Concord City Council
February 10, 2026

1 COUNCILMEMBERS
Laura M. Nakamura, Mayor
Dominic D. Aliano, Vice Mayor
Pablo Benavente
Laura M. Hoffmeister
Carlyn S. Obringer
Civic Center
1950 Parkside Drive
Concord, CA 94519
www.cityofconcord.org
Regular Meeting of the
Concord City Council
Tuesday
February 10, 2026
6:30 p.m. - Open Session Council Chamber
1950 Parkside Drive
and/or various
telephonic/electronic
locations
*IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING PARTICIPATION* Members of the public are invited to attend and participate at: Council Chamber, 1950 Parkside Drive, Concord, CA.

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely, remote public comment will not be accepted. Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.

HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:

1. IN PERSON:
a.Members of the public can provide in-person comments in the Council Chamber.

Members of the public are encouraged, but not required, to fill out a speaker card. The Council Chamber will have seating available for members of the public to attend in person up to full seating capacity.

2 2. REMOTE: Remote public comment will not be accepted, except when a Councilmember participates remotely. At the time of the posting of this agenda, none of the Councilmembers have notified the City Clerk’s Office that they intend to participate remotely, and therefore no remote public comment will be accepted at the meeting. If, after publication of this agenda and before the meeting begins, any Councilmember determines that they will need to participate remotely, their remote participation will be announced at the outset of the meeting in connection with the Roll Call item. If a Councilmember participates in the meeting remotely, the public may participate and provide public comment remotely, as follows:
a. Zoom:
https://cityofconcord.zoom.us/j/86127419705?pwd=00dreaj95a7aOsdxlw_DgY7AEAxjIQ .VI9nWh8mdKZSRPoK or Zoom Webinar ID: 861 2741 9705 and Passcode: 936688 b.Zoom Phone Numbers. Dial Toll Free: (669) 900-6833 or (346) 348-7799 or (253) 215- 8782.
c.During the meeting, each period for public comment will be announced, and participants may use the “Raise Hand” feature on Zoom to request to speak. If calling in via Zoom use *9 to raise and lower your hand. The meeting host will call on you, by name, and promote you to panelist in the webinar so you can be seen via your camera. Please enable your microphone when it is your turn to speak. In order to ensure the orderly administration of the meeting using this method, providing your name is encouraged, but is not required. (If you need instructions on how to use this feature, please contact the City Clerk by 3:00 p.m. of the meeting date at [email protected]).

3. EMAIL:
a.Public comments can also be submitted via email to [email protected]. Please note that emailed comments will not be read aloud by staff. Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council before the meeting,

2. posted online for public inspection at
https://stream.ci.concord.ca.us/OnBaseAgendaOnline/Meetings/Search, and

3. inserted into the meeting record.
b.As emails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email.

4. TO WATCH OR LISTEN ONLY:
a.Watch on TV on Comcast Channel 28, Astound/Wave Channels 29, and AT&T U-verse Channel 99
b.Watch the TV broadcast through the City’s website by following THIS LINK c.Watch Live Streaming of the meeting by following THIS LINK d.Join the Zoom webinar by following THIS LINK
3 5. INTERPRETATION OR WRITTEN TRANSLATION:

OPEN SESSION

1. OPENING
Roll Call - Councilmember Announcements of "Just Cause" Remote Participation
Pledge of Allegiance - Vice Mayor Aliano

2. PUBLIC COMMENT PERIOD
This is a 15-minute Public Comment Period for items within the City Council’s subject matter jurisdiction that are not on this agenda. Each speaker will be limited to approximately three minutes.

State law prohibits the City Council from acting at this meeting on any matter raised during the Public Comment Period. Please see “How to Submit Public Comments” above a. Written Public Comment

3. PRESENTATIONS
a. Presentation – to Karen Sakata, Diablo Japanese American Club, proclaiming February 19, 2026, as "Japanese American Incarceration During World War II Day" in the City of Concord. Presentation by Mayor Nakamura.

1. To access interpretation or written translation during the meeting, please scan the QR Code or click this link:

Para accesar a la traducción durante la reunion, por favor escanee el Código QR o haga clic en el enlace:
https://attend.wordly.ai/join/SYMQ-8840

2. Choose Language and Click Attend
Seleccione su lenguaje y haga clic en asistir

3. Use a headset on your phone for audio or read the transcript on your device.

Use sus auriculares para escuchar el audio o leer la transcipción en el dispositivo.
4 4. CITY COUNCIL CONSENT CALENDAR
The public is entitled to address the City Council on items appearing on the Consent Calendar before or during the City Council’s consideration of the Consent Calendar. Adoption of the Consent Calendar may be made by one motion of the City Council, provided that any Councilmember, individual or organization may request removal of an item from the Consent Calendar for separate consideration.

If a request for removal of an item from the Consent Calendar has been received, the Mayor may defer action on the particular item and place the same on the regular agenda for consideration in any order s/he deems appropriate. Please see “How to Submit Public Comments” above. a. Considering – approval of minutes from the January 27, 2026, Regular Meeting. Recommended by the City Clerk.
b. Considering – adoption of Ordinance No. 26-1 entitled, "An Ordinance Amending Title 18 (Development Code), Chapters 18.30 (Residential Districts) and 18.40 (Office and Commercial Districts) to Increase Maximum Residential and Mixed-Use Building Heights in the Community Office (CO), Commercial Mixed Use (CMX), and Residential High Density (RH) Zoning Districts to Implement State Law and Objective 2.6 of the 2023-2031 Housing Element (PL25200 - MC)." Ordinance No. 26-1 was introduced on January 13, 2026, by reading of the title only and waiving further reading.

Recommended by the City Clerk.

CEQA: Statutorily exempt pursuant to California Public Resources Code Section 21080.085, enacted by Senate Bill 131 (2025); and/or Public Resources Code Section 21065 and CEQA Guidelines Sections 15060(c)(2) or 15378.
c. Considering – recommending the appointment of Michael Maestas to serve on the Contra Costa County Iron Horse Corridor (IHC) Management Program Advisory Committee representing the City of Concord for a four-year term ending January 31, 2030. Recommended by the Mayor.
d. Considering – acceptance of the Annual Comprehensive Financial Report with the Independent Auditors' Report and Required Communications Letter for the fiscal year ending June 30, 2025. Recommended by the Director of Finance.
5 5. CITY COUNCIL CONSIDERATION ITEMS
The public is entitled to address the City Council on items appearing on the agenda before or during the City Council’s consideration of that item. Each speaker will be limited to approximately three minutes. Please see “How to Submit Public Comments” above. a. Considering – a presentation by Erich Pfuehler from the East Bay Regional Park District on the District’s plans and funding needs to open the portion of the Thurgood Marshall/Home of the Port Chicago 50 Regional Park south of Bailey Road in Concord to the public; and Council direction to City staff on collaborating with the District in advocating for funding from Federal, State, and foundation sources. (No staff report for this item.) Introduction by Valerie Barone, City Manager.
b. Considering – the following:

1. Adoption of a Resolution amending the Fiscal Years 2025-26 and 2026-27 Municipal Budgets.

2. Adoption of a Resolution adopting the City of Concord’s Salary Schedule effective January 1, 2026, in accordance with the requirements of the California Public Employees Retirement System (CalPERS) for a publicly available pay schedule. Report by Kylie Hicks-Carrera, Budget Analyst.

CEQA: Not a project/exempt pursuant to Public Resources Code Section 21065, 14 Cal Code Regs. Sections 15060(c), 15061(b), 15273, and/or 15378.

6. CORRESPONDENCE
Correspondence received at the City Council meeting will be listed here on the Annotated Agenda. a. Correspondence Received at Meeting from Jenn Cazanov-Diggs Correspondence Received at Meeting from Hunter Plumley

7. REPORTS AND ANNOUNCEMENTS
Closed Session Announcements
City Manager or Staff Reports
Council Reports

8. ADJOURNMENT
Next Meeting: Regular Meeting
Date: 2/24/2026 6:30 PM
6 NOTICE TO THE PUBLIC
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited by California law to raising only those issues you or someone else raised in the hearing or in a written correspondence delivered to the City Council prior to or at the hearing.

In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or [email protected], at least 24 hours in advance of the meeting. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility.

From: Jacqueline Buckland <[email protected]>
Sent: Tuesday, February 10, 2026 11:51 AM
To : City Clerk <[email protected]>
Subject: Email for Public Comment at Today's City Council Meeting: Suggestions for AFFH documents Submitting the email below with its attachments as Public Comment for today's City Council Meeting.

From: "Jackie Buckland" <[email protected]>
To : [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], "City of Concord" <[email protected]>
Sent: Wednesday, January 28, 2026 7:05:19 PM
Subject: Suggestions for AFFH documents
At the end of yesterday's city council meeting a decision was made to create Affirmatively Furthering Fair Housing (AFFH) documents for consideration at a future meeting.

I have a couple suggestions for these documents:
1 This rezoning is going to be by specific addresses or assessor's parcel number. Provide the number of units for each address/parcel number. I have attached a picture of a page from the 1/27/26 agenda packet showing the addresses and parcel numbers for Clayton Faire - unfortunately you'll see it does not include the number of units proposed for each parcel. 2 Remove 5350 Clayton Road from the Clayton Faire addresses being rezoned for affordable housing (also shown in the picture). This is the thrift store where are the owner is not interested - which has been a major reason for excluding many properties during this project.
3 If this exercise of removing the thrift store results in a shortage of units needed to arrive at the 1000 or 1019 total, increase Palm Lake Apartments' number.

Agenda Item No. 2
Written Public Comment
February 10, 2026 2.a

Thank you for your consideration to these suggestions.

Only read on if you are interested in my reasoning behind these suggestions. 1 I think that addresses/assessors parcel numbers will be used for rezoning.

2 For more than a year many many properties have been excluded when owners are not interested in this rezoning. 3 For more than a year the Palm Lake apartments have been included in this project with the number of proposed units unchanged. (I checked back to the Jan 2025 meeting.) Why can a city council member wait until the last minutes on the last meeting it's expected to be approved to significantly decrease this number because, as he said, he has trouble with the traffic taking his daughter to school. He lives near the Palm Lake Apartments.. The representative from Palm Lake Apartments pleaded NOT to have this number reduced was ignored.

When I spoke yesterday I pointed out that this change to significantly reduce the Palm Lake apartments' numbers means that 84% of the affordable housing is in a very small area accessed by Ygnacio Valley Road - as can be seen on the second picture. I thought everyone would remember from earlier in the meeting that increased units will most likely require an additional Eastbound lane on Ygnacio Valley Road that's going to be very expensive for Concord. Also there were many other study results and public comments about impacts to transportation, schools, etc. from just the two original proposed locations on Clayton Road - adding even more units will make these problems and costs to Concord even greater.

This email is my last attempt to be heard. During the meeting, I wasn't able to use visual aids. I thought by sending a letter with attached pictures I might be able to better get my point across. Thank you for considering my suggestions.

Best Regards,
Jackie Buckland

REGULAR MEETING OF THE

CONCORD CITY COUNCIL

CITY COUNCIL CHAMBER
1950 PARKSIDE DRIVE

CONCORD, CALIFORNIA AND VARIOUS

TELEPHONIC/ELECTRONIC LOCATIONS
TUESDAY, JANUARY 27, 2026
The Concord City Council met in a regular meeting in the Council Chamber, located at 1950 Parkside Drive and via various telephonic/electronic locations at 6:30 p.m. on Tuesday, January 27, 2026, with Mayor Nakamura presiding. The pledge of allegiance was led by Councilmember Obringer. Minutes follow in abbreviated form per Resolution 3361 and Council Minutes of September 26, 1966.

ROLL CALL
COUNCILMEMBERS PRESENT: Dominic Aliano, Pablo Benavente, Laura Hoffmeister, Carlyn Obringer, Laura Nakamura
STAFF PRESENT: Valerie Barone, City Manager; Susanne Brown, City Attorney; Justin Ezell, Assistant City Manager; Joelle Fockler, City Clerk; Monique Robinson, Deputy City Clerk; Greg Taylor, Director of Information Technology; Mindy Gentry, Director of Community Development; James Nakayama, Police Captain; Colleen Awad, Community Relations Manager; Aaron Sage, Planning Manager; Carlton Thompson, City Engineer; Abhishek Parikh, Deputy Director Public Works - Transportation; Aaron Elias,
Transportation Program Manager II; Bruce Davis, Senior Civil Engineer; Ben Ulrey, Associate Planner, Deyuanne Lei,
Associate Civil Engineer; Kevin Wheat, Associate Civil Engineer

MEMBERS OF THE PUBLIC
WHO ADDRESSED THE COUNCIL: John Tague, Concord; Philip Block, Concord; Anonymous; Ramon De La Cruz; Pat Sullivan, Palm Lake Apartments; Jackie Buckland, Concord; Tahirah Dean, Public Advocates; Jennifer Morales, Monument Impact; Davina Sriovdom, East Bay Housing Organizations; Joey Flegel-Mishlove, East Bay Housing
Organizations; Anonymous; Anonymous; Anonymous

PUBLIC COMMENT PERIOD
John Tauge, Concord, spoke about his family.

Philip Block, Concord, asked the City to make a comprehensive and transparent plan regarding the transfer of San Francisco Immigration Court cases and ICE presence.

PRESENTATIONS
HUMAN TRAFFICKING AWARNESS MONTH – January 2026

No public comment was received.

4.a

City Council Minutes January 27, 2026
2 ANNOUNCEMENTS
ANNOUNCE OPENING – Measure V Oversight Committee
No public comment was received.

City Clerk Joelle Fockler announced an opening for the business community representative on Concord’s Measure V Oversight Committee for a four-year term ending December 31, 2029, and setting a deadline for Friday, February 27, 2026, at 5 p.m. for applications to be due to the City Clerk.

CITY COUNCIL CONSENT CALENDAR
No public comment was received.

APPROVE MINUTES – January 13, 2026, Regular Meeting
A motion was made by Benavente and seconded by Obringer to approve the benched minutes from the January 13, 2026, Regular Meeting. The motion passed by unanimous vote of the Council.

APPROVE PURCHASE OF TWO PALO ALTO NETWORK FIREWALLS – Optiv Security Inc.

A motion was made by Benavente and seconded by Obringer to approve the purchase of two replacement Palo Alto Network Firewalls, core security subscriptions, and five years of premium support from Optiv Security Inc., in an amount not-to-exceed $437,227, including a 10% contingency. The motion passed by unanimous vote of the Council.

APPROVE PURCHASE OF MAINTENANCE SUPPORT – ePlus Inc.

A motion was made by Benavente and seconded by Obringer to approve the purchase of three years of maintenance support, including hardware upgrades, for the City’s Pure Computer Storage System from ePlus Inc. in an amount not-to-exceed total for all three years of $168,378, including a 10% contingency The motion passed by unanimous vote of the Council.

APPROVE PURCHASE OF ONE-YEAR SUBSCRIPTION OF CROWDSTRIKE FALCON COMPLETE – ePlus Inc.

A motion was made by Benavente and seconded by Obringer to approve the purchase of a one- year subscription of CrowdStrike Falcon Complete with Identity Protection cybersecurity software from ePlus Inc. in an amount not-to-exceed $126,877, including a 10% contingency. The motion passed by unanimous vote of the Council.

AWARD CONSTRUCTION CONTRACT, APPROVE BUDGET TRANSFER, AND ACCEPT IMPROVEMENTS – Baldwin Park Dance Studio and Bathroom Reconfiguration (Project No. 2771) This item was pulled from consideration on the Consent Calendar by Councilmember Obringer.

No public comment was received.

A motion was made by Obringer and seconded by Benavente to:

1. Award a construction contract in the not-to-exceed amount of $360,549 to Alex Kushner General, Inc., authorize the available project contingency for contract change orders up to 20% of the contract amount, ratification of staff’s determination and action on the bid protest, and authorize the City Manager to execute the contract in a form acceptable to the City Attorney; and

City Council Minutes January 27, 2026
3 2. Approve a related budget transfer of $275,000 from Residential Pavement Maintenance – Phase B (Project No. 2608); and

3. Authorize the City Engineer to accept the improvements upon completion of Project No. 2771 and direct the City Clerk to file a Notice of Completion.

The motion passed by unanimous vote of the Council.

AWARD CONSTRUCTION CONTRACT, APPROVE TASK ORDER , APPROVE AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT, AND ACCEPT IMPROVEMENTS – Residential Pavement Maintenance Phase E & F (Project Nos. 2611, 2613, 2621 & 2624) This item was pulled from consideration on the Consent Calendar by Councilmember Hoffmeister.

Public comment was provided by:

John Tague, Concord
Anonymous
A motion was made by Hoffmeister and seconded by Benavente to:

1. Award a construction contract in the amount of $1,256,805 to Spencon Construction, Inc. for the Residential Pavement Maintenance Phase F_- Concrete Improvements Project located in portions of three neighborhoods, Monte Gardens, Dana Estates, and East Concord (City Project Nos. 2611 & 2624), authorize the project contingency for contract change orders up to 20% of the contract amount, and authorize the Mayor to execute the contract in a form acceptable to the City Attorney; and

2. Approve Task Order No. 6 with UNICO Engineering in the not-to-exceed amount of $732,145.03 to provide construction management, inspection, materials testing, and related services for the Residential Pavement Maintenance Phase F, and authorize the City Engineer to execute the Task Order in a form acceptable to the City Attorney; and

3. Approve Amendment No. 2 to Professional Servies Agreement with Bellecci & Associates for additional design services for the Residential Pavement Maintenance Phase E & Phase F Projects (Project Nos. 2611, 2613, 2621 & 2624) in the amount of $48,548 (for a new not-to- exceed amount of $977,819.20), and authorize the City Manager to execute the amendment in a form acceptable to the City Attorney; and

4. Authorize the City Engineer to accept the improvements upon completion of Project Nos. 2611 & 2624 and direct the City Clerk to file a Notice of Completion.

The motion passed by unanimous vote of the Council.

CITY COUNCIL PUBLIC HEARING

ADOPT RESOLUTION AMENDING GENERAL PLAN LAND USE ELEMENT AND INTRODUCE ORDINANCE – Affirmatively Furthering Fair Housing Overlay District Benjamin Ulrey, Associate Planner, introduced the item and then turned the presentation over to Eric Yurkovich, Raimi & Associates, who presented on the Affirmatively Furthering Fair Housing Program.

Mayor Nakamura recessed the meeting at 8:29 p.m. The meeting resumed at 8:42 p.m.

Public comment was provided by:

Ramon De La Cruz

City Council Minutes January 27, 2026
4 Pat Sullivan, Palm Lake Apartments
Jackie Buckland, Concord
Tahirah Dean, Public Advocates
Jennifer Morales, Monument Impact
Davina Sriovdom, East Bay Housing Organization
Joey Flegel-Mishlove, East Bay Housing Organization
John Tague, Concord
Anonymous
Anonymous
Anonymous
Anonymous
Mayor Nakamura recessed the meeting at 9:32 p.m. The meeting resumed at 9:39 p.m.

The Mayor opened a public comment period.

Public comment was provided by:

Hossam Nasser, CEO, ICG Engineering
Pat Sullivan, Palm Lake Apartments
Jackie Buckland, Concord
John Tague, Concord
Ramon De La Cruz
Anonymous
A motion was made by Benavente and seconded by Obringer to direct staff to return with the necessary documents to apply the Affirmatively Furthering Fair Housing overlay zoning as follows in the table below:

Site
#
Name Overlay
Acres
Units Notes
1 Kmart 7.85 471 Partial overlay; entire site is 13.4 acres 2 Clayton Faire 4.14 248 Full overlay over selected parcels 8 Palm Lake Apartments Infill 12.86 165 Full overlay with 165 unit cap 16 5390 Myrtle 2.35 141 Full overlay; realistic unit count is 60 18 1539 Kirker Pass 0.94 56 Full overlay
Total Units 28 1,081
and consider this public hearing item at a future City Council meeting. The motion passed by the following vote to Council:

AYES: Aliano, Benavente, Obringer, Nakamura NOES: Hoffmeister ABSENT: None

City Council Minutes January 27, 2026
5 CORRESPONDENCE
a. Agenda Item No. 5.a – Benched Draft January 13, 2026, meeting Minutes 1-13-26 b. Agenda Item No. 6.a – Benched Correspondence
c. Agenda Item No. 6.a – PowerPoint Presentation - Affirmatively Furthering Fair Housing Program d. Agenda Item No. 6.a - Correspondence received after 3 p.m. on January 27, 2026

COUNCIL REPORTS
Councilmember Obringer requested and received support from the City Council to direct the City Manager to agendize a presentation from East Bay Regional Park District on their plans and funding needs for the portion of the Thurgood Marshal/Home of the Port Chicago Fifty Park, located south of Bailey Road and is located within Concord city limits at the next Council meeting to allow the Council to discuss and give direction on how the City might partner with the District along with other cities to advocate for Federal, State, and Foundation funding for the park.

Councilmembers shared information on events and activities in which they had participated since the last meeting and commented on items of interest.

Mayor Nakamura reported on her attendance at the League of California Cities 2026 Mayors and Council Members Academy held in Sacramento, California, from January 21 – 26, 2026.

ADJOURNMENT
By order of the Mayor, the meeting was adjourned on January 27, 2026, at 10:25 p.m.

LAURA M. NAKAMURA
MAYOR

JOELLE FOCKLER, MMC

CTY CLERK

Ord. No. 26-1 1
ORDINANCE NO. 26-1
AN ORDINANCE AMENDING TITLE 18 (DEVELOPMENT CODE),
CHAPTERS 18.30 (RESIDENTIAL DISTRICTS) AND 18.40 (OFFICE AND

COMMERCIAL DISTRICTS) TO INCREASE MAXIMUM RESIDENTIAL

AND MIXED-USED BUILDING HEIGHTS IN THE COMMUNITY

OFFICE (CO), COMMERCIAL MIXED USE (CMX), AND RESIDENTIAL

HIGH DENSITY (RH) ZONING DISTRICTS TO IMPLEMENT STATE
LAW AND OBJECTIVE 2.6 OF THE 2023-2031 HOUSING ELEMENT
(PL25200 – MC)
WHEREAS, Government Code Section 65800 et seq. provides for the amendment of City of Concord (“City”) zoning laws, ordinances, rules, and regulations; and WHEREAS, the California legislature has found and declared the availability of housing to be a statewide concern and priority; and
WHEREAS, California Government Code Section 65580 et seq. (“state housing element law”) requires that the City adopt a housing element for the eight-year period 2023–2031 to accommodate the City’s Regional Housing Needs Allocation of 5,073 housing units, including units for very low-, low-, moderate-, and above-moderate-income households; and
WHEREAS, on August 22, 2023, the City adopted its 2023–2031 Housing Element (“Housing Element”); and
WHEREAS, on October 23, 2023, the California Department of Housing and Community Development certified the Housing Element, confirming that it complies with state housing element law; and
WHEREAS, the Housing Element includes Objective 2.6 which states “within one year of certification of the Housing Element, the City will increase the maximum permitted heights in the Residential Hight Density (RH), Community Office (CO), and Commercial Mixed Use (CMX) zones to achieve maximum densities and remove any potential constraints. As part of implementing this action, the City will conduct outreach with the development community and revise these heights based on the feedback received, up to a maximum of 12 feet of height for every 10 dwelling units per acre permitted by the zone;” and
WHEREAS, to implement Objective 2.6, the City conducted interviews with housing

4.b4.b4.b

Ord. No. 26-1
development stakeholders and City staff to understand constraints and opportunities to achieving maximum densities and its relationship with building height; and WHEREAS, to further implement Objective 2.6, the Association of Bay Area Governments Regional Housing Technical Assistance program’s consultant, in consultation with City of Concord staff, produced a set of feasibility tests using Concord’s development standards to assess the height increases necessary to maximize density in the CO, CMX, and RH zones; and WHEREAS, to complete implementation of Objective 2.6, this Ordinance was prepared amending the Concord Municipal Code Title 18 (Development Code), Chapters 18.30 (Residential Districts) and 18.40 (Office and Commercial Districts) to increase maximum residential and mixed-use building heights; and
WHEREAS, the Planning Commission, after giving all public notices required by state law and the Concord Municipal Code, held a duly noticed public hearing on December 3, 2025, on the proposed Ordinance, received the staff report, staff presentation, and comments from the public and interested parties, and, after closing the public hearing, discussed the matter; and WHEREAS, on December 3, 2025, the Planning Commission, after consideration of all pertinent plans, documents, and testimony (hereafter referred to as “Planning Commission Information”), adopted Resolution No. 25-18 PC recommending City Council approval of this Ordinance; and
WHEREAS, the City Council, after giving all public notices required by state law and the Municipal Code, held a duly noticed public hearing on January 13, 2026, to consider this Ordinance; and
WHEREAS, at such public hearing, the City Council considered all oral and written information, testimony, and comments and at the public hearing, the oral report from City staff, the written report from City staff dated January 13, 2026, attached materials, exhibits presented, the Planning Commission Information, and all other information that constitutes the record of proceedings relating to the proposed Ordinance, which are maintained at the offices of the City of Concord City Clerk (collectively, “City Council Information”), and declared its intent to approve and

Ord. No. 26-1
adopt the Ordinance.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in the recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

Section 2. The City Council has reviewed, considered, and evaluated all of the Planning Commission Information, City Council Information, all other pertinent plans, documents, and testimony prior to acting upon the Ordinance.

