CITY OF CORNING
CITY COUNCIL
REGULAR MEETING AGENDA
TUESDAY, MAY 12, 2026
CITY COUNCIL CHAMBERS
794 THIRD STREET
This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law. Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.
In compliance with the Americans with Disabilities Act and Title VI. If you need special assistance or translation services to participate in this meeting, please contact the City Clerk’s Office at (530) 824-7033 or via email at [email protected]. Notification in advance of the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting.
A. CALL TO ORDER: 5:30 p.m.
B. ROLL CALL:
Council: Dave Demo, Chuy Valerio, Shelly Hargens, and Lisa Lomeli Mayor: Robert Snow
C. PLEDGE OF ALLEGIANCE: Led by the City Manager.
D. INVOCATION: Led by Councilor Hargens.
E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS:
1. Proclamation: National Public Works Week May 17 – 23 2026. Present to accept the Proclamation is Corning Public Works Director, Elijah Stanley.
2. Proclamation: May 2026 – Building Safety Month. Present to accept the Proclamation is Corning Building Official, Benjamin Mierzwak.
F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: If there is anyone in the audience wishing to speak on items not already set on the agenda, please come to the podium, and briefly identify the matter. To ensure that all members of the public have an equal opportunity to address the City Council, public comments during the designated comment period will be limited to three (3) minutes per speaker. Council will then determine if such matter will be placed on the agenda for this meeting, scheduled for a subsequent meeting, or recommend other appropriate action.
G. CONSENT AGENDA: It is recommended that items listed on the Consent Agenda be acted on simultaneously unless a Councilmember or members of the audience request separate discussion and/or action.
1. Waive reading, except by title, of any Ordinance under consideration at this meeting for either introduction or passage, per Government Code Section 36934.
2. Waive the reading and approve the Minutes of the April 28, 2026, Closed and Regular City Council Meeting with any necessary corrections.
3. April 23 - May 6, 2026, Claim Warrant in the amount of $ 281,007.68.
4. May 6, 2026, Business License Report
5. April 2026 Treasurer’s Report
6. April 2026 Wages & Salaries: $ 694,163.42
7. April 2026 Building Permit Valuation Report in the amount of $ 109,776.
8. April 2026 City of Corning Wastewater Operations Summary Report.
H. ITEMS REMOVED FROM THE CONSENT AGENDA:
I. PUBLIC HEARINGS AND MEETINGS:
1. Tentative Parcel Map 2026-01 Pacific West Communities- Map to split parcel 071- 020-074 into two parcels.
J. REGULAR AGENDA:
1. Informational presentation and feedback on the Encampment Resolution Funds Program.
2. Presentation and acceptance of the annual city audit for the fiscal year 2024/2025.
3. Presentation and provide direction on proposed funding allocations. Prioritize projects for inclusion of the fiscal year 2026/27 budget and approve fiscal year 2026/27 Capital Improvement Priorities.
4. Accept the Community Development Block Grant (CDBG) program income grant for the Clark Park Parking Lot Project and authorize city staff to solicit bids for the project.
5. Adopt Resolution 05-12-2026-01 calling for the municipal election and requesting it to be consolidated with the county’s November 3, 2026 statewide general election.
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR:
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION:
M. REPORTS FROM MAYOR AND COUNCIL MEMBERS: City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234).
N. ADJOURNMENT:
Posted: Friday, May 12, 2026
National Public Works Week Proclamation
May 17–23, 2026
“Rooted in Service, Powered by Community”
WHEREAS, public works professionals focus on infrastructure, facilities, and services that are of vital importance to sustainable and resilient communities and to public health, high quality of life, and well-being of the people of Corning; and,
WHEREAS, these infrastructure, facilities, and services could not be provided without the dedicated efforts of public works professionals, who are engineers, managers, and employees at all levels of government and the private sector, who are responsible for rebuilding, improving, and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and other structures and facilities essential for our citizens; and, WHEREAS, local public works departments play a major role in responding to disasters and other emergencies. Their maintenance and operations staffs constitute one of the most visible and vital elements, especially in the response and recovery phases of disasters. They are among the first to respond and clear roadways so that police, fire, emergency medical, and utilities vehicles can access stricken areas. The wide range of their capabilities is a valuable component in nearly any type of crisis.
WHEREAS, it is in the public interest for the citizens, civic leaders, and children in Corning to gain knowledge of and maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities; and,
WHEREAS, the year 2026 marks the 66th annual National Public Works Week sponsored by the American Public Works Association;
NOW THEREFORE I, Robert Snow, do hereby designate the week of May 17–23, 2026, as National Public Works Week. I urge all citizens to join with representatives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees, and to recognize the substantial contributions they make to protecting our national health, safety, and advancing quality of life for all.
IN WITNESS WHEREOF, I have hereunto set my hand and
caused the Great Seal of the City of Corning to be affixed this 12th day of May 2026.
_______________________________
Robert Snow, Mayor
ATTEST:
_________________________________
Rubi Ordaz, City Clerk
Item: E-1
CITY OF CORNING PROCLAMATION
BUILDING SAFETY MONTH
MAY 2026
WHEREAS, the City of Corning is committed to ensuring the safety, health, and welfare of its residents through the enforcement of building codes and standards; and WHEREAS, Building Safety Month is an international campaign celebrated in May to raise awareness about the critical role of building safety professionals in maintaining safe, resilient, and sustainable communities; and WHEREAS, modern building codes, including the California Building Standards Code (Title 24), are essential to safeguarding the public from hazards such as structural failure, fire, weather-related events, and other potential risks; and WHEREAS, the City of Corning Building Division, along with design professionals, contractors, and code officials, work diligently to ensure that construction within the City meets established safety standards and promotes long-term community resilience; and
WHEREAS, Building Safety Month provides an opportunity to educate the public about the importance of permits, inspections, and code compliance in protecting lives and property; and
WHEREAS, the theme for Building Safety Month 2026 emphasizes the importance of safe construction practices, disaster preparedness, and the adoption of modern building technologies to enhance safety and sustainability; and WHEREAS, the City of Corning recognizes the dedication and professionalism of building officials, inspectors, plans examiners, fire officials, and all individuals who contribute to building safety in our community;
NOW, THEREFORE BE IT RESOLVED THAT I, Robert Snow, as Mayor of the City of Corning, do hereby proclaim the month of MAY 2026 as “BUILDING SAFETY MONTH” in the City of Corning and encourages all residents, businesses, and stakeholders to recognize the importance of building safety, comply with applicable codes and regulations, and support efforts that promote safe and resilient construction practices.
IN WITNESS WHEREOF, I have hereunto
set my hand and caused the Great Seal of
the City of Corning to be affixed this 12th day
of May 2026.
_______________________________
Robert Snow, Mayor
ATTEST:
_________________________________
Rubi Ordaz, City Clerk
Item: E-2
Item: G-2
CITY OF CORNING
CITY COUNCIL
CLOSED SESSION MINUTES
TUESDAY, APRIL 28, 2026
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER: 5:15 p.m.
The meeting was called to order by Mayor Snow at 5:15pm.
B. ROLL CALL:
Councilmembers present:
Dave Demo
Shelly Hargens
Jose “Chuy” Valerio
Lisa Lomeli
Mayor- Robert Snow
Absent: None
C. PUBLIC COMMENTS: None
D. REGULAR AGENDA:
1. Public Employment (§ 54957)
Title: Police Chief
E. ADJOURN TO REGULARLY SCHEDULED CITY COUNCIL MEETING AND REPORT ON CLOSED SESSION:
The closed session was adjourned at 5:33pm. Mayor Snow reported that there were no reportable actions.
Item: G-2
CITY OF CORNING
CITY COUNCIL
REGULAR MEETING MINUTES
TUESDAY, APRIL 28, 2026
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER:
The meeting was called to order by Mayor Snow at 5:33pm.
B. ROLL CALL:
Councilmembers present:
Dave Demo
Shelly Hargens
Jose “Chuy” Valerio
Lisa Lomeli
Mayor- Robert Snow
Absent: None
C. PLEDGE OF ALLEGIANCE: Led by the City Manager.
D. INVOCATION: Led by Councilor Hargens.
E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS:
1. Proclamation: May 6, 2026 Tehama County Peace Officers’ Memorial Day.
Present to accept the Proclamation will be Pat Hurton, retired CHP Sergeant.
Pat Hurton invited the community to the 32nd Annual Tehama County Peace Officer’s Memorial Ceremony held at High Point Assembly in Red Bluff.
2. Proclamation: May 2026 as Older American’s Month. Present to accept the Proclamation will be Elaine Benwell, Corning Healthcare Districts Elder Services Program Manager.
Elaine presented information on how to help the elder community and how the Healthcare District assists with services for the elder community.
F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: No comments from the audience.
G. CONSENT AGENDA: It is recommended that items listed on the Consent Agenda be acted on simultaneously unless a Councilmember or members of the audience request separate discussion and/or action.
1. Waive reading, except by title, of any Ordinance under consideration at this meeting for either introduction or passage, per Government Code Section 36934.
2. Waive the reading and approve the Minutes of the April 14, 2026, Closed and Regular City Council Meeting with any necessary corrections.
3. April 9 to April 22, 2026, Claim Warrant in the amount of $ 231,150.14.
4. April 23, 2026, Business License Report
Councilor Valerio moved to approve consent items 1-4; Councilor Demo seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Item: G-2
Result: Motion was approved by a 5-0 vote
H. ITEMS REMOVED FROM THE CONSENT AGENDA: None
I. PUBLIC HEARINGS AND MEETINGS: None.
J. REGULAR AGENDA:
1. Request for Council input and consideration on the proposed water and sewer rate study.
Presented by City Manager, Brant Mesker and Alison Lechowicz from LT Municipal Consultant.
The City Council is reviewing draft recommendations for updated water and sewer rates. The rate study evaluates 5-year financial plans to cover operating costs, debt obligations, and needed infrastructure improvements. The City may currently be out of compliance with bondrelated debt coverage requirements, so all options include initial increases to address this.
Alison provided a fourth option that would fall between option 1 and 2 cost-wise and it would cut some projects to push off for a later date to bring down the increase rate.
Councilmembers Hargens, Lomeli, Demo, and Mayor Snow mutually agreed that the fourth alternative option was the best. Councilmember Valerio opted for Option 2. The rate consultant will draft a rate study report describing the rates as proposed and begin the Proposition 218 public notification process.
2. Authorize a contract with Bureau Veritas North America for on-call building related services through November 30, 2027
Presented by Building Official, Benjamin Mierzwak. The City plans to formalize its use of on-call consultants for building services by creating separate contracts with multiple qualified firms, including Bureau Veritas North America. This approach builds a flexible pool of experts to handle plan reviews and related services as demand changes, helping maintain timely and consistent service without relying solely on in-house staff.
Councilor Hargens moved to authorize the City Manager to sign a contract with Bureau Veritas North America for on-call building related services through November 30, 2027; Councilor Valerio seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
3. Accept Notice of Completion for the City of Corning Blackburn Well Repair Project with J&J Pumps.
Presented by Public Works Director, Eli Stanley. The Blackburn Well Repair project has been completed, inspected, and approved. Staff is requesting City Council to accept the project and authorize filing the Notice of Completion with the Tehama County Clerk and Recorder.
Councilor Demo moved to accept and direct the Public Works Director to sign the Notice of Completion and authorize the City Clerk to file notice with Tehama County for recording; Councilor Valerio seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
4. Accept Notice of Completion for the Sewer Lift Station Generator Project with Benchmark Electric Inc.
Item: G-2
Presented by Public Works Director, Eli Stanley. The Sewer Lift Station Generator Project has been completed, inspected, and approved. Staff is requesting City Council to accept the project and authorize filing the Notice of Completion with the Tehama County Clerk and Recorder.
Councilor Hargens moved to accept and direct the Public Works Director to sign the Notice of Completion and authorize the City Clerk to file notice with Tehama County for recording; Councilor Valerio seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
5. Approve agreement with Ben’s Trucking & Equipment, Inc. for the emergency response services for the City Plaza and Recreation Center Project.
Presented by Public Works Director, Eli Stanley. During demolition at the City Plaza site, unknown tanks were discovered. The City coordinated with the Tehama County Environmental Health Department, which requires testing to determine proper removal, disposal, and any needed soil cleanup. To avoid project delays and meet regulatory requirements, the City has hired an environmental contractor on a time-and-materials basis to test, remove, and dispose of the tanks, and perform remediation if necessary. Approval will allow work to proceed quickly and prevent construction delays and added costs. Eli also provided a project update.
Councilor Demo moved to approve the project update and authorize the City Manager to negotiate & execute a time and materials contract and any necessary documents with Ben’s Trucking & Equipment, Inc. for the emergency response services, tank testing, removal, & associated soil remediation at the City Plaza and Recreation Center project site; Councilor Hargens seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
6. Approve agreement with Mid Pacific Engineering, Inc. for the special inspection services for the City Plaza and Recreation Center Project.
Presented by Public Works Director, Eli Stanley. The City requested quotes for special inspection services for the City Plaza Project and received three proposals. Mid Pacific Engineering, Inc. submitted the lowest responsive bid at $50,708.38 and is recommended for contract approval. Special inspections are required during construction to ensure structural and safety components meet building code standards. The overall project, previously awarded to Ginno Construction, is funded through grants and City funds, and the inspection contract will be covered within those project funding sources.
Councilor Hargens moved to approve the agreement and authorize the City Manager to execute the agreement with Mid Pacific Engineering, Inc. for special inspection services for the City Plaza and Recreation Center project in the amount of $50,708.38; Councilor Valerio seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
Item: G-2
7. Authorization of repairs for Fire Engine 3 and budget adjustment.
Presented by Fire Chief, Tom Tomlinson. Fire Engine 3 (ladder truck) experienced a mechanical failure requiring urgent repairs to maintain emergency response capability. Repairs included fixing the waterway system, replacing the braking system, and rebuilding a cylinder. Due to the specialized nature and urgency, staff is requesting to bypass formal bidding and use a qualified vendor for timely and reliable service. The repairs were not budgeted, so staff recommends transferring $31,780 from the Fire Department Painting/Repair budget to the Vehicle Maintenance budget to cover the costs.
Councilor Demo determines that this purchase is exempt from the city’s purchasing policy per section 3.12.082 a-6 of the Corning Municipal Code, and authorize the budget transfer in the amount of $31,780 from fire department painting/repair budget (174-2300-6353) to fire department vehicle maintenance budget (001-2300-6350) and approve the purchase order and payment in the amount of $31,779.87 to Hi-Tech EVS, Inc for necessary repairs; Councilor Valerio seconded the motion.
Ayes: Snow, Valerio, Demo, Hargens, Lomeli
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR: None
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION: None M. REPORTS FROM MAYOR AND COUNCIL MEMBERS:
Snow: No meetings.
Valerio: No meetings but will be attending a meeting where they will be discussing funds for PAL.
Hargens: No meetings.
Demo: Attended a TCTC meeting. They discussed upcoming projects.
Lomeli: Attended a Chamber of Commerce meeting. They will be hosting a free snow cones and books day in honor of National Children’s Memorial Day. The upcoming Tuesday Night Market is going to be a 5 De Mayo theme. The Chamber has Olive Festival T-shirts for sale. They are also collaborating with the city on a 4th of July event at the City Pool. The Chamber is looking for a graphic designer.
N. ADJOURNMENT:
The meeting was adjourned by Mayor Snow at 6:48pm.
Attest:
___________________
Rubi Ordaz, City Clerk
Item No. : G-3
M E M O R A N D U M
TO: HONORABLE MAYOR & COUNCIL
FROM: Lori Sims
Accounting Technician
DATE: May 7, 2026
SUBJECT: CASH DISBURSEMENT DETAIL REPORT FOR COUNCIL MEETING:
Tuesday, May 12, 2026
PROPOSED CASH DISBURSEMENTS FOR YOUR APPROVAL CONSIST OF THE FOLLOWING:
A. Cash Disbursements Ending 05-06-2026 $281,007.68
GRAND TOTAL $281,007.68
5/6/2026 3:22:21 PM Page 1 of 3
Check Report
City of Corning, CA By Check Number
Date Range: 04/23/2026 - 05/06/2026
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code: AP-AP Bank Code
ROD00 CESAR RODRIGUEZ 04/23/2026 Regular 0.00 360.00 40838 PAR07 PARCELQUEST 04/23/2026 Regular 0.00 2,399.00 40839 PGE2A PG&E 04/23/2026 Regular 0.00 52.92 40840
PGE09 PG&E 04/23/2026 Regular 0.00 228.72 40841
PGE2B PG&E 04/23/2026 Regular 0.00 732.13 40842
FLY01 FLYNN'S WELDING & MACHINE SHOP 04/24/2026 Regular 0.00 7,507.50 40843 HIT01 HI-TECH EMER VEH SERV, INC 04/24/2026 Regular 0.00 31,779.87 40844 QWI00 QWIK-LAW LLC 04/24/2026 Regular 0.00 1,138.32 40845 DEP03 DEPT OF TRANS/CAL TRANS 04/24/2026 Regular 0.00 753.66 40846 HOL04 HOLIDAY MARKET #32 04/24/2026 Regular 0.00 29.80 40847 KNI00 KNIFE RIVER CONSTRUCTION 04/24/2026 Regular 0.00 848.91 40848 PAC29 PACE ANALYTICAL SERVICES, LLC 04/24/2026 Regular 0.00 256.00 40849 QUI02 QUILL CORPORATION 04/24/2026 Regular 0.00 127.96 40850 R&R01 R & R HORN CONTRACTORS, INC 04/24/2026 Regular 0.00 34,390.00 40851 WEL06 WELLS FARGO VENDOR FINANCIAL SVCS, LLC 04/24/2026 Regular 0.00 1,782.10 40852 ATT02 AT&T 04/28/2026 Regular 0.00 2,356.94 40853
MAR00 BRENDEN MARTINEZ 04/28/2026 Regular 0.00 148.48 40854 COR08 CORNING LUMBER CO INC 04/28/2026 Regular 0.00 142.72 40855 SHA00 SHARP, ELIZABETH 04/28/2026 Regular 0.00 148.48 40856 HER07 HERRERA, SARAH ELIZABETH 04/28/2026 Regular 0.00 758.30 40857 VIL00 KYREE VILLET 04/28/2026 Regular 0.00 148.48 40858 NAP01 NAPA AUTO PARTS 04/28/2026 Regular 0.00 76.68 40859 FLO00 FLORES, OSBALDO 04/28/2026 Regular 0.00 148.48 40860 PRE00 PRECIADO, OSCAR 04/28/2026 Regular 0.00 148.48 40861 PGE01 PG&E 04/28/2026 Regular 0.00 27,503.20 40862
QUI02 QUILL CORPORATION 04/28/2026 Regular 0.00 75.23 40863 RES04 RESERVE ACCOUNT 04/28/2026 Regular 0.00 3,000.00 40864 ATT02 AT&T 04/30/2026 Regular 0.00 2,180.84 40867
GAY02 GAYNOR TELESYSTEMS, INC 04/30/2026 Regular 0.00 759.69 40868 HUN03 HUNTERS SERVICES INC. 04/30/2026 Regular 0.00 1,604.08 40869 SCH01 LES SCHWAB TIRE CENTER 04/30/2026 Regular 0.00 1,406.34 40870 NOR49 NORTHSTATE SCREEN PRINT & ATHLETIC 04/30/2026 Regular 0.00 431.84 40871 PGE2A PG&E 04/30/2026 Regular 0.00 14.25 40872
VES00 VESTIS GROUP, INC. 04/30/2026 Regular 0.00 491.40 40873 **Void** 05/01/2026 Regular 0.00 0.00 40874
**Void** 05/01/2026 Regular 0.00 0.00 40875
**Void** 05/01/2026 Regular 0.00 0.00 40876
DM001 DM-TECH 05/01/2026 Regular 0.00 119.90 40877
PAC29 PACE ANALYTICAL SERVICES, LLC 05/01/2026 Regular 0.00 256.00 40878 PGE2A PG&E 05/01/2026 Regular 0.00 279.35 40879
COR09 CORNING CHAMBER OF COMMERCE 05/04/2026 Regular 0.00 1,000.00 40880 SMI02 JARED THOMAS SMITH 05/04/2026 Regular 0.00 54.70 40881 SCH16 SCHLERETH, DAYMON WAYNE 05/04/2026 Regular 0.00 104.70 40882 LNC01 LN CURTIS & SONS 05/05/2026 Regular 0.00 3,525.04 40883 ADP00 ADP, INC. 05/05/2026 Regular 0.00 573.22 40884
AIR00 AIRGAS USA, LLC 05/05/2026 Regular 0.00 109.20 40885 COA06 COAR DESIGN GROUP 05/05/2026 Regular 0.00 17,247.50 40886 COR11 CORNING SAFE & LOCK 05/05/2026 Regular 0.00 285.54 40887 FIR20 FIRST NATIONAL BANK OMAHA 05/05/2026 Regular 0.00 1,797.72 40888 FIR11 FIRST NATIONAL BANK OMAHA 05/05/2026 Regular 0.00 682.48 40889 INF00 INFRAMARK, LLC 05/05/2026 Regular 0.00 80,751.50 40890 JJA00 JJACPA INC 05/05/2026 Regular 0.00 5,000.00 40891 PGE2A PG&E 05/05/2026 Regular 0.00 279.35 40892
PGE04 PG&E 05/05/2026 Regular 0.00 737.68 40893
Check Report Date Range: 04/23/2026 - 05/06/2026
5/6/2026 3:22:21 PM Page 2 of 3
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number PRO14 PROUDCITY INC. 05/05/2026 Regular 0.00 1,800.00 40894 SOU06 SOUTH AVENUE ACE 05/05/2026 Regular 0.00 1,332.88 40895 VAL11 VALLEY PACIFIC PETROLEUM SERVICE, INC. 05/05/2026 Regular 0.00 6,105.89 40896 **Void** 05/05/2026 Regular 0.00 0.00 40897
**Void** 05/05/2026 Regular 0.00 0.00 40898
**Void** 05/05/2026 Regular 0.00 0.00 40899
**Void** 05/05/2026 Regular 0.00 0.00 40900
**Void** 05/05/2026 Regular 0.00 0.00 40901
**Void** 05/05/2026 Regular 0.00 0.00 40902
**Void** 05/05/2026 Regular 0.00 0.00 40903
**Void** 05/05/2026 Regular 0.00 0.00 40904
MEY00 MEYER'S POLICE K-9 TRAINING, LLC 05/05/2026 Regular 0.00 400.00 40905 MIL16 MILLENNIUM HEALTH, LLC 05/05/2026 Regular 0.00 60.00 40906 NOR47 NORTHSTAR 05/05/2026 Regular 0.00 15,875.37 40907 SQU00 SQUIER III, LESTER LUVERNE 05/05/2026 Regular 0.00 576.50 40908 TRA09 TRANSUNION RISK & ALTERNATIVE - DATA SOLUTIONS, INC. 05/05/2026 Regular 0.00 152.00 40909 USB04 U.S. BANK 05/05/2026 Regular 0.00 3,300.00 40910
VAL11 VALLEY PACIFIC PETROLEUM SERVICE, INC. 05/05/2026 Regular 0.00 5,671.82 40911 VAL07 VALLEY VETERINARY CLINIC, INC. 05/05/2026 Regular 0.00 579.02 40912 GON02 FRANCISCO GONZALEZ 05/06/2026 Regular 0.00 337.00 40913 AQU00 AQUA-METRIC SALES COMPANY 05/06/2026 Regular 0.00 882.08 40914 ATT02 AT&T 05/06/2026 Regular 0.00 577.83 40915
COM01 COMPUTER LOGISTICS, INC 05/06/2026 Regular 0.00 1,423.52 40916 FIR22 FIRST NATIONAL BANK OF OMAHA 05/06/2026 Regular 0.00 174.52 40917 FIR16 FIRST NATIONAL BANK OMAHA 05/06/2026 Regular 0.00 367.07 40918 GAY02 GAYNOR TELESYSTEMS, INC 05/06/2026 Regular 0.00 532.00 40919 SCH01 LES SCHWAB TIRE CENTER 05/06/2026 Regular 0.00 1,132.68 40920 TPX00 TPX COMMUNICATIONS 05/06/2026 Regular 0.00 832.08 40921 UNI09 UNITED RENTALS (NORTH AMERICA), 05/06/2026 Regular 0.00 2,061.00 40922 WAL02 WALKER PRINTING 05/06/2026 Regular 0.00 99.74 40923 Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code AP Summary
Bank Drafts
EFT's
73 0
11 0
0 0.00
0.00 0.00
0.00 0.00
84 0.00
Payment
281,007.68
0.00 0.00
0.00 0.00
281,007.68
Payable
Count
90 0
0 0
0 90
Check Report Date Range: 04/23/2026 - 05/06/2026
5/6/2026 3:22:21 PM Page 3 of 3
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
73 0
11 0
0 0.00
0.00 0.00
0.00 0.00
84 0.00
281,007.68
0.00 0.00
0.00 0.00
281,007.68
90 0
0 0
0 90
Fund Name Period Amount
Fund Summary
000 Pooled Cash 4/2026 123,930.80
000 Pooled Cash 5/2026 157,076.88
281,007.68
Date..: May 6, 2026 CITY OF CORNING Page.: 1
Time..: 3:27 pm NEW BUSINESSES FOR CITY COUNCIL List.: NEWB Run by: LORI SIMS Group: WTFMBM
Business Name Address CITY/STATE/ZIP Business Desc Bus Start Date ----------------------------------------------------------------------------------------------------------------------------------------- BEN'S TRUCK & EQUIPM 2060 MONTGOMERY ROAD RED BLUF, CA 96080 UNDERGROUND TANK REMOVALS & ROAD GRADING 05/04/26 C.R. CONTRACTING, LL 64435 STRICKLER AVE STE 100 BEND, OR 97703 PAVEMENT REHABILITATION 04/28/26 CEILING EXPERTS, INC 1340 MAIN AVE SACRAMENTO, CA 95838 INSTALLATION OF ACOUSTICAL CEILINGS 04/29/26 TREASURES OF LOVE 1219 SOLANO ST CORNING, CA 96021 REATIL SPECIALITY ITEMS 04/28/26 UNITED TREE SERVICE 660 EL PASO AVE CORNING, CA 96021 TREE WORK/YARD WORK & FIRE CLEARANCE 05/06/26 WILD ROOTS BEAUTY ST 1608 SOLANO ST CORNING, CA 96021 BEAUTY SALON-HAIRSTYLING & HAIRCOLORING 04/29/26 WILLIAMS LANDSCAPING 156 MOBILE DR CORNING, CA 96021 YARD WORK 05/06/26 Item: G-4
Item: G-5
Item No. : G-6
MEMORANDUM
TO: Honorable Mayor and Council members
FROM: Khrystie Shoemaker
Assistant Finance Director
DATE: May 1, 2026
SUBJECT: April 2026 wages & salaries total for the
Tuesday May 12, 2026, Council Meeting
Disbursements for your approval consist of the following:
A. Payroll Date 04-02-2026 $ 204,980.95
B. Payroll Date 04-16-2026 $ 209,082.69
C. Payroll Date 04-30-2026 $ 209,435.34
D. April end of the month p/r liabilities $ 70,664.44
GRAND TOTAL $ 694,163.42
04/01/2026
- Permit # Permit
Date
Main
Status
Parcel Address Permit Type Project Cost
26074 4/30/2026 ISSUED 306 THIRD ST Demo $8,117
26073 4/27/2026 Finaled 104 E FIG LN Roof $12,300
26072 4/22/2026 approved "
FEES DUE "
1205 SOUTH ST Roof $11,000
26071 4/21/2026 ISSUED 1496
MARGUERITE AVE
Building $6,614
26070 4/17/2026 ISSUED 1443 CENTER ST Solar $8,900
26069 4/16/2026 Finaled Electrical $0
26068 4/15/2026 Finaled 249 MARGUERITE
AVE
Electrical $2,500
26067 4/10/2026 Waiting for
Information/
Plans
2003 SOLANO ST ReModel $15,000
26066 4/9/2026 Cancelled 24775 DALE RD HVAC $2,450
26065 4/8/2026 ISSUED 1225 FOURTH AVE Building $10,000
26064 4/7/2026 Finaled 811 WALNUT ST Electrical $3,000
26063 4/6/2026 ISSUED 341 E SOLANO ST Electrical $3,000 26062 4/6/2026 ISSUED 1933 SOLANO ST Building $5,950
26061 4/6/2026 Finaled 220 Eller Drive Solar $9,000
26060 4/2/2026 Cancelled 25503 SOUTH AVE Electrical $2,000 26059 4/1/2026 Cancelled 24800 DALE RD Roof $9,945
$109,776
Total
Records: 16
5/4/2026
Monthly Permit Report
Page: 1 of 1
Item: G-7
Item: G-8
ITEM NO: I-1
PROPOSED TENTATIVE PARCEL MAP
2026-01 PACIFIC WEST COMMUNITIES,
MAP TO SPLIT PARCEL 071-020-074
INTO TWO PARCELS.
