,808) 369,533 1,170,319 2,048,964 Other revenues 453,340 3,069,849 624,518 534,374 1,322,644 Transfers 1,700,538 1,582,463 1,523,107 2,216,779 2,048,850 Total governmental activities 25,453,355 30,435,882 30,755,608 31,980,909 34,029,928 Business-type activities Other taxes 172,514 228,704 197,251 232,753 247,664 Interest and rental income (29,085) (706,577) 187,974 1,126,203 1,209,501 Other revenues 529,607 674,492 621,276 658,681 655,313 Transfers (1,700,538) (1,582,463) (1,523,107) (2,216,779) (2,048,850) Total business-type activities (1,027,502) (1,385,844) (516,606) (199,142) 63,628 Total primary government 24,425,854 29,050,039 30,239,003 31,781,768 34,093,556 Changes in Net Position Governmental activities 25,453,356 22,435,608 8,232,462 8,456,154 10,505,173 Business-type activities (1,027,502) 7,785,541 (2,235,323) 2,449,584 2,712,354 Total primary government $ 30,221,149 24,425,854 $ 5,997,139 $ 10,905,738 $ 13,217,527 $ (Concluded)
Source: City of Coachella
Fiscal Years
City of Coachella
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
151

Item 23.
2016 2017 2018 2019 2020 *
General Fund:

Nonspendable 1,086,738 $ 4,508,082 $ 15,626,798 $ 8,771,350 $ 8,255,095 $ Restricted 1,046 1,034 1,045 1,079 74,850 Committed 1,895,358 962,276 58,049 79,063 - Assigned 545 545 545 545 - Unassigned 4,632,342 7,810,266 6,993,819 6,390,418 8,284,935 Total general fund $ 11,037,373 9,860,859 $ 22,680,256 $ 15,242,455 $ 16,614,880 $ All other governmental funds:

Nonspendable - $ - $ 68,311 $ 65,872 $ 63,432 $
Restricted 4,387,395 4,946,650 11,389,809 10,461,224 9,510,314 Committed 15,424,846 - 4,028,827 11,219,884 11,534,548 Assigned 940,181 1,631,603 - - - Unassigned (3,723,091) (62,260) (13,315,214) (18,895,816) (20,103,042) Total all other governmental funds 10,544,820 $ 17,029,331 $ (1,857,094) $ 2,851,164 $ 1,005,252 $ Total governmental funds 20,405,679 $ 28,066,704 $ 20,823,162 $ 18,093,619 $ 17,620,132 $ * Reclassification was made to committed fund balances for all other governmental funds.

Source: City of Coachella
City of Coachella
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Years
152

Item 23.
2021 * 2022 * 2023 2024 2025
General Fund:

Nonspendable 7,469,937 $ 9,671,209 $ 9,876,579 $ 10,658,680 $ 13,097,809 $ Restricted - - - 92,925 - Committed 6,701,122 6,701,122 8,375,378 8,375,378 9,804,903 Assigned 4,600,000 4,600,000 4,633,110 4,633,110 7,238,113 Unassigned 12,859,944 17,762,967 3,109,913 20,589,590 12,250,551 Total general fund $ 33,832,275 21,880,972 $ 40,648,034 $ 44,349,683 $ 42,391,376 $ All other governmental funds:

Nonspendable 60,993 $ 58,553 $ 56,113 $ 53,674 $ 51,234 $ Restricted 12,841,882 10,758,684 12,104,435 11,255,613 11,132,086 Committed 10,311,490 10,922,417 9,689,030 10,426,147 9,133,619 Assigned - - - - - Unassigned (22,777,711) (20,468,868) (18,175,882) (18,601,494) (21,357,675) Total all other governmental funds 1,273,226 $ 434,214 $ 3,673,696 $ 3,133,940 $ (1,040,736) $ Total governmental funds 23,154,198 $ 34,266,489 $ 44,321,730 $ 47,483,623 $ 41,350,640 $ * Reclassification was made to committed fund balances for all other governmental funds.

Source: City of Coachella
Fiscal Years
City of Coachella
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
153

Item 23.
2016 2017 2018 2019 2020
Revenues:

Taxes 17,164,738 $ 17,984,732 $ 17,871,790 $ 19,848,580 $ 19,279,880 $ Licenses and permits 798,212 816,351 271,415 285,142 460,245 Charges for services 450,980 628,946 1,372,626 881,539 639,637 Fines, forfeitures and penalties 502,295 602,642 527,480 374,848 395,433 Intergovernmental 15,923,966 8,046,558 4,854,874 8,631,744 9,025,629 Developer fees 993,438 1,800,199 1,330,260 537,766 1,850,336 Special Assessments 3,489,601 3,228,493 3,643,875 3,562,383 3,691,811 Investment Income* 240,638 32,899 217,530 445,900 662,261 Other income 1,595,993 900,843 1,944,043 814,026 1,120,728 Total revenues 40,898,753 34,302,771 32,033,893 35,381,928 37,125,960 Expenditures:

Current:

General government 5,150,306 4,348,014 5,767,796 6,070,256 6,399,115 Public safety 12,700,293 11,905,352 11,755,720 11,744,788 12,920,006 Community development 2,596,794 2,623,874 1,756,301 Engineering** Public works 7,190,094 7,601,727 4,934,863 4,631,386 5,964,293 Capital outlays 16,452,981 13,482,382 18,782,238 12,652,515 10,654,477 Debt service:

Pass-through Agreements - - - - - Principal retirements 165,000 559,477 496,005 513,490 6,131,077 Interest and fiscal changes 284,709 566,473 765,920 777,725 973,999 Total expenditures 40,346,150 40,060,658 45,126,416 38,986,954 44,799,268 Excess (deficiency) of revenues over (under) expenditures 552,603 (5,757,887) (13,092,523) (3,605,026) (7,673,308) Other financing sources (uses):

Issuance of debt / Inception of Leases - 12,150,000 - - 5,445,169 Transfers in 17,609,220 19,309,673 29,980,647 17,862,813 15,595,993 Transfers out (16,340,308) (18,029,321) (28,958,168) (16,952,783) (14,022,130) Total other financing sources (uses) 1,280,352 13,418,912 1,022,479 910,030 7,019,032 Net change in fund balances (1,902,455) $ 1,832,955 $ 7,661,025 $ (12,070,044) $ (2,694,996) $ Debt service as a percentage of
non-capital expenditures 1.88% 4.24% 4.79% 4.90% 20.81% Source: City of Coachella
City of Coachella
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
* The City started tracking investment income separately form fair value changes in fiscal year 2021 as shown in the City's financial statement. Fair value change information is not available for receding years, so both components are shown netted here to avoid looking like there was no fair value change in the preceding years. ** Engineering was previously grouped with Public Works; however, Engineering is a separate department and has been presented separately in fiscal 2021 to avoid confusion.

Fiscal Years
154

Item 23.
2021 2022 2023 2024 2025
Revenues:

Taxes 24,245,454 $ 26,806,312 $ 28,616,817 $ 29,852,423 $ 29,593,190 $ Licenses and permits 648,250 738,102 910,130 508,714 700,540 Charges for services 676,676 1,388,634 1,051,477 816,517 652,970 Fines, forfeitures and penalties 155,740 261,878 374,373 329,632 344,786 Intergovernmental 8,785,762 5,219,973 17,218,966 8,797,501 11,313,146 Developer fees 3,716,801 3,926,867 3,701,165 913,683 3,297,276 Special Assessments 4,269,595 3,978,786 4,586,562 5,439,394 5,848,133 Investment Income* 6,722 (380,225) 649,571 1,645,865 2,716,088 Other income 727,402 3,655,227 1,296,843 765,999 2,392,576 Total revenues 42,941,593 45,886,363 58,405,904 49,069,728 56,858,705 Expenditures:

Current:

General government: 8,015,833 6,605,748 8,008,593 9,626,694 11,400,431 Public safety 13,499,481 19,468,415 14,271,194 14,480,916 17,292,389 Community development 1,641,748 4,003,013 3,303,079 5,209,986 5,703,594 Engineering** 1,585,914 797,722 656,415 922,728 933,756 Public works 8,805,327 8,799,241 6,823,545 9,539,164 7,868,195 Capital outlays 8,435,278 4,953,307 14,676,570 10,787,478 20,104,922 Debt service:

Pass-through Agreements - - - - - Principal retirements 523,769 1,268,377 1,316,670 1,351,350 1,840,423 Interest and fiscal changes 840,090 851,449 833,452 940,234 1,305,465 Total expenditures 51,677,639 38,417,073 49,889,518 52,858,550 66,449,175 Excess (deficiency) of revenues over (under) expenditures (8,736,046) 7,469,290 8,516,386 (3,788,822) (9,590,470) Other financing sources (uses):

Issuance of debt / Inception of Leases 12,569,574 - 15,748 5,220,458 1,408,637 Transfers in 12,930,703 15,193,966 5,011,266 12,317,937 24,381,524 Transfers out (11,348,240) (13,493,428) (3,488,159) (10,101,158) (22,332,674) Total other financing sources (uses) 14,270,112 1,582,463 1,538,855 7,437,237 3,457,487 Net change in fund balances (654,276) $ 5,534,066 $ 10,055,241 $ 3,648,415 $ (6,132,983) $ Debt service as a percentage of
non-capital expenditures 3.15% 6.33% 6.11% 5.45% 6.79%
Source: City of Coachella
City of Coachella
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
* The City started tracking investment income separately form fair value changes in fiscal year 2021 as shown in the City's financial statement. Fair value change information is not available for receding years, so both components are shown netted here to avoid looking like there was no fair value change in the preceding years. ** Engineering was previously grouped with Public Works; however, Engineering is a separate department and has been presented separately in fiscal 2021 to avoid confusion.

Fiscal Years
155