Section 3. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in and may be obtained from the City of Concord Clerk’s Office, 1950 Parkside Drive, Concord, CA 94519.

Section 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT
Pursuant to the California Environmental Quality Act (CEQA) of 1970, Public Resources Code Section 21000, et. seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively “CEQA”), the proposed Development Code height amendments do not constitute a “project” within the meaning of Public Resources Code Section 21065, 14 Cal Code Regs. Section 15060(c)(2) or 15378 because it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Even if the proposed Development Code height amendments did constitute a project under CEQA, the amendment falls within the “common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding projects where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment….” and is statutorily exempt pursuant to California Public Resources Code Section 21080.085, enacted by Senate Bill 131 (2025). Therefore, the Development Code height amendments do not warrant further environmental review. This determination reflects the City’s independent judgement and analysis.

Ord. No. 26-1
Section 5. Development Code Amendment Findings
1) The proposed amendment is consistent with the general plan.

All of the proposed amendments are necessary to implement Objective 2.6 of the 2023- 2031 Housing Element of the City’s General Plan and are not inconsistent with any other provisions of the General Plan. The amendment only increases heights by seven feet in the CO, CMX, and RH zoning districts for residential and mixed-use projects; it does not change the underlying uses or any other development standard. The proposed height increases are compatible with the residential development allowed in, or adjacent to, each zoning district. Additionally, increasing heights will help reduce or remove constraints to housing production in compliance with Policy 1.8 of the Housing Element. 2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city.

As noted in Finding 1, the proposed amendment only increases heights for residential and mixed-use projects by seven feet in the CO, CMX, and RH zoning districts, which will not substantially increase impacts beyond that of development allowed under the current height limits. Therefore, there will be no negative impact on the public health, convenience, or the welfare of the City. To the contrary, the proposed height increases will facilitate new housing development that is of a higher quality than might occur under the existing standards, which will benefit the public interest, convenience, and welfare. 3) Zoning map amendments shall also find that the affected site is physically suitable, including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities, for the requested zoning designation and proposed or anticipated uses and/or development.

Not applicable; no zoning map amendments are proposed.

Section 6. The City Council does hereby pass and adopt this Ordinance No. 26-1.

Section 7. Concord Municipal Code, Title 18 (Development Code), Chapter 18.30 (Residential Districts), specifically Table 18.30.040, is hereby amended, as set forth in Exhibit A and attached

Ord. No. 26-1
hereto and made a part hereof.

Section 8. Concord Municipal Code, Title 18 (Development Code), Chapter 18.40 (Office and Commercial Districts), specifically Table 18.40.030, is hereby amended, as set forth in Exhibit B and attached hereto and made a part hereof.

Section 9. This Ordinance No. 26-1 shall become effective thirty (30) days following its passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Councilmembers. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord.

Laura M. Nakamura
Mayor
ATTEST:

Joelle Fockler, MMC
City Clerk
(Seal)

6 Ord. No. 26-1
Ordinance No. 26-1 was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on January 13, 2026, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council of the City of Concord on February 10, 2026, by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly introduced, passed, and adopted by the City Council of the City of Concord, California.

Joelle Fockler, MMC
City Clerk
Attachments:

Exhibit A – CMC Chapter 18.30 (Residential Districts)
Exhibit B – CMC Chapter 18.40 (Office and Commercial Districts)

Chapter 18.30
Table 18.030.40
RL, RM and RH Districts
Development Standards(1)
Standards RL RM (4) RH (4) Additional Standards
Density (du/net acre)
minimum/maximum 2.5 – 10 11 – 32 33 – 100
Lot Area (square feet) minimum
Residential 1,920 1,440 5,000
Nonresidential 5,000 5,000 5,000
Lot Width (feet) minimum
Residential 24 18 attached
24 detached 50
Nonresidential 50 50 50
Lot depth (feet) minimum
Residential 80 60 attached
80 detached 100
Nonresidential 100 100 100
Lot Coverage (precent) maximum
Residential 50 80 attached
60 detached 75
Nonresidential 50 60 75
Building Height (feet) maximum
ResidentialSingle-Family 30 40 6 70 Additional height may be approved with a use permit.

Nonresidential
Building height shall be established in compliance with the requirements specified by the permit; except that if the permit does not regulate a development feature that is regulated by an abutting district, or if a permit is not required, the regulations of the abutting district shall apply to each adjacent portion of the property, as applicable.

Exhibit A

Setbacks (feet)(2) The area between the street improvements and street setback line shall be landscaped in compliance with Chapter 18.165 CDC (Landscaping).

Residential(1)
Front, minimum 5 5 0
Interior Side, minimum 5 5 5 (3)
Corner Side, minimum 10 10 10 (3)
Rear, minimum 5 6 6 (3)
Garage, Street Access 20 20 -
Garage, Alley Access,
minimum 4 4 4
Nonresidential
Setbacks shall be established in compliance with the requirements specified by the permit; except that if the permit does not regulate a development feature that is regulated by an abutting district, or if a permit is not required, the regulations of the abutting district shall apply to each adjacent portion of the property, as applicable.

Open space/unit (square
feet) minimum 200(1) 200 (1) 200
See CDC 18.150.100, Open
space and recreational facilities
for residential development, and
Chapter 18.155 CDC for small
lot subdivisions
(1) Additional requirements may apply pursuant to Chapter 18.155 CDC (Standards for Small Lot and Medium Density Development) and Division V of this title (Standards for Specific Uses). Standards for RH apply to aggregate sites only and not to individual fee simple/condominium units which may be created on a subdivided RH site. (2) Unless otherwise approved through a planned unit development (PUD). (3) Minimum for each side.
(4) Standard does not apply to small, independent parcels corresponding to individual dwellings within a larger multifamily residential, mixed-use, or townhome development.

Chapter 18.40
Table 18.040.30
Office and Commercial Districts
Development Standards(1)
Standards CO (4) CMX (4) NC(4) RC SC Additional Standards Density (du/net acre)
minimum/maximum 11 – 24 11 – 40 24
max** NA NA **Residential uses not allowed on
ground floor
Floor Area Ratio (FAR)
(maximum) 1.0 1.0 0.35 0.5 0.8
Lot Area (square feet)
minimum 10,000 10,000 10,000 80,000* 10,000 *Smaller lots may be approved with a use permit
Lot Width (feet)
minimum 100 100 100 100 100
Reduced dimensions may be
allowed subject to use permit
approval
Lot Depth (feet)
minimum 100 100 100 200 100
Building Height (feet) maximum(3)
Building Height (feet)
maximum(3)Residential
and Mixed-Use(5)
370 370 40 50NA 35NA
Additional height may be allowed
with a use permit.

Nonresidential 30 30 40 50 35
Setbacks (feet) minimum(1) (2)
Front 10 5 5 15 15
Corner Side 10 10 10 10 10
Interior Side, Rear 5
None required unless adjacent to an R district or residential use in CMX. See CDC 18.150.180 (Transitional requirements) for buildings up to 30 feet in height.

Open space/unit (square
feet) minimum
See CDC 18.150.100, Open space and recreational facilities for residential developments, and Chapter 18.155 CDC, Standards for Small Lot and Exhibit B

Medium Density Development
(1) Additional requirements may apply pursuant to Chapter 18.155 CDC (Standards for Small Lot and Medium Density Development) and Division V of this title (Standards for Specific Uses). Lot area, width, depth and setback limits listed here may not apply if a site in CO, CMX, or NC is subdivided into multifamily fee simple/condominium units or small residential lots. (2) Measured from property line to the face of building or to a structure. (3) Consistent with transitional requirements (See CDC 18.150.180). (4) Standard does not apply to small, independent parcels corresponding to individual dwellings within a larger multifamily residential, mixed-use, or townhome development.
(5) Mixed-use projects shall meet the definition of a “housing development project” in California Government Code Section 65589.5(h) to qualify for the Residential and Mixed-Use height standard; all other mixed-use projects shall be subject to the Nnonresidential height standard.

Staff Report
Date: February 10, 2026
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Joelle Fockler, MMC, City Clerk
Prepared by: Monique Robinson, Deputy City Clerk
[email protected]
(925) 671-3295
Subject: Considering recommending the appointment of Michael Maestas to serve on the Contra Costa County Iron Horse
Corridor (IHC) Management Program Advisory Committee
representing the City of Concord for a four-year term ending January 31, 2030.

Report in Brief
Considering recommending the appointment of Michael Maestas to serve on the Contra Costa County Iron Horse Corridor (IHC) Management Program Advisory Committee representing the City of Concord for a four-year term ending January 31, 2030.

Recommended Action
Consider recommending the appointment of Michael Maestas to serve on the Contra Costa County Iron Horse Corridor (IHC) Management Program Advisory Committee representing the City of Concord for a four-year term ending January 31, 2030.

Background
The Iron Horse Corridor Management Program Advisory Committee includes seats for one representative from each jurisdiction or unincorporated community along the corridor (Alamo, City of Concord, City of San Ramon, Town of Danville, City of Walnut Creek, and City of Pleasant Hill); a District II seat; a District IV seat, and a seat for East Bay Regional Park District. The Committee was authorized by the Board of Supervisors on July 22, 1997, to assist Contra Costa County in developing a management program for the former Southern Pacific Railroad right-of-way known as the Iron Horse Corridor.

4.c

City Council Agenda Report
Agenda Item No. 4.c
February 10, 2026
The Corridor extends approximately 18 miles from near Mayette Avenue in Concord to the Alameda County line.

In 2000, the Board of Supervisors expanded the Advisory Committee’s role to continue to work on implementing and monitoring the Landscape Element of the Management Program and to assist in completion of the Joint Use Criteria and Standards, Public Information and Finance Elements of the Management Program.

The City of Concord does not have a current representative on the Committee. Dan Mackay served since 2017, and when his term ended on January 31, 2025, he chose not to reapply. A recruitment was announced on January 14, 2025, that resulted in no applications received. Another recruitment held in October 2025 resulted in applications received from Dore Stubblefield and Michael Maestas. Interviews were held with Mayor Nakamura, and the Mayor is recommending that Michael Maestas serve as Concord’s representative to the Iron Horse Corridor Management Program Advisory Committee.

Public Contact
The City Council Agenda was posted.

Staff Report
Date: February 10, 2026
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Margaret L. O'Brien, Director of Finance
Prepared by: Suzanne McDonald, Controller
[email protected]
(925) 671-3136
Subject: Considering acceptance of the Annual Comprehensive Financial Report with the Independent Auditors' Report and Required Communications Letter for the fiscal year ending June 30, 2025.

Report in Brief
The Annual Comprehensive Financial Report (ACFR) with the independent auditors’ report for the year ending June 30, 2025, and the Required Communications Letter has been completed. The auditors expressed an opinion that the City of Concord’s (City) financial statements for Fiscal Year 2024-25 are fairly stated in conformity with accounting principles generally accepted in the United States. This is the most favorable conclusion and is commonly known as an "unqualified" or "clean" opinion.

Recommended Action
Accept the Annual Comprehensive Financial Report with Independent Auditors' Report for the fiscal year ending June 30, 2025, along with the Required Communications Letter for fiscal year ending June 30, 2025.

Background
The financial statements of the City are subject to an annual independent audit, performed by Maze & Associates Accountancy Corporation. The audit is a comprehensive review of the financial records of the City and the internal control procedures in place which safeguard the City's assets. The audit also looks at the City's compliance with generally accepted accounting principles (GAAP), with the various

4.d4.d4.d

City Council Agenda Report
Agenda Item No. 4.d
February 10, 2026
requirements of the Governmental Accounting Standards Board (GASB) and with standards developed by the Government Financial Officers Association (GFOA). The Independent Auditor's Report is included in the ACFR (Attachment 1). The auditor is required to communicate areas of deficiency in the City’s internal control over financial reporting. The Required Communications Letter (Attachment 2) is the report in which this communication occurs and is also provided in a standardized format.

Analysis
The Independent Auditor's Report indicates that the financial statements present fairly both the financial position of the City as of June 30, 2025, and the financial activity for the year then ended. This opinion is considered "clean" or "unqualified," which means that the financial records reflect appropriately the financial activity of Fiscal Year 2024-

25. The ACFR includes a wealth of financial information about the City, along with the City’s Mission Statement, Vision, Organizational Values, Corporate Goals, organizational structure and statistical information pertaining to the City. Each year the ACFR is submitted to the GFOA to be considered for its Excellence in Financial Reporting award program. A copy of the award for fiscal year 2023-24 is included in this ACFR, and it is anticipated that the City will be successful in attaining the award in fiscal year 2024-25.

The ACFR is presented in four sections:
• The Introductory section includes the letter of transmittal, City Council introduction, the City’s organizational chart, and GFOA certificate of achievement.
• The Financial section includes the report of the independent auditors; Management’s Discussion and Analysis (MD&A); the basic financial statements, including the government-wide financial statements; and the accompanying notes to the financial statements. The Financial Section also includes the fund financial statements including the governmental funds financial statement, the proprietary funds financial statement and the fiduciary funds financial statements. Required supplementary information other than the MD&A is also included in the Financial Section. • The Supplementary Information section includes the combining individual funds financial statement for the non-major governmental funds and the internal service funds.
• The Statistical section includes selected financial and demographic information, presented on a multi-year basis.

City Council Agenda Report
Agenda Item No. 4.d
February 10, 2026
To consolidate the City’s financial disclosures into a single document, the ACFR includes a final section with supplemental information required to comply with continuing disclosure obligations for outstanding bond covenants. While not technically required as part of the ACFR, inclusion of this information enhances transparency and provides the public with a more complete financial reporting package.

The General Fund is the primary unrestricted operating fund for the City. As detailed in Note 8 to the Financial statements on page 74 of the ACFR, at the end of Fiscal Year 2024-25, the fund balance increased $3.0 million to $73.2 million from the previous year. The fund balance change was primarily due to interest earnings from cash balances and rental income exceeding expectations ($2.5 million) and revenue from charges for services coming in stronger than expected ($0.5 million).

The Governmental Accounting Standards Board (GASB) regularly issues new accounting standards that affect how the City reports its financial information. In fiscal year 2024-25, the City implemented GASB Statement No. 101, which updated how compensated absences are measured and reported. Compensated absences represent earned but unused employee paid time off. Under the new standard, the City updated its calculation of this liability, resulting in an increase of approximately $7 million of liability on the financial statements. This reflects a reporting change rather than new costs/liabilities and will be considered as part of future unfunded liability discussions as part of the FYs 2027-28 and 2028-29 Biennial Budget development process.

The Required Communications Letter (Attachment 2) includes: discussion of accounting policies; disagreements with management or difficulties encountered during the audit; and other audit findings or issues. For the current year under audit, the auditors did not note any disagreements with management or difficulties encountered during the audit.

Financial Impact
There is no fiscal impact.

Public Contact
The City Council Agenda was posted.

Attachments

1. Annual Comprehensive Financial Report with Independent Auditors’ Report for fiscal year ending June 30, 2025

2. Required Communications Letter for fiscal year ending June 30, 2025

Annual Comprehensive
Financial Report
Fiscal Year Ending June 30, 2025
City of Concord California
Attachment 1

CITY OF CONCORD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2025
Prepared by
The Finance Department
Margaret L. O’Brien
Director of Finance

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CITY OF CONCORD JUNE 30, 2025
Page
Table of Contents ........................................................................................................................................... i Mission Vision & Values Statement ............................................................................................................. v Corporate Goals .......................................................................................................................................... vii Organizational Values .................................................................................................................................. ix INTRODUCTORY SECTION:

Letter of Transmittal .................................................................................................................................. xiii Principal Officers ...................................................................................................................................... xxii Organization Chart ................................................................................................................................... xxiii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................. xxiv FINANCIAL SECTION:

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

Government-wide Financial Statements:

Statement of Net Position ..................................................................................................................... 25 Statement of Activities ......................................................................................................................... 26 Fund Financial Statements:

Major Governmental Funds:

Balance Sheet – Governmental Funds ........................................................................................... 30 Reconciliation of the Governmental Funds – Balance Sheet to the Statement of
Net Position ........................................................................................................ 31 Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 32 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds to the Statement of Activities .................................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Fund ........................................................................................................................... 34 Concord Housing Special Revenue Fund ................................................................................ 35 ARPA Special Revenue Fund ................................................................................................. 36 Proprietary Funds:

Statement of Net Position – Proprietary Funds .............................................................................. 38 Statement of Revenues, Expenses and Changes in Fund Net Position .......................................... 39 Statement of Cash Flows – Proprietary Funds ............................................................................... 40 Fiduciary Funds:

Statements of Fiduciary Net Position ............................................................................................ 42 Statement of Changes in
Fiduciary Net Position ........................................................................... 43 i

CITY OF CONCORD JUNE 30, 2025
Page
FINANCIAL SECTION (CONTINUED):

Notes to the Basic Financial Statements:

Note 1 – Summary of Significant Accounting Policies ................................................................. 46 Note 2 – Budgets and Budgetary Accounting ................................................................................ 55 Note 3 – Cash and Investments ...................................................................................................... 55 Note 4 – Interfund Transactions .................................................................................................... 64 Note 5 – Loans and Notes Receivables .......................................................................................... 66 Note 6 – Capital Assets ....................................................................................................... ........... 69
Note 7 – Long-Term Debt .............................................................................................................. 71 Note 8 – Fund Balances ................................................................................................................. 74 Note 9 – Stewardship, Compliance and Accountability ................................................................ 75 Note 10 – City of Concord Retirement System Plan ..................................................................... 75 Note 11 – City of Concord Early Retirement Plans ....................................................................... 79 Note 12 – Pension Plan .................................................................................................................. 80 Note 13 – Other Post-Employment Health Care Benefits ............................................................. 88 Note 14 – Deferred Compensation Plans ....................................................................................... 91 Note 15 – Leases ............................................................................................................................ 92 Note 16 – Subscription-Based Information Technology Arrangements (SBITAs) ....................... 95 Note 17 – Risk Management and Insurance .................................................................................. 98 Note 18 – Commitments and Contingencies .................................................................................. 99 Note 19 – Redevelopment Successor Agency Activities ............................................................. 100 Note 20 – Net Position Adjustments ............................................................................................ 103 REQUIRED SUPPLEMENTARY INFORMATION:

Schedule of Changes in the Net Pension Liability and Related Ratios - Last Ten Years:

Miscellane ous Plan ...................................................................................................................... 106 Safety Plan ................................................................................................................................... 108 City of Concord Retirement System ........................................................................................... 110 Other Post Employment Benefit Plan .......................................................................................... 112 Schedule of Contributions – Last Ten Years:

Miscellane ous Plan ...................................................................................................................... 113 Safety Plan ................................................................................................................................... 114 City of Concord Retirement System ........................................................................................... 115 Other Post Employment Benefit Plan .......................................................................................... 116 SUPPLEMENTARY INFORMATION:

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES GENERAL FUND:

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ................................... 119 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................................120 NON MAJOR GOVERNMENTAL FUNDS:

Combining Balance Sheet ..........................................................................................................................128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 132 ii

CITY OF CONCORD JUNE 30, 2025
Page
SUPPLEMENTARY INFORMATION (CONTINUED):

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................................136 INTERNAL SERVICE FUNDS:

Combining Statement of Net Position ...................................................................................................... 146 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................................. 148 Combining Statements of Cash Flows ....................................................................................................... 150 STATISTICAL SECTION:

STATISTICAL TABLES AND OTHER SCHEDULES (UNAUDITED)
Table 1 – Net Position by Component ...................................................................................................... 157 Table 2 – Changes in Net Position ............................................................................................................ 158 Table 3 – Fund Balances of Governmental Funds .................................................................................... 160 Table 4 – Change in Fund Balances of Governmental Funds ................................................................... 162

Table 5 – Assessed and Estimated Actual Value of Taxable Property ..................................................... 164 Table 6 – Property Tax Rates, Direct and Overlapping Governments ...................................................... 165 Table 7 – Principal Property Taxpayers .................................................................................................... 166 Table 8 – Property Tax Levies and Collections ........................................................................................ 167 Table 9 – Taxable Sales by Category ........................................................................................................ 168 Table 10 – Sales Tax Rates ....................................................................................................................... 169 Table 11 – Top 25 Sales Tax Producers ................................................................................................... 170 Table 12 – Ratios of Outstanding Debt by Type ...................................................................................... 171 Table 13 – Direct and Overlapping Debt .................................................................................................. 172 Table 14 – Computation of Legal Bonded Debt Margin .......................................................................... 173 Table 15 – Sewer Revenue Bonds Coverage ............................................................................................ 174 Table 16 – Bonded Debt Pledged Revenue Coverage, 2004 (Refunded), and Tax Allocation Refunding Bonds Series 2014 ................................................................... 175 Table 17 – Demographic and Economic Statistics ................................................................................... 176 Table 18 – Principal Employers ................................................................................................................ 177 Table 19 – Full-Time Equivalent (FTE) City Government Employees By Function ............................... 178 Table 20 – Operating Indicators by Function/Program ............................................................................. 179 Table 21 – Capital Asset Statistics by Function/Program ......................................................................... 180 iii

CITY OF CONCORD JUNE 30, 2025
MUNICIPAL DEBT CONTINUING DISCLOSURE:

Municipal Debt Continuing Disclosure – See Rule 15c2-12(b)(5) City of Concord Joint Powers Financing Authority
Wastewater Revenue Refunding Bonds Series 2012
2018 Wastewater Revenue Refunding Bonds
Table 1 – Ten Largest Users of the Wastewater System ....................................................... 183 Table 2 – Sewer Rates for Fiscal Year 2024-25 .................................................................... 184 Successor Agency of the Former Redevelopm
ent Agency of the City of Concord
(Contra Costa County, California) Tax Allocation Refunding Bonds Series 2014 Table 3 – Assessed Valuation by Category of Use ............................................................... 185 Table 4 – Historic Tax Revenues .......................................................................................... 186 Table 5 – Top 10 Taxpayers for Project Area ....................................................................... 187 Table 6 – Assessed Value Appeals for Project Area ............................................................. 188 Table 7 – Projection of Tax Revenues for Debt Service ....................................................... 189 Map .......................................................................................................................................................... 190 iv

Mission Statement for the Organization
Our mission is to join with our community to make Concord a city of the highest quality.

We do this by providing responsive, cost-effective, and innovative local government services.

Our Vision for the Future
• We will be a customer based, performance driven, results oriented organization, focused on finding the answer, solving the problem, and achieving positive outcomes.
• We will partner with the Concord community to maximize resources, deliver high quality services, and be recognized as setting the standard for excellence. • We will be trustworthy guardians of the public's resources. • We will make Concord a premier business location.
• We will collaborate to provide "seamless" services that benefit both our external and internal customers, streamlining our work processes and removing barriers wherever they arise.
• We will accept the challenge of change and be committed to continually enhancing the safety, environment, quality of life, and economic vitality of our community. • We will constantly look for new and better ways to deliver services. We will seek to be innovative, take reasonable risks, learn from our mistakes and always strive for excellence.
• We will welcome diversity in our community and our work place. • We will conduct our work in an atmosphere of trust, respect and courtesy with open doors and open communication for our customers and each other. • We will provide ethical, dynamic and effective leadership, establish clear direction and priorities, and model the mission and values in support of our common Vision. • We will be accountable for our performance and our organization's success, and be recognized for our achievements.
v

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Corporate Goals
Goal 1 Continue to make Concord a desirable place to live, work, and raise a family.