May 12, 2026
TO: CITY COUNCIL OF THE CITY OF CORNING
FROM: CHRISTINA MEEDS, PLANNER II
BRANT MESKER, CITY MANAGER
PROJECT DESCRIPTION & LOCATION:
Pacific West Communities has applied to the City to split a parcel known as APN: 071- 020-074 located at 260 Toomes Ave.
In a regularly scheduled Planning Commission meeting held on April 21, 2026 the commission voted in a 4-0 to recommend the City Council to approve the map split for Pacific West Communities.
GENERAL PLAN LAND USE DESIGNATION:
Residential
ZONING DESIGNATION:
PD-Planned Development
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The California Environmental Quality Act Guidelines provide for the exemption of certain minor projects that meet all conditions of the General Plan and Zoning Code and have access to existing City streets and utilities. The Guidelines qualify such exemption, however, by requiring the City to ensure that the development of the Project will not have a "cumulative negative impact" upon the environment or surrounding properties. Many of the proposed Conditions on this Project are contained in existing City Codes. With several additional Conditions of Development, this Project will not have an adverse impact upon the environment or the surrounding properties.
DISCUSSION:
Pursuant to Section 16.09.010 (E) of the Corning Municipal Code (CMC) “the Planning Commission of the City shall act as the advisory agency to the City Council. It is charged with making investigations and reports on the design and improvements of proposed divisions of land. The Planning Commission shall make investigations and conduct hearings regarding the approval of tentative maps and make its written report on the Tentative Map directly to the City Council.” Final approval, including establishing design standards for public improvements, of a Tentative Parcel Map is the responsibility of the City Council pursuant to Section 16.09.010 (F) of the CMC.
CONSISTENCY WITH GENERAL PLAN & ZONING:
The Site is designated Residential on the General Plan Land Use Map. Current zoning is PD, Planned Development.
Staff recommend the following three (3) Factual Sub findings & Legal Findings for consideration by the Commission.
Factual Sub finding #1:
A Notice of Exemption will be filed with the Tehama County Clerk & Recorder and on the CEQA Submit Site.
Legal Finding #1:
The granting of Tentative Map 2026-01 is a minor land division and therefore exempt from CEQA pursuant to Section 15315, Class 15.
Factual Sub finding #2:
Municipal water and sewer services will continue serving the resultant parcel pursuant to Proposed Tentative Map 2026-01.
Legal Finding #2:
There will be no conflicts with City Water and Sewer Services for the resultant parcel of Proposed Tentative Map 2026-01.
Factual Sub finding #3:
A Registered Professional Engineering firm, Sharrah Dunlap Sawyer, Inc., prepared the Tentative Parcel Map 2026-01.
Legal Finding #3:
The City accepts this map depicting the existing and proposed property boundaries but makes no attempt to certify either title nor accuracy of the attached drawing.
ACTION
MAKE A MOTION TO ADOPT THE 3 FACTUAL SUBFINDINGS AND LEGAL FINDINGS AND 1 CONDITION AS PRESENTED IN THE STAFF REPORT AND APPROVE TENATATIVE PARCEL MAP 2026-01.
OR
MAKE A MOTION TO DENY TENTATIVE PARCEL MAP 2026-01.
RECOMMEND CONDITIONS
CONDITION #1
A note shall be added to the front page of the map, prior to recording that the property is located near agricultural operations and that residents of the development may be adversely affected by dust, noise, odors, and overspray of chemical fertilizers and pesticides, and that the City of Corning does not regard such operation as nuisances when conducted with proper and accepted standards. • • • •
AND
ITEM: J-1
INFORMATIONAL
PRESENTATION
FEEDBACK ON THE
ENCAMPMENT RESOLUTION
FUNDS PROGRAM
MAY 12, 2026
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER
SUMMARY:
Poor and the Homeless Tehama County Coalition (PATH), First Christian Church of Corning (FCCC), Tehama County Health Services Agency (TCHSA), and Tehama County Continuum of Care (Tehama CoC) will present information to the Council on current services in Corning and request Council feedback on additional services to be provided.
BACKGROUND:
PATH, FCCC, and TCHSA are providing services in Corning to those who are unhoused and/or low-income. Some of these services have been in place for years and some are new in the past year or two. The three organizations would like to share with Council about their services in Corning and share some outcomes from these services.
Tehama CoC would like to ask the Council for feedback on additional services to be provided in Corning. There is a competitive grant opportunity through the State Department of Housing and Community Development (HCD) called Encampment Resolution Fund (ERF) that is due June 30, 2026. ERF helps resolve encampments and facilitate housing opportunities for those residing in encampments. It is a flexible program that can be designed to meet each community’s needs. Funds can be used for outreach, interim housing, permanent housing, and supportive services, among other things. Tehama CoC would like to explore the Council’s interest in an ERF program tailored to Corning.
FINANCIAL:
No financial impact at this time.
RECOMMENDATION:
THAT MAYOR AND COUNCIL:
• PROVIDE FEEDBACK REGARDING THE SERVICES CURRENTLY PROVIDED AND
THE ERF PROGRAM IN CORNING
• PROVIDE DIRECTION TO THE CITY ON THE COUNCIL’S INTEREST IN
PARTNERING WITH TEHAMA COC TO SUBMIT AN ERF APPLICATION AND
SERVICES AND HOUSING TO BE INCLUDED
1 ITEM NO: J-2
PRESENTATION AND ACCEPTANCE OF
ANNUAL CITY AUDIT FOR
FISCAL YEAR 2024/2025
May 12, 2026
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: BRANT MESKER, CITY MANAGER
SUMMARY:
Each year the City Auditor presents the results of the Annual Audit of the City of Corning financial records. This was the City’s second year working with Joseph Arch, president of JJACPA, Inc. as our auditor. He will be present at the Council Meeting to explain to the City Council the results of the Fiscal Year 2024/2025 Audit.
A copy of the Audit is on file for public review at City Hall and on the City website (www.corning.org). Council members may receive a bound copy at City Hall.
AUDIT OVERVIEW:
The Audit report begins with the “Independent Auditor’s Report” in the Financial Section. That report provides information regarding the responsibilities of the Auditor and management with regard to the financial statements included in the Annual Financial Report. Also included is a Communications Letter for Those Charged with Governance. This report identifies if there were any audit findings or difficulties for the auditor in performing his work.
FINANCIAL HIGHLIGHTS
All funds of the City listed below are reported in the Government-Wide Reports found on page 7 of the Annual Financial Report titled Statement of Net Position; the financial highlights in layman terms are:
• Total assets of the City: $55,689,038
• Deferred outflows: $2,106,100
• Total liabilities: $17,527,371
• Deferred inflows: $2,975,659
• City’s assets exceeded its liabilities by: $37,292,108 This is an increase of $3,004,561 from the previous year when assets exceeded liabilities by 34,287,547 (net position) for the fiscal year reported. The total General Fund balance on June 30, 2025 was $6,393,973; the balance on June 30, 2024 was $6,134,616. This represents an increase of $259,357.
GENERAL FUND:
The General Fund of the City is the main fund utilized for the general operations of the City where these operations are not required to be reported in other funds based upon external rules or regulations; the Council has the freedom to determine the priorities and establish the uses of the General Fund based upon available resources. Most of the other Funds are restricted to specific purposes either by Federal or State Law, though the City Council still sets the priorities based upon the specific usage of those funds.
2 TABLE 3 - GENERAL FUND REVENUES BY SOURCE (FY 2024/2025 VS. FY 2023/2024) Amount Percentage Amount Percentage Amount % Change
Taxes and assessments $ 7,036,627 84.85% 7,273,786 $ 87.37% $ (237,159) -3.26% Licenses and permits 210,777 2.54% 279,862 3.36% (69,085) -24.69% Fines and forfeitures 15,148 0.18% 12,085 0.15% 3,063 25.35% Use of money and property 358,702 4.33% 117,337 1.41% 241,365 205.70% Charges for services 270,329 3.26% 227,702 2.74% 42,627 18.72% Reimbursements 106,380 1.28% 110,836 1.33% (4,456) -4.02% Other revenues 294,681 3.55% 303,731 3.65% (9,050) -2.98% $ 8,292,644 100% 8,325,339 $ 100% $ (32,695) -0.39%
Ended June 30, 2025 Ended June 30, 2024 Increase/ (Decrease) TABLE 4 - GENERAL FUND EXPENDITURES BY TYPE (FY 2024/2025 VS. FY 2023/2024) Amount Percentage Amount Percentage Amount % Change
General Government $ 1,551,001 21.54% 1,442,456 $ 21.45% 108,545$ 7.53% Public Safety 3,895,700 54.10% 3,703,208 55.06% 192,492 5.20% Public Works 495,564 6.88% 336,243 5.00% 159,321 47.38% Community Development 250,840 3.48% 363,243 5.40% (112,403) -30.94% Parks and Recreation 548,762 7.62% 782,038 11.63% (233,276) -29.83% Capital Outlay 459,622 6.38% 98,796 1.47% 360,826 365.22% Debt Service 0.00% - 0.00% - 0.00% -
$ 7,201,489 100% 6,725,984 $ 100% 475,505$ 7.07%
Ended June 30, 2025 Ended June 30, 2024 Increase/ (Decrease) Tables 3 & 4 (information found on page 18 of Audit) present the actual General Fund Revenues and Expenditures data for FY 2024/2025 as compared with the same data for FY 2023/2024. You will note that revenues (Table 3) decreased in 2024/2025 by $32,695 or 0.39% from the previous year. These decreases were largely due decreases in taxes and assessments and miscellaneous revenues. From Table 4 you will note expenditures increased in FY 2024/2025 by $475,505 or
7.07% from FY 2023/2024. Increases in expenditures were felt in General Government, Public Safety, Public Works, and Capital Outlay. The decrease in Parks and Recreation is a result of changing to breakeven for programs and activities in 2024-25.
FY 2024/2025 BUDGET VS. ACTUAL:
Budgets are estimates utilized for management control of spending patterns. The annual financial report shows the estimates we make near the beginning of the fiscal year and includes any adjustments in the final budget column and compares that with the actual amounts. A summary of General Fund Final Budgeted Amounts vs. the Actuals is included in the Annual Financial Report on Page 24. Overall, revenues came in slightly lower (4.57%) than anticipated. This was partly due to projected grants starting later than expected and pushed to 2025-26 and Expenditures came in significantly higher as well.
OTHER FUNDS:
Annual Financial Report (pages 110 – 117) provide information on the other special revenue funds such as the CDBG (Community Development Block Grant Funds), Prop. 47 Grants, Landscape & Lighting Districts, American Recovery Plan Act (ARPA) funds, and road funds. 3 Annual Financial Report (pages 100 – 109, pages 118-119) show the Capital Replacement and the Capital Improvement Funds, Police K-9, Bedroom Tax Fund, and the various Department Equipment Replacement Funds.
Annual Financial Report (pages 41 – 42), show the two Trust Funds, J.T. Levy Trust Fund and the Riddell Library Trust Fund.
WATER AND SEWER FUNDS:
Two summary tables of the Water and Sewer Funds, respectively. Table 5 shows a positive Change in Net Position of $196,211. The Sewer Fund data is presented in Table 6 and shows a positive Change in Net Position of $754,271 at the close of FY 2024/2025.
TABLE 5 – WATER FUND (FY 2024/2025 VS. FY 2023/2024)
Amount Amount Amount Percent
Operating Revenue $ 1,860,634 $ 1,600,233 $ 260,401 16.27% Expenses (1,563,122) (1,896,202) (333,080) -17.57%
Non-Operating Revenue (Expenses) (101,301) (73,411) 27,890 37.99% Net Operating Transfers - - - -
Change in Net Position $ 196,211 $ (369,380) 565,591 153.12% Increase/ (Decrease) from
Prior Year Water Enterprise Fund 2025 2024
TABLE 6– SEWER FUND (FY 2024/2025 VS. FY 2023/2024)
Amount Amount Amount Percent
Operating Revenue $ 2,609,059 $ 2,417,357 $ 191,702 7.93% Expenses (1,814,663) (2,374,190) (559,527) -23.57%
Non-Operating Revenue (Expenses) (40,125) (84,537) (44,412) -52.54% Net Operating Transfers - - - -
Change in Net Position $ 754,271 $ (41,370) 795,641 1923.23% Increase/ (Decrease) from
Prior Year Sewer Enterprise Fund 630 2025 2024
Annual Financial Report (pages 35 – 38) show the City’s “Enterprise Funds”, which consist of the Sewer, Solid Waste, Airport, Transportation Center, and Water funds. Depreciation & Amortization are included and do not include principal payments on long-term debt. Retained Earnings include the total cost of all fixed assets less any accumulated depreciation and any longterm debt.
RECOMMENDATION:
MAYOR AND COUNCIL MEMBERS RECEIVE AND ACCEPT THE ANNUAL AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2025.
CITY OF CORNING
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND
COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2025
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
April 28, 2026
City Council
City of Corning
Corning, California
We have audited the financial statements of City of Corning (City) as of and for the year ended June 30, 2025 and have issued our report thereon dated April 28, 2026. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter December 15, 2025 our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.
There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during fiscal year 2024-2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”), net pension liability and leases.
Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards, when applicable (i.e. buildings). We evaluated the key factors and assumptions used to develop the useful lives and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Management's estimate of the net pension liability is based on actuarial valuations that consider various assumptions, including discount rates, expected long-term return on plan assets, mortality rates, and projected salary increases. We evaluated the key factors and assumptions used to develop the net pension liability and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Management's estimate of the lease receivable is based on the present value of expected lease payments over the lease term, discounted using the rate implicit in the lease or the lessee's incremental borrowing rate. We evaluated the key factors and assumptions used to develop the lease receivable and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated April 28, 2026.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.
Communication of Internal Control Related Matters
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
]ÉáxÑ{ ]A TÜv{ JOSEPH J ARCH, CPA
President/CEO
JJACPA, INC
April 28, 2026
JJACPA, Inc.
7080 Donlon Way, Suite #204
Dublin, CA 94568
City of Coming
794 Third St. Corning, CA 96021 (530) 824-7029
This representation letter is provided in connection with your audit of the governmental activities, the businesstype activities each major fund, and the aggregate remaining fund information of the City of Coming (City) as of June 30 2025 and for the year then ended and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position results of operations and cash flows where applicable, of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United tates of America (U.S.
GAAP).
Certain representations in this letter are described as being limited to matters that are material. Item are considered material, regardless of size if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the infonnation would be changed or influenced by the omission or misstatement.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of April 28, 2026:
Financial Statements
• We have fulfilled our responsibilities as set out in the terms of the audit engagement dated December 15, 2025 for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
• We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
• We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes. • We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements and other studies related to the audit objectives and whether related recommendations have been implemented. • Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
• Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.
• All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified.
CITY OF CORNING, CALIFORNIA
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
Prepared by:
Khrystie Shoemaker
Assistant Finance Director
This page intentionally left blank.