Goal 2 Be responsive to the needs of Concord
citizens, maintain a high
level of customer satisfaction, and provide quality public information and outreach.

Goal 3 Promote and improve Concord as a premier location for existing, expanding, and new businesses.

Goal 4 Ensure a balanced budget for a ten-year planning period with adequate replacement funds for buildings and equipment.

Goal 5 Preserve and enhance the livability of Concord's residential neighborhoods with opportunities for a broad range of housing options.

Goal 6 Offer an array of recreation, leisure, and cultural events and programs to meet the needs of citizens of all ages, with an emphasis on the well-being of youth.

Goal 7 Maintain a safe and efficient traffic circulation system.

Goal 8 Have Concord be among the safest cities of comparable size in California and have citizens feel safe in their homes, places of work, and throughout the City.

Goal 9 Maintain City parks, recreation facilities, streets, buildings, and other infrastructure to meet high standards of condition and appearance.

Goal 10 Guide Concord's development according to the General Plan and manage physical resources based on sound environmental
principles.
vii

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Organizational Values
Integrity and Trust - We say what we mean and mean what we say. We honor our word and keep our commitments. We are worthy of the public's and each other's trust.

Commitment to Service - We put our customers first. We respond to our internal customers and treat them with the same courtesy and respect as our external customers. We facilitate, enable, and problem-solve.

Partnerships - We place a high value on building partnerships with members of our community to assure we understand their needs and continue to deliver the services they desire in the most effective manner possible.

Innovation and Continuous Improvement - We strive for excellence in the quality and productivity of our work. We create a work environment in which we look for new solutions and experiment with innovative ways to do things - even if they don't always work the first time. We recognize the need to be dynamic in meeting the community's changing needs. Each and every employee is given the opportunity to develop and grow.

Performance Accountability - We set measurable performance goals which support the priorities of the City and our individual work groups. We are given the necessary authority, training and resources to enable us to achieve these goals. Performance reviews are conducted in a timely and effective manner. Employee advancement and other incentives are based on performance. We are proud of the professionalism, competency and dedication that exist throughout the organization.

Long Range Planning - We conduct long range strategic and financial planning to maximize service delivery and build the economic stability of the City. We practice sound fiscal management to protect the public's resources.

Team Work - We respect each other as individuals, and we take the time and effort to show it. Although certain positions have more decision-making authority, we treat all members of the organization with the same consideration for their ideas and concerns.

We really listen to, and give each other honest feedback. We recognize partnerships among work groups and employees as essential to effectively maximizing resources and delivering high quality services.

Individual Worth and Diversity - We recognize and appreciate the uniqueness of each individual. We value the contribution made and the synergy created by different experiences and perspectives. We are committed to treating each and every person within the organization and the larger community with respect and dignity. ix

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INTRODUCTORY SECTION

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December 29, 2025
Honorable Mayor, City Council and
Members of the Concord Community:

The City of Concord follows the best management practice of publishing a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants within six months of the close of the fiscal year. This report
accordance with Municipal Code, Title 2, Section 15.030. Pursuant to the requirements, we hereby issue the Annual Comprehensive Financial Report (ACFR) of the City for the fiscal year ended June 30, 2025.

The ACFR
City and its blended component units. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management of the City. To provide a reasonable basis for making those representations, management of the City has established a comprehensive internal theft, or misuse and to compile sufficient reliable information for the preparation of the y with U.S. GAAP. This first note in the Notes to
accounting policies. Because the cost of internal controls should not outweigh their mework of internal controls has been designed to
provide reasonable assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Maze & Associates Accountancy Corporation, a firm of licensed certified public accountants, reasonable assurance that the financial statements of the city and its blended component units for the fiscal year ended June 30, 2025, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an s basic financial statements as of and for the year ended June 30, 2025
section of this report.

City of Concord
Finance Department
1950 Parkside Drive MS/06
Concord, CA 94519-2578
Fax (925) 671-3353
Telephone (925) 671-3192
xiii

The analysis of the financial condition and the results of operations are in the Management's Discussion and Analysis (MD&A) immediately following the independent auditor's report. The MD&A complements this letter of transmittal and should be read in conjunction with it.

The City of Concord is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget's Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 CFR 200). Information related to this single audit, including a schedule of federal expenditures of federal awards, the independent auditor's report on internal control and compliance with applicable laws and regulations are included in the separately issued single audit report.

The Report
The ACFR is presented in Four sections:

The Introductory section includes this letter of transmittal, City Council GFOA certificate of
achievement.

The Financial section includes the report of the independent auditors; including the government-wide financial statements; and the accompanying notes to the financial statements. The Financial Section also includes the fund financial statements including the governmental funds financial statement, the proprietary funds financial statement and the fiduciary funds financial statements. Required supplementary information other than the MD&A is also included in the Financial Section.

The Supplementary Information section includes the combining individual funds financial statement for the non-major governmental funds and the internal service funds.

The Statistical section includes selected financial and demographic information, presented on a multi-year basis.
legally separate organizations for which the City is financially accountable or whose financial statements to be incomplete were it not included. These include the Concord Public Financing Authority (the Authority), the City of Concord Retirement System, and the Concord/ Pleasant Hill Health Care District.

The Concord Redevelopment Agency (RDA) was dissolved on February 1, 2012, and was replaced by the Redevelopment Successor Agency (SA). The SA is not a component unit of the City and is instead a separate legal entity overseen by the County Oversight Board and the as a private-purpose trust fund, a fiduciary fund type. Additional information about the dissolution of the RDA is included in the notes to the financial statements. xiv

City Profile
Located 29 miles east of San Francisco, Concord is the largest city in Contra Costa County with a population of 122,650. The City covers 31.13 square miles and provides a full range of services including: police protection, recreational activities, community and economic development, street improvements and maintenance services, parks maintenance, sewer, and general administrative and support services. In addition, the City oversees management of the Toyota Pavilion at Concord, Diablo Creek Golf Course, and Camp Concord in South Lake Tahoe, California.

Concord is a General Law city formed under the State legislative process and structured under provisions of the California constitution.
comprised of five elected members, who serve by district, each for four-year terms. City voters also elect a City Treasurer who serves a four-year term.

Every year, the Council selects one of its members to serve as Mayor and one to serve as Vice Mayor.

Concord uses a Council Manager structure. The City Council appoints a City Manager to run the organization and oversee day-to-day operations. That responsibility includes preparing the budget, managing service delivery, supervising staff, and carrying out capital projects. The Council also directly appoints the City Attorney, who provides all primary legal guidance to the City.

Concord delivers the full package businesses look for when choosing where to plant roots and grow. A genuinely business-minded local government pairs with affordable Class A office space, strong industrial centers, and unmatched regional access by road, rail, and Bay Area Rapid Transit (BART). Add in attainable home prices, a skilled workforce, and a thriving retail scene, and the result is a community built for business success and expansion. These strengths position Concord not just as a good option, but destinations for business.

The City Council's commitment to families and to the community fosters a high quality of life with attractive residential neighborhoods, and abundant recreational and entertainment opportunities for all ages. Concord, the city where "Families Come First," is a community of friendly neighborhoods with an exceptional park system, convenient shopping, large preserves of open space, and an exciting downtown, which features Todos Santos Plaza as the focal point.
easy freeway access, two
BART stations, multiple bus lines, and a nearby regional airport operated by Contra Costa County puts Concord within quick reach of San Francisco and cities throughout the Bay Area. xv

Economic Condition and Outlook
Th
Class A office space, 6.8 million square feet of industrial space, and four regional shopping centers, along with a variety of other commercial spaces, making Concord the largest employment center within Contra Costa County.

Concord boasts a suburban feel with urban amenities and entertainment, including community restaurants serving
styles of cuisines from all across the world.

Concord provides affordability and accessibility to the rest of the Bay Area. Concord commercial lease rates are on average 50-60% lower than other Bay Area cities, and housing market is between 40-85% lower costs than the Santa Clara County, San Francisco County, Alameda County, and San Mateo County markets.
previous year. Median home prices dipped from $817,000 in August 2023 to $808,000 in August 2024. Retail and industrial vacancies have edged up as well, reaching 5.5% and 3.8% respectively as of August 2025. Office vacancies remain elevated at 26.3%, unchanged from a year earlier. Together, these indicators point to modest cooling across key sectors of the local market.
to start
fiscal stability measures to address the revenue declines of the Great Recession, which began in 2007, and again in 2020 due to the COVID-19 pandemic. The City addressed both recessions by significantly reducing staff and cutting all non-essential spending. Those reductions allowed the City to remain fiscally solvent during both of those recessions.

A major move toward long-term fiscal stability came through two voter-approved local sales tax -cent local transactions
and use tax Measure Q became a critical, locally controlled revenue stream that helped sustain everyday operations. Measure Q expired in March 2025 and generated roughly $113 stabilization reserves over its lifespan.

On November 3, 2020, voters approved Measure V, a one-cent transactions and use tax designed to replace Measure Q. Measure V remains in effect unless repealed by voters, and collections began on April 1, 2021. This reliable revenue source allowed the City to maintain essential services while starting to confront ongoing fiscal challenges. The City Council has continued to dedicate the original half-cent portion to operating needs, while directing the additional half-cent toward infrastructure upkeep and other Council and community priorities.

The following tables summarize how Measure V revenues have been allocated through the end of FY 2024 25.
xvi

Table 1: Annual Measure V Use Tax and Other Receipts and Uses As of June 30, 2025 (Dollars in Millions)
Sales tax revenue (Measure V Transactions & Use Tax and Sales Tax) remains the largest General Fund revenue source and provides for 37 percent of general municipal services such as public safety, street maintenance, and parks and recreation programs. Sales tax revenue has incurred less than a 1 percent decline from the prior year, going from $72.5 million in FY 2023/24 to $71.8 million during FY2024/25.

Property tax revenue represents the second most significant General Fund revenue source, making up 14 percent of total General Fund revenues. Property taxes increased $400 thousand over FY2023/24 2.3% in fiscal year
2024-2025, which is slightly lower than the countywide increase of 4.2%. Initial property tax assessments for FY2025/26 show property tax increasing, but at a rate of 3.5%. mployment rate was 4.7% in June 2025 compared to 4.4% in the previous year.

This is slightly lower than 5.1% in June 2025 (vs. 4.6% in June 2024).

Significant Community Events and Accomplishments
Examples of significant accomplishments for the fiscal year ended June 30, 2025 include the following:

Affirmatively Furthering Fair Housing: As required by the State of California, the Affirmatively Furthering Fair Housing (AFFH)
and commits the City to rezoning at least 20 acres in higher resource neighborhoods to allow higher density multifamily development. These 20 acres will be distributed across various sized parcels within the study area.

In January 2025, seven sites were selected for further evaluation, and the City is conducting the required analysis on these sites. In addition, staff is working towards completing the technical aspects, including the development of proposed regulations, which will likely be considered by the Planning Commission and City Council in fall 2025. xvii

Local Hazard Mitigation Plan: Since 2007, the City of Concord has participated in the Community Rating System (CRS), which is part of the National Flood Insurance Program, regulated under the Federal Emergency Management Agency (FEMA). The program rewards communities for following specific floodplain management activities by providing flood insurance discounts. The City has completed its annual review of the Mitigation Plan (LHMP) and the Repetitive Loss Properties Report. As part of its participation in the CRS, City of Concord policyholders receive a 15% discount on flood insurance.

Major Road Construction Projects: A variety of roadway projects were completed during fiscal year 2025. These projects were made possible by the Measure V use and transaction tax revenue approved by voters in November 2020. Projects included fiber installation, pavement rehabilitation, and sewer/paving related projects. In addition, thirteen residential neighborhoods underwent pavement maintenance.

APA NorCal Award - Implementation Category, Award of Excellence: The American Planning Association (APA) awarded the City of Concord a 2025 Award of Excellence for its innovative Lot Consolidation Incentives Program and the successful launch of the Concord Housing Sites Tracker, developed to implement programs from the 2023 2031 Housing Element. The tools were recognized for their innovative approach and user-friendly interface. the
Implementation category.

Former Concord Naval Weapons Station Reuse Project: Work toward developing the former Concord Naval Weapons Station continues. During FY2024-25, City staff submitted the Economic Development Conveyance application and initial financial offer to the U.S. Navy to secure future property transfer; continued to refine elements of the Specific Planning process for the project, including infrastructure, resource permitting, remediation monitoring, and base management discussions; coordinated City oversight of the clean-up of Base property in collaboration with the U.S Navy and state/federal agencies; and assisted the East Bay Regional Park District with their efforts to plan the future use of the Thurgood Marshall Regional Park.

New Business Attraction: Economic Development staff provided technical assistance to property owners and brokers as they attract new tenants and provided direct site selection support to property businesses. During FY 2024-25, City staff provided permitting or site selection support to the following businesses: Chick-fil-A, Urban Air Adventure Park, Boichik Bagel, The French Spot, the Willows Shopping Center, Blast & Brew, and Cold Stone Creamery.

Special Events:

Market.
the support of our incredible business community. This year, we surpassed our sponsorship goal of $90,000 by raising $107,500 in combined cash and in-kind contributions.

Police Department Grants Awards: The Police Department received support from several organizations to help promote the goals of the department. The Office of Traffic Safety Select Traffic Enforcement Grant; the California Department of Justice Tabacco Grant Program; the CalOES 911 Program, the CalOES Teen CERT Program; and the Edward Byrne Memorial Justice Assistance are the notable awards received to further the public safety programs within the City.
xviii

Budgetary Control
The City
and by maintaining an encumbrance accounting system. Expenditures for City operations and other purposes identified in the annual budget cannot legally exceed the budgeted amounts approved by the City Council.

The Concord Municipal Code requires the City Manager to present the Annual Operating Budget to the City Council for approval. In June 2025, the City Council adopted a biennial budget encompassing Fiscal Years 2025-26 and 2026-27. The City Council has adopted a number of Policies & Procedures, including Budget and Fiscal Policies; Budget Preparation; and Budget Appropriation and Transfer Controls, which provide direction in the development of the Annual Operating Budget. The City Manager has also authorized several Administrative Directives, which further clarify budget policies, processes and related controls.

All governmental fund type annual operating budgets are adopted on a basis consistent with generally accepted accounting principles, except for capital outlay expenditures for Special Revenue Funds which are budgeted on a project time frame rather than on an annual basis.

The City also adopts budgets for its Capital Projects, which are based on the project life rather than a fiscal year. Therefore, capital project budgets may span several fiscal years.

Ultimate budgetary control resides at the fund level; however, the City has adopted a number of budgetary appropriation and transfer procedures to provide strong internal controls while encouraging improved accountability and administrative responsiveness. All budgetary transfers require Director of Finance review and approval. All transfers of appropriations affecting Personnel Services (wages & benefits) require Director of Human Resources and City Manager review and approval. Additionally, all transfers between funds and between departments require City Manager or City Council review and approval.

All capital project appropriation transfers require City Manager approval. Transfers in excess of $220,000 require City Council approval.
appropriations with the exception of money received for specific purposes (e.g. Developer Contributions) where the appropriation and revenue received are of equal value. Special revenue budget appropriations based on funds provided by grants, donations or contributions require City Manager and City Council approval.

The City also uses encumbrance accounting as another technique for accomplishing budgetary control. An encumbrance is a commitment of a future expenditure earmarked for a particular purpose that reduces the amount of budgetary authority available for general spending. At the end of the fiscal year, encumbered appropriations are carried forward and become part of the The City continues to meet its responsibility for sound financial management as demonstrated by the statements and schedules included in the financial section of this report. xix

Internal Controls
maintaining effective internal accounting controls. These controls help safeguard City assets from unauthorized use or loss and ensure the accuracy and reliability of financial records used controls must strike a balance offering meaningful protection without costing more to operate than the benefit they provide. Management evaluates that balance through informed estimates and professional judgment.

Budget and Fiscal Policies: Long Range Financial Forecasting Since 1995, Concord has relied on a Ten-Year Financial Forecast Program to guide long-term planning. Under this framework, the City Manager prepares balanced ten-year forecasts for all major funds every two years. In 2018, the City expanded the forecasting horizon for the -range financial
position and capturing both operating needs and capital demands. All other funds Special Revenue Funds, Capital Improvement Funds, and Proprietary Funds including post- employment benefit funds continue to operate under balanced ten-year forecasts. -year outlook is updated annually and incorporates every major revenue and expenditure category, including salaries, benefits, services, materials, and capital projects. With each budget cycle, every forecast is revisited, and underlying assumptions are reviewed and refined to reflect changing economic and operational conditions.

Reserve Policy
To help buffer financial uncertainty, the City maintains several General Fund reserves and contingencies that, together, must equal at least 17% of General Fund operating costs. The e Operating
Contingency Reserve, Benefit Reserve, Capital Maintenance Reserve, Economic Contingency Reserve, Unforecasted Reserve, and Fiscal Stability Reserve. Combined, these funds hold $48.6 million equal to roughly 36% of General Fund operating expenditures providing a strong safeguard against fiscal volatility.

Awards
The Government Finance Officers Association (GFOA) of the United States and Canada awarded its Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2024. This was the thirty-second consecutive year that the City of Concord has been recognized for excellence in financial reporting. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized ACFR, the content of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United States of America, as well as all applicable legal requirements.

The Certificate of Achievement is valid for only one year. The City believes this ACFR continues to conform to the Certificate of Achievement Program requirements and will be submitting it to GFOA for consideration of the annual award. xx

Acknowledgments
The preparation of this ACFR could not have been accomplished without the professional, efficient and dedicated services of the highly qualified staff of the Finance Department, in particular Suzanne McDonald, Jonathan Palmer, Blake Muller, Jeanne Van Note, and Wei Fong.

In addition, staff in all City departments should be recognized for responding so positively to the requests for detailed information that accompanies each annual audit. The City also recognizes the contributions and positive working relationship with Maze & Associates Accountancy Corporation.

Finally, we wish to express our deep appreciation to the Mayor, City Council and the City Manager for their unfailing support for maintaining the highest standards of professionalism in the financial management of the City of Concord.

Respectfully submitted,
Margaret L.

Director of Finance
xxi

PRINCIPAL OFFICERS
(June 30, 2025)
Executive Team
Pablo Benavente
Councilmember
Valerie Barone
City Manager
Jasmin Loi
Director of Human
Resources
Justin Ezell
Assistant City
Manager
Carlyn Obringer
Mayor
Greg Taylor
Director of Information
Technology

Susanne Brown
City Attorney
Dominic Aliano
Councilmember
Steve Voorhies
Director of
Recreation Services
Mindy Gentry
Director of Community
Development
Laura M. Hoffmeister
Councilmember
Mark Bustillos
Chief of Police
Laura Nakamura
Councilmember
Guy Bjerke
Director of Economic
Development and
Base Reuse
William Tarbox
Director of
Public Works
Patti Barsotti
City Treasurer
Margaret O’Brien
Director of Finance
Elected Officials
xxii

The People of the City of Concord
Community
Development
Affordable Housing
Programs
Building
Engineering
Multi-Family Rent al
Inspections
Planning
Transportation
Board of Appeals
Design Review Board
Planning Commission
Econo mic Development
& Base Reuse
Conveyance Strategies
Base Management
Economic Development
Programs
Financial Feasibility
Fiscal Sustainability
Public Outreach
Redevelopment
Successor Agency
Reuse Planning
Police
Field Operations
Internal Operati ons
Investigations
Professional Standards
Volunteer Emergency
Services
Administration
Finance
Budget & Financial
Planning
City Treasury
Disbursements
Financial Analysis &
Reporting
Purchasing & Materials
Management
Revenue Generation
Lease Management
Public Works
Citywide Streetlight
Assessment Dist rict &
Traffic Signals
Facility Maintenance &
Custodial Services
Fleet Management
Graffit i Removal
Landscape & Lighting
Assessment Districts
Parks Services
Sewer Enterprise
Street Maintenance ,
Signs & Markings
Street Sweeping
Traffic Operations
Information
Technology
City Boundaries
Parcel O wnership
Land Management
Geospat ial Analytics
GIS Data Layers
Street Addressing
Help Desktop Support
Web Sit es
Client-side Security
Technology Training
Enterprise
Applications & Data
Bases
Application & Data Base
Security
Project Management
Office (PMO)
Network Services
Telephone Services
Voice Mail Services
Radio/Wireless
Communications
Network Security
Office of the
City Manager
City Clerk /
Administrative
Services
City Council Support
Community Relations
Document Imaging /
Records Management
Measure V Oversight
Committee
Parks &
Recreation
Aquatics
Camp Concord
Facility Operations &
Programs
Golf Course Enterprise
Agreements
Pavilion Management &
Operat ions Agreement
Senior & Special
Recreation Services
Adult Sports & Events
Youth & Teen Programs
Commission on Aging
Concord Pavilion
Community Outreach
Committee
Parks, Recreation &
Open Space
Commission
City Council
Mayor and Four Council Members
Appointive Advisory Boards ,
Committees or Commissions
City Treasurer
Deposits
Investments
City Attorney
City Manager
Claims Processing
Legal Council to City Council, Commissions, Committees, City Management, City Departments and City Staff
Litigation and Liability Defens e
Municipal Code Violation Prosecution
Ordinances, Resolutions, Contracts
The City of Concord has a City Council/City Manger form of government. Five Council Members and the City Treasurer are elected. The Council appoints the City Manager and the City Attorney. The City Manager appoints the City Clerk and department heads and hires employees to carry out program services. The City Council appoints qualified citizens from the community to serve on advisory boards and commissions.

Assistant City Manager
Human
Resources
Employee Services
Benefits Administration
Classificat ion &
Compensation
Employee Relations
Labor Relations
Organizational Training
& Development
Recruitment & Selection
Safety & Workers
Compensation
xxiii

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

FINANCIAL SECTION

This Page Left Intentionally Blank

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

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, th e 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 and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ende d in accordance with accounting principles generally accepted in the United States of America.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement da te, including any currently known information that may raise substantial doubt shortly thereafter. 1

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

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstate ment 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 expres sing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by ma nagement, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Change in Accounting Principle
Management adopted the provisions of Government al Accounting Standards Board Statement No. 101, Compensated Absences, which became effective during the year ended June 30, 2025 and required the restatement of net position as discussed in Note 20 to the financial statements.

The change in accounting principle does not constitute a modification to our opinions. 2

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial stat ements, is required by th e 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 hi storical context. We have applied certain limited procedures to the required supplementary informa tion in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for th e purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedur es in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an un corrected material misstatement of the other information exists, we are required to describe it in our report.
3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2025, on our consideration of the City’s internal cont rol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
December 29, 2025
4

CITY OF CONCORD JUNE 30, 2025
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Concord issues its financial statement s in the format prescribed by generally accepted accounting principles. The Managem ent’s Discussion and Analysis provides an overview of the City’s financial activities for the fiscal year , which should be read in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.

FISCAL 2025 FINANCIAL HIGHLIGHTS
Financial highlights of the year include the following:

Government-Wide
• At June 30, 2025, the City’s total net posit ion increased by $18 million, rising from the adjusted net position of $666 million to $685 mill ion. Governmental activities accounted for $563 million of this balance, while business-type activities represented $122 million. • Total government-wide governmental revenues re mained stable at $197 million, consistent with the prior year. This total included $52 mi llion in program revenue s and $145 million in general revenues, reflecting continued revenue stability despite ongoing cost pressures. • Government-wide governmental activities expenses totaled $190 million, an increase of $4 million compared to the prior year, primarily dr iven by higher operating and service delivery costs.
• Business-type activities continued to generate pos itive operating results, with revenues of $54 million exceeding expenses of $42 million, contributing to the overall improvement in the City’s financial position.