City of Corning, California
Basic Financial Statements
For the year ended June 30, 2025
Table of Contents
i
Page
Table of Contents .................................................................................................................................. i List of Officials .................................................................................................................................... iv Independent Auditors’ Report ........................................................................................................... 1 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net position .......................................................................................................... 7 Statement of Activities .............................................................................................................. 8 Fund Financial Statements:
Governmental Funds:
Balance Sheet ................................................................................................................................ 12 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net position ........................................................................................................ 15 Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net position – Governmental Activities ............................................................. 16 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ................................................................................ 18 Reconciliation of Fund Basis Statements to Government-wide Statement of Activities ............................................................................................................ 21 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 22 Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget to Actual – General Fund and
Major Special Revenue Funds ................................................................................................. 24
INTRODUCTORY SECTION
FINANCIAL SECTION
City of Corning, California
Basic Financial Statements
For the year ended June 30, 2025
Table of Contents, Continued
ii
Page
Basic Financial Statements, Continued:
Fund Financial Statements, Continued:
Proprietary Funds:
Statement of Net position – Proprietary Funds ............................................................................. 35 Statement of Revenues, Expenses, and Changes in Fund Net position – Proprietary Funds .................................................................................................................... 36 Statement of Cash Flows – Proprietary Funds ............................................................................. 37 Fiduciary Activities:
Statement of Fiduciary Net position – Fiduciary Activities .......................................................... 41 Statement of Changes in Fiduciary Net position – Private Purpose Trust Funds .......................... 42 Notes to Basic Financial Statements .......................................................................................... 46 Required Supplementary Information:
Schedule of Contributions – Miscellaneous Plan .......................................................................... 85 Schedule of Contributions – Safety Plan ....................................................................................... 86 Schedule of the City’s Proportionate Share of the Net Pension Liability – Miscellaneous Plan ............................................................................................................ 87 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Plan ......................................................................................................................... 88 Other Supplemental Information:
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................. 92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 94 Combining Major Governmental Funds Schedules
Combining Balance Sheet – General Fund .................................................................................... 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund ........................................................................................................................... 99 Combining Balance Sheet – Equipment Replacement Fund ....................................................... 100 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Equipment Replacement Fund ............................................................................................... 101 City of Corning, California
Basic Financial Statements
For the year ended June 30, 2025
Table of Contents, Continued
iii
Page
Other Supplemental Information, Continued:
Combining Major Governmental Funds Schedules, Continued:
Combining Balance Sheet – Police Special Revenue .................................................................. 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Police Special Revenue .......................................................................................................... 103 Combining Balance Sheet – General Government Special Revenue .......................................... 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Government Special Revenue .................................................................................. 105 Combining Balance Sheet – Housing Special Revenue .............................................................. 106 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Housing Special Revenue ...................................................................................................... 107 Combining Balance Sheet – Street Special Revenue .................................................................. 108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Street Special Revenue .......................................................................................................... 109 Combining Balance Sheet – Community Development Block Grants ........................................ 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Community Development Block Grants ............................................................................... 111 Combining Balance Sheet – Grant Funds Special Revenue ........................................................ 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Grant Funds ........................................................................................................................... 113 Combining Balance Sheet – Housing Grants .............................................................................. 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Housing Grants ...................................................................................................................... 115 Combining Balance Sheet – Gas Tax Special Revenue .............................................................. 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Gas Tax .................................................................................................................................. 117 Combining Balance Sheet – General Capital Projects ................................................................ 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Capital Projects ........................................................................................................ 119 Combining Major Enterprise Funds Schedules:
Combining Statement of Net Position – Water Enterprise Fund ................................................. 122 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Water Enterprise Fund ........................................................................................................... 123 Combining Statement of Net Position – Sewer Enterprise Fund ................................................ 124 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Sewer Enterprise Fund ........................................................................................................... 125 Report on Internal Control over Financial reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................. 127 City of Corning, California
Basic Financial Statements
For the year ended June 30, 2025
List of Officials
iv
Robert E. Snow, Mayor
David Demo, Vice Mayor
Shelly Hargens, Council Member
Jose “Chuy” Valerio Martinez, Council Member
Lisa “Chata” Lomeli, Council Member
Reina “Rubi” Ordaz, City Clerk
Brant Mesker, City Manager
Laura Calkins, City Treasurer
CITY COUNCIL
CITY OFFICIALS
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Corning
Corning, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, of the City of Corning (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and City Council
City of Corning
Corning, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 24-33, the schedules of contributions on pages 85-86, and the schedules of the City’s proportionate share of the net pension liability on pages 87-88 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.
To the Honorable Mayor and City Council
City of Corning
Corning, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements 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 but does not include the financial statements and our auditor's report thereon.
Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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.
JJACPA, Inc.
April 28, 2026 JJACPA, Inc.
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BASIC FINANCIAL STATEMENTS
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6 City of Corning, California
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 16,098,228 $ 4,353,494 $ 20,451,722 Restricted cash and investments - 252,971 252,971
Receivables:
Accounts - 183,871 183,871
Interest 183,792 - 183,792
Loans/Notes receivable 4,130,638 - 4,130,638
Leases 1,437,164 741,191 2,178,355
Internal balances 16,638 (16,638) -
Total current assets 21,866,460 5,514,889 27,381,349
Noncurrent assets:
Capital assets:
Nondepreciable 988,791 875,357 1,864,148
Depreciable 16,944,792 9,498,749 26,443,541
Total noncurrent assets 17,933,583 10,374,106 28,307,689 Total assets 39,800,043 15,888,995 55,689,038
DEFERRED OUTFLOWS OF RESOURCES
Pension Plan 1,746,700 359,400 2,106,100
Total assets and deferred outflows of resources $ 41,546,743 $ 16,248,395 $ 57,795,138
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ 775,688 $ 85,522 $ 861,210 Interest payable - 86,934 86,934
Deposits payable 300 32,143 32,443
Unearned revenue 16,865 - 16,865
Compensated absences - current portion 112,838 10,490 123,328 Due within one year 32,893 375,000 407,893
Total current liabilities 938,584 590,089 1,528,673
Noncurrent liabilities:
Long-term liabilities:
Compensated absences 263,287 24,476 287,763
Due after one year 156,526 5,810,000 5,966,526
Net pension liability 8,348,955 1,395,454 9,744,409
Total noncurrent liabilities 8,768,768 7,229,930 15,998,698 Total liabilities 9,707,352 7,820,019 17,527,371
DEFERRED INFLOWS OF RESOURCES
Pension Plan 716,102 138,294 854,396
Leases 1,393,414 727,849 2,121,263
Total deferred inflows of resources 2,109,516 866,143 2,975,659
NET POSITION
Net investment in capital assets 17,744,164 4,564,106 22,308,270 Restricted 53,453 - 53,453
Unrestricted 11,932,258 2,998,127 14,930,385
Total net position 29,729,875 7,562,233 37,292,108
Total liabilities, deferred inflows of resources and net position $ 41,546,743 $ 16,248,395 $ 57,795,138 The accompanying notes are an integral part of these basic financial statements. 7 City of Corning, California
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:
Governmental activities:
General government $ 1,904,092 $ 305,670 $ 128,191 $ -
Public safety 5,007,732 - 149,205 -
Public works 1,269,793 - 23,791 2,087,256
Community development 285,177 - - -
Parks and recreation 729,519 109,460 60,589 431,080
Interest 751 - - -
Total governmental activities 9,197,064 415,130 361,776 2,518,336 Business-type activities:
Water 1,704,276 1,860,634 - -
Sewer 1,972,988 2,609,059 - -
Solid Waste 72 - - -
Airport 94,964 - - 10,000
Transportation 52,377 - - -
Total business-type activities 3,824,677 4,469,693 - 10,000 Total primary government $ 13,021,741 $ 4,884,823 $ 361,776 $ 2,528,336 General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy tax
Other taxes
Intergovernmental:
State motor vehicle in-lieu tax (MVLF)
Use of money and property
Total general revenues
Change in net position
Net position:
Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 8 Governmental Business-Type
Activities Activities Totals
$ (1,470,231) $ - $ (1,470,231)
(4,858,527) - (4,858,527)
841,254 - 841,254
(285,177) - (285,177)
(128,390) - (128,390)
(751) - (751)
(5,901,822) - (5,901,822)
- 156,358 156,358
- 636,071 636,071
- (72) (72)
- (84,964) (84,964)
- (52,377) (52,377)
- 655,016 655,016
(5,901,822) 655,016 (5,246,806)
932,339 - 932,339
4,679,736 - 4,679,736
201,303 - 201,303
495,778 - 495,778
1,556 - 1,556
963,359 - 963,359
776,461 200,835 977,296
8,050,532 200,835 8,251,367
2,144,827 859,734 3,004,561
27,585,048 6,702,499 34,287,547
$ 29,729,875 $ 7,562,233 $ 37,292,108
Net (Expense) Revenue and
Changes in Net Position
9 Fund
Governmental Funds: Governmental funds are used for taxes and grants.
General
Equipment Replacement Fund
Police Special Revenue
Econcomic Development Reserve
General Government Special Revenue
Prop 47 Cycle 2
Housing Special Revenue
Street Special Revenue
Wayfinding Maintenance
Rodgers Restoration
CDBG Programs
Grant Funds
FUND FINANCIAL STATEMENTS
Description
Primary operating fund of the City; accounts for all activities except those legally or administratively required to be accounted for in other funds.
MAJOR FUNDS
Funds receive periodic transfers from the General Fund and/or Measure A. These accounts also hold proceeds from the sale of surplus Department Equipment.
Accounts for specific police related revenues and related expenditures.
This fund receives periodic transfers from the General Fund for current and future economic development projects and programs.
This fund receive periodic transfers from the General Fund for current and future equipment needs.
Accounts for grant revenues and related expenditure for specific Housing Needs.
State and Local revenues, such as Local Transportation Funds, that are specifically designated for street and related transportation purposes.
Funds were deposited by participating businesses for the purchase and installation of the two (2) ladder board entrance directional signs at the intersections of Hwy. 99W/South and Hwy.
99W/Solano Streets.
Represents residual funds from the restoration Rodger’s Theatre project.
Represents principal and interest received on Housing Program and Economic Development Loans.
This fund accounts for fund reimbursements for the Restore Program.
Accounts for grant revenues and related expenditure for a variety of limited purpose grants.
10 Fund
Housing Grant
Gas Tax Funds
General Capital Projects
FUND FINANCIAL STATEMENTS
Represents balances and deferred revenues related to housing and economic loans.
State funds received from the sale of gasoline throughout the state which may only be expended for select system Street and Transportation Construction or Maintenance.
The City is involved in various capital projects. In order to properly track revenues and related expenditures, separate funds have been established.
Description
MAJOR FUNDS, CONTINUED
11 City of Corning, California
Balance Sheet
Governmental Funds
June 30, 2025
Equipment Police Economic
General Replacement Special Development
Fund Funds Revenue Reserve
ASSETS
Cash and investments $ 6,397,497 $ 3,232,691 $ 66,865 $ 32,083 Receivables:
Interest 183,792 - - -
Loans/Notes receivable - - - -
Due from other funds 91,744 - - -
Total assets $ 6,673,033 $ 3,232,691 $ 66,865 $ 32,083
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 261,895 $ 215 $ 228 $ - Due to other funds - - - -
Deposits payable 300 - - -
Due to other governments - - - -
Unearned revenue 16,865 - - -
Other liabilities - - - -
Total liabilities 279,060 215 228 -
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total Liabilities 279,060 215 228 -
Fund balances:
Restricted - - 53,453 -
Committed 625,000 - - -
Assigned 3,232,476 - 13,184 32,083
Unassigned (Deficit) 5,768,973 - - -
Total fund balances 6,393,973 3,232,476 66,637 32,083
Total liabilities and fund balances $ 6,673,033 $ 3,232,691 $ 66,865 $ 32,083 Special Revenue Funds
The accompanying notes are an integral part of these basic financial statements. 12 Housing Street
Prop 47 Special Special Wayfinding Rodgers CDBG
Cycle 2 Revenue Revenue Maintenance Restoration Programs $ 212,634 $ 34,567 $ 28,488 $ 3,656,573 $ 1,367 $ 2,166 $ 73,873 - - - - - - -
- - - - - - 120,026
- - - - - - -
$ 212,634 $ 34,567 $ 28,488 $ 3,656,573 $ 1,367 $ 2,166 $ 193,899 $ 4,438 $ - $ 506 $ 505,928 $ - $ - $ -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
4,438 - 506 505,928 - - -
- - - - - - 120,026
- - - - - - 120,026
4,438 - 506 505,928 - - 120,026
- - - - - - -
- - - - - - -
208,196 34,567 27,982 3,150,645 1,367 2,166 73,873
- - - - - - -
208,196 34,567 27,982 3,150,645 1,367 2,166 73,873
$ 212,634 $ 34,567 $ 28,488 $ 3,656,573 $ 1,367 $ 2,166 $ 193,899 (Continued)
Special Revenue Funds
General
Government Special
Revenues
13 City of Corning, California
Balance Sheet, Continued
Governmental Funds
June 30, 2025
General Nonmajor
Grant Housing Gas Tax Capital Governmental
Funds Grant Funds Projects Funds Totals
ASSETS
Cash and investments 6,000$ $ - $ 111,231 $ 336,965 $ 1,905,228 $ 16,098,228 Receivables:
Interest - - - - 183,792 -
Loans/Notes receivable - 4,010,612 - - 4,130,638 -
Due from other funds - - - - 91,744 -
Total assets $ 6,000 $ 4,010,612 $ 111,231 $ 336,965 $ 1,905,228 $ 20,504,402
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities -$ $ 2,075 - $ $ - $ 403 $ 775,688 Due to other funds 75,106 - - - 75,106 -
Deposits payable - - - - - 300
Due to other governments - - - - - -
Unearned revenue - - - - 16,865 -
Other liabilities - - - - - -
Total liabilities 75,106 2,075 - 403 867,959 0
Deferred inflows of resources:
Unavailable revenue - 4,010,612 - - 4,130,638 -
Total deferred inflows of resources: - 4,010,612 - 4,130,638 - 0 Total Liabilities 75,106 4,010,612 2,075 - 403 4,998,597 Fund balances:
Restricted - - - - 53,453 -
Committed - - - - 625,000 -
Assigned - 109,156 - 336,965 1,906,752 9,129,412
Unassigned (Deficit) (69,106) - - (1,927) - 5,697,940
Total fund balances (69,106) 109,156 - 336,965 1,904,825 15,505,805 Total liabilities and fund balances $ 6,000 $ 4,010,612 $ 111,231 $ 336,965 $ 1,905,228 $ 20,504,402 (Concluded)
Special Revenue Funds
Capital
Projects Fund
14 City of Corning, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2025
Total fund balances - total governmental funds $ 15,505,805 17,933,583
Compensated absences $ (376,125)
Due within one year (32,893)
Due after one year (156,526)
Net pension liability (8,348,955) (8,914,499)
Loans 4,130,638
Leases 43,750 4,174,388
Deferred outflows - Pension 1,746,700
Deferred inflows - Pension (716,102) 1,030,598
Net Position of governmental activities $ 29,729,875
The accompanying notes are an integral part of these basic financial statements.
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.
Amounts reported for governmental activities in the Statement of Net Position are different because:
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.
Governmental funds lease receivables are deferred under the current financial resources measurement focus. The lease receivables are recognized in the government-wide Statement of Net Position under the accrual basis of accounting.
Pension and OPEB obligations result in deferred outflows and inflows of resources associated with the actuarial value of contributions, assets and liabilities.
15 City of Corning, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2025
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current assets:
Cash and investments $ 16,098,228 $ - $ - $ 16,098,228
Receivables:
Interest 183,792 - - 183,792
Loans/Notes receivable 4,130,638 - - 4,130,638
Leases 1,437,164 1,437,164
Due from other funds 91,744 (91,744) - -
Internal balances - 16,638 - 16,638
Total current assets 20,504,402 (75,106) 1,437,164 21,866,460 Noncurrent assets:
Capital assets, net - 17,933,583 - 17,933,583
Total noncurrent assets - 17,933,583 - 17,933,583
Total assets 20,504,402 (75,106) 19,370,747 39,800,043
Deferred outflows of resources:
Pension Plan - - 1,746,700 1,746,700
Total assets and deferred outflows of resources $ 20,504,402 $ (75,106) $ 21,117,447 $ 41,546,743
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Current liabilities:
Accounts payable and accrued liabilities $ 775,688 $ - $ - $ 775,688 Due to other funds 75,106 (75,106) - -
Deposits payable 300 - - 300
Unearned revenue 16,865 - - 16,865
Compensated absences - current portion - - 112,838 112,838 Due within one year - - 32,893 32,893
Total current liabilities 867,959 (75,106) 145,731 938,584 Noncurrent liabilities:
Compensated absences - - 263,287 263,287
Due after one year - - 156,526 156,526
Net pension liability - - 8,348,955 8,348,955
Total noncurrent liabilities - - 8,768,768 8,768,768
Total liabilities 867,959 (75,106) 8,914,499 9,707,352
Deferred inflows of resources
Unavailable revenue 4,130,638 (4,130,638) - -
Pension plan - - 716,102 716,102
Leases - - 1,393,414 1,393,414
Total deferred inflows of resources 4,130,638 (2,021,122) - 2,109,516 Total liabilities and deferred inflows of resources: 4,998,597 (75,106) 6,893,377 11,816,868
FUND BALANCES/NET POSITION
Fund balances:
Restricted 53,453 (53,453) - -
Committed 625,000 (625,000) - -
Assigned 9,129,412 (9,129,412) - -
Unassigned 5,697,940 (5,697,940) - -
-
Net position: -
Net investment in capital assets - 17,744,164 - 17,744,164 Restricted - - 53,453 53,453
Unrestricted - 15,505,805 (3,573,547) 11,932,258
Total fund balances/net position 15,505,805 14,224,070 - 29,729,875 Total liabilities, deferred inflows and net position $ 20,504,402 $ (75,106) $ 21,117,447 $ 41,546,743 The accompanying notes are an integral part of these basic financial statements. 16 This page intentionally left blank.
17 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Equipment Police Economic
General Replacement Special Development
Fund Funds Revenues Reserve
REVENUES:
Taxes and assessments $ 7,036,627 $ - $ - $ -
Licenses and permits 210,777 - - -
Fines and forfeitures 15,148 - - -
Intergovernmental - - - -
Use of money and property 358,702 143,779 2,759 1,307
Charges for services 270,329 - - -
Reimbursements 106,380 - - -
Other revenues 294,681 65,157 - -
Total revenues 8,292,644 208,936 2,759 1,307
EXPENDITURES:
Current:
General government 1,551,001 - - -
Public safety 3,895,700 896,974 5,586 -
Public works 495,564 1,031 - -
Community development 250,840 - - -
Parks and recreation 548,762 9,926 - -
Capital outlay 459,622 234,879 - -
Debt service: -
Principal - 48,978 - -
Interest and fiscal charges - 751 - -
Total expenditures 7,201,489 1,192,539 5,586 -
REVENUES OVER (UNDER)
EXPENDITURES 1,091,155 (983,603) (2,827) 1,307
OTHER FINANCING SOURCES (USES):
Transfers in 360,500 827,915 - -
Transfers out (1,192,298) - - -
Total other financing sources (uses) (831,798) 827,915 - - Net change in fund balances 259,357 (155,688) (2,827) 1,307 FUND BALANCES:
Beginning of year 6,134,616 3,388,164 69,464 30,776
End of year $ 6,393,973 $ 3,232,476 $ 66,637 $ 32,083
Special Revenue Funds
The accompanying notes are an integral part of these basic financial statements. 18 Housing Street
Prop 47 Special Special Wayfinding Rodgers CDBG
Cycle 2 Revenue Revenue Maintenance Restoration Programs $ - $ - $ - $ - $ - $ - $ -
2,684 - - - - - -
- - - - - - -
- - 1,963,182 - - - -
9,185 1,438.00 1,685 156,635 56 88 2,779
- - - - - - -
- - - - - - -
- - - 29,971 - - -
11,869 1,438 1,685 2,149,788 56 88 2,779
35,693 - - 102 - - -
- - - - - - -
- - - 396,518 - - -
- - 34,337 - - - -
- - - 79,247 - - -
- - 1,028,907 - - - -
- - - - - - -
- - - - - - -
35,693 - 34,337 1,504,774 - - -
(23,824) 1,438 (32,652) 645,014 56 88 2,779
- - - - - - -
- - - - - - -
- - - - - - -
(23,824) 1,438 (32,652) 645,014 56 88 2,779
232,020 33,129 60,634 2,505,631 1,311 2,078 71,094
$ 208,196 $ 34,567 $ 27,982 $ 3,150,645 $ 1,367 $ 2,166 $ 73,873 (Continued)
Special Revenue Funds
General
Government
Special Revenues
19 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds, Continued
For the year ended June 30, 2025
Capital
Projects
Fund
General Other
Grant Housing Gas Tax Capital Governmental
Funds Grant Funds Projects Funds Totals
REVENUES:
Taxes and assessments $ - -$ $ - $ 23,791 - $ $ 7,060,418 Licenses and permits - - - - 213,461 -
Fines and forfeitures - - - - - 15,148
Intergovernmental 431,080 - 119,506 - 2,513,768 -
Use of money and property 295 - 3,017 13,735 77,189 772,649 Charges for services - - - - 270,329 -
Reimbursements - - - - 106,380 -
Other revenues - - - - 389,809 -
Total revenues 431,375 - 122,523 13,735 100,980 11,341,962 EXPENDITURES:
Current:
General government - - - - 1,586,796 -
Public safety - - - - 4,798,260 -
Public works - - 129,736 - 9,362 1,032,211
Community development - - - - 285,177 -
Parks and recreation 6,158 - - - 644,093 -
Capital outlay 33,936 - - - 1,757,344 -
Debt service:
Principal - - - - - 48,978
Interest and fiscal charges - - - - - 751
Total expenditures 40,094 - 129,736 - 9,362 10,153,610
REVENUES OVER (UNDER)
EXPENDITURES 391,281 - (7,213) 13,735 91,618 1,188,352
OTHER FINANCING SOURCES (USES):
Transfers in - - - - 1,188,415 -
Transfers out - - - - (1,192,298) -
Total other financing sources (uses) - - - - - (3,883)
Net change in fund balances 391,281 - (7,213) 13,735 91,618 1,184,469 FUND BALANCES:
Beginning of year (460,387) - 116,369 323,230 1,813,207 14,321,336 End of year $ (69,106) $ - $ 109,156 $ 336,965 $ 1,904,825 $ 15,505,805 (Concluded)
Special Revenue Funds
20 City of Corning, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2025
Capital Capital GovernmentFund Based Debt Compensated Asset Asset Pension wide Functions/Programs Totals Service Absences Depreciation (Additions)/Retirement Adjustments Plan Totals Governmental activities:
General government $ 1,586,796 $ (32,883) $ (251,711) $ 53,335 $ (248,712) $ (104,874) $ 902,141 $ 1,904,092 Public safety 4,798,260 - 209,472 - - 5,007,732 -
Public works 1,032,211 - 237,582 - - 1,269,793 -
Community development 285,177 - - - - 285,177 -
Parks and recreation 644,093 - 85,426 - - 729,519 -
Capital outlay 1,757,344 - - - (1,757,344) - - -
Debt service/Interest
Principal 48,978 (48,978) - - - - - -
Interest 751 - - - - - - 751
Total governmental activities $ 10,153,610 $ (81,861) $ (251,711) $ 585,815 $ (2,006,056) $ (104,874) $ 902,141 $ 9,197,064 The accompanying notes are an integral part of these basic financial statements. 21 City of Corning, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2025
Net change in fund balances - total governmental funds $ 1,184,469 Capital asset purchases capitalized $ 2,006,056
Disposal of capital assets 104,874
Depreciation expense (585,815) 1,525,115
Leases 3,812 3,812
Principal retirement 81,861
Change in compensated absences 251,711 333,572
Pension Plan (902,141)
Change in Net Position of governmental activities $ 2,144,827 Amounts reported for governmental activities in the Statement of Activities are different because:
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:
The accompanying notes are an integral part of these basic financial statements.
In the governmental funds revenues are recognized when they are measurable and available. In the government-wide statements revenues are recognized when earned, regardless of when they are received. The reconciliation adjusts for differences in revenue recognition timing.