Fund Level
• Total governmental fund balances declined by $35 million during fiscal year 2025, ending the year at $205 million. This decrease primarily reflects the use of accumulated fund balance to support operations and capital-related expenditures during the year. • Governmental fund revenues increased modest ly by $1 million to $194 million, indicating overall revenue stability. In contrast, governmental fund expenditures rose more significantly, increasing by $24 million to $229 million, contributing to the net reduction in fund balances. • Within the General Fund, revenues totaled $154 million in fiscal year 2025, an increase of $2 million from the prior year. General Fund ex penditures increased by $15 million to $136 million, reflecting higher operating costs and service demands. • Despite expenditure growth, the General Fund ended the fiscal year with a fund balance of $73 million at June 30, 2025, an increase of $3 million from the prior year, demonstrating the City’s ability to maintain reserves while addressing operational and capital needs. 5

CITY OF CONCORD JUNE 30, 2025

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report is in five parts:

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

2. Management’s Discussion and Analysis (this part);

3. The Basic Financial Statements, which include a ll the financial activities of the City. There are three components: Government- Wide Financial Statements, Fund Financial Statements, and Notes to the Basic Financial Statements;

4. Required and Other Supplemental Information; and

5. Statistical information and other schedules.

THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements comprise the Government-Wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

The Government-Wide Financial Statements provide a longer-term view of the City’s activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations.

The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses for each of the City’s programs. The Statement of Activities explains in detail the change in net position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-Type Activities, as explained below. All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-Type Activities in order to provide a summary of these two activities of the City as a whole.

The Fund Financial Statements report the City’s operations in more detail than the Government- Wide Statements and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts.

Major Funds account for the major financial activities of the City and are presented individually, while the activities of Non-Major Funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major Funds are explained below.

The fiduciary statements provide financial information about the activities of the Concord Retirement System Pension Trust Fund, the Tourism Im provement District Custodial Fund and the Redevelopment Successor Agency Private Purpose Tr ust Fund, for which the City acts solely as agent.

The Government-Wide Financial Statements
The Statement of Net Position and the Statemen t of Activities present information about the following:
• Governmental Activities - All of the City’s basic services are considered Governmental Activities, including General Government; Public Safety; Public Works; Economic Development and Base Reuse; Community Development; and Recreation Services. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer fees.
6

CITY OF CONCORD JUNE 30, 2025
The City’s Governmental Activities include the activities of two separate legal entities: the Concord Pleasant Hill Health Care District a nd the City of Concord Joint Powers Financing Authority. The City is financially accountable for these entities. • Business-Type Activities - The City’s two enterprise activities, the sewer and the golf course, are reported here. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Government-Wide Financial Statements are prepar ed on the accrual basis, which means they measure the flow of all economic resources of the City as a whole.

Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called Major Funds. The concept of major funds and the determination of which funds are major funds were established by GASB 34 and r eplace the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-Major Funds summarized and presented in a single column. Subo rdinate schedules present the detail of these Non-Major Funds. Major Funds present the major activities of the City for the year and may change from year to year because of changes in the pattern of City’s activities.

Major funds for the City are the General Fund, Concord Housing Fund, ARPA (American Rescue Plan Act) Special Revenue Fund, General Proj
ects Fund, the 2021 COP Projects Fund, and the
Sewer Enterprise Fund.

Fund Financial Statements include Governmental, Proprietary, and Fiduciary Funds as discussed below.

Governmental Fund Financial Statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.

Proprietary Fund Financial Statements are prepared on the full accrual basis, and include all their assets, liabilities, and deferred outflows of resources, current and long-term.

Since the City’s Internal Service Funds provide goods and services only to the City’s Governmental and Business-Type Activities, their activities are r eported only in total at the Fund level. Internal Service Funds may not be Major Funds because thei r revenues are derived from other City funds.

These revenues are eliminated in the Government-Wide Financial Statements and any related profits or losses are returned to the Activities that created them, along with any residual net position of the Internal Service Funds.

Comparisons of Budget and Act ual financial information are presented for the General Fund, Concord Housing Fund, ARPA Fund, Special Revenue Funds and Debt Service Funds.

Fiduciary Fund Statements
The City’s fiduciary fund activities are reported in the separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position . Fiduciary funds include the City of Concord Retirement System Pension Trust Fund, the Successor Agency Private Purpose Trust Fund (SAPPTF) and the Tourism Improvement Custodial Fund. These activities are excluded from the City’s other financial statements because the Ci ty cannot use these assets to finance its own operations.
7

CITY OF CONCORD JUNE 30, 2025

FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
The analyses presented below focus on the net position (Table 1) and changes in net position (Table 2) of the City as a whole. The information summarizes the Citywide Statement of Net Position and Statement of Activities stated more fully in the Financial Section of this report.

Table 1: Citywide Net Position
As of June 30, 2025 and 2024 (Dollars in Millions)
8

CITY OF CONCORD JUNE 30, 2025
Table 2: Citywide Changes in Net Position
For the Years Ended June 30, 2025 and 2024 (Dollars in Millions) The analyses below focus on the net position and changes in net position of the City's Governmental Activities (Table 3, 4 and 5) and Business-Type Activities (Table 6 and 7) presented in the Citywide Statement of Net position and Statement of Activities that follow. 9

CITY OF CONCORD JUNE 30, 2025

Governmental Activities
Table 3: Governmental Net Position
As of June 30, 2025 and 2024 (Dollars in Millions)
In fiscal year 2025, the City’s governmental ac tivities reported net position of $562.5 million, unchanged from the prior year. While the overall balance remained stable, several offsetting changes occurred within the City’s assets and liabilities.

Capital assets increased by $37.7 million during t he year. The City added $71.0 million in capital assets, including $50.7 million invested in street improvements, partially offset by $34.0 million of depreciation expense. As a result, net investment in capital assets increased by $10.0 million.

Other assets increased by $1.1 million, from $84.3 million to $85.4 million, primarily due to $2.2 million in prepaid costs related to system setup and pre-implementation activities for the City’s new Enterprise Resource Planning system (Workday).

Current and other liabilities increased by $9.6 mill ion, driven largely by an $8.5 million increase in accounts payable. This increase reflects construction costs incurred during fiscal year 2025 that were paid in fiscal year 2026.

Restricted net position decreased by $3.5 million from the prior year, mainly due to the use of funds restricted for capital projects. Unrestricted net pos
ition, which represents resources available for day-
to-day operations, declined by $6.5 million to a negative $83.1 million at June 30, 2025. 10

CITY OF CONCORD JUNE 30, 2025

Governmental Activities - Sources of Revenues
For the Year Ended June 30, 2025 (see Table 4)
As illustrated in the Sources of Revenues chart above, sales tax c ontinued to be the City’s largest single revenue source in fiscal year 2025, acc ounting for 36% ($71.8 million) of total governmental activities revenue. Property tax represented t he second-largest source at 14% ($27.8 million), followed by charges for services at 10% ($20.0 million).

Other taxes contributed 9% ($17.5 million), while capital grants provided 11% ($21.8 million), reflecting continued investment in the City’s capital programs. Motor vehicle in-lieu revenues accounted for 8% ($15.2 million).

The remaining 12% of governmental activities reve nue was derived primarily from operating grants and contributions and investment earnings, providing additional diversification within the City’s overall revenue structure.
11

CITY OF CONCORD JUNE 30, 2025

Governmental Activities - Functional Expenses
For the Year Ended June 30, 2025 (see Table 4)
The Functional Expenses chart above presents the City’s current-year operating expenses, which are discussed in greater detail in the sections that follow.

Public Safety remained the City’s largest functional area, accounting for $83.4 million, or 44% of total expenses. General Government represented the next largest share at $51.0 million, or 27%, followed by Public Works at $23.9 million, or 12%. The remaining 17% of expenses was distributed among Community Development, Recreation Services, Economic Development and Base Reuse, and interest expense.

The expenses reflected in this chart exclude capita l outlay, which is recorded as capital assets on the government-wide financial statements rather than expensed in the current period. During fiscal year 2025, the City capitalized $71.4 million in
infrastructure and equipment investments. Additional
information regarding changes in capital assets is provided in Note 6 to the financial statements.

The Statement of Activities presents program revenues and expenses and general revenues in detail. These are elements in the Changes in Go vernmental Net Position, which is summarized below:

Public Safety,
$83.4M, 44%Public Works,
$23.9M, 12%
Community
Development,
$16.9M, 9%
Economic
Development
and Base
Reuse, $2.6M,
1%
General
Government,
$51.0M, 27%
Recreation
Services,
$9.4M, 5% Interest on
Long Term
Debt, $3.1M,
2%
12

CITY OF CONCORD JUNE 30, 2025

Table 4: Changes in Governmental Net Position
For the Years Ended June 30, 2025 and 2024 (Dollars in Millions) The total change in net position declined by $4.9 million from the prior year. This decline was primarily attributable to higher expenses compared to the prior year, driven largely by increased personnel costs and a higher CalPERS unfunded liability payment in fiscal year 2025. Total revenues remained generally consistent between the prior and current fiscal years. 13

CITY OF CONCORD JUNE 30, 2025

Governmental Activities
Table 5 presents the net expense of each of the City’s programs, defined as total program costs net of revenues generated by those activities. Overall, the City’s net program expense increased by $5.3 million compared to the prior year.

The primary driver of this increase was higher pens ion costs. Interest on th e total pension liability exceeded employee contributions and projected investment earnings in the CalPERS pension plans, resulting in increased pension expense for both the safety and miscellaneous plans compared to the prior year.

Table 5: Governmental Activities Net Program Expense
As of June 30, 2025 and 2024 (Dollars in Millions)
14

CITY OF CONCORD JUNE 30, 2025

Business-Type Activities
The net position of the City’s business-type activities increased to $122.0 million in fiscal year 2025, an improvement of $11.9 million from $110.1 million in the prior year. Expenses remained relatively flat, while sewer revenues increased by $1.6 million as service rates were adjusted to support future capital improvement projects.

Table 6: Business-Type Activities Net Position
As of June 30, 2025 and 2024 (Dollars in Millions)
Table 7: Changes in Business-Type Activities Net Position As of June 30, 2025 and 2024 (Dollars in Millions)
The Sewer Fund generated $47.7 million in service fee revenues during fiscal year 2025, an increase of $1.6 million from the prior year. Operating expenses rose only modestly, increasing by $0.1 million to $40.0 million, reflecting effective cost control. Investment income also improved, increasing by $0.7 million during the year. Collectively, these factors resulted in a net operating gain of $10.9 million for the Sewer Fund in fiscal year 2025, $2.2 million higher than the prior year’s results. The Golf Course Fund also posted positive results, recording a $1.0 million gain during fiscal year 2025. 15

CITY OF CONCORD JUNE 30, 2025

THE CITY’S FUND FINANCIAL STATEMENTS
Governmental Funds
At June 30, 2025, the City’s governmental funds reported combined fund balances of $205.1 million, a decrease of $35.0 million from the prior year bal ance of $240.2 million. This reduction primarily reflects the planned use of restricted and committ ed fund balances to advance infrastructure and grant-funded projects.

The General Fund balance increased by $3.0 mi llion during the year, while all other major governmental funds experienced decreases. The mo st significant reduction occurred in the 2021 COPS Projects Fund, which declined by $32. 3 million as the City expended resources on infrastructure improvements. The General Projec ts Fund balance decreased by $4.0 million, the ARPA Fund balance declined by $1.0 million as the program continued to wind down, and the Concord Housing Fund balance decreased by $0.2 mi llion. Other Governmental Funds collectively declined by $0.6 million. Changes in major governm
ental funds are discussed in greater detail later
in this report.

Governmental fund revenues increased modestly by $1.0 million in fiscal year 2025, rising to $194.0 million from $193.0 million in the prior year. Notable year-over-year changes included a $2.1 million increase in General Fund revenues, driven largely by a $1.2 million increase in charges for services.

ARPA revenues declined by $11.3 million as t he program approached expiration, while General Projects Fund revenues increased by $10.3 million due to higher grant activity compared to the prior year.

Governmental fund expenditures increased by $23.8 million in fiscal year 2025, rising to $229.0 million from $205.2 million in the prior year. This increase primarily reflects higher operating costs in the General Fund and increased capital and infrastructure-related spending across project funds.

General Fund expenditures increased by $14.6 million, largely due to the phase-down of ARPA support for General Fund services, a $2.5 milli on increase in the CalPERS Unfunded Liability payment, and higher contract and personnel costs.

Expenditures in the 2021 COP Projects Fund increa sed by $9.5 million as the City advanced infrastructure projects. Similarly, General Projec ts Fund expenditures rose by $8.8 million, driven primarily by a $6.7 million increase in capital outlays.

These increases were partially offset by a $10.0 million decrease in ARPA expenditures, as the City expended the majority of Coronavirus State and Loca l Fiscal Recovery Funds in the prior year.

Expenditures in Other Governmental Funds increased modestly by $0.8 million.

Other Financing Sources (Uses) are primarily compri sed of issuances of leases and subscription liabilities and transfers among the various funds in the City. During fiscal year 2025, the General Fund transferred out $17.7 million. Additional information regarding these transfers can be found in Note 4.
16

CITY OF CONCORD JUNE 30, 2025

Proprietary Funds
Enterprise fund net position increased to $122.0 million in fiscal year 2025, an improvement of $11.9 million from $110.1 million in the prior year. Operating revenues totaled $50.4 million, an increase of $1.9 million compared to fiscal year 2024, wh ile operating expenses increased modestly by $0.3 million to $41.9 million.

The increase in enterprise fund net position was driven primarily by higher sewer service rates and increased investment income. These additional revenues support the funding of planned capital projects and ongoing system maintenance.

The Internal Service Fund’s beginning net position was adjusted from $60.0 million to $53.2 million as a result of the City’s implementation of GASB
Statement No. 101, as discussed further in Note 20
to the financial statements. After this adjustment, Internal Service Fund net position increased to $57.3 million at June 30, 2025, reflecting a $4.1 million increase during the fiscal year. This improvement was largely attributable to a $3.1 mill ion increase in net position within the Workers’ Compensation Fund.

ANALYSES OF MAJOR GOVERNMENTAL FUNDS
General Fund
General Fund revenues totaled $153.8 million in fiscal year 2025, an increase of $2.1 million, or 1%, compared to the prior year. This growth was driven primarily by a $1.2 million increase in charges for services, reflecting rate adjustments and expan ded activity across several programs, including Current Development, Recreation, and Police services. Charges for services also increased due to the inaugural year of rent registry fee assessments.

Sales tax revenues declined by $0.7 million during the year, partially offset by a $0.3 million increase in property tax revenues and modest increases in other taxes, motor vehicle in-lieu revenues, and miscellaneous revenues.

General Fund operating expenditures increased $14.6 mi llion primarily due to reduced support by ARPA for general services, the CalPERS UAL pay ment included discretionary payments of $2.6 million, and additional increases to in contract and personnel costs. 17

CITY OF CONCORD JUNE 30, 2025

Table 8: Changes in General Fund
As of June 30, 2025 and 2024 (Dollars in Millions)
At June 30, 2025, the General Fund balance totaled $73.1 million, an increase of $3.0 million from $70.1 million in the prior year. This improvement was driven primarily by interest revenues exceeding budgeted expectations during the fiscal year.

During fiscal year 2025, the General Fund recorded transfers out totaling $17.7 million. These transfers primarily supported construction projects funded by Measure V proceeds and debt service payments associated with the 2021 Certificates of Participation. Additional information regarding interfund transfers is provided in Note 4 to the financial statements.

The General Fund’s ending fund balance at June 30, 2025 consisted of $12.5 million classified as nonspendable, related to advances to other funds; $1.7 million restricted for public safety purposes under the State’s Citizens’ Option for Public Safety (COPS) program; and $44.4 million classified as unassigned. Further details regarding fund balance clas sifications are presented in Note 8 to the financial statements.
18

CITY OF CONCORD JUNE 30, 2025

Concord Housing Fund
The Concord Housing Fund accounts for the activities related to the assets assumed by the City of Concord as the Housing Successor to the housing activities of the former Redevelopment Agency.

The total fund balance as of June 30, 2025, was $4.2 million, a decrease of $0.2 million over prior year. No loans were issued in fiscal year 2025.

General Projects Fund
The General Projects Fund accounts for capita l project costs funded by the General Fund and projects that are reimbursable from external sources. During fiscal year 2025, fund revenues totaled $15.0 million, an increase of $10.3 million from fisc al year 2024, reflecting a significant increase in grant-related activity and associated reimbursements.

Fund expenditures increased to $18. 9 million in fiscal year 2025, compared to $10.0 million in the prior year, driven by higher capital spending associated with grant-funded projects. As a result of the timing difference between project expenditure s and grant reimbursements, the fund balance decreased by $4.0 million, ending the year at a deficit of $3.7 million. This negative balance is expected to be offset as remaining grant reimbursements are received.

ARPA Fund
This fund accounts for Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan Act of 2024. Revenue of $670 thousand recognized the remaining ARPA grant funding and expenditures of $1.7 million were incurred primarily for City projects aimed to enhance public safety. The fund was closed as of fiscal year end as the one-time grant funding was fully exhausted.
2021 COP Projects Fund
The 2021 Certificates of Participation (COP) Fund accounts for proceeds from the issuance of the 2021 Capital Improvement Project Certificates of Pa rticipation, which were used to finance various capital projects and to prepay the 2015 Lease Revenue Financing Agreement. During fiscal year 2025, fund expenditures totaled $33.6 million, an increase of $9.5 million from the prior year, reflecting the City’s continued prioritization of infrastructure investments.

Additional information regarding this debt issuance is provided in Note 7 to the financial statements.

Other Governmental Funds
These funds are not presented separately in the Basic Financial Statements but are individually presented as non-major governmental funds in the Supplementary Information section.

ANALYSES OF MAJOR ENTERPRISE FUND
Sewer Fund
At June 30, 2025, the Sewer Fund reported net position of $116.2 million, an increase of $10.9 million from the prior year. Of this total, $60.7 million was invested in capital assets, while $55.5 million was reported as unrestricted net position.
19

CITY OF CONCORD JUNE 30, 2025

The increase in net position was driven primarily by higher sewer service rates and increased interest earnings during the fiscal year. These additional resources strengthen the fund’s capacity to support planned capital projects and ongoing system investments.

CAPITAL ASSETS
In accordance with generally accepted accounting principles, the City reports all capital assets, including infrastructure, in its financial statements. Infrastructure assets include roads, bridges, traffic signals, storm drains, and other similar assets.

As required under these standards, the City recorded t he historical cost of its infrastructure assets and calculated accumulated depreciation based on original acquisition dates, beginning in fiscal year 2002. As of the end of fiscal year 2025, the total co st of the City’s infrastructure and other capital assets reported in the financial statements is presented in Table 9 below:

Table 9: Capital Assets
For the Years Ended June 30, 2025 and 2024 (Dollars in Millions) The most significant additions to governmental capital assets in fiscal year 2025 occurred within the streets asset category, totaling $50.7 million. These additions primarily reflect pavement rehabilitation and the improvement of numerous streets throughout the City. 20

CITY OF CONCORD JUNE 30, 2025

Business-type activities also experienced notable capital investment, with $12.5 million recorded as construction in progress related to sewer projects underway as of June 30, 2025.

In accordance with generally accepted accounting principles, the City depreciates its capital assets over their estimated useful lives, allocating the cost of these assets over the periods in which they provide service. Additional information regarding capital assets, including current-year additions, construction in progress, and depreciation, is presented in Note 6 to the financial statements.

DEBT ADMINISTRATION
The City made all scheduled debt service payments. Ea ch of the City’s debt issues is discussed in detail in Note 7 to the Financial Statements. As of June 30, 2025, the City’s debt was comprised of the following issues:

Table 10: Outstanding Debt
As of June 30, 2025 and 2024 (Dollars in Millions)
Total governmental activities debt decreased by $6. 2 million during fiscal year 2025 as a result of scheduled principal payments. Business-type activi ties debt declined by $1.2 million compared to the prior year, reflecting the continued amortization of outstanding debt.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The economy of the City and its major initiatives for fiscal year 2024/2025 are discussed in detail in the accompanying Transmittal Letter.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is int ended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Finance Department, at 1950 Parkside Drive, Concord, CA 94519-2578. 21

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CITY OF CONCORD JUNE 30, 2025

BASIC FINANCIAL STATEMENTS

CITY OF CONCORD JUNE 30, 2025

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City's financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City's transactions is taken in to account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the difference betw een the City's total assets and deferred outflows of resources and the City's total liabilities and deferred inflows of resources, including all the City's capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all the City's Governmental Activities in a single column, and the financial position of all the City's Business-Type Activities in a single column; these columns are foll owed by a Total column that presents the financial position of the entire City.

The City's Governmental Activities include the activitie s of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Si nce the City's Internal Service Funds service these Funds, their activities are consolidated with Govern mental Activities, after eliminating inter-fund transactions and balances. The City's Business-Type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City's Net Position. It is also prepared on the full accrual basis, which means it includes all th e City's revenues and all its expenses, regardless of when cash changes hands. This di ffers from the “modified accrual” ba sis used in the Fund financial statements, which reflect only current assets, curre nt liabilities, available revenues and measurable expenditures.

The Statement of Activities presents
the City's expenses, first, listed by program, and follows these with the expenses of its Business-Type Activities. Prog ram revenues—that is, reve nues which are generated directly by these programs—are then deducted from prog ram expenses to arrive at the net expense of each governmental and business-type program. The City's general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, Concord/Pleasant Hill Health Care District and the City of Concord Joint Powers Financing Aut hority, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for the component units' activities.
24

CITY OF CONCORD

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-T ype
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 230,602,916$ 90,758,017$ 321,360,933$ Cash with Fiscal Agents (Note 3) 50,100,021 1,866 50,101,887 Receivables (Net of Allowances for Uncollectibles):

Accounts 8,555,246 289,072 8,844,318 Due from Other Governments 21,029,388 - 21,029,388 Interest 8,340,535 793,340 9,133,875 Loans and Notes (Note 5) 35,777,808 - 35,777,808 Prepaid items 2,241,668 - 2,241,668
Leases Receivable (Note 15) 8,670,853 367,024 9,037,877 Internal Balances (Note 4) 773,648 (773,648) - Capital Assets (Note 6):

Nondepreciable Capital Assets 47,093,449 33,288,665 80,382,114 Depreciable Capital Assets, Net of Accumulated Depreciation 561,774,416 36,471,894 598,246,310 Total Assets 974,959,948 161,196,230 1,136,156,178

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pension - CalPERS (Note 12) 45,546,932 - 45,546,932 Deferred Outflows Related to OPEB - (Note 13) 6,539,460 - 6,539,460 Total Deferred Outflows of Resources 52,086,392 - 52,086,392

LIABILITIES
Accounts, Deposits and Contracts Payable 20,406,371 30,574,898 50,981,269 Accrued Liabilities 2,861,945 62,764 2,924,709 Interest Payable 964,260 117,575 1,081,835 Refundable Deposits 9,294,812 - 9,294,812
Unearned Revenue 2,830,554 - 2,830,554
Compensated Absences (Note 7):

Due in Less Than One Year 5,170,816 177,721 5,348,537 Due in More Than One Year 8,967,790 27,854 8,995,644 Claims Payable (Note 17):

Due in Less Than One Year 3,102,137 - 3,102,137 Due in More Than One Year 13,940,897 - 13,940,897 Long-Term Debt (Note 7):

Due in Less Than One Year 5,671,817 1,235,000 6,906,817 Due in More Than One Year 101,951,802 6,620,110 108,571,912 Leases Payable (Note 15):

Due in Less Than One Year 216,490 - 216,490
Due in More Than One Year 55,392 - 55,392
Subscription Liability (Note 16):

Due in Less Than One Year 904,633 - 904,633
Due in More Than One Year 1,324,263 - 1,324,263 Net OPEB Liability, Due in More Than One Year (Note 13) 22,850,699 - 22,850,699 Net Pension Liability CCRS, Due in More Than One Year (Note 10) 11,970,875 - 11,970,875 Net Pension Liability CalPERS, Due in More Than One Year (Note 12) 239,867,722 - 239,867,722 Total Liabilities 452,353,275 38,815,922 491,169,197

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases (Note 15) 8,342,073 354,797 8,696,870 Deferred Inflows Related to Pension - CCRS (Note 10) 834,975 - 834,975 Deferred Inflows Related to OPEB (Note 13) 3,050,659 - 3,050,659 Total Deferred Inflows of Resources 12,227,707 354,797 12,582,504 NET POSITION (Note 1)
Net Investment in Capital Assets 545,865,886 61,905,449 607,771,335 Restricted for:

Streets/Transportation 9,824,024 - 9,824,024 Housing and Community Services 5,077,234 - 5,077,234 Other Special Revenue Programs 8,180,478 - 8,180,478 Capital Projects 22,155,373 - 22,155,373
Debt Service 56,329 - 56,329
Community Development Projects 54,406,746 - 54,406,746 Total Restricted Net Position 99,700,184 - 99,700,184 Unrestricted Net Position (83,100,712) 60,120,062 (22,980,650) Total Net Position 562,465,358$ 122,025,511$ 684,490,869$ See accompanying notes to basic financial statements
25

CITY OF CONCORD

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 51,025,296$ 4,035,342$ 2,063,482$ -$ Public Safety 83,368,841 1,732,819 1,959,824 - Public Works 23,885,615 781,970 826,039 10,541,337 Economic Development and Base Reuse 2,590,588 - 138,750 - Community Development 16,919,920 8,172,986 4,622,239 11,242,580 Recreation Services 9,346,714 5,230,799 454,562 - Interest on Long-Term Debt 3,138,515 - - - Total Governmental Activities 190,275,489 19,953,916 10,064,896 21,783,917 Business-type Activities:

Sewer 40,237,125 47,715,585 - -
Golf Course 1,915,236 2,705,041 - - Total Business-type Activities 42,152,361 50,420,626 - - Total 232,427,850$ 70,374,542$ 10,064,896$ 21,783,917$ General Revenues:

Taxes:

Property taxes
Sales taxes
Sales taxes - Transaction Use Tax
Transient Occupancy Taxes
Business License Taxes
Franchise Fees
Motor Vehicle In Lieu, Unrestricted
Investment Earnings
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning, as Previously Reported
Adjustment - Change in Accounting Principle (Note 20)
Net Position - Beginning, as Adjusted
Net Position - Ending
See accompanying notes to basic financial statements
26

Governmental Business-t ype
Activities Activities Total
(44,926,472)$ (44,926,472)$
(79,676,198) (79,676,198)
(11,736,269) (11,736,269)
(2,451,838) (2,451,838)
7,117,885 7,117,885
(3,661,353) (3,661,353)
(3,138,515) (3,138,515)
(138,472,760) (138,472,760)
- 7,478,460$ 7,478,460
- 789,805 789,805
- 8,268,265 8,268,265
(138,472,760) 8,268,265 (130,204,495)
27,838,179 - 27,838,179
39,488,923 - 39,488,923
32,334,771 - 32,334,771
2,469,018 - 2,469,018
4,295,723 - 4,295,723
10,691,099 - 10,691,099
15,225,057 - 15,225,057
12,888,401 3,606,774 16,495,175 (1,073) 1,073 -
145,230,098 3,607,847 148,837,945 6,757,338 11,876,112 18,633,450 562,521,643 110,103,048 672,624,691
(6,813,623) 46,351 (6,767,272)
555,708,020 110,149,399 665,857,419
562,465,358$ 122,025,511$ 684,490,869$
Net (Expense) Revenue and
Changes in Net Position
27

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CITY OF CONCORD JUNE 30, 2025

FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2025. Individual non- major governmental funds are aggregated and titled “Other Governmental Funds”.

General Fund – The General Fund is the general operating fund of the City and accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Concord, these services include general government, public safety, public works, economic development, community development, and parks and recreation services.

Concord Housing – The Concord Housing Special Revenue Fund accounts for the activities related to the assets assumed by the City of Concord as the Hous ing Successor to the housing activities of the former Redevelopment Agency of the City of Concord.

ARPA – The ARPA Special Revenue Fund accounts for federal Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan.

General Projects Fund – This capital projects fund accounts for all general capital improvement projects not funded from proprietary funds.
2021 COP Projects Fund – This capital projects fund accounts for the projects that will be funded with the proceeds from the issuance of the 2021 Certificates of Participation Bonds. 29

CITY OF CONCORD

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2025
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds
ASSETS:

Cash and Investments (Note 3) 69,465,225$ 3,068,843$ -$ 12,053,923$ -$ 85,277,853$ 169,865,844$ Cash with Fiscal Agents (Note 3) - - - 175,959 49,873,503 50,559 50,100,021 Receivables (Net of Allowances for Uncollectible):

Accounts 4,837,699 - - 15,315 - 392,288 5,245,302 Due from Other Governments 12,843,260 - - 6,674,046 - 1,512,082 21,029,388 Interest 129,146 7,375,685 - - 645,025 190,679 8,340,535 Due from Other Funds (Note 4) 2,859,682 - - - - - 2,859,682 Loans and Notes (Note 5) - 33,934,815 - - - 1,842,993 35,777,808 Leases Receivable (Note 15) 8,670,853 - - - - - 8,670,853 Advances to Other Funds (Note 4) 12,234,631 1,155,011 - - - - 13,389,642 Total Assets 111,040,496$ 45,534,354$ -$ 18,919,243$ 50,518,528$ 89,266,454$ 315,279,075$ LIABILITIES:

Accounts, Deposits and Contracts Payable 14,638,020$ -$ -$ 596,421$ 3,396,110$ 791,439$ 19,421,990$ Accrued Liabilities 2,629,990 14,727 - - - 85,039 2,729,756 Refundable Deposits 9,294,812 - - - - - 9,294,812 Unearned Revenue 642,917 - - 1,327,126 - 860,511 2,830,554 Advances from Other Funds (Note 4) 2,308,857 - - 14,610,983 - - 16,919,840 Total Liabilities 29,514,596 14,727 - 16,534,530 3,396,110 1,736,989 51,196,952 DEFERRED INFLOWS OF RESOURCES:

Related to Leases (Note 15) 8,342,073 - - - - - 8,342,073 Unavailable Revenue - 41,310,500 - 6,126,856 - 3,180,564 50,617,920 Total Deferred Inflows of Resources 8,342,073 41,310,500 - 6,126,856 - 3,180,564 58,959,993 FUND BALANCES:

Fund Balances (Note 8):

Nonspendable 12,563,411 - - - - - 12,563,411 Restricted 1,722,631 4,209,127 - - 47,122,418 49,561,682 102,615,858 Assigned 14,507,843 - - - - 34,787,772 49,295,615 Unassigned 44,389,942 - - (3,742,143) - (553) 40,647,246 Total Fund Balances 73,183,827 4,209,127 - (3,742,143) 47,122,418 84,348,901 205,122,130 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 111,040,496$ 45,534,354$ -$ 18,919,243$ 50,518,528$ 89,266,454$ 315,279,075$ See accompanying notes to basic financial statements
30

CITY OF CONCORD

RECONCILIATION OF THE GOVERNMENTAL

FUNDS BALANCE SHEET TO THE

STATEMENT OF NET POSITION
JUNE 30, 2025
TOTAL FUND BALANCES -- TOTAL GOVERNMENTAL FUNDS 205,122,130$ Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

CAPITAL ASSETS
Capital assets used in governmental activities are not financial resources an, therefore, are not reported in the funds. 585,291,340

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net position and liabilities of the internal service funds are therefore included in governmental activities in the statement of net position. 57,321,264

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because they are not available currently are taken into revenue in the Statement of Activities. 50,617,920

DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO PENSION The deferred accounts below are related to the net pension liability and are not due and payable in the current period and therefore are not reported in the Funds:

Deferred outflows of resources related to pension - CalPERS 45,546,932 Deferred outflows resources related to OPEB 6,539,460
Deferred inflows of resources related to pension - CCRS (834,975) Deferred inflows of resources related to OPEB (3,050,659)

LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:

Long-Term Debt (106,859,751)
Lease Payable (271,882)
SBITA Payable (399,845)
Interest Payable (920,878)
Net Pension Liability CCRS (11,970,875)
Net Pension Liability CalPERS (239,867,722)
Net OPEB Liability (22,850,699)
Accrued Liabilities (946,402)
NET POSITION OF GOVERNMENTAL ACTIVITIES 562,465,358$
See accompanying notes to basic financial statements
31

CITY OF CONCORD

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
Other Total
Concord General 2021 COP Governmental Governmental
General Housing ARPA Projects Projects Funds Funds

REVENUES
Taxes:

Property 23,505,860$ -$ -$ -$ -$ 4,332,319$ 27,838,179$ Sales Tax:

Sales Tax 39,488,923 - - - - - 39,488,923
Sales Tax - Transaction Use Tax 32,334,771 - - - - - 32,334,771 Transient Occupancy 2,469,018 - - - - - 2,469,018 Franchise Fees 10,344,959 - - - - 346,140 10,691,099 Business License 4,295,723 - - - - - 4,295,723 Motor Vehicle In Lieu, Unrestricted 15,225,057 - - - - - 15,225,057 Licenses and Permits 2,526,405 - - - - 321,328 2,847,733 Intergovernmental 2,031,834 - 670,617 6,757,134 - 11,709,008 21,168,593 Charges for Services 7,931,483 - - - - 1,165,148 9,096,631 Fines, Forfeitures and Penalties 442,937 - - - - 105,441 548,378 Recreation Services 3,703,211 - - - - - 3,703,211 Use of Money and Property 7,458,597 183,194 - 167,500 3,161,687 2,316,662 13,287,640 Special Assessment Collections 8,478 - - - - - 8,478
Other 2,058,010 222,705 - 8,090,052 - 600,343 10,971,110 Total Revenues 153,825,266 405,899 670,617 15,014,686 3,161,687 20,896,389 193,974,544

EXPENDITURES
Current:

General Government 20,719,611 - 1,204,574 157,096 - 173,206 22,254,487 Public Safety 78,883,698 - - - - 327,256 79,210,954 Public Works 14,509,490 - 335,847 3,109,747 - 6,600,101 24,555,185 Economic Development and Base Reuse 1,205,622 - 19,400 1,418,907 - - 2,643,929 Community Development 11,851,771 264,915 - - 300,560 5,135,281 17,552,527 Recreation Services 7,755,258 - 10,614 201,604 - - 7,967,476 Capital outlay 162,960 - 120,000 13,535,748 33,253,535 18,280,751 65,352,994 Debt Service:

Principal 53,182 - - 409,794 - 5,110,835 5,573,811 Interest and Fiscal Charges 497,622 - - 26,706 - 3,355,795 3,880,123 Total Expenditures 135,639,214 264,915 1,690,435 18,859,602 33,554,095 38,983,225 228,991,486

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,186,052 140,984 (1,019,818) (3,844,916) (30,392,408) (18,086,836) (35,016,942)

OTHER FINANCING SOURCES (USES)
Issuance of Lease (Note 15) 162,769 - - - - - 162,769
Issuance of Subscription Liability (Note 16) - - - - - 185,039 185,039 Transfers in (Note 4) 2,339,751 - 51,673 2,077,672 - 17,952,564 22,421,660 Transfers (Out) (Note 4) (17,652,994) (334,957) - (2,239,713) (1,872,189) (685,189) (22,785,042) Total Other Financing Sources (Uses) (15,150,474) (334,957) 51,673 (162,041) (1,872,189) 17,452,414 (15,574) NET CHANGES IN FUND BALANCES 3,035,578 (193,973) (968,145) (4,006,957) (32,264,597) (634,422) (35,032,516)

FUND BALANCES
AT BEGINNING OF YEAR 70,148,249 4,403,100 968,145 264,814 79,387,015 84,983,323 240,154,646

FUND BALANCES
AT END OF YEAR 73,183,827$ 4,209,127$ -$ (3,742,143)$ 47,122,418$ 84,348,901$ 205,122,130$ See accompanying notes to basic financial statements
32

CITY OF CONCORD

RECONCILIATION OF THE

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
TO THE

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (35,032,516)$ Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capitalized expenditures are therefore added back to fund balance 63,844,797 Depreciation expense is deducted from the fund balance (29,433,390) (Depreciation expense is net of internal service fund depreciation of $4,321,685 which has already been allocated to the internal service funds.) Contribution of assets to Internal Service Funds are deducted from fund balance (1,730,281)

LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond principal is an expenditure in the Governmental Funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Repayment of debt principal 5,065,000
Issuance of lease (162,769)
Repayment of lease principal 210,434
Issuance of SBITA (185,039)
Repayment of SBITA principal 298,377
Amortization of bond premium 764,359

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Pension expense CCRS 3,042,755
Pension expense CalPERS (7,464,779)
OPEB expense 2,911,817
Deferred inflow of resources - Unavailable revenues 428,573 Interest Payable 50,864

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with Governmental Funds is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds, less contributions from Governmental Funds 4,149,136
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 6,757,338$ See accompanying notes to basic financial statements
33 Page 65 of 232

CITY OF CONCORD

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Taxes:

Property 23,040,000$ 23,040,000$ 23,505,860$ 465,860$ Sales Tax:

Sales Tax 42,317,000 38,817,000 39,488,923 671,923 Sales Tax - Transaction Use Tax 33,000,000 33,000,000 32,334,771 (665,229) Transient Occupancy 2,500,000 2,500,000 2,469,018 (30,982) Franchises 8,534,400 9,834,400 10,344,959 510,559 Business License 3,890,300 4,290,300 4,295,723 5,423 Motor Vehicle In Lieu, Unrestricted 15,000,000 15,000,000 15,225,057 225,057 Licenses and Permits 2,189,920 2,189,920 2,526,405 336,485 Intergovernmental 1,550,000 1,550,000 2,031,834 481,834 Charges for Services 6,771,742 7,461,742 7,931,483 469,741 Fines, Forfeitures and Penalties 322,500 322,500 442,937 120,437 Recreation Services 3,333,558 3,333,558 3,703,211 369,653 Use of Money and Property 2,729,945 3,129,945 7,458,597 4,328,652 Special Assessment Collections 7,800 7,800 8,478 678
Other 1,327,800 1,327,800 2,058,010 730,210 Total Revenues 146,514,965 145,804,965 153,825,266 8,020,301 EXPENDITURES:

Current:

General Government:

Council 560,840 563,784 461,433 102,351 Manager 3,935,257 4,128,463 3,523,640 604,823 Attorney 2,200,816 2,328,238 2,136,726 191,512 Human Resources 2,943,824 3,033,711 3,043,468 (9,757) Finance 11,769,443 12,275,481 11,554,344 721,137 Total General Government 21,410,180 22,329,677 20,719,611 1,610,066 Public Safety 76,607,473 76,924,381 78,883,698 (1,959,317) Public Works 14,810,724 15,392,394 14,509,490 882,904 Economic Development and Base Reuse 1,228,706 1,432,960 1,205,622 227,338 Community Development 12,136,376 13,940,559 11,851,771 2,088,788 Recreation Services 7,682,225 7,768,393 7,755,258 13,135 Capital Outlay - 1,450,590 162,960 1,287,630
Debt Service:

Principal - - 53,182 (53,182)
Interest and Fiscal Charges 412,600 412,600 497,622 (85,022) Total Expenditures 134,288,284 139,651,554 135,639,214 4,012,340

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 12,226,681 6,153,411 18,186,052 12,032,641

OTHER FINANCING SOURCES (USES)
Issuance of Lease - - 162,769 162,769
Transfers In 191,740 2,246,912 2,339,751 92,839 Transfers (out) (17,104,922) (18,516,676) (17,652,994) 863,682 Total Other Financing Sources (Uses) (16,913,182) (16,269,764) (15,150,474) 1,119,290 NET CHANGE IN FUND BALANCE (4,686,501)$ (10,116,353)$ 3,035,578 13,151,931$ FUND BALANCE AT BEGINNING OF YEAR 70,148,249
FUND BALANCE AT END OF YEAR 73,183,827$
See accompanying notes to basic financial statements
34 Page 66 of 232

CITY OF CONCORD

CONCORD HOUSING SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Use of Money and Property 323,686$ 323,686$ 183,194$ (140,492)$ Other Revenue - - 222,705 222,705
Total Revenues 323,686 323,686 405,899 82,213 EXPENDITURES:

Current:

Community Development 319,784 319,783 264,915 54,868 Total Expenditures 319,784 319,783 264,915 54,868

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 3,902 3,903 140,984 137,081

OTHER FINANCING SOURCES (USES)
Transfers out - - (334,957) (334,957)
NET CHANGE IN FUND BALANCE 3,902$ 3,903$ (193,973) (197,876)$ FUND BALANCE AT BEGINNING OF YEAR 4,403,100
FUND BALANCE AT END OF YEAR 4,209,127$
See accompanying notes to basic financial statements
35

CITY OF CONCORD

ARPA SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Intergovernmental -$ -$ 670,617$ 670,617$
Use of Money and Property 258,193 258,193 - (258,193) Total Revenues 258,193 258,193 670,617 412,424 EXPENDITURES:

Current:

General Government - 1,208,962 1,204,574 4,388
Public Works - 218,117 335,847 (117,730)
Economic Development and Base Reuse - - 19,400 (19,400) Recreation Services - - 10,614 (10,614)
Capital Outlay - 350,673 120,000 230,673
Total Expenditures - 1,777,752 1,690,435 87,317 OTHER FINANCING SOURCES (USES):

Transfers In - - 51,673 (51,673)
Total Other Financing Sources (Uses) - - 51,673 (51,673) NET CHANGE IN FUND BALANCE 258,193$ (1,519,559)$ (968,145) 551,414$ FUND BALANCE AT BEGINNING OF YEAR 968,145
FUND BALANCE AT END OF YEAR -$
See accompanying notes to basic financial statements
36

CITY OF CONCORD JUNE 30, 2025

PROPRIETARY FUNDS
Proprietary funds account for City operations financ ed and operated in a manner similar to a private business enterprise. The intent of the City is that th e cost of providing goods and services be financed primarily through user charges.

The concept of major funds extends to Proprietary Funds. Generally accepted accounting principles do not provide for the disclosure of budget vs. actual comp arisons regarding proprietary funds. The City reports the Sewer Enterprise Fund as a major fund:

Sewer Fund. To account for activities associated with sewage transmission and treatment.

The City reports the Golf Course Fund as a non-major fund.

Golf Course Fund. To account for activities associated with the development, operation and maintenance of the Diablo Creek Golf Course.
37

CITY OF CONCORD

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2025
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Total Funds
ASSETS:

Current Assets:

Cash and Investments (Note 3) 85,491,893$ 5,266,124$ 90,758,017$ 60,737,072$ Cash with Fiscal Agents (Note 3) 1,866 - 1,866 -
Accounts Receivable 143,818 145,254 289,072 3,309,944 Interest Receivable 792,163 1,177 793,340 - Prepaid items - - - 2,241,668
Total Current Assets $86,429,740 5,412,555 91,842,295 66,288,684 Non-Current Assets:

Advances to Other Funds (Note 4) - - - 4,303,846
Lease Receivable (Note 15) - 367,024 367,024 - Capital Assets (Note 6):

Land 334,838 60,344 395,182 - Construction In Progress 32,893,483 - 32,893,483 3,310,334 Buildings and Improvements 2,832,944 5,876,042 8,708,986 49,430,154 Machinery and Equipment 394,316 136,177 530,493 45,460,383 Sewer Collection System 228,892,728 - 228,892,728 - Intangible Asset - - - 2,598,769
Less: Accumulated Depreciation (196,753,663) (4,906,650) (201,660,313) (77,223,115) Net Capital Assets 68,594,646 1,165,913 69,760,559 23,576,525 Total Non-Current Assets 68,594,646 1,532,937 70,127,583 27,880,371 Total Assets 155,024,386 6,945,492 161,969,878 94,169,055 LIABILITIES:

Current Liabilities (Payable from Current Assets):

Accounts and Contracts Payable 30,570,435 4,463 30,574,898 37,979 Accrued Liabilities 61,927 837 62,764 132,189
Due to Other Funds (Note 4) - - - 2,859,682
Interest Payable 117,553 22 117,575 43,382 Unearned revenue - - - -
Compensated Absences Payable (Note 7) 177,721 - 177,721 5,170,816 Lease Payable (Note 7) - - - 376,817
Revenue Refunding Bonds (Note 7) 1,235,000 - 1,235,000 - Claims Payable (Note 17) - - - 3,102,137
Subscription Liability (Note 16) - - - 600,081
Total current liabilities 32,162,636 5,322 32,167,958 12,323,083 Noncurrent Liabilities:

Compensated Absences Payable (Note 7) 27,854 - 27,854 8,967,790 Advance from Other Funds (Note 4) - 773,648 773,648 -
Long-Term Debt
Due in More Than One Year (Note 7) 6,620,110 - 6,620,110 387,051 Claims Payable
Due in More Than One Year (Note 17) - - - 13,940,897
Subscription Liability:

Due in More Than One Year (Note 16) - - - 1,228,970
Total Noncurrent Liabilities 6,647,964 773,648 7,421,612 24,524,708 Total Liabilities 38,810,600 778,970 39,589,570 36,847,791

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases (Note 15) - 354,797 354,797 - NET POSITION:

Net Investment in Capital Assets 60,739,536 1,165,913 61,905,449 20,983,606 Unrestricted 55,474,250 4,645,812 60,120,062 36,337,658 Total Net Position 116,213,786$ 5,811,725$ 122,025,511$ 57,321,264$ See accompanying notes to basic financial statements
38

CITY OF CONCORD

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Totals Funds

OPERATING REVENUES
Service Fees 47,713,585$ -$ 47,713,585 $ -$ Charges for Services - - - 30,991,971
Golf Course Fees and Charges - 2,604,998 2,604,998 - Other 2,000 100,043 102,043 3,864,040
Total Operating Revenues 47,715,585 2,705,041 50,420,626 34,856,011

OPERATING EXPENSES
Operating and Maintenance 35,387,769 1,780,058 37,167,827 29,095,011 Cost of Sales and Services - - - 41,743
Depreciation (Note 6) 4,604,326 135,178 4,739,504 4,321,685 Claims and Judgments - - - 2,096,350
Total Operating Expenses 39,992,095 1,915,236 41,907,331 35,554,789 Operating Income (Loss) 7,723,490 789,805 8,513,295 (698,778)

NON-OPERATING REVENUES (EXPENSES)
Investment Income 3,402,217 204,557 3,606,774 2,630,783 Interest Expense (240,221) - (240,221) (73,615) Gain (Loss) on Retirement of Capital Assets (4,809) - (4,809) 198,156 Total Non-Operating Revenues (Expenses) 3,157,187 204,557 3,361,744 2,755,324 Income (Loss) Before Contributions and Transfers 10,880,677 994,362 11,875,039 2,056,546 Capital Contributions - - - 1,730,281
Transfers In (Note 4) 1,073 - 1,073 587,520
Transfers Out (Note 4) - - - (225,211)
Net Contributions and Transfers 1,073 - 1,073 2,092,590 Changes in Net Position 10,881,750 994,362 11,876,112 4,149,136 Net Position - Beginning, as Previously Reported 105,285,685 4,817,363 110,103,048 59,985,751 Adjustment - Change in Accounting Principle (Note 20) 46,351 - 46,351 (6,813,623) Total Net Position - Beginning, as Adjusted 105,332,036 4,817,363 110,149,399 53,172,128 Total Net Position - Ending 116,213,786$ 5,811,725$ 122,025,511$ 57,321,264$ See accompanying notes to basic financial statements
39

CITY OF CONCORD

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities-Enterprise Funds Governmental
Non-Major Activities-
Enterprise/ Internal Service
Sewer Golf Course Totals Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 47,748,226$ 2,626,944$ 50,375,170$ 25,933,459$ Payments to Suppliers (31,986,664) (1,731,065) (33,717,729) (15,530,077) Payments to Employees (3,357,263) (48,858) (3,406,121) (5,983,563) Claims Paid - - - (2,415,365)
Net Cash Provided by (Used for) Operating Activities 12,404,299 847,021 13,251,320 2,004,454

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Borrowings of Advances From/(To) Other Funds 221,874 - 221,874 76,189 Transfers In 1,073 - 1,073 587,520
Transfers (Out) - - - (225,211)
Net Cash Provided by (Used for)
Non-Capital Financing Activities 222,947 - 222,947 438,498

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (12,450,238) (1) (12,450,239) (5,095,863) Proceeds from Sale of Capital Assets - - - 198,156
Principal Paid on Subscription Liability - - - (632,729) Principal Paid on Debt (1,195,000) - (1,195,000) (366,854) Interest and Fiscal Charges Paid (328,991) - (328,991) (51,574) Net Cash Provided by (Used for) Capital and Related
Financing Activities (13,974,229) (1) (13,974,230) (5,948,864)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (Paid) 3,173,129 203,996 3,377,125 2,630,783 Net Cash Provided by (Used for) Investing Activities 3,173,129 203,996 3,377,125 2,630,783 Net Increase (Decrease) in Cash and Cash Equivalents 1,826,146 1,051,016 2,877,162 (875,129) Cash and Cash Equivalents at Beginning of Period 83,667,613 4,215,108 87,882,721 61,612,201 Cash and Cash Equivalents at End of Period 85,493,759$ 5,266,124$ 90,759,883$ 60,737,072$ Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:

Operating Income (Loss) 7,723,490$ 789,805$ 8,513,295$ (698,778)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:

Depreciation 4,604,326 135,178 4,739,504 4,321,685 Change in assets and liabilities:

Receivables, Net 32,641 (71,631) (38,990) 63,079 Prepaid items - - - (2,241,668)
Accounts payable and other accrued expenses 3,846 (3) 3,843 34,307 Accrued Liabilities 13,559 138 13,697 33,104
Unearned Revenue - (4,170) (4,170) -
Compensated Absences 26,437 - 26,437 811,740
Leases-related activity - (2,296) (2,296) -
Self Insurance Claims Payable - - - (319,015)
Net Cash Provided by (Used for) Operating Activities 12,404,299$ 847,021$ 13,251,320$ 2,004,454$ NONCASH TRANSACTIONS:

Contributions of Capital Assets, Net -$ -$ -$ 1,730,281$ Retirement of Capital Assets (4,809)$ -$ -$ -$ See accompanying notes to basic financial statements
40

CITY OF CONCORD JUNE 30, 2025

FIDUCIARY FUNDS
Trust funds are used to account for assets held by the City as a trustee agent for individuals, private organizations, and other governments.