Certain employee benefit obligations are recorded on a pay-as-you-go basis in the governmental funds, but are accrued as liabilities in the Statement of Net Position:
Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:
22 This page intentionally left blank.
23 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - Major Funds
For the year ended June 30, 2025
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments 7,419,700 $ 7,419,700 $ 7,036,627 $ (383,073) Licenses and permits 298,000 298,000 210,777 (87,223)
Fines and forfeitures 18,000 18,000 15,148 (2,852)
Intergovernmental 178,000 178,000 - (178,000)
Use of money and property 66,000 66,000 358,702 292,702 Charges for services 230,400 230,400 270,329 39,929
Reimbursements 199,800 199,800 106,380 (93,420)
Other revenues 279,980 279,980 294,681 14,701
Total revenues 8,689,880 8,689,880 8,292,644 (397,236)
EXPENDITURES:
Current:
General government 1,624,048 1,624,048 1,551,001 73,047 Public safety 4,298,146 4,298,146 3,895,700 402,446
Public works 1,119,909 1,119,909 495,564 624,345
Community development 325,539 325,539 250,840 74,699
Parks and recreation 1,103,018 1,103,018 548,762 554,256 Debt service: -
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 8,470,660 8,470,660 7,201,489 1,269,171
REVENUES OVER (UNDER)
EXPENDITURES 219,220 219,220 1,091,155 871,935
OTHER FINANCING SOURCES (USES):
Transfers in 360,500 360,500 360,500 -
Transfers out (1,188,415) (1,188,415) (1,192,298) (3,883) Total other financing sources (uses) (827,915) (827,915) (831,798) (3,883) Net change in fund balances (608,695) (608,695) 259,357 868,052 FUND BALANCES:
Beginning of year 6,134,616 6,134,616 6,134,616 -
End of year $ 5,525,921 $ 5,525,921 $ 6,393,973 $ 868,052 General Fund
The accompanying notes are an integral part of these basic financial statements.
Budgeted Amounts
24 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
6,200 6,200 143,779 137,579 - - 2,759 2,759
- - - - - - - -
- - - - - - - -
23,000 23,000 65,157 42,157 9,500 9,500 - (9,500)
29,200 29,200 208,936 179,736 9,500 9,500 2,759 (6,741) - - - - - - - -
1,261,389 1,261,389 896,974 364,415 30,900 30,900 5,586 25,314 33,333 33,333 1,031 32,302 - - - -
- - - - - - - -
10,000 10,000 9,926 74 - - - -
32,250 32,250 48,978 (16,728) - - - -
- - 751 (751) - - - -
1,336,972 1,336,972 1,192,539 144,433 30,900 30,900 5,586 25,314 (1,307,772) (1,307,772) (983,603) 324,169 (21,400) (21,400) (2,827) 18,573 827,915 827,915 827,915 - - - - -
- - - - - - - -
827,915 827,915 827,915 - - - - -
(479,857) (479,857) (155,688) 324,169 (21,400) (21,400) (2,827) 18,573 3,388,164 3,388,164 3,388,164 - 69,464 69,464 69,464 -
$ 2,908,307 $ 2,908,307 $ 3,232,476 $ 324,169 $ 48,064 $ 48,064 $ 66,637 $ 18,573 (continued)
Equipment Replacement Funds Police Special Revenues
Budgeted Amounts Budgeted Amounts
25 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - Major Funds, Continued
For the year ended June 30, 2025
0 Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments $ - $ - $ - $ -
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 100 100 1,307 1,207
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues 100 100 1,307 1,207
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Community development - - - -
Parks and recreation - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 100 100 1,307 1,207
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
0 Net change in fund balances 100 100 1,307 1,207
FUND BALANCES:
Beginning of year 30,776 30,776 30,776 -
End of year $ 30,876 $ 30,876 $ 32,083 $ 1,207
Budgeted Amounts
Economic Development Reserve
26 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $600 $ 600 $ - $ (600) $ - $ - $ - $ -
200 200 2,684 2,484 - - - -
- - - - - - - -
- - - - - - - -
600 600 9,185 8,585 - - 1,438 1,438
- - - - - - - -
- - - - - - - -
- - - - - - - -
1,400 1,400 11,869 10,469 - - 1,438 1,438
190,200 190,200 35,693 154,507 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
-
- - - - - - - -
- - - - - - - -
190,200 190,200 35,693 154,507 - - - -
(188,800) (188,800) (23,824) 164,976 - - 1,438 1,438
- - - - - - - -
- - - - - - - -
- - - - - - - -
(188,800) (188,800) (23,824) 164,976 - - 1,438 1,438
232,020 232,020 232,020 - 33,129 33,129 33,129 -
$ 43,220 $ 43,220 $ 208,196 $ 164,976 $ 33,129 $ 33,129 $ 34,567 $ 1,438 (continued)
Prop 47 Cycle 2
Budgeted Amounts
General Government Special Revenues
Budgeted Amounts
27 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - Major Funds, Continued
For the year ended June 30, 2025
0 Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments $ - $ - $ - $ -
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 300 300 1,685 1,385
Charges for services - - - -
Reimbursements - - - -
Other revenues 10,000 10,000 - (10,000)
Total revenues 10,300 10,300 1,685 (8,615)
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Community development - - 34,337 (34,337)
Parks and recreation - - - -
Debt service: -
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - 34,337 (34,337)
REVENUES OVER (UNDER)
EXPENDITURES 10,300 10,300 (32,652) (42,952)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
0 Net change in fund balances 10,300 10,300 (32,652) (42,952) FUND BALANCES:
Beginning of year 60,634 60,634 60,634 -
End of year $ 70,934 $ 70,934 $ 27,982 $ (42,952)
Housing Special Revenues
Budgeted Amounts
28 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
630,500 630,500 1,963,182 1,332,682 - - - -
20,000 20,000 156,635 136,635 - - 56 56
15,000 15,000 - (15,000) - - - -
- - - - - - - -
- 29,971 29,971 - - - -
665,500 665,500 2,149,788 1,484,288 - - 56 56
1,000 1,000 102 898 - - - -
- - - - - - - -
1,870,013 1,870,013 396,518 1,473,495 - - - -
- - - - - - - -
70,000 70,000 79,247 (9,247) - - - -
- - - - - - - -
- - - - - - - -
1,941,013 1,941,013 1,504,774 436,239 - - - -
(1,275,513) (1,275,513) 645,014 1,920,527 - - 56 56
- - - - - -
- - - - - - - -
- - - - - - - -
(1,275,513) (1,275,513) 645,014 1,920,527 - - 56 56
2,505,631 2,505,631 2,505,631 - 1,311 1,311 1,311 -
$ 1,230,118 $ 1,230,118 $ 3,150,645 $ 1,920,527 $ 1,311 $ 1,311 $ 1,367 $ 56 (continued)
Street Special Revenues
Budgeted Amounts
Wayfinding Maintenance
Budgeted Amounts
29 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - Major Funds, Continued
For the year ended June 30, 2025
0 Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments $ - $ - $ - $ -
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property - - 88 88
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues - - 88 88
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Community development - - - -
Parks and recreation - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES - - 88 88
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
0 Net change in fund balances - - 88 88
FUND BALANCES:
Beginning of year 2,078 2,078 2,078 -
End of year $ 2,078 $ 2,078 $ 2,166 $ 88
Rodgers Restoration
Budgeted Amounts
30 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - -
- - 2,779 2,779 15,000 15,000 13,735 (1,265)
- - - - - - - -
- - - - - - - -
- - - - - - -
- - 2,779 2,779 15,000 15,000 13,735 (1,265)
- - - - - - - -
- - - - - - - -
- - - - - - - -
38,259 38,259 - 38,259 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
38,259 38,259 - 38,259 - - - -
(38,259) (38,259) 2,779 41,038 15,000 15,000 13,735 (1,265) - - - - - - - -
- - - - - - - -
- - - - - - - -
(38,259) (38,259) 2,779 41,038 15,000 15,000 13,735 (1,265) -
71,094 71,094 71,094 - 323,230 323,230 323,230 -
$ 32,835 $ 32,835 $ 73,873 $ 41,038 $ 338,230 $ 338,230 $ 336,965 $ (1,265) Community Development Block Grant
Budgeted Amounts
General Capital Projects
Budgeted Amounts
31 City of Corning, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - Major Funds, Continued
For the year ended June 30, 2025
0 Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments $ - $ - $ - $ -
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental 950,000 950,000 431,080 (518,920)
Use of money and property - - 295 295
Charges for services - - - -
Reimbursements - - - -
Other revenues - - -
Total revenues 950,000 950,000 431,375 (518,625)
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Community development - - - -
Parks and recreation 945,000 945,000 6,158 938,842
Debt service: -
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 945,000 945,000 40,094 904,906
REVENUES OVER (UNDER)
EXPENDITURES 5,000 5,000 391,281 386,281
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
0 Net change in fund balances 5,000 5,000 391,281 386,281 FUND BALANCES:
Beginning of year (460,387) (460,387) (460,387) -
End of year $ (455,387) $ (455,387) $ (69,106) $ 386,281 (continued)
Grant Funds
Budgeted Amounts
32 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - 228,000 228,000 119,506 (108,494)
- - - - 3,017 3,017
- - - - - - - -
- - - - - - - -
- - - - - - -
- - - - 228,000 228,000 122,523 (105,477)
- - - - - - - -
- - - - - - - -
- - - - 123,600 123,600 129,736 (6,136)
- - - - - - -
- - - - - - - -
-
- - - - - - - -
- - - - - - - -
- - - - 123,600 123,600 129,736 (6,136)
- - - - 104,400 104,400 (7,213) (111,613)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 104,400 104,400 (7,213) (111,613)
- - - - 116,369 116,369 116,369 -
$ - $ - $ - $ - $ 220,769 $ 220,769 $ 109,156 $ (111,613) (concluded)
Housing Grant
Budgeted Amounts
Gas Tax Funds
Budgeted Amounts
33 Fund
Major Funds:
Water Fund
Sewer Fund
Solid Waste Fund
Airport Fund
Transportation Center Fund
ENTERPRISE FUNDS
Description
Accounts for the operation and maintenance of the City’s water treatment and distribution system.
Accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.
Accounts for all activities associated with the operation and maintenance of providing solid waste services.
Accounts for the operation and maintenance, and development of airport facilities.
Accounts for all activities associated with the operation and maintenance of the City's transit center.
34 City of Corning, California
Statement of Net Position
Proprietary Funds
June 30, 2025
Solid Transportation
Water Sewer Waste Airport Center
Enterprise Enterprise Enterprise Enterprise Fund Totals ASSETS
Current assets:
Cash and investments $ 876,408 $ 3,371,828 -$ 105,258$ $ 4,353,494 - $ Restricted cash and investments 251,066 1,905 - - 252,971 - Receivables:
Accounts 50,331 133,540 - - 183,871 -
Lease 514,641 - - 165,405 61,145 741,191
Total current assets 1,177,805 4,021,914 - 270,663 61,145 5,531,527 Noncurrent assets:
Capital assets, net 3,119,761 3,958,634 - 3,290,544 5,167 10,374,106 Total noncurrent assets 3,119,761 3,958,634 - 3,290,544 5,167 10,374,106 Total Assets 4,297,566 7,980,548 - 3,561,207 66,312 15,905,633
DEFFERRED OUTFLOWS OF RESOURCES
Pension plan 272,376 83,485 - 2,037 1,502 359,400
Total assets and deferred outflows of resources $ 4,569,942 $ 8,064,033 -$ 3,563,244 $ $ 67,814 $ 16,265,033
LIABILITIES
Current liabilities:
Accounts payable & accrued liabilities $ 45,137 $ 17,607 -$ $ - $ 2,261 $ 65,005 Accrued payroll 11,550 8,967 - - - 20,517
Due to other funds - - - 16,638 - 16,638
Interest payable 33,056 53,878 - - - 86,934
Deposits payable 32,143 - - - - 32,143
Compensated absences - current portion 8,601 1,889 - - - 10,490 Due within one year 200,000 175,000 - - 375,000 -
Total current liabilities 330,487 257,341 - 18,899 - 606,727 Noncurrent liabilities:
Compensated absences 20,069 4,407 - - - 24,476
Due after one year 2,000,000 3,810,000 - - 5,810,000 -
Net pension liability 868,873 509,920 - 12,355 4,306 1,395,454 Total noncurrent liabilities 2,888,942 4,324,327 - 12,355 4,306 7,229,930 Total liabilities 3,219,429 4,581,668 - 12,355 23,205 7,836,657
DEFERRED INFLOWS OF RESOURCES
Pension plan 66,649 69,538 - 1,909 198 138,294
Leases 514,273 - - 156,886 56,690 727,849
Total deferred inflows of resources 66,649 583,811 - 158,795 56,888 866,143 Net Position:
Net investment in capital assets 1,119,761 148,634 - 3,290,544 5,167 4,564,106 Unrestricted 164,103 2,749,920 - 101,550 (17,446) 2,998,127 Total net position 1,283,864 2,898,554 - 3,392,094 (12,279) 7,562,233 Total liabilities, deferred inflows of resources
and net position $ 4,569,942 $ 8,064,033 -$ 3,563,244 $ $ 67,814 $ 16,265,033 The accompanying notes are an integral part of these basic financial statements. 35 City of Corning, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025
Solid Transportation
Water Sewer Waste Airport Center
Enterprise Enterprise Enterprise Enterprise Fund Totals OPERATING REVENUES:
Charges for service $ 1,813,893 $ 2,287,784 -$ $ - $ 4,101,677 - $ Other operating revenue 46,741 321,275 - - 368,016 -
Total operating revenues 1,860,634 2,609,059 - - 4,469,693 - -
OPERATING EXPENSES:
Salaries and benefits 540,159 278,900 - 1,401 698 821,158 Materials and supplies 93,100 31,021 - 1,368 125,489 -
Repairs and maintenance 68,509 23,807 - 780 30,515 123,611 Utilities 368,358 177,084 - 5,068 20,979 571,489
Insurance 119,168 100,221 - 2,569 119 222,077
Taxes and fees - - - 295 - 295
Contractual services 102,316 855,141 - 2,596 960,053 -
Rents 745 745 - - - 1,490
Depreciation 186,567 203,995 - 79,014 469,576 -
Other expenses 84,200 143,749 72 1,873 229,960 66
Total operating expenses 1,563,122 1,814,663 72 94,964 52,377 3,525,198 OPERATING INCOME 297,512 794,396 (72) (94,964) (52,377) 944,495 NONOPERATING REVENUES (EXPENSES):
Intergovernmental revenues (expenses) - - - 10,000 10,000 - Interest revenue 39,853 118,200 - 25,834 16,948 200,835 Interest expense (141,154) (158,325) - - (299,479) -
Total non-operating revenues, net (101,301) (40,125) - 35,834 16,948 (88,644) NET INCOME BEFORE TRANSFERS 196,211 754,271 (72) (59,130) (35,429) 855,851 Transfers in 100,000 300,000 3,883 - 403,883 -
Transfers out (100,000) (300,000) - - (400,000) -
Total transfers - 3,883 - - - 3,883
CHANGE IN NET POSITION 196,211 754,271 3,811 (59,130) (35,429) 859,734 NET POSITION:
Beginning of year 1,087,653 2,144,283 (3,811) 3,451,224 23,150 6,702,499 End of year $ 1,283,864 $ 2,898,554 -$ 3,392,094 $ $ (12,279) $ 7,562,233 The accompanying notes are an integral part of these basic financial statements. 36 City of Corning, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Water Sewer
Enterprise Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers/users for services provided $ 1,885,942 $ 2,615,479 Cash payments to suppliers for goods and services (809,011) (1,465,643) Cash payments to employees for services (558,616) (345,124) Net cash provided by operating activities 518,315 804,712 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers received - -
Transfers paid - -
Net cash used by noncapital financing activities - -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital grants received - -
Acquisition and construction of capital assets (77,269) (60,000) Principal paid on long term debt (190,000) (165,000)
Interest paid on long term debt (141,154) (158,325)
Net cash (used) by capital and related financing activities (408,423) (383,325) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 39,853 118,200
Net cash provided by investing activities 39,853 118,200 Net increase (decrease) in cash and cash equivalents 149,745 539,587 CASH AND CASH EQUIVALENTS:
Beginning of year 977,729 2,834,146
End of year $ 1,127,474 $ 3,373,733
Presentation in Statement of Financial Position:
Cash and investments $ 876,408 $ 3,371,828
Restricted cash and investments 251,066 1,905
Total Cash and investments $ 1,127,474 $ 3,373,733
Reconciliation of income from operations to net
cash provided by operating activities:
Operating income $ 297,512 $ 794,396
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation 186,567 203,995
Pension expense 23,554 9,156
(Increase) decrease in current assets:
Accounts receivable 22,345 6,512
Lease receivable - 10,091
Increase (decrease) in liabilities:
Accounts payable 27,385 (133,875.00)
Accrued liabilities 7,797 (3,198)
Deposits payable 2,963 -
Compensated absences (49,808) (72,182)
Deferred inflow - leases - (10,183)
Net cash provided by operating activities $ 518,315 $ 804,712 There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2025.
The accompanying notes are an integral part of these basic financial statements. 37 Solid Transportation
Waste Airport Center
Enterprise Enterprise Fund Totals
$ 72 $ (2,994) $ 4,890 $ 4,503,389
(72) (14,765) (51,028) (2,340,519)
- (1,220) 16,030 (888,930)
- (18,979) (30,108) 1,273,940
3,883 - - 3,883
(3,883) - - (3,883)
- - - -
- 10,000 - 10,000
- - - (137,269)
- - - (355,000)
- - - (299,479)
- 10,000 - (781,748)
- 25,834 16,948 200,835
- 25,834 16,948 200,835
- 16,855 (13,160) 693,027
- 88,403 13,160 3,913,438
$ - $ 105,258 $ - $ 4,606,465
$ - $ 105,258 $ - $ 4,353,494
- - - 252,971
$ - $ 105,258 $ - $ 4,606,465
$ (72) (94,964) $ (52,377) $ 944,495
- 79,014 - 469,576
- 181 90 32,981
72 - 5,566 34,495
- 6,108 8,773 24,972
- (216) 651 (106,055)
- 16,638 21,237
- - - 2,963
- - - (121,990)
- (9,102) (9,449) (28,734)
$ - $ (18,979) $ (30,108) $ 1,273,940
38 This page intentionally left blank.
39 Fund
Private Purpose Trust Funds
JT Levy Trust
Ridell Library Trust Fund Finances a Scholarship initiated many years ago by the Estate of J. T Levy and administered by the City for graduating Valedictorian(s) at Corning Union High School.
FIDUCIARY ACTIVITIES
The William W. Ridell Library Trust was established many years ago by an appreciative patron with the stipulation that the funds, by a joint decision of the County Librarian and Corning Library Commission, are “to be exclusively used for major expenditures, not operating expenses” associated with the operation of the Corning Library. Interest earned may be used for important Library priorities by a joint recommendation of the Corning Library Commission and County Librarian to the City Council for final approval.
Private Purpose Trust Funds are used for resources held for other individuals and entities in a manner similar to private enterprise.
Description
40 City of Corning, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2025
Private
JT Ridell Library Purpose
Levy Trust Trust Trust Fund
ASSETS
Current assets:
Cash and investments $ 25,139 $ 6,555 $ 31,694
Accounts receivable - - -
Total assets $ 25,139 $ 6,555 $ 31,694
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ - $ - $ -
Total liabilities - - -
NET POSITION
Net position held in trust for :
Specific purposes 25,139 6,555 31,694
Total Net Position 25,139 6,555 31,694
Total liabilities and net position $ 25,139 $ 6,555 $ 31,694 The accompanying notes are an integral part of these basic financial statements. 41 City of Corning, California
Statement of Changes in Fiduciary Net Assets
Private Purpose Trust Funds
For the year ended June 30, 2025
Private
JT Ridell Library Purpose
Levy Trust Trust Trust Fund
ADDITIONS:
Investment income $ 1,037 $ - $ 1,037
Total operating revenues 1,037 - 1,037
DEDUCTIONS:
- - -
Other expenses 750 220,630 221,380
Total operating expenses 750 220,630 221,380
CHANGE IN FIDUCIARY NET ASSETS 287 (220,630) (220,343)
NET ASSETS:
Beginning of year 24,852 227,185 252,037
End of year $ 25,139 $ 6,555 $ 31,694
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43 44
NOTES TO BASIC FINANCIAL STATEMENTS
City of Corning, California
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Index to Notes to Basic Financial Statements
45 Page
Note 1 - Summary of Significant Accounting Policies .................................................................... 46 Financial Reporting Entity ............................................................................................................. 46 Basis of Presentation ...................................................................................................................... 47 Measurement Focus ....................................................................................................................... 50 Basis of Accounting ....................................................................................................................... 51 Assets, Liabilities, and Equity ....................................................................................................... 51 Revenues, Expenditures, and Expenses ......................................................................................... 57 Budgetary Accounting ................................................................................................................... 58 Note 2 – Cash and Investments......................................................................................................... 59 Note 3 – Accounts Receivable ........................................................................................................... 62 Note 4 – Loans and Notes Receivable .............................................................................................. 62 Note 5 – Leases Receivable ................................................................................................................ 64 Note 6 – Capital Assets ...................................................................................................................... 65 Note 7 – Accounts Payable and Accrued Liabilities ....................................................................... 67 Note 8 – Long-term Liabilities .......................................................................................................... 67 Note 9 – Net Position/Fund Balances ............................................................................................... 70 Note 10 – Interfund Transactions .................................................................................................... 71 Note 11 – Risk Management ............................................................................................................. 73 Note 12 – Public Employees’ Retirement System ........................................................................... 74 Note 13 – Deferred Compensation Plan ........................................................................................... 80 Note 14 – Other Information ............................................................................................................ 80 Note 15 – New Accounting Pronouncements ................................................................................... 81 City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Corning (City) was incorporated in 1907, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: police and fire protection; sanitation, electric, water, and wastewater services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events.
The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.
In addition, the City applies all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements.
The more significant of these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced.
Financial Reporting Entity
The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.
The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.
As required by U.S. GAAP, the accompanying basic financial statements present the City and its component units. Component units are entities for which the City is considered to be financially accountable. GASB defines component units as legally separate entities that meet any one of the following tests:
1. The component unit’s governing body is substantively the same as the governing body of the City and:
a. there is a financial benefit or burden relationship between the City and the component unit or,
b. Management of the City has operational responsibility for the component unit.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Financial Reporting Entity, continued
2. The component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City even though it does not provide services to it.
3. The component unit’s total debt outstanding, including leases, is expected to be repaid entirely or almost entirely with resources of the City.
Management determined that there are no component units based on the criteria above.
Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions restricted to the operating or capital requirements of a specific function or segment. All taxes and internally dedicated resources are reported as general revenues rather than program revenues.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of selfbalancing accounts, which constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least ten percent of the corresponding total for all funds of that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least five percent of the corresponding total for all governmental funds combined.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Basis of Presentation, Continued
The City reports the following major funds:
General Fund
Equipment Replacement Fund
Police Special Revenue
Economic Development Reserve
General Government Special Revenue
Prop 47 Cycle 2
Housing Special Revenue
Street Special Revenue
Wayfinding Maintenance
Rodgers Restoration
CDBG Programs
General Capital Projects
Grant Funds
Housing Grant
Gas Tax
Descriptions of these funds are included on the divider page preceding the Governmental Funds Balance Sheet.
The funds of the financial reporting entity are described below:
Governmental Funds
General Fund - The General Fund is used to account for resources traditionally associated with the City which are not required legally or by sound financial management to be accounted for in another fund. From this fund are paid the City’s general operating expenditures, the fixed charges, and the capital costs that are not paid through other funds.
Equipment Replacement Fund - Funds receive periodic transfers from the General Fund and/or Measure A. These accounts also hold proceeds from the sale of surplus Department Equipment.
Police Special Revenue - Accounts for specific police related revenues and related expenditures.
Economic Development Reserve - This fund receives periodic transfers from the General Fund for current and future economic development projects and programs.
General Government Special Revenue - This fund receive periodic transfers from the General Fund for current and future equipment needs.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Governmental Funds, Continued
Prop 47 Cycle 2 - This fund accounts for fund reimbursements for the Restore Program.
Housing Special Revenue - Accounts for grant revenues and related expenditure for specific Housing Needs.
Street Special Revenue - State and Local revenues, such as Local Transportation Funds, that are specifically designated for street and related transportation purposes.
Wayfinding Maintenance - Funds were deposited by participating businesses for the purchase and installation of the two (2) ladder board entrance directional signs at the intersections of Hwy. 99W/South and Hwy. 99W/Solano Streets.
Rodgers Restoration - Represents residual funds from the restoration Rodger’s Theatre project.
CDBG Programs - Represents principal and interest received on Housing Program and Economic Development Loans.
Grant Funds - Accounts for grant revenues and related expenditure for a variety of limited purpose grants.
Housing Grant - Represents balances and deferred revenues related to housing and economic loans.
Gas Tax - State funds received from the sale of gasoline throughout the State which may only be expended for select system Street and Transportation Construction or Maintenance.
General Capital Projects - The City is involved in various capital projects. In order to properly track revenues and related expenditures, separate funds have been established.
Proprietary Funds
Enterprise Funds
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.
The Water Enterprise Fund - accounts for the operation and maintenance of the City’s water treatment and distribution system.
The Sewer Fund - accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Proprietary Funds, Continued
The Solid Waste Fund - accounts for all activities associated with the operation and maintenance of providing solid waste services.
The Airport Fund - accounts for the operation and maintenance, and development of airport facilities.
The Transportation Center Fund - accounts for all activities associated with the operation and maintenance of the City's transit center.
Fiduciary Funds
Private Purpose Trust Funds
Private Purpose Trust Funds - account for resources held for other individuals or entities in a manner similar to private enterprise.
Measurement Focus
Measurement focus is a term used to describe which transactions are recorded within the various financial statements.
On the government-wide Statement of Net position and the Statement of Activities, governmental and business-type activities are presented using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Fund equity is classified as Net position, which serves as an indicator of financial position.
In the fund financial statements, the “current financial resources” measurement focus is used for governmental funds. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.
The enterprise funds and private purpose trust funds utilize an “economic resources” measurement focus.
The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. Enterprise fund and private purpose trust funds equity is classified as net position.
Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Basis of Accounting
In the government-wide Statement of Net position and Statement of Activities, governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means the amount is collectible within the current period or soon enough thereafter to pay current liabilities. The City considers all revenues as available if they are collected within sixty (60) days of the end of the current fiscal period, except for sales tax which has a ninety (90) day availability period.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.
The enterprise funds and agency funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
Assets, Liabilities, and Equity
Cash Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.
The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net position. See Note 10 for details of interfund transactions, including receivables and payables at year-end.
Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, intergovernmental subventions, interest earnings, and expense reimbursements.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.
Inventory
Inventories are physically counted at year-end and valued at their average cost. All inventories consist of expendable supplies held for consumption. The cost is recorded as inventory when items are purchased and as expenditures when the items are used (the consumption method of accounting for inventories).
The weighted average method is used for establishing the cost of inventory consumed.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a reservation of fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. “Right-to-use” assets are defined by the government as assets with an initial present value of more than $5,000 and an estimated life in excess of one year. Such assets are recorded at present value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:
Depreciable Asset Estimated Lives
Buildings 10-40 years
Improvements 10-40 years
Machinery and equipment 3-20 years
Utility System 5-50 years
Infrastructure 15-50 years
Right-to-use assets Life of Lease
For all infrastructure systems, the City elected to use the Basic Approach. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.
These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 1). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following time frames are used for pension reporting:
CalPERS:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Other Postemployment Healthcare Benefits (OPEB)
Management has determined that there are not material OPEB benefits to report.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government has one item that qualifies for reporting in this category, deferred charges on the City’s pension plans reported on the government-wide statement of net position.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only two types of these items, deferred inflows on the City’s pension plans and deferred inflows on the City’s leases reported in the government-wide statement of net position.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
Compensated Absences
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave, however, does not vest to the employees and is payable only when sick leave is taken. Unused vacation and sick leave have been accrued in the accompanying government-wide financial statements and the accompanying proprietary fund financial statements.
Leases
Lease-related amounts are recognized at the inception of leases in which the City is the lessor. The deferred inflow of resources is recorded in an amount equal to the corresponding lease receivable plus certain additional amounts received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a systematic and rational manner over the term of the lease.
Unearned Revenues
In the government-wide financial statements, unearned revenue is recorded for transactions for which revenues have not been earned. In the fund financial statements, unearned revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unearned revenues when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when resources are received by the City before it has a legal claim to them. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the combined balance sheet and revenue is recognized.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method, which does not materially differ from the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Equity Classification
Government-Wide Statements
For government-wide reporting as well as in proprietary funds, fund equity is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balance of bonds, notes and other debt that are attributed to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt are included in this component of net position.
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of assets, deferred outflows or resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.
Fund Financial Statements
In the fund financial statements, governmental funds aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories; or (b) legally or contractually required to be maintained intact.
The spendable portion of the fund balance comprises the remaining four classifications; restricted, committed, assigned, and unassigned.
Restricted fund balance. This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Assets, Liabilities, and Equity, Continued
Committed fund balance. These amounts can only be used for specific purposes pursuant to constraints imposed ordinances of the City Council – the government’s highest level of decision making authority.
Those committed amounts cannot be used for any other purpose unless the City Council removes the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for the use in satisfying those contractual requirements.
Assigned fund balance. This classification reflects the amounts constrained by the City Council’s “intent” to be used for specific purposes, but are neither restricted nor committed. By Council Policy the City Council and City Manager have the authority to allocate amounts to be used for specific purposes. City Council approves the appropriation; however, the budget ordinance authorizes the City Manager to modify the appropriations by resource or appropriation within a functional area or fund.
Unassigned fund balance. This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
Spending Policy
When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources-committed, assigned, and unassigned-in order as needed. The City has no formal policy of assignment of fund balance. So it is presumed that the order of spending is first committed fund balance, then assigned fund balance, and last of all, unassigned fund balance.
Revenues, Expenditures, and Expenses
Property Tax
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes.
The County of Tehama assesses, bills, and collects property taxes for the City. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1. They become due November 1 and February 1 and become delinquent December 10 and April 10. City property tax revenue is recognized when levied to the extent that it is available (collected within 60 days of year-end).
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Revenues, Expenditures, and Expenses, Continued
Interfund Transfers
Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated.
Budgetary Accounting
The operating budget of the City is adopted by the City Council prior to July 1 each year primarily on a cash basis. The City Manager is authorized to transfer budget amounts between divisions of a department within any fund; however, any revisions that alter the total expenditures of any fund require City Council resolution.
Budget information is adopted and presented for the general, special revenue and capital project funds.
The presentations represent original appropriations adjusted for supplemental appropriations, if any, made during the year. The City does not formally adopt a budget for debt service funds. The bond documents are the controlling factor. Portions of fund equity are recorded as Restrictions when segregation for future use is necessary and the funds are, therefore, not available for future apportionment or expenditures.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications
Certain amounts have been reclassified to provide for comparable results on a year to year basis.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
59 2. CASH AND INVESTMENTS
At June 30, 2025, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair value:
Fair
<1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank $ - -$ $ 2,390,006 - $ $ 2,390,006
Petty cash - - - 1,350 1,350
Total pooled items - - 2,391,356 - 2,391,356
Cash and cash equivalents
Cash with fiscal agent - Money Market Funds 252,971 - - 252,971 - Pooled investments, at fair value State of California Local Agency Investment Fund 18,092,060 - - 18,092,060 - Total pooled investments - interest obligations 18,092,060 - - 18,092,060 - Total cash equivalents and investments pooled 18,092,060 $ $ - $ 2,391,356 - $ $ 20,736,387 Amounts reported in:
Governmental activities $ 16,098,228
Business-type activities - Unrestricted 4,353,494
Business-type activities - Restricted cash with fiscal agent 252,971 Fiduciary activities 31,694
Total $ 20,736,387
Maturities (in years)
Demand Deposits
At June 30, 2025, the carrying amount of the City’s deposits was $2,390,006 and the balances in financial institutions were $1,778,202. Of the balance in financial institutions, $250,000 was covered by federal depository insurance and $1,528,202 was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the City and other governmental agencies, but not in the name of the City. As of June 30, 2025, the City’s investments were held by the City’s custodial agent, but not in the City’s name, and were insured up to specified limits by the Securities Investor Protection Corporation (SIPC) and supplemental private insurance up to a limit of $150 million.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
60 2. CASH AND INVESTMENTS, continued
Investments
The California Government Investment Code and the investment policy of the City authorize the City to invest in obligations, participation, or other instruments of the U.S. Government or its agencies, state and municipal bonds, commercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided by Standard & Poor’s Corporation or Moody’s Investor Service, Inc., bankers’ acceptances, repurchase agreements, mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer receivable-backed bonds, and medium-term notes (issued by U.S. Corporations) of a maximum of five years with a minimum rating category of “A” by a nationally recognized rating service, notes, bonds, or other obligations s ty security interest, and the State Treasurer’s Investment Pool (LAIF).
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position or Balance Sheet, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.
Investments in Local Agency Investment Fund
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2025 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
61 2. CASH AND INVESTMENTS, continued
As of June 30, 2025, the City had $18,092,060 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes (2.02%) and Asset-Back Securities (1.79%). LAIF determines the value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2025, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2025.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City varies its maturity dates throughout the five-year maturity period. The investments with maturities greater than 5 years pertain to investment agreements within the bond issues.
These agreements afford the City long-term fixed interest rates for the duration of the bond issue, with the option to utilize those funds for debt service payments and at the City’s option replenish those funds at the fixed rate until the maturity of the investment agreements. The City has no formal policy regarding interest rate risk.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type. As of June 30, 2025, the City’s investments in LAIF are not rated as LAIF is a State sponsored investment pool. The City policy limits the percentage invested in various instruments by category.
Disclosures Relating to Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. State law restricts the City's investments in commercial paper to 40% of its investment pool and to 10% per issuer and corporate bonds and medium-term notes to 30% of its investment pool and to 10% per issuer, and banker's acceptances to 15% of its investment pool and to 10% per issuer. The City has invested all cash, other than deposits and imprest cash, in the California Local Agency Investment Fund (LAIF). At June 30, 2025 the City's investments were in compliance with concentration of credit risk State law.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
62 3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2025:
Governmental Activities
Interest receivable $ 183,792
Business-type activities
Accounts receivable $ 183,871
These amounts resulted in the following concentrations in receivables:
Individuals/Business 50.01%
Financial 49.99%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.
4. LOANS AND NOTES RECEIVABLE
Through the City’s various housing rehabilitation funds, the City has loaned funds to qualifying individuals within the City of Corning. Interest rates vary depending on the terms of the loan. Interest is accrued on the loans that bear interest.
Loans and notes receivable for the year ended June 30, 2025, consisted of the following:
Beginning Ending
July 1, 2024 Additions Deletions June 30, 2025
Community Development Block Grant
CDBG 1987 $ 37,402 $ - $ - $ 37,402
CDBG 1990 38,559 - - 38,559
CDBG 1992 3,010 - - 3,010
CDBG Reuse 41,055 - - 41,055
Salado HOME loan 3,900,000 - - 3,900,000
2013 HOME 110,612 - - 110,612
Total loans/notes receivable $ 4,130,638 $ - $ - $ 4,130,638 City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
63 4. LOANS AND NOTES RECEIVABLE, continued
The following is a summary of the loans and notes receivable outstanding as of June 30, 2025:
Community Development Block Grant - The City participates in a CDBG Revolving loan program. The program is federally funded and provides housing rehabilitation loans to eligible applicants. The City makes loans to resident homeowners who qualify as low income, some of which are deferred and are not repaid until the title to property changes.
The balance of these loans at June 30, 2025, was $120,026.
Salado HOME Loans – The City participates in a HOME loan program to finance a 48- unit rental housing project, with 47 units designated for low and very low-income households. The loan interest rate is 3 percent over a 55-year term. The City makes loans available to resident homeowners who qualify as low income. The balance of these loans at June 30, 2025, was $3,900,000.
2013 HOME – The State and Federal governments have, over the years, offered grant programs whereby eligible homeowners and some business can obtain zero or low interest loans to make needed property improvements. Depending on the property owner’s income these loans could be either zero or low interest and either amortized or deferred.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
64 5. LEASES RECEIVABLE
For the year ended June 30, 2025, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.
As of 06/30/2025, Corning, CA had 23 active leases. The leases have receipts that range from $240 to $32,400 and interest rates that range from 0.0% to 4.0%. As of June 30, 2025, the total combined value of the lease receivable is $2,178,355, the total combined value of the short-term lease receivable is $78,772, and the combined value of the deferred inflow of resources is $2,121,263.
Fiscal Year
2026 $ 78,772 $ 14,544 $ 93,316
2027 80,068 13,714 93,782
2028 81,263 12,851 94,114
2029 82,350 11,959 94,310
2030 83,489 11,024 94,513
2031 - 2035 389,371 42,001 431,371
2036 - 2040 347,419 23,660 371,079
2041 - 2045 324,751 9,803 334,553
2046 - 2050 251,406 1,089 252,495
2051 - 2055 212,455 - 212,455
2056 - 2060 85,555 - 85,555
2061 - 2065 50,455 - 50,455
2066 - 2070 50,455 - 50,455
2071 - 2075 50,455 - 50,455
2076 10,091 - 10,091
Total Principal Payments 2,178,355 $
Principal and Interest Expected to Maturity
Principal
Payments
Interest
Payments
Total
Payments
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
65 6. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2025, was as follows:
Balance Balance
June 30, 2024 Additions Deletions Adjusments June 30, 2025 Governmental activities:
Nondepreciable assets:
Land $ 954,855 $ - $ - $ - $ 954,855
Construction in progress 341,727 33,936 (301,727) (40,000) 33,936 Total nondepreciable assets 1,296,582 33,936 (301,727) (40,000) 988,791 Depreciable assets:
Buildings 2,077,760 424,128 - - 2,501,888
Parks 4,258,876 234,390 - - 4,493,266
Fire Department 2,004,791 - - 56,870 2,061,661
Police Department 881,233 345,986 - - 1,227,219
Machinery and equipment 664,835 134,395 - 88,004 887,234 Infrastructure 11,917,953 1,134,939 - 13,052,892 - Total depreciable assets 21,805,448 2,273,838 - 144,874 24,224,160 Total 23,102,030 2,307,774 (301,727) 104,874 25,212,951 Accumulated depreciation:
Buildings (1,602,330) (53,335) - (1,655,665) - Parks (934,200) (85,426) - (1,019,626) - Fire Department (1,277,862) (114,345) - (1,392,207) - Police Department (641,423) (95,127) - - (736,550) Machinery and equipment (421,021) (46,377) - - (467,398) Infrastructure (1,816,717) (191,205) - (2,007,922) - Less accumulated depreciation (6,693,553) (585,815) - (7,279,368) - Net depreciable assets 15,111,895 1,688,023 - 144,874 16,944,792 Total net capital assets $ 16,408,477 $ 1,721,959 $ (301,727) $ 104,874 $ 17,933,583 Depreciation expense for capital assets was charged to functions as follows:
General government $ 53,335
Public safety 209,472
Public work 237,582
Parks and recreation 85,426
$ 585,815
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
66 6. CAPITAL ASSETS, continued
Business-type capital asset activity for the year ended June 30, 2025, was as follows:
Balance Balance
June 30, 2024 Additions Deletions Adjustments June 30, 2025 Business-type activities
Nondepreciable assets:
Land $ 838,088 $ - $ - $ - $ 838,088
Construction in progress 334,775 37,269 (334,775) 37,269 Total nondepreciable assets 1,172,863 37,269 (334,775) - 875,357 Depreciable assets:
Buildings 2,652,532 - - - 2,652,532
Improvements 474,248 60,000 - - 534,248
Machinery and equipment 1,324,939 374,775 - - 1,699,714 Utility Property 22,183,380 - - 22,183,380 - Total depreciable assets 26,635,099 434,775 - 27,069,874 - Total 27,807,962 472,044 (334,775) 27,945,231 - Less accumulated depreciation (17,101,549) (469,576) - (17,571,125) - Net depreciable assets 9,533,550 (34,801) - - 9,498,749 Total net capital assets $ 10,706,413 $ 2,468 $ (334,775) $ 10,374,106 - $ Depreciation expense for capital assets was charged to functions as follows:
Water $ 186,516
Sewer 203,995
Airport 79,065
$ 469,576
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
67 7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2025:
Governmental Business-type
Activities Activities Total
Accounts payable $ 649,579 $ 65,005 $ 714,584
Accrued payroll and related liabilities 126,109 20,517 146,626 Total $ 775,688 $ 85,522 $ 861,210
These amounts resulted in the following concentrations in payables:
Vendors 83%
Employees 17%
Amounts do not indicate a significant concentration (greater than 25%) with any single vendor or employee.
8. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2025:
Balance Balance Due Within
July 1, 2024 Additions Retirements June 30, 2025 One Year Governmental Activities:
U.S. Bancorp Leasing $ 48,978 $ (48,978) $ - $ - Pacific Gas and Electric 222,311 (32,893) 189,418 32,893 Total governmental debt $ 271,289 -$ (81,871) $ $ 189,418 32,893$ Compensated absences 627,836 - (251,711) 376,125 112,838 Total governmental activities $ 899,125 $ - $ (333,582) $ 565,543 $ 145,731 Business-type activities
2017 Water and Sewer Revenue Refunding
Bonds $ 6,540,000 -$ (355,000) $ $ 6,185,000 375,000$
Total business-type activity debt 6,540,000 - (355,000) 6,185,000 375,000 Compensated absences 156,956 - (121,990) 34,966 10,490
Total business-type activities $ 6,696,956 $ - $ (476,990) $ 6,219,966 $ 385,490 City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
68 8. LONG-TERM LIABILITIES, continued
Governmental Activities
Fire Truck Leasing
On January 31, 2018, the City of Corning entered into a financing type lease with the U.S. Bancorp Government Leasing and Finance, Inc. for a Fire Truck in the original amount of $403,159. The lease is payable in quarterly installments of $16,101 with interest rate at 3.15%. The final payment was made on January 31, 2025.
Pacific Gas and Electric - Retrofit
In an arrangement with Pacific Gas and Electric (PG&E), the City contracted with independent parties in 2019 and 2020 to make certain energy retrofit modification to many of the City’s buildings. As part of that arrangement, the City received loan proceeds from PG&E in 2020-2021 totaling $354,669 to pay for the modifications. The no interest loan payments range from 49 to 120 months and are paid as a line item on the various monthly PG&E billings.
Business-type Activities
2017 Water and Sewer Revenue Refunding Bond
In March of 2017, the City of Corning entered into an agreement with Union Bank of California, N.A., to sell Revenue Refunding Bonds in the amount of $8,620,000. The Water Revenue Refunding Bonds in the amount of $3,460,000, and Sewer Revenue Refunding Bonds in the amount of $5,160,000, along with other available money, were used to refinance the 2005 Series B of the Certificates of Participation, the Installment Purchase Agreement for the Clark Well and the 1999 Certificates of Participation. The 2017 Bonds bear an interest rate of 3.25 percent. The payment of principal and interest is derived solely from water and sewer revenue. Interest is payable semiannually on March 1 and September 1. Principal payments are required each September 1.
Compensated Absences
The City records employee absences, such as vacation and holidays, for which it is expected that employees will be paid as compensated absences. Compensated absences had a balance of $411,091 at June 30, 2025, of that amount $123,328 is expected to be paid within a year.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
69 8. LONG-TERM LIABILITIES, continued
Debt Service
Future debt service for Governmental Activities at June 30, 2025, is as follows for all debt except compensated absences and claims liabilities:
Year Ending
June 30,
Principal Interest
2026 $ 32,893 -$
2027 32,893 - 2028 32,893 - 2029 32,893 - 2030 32,893 - 2031 - 2034 24,953 - Total $ 189,418 $ - Due within one year 32,893 $ -$ Due after one year 156,525 - Total $ 189,418 $ -
Governmental Activities
Pacific Gas and Electric Lease
Future debt service for Business-type Activities at June 30, 2025, is as follows:
Year Ending
June 30,
Principal Interest
2026 $ 375,000 $ 246,594
2027 385,000 227,844
2028 405,000 208,594
2029 250,000 188,344
2030 260,000 180,631
2031 - 2035 1,425,000 766,725
2036 - 2040 1,710,000 482,363
2041 - 2045 1,180,000 164,400
2046 - 2050 195,000 7,800
Total $ 6,185,000 $ 2,473,295
Due within one year $ 375,000 $ 246,594
Due after one year 5,810,000 2,226,701
Total $ 6,185,000 $ 2,473,295
Business Type Activities
2017 Refunding Bond
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
70 9. NET POSITION/ FUND BALANCES
Net position
Governmental Business-type
Activities Activities Total
Net investment in capital assets $ 17,744,164 $ 4,564,106 $ 22,308,270 Restricted 53,453 - 53,453
Unrestricted 11,932,258 2,998,127 14,930,385
Total $ 29,729,875 $ 7,562,233 $ 37,292,108
Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.
Fund Balance
Restricted and committed fund balance consisted of the following at June 30, 2025:
Restricted:
Police Special Revenue $ 53,453
Total Restricted $ 53,453
Committed:
Contingency $ 625,000
Total Committed: $ 625,000
The following describe the purpose of each restricted, and committed category used by the City:
Restricted
Police Special Revenue – represents amounts restricted for the City to fund law enforcement activities, including police K9 program, equipment purchases, and other related expenditures.
Committed
Contingencies – amounts reserved for contingencies represent funds set aside to meet unusual and/or unexpected needs of the City.
Excess of Expenditures over Appropriations:
Expenditures exceeded appropriations for the year ended June 30, 2025, for the following funds:
Fund Final Appropriations Excess
Major Funds
Housing Special Revenues $ - $ 34,337 $ (34,337)
Gas Tax Funds 123,600 129,736 (6,136)
Expenditures
These amounts were resolved through the use of existing fund balance.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
71 10. INTERFUND TRANSACTIONS
Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.
Due to and due from other funds consisted of the following as of June 30, 2025:
Due from Due to
Other Funds Other Funds
Governmental Funds
Major Funds:
General Fund $ 91,744 $ - Street Special Revenue - Grant Funds 75,106 Total Major Funds 91,744 75,106
Total Governmental Funds 91,744 75,106
Proprietary Funds
Transportation Center Fund - 16,638
Total Proprietary Funds - 16,638
Total Transfers $ 91,744 $ 91,744
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
72 10. INTERFUND TRANSACTIONS, continued
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
Transfers consisted of the following at June 30, 2025:
Transfers In Transfers Out
Governmental Funds
Major Funds:
General Fund $ 360,500 $ 1,192,298
Equipment Replacement Funds 827,915 - Total Governmental Funds 1,188,415 1,192,298 Proprietary Funds
Water:
Water Capital Replacement 100,000 - Water Enterprise Funds - 100,000 Sewer:
WWTP Sewer Expanse 160,000 - Capital Replacement WWTP 90,000 - Sewer Capital Replacement 50,000 - Sewer Enterprise - 300,000 Solid Waste Enterprise 3,883 - Total Proprietary Funds 403,883 400,000 Total Transfers $ 1,592,298 $ 1,592,298
The transfers out from the enterprise funds were primarily incurred to support street maintenance activities due to wear and tear on streets due to utility infrastructure maintenance and repairs, and from heavy trucks and buses.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
73 11. RISK MANAGEMENT
Description of Joint Powers Authority
The City is a member of the Northern California Cities Self Insurance Fund a joint powers authority (Authority) for liability insurance and workers' compensation purposes. The following joint venture disclosures made in compliance with GASB Code Section J50.103:
The Authority is comprised of 20 Northern California Cities and is organized under joint powers agreement pursuant to the California Government Code. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess liability coverage. Each member City has a representative on the Board of Directors. Officers are elected annually.
General Liability Insurance: Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city, including Corning, self-insure for the first $25,000 of each loss.
Participating cities shared in loss occurrences in excess of $25,000 up to $500,000 for fiscal year 2023.
Coverage in excess of $500,000 is provided through the California Joint Powers Insurance Risk Management Authority, a joint power authority organized to provide excess coverage for its members.
Specific coverage includes: comprehensive and general liability, personal injury, contractual liability, errors and omissions, and auto liability.
Worker's Compensation Insurance: Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. The City self-insured for the first $100,000 of each loss. Participating cities shared in loss occurrences in excess of $100,000 up to $500,000. For coverage above the $ coverage with limits of $5,000,000 per occurrence.
Condensed Financial Information of the Authority
Noted below is a condensed balance sheet of the Authorities Combined Worker's Compensation Insurance and Liability Insurance Fund as of June 30, 2024, the most recent available:
Assets $ 90,730,074
Liabilities 64,381,592
Net Position - Unrestricted $ 26,348,482
Claims and Judgments
The City accounts for material liability claims and judgment in accordance with GASB Code Section C50.110. When it is probable that a claim liability has been incurred at year end, the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. At June 30, 2025, the City, in the opinion of the City Attorney, had no material claims which would require loss provision in the financial statements. Small dollar claims and judgments are recorded as expenditures when paid.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
74 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, costsharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2025, are summarized as follows:
Miscellaneous Miscellaneous Second Tier
Hire date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit formula 2% @ 55 2% @ 60
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 63
Monthly benefits, as a % of eligible compensation 2% - 7% 1.4% - 2.4% Required employee contribution rates 7% 7%
Required employer contribution rates 12.52% 10.15%
PEPRA Miscellaneous Safety Plan
Hire date
On or after
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @ 62 3% @ 50
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 52 - 67 50
Monthly benefits, as a % of eligible compensation 1.0% to 2.5% 3% Required employee contribution rates 7.75% 9.0%
Required employer contribution rates 7.87% 27.32%
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
75 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued General Information about the Pension Plans
PEPRA Safety Fire PEPRA Safety Police
Hire date
On or after
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 57 50 - 57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 13.75% 13.75%
Required employer contribution rates 13.76% 13.76%
Safety Fire Second Tier Safety Police Second Tier
Hire date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit formula 3% @ 55 3% @ 55
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 55
Monthly benefits, as a % of eligible compensation 2.4% - 3.0% 2.4% - 3.0% Required employee contribution rates 9% 9%
Required employer contribution rates 23.00% 23.00%
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for 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.
For the year ended June 30, 2025, the contributions recognized as part of pension expense for each Plan were as follows:
Miscellaneous Safety Plan
Contributions - employer 212,081 $ $ 250,274
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
76 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows
Proportionate Share
of Net Pension Liability
Miscellaneous $ 4,198,974
Safety 5,545,435
Total Net Pension Liability $ 9,744,409
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for each Plan as of June 30, 2024 and 2025 was as follows:
Miscellaneous Safey
Proportion - June 30, 2024 0.08405% 0.07402%
Proportion - June 30, 2025 0.08682% 0.07606%
Change - Increase (Decrease) 0.00277% 0.00204%
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
77 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued For the year ended June 30, 2025, the City recognized pension credit of $ 1,397,477. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflow
of Resources of Resources
Changes in assumptions $ 244,550 $ - Differences between expected and actual experiences 815,597 28,880 Differences between projected and actual earnings on plan investments 509,771 - Differences between the employer's contributions and the employer's proportionate share of the contributions - 773,114 - Change in employer's proportion 73,827 52,402
Pension contributions subsequent to measurement date 462,355 - Total $ 2,106,100 $ 854,396
$462,355 reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
30-Jun
2026 $ 170,058
2027 904,899
2028 (111,059) 2029 (174,549)
2030 - Thereafter -
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
78 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued Actuarial Assumptions -The total pension liabilities in the June 30, 2025 actuarial valuations were determined using the following actuarial assumptions:
Actuarial Assumptions
Actuarial cost method Entry-age normal cost method
Actuarial assumptions:
Discount rate 6.9%
Inflation 2.3%
Salary increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funs Post-retirement benefit increase Contract COLA up to 2.3% until purchasing power protection allowance floor on purchasing power applies, 2.3% thereafter.
The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.
For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
Discount Rate - The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long -term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
79 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the longterm (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected 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 rates of return are net of administrative expenses.
Asset Class
Assumed Asset
Allocation
Real Return
Years 1 - 101,2
Global Equity - Cap-weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
80 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS), continued Current
1% Decrease Discount Rate 1% Increase
(5.9%) (6.9%) (7.9%)
Net Pension Liability as of
June 30, 2025
Miscellaneous $ 6,226,074 $ 4,198,974 $ 2,530,371
Safety 8,121,890 5,545,435 3,438,258
Total $ 14,347,964 $ 9,744,409 $ 5,968,629
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.
13. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Beneficiary.
Participants’ rights under the plan are equal to the fair market value of the deferred account for each participant.
14. OTHER INFORMATION
Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the appreciable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.
Pledged Revenue
Revenue
Pledged
Borrowing Fund/Entity -
Bond/Loan Use of Funds
Year of Loan or
Year Repayments
and/or Interest
Payments Began
Original Issue/
Loan Amount
Payments
Amortized
Through
Net Revenues Sewer and Water Utility/
Bond
Refunding
Original Bonds
2017 $ 8,620,000 2048
City of Corning, California
Notes to the Basic Financial Statements, Continued
For the year ended June 30, 2025
81 14. OTHER INFORMATION, CONTINUED
Subsequent Events
Management has evaluated events subsequent to June 30, 2025 through April 28, 2026, the date on which the financial statements were available for issuance. Management has determined no subsequent events requiring disclosure have occurred.
15. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62." The primary objective of thCorning is Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The implementation of this statement did not have an effect on the financial statements.
The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2025.
The GASB has issued Statement No. 102, “Certain Risk Disclosures.” The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026.
The GASB has issued 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. This Statement also addresses certain application issues. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026.
The GASB has issued Statement No. 104, “Disclosure of Certain Capital Assets.” The objective of this Statement is to improve the clarity and consistency of note disclosures related to capital assets by requiring governments to separately disclose certain types of capital assets, including lease assets, intangible right-to-use assets, subscription assets, and capital assets held for sale. These enhanced disclosures are intended to provide financial statement users with more decision-useful information about the nature and composition of a government’s capital assets. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026. 82 This page intentionally left blank.
REQUIRED SUPPLEMENTARY INFORMATION
83 This page intentionally left blank.
84 City of Corning, California
Required Supplementary Information - Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years*
2025 2024 2023 2022 2021
Contractually required contribution (actuarially determined) $ 212,081 $ 198,915 $ 112,950 $ 126,384 $ 99,174 Contributions in relation to the actuarially determined contributions (212,081) (198,915) (112,950) (126,384) (99,174) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered-employee payroll $ 1,885,625 $ 2,079,250 N/A N/A $ 1,054,031 Contribution as a percentage of covered-employee payroll 11.25% 9.57% N/A N/A 9.41% 2020 2019 2018 2017 2016
Contractually required contribution (actuarially determined) $ 93,574 $ 88,681 $ 233,661 $ 140,429 $ 157,234 Contributions in relation to the actuarially determined contributions (93,574) (88,681) (233,661) (140,429) (157,234) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered-employee payroll $ 1,054,031 $ 1,076,537 $ 1,189,563 $ 1,065,971 $ 1,098,749 Contribution as a percentage of covered-employee payroll 8.88% 8.24% 19.64% 13.17% 14.31% Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 85 City of Corning, California
Required Supplementary Information - Schedule of Contributions Safety Plan
Last 10 Fiscal Years*
2025 2024 2023 2022 2021
Contractually required contribution (actuarially determined) 250,274 $ $ 208,825 $ 313,328 $ 314,061 $ 314,668 Contributions in relation to the actuarially determined contributions (250,274) (208,825) (313,328) (314,061) (314,668) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered-employee payroll $ 1,121,013 $ 1,161,086 N/A N/A $ 1,842,695 Contribution as a percentage of covered-employee payroll 22.33% 17.99% N/A N/A 17.08% 2020 2019 2018 2017 2016
Contractually required contribution (actuarially determined) 285,352 $ $ 249,470 $ 273,815 $ 435,601 $ 601,159 Contributions in relation to the actuarially determined contributions (285,352) (249,470) (273,815) (435,601) (601,159) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered-employee payroll $ 1,959,986 $ 1,988,249 $ 1,935,497 $ 1,812,955 $ 1,859,893 Contribution as a percentage of covered-employee payroll 14.56% 12.55% 14.15% 24.03% 32.32% Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 86 City of Corning, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Miscellaneous Plan
Last 10 Fiscal Years*
2025 2024 2023 2022 2021
Plan's Proportion of the Net Pension Liability/(Asset) 0.08682% 0.08405% 0.08369% 0.06254% 0.07836% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 4,198,973 $ 4,202,648 $ 3,915,912 $ 2,773,331 $ 3,305,157 Plan's Covered-Employee Payroll $ 1,885,625 $ 2,079,250 N/A N/A 1,054,031 $ Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 222.68% 202.12% N/A N/A 313.57% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 72.05% 71.31% 71.94% 85.08% 69.12% Plan's Proportionate Share of Aggregate Employer Contribution $ 401,314 $ 434,254 $ 560,640 $ 444,382 N/A 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.06499% 0.06690% 0.06801% 0.07133% 0.72900% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 3,135,336 $ 2,681,232 $ 2,785,236 $ 2,374,865 $ 1,659,380 Plan's Covered-Employee Payroll $ 1,122,396 $ 1,076,537 $ 1,189,563 $ 1,065,971 $ 1,098,749 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 279.34% 249.06% 234.14% 222.79% 151.02% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 64.22% 63.03% 61.01% 74.45% 83.37% Plan's Proportionate Share of Aggregate Employer Contribution N/A N/A N/A N/A N/A Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 87 City of Corning, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Safety Plan
Last 10 Fiscal Years*
2025 2024 2023 2022 2021
Plan's Proportion of the Net Pension Liability/(Asset) 0.07606% 0.07402% 0.07503% 0.06240% 0.06636% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 5,545,435 $ 5,532,755 $ 5,155,975 $ 1,981,379 $ 4,421,156 Plan's Covered-Employee Payroll $ 1,121,013 $ 1,161,086 N/A N/A 1,842,695 $ Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 494.68% 476.52% N/A N/A 239.93% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 70.60% 69.19% 70.19% 83.04% 77.25% Plan's Proportionate Share of Aggregate Employer Contribution $ 351,667 $ 495,195 $ 810,041 $ 725,620 N/A 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.06424% 0.06460% 0.06750% 0.66500% 0.64300% Plan's Proportionate Share of the Net Pension Liability/(Asset) $ 3,593,781 $ 3,593,781 $ 3,645,767 $ 3,145,751 $ 2,342,743 Plan's Covered-Employee Payroll $ 1,988,249 $ 1,988,249 $ 1,935,497 $ 1,812,955 $ 1,859,893 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 180.75% 180.75% 188.36% 173.52% 125.96% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 73.03% 73.03% 188.36% 72.52% 79.81% Plan's Proportionate Share of Aggregate Employer Contribution N/A N/A N/A N/A N/A Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. 88 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 89 This page intentionally left blank.
90 Fund
ARPA
Lighting & Landscaping
NON-MAJOR GOVERNMENTAL FUNDS
Description
This fund provides financial relief in response to the COVID-19 pandemic.
This fund accounts for revenues and expenditures related to the maintenance and operation of street lighting, landscaping, and other 91 City of Corning, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ARPA L&L L&L
COVID relief Dist 1 Zn 1 Dist 1 Zn 2
ASSETS
Cash and investments $ 1,799,092 $ (1,836) $ 38,347
Receivables:
Taxes - - -
Intergovernmental - - -
Total assets $ 1,799,092 $ (1,836) $ 38,347
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 91 $ 41
Due to other funds - - -
Total liabilities: - 91 41
Fund Balances:
Assigned 1,799,092 38,306
Unassigned (deficit) - (1,927) -
Total fund balances 1,799,092 (1,927) 38,306
Total liabilities, and fund balances $ 1,799,092 $ (1,836) $ 38,347 92 L&L L&L L&L Lighting &
Dist 1 Zn 3 Dist 1 Zn 4 Dist 1 Zn 5 Landscaping
$ 46,966 $ 9,021 $ 13,638 $ 106,136 $ 1,905,228
-
- - - - -
- - - - -
$ 46,966 $ 9,021 $ 13,638 $ 106,136 $ 1,905,228
$ 41 $ 189 $ 41 $ 403 $ 403
- - - - -
41 189 41 403 403
46,925 8,832 13,597 107,660 1,906,752
- - - (1,927) (1,927)
46,925 8,832 13,597 105,733 1,904,825
$ 46,966 $ 9,021 $ 13,638 $ 106,136 $ 1,905,228
Funds Totals
Non-Major
93 City of Corning, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
ARPA L&L L&L
COVID relief Dist 1 Zn 1 Dist 1 Zn 2
REVENUES:
Taxes and assessments $ - $ 883 $ 7,280
Use of money and property 73,237 - 1,424
Total revenues 73,237 883 8,704
EXPENDITURES:
Current:
General government - - -
Public works - 673 3,291
Total expenditures - 673 3,291
REVENUES OVER (UNDER) EXPENDITURES 73,237 210 5,413
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
Total other financing
sources (uses) - - -
REVENUES AND OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING (USES) 73,237 210 5,413
FUND BALANCES:
Beginning of year 1,725,855 (2,137) 32,893
End of year $ 1,799,092 $ (1,927) $ 38,306
94 L&L L&L L&L Lighting &
Dist 1 Zn 3 Dist 1 Zn 4 Dist 1 Zn 5 Landscaping
$ 4,263 $ 4,773 $ 6,592 $ 23,791 $ 23,791
1,851 272 405 3,952 77,189
6,114 5,045 6,997 27,743 100,980
- - - - -
2,714 2,625 59 9,362 9,362
2,714 2,625 59 9,362 9,362
3,400 2,420 6,938 18,381 91,618
- - - - -
- - - - -
- - - - -
3,400 2,420 6,938 18,381 91,618
43,525 6,412 6,659 87,352 1,813,207
$ 46,925 $ 8,832 $ 13,597 $ 105,733 $ 1,904,825
Funds Totals
Non-Major
95 This page intentionally left blank.
96 COMBINING MAJOR GOVERNMENTAL FUNDS SCHEDULES
97 City of Corning, California
Combining Balance Sheet
General Fund
June 30, 2025
General Sales Tax General
Fund T&U Fund
ASSETS
Cash and investments $ 4,103,845 $ 2,293,652 $ 6,397,497 Receivables:
Taxes - - -
Interest 183,792 - 183,792
Intergovernmental - - -
Loans/Notes receivable - - -
Other receivable - - -
Due from other funds 91,744 - 91,744
Total assets $ 4,379,381 $ 2,293,652 $ 6,673,033
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 218,555 $ 43,340 $ 261,895 Deferred revenue 16,865 - 16,865
Other liabilities - - -
Total liabilities 235,720 43,340 279,060
Fund balances:
Restricted - - -
Committed 625,000 - 625,000
Assigned - - -
Unassigned (Deficit) 3,518,661 2,250,312 5,768,973
Total fund balances 4,143,661 2,250,312 6,393,973
Total liabilities and fund balances $ 4,379,381 $ 2,293,652 $ 6,673,033 General Fund
98 City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund
For the year ended June 30, 2025
General Sales Tax General
Fund T&U Fund
REVENUES:
Taxes and assessments $ 5,809,726 $ 1,226,901 $ 7,036,627 Licenses and permits 210,777 - 210,777
Fines and forfeitures 15,148 - 15,148
Intergovernmental - - -
Use of money and property 281,799 76,903 358,702
Charges for services 270,329 - 270,329
Reimbursements 106,380 - 106,380
Other revenues 294,681 - 294,681
Total revenues 6,988,840 1,303,804 8,292,644
EXPENDITURES:
Current:
General government 1,551,001 - 1,551,001
Public safety 3,873,987 21,713 3,895,700
Public works 495,564 - 495,564
Community development 250,840 - 250,840
Parks and recreation 523,855 24,907 548,762
Capital outlay 349,830.00 109,792 459,622
Debt service: - - -
Principal - - -
Interest and fiscal charges - - -
Total expenditures 7,045,077 156,412 7,201,489
REVENUES OVER (UNDER)
EXPENDITURES (56,237) 1,147,392 1,091,155
OTHER FINANCING SOURCES (USES):
Transfers in 360,500 - 360,500
Transfers out (16,798) (1,175,500) (1,192,298)
Total other financing sources (uses) 343,702 (1,175,500) (831,798) Net change in fund balances 287,465 (28,108) 259,357
FUND BALANCES:
Beginning of year 3,856,196 2,278,420 6,134,616
End of year $ 4,143,661 $ 2,250,312 $ 6,393,973
General Fund
99 City of Corning, California
Combining Balance Sheet
Equipment Replacement Fund
June 30, 2025
General Police Park Fire Public work Equipment
Equipment Equipment Equipment Equipment Equipment Replacement Replacement Replacement Replacement Replacement Replacement Funds ASSETS
Cash and investments $ 27,337 $ 689,575 $ 14,248 $ 1,198,758 $ 1,302,773 $ 3,232,691 Receivables:
Taxes - - - - - -
Interest - - - - - -
Intergovernmental - - - - - -
Loans/Notes receivable - - - - - -
Other receivable - - - - - -
Total assets $ 27,337 $ 689,575 $ 14,248 $ 1,198,758 $ 1,302,773 $ 3,232,691
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 215 $ - $ - $ - $ 215 Deferred revenue - - - - - -
Other liabilities - - - - - -
Total liabilities - 215 - - - 215
Fund balances:
Restricted - - - - - -
Committed - - - - - -
Assigned 27,337 689,360 14,248 1,198,758 1,302,773 3,232,476 Unassigned (Deficit) - - - - - -
Total fund balances 27,337 689,360 14,248 1,198,758 1,302,773 3,232,476 Total liabilities and fund balances $ 27,337 $ 689,575 $ 14,248 $ 1,198,758 $ 1,302,773 $ 3,232,691 Equipment Replacement Funds
100
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Equipment Replacement Funds
For the year ended June 30, 2025
General Police Park Fire Public work Equipment
Equipment Equipment Equipment Equipment Equipment Replacement Replacement Replacement Replacement Replacement Replacement Funds REVENUES:
Taxes and assessments $ - $ - $ - $ - $ - $ -
Licenses and permits - - - - - -
Fines and forfeitures - - - - - -
Intergovernmental - - - - - -
Use of money and property 1,125 32,179 581 57,191 52,703 143,779 Charges for services - - - - - -
Reimbursements - - - - - -
Other revenues - - - - 65,157 65,157
Total revenues 1,125 32,179 581 57,191 117,860 208,936
EXPENDITURES:
Current:
General government - - - - - -
Public safety 107,166 - 789,808 - 896,974 -
Public works - - - - 1,031 1,031
Community development - - - - - -
Parks and recreation - - - - 9,926 9,926
Capital outlay 216,274 - - - 18,605 234,879
Debt service: - - - - - -
Principal - - - 48,978 - 48,978
Interest - - - 751 - 751
Total expenditures 323,440 - 839,537 - 29,562 1,192,539
REVENUES OVER (UNDER)
EXPENDITURES 1,125 (291,261) 581 (782,346) 88,298 (983,603) OTHER FINANCING SOURCES (USES):
Transfers in 12,915 215,000 500,000 100,000 827,915 -
Transfers out - - - - - -
Total other financing sources (uses) 12,915 215,000 500,000 - 100,000 827,915 Net change in fund balances 14,040 (76,261) 581 (282,346) 188,298 (155,688) FUND BALANCES:
Beginning of year 13,297 765,621 13,667 1,481,104 1,114,475 3,388,164 End of year $ 27,337 $ 689,360 $ 14,248 $ 1,198,758 $ 1,302,773 $ 3,232,476 Equipment Replacement Funds
101
City of Corning, California
Combining Balance Sheet
Police Special Revenue
June 30, 2025
Police
PROP 30 Police K9 Police Abandoned Special
Police Program Grant Vehicle Revenue
ASSETS
Cash and investments $ 5,760 $ 8,617 $ 13,184 $ 39,304 $ 66,865 Receivables:
Taxes - - - - -
Interest - - - - -
Intergovernmental - - - - -
Loans/Notes receivable - - - - -
Other receivable - - - - -
Total assets $ 5,760 $ 8,617 $ 13,184 $ 39,304 $ 66,865
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 228 $ - $ - $ - $ 228 Deferred revenue - - - - -
Other liabilities - - - - -
Total liabilities 228 - - - 228
Fund balances:
Restricted 5,532 8,617 - 39,304 53,453
Committed - - - - -
Assigned - - 13,184 - 13,184
Unassigned (Deficit) - - - - -
Total fund balances 5,532 8,617 13,184 39,304 66,637
Total liabilities and fund balances $ 5,760 $ 8,617 $ 13,184 $ 39,304 $ 66,865 Police Special Revenue
102
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Police Special Revenue
For the year ended June 30, 2025
Police
PROP 30 Police K9 Police Abandoned Special
Police Program Grant Vehicle Revenues
REVENUES:
Taxes and assessments -$ -$ $ - -$ $ -
Licenses and permits - - - - -
Fines and forfeitures - - - - -
Intergovernmental - - - - -
Use of money and property 272 351 535 1,601 2,759
Charges for services - - - - -
Reimbursements - - - - -
Other revenues - - - - -
Total revenues 272 351 535 1,601 2,759
EXPENDITURES:
Current:
General government - - - - -
Public safety 2,737 - 2,849 - 5,586
Public works - - - - -
Community development - - - - -
Parks and recreation - - - - -
Total expenditures 2,737 - 2,849 - 5,586
REVENUES OVER (UNDER)
EXPENDITURES (2,465) 351 (2,314) 1,601 (2,827)
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
Net change in fund balances (2,465) 351 (2,314) 1,601 (2,827) FUND BALANCES:
Beginning of year 7,997 8,266 15,498 37,703 69,464
End of year $ 5,532 $ 8,617 $ 13,184 $ 39,304 $ 66,637
Police Special Revenue
103
City of Corning, California
Combining Balance Sheet
General Government Special Revenue
June 30, 2025
Accounting Business General
Software License Bedroom Government
Res. ADA Tax Special Revenues
ASSETS
Cash and investments $ 140,250 $ 18,079 $ 54,305 $ 212,634 Receivables:
Taxes - - - -
Interest - - - -
Intergovernmental - - - -
Loans/Notes receivable - - - -
Other receivable - - - -
Total assets $ 140,250 $ 18,079 $ 54,305 $ 212,634
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 4,250 $ 188 $ - $ 4,438 Deferred revenue - - - -
Other liabilities - - - -
Total liabilities 4,250 188 - 4,438
Fund balances:
Restricted - - - -
Committed - - - -
Assigned 136,000 17,891 54,305 208,196
Unassigned (Deficit) - - - -
Total fund balances 136,000 17,891 54,305 208,196
Total liabilities and fund balances $ 140,250 $ 18,079 $ 54,305 $ 212,634 Gen. Gov. Special Revenues
104
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Government Special Revenue
For the year ended June 30, 2025
Accounting Business General
Software License Bedroom Government
Res. ADA Tax Special Revenues
REVENUES:
Taxes and assessments $ - -$ -$ $ -
Licenses and permits 2,684 - - 2,684
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 6,074 690 2,421 9,185
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues 6,074 3,374 2,421 11,869
EXPENDITURES:
Current:
General government 24,508 960 10,225 35,693
Public safety - - - -
Public works - - - -
Community development - - - -
Parks and recreation - - - -
Total expenditures 24,508 960 10,225 35,693
REVENUES OVER (UNDER)
EXPENDITURES (18,434) 2,414 (7,804) (23,824)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (18,434) 2,414 (7,804) (23,824) FUND BALANCES:
Beginning of year 154,434 15,477 62,109 232,020
End of year $ 136,000 $ 17,891 $ 54,305 $ 208,196
Gen. Gov. Special Revenues
105
City of Corning, California
Combining Balance Sheet, Continued
Housing Special Revenue
June 30, 2025
Program Housing
LEAP Income Special
Unrestricted Revenue
ASSETS
Cash and investments $ (1,358) $ 29,846 $ 28,488
Receivables:
Taxes - - -
Interest - - -
Intergovernmental - - -
Loans/Notes receivable - - -
Other receivable - - -
Total assets $ (1,358) $ 29,846 $ 28,488
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 506 $ - $ 506 Deferred revenue - - -
Other liabilities - - -
Total liabilities 506 - 506
Fund balances:
Restricted - - -
Committed - - -
Assigned (1,864) 29,846 27,982
Unassigned (Deficit) - - -
Total fund balances (1,864) 29,846 27,982
Total liabilities and fund balances $ (1,358) $ 29,846 $ 28,488 Housing Special Revenue
106
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Housing Special Revenue
For the year ended June 30, 2025
Program Housing
LEAP Income Special
Unrestricted Revenue
REVENUES:
Taxes and assessments -$ $ - -$
Licenses and permits - - -
Fines and forfeitures - - -
Intergovernmental - - -
Use of money and property 473 1,212 1,685
Charges for services - - -
Reimbursements - - -
Other revenues - - -
Total revenues 473 1,212 1,685
EXPENDITURES:
Current:
General government - - -
Public safety - - -
Public works - - -
Community development 34,337 34,337 -
Parks and recreation - - -
Total expenditures 34,337 34,337 -
REVENUES OVER (UNDER)
EXPENDITURES (33,864) 1,212 (32,652)
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances (33,864) 1,212 (32,652)
FUND BALANCES:
Beginning of year 32,000 28,634 60,634
End of year $ (1,864) $ 29,846 $ 27,982
Housing Special Revenues
107
City of Corning, California
Combining Balance Sheet, Continued
Street Special Revenue
June 30, 2025
SB 1 Transportation SB2 Promise Street
Road RSTP Sales Traffic ATP PLANG Grant Drainage Street Special Maint Tax Mitigation (SR25) Grant Rec. Scape Revenue
ASSETS
Cash and investments $ 780,797 $ 1,144,324 $ 415,195 $ 993,155 $ (18,058) $ 27,275 $ 109,228 $ 272,371 $ (67,714) $ 3,656,573 Receivables:
Taxes - - - - - - - - - -
Interest - - - - - - - - -
Intergovernmental - - - - - - - - - -
Loans/Notes receivable - - - - - - - - -
Other receivable - - - - - - - - - -
Total assets $ 780,797 $ 1,144,324 $ 415,195 $ 993,155 $ (18,058) $ 27,275 $ 109,228 $ 272,371 $ (67,714) $ 3,656,573
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 72,192 $ 382,474 $ 51,262 $ - $ - $ - $ - $ - $ - $ 505,928 Due to other funds - - - - - - - - - -
Total liabilities 72,192 382,474 51,262 - - - - - - 505,928 Fund balances:
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned 708,605 761,850 363,933 993,155 (18,058) 27,275 109,228 272,371 (67,714) 3,150,645 Unassigned (Deficit) - - - - - - - - - -
Total fund balances 708,605 761,850 363,933 993,155 (18,058) 27,275 109,228 272,371 (67,714) 3,150,645 Total liabilities and fund balances $ 780,797 $ 1,144,324 $ 415,195 $ 993,155 $ (18,058) $ 27,275 $ 109,228 $ 272,371 $ (67,714) $ 3,656,573 Street Special Revenues
108
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued Street Special Revenue
For the year ended June 30, 2025
SB 1 Transportation SB2 Promise Street
Road RSTP Sales Traffic ATP PLANG Grant Drainage Street Special Maint Tax Mitigation (SR25) Grant Rec. Scape Revenue
REVENUES:
Taxes and assessments -$ $ - $ - $ - $ - -$ -$ -$ -$ $ - Licenses and permits - - - - - - - - - -
Fines and forfeitures - - - - - - - - - -
Intergovernmental 204,716 243,600 176,280 1,277,997 - - 60,589 - - 1,963,182 Use of money and property 29,618 48,262 22,033 40,505 1,111 4,003 11,103 - - 156,635 Charges for services - - - - - - - - - -
Reimbursements - - - - - - - - - -
Other revenues - - - - - - 29,971 - - 29,971
Total revenues 234,334 291,862 198,313 40,505 1,277,997 1,111 94,563 11,103 - 2,149,788 EXPENDITURES:
Current:
General government - - - 102 - - - - - 102
Public safety - - - - - - - - - -
Public works - 187,885 208,633 - - - - - - 396,518
Community development - - - - - - - - - -
Parks and recreation - - - - - - 79,247 - - 79,247
Capital outlay 156,027 656,993 215,887 - - - - - - 1,028,907 Debt service: - - - - - - - - - -
Principal - - - - - - - - - -
Interest and fiscal charges - - - - - - - - - -
Total expenditures 156,027 844,878 424,520 102 - - 79,247 - - 1,504,774
REVENUES OVER (UNDER)
EXPENDITURES 78,307 (553,016) (226,207) 40,403 1,277,997 1,111 15,316 11,103 - 645,014 OTHER FINANCING SOURCES (USES):
Transfers in - - - - - - - - - -
Transfers out - - - - - - - - - -
Total other financing sources (uses) - - - - - - - - - - Net change in fund balances 78,307 (553,016) (226,207) 40,403 1,277,997 1,111 15,316 11,103 - 645,014 FUND BALANCES:
Beginning of year 630,298 1,314,866 590,140 952,752 (1,296,055) 26,164 93,912 261,268 (67,714) 2,505,631 End of year $ 708,605 $ 761,850 $ 363,933 $ 993,155 $ (18,058) $ 27,275 $ 109,228 $ 272,371 $ (67,714) $ 3,150,645 Street Special Revenue
109
City of Corning, California
Combining Balance Sheet
Community Development Block Grants
June 30, 2025
CDBG CDBG CDBG CDBG CDBG
CV 1,2,3 1990 1992 Receivables Programs
ASSETS
Cash and investments $ 4,466 $ 20,837 $ 48,570 $ - $ 73,873 Receivables:
Taxes - - - - -
Interest - - - - -
Intergovernmental - - - - -
Loans/Notes receivable - 79,614 3,010 37,402 120,026
Other receivable - - - - -
Total assets $ 4,466 $ 100,451 $ 51,580 $ 37,402 $ 193,899
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ - $ - $ - Other liabilities - - - - -
Total liabilities - - - - - 0
Deferred inflows of resources:
Unavailable revenue - 79,614 3,010 37,402 120,026
Total deferred inflows of resources: - 79,614 3,010 37,402 120,026 0 Total Liabilities - 79,614 3,010 37,402 120,026
Fund balances:
Restricted - - - - -
Committed - - - - -
Assigned 4,466 20,837 48,570 - 73,873
Unassigned (Deficit) - - - - -
Total fund balances 4,466 20,837 48,570 - 73,873
Total liabilities and fund balances $ 4,466 $ 100,451 $ 51,580 $ 37,402 $ 193,899 Community Development Block Grants
110
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued Community Development Block Grants
For the year ended June 30, 2025
CDBG CDBG CDBG CDBG CDBG
CV 1,2,3 1990 1992 Receivable Programs
REVENUES:
Taxes and assessments -$ $ - $ - $ - $ -
Licenses and permits - - - - -
Fines and forfeitures - - - - -
Intergovernmental - - - - -
Use of money and property 186 849 1,744 - 2,779
Charges for services - - - - -
Reimbursements - - - - -
Other revenues - - - - -
Total revenues 186 849 1,744 - 2,779
EXPENDITURES:
Current:
General government - - - - -
Public safety - - - - -
Public works - - - - -
Community development - - - - -
Parks and recreation - - - - -
Total expenditures - - - - -
REVENUES OVER (UNDER)
EXPENDITURES 186 849 1,744 - 2,779
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
Net change in fund balances 186 849 1,744 - 2,779
FUND BALANCES:
Beginning of year 4,280 19,988 46,826 71,094 -
End of year $ 4,466 $ 20,837 $ 48,570 $ - $ 73,873
Community Development Block Grants
111
City of Corning, California
Combining Balance Sheet
Grant Funds Special Revenue
June 30, 2025
Park
Prop 68 Recycle Grant
Park Grant Funds
ASSETS
Cash and investments $ - $ 6,000 $ 6,000
Receivables:
Taxes - - -
Interest - - -
Intergovernmental - - -
Loans/Notes receivable - - -
Other receivable - - -
Total assets $ - $ 6,000 $ 6,000
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ -
Due to other funds 75,106 - 75,106
Total liabilities 75,106 - 75,106
Fund balances:
Restricted - - -
Committed - - -
Assigned - - -
Unassigned (Deficit) (75,106) 6,000 (69,106)
Total fund balances (75,106) 6,000 (69,106)
Total liabilities and fund balances $ - $ 6,000 $ 6,000 Grant Funds
112
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued Grant Funds
For the year ended June 30, 2025
Park
Prop 68 Recycle Grant
Park Grant Funds
REVENUES:
Taxes and assessments $ - $ - $ -
Licenses and permits - - -
Fines and forfeitures - - -
Intergovernmental 431,080 431,080 -
Use of money and property - 295 295
Charges for services - - -
Reimbursements - - -
Other revenues - - -
Total revenues 431,080 295 431,375
EXPENDITURES:
Current:
General government - - -
Public safety - - -
Public works - - -
Community development - - -
Parks and recreation 6,158 - 6,158
Capital outlay 33,936 33,936 -
Debt service: - - -
Principal - - -
Interest and fiscal charges - - -
Total expenditures 40,094 40,094 -
REVENUES OVER (UNDER)
EXPENDITURES 390,986 295 391,281
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances 390,986 295 391,281
FUND BALANCES:
Beginning of year (466,092) 5,705 (460,387)
End of year $ (75,106) $ 6,000 $ (69,106)
Grant Funds
113
City of Corning, California
Combining Balance Sheet
Housing Grants
June 30, 2025
HOME
Loan 2013 Housing
Rec HOME Grant
ASSETS
Cash and investments $ - $ - $ -
Receivables: -
Taxes - - -
Interest - - -
Intergovernmental - - -
Loans/Notes receivable 3,900,000 110,612 4,010,612
Other receivable - - -
Total assets $ 3,900,000 $ 110,612 $ 4,010,612
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ -
Other liabilities - - -
Total liabilities - - - 0
Deferred inflows of resources:
Unavailable revenue 3,900,000 110,612 4,010,612
Total deferred inflows of resources: 3,900,000 110,612 4,010,612 0 Total Liabilities 3,900,000 110,612 4,010,612
Fund balances:
Restricted - - -
Committed - - -
Assigned - - -
Unassigned (Deficit) - - -
Total fund balances - - -
Total liabilities and fund balances $ 3,900,000 $ 110,612 $ 4,010,612 Housing Grants
114
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued Housing Grants
For the year ended June 30, 2025
HOME
Loan 2013 Housing
Rec HOME Grant
REVENUES:
Taxes and assessments $ - $ - $ -
Licenses and permits - - -
Fines and forfeitures - - -
Intergovernmental - - -
Use of money and property - - -
Charges for services - - -
Reimbursements - - -
Other revenues - - -
Total revenues - - -
EXPENDITURES:
Current:
General government - - -
Public safety - - -
Public works - - -
Community development - - -
Parks and recreation - - -
Total expenditures - - -
REVENUES OVER (UNDER)
EXPENDITURES - - -
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances - - -
FUND BALANCES:
Beginning of year - - -
End of year $ - $ - $ -
Housing Grants
115
City of Corning, California
Combining Balance Sheet
Gas Tax Special Revenue
June 30, 2025
Gas Tax Gas Tax Gas Tax Gas Tax Gas Tax Traffic Gas Tax 2105 2106 2107 2107/5 2103 Con Relief Funds
ASSETS
Cash and investments $ 16,546 $ 7,294 $ 5,176 $ 17,793 $ 35,637 $ 28,785 $ 111,231 Receivables:
Taxes - - - - - - -
Interest - -
Intergovernmental - - - - - - -
Loans/Notes receivable - -
Other receivable - - - - - - -
Total assets $ 16,546 $ 7,294 $ 5,176 $ 17,793 $ 35,637 $ 28,785 $ 111,231
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 499 $ - $ - $ 854 $ 722 $ - $ 2,075 Deferred revenue - - - - - - -
Other liabilities - - - - - - -
Total liabilities 499 - - 854 722 - 2,075
Fund balances:
Restricted - - - - - - -
Committed - - - - - - -
Assigned 16,047 7,294 5,176 16,939 34,915 28,785 109,156 Unassigned (Deficit) - - - - - - -
Total fund balances 16,047 7,294 5,176 16,939 34,915 28,785 109,156 Total liabilities and fund balances $ 16,546 $ 7,294 $ 5,176 $ 17,793 $ 35,637 $ 28,785 $ 111,231 Gas Tax
116
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued Gas Tax Funds
For the year ended June 30, 2025
Gas Tax Gas Tax Gas Tax Gas Tax Gas Tax Traffic Gas Tax 2105 2106 2107 2107/5 2103 Con Relief Funds
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ $ - -$
Licenses and permits - - - - - - -
Fines and forfeitures - - - - - - -
Intergovernmental 14,563 358 30,317 2,000 72,268 - 119,506 Use of money and property - - - 747 1,097 1,173 3,017
Charges for services - - - - - - -
Reimbursements - - - - - - -
Other revenues - - - - - - -
Total revenues 14,563 358 30,317 2,747 73,365 122,523 1,173 EXPENDITURES:
Current:
General government - - - - - - -
Public safety - - - - - - -
Public works 3,472 2,928 39,139 2,546 81,651 129,736 -
Community development - - - - - - -
Parks and recreation - - - - - - -
Total expenditures 3,472 2,928 39,139 2,546 81,651 129,736 -
REVENUES OVER (UNDER)
EXPENDITURES 11,091 (2,570) (8,822) 201 (8,286) 1,173 (7,213) OTHER FINANCING SOURCES (USES):
Transfers in - - - - - - -
Transfers out - - - - - - -
Total other financing sources (uses) - - - - - - -
Net change in fund balances 11,091 (2,570) (8,822) 201 (8,286) 1,173 (7,213) FUND BALANCES:
Beginning of year 4,956 9,864 13,998 16,738 43,201 27,612 116,369 End of year $ 16,047 $ 7,294 $ 5,176 $ 16,939 $ 34,915 $ 28,785 $ 109,156 Gas Tax Funds
117
City of Corning, California
Combining Balance Sheet
General Capital Projects
June 30, 2025
Econ Salado General
Parkland Dev. Wall Trail Capital
Development Infras. Dep Development Projects
ASSETS
Cash and investments $ 219,073 $ 6,745 $ 104,495 $ 6,652 $ 336,965 Receivables:
Taxes - - - - -
Interest - - - - -
Intergovernmental - - - - -
Loans/Notes receivable - - - - -
Other receivable - - - - -
Total assets $ 219,073 $ 6,745 $ 104,495 $ 6,652 $ 336,965
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ - $ - $ - Deferred revenue - - - - -
Other liabilities - - - - -
Total liabilities - - - -
Fund balances:
Restricted - - - - -
Committed - - - - -
Assigned 219,073 6,745 104,495 6,652 336,965
Unassigned (Deficit) - - - - -
Total fund balances 219,073 6,745 104,495 6,652 336,965 Total liabilities and fund balances $ 219,073 $ 6,745 $ 104,495 $ 6,652 $ 336,965 General Capital Projects
118
City of Corning, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Continued General Capital Projects
For the year ended June 30, 2025
Econ Salado General
Parkland Dev. Wall Trail Capital
Development Infras. Dep Development Projects
REVENUES:
Taxes and assessments $ - -$ -$ $ - $ -
Licenses and permits - - - - -
Fines and forfeitures - - - - -
Intergovernmental - - - - -
Use of money and property 8,932 274 4,258 271 13,735
Charges for services - - - - -
Reimbursements - - - - -
Other revenues - - - - -
Total revenues 8,932 274 4,258 271 13,735
EXPENDITURES:
Current:
General government - - - - -
Public safety - - - - -
Public works - - - - -
Community development - - - - -
Parks and recreation - - - - -
Total expenditures - - - - -
REVENUES OVER (UNDER)
EXPENDITURES 8,932 274 4,258 271 13,735
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
Net change in fund balances 8,932 274 4,258 271 13,735
FUND BALANCES:
Beginning of year 210,141 6,471 100,237 6,381 323,230
End of year $ 219,073 $ 6,745 $ 104,495 $ 6,652 $ 336,965 General Capital Projects
119
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120
COMBINING ENTERPRISE FUNDS SCHEDULES
121
City of Corning, California
Combining Statement of Net Position
Water Enterprise Fund
June 30, 2025
Water Water Water
Capital Capital Water Rate Water
Improvement Replacement Enterprise Stability Enterprise ASSETS
Current assets:
Cash and investments 53,651$ 775,912$ $ 67,737 230,174$ $ 1,127,474 Restricted cash and investments - - - - -
Receivables:
Accounts - - 50,331 - 50,331
Lease - - - - -
Total current assets 53,651 775,912 118,068 230,174 1,177,805 Noncurrent assets:
Capital assets, net - - 3,119,761 - 3,119,761
Total noncurrent assets - - 3,119,761 - 3,119,761
Total Assets 53,651 775,912 3,237,829 230,174 4,297,566
DEFFERRED OUTFLOWS OF RESOURCES
Pension plan - - 272,376 - 272,376
Total assets and deferred outflows of resources 53,651$ 775,912$ $ 3,510,205 230,174$ $ 4,569,942
LIABILITIES
Current liabilities:
Accounts payable & accrued liabilities -$ 28,884$ $ 16,253 -$ 45,137 $ Accrued payroll - - 11,550 - 11,550
Interest payable - - 33,056 - 33,056
Deposits payable - - 32,143 - 32,143
Total current liabilities - 28,884 93,002 - 121,886
Noncurrent liabilities:
Compensated absences - - 28,670 - 28,670
Due after one year - - 2,200,000 - 2,200,000
Net pension liability - - 868,873 - 868,873
Total noncurrent liabilities - - 3,097,543 - 3,097,543
Total liabilities - 28,884 3,190,545 - 3,219,429
DEFERRED INFLOWS OF RESOURCES
Pension plan - - 66,649 - 66,649
Leases - - - - -
Total deferred inflows of resources - - 66,649 - 66,649 Net Position:
Net investment in capital assets - - 919,761 - 919,761
Unrestricted 53,651 747,028 (666,750) 230,174 364,103
Total net position 53,651 747,028 253,011 230,174 1,283,864 Total liabilities, deferred inflows of resources
and net position 53,651$ 775,912$ $ 3,510,205 230,174$ $ 4,569,942 Water Enterprise
122
City of Corning, California
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Water Enterprise Fund
For the year ended June 30, 2025
Water Water Water
Capital Capital Water Rate Water
Improvement Replacement Enterprise Stability Enterprise OPERATING REVENUES:
Charges for service -$ -$ 1,813,893 $ -$ 1,813,893 $
Other operating revenue - - 46,741 - 46,741
Total operating revenues - - 1,860,634 - 1,860,634
OPERATING EXPENSES:
Salaries and benefits - - 540,159 - 540,159
Materials and supplies - - 93,100 - 93,100
Repairs and maintenance - 40,503 28,006 - 68,509
Utilities - - 368,358 - 368,358
Insurance - - 119,168 - 119,168
Taxes and fees - - - - -
Contractual services - - 102,316 - 102,316
Rents - - 745 - 745
Depreciation - - 186,567 - 186,567
Other expenses 11,068 18,605 54,527 - 84,200
Total operating expenses 11,068 59,108 1,492,946 - 1,563,122 OPERATING INCOME (11,068) (59,108) 367,688 - 297,512
NONOPERATING REVENUES (EXPENSES):
Intergovernmental revenues (expenses) - - - - -
Interest revenue 2,372 25,911 11,570 - 39,853
Interest expense - - (141,154) - (141,154)
Total non-operating revenues, net 2,372 25,911 (129,584) - (101,301) NET INCOME BEFORE TRANSFERS (8,696) (33,197) 238,104 - 196,211 Transfers in - 100,000 - - 100,000
Transfers out - - (100,000) - (100,000)
Total transfers - 100,000 (100,000) - -
CHANGE IN NET POSITION (8,696) 66,803 138,104 - 196,211 NET POSITION:
Beginning of year 62,347 680,225 114,907 230,174 1,087,653 End of year 53,651$ 747,028$ $ 253,011 230,174$ $ 1,283,864 Water Enterprise
123
City of Corning, California
Combining Statement of Net Position
Sewer Enterprise Fund
June 30, 2025
Sewer WWTP Capital Sewer
Capital Sewer Replacement Capital Sewer Sewer
Improvement Expanse WWTP Replacement Enterprise Enterprise ASSETS
Current assets:
Cash and investments $ 480,900 $ 762,627 $ 995,900 $ 260,034 $ 874,272 $ 3,373,733 Restricted cash and investments - - - -
Receivables:
Accounts - - - - 133,540 133,540
Lease - - - - 514,641 514,641
Total current assets 480,900 762,627 995,900 260,034 1,522,453 4,021,914 Noncurrent assets:
Capital assets, net 2,300,787 - - 1,657,847 3,958,634 - Total noncurrent assets 2,300,787 - - 1,657,847 - 3,958,634 Total Assets 480,900 3,063,414 995,900 260,034 3,180,300 7,980,548
DEFFERRED OUTFLOWS OF RESOURCES
Pension plan - - - - 83,485 83,485
Total assets and deferred outflows of resources $ 480,900 $ 3,063,414 $ 995,900 $ 260,034 $ 3,263,785 $ 8,064,033
LIABILITIES
Current liabilities:
Accounts payable & accrued liabilities $ - $ - $ - $ - $ 17,607 $ 17,607 Accrued payroll - - - - 8,967 8,967
Interest payable - 36,551 - - 17,327 53,878
Deposits payable - - - - - -
Total current liabilities - 36,551 - - 43,901 80,452
Noncurrent liabilities:
Compensated absences - - - - 6,296 6,296
Due after one year 2,703,298 - - 1,281,702 3,985,000 -
Net pension liability - - - - 509,920 509,920
Total noncurrent liabilities 2,703,298 - - 1,797,918 - 4,501,216 Total liabilities 2,739,849 - - 1,841,819 - 4,581,668
DEFERRED INFLOWS OF RESOURCES
Pension plan - - - - 69,538 69,538
Leases - - - - 514,273 514,273
Total deferred inflows of resources - - - - 583,811 583,811 Net Position:
Net investment in capital assets (402,511) - - - 376,145 (26,366) Unrestricted 480,900 726,076 995,900 260,034 462,010 2,924,920 Total net position 480,900 323,565 995,900 260,034 838,155 2,898,554 Total liabilities, deferred inflows of resources
and net position $ 480,900 $ 3,063,414 $ 995,900 $ 260,034 $ 3,263,785 $ 8,064,033 Sewer Enterprise
124
City of Corning, California
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025
Sewer WWTP Capital Sewer
Capital Sewer Replacement Capital Sewer Sewer
Improvement Expanse WWTP Replacement Enterprise Enterprise OPERATING REVENUES:
Charges for service $ - $ - $ - $ 2,287,784 - $ $ 2,287,784 Other operating revenue 296,287 - - - 24,988 321,275
Total operating revenues 296,287 - - - 2,312,772 2,609,059 OPERATING EXPENSES:
Salaries and benefits - - - - 278,900 278,900
Materials and supplies - - - - 31,021 31,021
Repairs and maintenance - - - - 23,807 23,807
Utilities - - - - 177,084 177,084
Insurance - - - - 100,221 100,221
Contractual services 195 - - - 854,946 855,141
Rents - - - - 745 745
Depreciation - 79,323 - - 124,672 203,995
Other expenses - - - 18,605 125,144 143,749
Total operating expenses 195 79,323 - 18,605 1,716,540 1,814,663 OPERATING INCOME 296,092 (79,323) - (18,605) 596,232 794,396 NONOPERATING REVENUES (EXPENSES):
Intergovernmental revenues (expenses) - - - - -
Interest revenue 10,619 45,777 25,703 10,814 25,287 118,200 Interest expense (107,408) - - - (50,917) (158,325)
Total non-operating revenues, net 10,619 (61,631) 25,703 10,814 (25,630) (40,125) NET INCOME BEFORE TRANSFERS 306,711 (140,954) 25,703 (7,791) 570,602 754,271 Transfers in - 160,000 90,000 50,000 - 300,000
Transfers out - - - - (300,000) (300,000)
Total transfers - 160,000 90,000 50,000 (300,000) -
CHANGE IN NET POSITION 306,711 19,046 115,703 42,209 270,602 754,271 NET POSITION:
Beginning of year 174,189 304,519 880,197 217,825 567,553 2,144,283 End of year $ 480,900 $ 323,565 $ 995,900 $ 260,034 $ 838,155 $ 2,898,554 Sewer Enterprise
125
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7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
Independent Auditor’s Report
The Honorable City Council
City of Corning
Corning, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Corning, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 28, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
JJACPA, Inc.