Custodial Funds account for assets held by the City in a custodial capac ity for individuals or other parties
outside of the City’s reporting entity.

The financial activities of these funds are excluded from the City-wide financial statement, but are presented in separate Fiduciary Fund financial statements.
41

CITY OF CONCORD

FIDUCIARY FUNDS

STATEMENTS OF FIDUCIARY NET POSITION
JUNE 30, 2025
City of Concord Successor Tourism
Retirement Agency Improvement
System Private District
Pension Purpose Custodial
Trust Trust Fund Fund
ASSETS:

Cash and Investments (Note 3)
U.S. Treasury Notes 3,847,097$ -$ -$
U.S. Government Agencies Obligations 4,656,343 - -
Medium-Term Corporate Notes 6,049,499 - -
Foreign Bonds 259,682 - -
Mutual Funds 15,216,559 - -
Pooled Investments 2,175,746 952,716 116,336
Total Cash and Investments 32,204,926 952,716 116,336 Receivables (Net of Allowances for Uncollectibles):

Accounts - 80,219 -
Interest on Loan Receivable (Note 19) - 479,547 -
Loan Receivable (Note 19) - 230,003 -
Total Assets 32,204,926 1,742,485 116,336
LIABILITIES:

Accounts Payable and Due to Others - - 116,336
Total Liabilities - - 116,336
NET POSITION:

Net Position Restricted for Pension
Benefits and Held in Trust for Other Purposes 32,204,926 1,742,485 - Total Net Position (Deficit) 32,204,926$ 1,742,485$ -$ See accompanying notes to basic financial statements
42

CITY OF CONCORD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
City of Concord Successor Tourism
Retirement Agency Improvement
System Private District
Pension Purpose Custodial
Trust Trust Fund Fund

ADDITIONS
Employer Contributions 2,370,000$ -$ -$
Property Taxes, Net of Pass Through Payments - 2,988,643 - Intergovernmental revenue - - -
Net Investment Income:

Investment Income 2,993,020 65,854 -
Investment Management Fees (177,448) - -
Other Revenue - 652 -
Total Additions 5,185,572 3,055,149 -

DEDUCTIONS
Retirement and Other Benefits 4,908,393 - -
Economic Development and Base Reuse - 461,836 -
Community Planning and Economic Development - 2,441 -
Interest Expense - 85,855 -
Total Deductions 4,908,393 550,132 -
NET CHANGES IN NET POSITION 277,179 2,505,017 -
Net Position (Deficit) Held in Trust, Beginning of Year 31,927,747 (762,532) - Net Position (Deficit) Held in Trust, End of Year 32,204,926$ 1,742,485$ -$ See accompanying notes to basic financial statements
43

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CITY OF CONCORD JUNE 30, 2025

NOTES TO THE BASIC FINANCIAL STATEMENTS

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Concord (City) was incorporated in 1905 and operates under the Council-Manager form of government. The City provides the following servi ces: public safety (police services and building inspection), streets and roads, sewer collection, recreation services, public improvements, planning and zoning, economic development and general administration services.

The financial statements and accounting policies of the City of Concord conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standard Board (GASB) is the accepted standard-setting body for establishi ng governmental accounting and financial reporting principles. The following is a summary of the more significant policies:

Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial ac tivities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City's operations (i.e. the City has operatio nal responsibility for the component unit) or a financial benefit / burden relationship exist, and are reported as an integral part of the City's financial statements.

The City's component units which are described below are all blended.

The City of Concord Joint Powers Financing Authority is a joint powers authority organized by the City of Concord and the former Concord Redevelopment Agency under the laws of the State of California. The Authority was organized to provide financial assistance to the City by financing real and personal properties and improvements for the benefit of the residents of the City and surrounding areas. Administrative and related normal business expenses incurred in the day- to-day operations of the Authority are provided by the City. Such expenses are insignificant to the Authority's operations. The Authority obtains financing for City and the former Agency sponsored projects using leases signed by the City or former Agency as collateral. The amounts of the leases are calculated to provide sufficient resources to repay the debt incurred to finance the projects.

The Concord/Pleasant Hill Health Care District is a local health care district organized under Local Hospital District Law, as set forth in the Health and Safety Code of the State of California and is governed by the City's Council. City staff provides management assistance to the District.

The City of Concord Retirement System is governed by the City's Retirement System Ordinance, Article II, Chapter 8 of the City of Concord Municipal C ode, and is used to account for contributions and investment income restricted to pay retirement and death benefits of genera l and police employees. The Plan's benefit provisions are frozen and retirement and death benefit payments are restricted to eligible employees who retired or left the City of Concord eligible for a pension prior to June 28, 1999. Contribution provisions are established by the City Council. Elig ibility, actuarial interest rates, administration and certain other tasks are the responsibility of the Retirement Board established by the above ordinance.

Financial statements for the City of Concord Joint Powers Financing Authority and the Concord/Pleasant Hill Health Care District can be obtained from the City of Concord, 1950 Parkside Drive, Concord, California 94519. The City of Concord Retirement System does not issue separate financial statements. 46

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Government-wide Statements: The Statement of Net Position and th e Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, exce pt for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activ ities generally are financed through taxes, intergovernmental revenues, and other non-exchange tran sactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs , (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues th at are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blen ded component units. Separate st atements for each fund category:
governmental, proprietary, and fiduciary, are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services , result from exchange transactions associated with the principal activit y of the fund. Exchange transactio ns are those in which each party receives and gives up essentially equal values. Operating expenses result from the cost of providing those services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

Major Funds
The City's major governmental and enterprise funds ar e identified and presented separately in the fund financial statements. All other governmental and ente rprise funds, called non-major funds, are combined and reported in single columns.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund – The General Fund is the general operating fund of the City and accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Concord, these services include general government, public safety, public works, economic development, community development, and parks and recreation services. 47

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major Funds (Continued)
Concord Housing Fund – The Concord Housing special revenue f und accounts for the activities related to the assets assumed by the City of Concord as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Concord.

ARPA Fund – The ARPA Special Revenue Fund accounts for federal Coronavirus State and Local Fiscal Recovery Funds received as part of the American Rescue Plan Act (ARPA).

General Projects Fund – This capital projects fund accounts for all general capital improvement projects not funded from proprietary funds.
2021 COP Projects Fund – This capital projects fund accounts for the projects that will be funded with the proceeds from the issuance of the 2021 Certificates of Participation Bonds.

The City reported the following enterprise fund as a major fund in the accompanying financial statements:

Sewer Fund – To account for activities associated with sewage collection, transmission and treatment.

The City also reports the following fund types:

Internal Service Funds – These funds account for workers' compensation costs, non-reimbursable portion of insurance claims, post-employment health care benefits, City facilities' maintenance expenses, maintenance and replacement costs of City licensed vehicles, motorized equipment, technology equipment and office equipment and funding for compensated abse nces balances; all of wh ich are provided to other departments on a cost-reimbursement basis.

Fiduciary Funds – Fiduciary Funds account for assets held by the City as trustee agent for other governmental units, private organizations or individuals. The City of Concord Retirement System (CCRS) Pension Trust Fund accounts for accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future. The Successor Agency to the Redevelopment Agency of the City of Concord is reported in a Private Purpose Trust Fund that is used to account for the activities of the Successor Agency. The Custodial Funds account for charges collected by the government on behalf of other governments or third parties. The financial activitie s of these funds are excluded from the City-wide financial statement, but are presented in separate Fiduciary Fund financial statements.

Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

The City considers all revenues reported in the gove rnmental funds to be available if the revenues are collected within sixty days after year-end, except for sales tax reve nue which has a 90 day period of availability. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of long-term debt and financing through leases are reported as other financing sources. 48

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting (Continued)
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, sales tax, grants entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Other revenues susceptible to accrual include intergovernmental revenues, interest and charges for services.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted Net Position may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include accumulated unpaid vacation, sick pay and other employee amounts which are recognized as expenditures to the extent they have matured, and principal and interest on general long-term debt, including lease liabilities, which is recogni zed when due. Financial resources usually are appropriated in other funds for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. Such amounts thus are not current liabilities of the debt service fund, as their settlement will not require expenditure of existing fund assets.

Inventory and Prepaid Items
Inventories are valued at cost (on the first-in, first- out basis). Inventories of the General Fund consist of expendable supplies held for consumpt ion. The cost is recorded as an expenditure in the General Fund at the time individual inventory items are consumed. Reported General Fund inventories are equally offset by amounts included in Nonspendable Fund Balance whic h indicates that they do not constitute available spendable resources even though they are a component of net position.

Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items in governmental funds are equally offset by amounts included in Nonspendable Fund Ba lance which indicates that they do not constitute available spendable resources even though they are a component of net position.

Property Taxes and Special Assessment Revenue
The County of Contra Costa levies, bills and collect s property taxes for the City; the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 a nd April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31.
49

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Sales Tax
Since 1956 the Bradley Burns Uniform Local Sales and Use Tax Law has imposed a tax (Bradley Burns tax) on the retail sale of merchandise or goods within the State of California. In order to provide for uniform administration, reporting, sales and use tax rates and, collection of local sales and use taxes, the State collects the Bradley Burns tax on beha lf of cities and counties, and distributes the revenue to those local governments. On September 27, 1956, the City adopted Ordinance No. 354 to contract with the State of California to provide for the collection and administration of City’s sales and use taxes under the Bradley- Burns Uniform Local Sales and Use Tax Law.

Compensated Absences
In governmental funds, Compensate d Absences (unpaid vacation and sick leave) are recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at June 30 from future resources rather than currently avai lable expendable resources. The City's liability for Compensated Absences is determined annually. In addition, the liability at the end of the fiscal year includes an estimate of the sick leave earned as of the end of th e fiscal year and expected to be used in the future.

For all governmental funds, amounts expected to be paid out for permanent liquidation are recorded as fund liabilities; the long term portion is recorded in the Statement of Net Position.

Compensated Absences are included in accrued liabilities. Compensate d Absences are liquidated by the fund that has recorded the liability. Compensated Absences are accounted for by Proprietary funds as expenditures in the year earned. The changes in Compensated Absences of governmental and business-type activities are summarized in Note 7.

Capital Assets
All capital assets are valued at historical cost or estim ated historical cost if act ual historical cost is not available, except for intangible right to use leased assets and subscription assets, the measurement of which is discussed in Notes 15 and 16 below. Contributed ca pital assets are valued at their acquisition value on the date contributed. The City's policy is to capita lize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.

The City has recorded all its public domain (infrastructure) capital asse ts, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems in the government-wide financial statements.

All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets.

The amount charged to depreciation expense each year repr esents that year's pro rata share of the cost of capital assets.
50

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Assets (Continued)
Depreciation of capital assets in service is provided using the straight line method which means the cost of the asset is divided by its expected useful life in year s and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives and capitalization thresholds listed below to capital assets.

Capitalization
Useful Lives Threshold
Ground improvements 33 Years 100,000$
Buildings and improvements 33 Years 100,000
Right-to-use leased buildings and improvements 2 Years 7,500 Right-to-use subscription assets 2 to 5 years 100,000
Machinery and equipment 10 Years 7,500
Vehicles 5 Years 7,500
Streets 30 Years 100,000
Sidewalks 50 Years 100,000
Storm drains/catch basins 100 Years 100,000
Traffic signals 30 Years 100,000
Sewer lines 50 Years 100,000
Major outlays for capital assets and improvements are capitalized as projects are constructed.

Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position and Statement of Fiduciary Net Position may report a separate section for deferred outflows of resources. Th is separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an expense/expenditure until then.

In addition to liabilities, the statements of net position and the balance sheets reports a separate section for deferred inflows of resources. This separate financia l statement element represen ts an acquisition of net assets that applies to a future period(s) and so w
ill not be recognized as revenue until that time. The
governmental funds have one item, which arises on ly under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governm ental funds report unavailable revenues from intergovernmental revenue and deferred inflows of resources related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 51

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position and Fund Balances
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.

Net Position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources. Net Position is divided into three captions, and is described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City's capital assets, less the ou tstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which are re stricted as to use by the terms and conditions of agreements with outside parties, governmental re gulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements.

Unrestricted describes the portion of Net Position which are not restricted as to use.

The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sour ces, the City prioritizes and expe nds funds in the following order:

Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are incl uded. However, if proceeds realiz ed from the sale or collection of nonspendable assets are restricted, committed or assi gned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions impose d by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires th e resources to be used only for a specific purpose.

Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by City Council resolution which may be altered only by resolution of the City Council. This category may include encumbrances.

Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expre ssed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. City policy and procedure No. 168 delegates the authority to assign to the City Manager. This ca tegory may include encumbra nces and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds have not been restricted or committed.

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

This includes the residual general fund balance and re sidual fund deficits, if any, of other governmental funds. The general fund is the only fund that reports a positive unassigned fund balance amount. 52

CITY OF CONCORD JUNE 30, 2025

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Minimum Fund Balance Policy

To address financial uncertainties, the City maintains various General Fund reserves and contingency funds that, when combined, total not less than 17 percent of the General Fund’s operating expenditures. The reserve and contingency funds include: the General Fund Operating Contingency Reserve fund; the Benefit Reserve fund; the Capital Maintenance Reserve fund; the Economic Contingency Reserve fund; and the Unforecasted Reserve fund. The total combined assigned and unassigned fund balance for these funds was $48.6 million or 36% percent of Ge neral Fund Operating Expenditur es. These funds, along with the Pavilion Fund, SLEFS Fund, Community Court Fund, and Forfeited Deposit Fund are included within the financial statements as the “General Fund”. Includi ng these additional funds, and the Pavilion Fund, the total combined unassigned fund balance was $44.4 million.

Pensions

For purposes of measuring the net pension liability and deferred inflows/outflows of resources related to pensions, and pensions expense, information about the fiduciary net position of the miscellaneous plan and the safety plan of the City of Concord, an agent multiple-employer define d benefit pension plan participating in the California Public Employees’ Retirement System (CalPERS) plan and Concord Retirement System (CCRS) plan and additions to/de ductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability and de ferred inflows/outflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plans of the City of Concord, an agent multiple-employer defined benefit pension plan partic ipating in the California Public Employees’ Retirement System (CalPERS) plan and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contribu tions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Fair Value Measurement

The City categorizes the fair value measurement s of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liab ilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

53

CITY OF CONCORD JUNE 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Closed Funds
The ARPA Special Revenue Fund was closed as of June 30, 2025. The Custodial Fund was closed as of June 30, 2025, but the fund is expected to have activity in the future.

New Effective Accounting Pronouncements
GASB Statement No. 101 – In June 2022, GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurem ent guidance under a unified model and by amending certain previously required disclosures. The requireme nts of this Statement are effective for fiscal years beginning after December 15, 2023, an d all reporting periods thereafter. The City implemented the provisions of this statement in fiscal year 2025. See Note 7 and Note 20.

GASB Statement No. 102 – In December 2023, GASB issued GASB Statement No. 102, - Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. GASB Statement No. 102 did not have an effect on the financial statements.

Future Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) releases new accounting and financial reporting standards which may have a signifi cant impact on the City's financia l reporting process. Future new standards which may impact the City, include the following:

GASB Statement No. 103 – In April 2024, GASB issued GASB Statement No. 103, Financial Reporting Model Improvements . The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requir ements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. The City has not determined the effect of this Statement.

GASB Statement No. 104 – In September 2024, GASB issu ed GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, an d all reporting periods thereafter. The City has not determined the effect of this Statement. 54

CITY OF CONCORD JUNE 30, 2025
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The City Manager submits to the City Council proposed biennial operating budget by June. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayer comments.

3. The budget is legally enacted through passage of separate resolutions for the City.

4. The City Manager is authorized to transfer budgeted amounts from one program, department or account to another within the same fund. All transfers of appropriations affecting Personnel Service type accounts require the Director of Human Resources and City Manager approval. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval.

5. The City is required to adopt a biennial operating budget on or before June 30 for all funds on a basis consistent with generally accepted accounti ng principles. From the effective date of the budget, the amounts stated therein as proposed ex penditures become appropriations to the various funds. The City Council may amend the budget during the fiscal year.

6. All governmental fund type annual operating budgets are adopted on a basis consistent with generally accepted accounting principles, except for capital outlay expenditures for Special Revenue Funds which are budgeted on a project time frame rather than on an annual basis, in conjunction with #7 below.

7. The City also adopts budgets for its Capital Projec ts, which are based on the project life rather than a fiscal year. Therefore, capital project budgets ma y span several fiscal years. Project appropriations transfers of $220,000 or more require City Council approval.

Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration in the governmental funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.

Appropriation Lapses
Unexpended appropriations lapse at year end unless budgeted on a project basis.

NOTE 3 – CASH AND INVESTMENTS
The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except Cash with Fiscal Agents so that it can be safely invested at maximum yields.

Individual funds are able to make expenditures at any time during the year.

Policies
All investments are carried at fair value and as a general rule investment income is allocated among funds on the basis of average monthly cash and investment ba lances in these funds. Interest income on certain investments is allocated based on the source of the investment and legal requirements which apply.

California Law requires banks and savings and loan in stitutions to pledge government securities with a market value of 110 percent of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150 percent of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution.
55

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Policies (Continued)
Cash and investments are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

Classification
Cash and investments are classified in the financial statements as shown below at June 30, 2025:

Internal
Governmental Enterprise Service Fiduciar y
Funds Funds Funds Funds Total
Cash and investments 169,865,844$ 90,758,017$ 60,737,072$ 33,273,978$ 354,634,911$ Cash with fiscal agents 50,100,021 1,866 - - 50,101,887 Total cash and investments 219,965,865$ 90,759,883$ 60,737,072$ 33,273,978$ 404,736,798$ Investments Authorized by the California Government Code and the City's Investment Policy The City of Concord operates its investment activities under the prudent man rule. This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current statutes of the State of California. The Ci ty is authorized to invest in the following types of instruments, and the table also identifies certain provisions of the California Government Code, or the City's investment policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage Investmen t
Authorized Investment Type Maturity Quality* of Portfolio in One Issue r U.S. Treasury Bills, Bonds and Notes 5 years None None None Federal Agency or United States 5 years None None None
Government Sponsored Obligations**
State Obligations - CA & Others 5 years A 30% None
Bankers' Acceptances 180 days A 30% None
Commercial Paper 270 days A/A-1 25% 10%***
Negotiable Certificates of Deposit 5 years A 30% None
Medium-Term Corporate Notes 5 years A 30% None***
Money Market Mutual Funds N/A Top rating 20% No Limit
California Local Agency Investment Fund (LAIF) N/A None $75 million per
account
$75 million per
account
Time Certificates of Deposit 5 years Satisfactory None 10% Supranationals 5 years AA 30% None
Shares of Beneficial Interest Issued by a Joint
Powers Authority (local government investment Pursuant to Government pool such as CAMP) N/A Code Section 6509.7 None None
* At time of purchase
**Federal agency securitized securities (including, but not limited to, mortgage-backed securities, collateralized mortgage obligations and commercial mortgage backed securities) are not permitted. *** Total value invested in any one issuer may not exceed 5% of the outstanding commercial paper and the medium term notes of any single issuer.

Under the City's Investment Policy, investments not described above are ineligible investments. In addition, the City may not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages in accordance with the California Government Code. 56

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trus tees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obli gations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authori zed for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Minimum
Maximum Credit
Authorized Investment Type Maturity Quality
Federal Agency Securities 5 years Top rating category
State of California Local Agency Investment Fund None None Commercial Paper 270 days Top rating category
Negotiable Certificates of Deposit 180 days Top rating category Bank Deposits None FDIC Insured
U.S. Government Treasury Obligations None None
State/Local Obligations None Top rating category
Federal Securities None Top rating category
Corporate Notes None Top rating category
Repurchase Agreements 1 year Top rating category
Money Market Mutual Funds None Top rating category
Investment Agreements None Top rating category
Contra Costa County Investment Pool None None
Retirement System Authorized Investments
The System's investment policy authorizes the System to invest in financial instruments in three broad investment categories: equity, fixed income, and real estate. These fina ncial instruments can include, but are not limited to, corporate bonds, commercial paper, U.S. government securities, common and preferred stock, real estate investment trus
ts, and mutual funds. Fixed income investments may include bonds and commercial paper in order to provide added flexibility in managing the fixed income portfolio.

The asset allocation ranges for the system are as follows:

Target Mix Minimum Maximum
Large/Medium Cap Domestic Equity 30% 20% 45%
International Equity 7.5% 2% 15%
Small Cap Equity 7.5% 2% 15%
Domestic Real Estate 0% 0% 10%
Domestic Fixed Income 50% 40% 60%
Cash 5% 0% 20%
Allocation Ranges
57

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, 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 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 maturi ng 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 and Retirement System's investments (including investments held by bond trustees) to mark et interest rate fluctuations is provided by the following tables that show the distribution of the Ci ty's and Retirement System’s investments by maturity or earliest call date:

City and Fiscal Agents
Remaining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 to 60
Less Months Months Months Total
Investment Type:

U.S. Treasury Notes $ - $ 1,546,949 $ 32,582,252 $ 10,338,929 $ 44,468,130 U.S. Government Agencies Obligations 1,285,427 - - - 1 ,285,427 Medium-Term Corporate Notes 1,260,859 2,998,989 1,653,843 9,907,188 15,820,879 Negotiable Certificates of Deposit 1,705,995 - - - 1 ,705,995 Municipal Bonds 1,294,770 242,933 - - 1,537,7 03 LAIF 138,236,160 - - - 138,236,160 CAMP 140,305,219 - - - 140,305,219 CalTrust 25,233,262 - - - 25,2 33,262 Money Market Mutual Funds 1,070,969 - - - 1 ,070,969 Total $ 310,392,661 $ 4,788,871 $ 34,236 ,095 $ 20,246,117 369,663,744 Cash deposits with banks and on hand 2,868,128
Total Cash and Investments $ 372,531,872
Retirement System Pension Trust Fund
Remaining Maturity (in Months)
12 Months or 13 to 24 25 to 36 37 or More
Less Months Months Months Total
Investment Type:

U.S. Treasury Notes -$ 54,991$ -$ $ 3,792,106 $ 3,847,097 U.S. Government Agencies Obligations - - - 4,656,343 4,656,343 Medium-Term Corporate Notes 124,616 215,913 1,222,071 4,486,899 6,049,499 Foreign Bonds - - - 259,682 259,682 Total $ 124,616 $ 270,904 $ 1,222,071 $ 13,195,030 14,812,621 Non-Maturing Investments:

Pooled Cash and Accrued Income 2,175,746
Mutual Funds 15,216,559
Total Cash and Investments $ 32,204,926
58

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
The City and the Retirement System are participants in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are record ed on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mort gage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. On June 30, 2025, these investments matured in an average of 248 days.

The City is a participant in the Short-Term Fund and the Medium-Term Fund of the Investment Trust of California (CalTRUST), a joint powers authority and public agency established by its members under the provisions of Section 6509.7 of the California Government Code. Members and participants are limited to California public agencies. CalTRUST is governed by a Board of Trustees of seven Trustees, at least seventy-five percent of whom are from the participat ing agencies. The City reports its investment in CalTRUST at the fair value amount provided by CalT RUST, which is the same as the value of the pool shares. The balance is available for withdrawal on demand, and is based on the accounting records maintained by CalTRUST. Included in CalTRUST’s investment portfolio are: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or ot her indebtedness; federal agency or United States government sponsored enterprise obligations; ba nkers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medi um-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities.

CalTRUST’s Short-Term Fund has a target portfolio duration of 0 to 2 years and the Medium-Term Fund has a target portfolio duration of 1 to 3 years. On June 30, 2025, these investments in each Fund matured in an average of 296 days and 2.35 years, respectivel y. The investment in CalTRUST is valued based on the fair value factor provided by the CalTRUST, which is calculated as the average cost to net asset value per share of the Short-Term Fund or the Medium-Term Fund. At June 30, 2025, the fair value approximated the City’s cost.

The City, as a CAMP shareholder, may withdraw all or any portion of the funds in each CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for custom ary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in th e opinion of the CAMP trus tees, an emergency exists such that disposal of the CAMP poo l securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either with draw its request for that withdrawal or receive payment based on the net asse t value of the CAMP pool next determined after termination of the suspension of the right of withdrawal. At June 30, 2025, the fair value approximated the City’s cost. At June 30, 2025, these investments have an average maturity of 41 days. 59

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Credit Risk
Credit risk is the risk that an issuer of an invest ment will not fulfill its obligat ion to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2025 for each investment type as provided by Standard & Poor's and Moody's for the City's investments and for the Retirement System’s investments.

City and Fiscal Agents
Investment Type AAA / AAAm AA+ / AA / AA- AAf/AA-f A+ / A / A- BBB+ Total U.S. Government Agencies Obligations -$ 1,285,427$ -$ -$ -$ 1,285,427$ Medium-Term Corporate Notes - 3,095,487 - 11,688,817 1,036,575 15,820,879 Municipal Bonds 179,453 1,109,027 - - - 1,288,480 Negotiable Certificates of Deposit - 853,196 - 852,799 - 1,705,995 CAMP 140,305,219 - - - - 140,305,219 CalTrust - - 25,233,261 - - 25,233,262 Money Market Mutual Funds 1,070,969 - - - - 1,070,969 Totals 141,555,641$ 6,343,137$ 25,233,261$ 12,541,616$ 1,036,575$ 186,710,231 Exempt from credit rating disclosure:

U.S. Treasury Notes 44,468,130
Not rated:

Municipal Bonds 249,223 (1)
LAIF 138,236,160
Total Investments 369,663,744$
(1) Credit ratings listed above are based on ratings provided by Standard & Poor's (S&P). Municipal Bonds listed as "Not Rated" above have no rating by S&P, although they are rated as "Aa2" by Moody's and "N/A" by Fitch.

Retirement System Pension Trust Fund
Investment Type AAA/AAAm AA+/AA/AA- A+/A/A- BBB+/BBB/BBB- BB+/BB/BB- Total U.S. Government Agencies Obligations -$ 4,656,343$ -$ -$ -$ 4,656,343$ Medium-Term Corporate Notes 729,947 130,128 1,660,735 2,250,217 73,385 4,844,412 Foreign Bonds - - 35,504 152,506 - 188,010
Totals 729,947$ 4,786,471$ 1,696,239$ 2,402,723$ 73,385$ 9,688,765 Exempt from credit rating disclosure:

U.S. Treasury Notes 3,847,097
Not rated:

Medium-Term Corporate Notes 1,205,087 (1)
Foreign Bonds 71,672
Mutual Funds 15,216,559
Total Investments 30,029,180$
(1) Credit ratin gs listed above are based on ratings provided by Standard & Poor's (S&P). Medium-Term Corporate Notes and Municipal Bonds listed as "Not Rated" above have no rating by S&P, although are rated as "Aaa" and "Baa3" by Moody's. 60

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
Investments in the securities of any individual issuer, other than U. S. Treasury securities, that represent 5 percent or more of total investments are as follows at June 30, 2025:

Retirement System Pension Trust Fund
Fund Issuer Type of Investments Amount
Pension Trust Fund Federal Home Loan Mort gage Corporation U.S. Government A gencies 3,198,549$ Custodial Credit Risk
The custodial credit risk for deposits is the risk that the City will not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outsid e party. This risk is mitigated in that the City’s bank deposits are insured by Fe deral Depository Insurance Corporation (FDIC). 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 and securities lending transactions: The California Government Code requires that a financial institution secure deposits made by state or local government unit by pledging securities in an undivided collateral pool held by depository regulate
d under state law. The market value of the pledged
securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. As of June 30, 2025, the City’s balance in the financial institutions was $11,337,152 of that amount, $250,000 was covered by FDIC insurance, and $11,087,152 was covered by collateral held in the pledging bank’s trust department.

Fair Value Measurements
The City and the City’s Retirement Trust categorize th eir fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (L evel 3 measurements). The three leve ls of the fair value hierarchy are described as follows:

Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.

Level 2 — Inputs to the valu ation methodology include:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principall y from or corroborated by observable market data by correlation or other means.
61

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best informat ion available in the circumstance s and may include the City's own data.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

Deposits and withdrawals in governmental investment pools, such as LAIF and JPA Investment Pools are made on the basis of $1 and not fair value. Accordingly, the City’s pr oportionate share in these types of investments is uncategorized input not defined as a Level 1, Level 2, or Level 3 input.

The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2025. The methods described may produce a fair va lue calculation that may no t be indicative of net realizable value or reflective of fu ture fair values. City management believes its valuation methods are appropriate and consistent with other market par ticipants. The use of diffe rent methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The City’s treasury pool asset market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated. Non-negotiable FDIC-insured bank certificates of deposit are priced at par.

When available, quoted prices are used to determine fa ir value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.

For investments classified within Level 2 of the fair value hierarchy, the City's custodians generally uses a multi- dimensional relational model. Inputs to their pr icing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker- dealer quotes, issuer spreads and benchmark secur ities, among others. The City does not have any investments that are measured using Level 3 inputs.
62

CITY OF CONCORD JUNE 30, 2025
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2025, the City and the Retirement System have th e following recurring fair value measurements:

City and Fiscal Agents
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level Fair Value (Level 1) (Level 2) (Level 3) Debt securities:

U.S. Treasury Notes 44,468,130$ -$ 44,468,130$ -$ U.S. Government Agencies Obligations 1,285,427 - 1,285,427 - Medium-Term Corporate Notes 15,820,879 - 15,820,879 - Negotiable Certificates of Deposit 1,705,995 - 1,705,995 - Municipal Bonds 1,537,703 - 1,537,703 -
Total Investments Measured at Fair Value 64,818,134 -$ 64,818,134$ -$ Investments Measured at Net Asset Value Per Share:

CAMP 140,305,219
Investments Measured at Amortized Cost:

Money Market Mutual Funds 1,070,969
Not Subject to Fair Value Hierarchy:

LAIF 138,236,160
CalTrust 25,233,262
Cash deposits with banks and on hand 2,868,128
Total Cash and Investments 372,531,872$
Retirement System Pension Trust Fund
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level Fair Value (Level 1) (Level 2) (Level 3) Debt securities:

U.S. Treasury Notes 3,847,097$ 3,847,097$ -$ -$ U.S. Government Agencies Obligations 4,656,343 - 4,656,343 - Medium-Term Corporate Notes 6,049,499 - 6,049,499 - Foreign Bonds 259,682 - 259,682 -
Equity Securities:

Mutual Funds 15,216,559 15,216,559 - - Total Investments Measured at Fair Value 30,029,180 19,063,656$ 10,965,524$ -$ Not Subject to Fair Value Hierarchy:

Pooled Cash and Accrued Income 2,175,746
Total Cash and Investments 32,204,926$
63

CITY OF CONCORD JUNE 30, 2025
NOTE 4 – INTERFUND TRANSACTIONS
Internal Balances
Internal balances represent the net interfund receivables and payable remaining after the elimination of all such balances within governmental and business–type activities.

Current Interfund Balances
Current Interfund Balances arise out of short-term cash flow needs and are due from one fund to another, all of which are expected to be repaid in the normal course of business. At June 30, 2025, the interfund balances are:

Due To Other Funds Due from Other Funds Amount
Post-Retirement Healthcare Benefit
Internal Service Fund General Fund 2,859,682$
Long-Term Interfund Advances
At June 30, 2025, the funds below had made the following advances:

Amount of
Fund Receiving Advance Fund Making Advance Advance
General Fund Concord Housing Special Revenue Fund 1,155,011$ (a) Workers' Compensation Internal Service Fund 1,153,846 (b) General Projects
Capital Projects Fund General Fund 11,460,983 (c) Workers' Compensation Internal Service Fund 3,150,000 (d) Non-Major Enterprise Fund:

Golf Course Enterprise Fund General Fund 773,648 (e) 17,693,488$
(a) This General Fund advance was made during fiscal year 20 09-2010 to fund the retirement of $8.2 million of the 1995 Lease Revenue Bonds. The advance bears interest at the LAIF rate plus 0.5 percent to be paid on a quarterly basis. As a result of this nonrecurring long-term advance, the City is no longer obligated to pay 8.24 percent interest on the retired bonds. The General Fund began making repayments in fiscal year 2014-2015, with a final payment expected in fiscal year 2033 and will pay approximately $1.1 million in interest over the life of the repayment. (b) This General Fund advance was made during the fiscal year 2009-2010 to fund the retirement of $8.2 million of the 1995 Lease Revenue Bonds and bears no interest. The General Fund began making repayment in fiscal year 2014-2015.
64

CITY OF CONCORD JUNE 30, 2025
NOTE 4 – INTERFUND TRANSACTIONS (CONTINUED)
Long-Term Interfund Advances (Continued)
(c) The General Projects Fund loan of $10,930,983 was to the Local Reuse Authority for the Naval Weapons Station project. During fiscal year 2023-2024, an additional advance was made in the amount of $530,000. The advances bear interest at the LA IF rate and will be repaid with sale proceeds of undeveloped land.
(d) The General Projects Fund advance was to the Local Reuse Authority (LRA) to support reuse planning efforts for the former Naval Weapons Statio n. This loan will be repa id, with interest, from future proceeds as properties are sold.
(e) The Golf Enterprise Fund advance was made during fiscal years 2007 and 2013 and will be factored into the next 10-year budget plan and repaid as business improves within the regional golf market.

Transfers between funds
With Council approval, resources may be transferred from one City fund to another without a requirement for repayment. Transfers between funds during the fiscal year ended June 30, 2025, were as follows:

Amount
Fund Receiving Transfers Fund Making Transfers Purpose Transferred Major Funds:

General Fund Capital Projects - General Projects To Fund Operating Projects 29,756$ General Fund Capital Projects - General Projects To Fund Operating Projects 4,718 General Fund Capital Projects - General Projects To Fund Operating Projects 2,055,172 General Fund Capital Projects - Intergovernmental Fund To Fund Operating Projects 58,365 General Fund Special Revenue - Storm Water Management Fund To Fund Operating Projects 191,740 ARPA Special Revenue Fund Capital Projects - General Projects To Fund Capital Projects 51,673 General Projects Fund General Fund To Fund Capital Projects 1,411,754 General Projects Fund General Fund To Fund Capital Projects 144 General Projects Fund Capital Projects - 2021 COPS Projects To Fund Capital Projects 65,028 General Projects Fund Capital Projects - 2021 COPS Projects To Fund Operating Projects 576,847 General Projects Fund Special Revenue - General Plan Reimbursement Fee Fund To Fund Operating Projects 22,248 General Projects Fund Capital Projects - Intergovernmental Fund To Fund Capital Projects 952 General Projects Fund Capital Projects - Intergovernmental Fund To Fund Capital Projects 222 General Projects Fund Capital Projects - Measure V Projects Fund To Fund Capital Projects 477 Special Revenue Fund:

Housing and Community Services Fund Sp ecial Revenue - Concord Housing Fund To Fund Operating Projects 334,957 Housing and Community Services Fund Spec ial Revenue - Cannabis Community Benefit Fund To Fund Capital Projects 26,449 Storm Water Management Fund General Fund To Fund Street Sweeping 492,384 General Plan Reimbursement Fee Fund Capital Projects - General Projects To Fund Operating Projects 93,394 Debt Service Funds:

Energy Lease Fund General Fund To Fund Debt Service 328,433 Energy Lease Fund Special Revenue - Maintenance Districts Fund To Fund Debt Service 384,736 Energy Lease Fund Internal Service - Building Maintenance Fund To Fund Debt Service 225,211 Infrastructure Lease Agreement Fund General Fund To Fund Debt Service 7,498,300 Capital Projects:

Measure V Projects Fund General Fund To Fund Capital Projects 7,856,000 Measure V Projects Fund Capital Projects - General Projects To Fund Capital Projects 2,500 Measure V Projects Fund Capital Projects - General Projects To Fund Capital Projects 2,500 Measure V Projects Fund Capital Projects - 2021 COPS Projects To Fund Capital Projects 707,700 Internal Service Funds:

Information Technology Replacement Fund Gene ral Fund To Fund Operating Projects 65,979 Building Maintenance Fund Capital Projects - 2021 COPS Projects To Fund Capital Projects 521,541 Enterprise Funds:

Sewer Fund Capital Projects - 2021 COPS Projects To Fund Capital Projects 1,073 23,010,253$
65

CITY OF CONCORD JUNE 30, 2025
NOTE 5 – LOANS AND NOTES RECEIVABLE
The City and former Redevelopment Agency (the Ag ency) engaged in programs designed to encourage business enterprises or construction or improvement in low-to-moderate income housing or other projects.

Under these programs, grants or loans are provided under favorable term s to businesses, home-owners or developers who agree to spend these funds in accordance with the City 's terms. Although these loans and notes are expected to be repaid in full, their balan ce has been offset by unavailable revenue. With the dissolution of the Redevelopment Ag ency, the City agreed to become the Successor Agency and oversee the dissolution. The Successor Agency subsequently assigned the assets of the Low and Moderate Income Housing Fund to the City, including the loans and notes. The loans and notes are not expected to be collected during fiscal year 2026. These loans and notes were comprised of the following at June 30, 2025:

Concord Housing Fund
Downtown Revitalization and
Low and Moderate Income Housing Rehabilitation 5,760,839$ Galindo 7,800,000
Sunset Pines 3,540,000
Coral Court 3,100,000
Concord Plaza Tower 3,896,618
Virginia Lane 4,795,858
Lakeside Apartments 2,391,500
Camara Circle 2,650,000
Total Concord Housing Fund 33,934,815
Non-major Governmental Funds
Housing Conservation 714,356
Housing Assistance 50,000
Virginia Lane 473,192
Lakeside Apartments 325,445
First-time Homebuyers 280,000
Total Non-major Governmental Funds 1,842,993
Total Loans and Notes Receivable 35,777,808$
Downtown Revitalization and Low and Moderate Income Housing Rehabilitation Low and no interest loans were made by the form er Redevelopment Agency to provide businesses assistance for rehabilitating buildings in the downto wn area and to businesses or individuals for the rehabilitation of housing within the City of Concord owned and/or occupied by pers ons of low and moderate
income.

Galindo
On June 11, 2019, the City ente red into a $7,800,000 loan agreem ent with Galindo L.P. for the development of 62 affordable housing units and the acquisition of the associated property. The outstanding balance of the loan bears interest at a rate of 3 perc ent per annum. The loan is re payable upon the sale of the development or 57 years after the date of execution of the loan. At June 30, 2025, the loan receivable balance was $7,800,000.
66

CITY OF CONCORD JUNE 30, 2025
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
Sunset Pines
On June 30, 2024, the City entered into a loan agreement with Eden Sunset Pine s LLC in the amount of $3,540,000 for the acquisition of property and the development of a 69 unit apartment complex. The outstanding balance of the loan bears interest at a rate of 3 percent per annum. The loan is repayable from residual receipts and is due in full upon the sale of the development or 55 years after the date of execution of the loan. At June 30, 2025, the loan receivable balance was $3,540,000.

Coral Court
On June 30, 2024, the City entered into a loan agreement with Eden Coral Court LLC in the amount of $3,100,000 for the acquisition of property and the development of a 47 unit apartment complex. The outstanding balance of the loan bears interest at a rate of 3 percent per annum. The loan is repayable from residual receipts and is due in full upon the sale of the development or 55 years after the date of execution of the loan. At June 30, 2025, the loan receivable balance was $3,100,000.

Concord Plaza Tower
In 1985, the City and the Former Redevelopment Agency of the City of Concord entered into various loan agreements to effectuate the development of the Co ncord Plaza Tower, a 96 unit low/moderate income senior housing project. On July 22, 2014, council ad opted Resolution 14-60 authorizing the restructure of the loans with Concord Plaza Tower, Inc. over a 55 year period at a 3% simple interest rate, which preserved the affordability of the project for low income seniors through 2069. The restructured loan requires annual payments. The outstanding loan receivable balance as of June 30, 2025 was $3,896,618.

Virginia Lane
In June 1999, the City and the former Redevelopmen t Agency entered into a $1,984,198 loan agreement with Virginia Lane Limited Partnership for the rehabilitation of Golden Glen and Maplewood Apartments. An additional loan of $4 50,000 was made in fiscal year 2007 which brought the loan total to $2,434,198. Of the $450,000, $100 ,000 was funded by Community Development Block Grant funds and $350,000 was funded by California Housing Finance Ag ency funds. The outstand ing balance of the loan bears interest at a rate of 3 percent per annum. The repayments on the loan sha ll be made from residual receipts. On July 15, 2016, the City amended and restated the promissory note of $2,434,198 to $3,470,394.

The City also issued a new promissory note of $1,300,000 on July 15, 2016. The City expects both loans to be repaid on July 15, 2071. At June 30, 2025, the loan receivable balance was $5,269,050.

Lakeside Apartments
The City and the Agency entered into a $3,433,945 loan agreement with Lakeside Apartments, L.P. for the acquisition and rehabilitation of Lakeside Apartments. An additional loan of $283,000 was made in fiscal year 2007 which brought the loan total to $3,716,945. Of the $283,000, $110,000 was funded by Community Development Block Grants, $93,000 was funded by Redevelopment Agency, and $80,000 was funded by California State EAGR funds. The outstanding ba lance of the loan bears interest at a rate of 1 percent per annum. The City expects the loan to be repaid on November 5, 2058. At June 30, 2025, the loan receivable balance was $2,716,945.
67

CITY OF CONCORD JUNE 30, 2025
NOTE 5 – LOANS AND NOTES RECEIVABLE (CONTINUED)
Camara Circle
In 2000, the City and the Former Re development Agency of the City of Concord entered into two loan agreements for $2,650,000 for the acquisition of eleven properties, consisting of 52 apartment units on Camara Circle. The agreement was funded through the former Redevelopment Housing Set-Aside Fund, now known as the Concord Housing Fund. The loan is to be paid in full May 2056, bearing 3% simple interest. The outstanding loan receivable at June 30, 2025, was $2,650,000.

Housing Conservation
This program involves loans made to rehabilitate housing within the City of Concord which are funded by Community Development Block Grant and former Redevelopment Agency monies. The loans bear interest ranging from 0-3 percent with due dates varying from October 2014 through the sa le or transfer of the property. At June 30, 2025, the loan receivable balance was $714,356.

Housing Assistance
This program provides housing assistance to Concor d residents through a variety of housing programs.

These loans bear no interest and principal payment is due upon sale or transfer of the property. At June 30, 2025, the loan receivable balance was $50,000.

First-Time Homebuyers
The First Time Homebuyer Program provides eligible first-time homebuyers with direct loans that enable the purchase of housing at an affordable cost on the open market. At June 30, 2025, the loan receivable balance was $280,000.
68

CITY OF CONCORD JUNE 30, 2025
NOTE 6 - CAPITAL ASSETS
Capital asset transactions and balances comprise the following at June 30, 2025:

Balance at Balance at
June 30, 2024 Additions Retirements Transfers June 30, 2025 Governmental Activities
Capital Assets Not Being Depreciated:

Land 26,379,019$ -$ -$ -$ 26,379,019$
Construction in Progress 13,953,856 10,655,634 - (3,895,060) 20,714,430 Total Capital Assets Not Being Depreciated 40,332,875 10,655,634 - (3,895,060) 47,093,449 Capital Assets Being Depreciated:

Ground Improvements 28,063,475 - - 810,226 28,873,701 Buildings and Improvements 81,864,670 - - 933,006 82,797,676 Right to Use Leased Buildings and Improvements - 162,769 - - 162,769 Right to Use Leased Equipment 639,413 - - - 639,413 Right to Use Subscription Asset 1,909,056 2,646,814 (745,184) - 3,810,686 Machinery and Equipment 26,750,991 71,572 - 2,121,553 28,944,116 Vehicles 15,587,626 1,649,966 (751,600) 30,275 16,516,267 Streets 555,304,542 50,717,537 - - 606,022,079 Sidewalks 62,761,616 715,489 - - 63,477,105 Storm Drains/Catch Basins 444,815,428 139,640 - - 444,955,068 Street Lights 5,936,552 502,467 - - 6,439,019 Traffic Signals 45,841,099 4,140,552 - - 49,981,651 Total Capital Assets Being Depreciated 1,269,474,468 60,746,806 (1,496,784) 3,895,060 1,332,619,550 Less Accumulated Depreciation For:

Ground Improvements (15,205,484) (699,096) - - (15,904,580) Buildings and Improvements (60,546,497) (2,323,083) - - (62,869,580) Right to Use Leased Bu
ildings and Improvements - (54,256) - - (54,256) Right to Use Leased Equipment (278,855) (159,853) - - (438,708) Right to Use Subscription Asset (1,146,486) (859,993) 745,184 - (1,261,295) Machinery and Equipment (24,806,349) (1,188,333) - - (25,994,682) Vehicles (13,528,274) (1,236,827) 751,600 - (14,013,501) Streets (411,920,660) (19,711,235) - - (431,631,895) Sidewalks (34,374,101) (1,269,542) - - (35,643,643) Storm Drains/Catch Basins (144,987,562) (4,449,551) - - (149,437,113) Street Lights (2,691,709) (206,260) - - (2,897,969) Traffic Signals (29,100,866) (1,597,046) - - (30,697,912) Total Accumulated Depreciation (738,586,843) (33,755,075) 1,496,784 - (770,845,134) Capital Assets Being Depreciated, Net 530,887,625 26,991,731 - 3,895,060 561,774,416 Governmental Activities Capital Assets, Net 571,220,500$ 37,647,365$ -$ -$ 608,867,865$ Balance at Balance at
June 30, 2024 Additions Retirements Transfers June 30, 2025 Business-Type Activities
Capital Assets Not Being Depreciated:

Land 395,182$ -$ -$ -$ 395,182$
Construction in Progress 29,568,346 12,450,239 (4,809) (9,120,293) 32,893,483 Total Capital Assets Not Being Depreciated 29,963,528 12,450,239 (4,809) (9,120,293) 33,288,665 Capital Assets Being Depreciated:

Buildings and Improvements 8,708,986 - - - 8,708,986 Machinery and Equipment 530,493 - - - 530,493
Sewer Lines 219,772,435 - - 9,120,293 228,892,728 Total Capital Assets Being Depreciated 229,011,914 - - 9,120,293 238,132,207 Less Accumulated Depreciation For:

Buildings and Improvements (7,440,214) (137,685) - - (7,577,899) Machinery and Equipment (386,794) (23,936) - - (410,730) Sewer Lines (189,093,801) (4,577,883) - - (193,671,684) Total Accumulated Depreciation (196,920,809) (4,739,504) - - (201,660,313) Capital Assets Being Depreciated, Net 32,091,105 (4,739,504) - 9,120,293 36,471,894 Business-Type Activities Capital Assets, Net 62,054,633$ 7,710,735$ (4,809)$ -$ 69,760,559$ 69

CITY OF CONCORD JUNE 30, 2025
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation Allocation – Governmental Activities
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program was as follows:

Governmental Activities
General Government 27,789,171$
Public Safety 283,705
Public Works 357,668
Parks and Recreation Services 1,002,846
Internal Service Funds 4,321,685
Total 33,755,075$
Business-Type Activities
Sewer 4,604,326$
Golf Course 135,178
Total 4,739,504$
70

CITY OF CONCORD JUNE 30, 2025
NOTE 7 – LONG-TERM DEBT
Description and Activity
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

The City's governmental activities long-term debt is recorded only in the government-wide financial statements. This debt will be repaid only out of governmental funds but is not accounted for in these funds because this debt does not require an appropriation or expenditure in this accounting period.

In governmental fund types, debt discounts and issu ance costs are recognized in the current period.

Debt discounts and issuance costs incurred by proprieta ry fund types are deferred and amortized over the term of the debt using the bonds-outstanding method, which approximates the effective interest method.

The City's debt issues, and compensated absence transactions are summarized on the next page and discussed in detail thereafter.

Current Year Transactions and Balances
Balance as of
Repayment June 30, 2024 Balance as of Current
Source (As Adjusted) Additions Retirements June 30, 2025 Portion Governmental Activities Debt:
2021 Certificates of Participation,

2.00-4.00% due 04/01/41 (a) 97,380,000$ -$ 4,185,000$ 93,195,000$ 4,350,000$ Plus premium on bonds 12,994,110 - 764,359 12,229,751 - Direct Placement:

Lease Purchase Agreement

2.78% due 12/01/26 (b) 2,315,000 - 880,000 1,435,000 945,000 Lease Financing:

Motorola Lease Agreement due 11/15/2026 (c) 1,130,722 - 366,854 763,868 376,817 Subtotal 113,819,832 6,196,213 1 07,623,619 5,671,817
Compensated Absences (d) 13,326,866 811,740 * - 14,138,606 5,170,816 Total Governmental Activity Debt 127,146,698$ 811,740$ 6,196,213$ 121,762,225$ 10,842,633$ Business-type Activities Debt:
2012 - Wastewater Revenue Refunding Bonds,

1.50-4.00% due 02/01/29 (e) 3,450,000$ -$ 655,000$ 2,795,000$ 670,000$ 2018 - Wastewater Revenue Refunding Bonds,

1.25-3.24% due 2/01/32 (e) 5,110,000 - 540,000 4,570,000 565,000 Plus premium on refunding bonds 560,125 - 70,015 490,110 - Subtotal 9,120,125 - 1,265,015 7,855,110 1,235,000 Compensated Absences (d) 179,138 26,437 * - 205,575 177,721 Total Business-Type Activity Debt 9,299,263$ 26,437$ 1,265,015$ 8,060,685$ 1,412,721$ Repayments on the above debt are made from the following sources:
(a) Lease revenue received from the City’s General Fund revenues. (b) The City and the Public Property Financing Corpor ation entered into a direct borrowing Refunding Lease Agreement in the amount of $6,820,000 at the interest rate of 2.78 percent. The proceeds from the Agreement were used to retire the 2011 Equipment Lease/Purchase Agreement. (c) Operating revenues available for lease payment in the Information Technology Replacement Internal Service Fund.
(d) General Fund revenues.
(e) Operating revenues received by the Sewer Enterprise Fund. * Net Change
71

CITY OF CONCORD JUNE 30, 2025
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Debt Service Requirements
Debt service and capitalized lease requirements are shown below for all long-term debt:

For the Year
Ending June 30, Principal Interest Principal Interest Principal Interest 2026 4,350,000$ 3,145,900$ 1,321,817$ 54,243$ 5,671,817$ 3,200,143$ 2027 4,525,000 2,971,900 877,051 17,322 5,402,051 2,989,222 2028 4,705,000 2,790,900 - - 4,705,000 2,790,900 2029 4,895,000 2,602,700 - - 4,895,000 2,602,700 2030 5,090,000 2,406,900 - - 5,090,000 2,406,900 2031-2035 28,645,000 8,840,400 - - 28,645,000 8,840,400 2036-2040 33,740,000 3,747,725 - - 33,740,000 3,747,725 2041 7,245,000 252,394 - - 7,245,000 252,394 Total Requirements 93,195,000 26,758,819$ 2,198,868$ 71,565$ 95,393,868 26,830,384$ Plus unamortized premium 12,229,751 12,229,751
Total 105,424,751$ 107,623,619$
Total
Governmental Activities
Certificates of Participation Not es and Leases from Placement For the Year
Ending June 30, Principal Interest
2026 1,235,000$ 282,126$
2027 1,280,000 235,450
2028 1,330,000 185,250
2029 1,380,000 132,850
2030 680,000 84,950
2031-2032 1,460,000 73,300
Total Requirements 7,365,000 993,926
Plus unamortized premium 490,110 -
Total 7,855,110$ 993,926$
Business-Type Activities
The City's bond indentures contain significant limitations and restrict ions regarding annual debt service requirements, maintenance of and flow of monies through various restricted accounts and minimum revenue bond coverage. City management believes the City is in compliance with all such indenture requirements.

Revenue Bonds
On September 18, 2012, the City issued Wastewater Revenue Refunding Bonds, Series 2012 in the original principal amount of $10,080,000 at interest rates that range from 1.50 percent to 4.00 percent to provide for a refunding of the City's outstanding 2004 Certificat es of Participation Wastewater System Improvement Bonds. Principal payments are due annually on February 1, with interest payments payable semi-annually on August 1 and February 1 through February 1, 2 029. Repayment of these bond s is from a pledge of revenue from the Sewer Enterprise Fund. As of June 30, 2025, the principal balance outstanding was $2,795,000.
72

CITY OF CONCORD JUNE 30, 2025
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Revenue Bonds (Continued)
On February 27, 2018, the City issued Wastewater Revenue Refunding Bonds, Series 2018 in the original principal amount of $7,920,000 at interest rates that range from 2.00 percent to 5.00 percent to provide for a refunding of the City's outstanding 2007 Certificat es of Participation Wastewater System Improvement Bonds. Principal payments are paid annually on February 1. Interest is paid semi-annually on August 1 and February 1, through 2032. Repayment of these bonds is from a pledge of revenue from the Sewer Enterprise Fund. As of June 30, 2025, the principal balance outstanding was $4,570,000.

In the event of default on the 2012 and 2018 Bonds, upon notice in writing to the City, the principal and accrued interest of all bonds outstanding will be due and payable immediately.

The City has pledged future wastewater customer reve nues, net of specified operating expenses, to repay the 2012 and 2018 Bonds through 2032. The Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $8,358,926. The Municipal Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $1,522,137 and $25,916,600, respectively.

Certificates of Participation
On April 28, 2021, the City through the Public Property Financing Corporation of California (Corporation) issued the 2021 Capital Improvement Project Certificates of Participation in the original principal amount of $109,480,000 at interest rates that range from 2.00 percent to 4.00 percent to finance the cost of various capital projects and to prepay the 2015 Lease Revenue Financing Agreement. The Bonds are collateralized by revenue received from the City by the Corporation under a lease ag reement and by the Corporation’s interest in the Concord Pavilion and the City’s Police Station through a site and facilities lease. Principal payments are paid annually on Apr il 1. Interest is paid semi-annua lly on October 1 and April 1, through 2041. Repayment of these bonds is from a pledge of lease payments from the City’s General Fund. As of June 30, 2025, the principal balance outstanding was $93,195,000.

In the event of default, the Corporation can use any and all remedies available, however there is no right to accelerate the lease payments or to declare any lease payments immediately due and payable. The City shall continue to remain liable for the payment of the lease payments and any damages for breach of the lease agreement and the performance of all conditions contained in the lease agreement.

Lease Purchase Agreement
On February 21, 2018, the City a nd the Public Property Financing Co rporation entered into a direct placement Refunding Lease Agreement in the amount of $6,820,000 at the interest rate of 2.78%. The proceeds from the Agreement were used to retire the 2011 Equipment Lease/Purchase Agreement. Principal and interest payments are paid semi-annually on Ju ne 1 and December 1, through 2026. As of June 30, 2025, the principal balance outstanding is $1,435,000.

In the event of default, the Corpor ation may exercise any and all remedi es available under the law or the agreement. Those remedies include enforcement of payments without termination, termination of the lease, proceedings at law or in equity, remedies under the site and facility lease. 73

CITY OF CONCORD JUNE 30, 2025
NOTE 7 – LONG-TERM DEBT (CONTINUED)
Lease Financing
On October 16, 2019, the City entered into a direct placement lease agreement in the amount of $2,503,678 with Motorola Solutions, Inc., for the purchase of radio equipment. Th e City agreed to pay the lease in annual payments of $397,561 for seven years. Since the lease is in essence a financing agreement, the cost of the equipment and the amount of th e lease has been included in the Ci ty's financial statements. As of June 30, 2025, the principal debt outstanding on the lease was $763,868.

In the event of default, the lessor may exercise any of the following options: by written notice declare all amounts due and payable under the lease, discontinue the use of equipment and removal and return of the equipment to the lessor.

NOTE 8 – FUND BALANCES
Detailed classifications of the City's Governmental Fund Balances, as of June 30, 2025, are below:

Major Funds
Special Revenue Funds Capital Projects Funds Other
General Concord General 2021 COP Governmental
Fund Balance Classifications Fund Housing ARPA Projects Projects Funds Total Nonspendable:

Items not in spendable form:

Advance 12,234,631$ -$ -$ -$ -$ -$ 12,234,631$ Leases 328,780 - - - - - 328,780 Total Nonspendable
Fund Balances 12,563,411 - - - - - 12,563,411 Restricted for:

Debt Service - - - - - 56,329 56,329 Capital Projects - - - - 47,122,418 10,876,656 57,999,074 Housing - 4,209,127 - - - 2,800,232 7,009,359 Health Care District - - - - - 770,487 770,487 Transportation - - - - - 9,529,943 9,529,943 Development Services - - - - - 24,241,911 24,241,911 Asset Forfeiture - - - - - 456,583 456,583 Tree Maintenance - - - - - 163,070 163,070 Cannabis Community Benefit - - - - - 647,522 647,522 Public Safety 1,680,247 - - - - 18,949 1,699,196 Other 42,384 - - - - - 42,384 Total Restricted Fund Balances 1,722,631 4,209,127 - - 47,122,418 49,561,682 102,615,858 Assigned to:

Capital Projects - - - - - 34,787,772 34,787,772 Contracts 1,376,268 - - - - - 1,376,268 Senior Center 98,532 - - - - - 98,532 Music and Market Event 505,104 - - - - - 505,104 Building Deposits 1,239,572 - - - - - 1,239,572 Fiscal Stability 11,200,000 - - - - - 11,200,000 Other 88,367 - - - - - 88,367 Total Assigned Fund Balances 14,507,843 - - - - 34,787,772 49,295,615 Unassigned:

General Fund 44,389,942 - - - - - 44,389,942 Other Governmental Fund Deficit Residuals - - - (3,742,143) - (553) (3,742,696) Total Unassigned Fund Balances 44,389,942 - - (3,742,143) - (553) 40,647,246 Total Fund Balances 73,183,827$ 4,209,127$ -$ (3,742,143)$ 47,122,418$ 84,348,901$ 205,122,130$ 74

CITY OF CONCORD JUNE 30, 2025
NOTE 9 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2025 exceeded the appropriations in the following funds:

Expenditures in Excess of Appropriations Budget Actual Variance General Fund
Public Safety 76,924,381$ 78,883,698$ (1,959,317)$ Debt Service:

Principal - 53,182 (53,182)
Interest and fiscal charges 412,600 497,622 (85,022) Special Revenue Funds:

Tree Fund - 3,074 (3,074)
Opiod Settlement Fund 100,000 100,117 (117)
The excess expenditures in all departments and funds noted above were covered by revenue received during the fiscal year or available resources within each fund.

Deficit Fund Equity
The General Projects Capital Projects Fund had deficit fund balance of $3,742,143 which is expected to be eliminated by future revenues. The Assessment Distri cts Debt Service Fund had deficit fund balance of $553 which is expected to be el iminated by future revenues. In addition, the Compensated Absences Internal Service Fund had deficit net position of $12,962,531, which is expected to be eliminated by future cost reimbursements from City departments.

NOTE 10 – CITY OF CONCOR

D RETIREMENT SYSTEM PLAN
Plan Description and Employees Covered
The City of Concord Retirement System Plan (the pl an) is a closed plan and is a single employer defined benefit pension plan covering all full-time employees of the City retired prior to June 28, 1999 or who left the employment of the City eligible for a pension. Participants are divided into two primary groups for coverage: general employees and police employees. Membership in the Retirement System comprised the following at June 30, 2025:

CCRS
Inactives currently receiving benefits 195
Inactives entitled to but not yet receiving benefits 14 Active employees -
Total 209
On June 21, 1993, the City converted to the Public Employees Retirement System (PERS) as described in Note 12.
75

CITY OF CONCORD JUNE 30, 2025
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Eligibility, administration, actuarial interest rates an d certain other tasks are the responsibility of the Retirement Board. The Retirement Board consists of eight members, selected as follows: Two members appointed by City Manager, Director of Human Reso urces, Director of Finance and one representative from each of the four employee organizations. The Plan does not issue separate financial statements.

During the year ended June 30, 1999, $56,300,000 was transferred from the Plan to PERS to purchase prior years' service credit for its active vested employees.

Benefits Provided
The plan provides retirement and death benefits fo r general and police employees as well as disability benefits for police employees. General employees are el igible for retirement benefits at age 55, provided the employee has completed 20 years of service or has accumulated cont ributions in excess of $500 and was employed before June 30, 1990 or has completed 5 years of service and was terminated after July 1, 1990. Sworn police employees are eligible for retirement at age 50, provided the employee has completed 20 years of service or has accumulated contributions exceeding $500. Retirement benefits are determined based on the employee's length of service, highest on e-year compensation upon retirement, and age at retirement.

Contributions
Prior to June 21, 1993, contributions were made to the Plan by both the City and the employee participants.

City contributions were actuarially determined annually to provide the Pl an with assets sufficient to pay basic benefits not provided for by employees' contributions. All general employees were required to contribute 6 percent, and all police employees were requ ired to contribute 8 percent of their base salary (decreased by a Social Security allowance) to the Plan. The City is funding the Unfunded Actuarial Accrued Liability with annual contributions from the General Fund.

The City contributed 4 percent to 8 percent of this percentage on behalf of general employees, depending upon job classification, and all of the contribution for sworn police employees.

The City maintains a program of death and disability benefits financed wholly by employer premium payments under a group term life insurance policy and group long-term disability insurance policy.

The pension liability was determined as part of an actuarial valuation at June 30, 2024. Significant actuarial assumptions used in determining the pension liability include: (a) a rate of return on the investment of present and future assets of 5.50 percent per year co mpounded annually, (b) inflation rate of 2.50 percent (c) annual post-employment increases at 5.25% per cent per year. Required contributions are determined using the entry age normal actuarial cost method and are made on a level dollar basis. The plan is amortized using the CalPERS Mortality Table on a 11 year closed basis. The contribution amounts are established and may be amended by the City Council.

Rate of Return
For the year ended June 30, 2025, the annual money-weig hted rate of return on pension plan investments, net of pension plan investment expense, was 9.61. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 76

CITY OF CONCORD JUNE 30, 2025
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Net Pension Liability
The City’s net pension liability was measured as of Ju ne 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2024 and rolled forward to June 30, 2025 using standard update procedures.

Actuarial Assumptions – The total pension liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions:

CCRS
Valuation Date June 30, 2024
Measurement Date June 30, 2025
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 5.50% at June 30, 2025 and June 30, 2024
Investment Rate of Return 5.50% at June 30, 2025 and June 30, 2024 (1) General Inflation 2.50% annually
COLA 2.00% per annum
Salary Scale Not Applicable
Mortality Improvement Mortality projected fully generational with Scale MP-2021 Retirement Age 100% at age 59 for General and 54 for Police (1) Net of pension plan investme nt expenses, including inflation Mortality rates were based on the CalPERS 2000-2019 Experience Study fully generational improvement projected based on Scale MP-2021.

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

The table below reflects geometric average real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These geometric rates of return are net of administrative expenses.

Asset Class Target Allocation
Expected Real
Rate of Return
Global Equity 50.00% 4.56%
Fixed Income 45.00% 0.78%
Cash 5.00% -0.50%
Total 100.00%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 5.50%
77

CITY OF CONCORD JUNE 30, 2025
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Discount Rate – The discount rate used to measure the total pension liability was 5.50 percent for the plan.

The project of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City ’s contributions will be made at rates equal to the difference between actuarially determined contri bution rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to a ll periods of projected benefit payments to determine the total pension liability.

Changes in the Net Pension Liability
The changes in the net pension liability for the plan are as follows:

CCRS Plan
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2024 48,120,271$ 31,927,747$ 16,192,524$ Changes in the year:

Interest on the total pension liability 2,512,207 - 2,512,207 Differences between actual and expected experience (1,548,284) - (1,548,284) Changes in assumptions - - -
Contribution - employer - 2,370,000 (2,370,000)
Contribution - employees - - -
Net investment income - 2,993,020 (2,993,020)
Administrative expenses - (177,448) 177,448
Benefit payments, including refunds of employee contributions (4,908,393) (4,908,393) - Net changes (3,944,470) 277,179 (4,221,649) Balance at June 30, 2025 44,175,801$ 32,204,926$ 11,970,875$ Plan fiduciary net position as a percentage of the total pension liability 72.9% Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City, calculated using th e discount rate of 5.50 percent as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage-point lower or 1- percentage-point higher than the current rate.

CCRS Plan
1% Decrease
Net Pension Liability 15,251,929$
Current Discount Rate
Net Pension Liability 11,970,875$
1% Increase
Net Pension Liability 9,088,973$
78

CITY OF CONCORD JUNE 30, 2025
NOTE 10 – CITY OF CONCORD RETIREMENT SYSTEM PLAN (CONTINUED) Pension expenses and deferred outflows/inflows of resources related to pensions For the fiscal year ending June 30, 2025, the City r ecognized pension expense of ($672,755). At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

CCRS Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and actual earnings
on plan investm ents -$ 834,975$
Total -$ 834,975$
Amounts reported as deferred outflows and deferred in flows of resources related to pensions will be recognized in future pension expense as follows:

CCRS Plan
Y ear Ended Annual
June 30 Am ortization
2026 486,985$
2027 (538,071)
2028 (513,034)
2029 (270,855)
Total (834,975)$
NOTE 11 – CITY OF CONCORD EARLY RETIREMENT PLANS
Plan Description and Provisions
On September 1, 2009, the City adopted a sole employer defined benefit plan to provide supplemental retirement benefit payments to elig ible employees in addition to the benefit payments the employees will receive from the California Public Employees Retirement System (CalPERS).

The City joined Public Agency Retirement Servic es (PARS) and participates in two plans, the Supplementary Retirement Plan and the Excess Benefit Plan. The Excess Benefit Plan consists of the highly compensated members and the Supplementary Plan includes all other eligible employees. To be eligible to participate in the plan the employee must have been classified as a Miscellaneous or Safety employee of the City as of June 1, 2009, be at least 50 years of age as of September 1, 2009, have completed as least 5 years of employment with the City as of September 1, 2009, have terminated employment with the City on or before August 31, 2009, have a pplied for benefits under this plan and must have concurrently retired under CalPERS on or before September 1, 2009 and remains in retired status under CalPERS. A member is considered fully vested upon meeting the eligibilit y requirements listed above. Benefits payments are based on 7 percent of an employee's annual base pay as of June 1, 2009.

As of June 30, 2025, there were 11
members participating in these plans.
79

CITY OF CONCORD JUNE 30, 2025
NOTE 11 – CITY OF CONCORD EARLY RETIREMENT PLANS (CONTINUED) Contribution Requirements
The City established a plan within the PARS Trust. The cost of funding the Plan including management fees is roughly equivalent to one year of an employ ee's salary for each participating employee. The City funded the Plan over a period of 5 years, choosing to buy annuities to fund the Plan, and self-fund. The City used General Fund salary savings to fund the Plan. The Supplementary Retirement Plan was fully funded in September 2013. The Excess Benefit Plan was fully funded during the year ended June 30, 2024. As of June 30, 2025, both plans remained fully funded.

NOTE 12 – PENSION PLAN
CalPERS Safety and Miscellaneous Employees’ Pension Plans Plan Description
On June 21, 1993, the City joined the California Public Employees Retirement System (CalPERS), an agent multiple-employer public employee retirement syst em which acts as a common investment and administrative agent for participating member employers.

The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple- employer defined benefit public employee retiremen t system that acts as a common investment and administrative agent for various local and state governm ental agencies within the State of California. The City’s Safety and Miscellaneous Plans are part of the Public Agency portion of CalPERS. The benefits for the public agencies are established by contract with CalPERS in accordance with the provisions of the Public Employees Retirement Law. CalPERS issues a publicly available financial report that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at https://www.calpers.ca.gov.

The City joined PERS on a prospective basis and participates in two plans, the Safety (Police) Employees Plan and the Miscellaneous Employees Plan. All qu alified permanent and probationary employees are eligible to participate. CalPERS provides retirem ent and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. The City's employees participate in the separate Safety (police) and Miscellaneous (all other) Employee Plans.

Benefit provisions under both Plans are established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full time employment. Fund ing contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS; the City must contribute these amounts.
80

CITY OF CONCORD JUNE 30, 2025
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Benefits Provided
The benefits in effect as of June 30, 2025, are summarized as follows:

Miscellaneous
Hire date
Classic Prior to
November 29, 2010
Classic On or after
November 29, 2010
and Prior to January
1, 2013
PEPRA On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthl y for life monthl y for life Retirement age 50 - 55 50 - 63 52 - 67

2.0% - 2.50% 1.426% - 2.418% 1.0% - 2.5%
Required employee contribution rates 8.00% 7.00% 7.25%
Required employer contribution rates (1) 11.39% 11.39% 11.39% Monthly benefits, as a % of eligible compensation
Safety
Hire date
Classic Prior to
January 1, 2013
PEPRA On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthl y for life
Retirement age 50 50 - 57

3.0% 2.0% - 2.7%
Required employee contribution rates 9.0% 11.75%
Required employer contribution rates (1) 21.80% 21.80%
(1) Rates represented blended contribution rates,
from 6.30.22 Valuation
Monthly benefits, as a % of eligible compensation
Beginning in fiscal year 2016, Ca lPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans for the year ende d June 30, 2025 were $8,017,315 and $11,133,917 respectively, which were made under the lump sum payment option. In addition, the City made an additional contributions of $268,109 and $372,331 toward the unfunded liability of the Miscellaneous Plan and Safety Plan, respectively, during the year ended June 30, 2025. 81

CITY OF CONCORD JUNE 30, 2025
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Employees Covered
The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2023 and measurement date of June 30, 2024:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 525 225 Inactive employees entitled to but not yet receiving benefits 477 67 Active employees 248 133
Total 1,250 425
Contributions
Section 20814(c) of the Californi a Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determin ed on an annual basis by the actuary and shall be effective on the July 1 following no tice of a change in the rate. Fundin g contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Net Pension Liability
The City’s net pension liability for each plan is meas ured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard
update procedures. A summary of principal assumptions and methods us ed to determine the net pension liability is shown below.
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CITY OF CONCORD JUNE 30, 2025
NOTE 12 – PENSION PLAN (CONTINUED)
CalPERS Safety and Miscellaneous Employees’ Pension Plans (Continued) Actuarial Assumptions – The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

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

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.90% (2)
Mortality
Derived using CalPERS
Membership Data for all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or

2.30% until Purchasing Power
Protection Allowance floor on
Purchasing Power applies, 2.30%
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) 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 improvements 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.

The underlying mortality assumptions and all other actua rial assumptions used in the June 30, 2023 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website at www.calpers.ca.gov.

Discount Rate – The discount rate used to measure the total pension liability for each Plan was 6.90%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employe rs will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members for all plans in the PERF.

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 for each Plan.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 83