April 28, 2026 JJACPA, Inc.
Dublin, CA
ITEM NO.: J-3
PRESENTATION AND PROVIDE
DIRECTION ON PROPOSED FUNDING
ALLOCATIONS, PRIORIOTIZE
PROJECTS FOR INCLUSION OF THE
FISCAL YEAR 2026/27 BUDGET AND
APPROVE FISCAL YEAR 2026/27
CAPITAL IMPROVEMENT PRIORITIES
May 12, 2026
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER
SUMMARY:
City staff are pleased to present the Council with the FY 2026/2027 Capital Improvement Plan project proposals. This document is the combination of four departments (Fire, Police, Public Works, and Administration/Finance) Capital Improvement Proposals.
The Capital Improvement Plan is the Fiscal Year plan of action for funding public improvements in support of existing residents, users, and businesses, and to accommodate future development.
The adoption of the Capital Improvement Program by the City Council establishes a Policy for priority spending.
Approval of priorities does not assure funding; funding is determined by the City Council when the Final Budget is approved.
Staff is seeking direction and funding priorities for the list included in this agenda item.
UPCOMING BUDGET:
The Fiscal Year 2026/2027 budget is currently being drafted and finalized for Council consideration. In Fiscal Year 2025/2026 General Fund Sales Tax Revenue was anticipated to be $3,200,000 and Measure A Revenue was anticipated to be $1,050,000.
This was approximately $950,000 less than previous years. An upcoming scheduled meeting with Hinderliter de Llamas, the City’s sales tax consultant, will provide some insight as to how the City could end this year and what can be anticipated in the upcoming year. Below is a representation as to how Measure A Revenue was prioritized last year.
FY 2025/26 Measure A Funding Priorities
Dispatch General Fund Contribution 370,000
Fire Reserve Fund 250,000
Police Reserve Fund 150,000
Public Works Reserve Fund 50,000
Taser and Body Camera Purchases 31,140
Cell Hawk Subscription 7,705
Yolo Street 147,890
Colusa Street 114,816
Pool resurfacing 100,000
Total Measure A Funding 1,221,551
The City currently does not fund depreciation expenses for park equipment and City buildings. For example, no funds are set aside for future costs to replace roofs, HVAC units, flooring, bathrooms, playground replacement, etc.
The lists of Capital Improvement Projects and Fixed Asset Requests for the upcoming 2026/2027 Fiscal Year can be found attached to this agenda item.
The dollar amounts may need to be adjusted at Final Budget approval depending on City Council priorities and revenue and expenditure projections that are currently being finalized. Staffing levels are also being evaluated as part of the budget process. Within the next five years there are requests to add additional positions (totaling approximately an additional 6.5-7.5 full-time equivalent employees).
Staff will continue to review organizational charts, the level of staffing and infrastructure improvement that can be accommodated within the General Fund as part of the FY 2026/2027 budget cycle and thereafter.
CAPITAL IMPROVEMENT PLANS:
The attached document specifically addresses services and equipment that are anticipated to maintain and/or improve our service standards.
Department needs change every year based on the needs of the Department, new technologies, new regulations, etc. For this reason, there are occasions where changes in regulations necessitate the funding of capital that could not have reasonably been anticipated and thus have not been budgeted for. In these instances, you can expect the short-term contribution to capital replacement to increase to cover this unanticipated cost.
In recent years, the City has prioritized funding for capital replacement funds. This fiscal year due to the anticipated stagnant revenues, the amount transferred to these funds may be reduced. This reduction would be based on the reduction in revenues and the anticipated budgeted expenses. Funding will be determined by the City Council when the Final Budget is approved.
PAST PRIORITIES
Included is a list of priorities that were previously expressed by Council. • Welcome to City of Corning Signage -staff is considering options and possibly alternative design/style/location.
• Sidewalk replacement throughout the City - It would cost millions of dollars to replace the sidewalk in the entire City. NCCSIF is still considering a matching grant. The existing City budget of $15,000 shall allow for some repairs without increasing the workload of existing staff.
• Improved Water and Sewer infrastructure.
• Additional staffing – Costs vary based on position.
• Field Lighting – Yost and Clark Park and Lennox Field • Continued Education for current staff in every department - Training and Conferences are budgeted as Department Heads propose. Some training budget accounts have been increased to allow for training opportunities. NCCSIF also offers some reimbursement that staff will take advantage of. • Rodgers Theater Marquee – Staff received pricing in the amount of $380,000 RECOMMENDATION:
MAYOR AND COUNCIL:
• REVIEW AND PROVIDE DIRECTION ON THE PROPOSED MEASURE A
FUNDING ALLOCATIONS,
• PRIORITZE PROJECTS FOR INCLUSION IN THE FISCAL YEAR
2026/2027 BUDGET; AND
• APPROVE THE FISCAL YEAR 2026/2027 CAPITAL IMPROVEMENT PRIORITIES.
Fire Vent fans Fire Capt Replc. $ 12,000 2 battery operated smoke ejector fans Fire Extractor Fire Capt Replc. $ 10,000 Removes carcinogens from turnouts after structure fire Fire Extrication tool Fire Capt Replc. $ 20,000 Battery operated extrication/entry tool Police Taser Payment Measure A $ 15,420 Annual taser contract expense Police Body Camera Payment Measure A $ 15,720 Annual body camera contract expense Police Cell Hawk subscription Measure A $ 7,705 This is a multi-agency tool. CPD is the home agency and pays the fee, and is then reimbursed by TCSO in full.
Police 2 Patrol Vehicles Police Capt Replc. $ 250,000 Replace 2 patrol vehicles over 150,000 miles Police New server $ 28,000 Replace server at end of life Police PAS Units $ 3,000 Replace PAS
Police Computer replacement $ 7,500 Replace aging computers Police LPR Upgrades $ 10,000 LPR is no longer going to be funded by RBPD in full Parks Special
Projects
Clark Park Parking Lot
Phase 2
CDBG-PI $ 75,000 Carryover from fiscal year 2025/2026
Parks Special
Projects
Lennox Soccer Field $ 105,000 Sod/hydroseed & top soil for Soccer field Parks Special
Projects New Lighting at Clark Park $ 446,250 Replace outdated and insufficient lighting Parks Special
Projects New Lighting at Yost Park $ 267,750 Replace outdated and insufficient lighting Street Projects Yolo St Measure A $ 147,890 Carry Over Trying to get completed 25/26 Street Projects Colusa St Measure A $ 114,816 Carry Over Trying to get completed 25/26 Streets Projects 5th Street Resurface Streets Funds $ 685,000 Resurface 5th Street from South St. to Fig Lane Water
Improvements
Upgrade Current Water
Line $ 220,000 1” Water Main Replacement w/ 8” looped Water Main Fig Street @Solano St. to Marguerite Ave
Water
Improvements
8" Water Main
Replacement $ 550,000 Fig Lane from Clark Park to Pear St Water
Improvements Fripp Well Rehab Water Funds $ 80,000 Funds to repair the Fripp Well Water
Improvements
New Well SCDRP Grant $ 242,860 Possible remaining funds from DWR grant to be used on generator purchase for new well
Water Cap Impr Waterline Repair Water Capt Replc. $ 20,000 Line Item to account for aging infrastructure/no budget last year Sewer
Improvements
Burch Creek Main FEMA $ 296,287 Sewer force main mitigation project Sewer
Improvements
Oxidation Ditch Aerator
Replacement
Sewer Funds $ 315,000 One aerator replacement at Waste Water Treatment Plant Sewer
Improvements Chlorine Analyzer Sewer Funds $ 110,000 Requirement from Water Control Board Building
Maintenance
Senior Center $ 15,000 Removal and replacement of flooring Pool Resurfacing of Big Pool
McConnell
Fund/GF $ 150,000 Resurface based on the standard lifetime of plaster. Applied for $50,000 through the McConnell Fund.
Library HVAC Replacement $ 35,000 End of life Library HVAC replacement FISCAL YEAR 2026-2027: CAPITAL IMPROVEMENT PROJECTS / FIXED ASSET REQUEST Department Description Funding Source Anticipated
Expense Explanation of project
ITEM NO: J-4
ACCEPT THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM INCOME GRANT IN THE
AMOUNT OF $74,247.40 FOR THE CLARK
PARK PARKING LOT RESURFACING
PROJECT AND AUTHORIZE CITY STAFF
TO SOLICIT BIDS FOR THE PROJECT.
MAY 12, 2026
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: BRANT MESKER, CITY MANAGER
ELIJAH STANLEY, PUBLIC WORKS DIRECTOR
BACKGROUND:
The City of Corning pursued Community Development Block Grant (CDBG) Program Income funding to support infrastructure improvements that benefit the community. The City worked with Adams Ashby Group, Inc to prepare the required infrastructure grant application.
In compliance with CDBG program requirements, the City held a public meeting on September 4, 2025, at which the Clark Park Parking Lot Resurfacing Project was proposed as an eligible infrastructure project. Following the public meeting, on September 9, 2025, City Council directed staff to prepare and submit the CDBG Program Income application, authorized a resolution approving the application, and authorized the City Manager to execute all documents necessary to complete the grant process.
On April 24, 2026, the City received an award notification letter approving CDBG Program Income funding in the amount of $74,247.40 for the Clark Park Parking Lot Resurfacing Project.
The grant was awarded under contract number 24-CDBG-PI-CP-20009. With receipt of the award, staff is requesting Council accept the grant and authorize city staff to solicit bids for the project.
SUMMARY:
The Clark Park parking lot is currently an unpaved gravel surface that requires frequent regrading by City staff and annual applications of dust suppressant to minimize dust issues. These ongoing maintenance efforts are labor-intensive and provide only temporary improvements.
The proposed project would resurface the 1.4-acre publicly owned parking lot adjacent to Clark Park. The scope of work includes importing and compacting road base material, grading the site to ensure proper drainage, applying a two-layer chip seal followed by a fog seal over the entire parking area, and completing final striping of parking stalls. Collectively, these improvements will enhance safety, accessibility, and overall usability of the parking lot for park visitors and community members while reducing long-term maintenance needs. City of Corning Clark Park Parking Lot Project Bid Documents
FINANCIAL:
The total grant award is $74,247.40, which will be used to fund the Clark Park Parking Lot Resurfacing Project. There is no negative impact to the City’s General Fund associated with acceptance of this grant.
RECOMMENDATION:
MAYOR AND COUNCIL:
• ACCEPT THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
INCOME GRANT AND AUTHORIZE CITY MANAGER TO SIGN THE CONTRACT IN THE AMOUNT OF $74,247.40 FOR THE CLARK PARK PARKING LOT RESURFACING PROJECT; AND
• AUTHORIZE CITY STAFF TO SOLICIT BIDS FOR THE PROJECT
2. The term of this Agreement is:
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
AUTHORITY, PURPOSE, AND SCOPE OF WORK
1. Authority & Purpose
This Standard Agreement (hereinafter "Agreement") will provide official notification of the reservation of funds under the State of California's administration of the federal Community Development Block Grant Program for nonentitlement- jurisdictions (hereinafter, "CDBG" or the “Program") by the Department of Housing and Community Development (hereinafter the "Department") pursuant to the provisions of 42 U.S. Code (U.S.C.) 5301, et seq., 24 Code of Federal Regulations (CFR) Part 570, Subpart l, California Health and Safety Code Section 50825, et seq., and the California State CDBG Program Guidelines in effect as of October 15, 2019, all as may be amended from time to time. The Program is listed in the federal System of Award Management Assistance Listings (formerly Catalog of Federal Domestic Assistance) as 14.228 – CDBG – Community Development Block Grant Program. In accepting this reservation of funds by executing this Agreement, the Grantee agrees to comply with the terms and conditions of this Agreement, the Notice of Funding Availability (NOFA) under which the Grantee applied, as identified in this document footer, the representations contained in the Grantee's application (the "Application") for this funding allocation, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. For activities funded outside of a NOFA, including activities funded through Program Income, and activities funded through Urgent Need, the Grantee agrees to comply with the terms and conditions of this Agreement, the representations contained in the Grantee’s Application for activity funding, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. Any changes made to the submitted and awarded Application after this Agreement is executed must receive prior written approval from the Department. For purposes of this Agreement, use of the term "Grantee" shall be a reference to "Contractor."
2. State CDBG Program Contract Management
A. Department Contract Manager: For purposes of this Agreement, the State CDBG Program Contract Manager for the Department is the Program Manager(s) of the State CDBG Program in the Division of Federal Financial Assistance, or such person’s designee. Written communication regarding this Agreement shall be directed to the State CDBG Program Contract Manager at the following address*:
State CDBG Program Contract Manager
Division of Financial Assistance
Department of Housing and Community Development
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
P.O. Box 952054
Sacramento, California 94252-2054
Ph: (916) 776-7770
Email: [email protected]
*Due to the telework policy in place for the State of California, communications should be done electronically to ensure timely response.
B. Contract Management: Day-to-day administration of this Agreement shall take place through the online grant management system, including but not limited to:
1) Financial Reports (Funds Requests);
2) Activity Reports;
3) Monitoring and technical assistance requests;
4) Submittal of any and all requested supporting documentation; 5) Standard Agreement Revisions (non-material contract changes); 6) Standard Agreement Amendments (material contract changes); and, 7) Program Income Reporting and Receipting.
C. Capacity to Contract: Grantee has the capacity and authority to fulfill the obligations required of it hereunder and nothing prohibits or restricts the right or ability of Grantee to carry out the terms hereof.
D. Authority to Execute: Each person executing this Agreement represents and warrants to the Department that they are duly authorized to execute and deliver this Agreement on behalf of the Grantee, and that such authority is evidenced by a valid binding written authorization. The person executing this Agreement, and the Grantee, acknowledge that the Department is materially relying upon the foregoing representation and warranty in agreeing to enter into this Agreement. In the event of a defect in any resolution submitted to the Department in connection herewith, then this provision shall be deemed satisfactory and admissible evidence of the authority of the signer to bind Grantee to this Agreement and Grantee shall remain fully bound to the terms hereof. In the event the Department determines in its sole discretion that a resolution submitted by the Grantee is deficient in any way, then within thirty (30) days of the Department’s request, Grantee shall resubmit a new resolution which is satisfactory to the Department. Failure by the Grantee to timely provide such resolution to the Department shall constitute a default under this Agreement.
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
**Authorized Signatory for Contracts involving a City Jurisdiction Recipient: Pursuant to California Government Code sections 40601 and 40602, the Mayor or Mayor pro tempore must sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance described above, then the Department requires that the Mayor or Mayor pro tempore sign this Agreement as the authorized signer for the city and provide to the Department a resolution from the City Council authorizing the Mayor to sign this Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance in effect that expressly authorizes such delegation and a duly-authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance as described above, the Department requires the city to provide a copy of such ordinance, as well as a resolution that indicates the name and title of the city official(s) authorized to sign this Agreement and related documents.
All resolutions required by this section must be in form and content acceptable to the Department.
3. Scope of Work
A. The Grantee shall perform the scope of work described in Exhibit E and adhere to the content of the Application which is on file with the Department and which is incorporated herein by reference (Application). All written materials or alterations submitted as addenda to the original Application and which are approved in writing by the Department are hereby incorporated as part of the Application. The Department reserves the right to require the Grantee to modify any or all parts of the Application in order to comply with CDBG requirements. The Department reserves the right to monitor all work to be performed by the Grantee, its agencies or instrumentalities, Subrecipients*, and contractors in relation to this Agreement. Any proposed change to the scope of work and/or the Application must be submitted in writing for review and approval by the Department and may require an amendment to this Agreement. Approval shall not be presumed unless such approval is made by the Department in writing.
*Subrecipient means a non-federal entity that receives a subaward of program funding from a grantee; “Subrecipient” does not mean a beneficiary of the program.
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
B. For the purposes of performing the scope of work described in Exhibit E, the Department agrees to provide the amount(s) identified in the STD 213 as detailed in the Department-approved Application, which is incorporated herein by reference.
Unless this Agreement is amended in writing, the Department shall not be liable for any costs in excess of the total approved budget. The Department shall not, under any conditions, be liable for any unauthorized or ineligible costs or activities.
C. Except for General Program Administration, grant activity(ies) must meet one of the following three CDBG National Objectives:
1) Benefit to Low/Moderate Income Persons or Households, 2) Urgent Need, or
3) Elimination of Slums or Blight as defined in 24 CFR 570.483.
4. Effective Date and Commencement of Work
A. This Agreement is effective upon approval by the Department as evidenced by the Department representative’s signature on page two of the fully executed Standard Agreement form STD 213.
B. The CDBG Grantee agrees that no work toward the implementation of the project activity or program activity, as identified in Exhibit E, shall commence without prior written authorization from the Department prior to the execution of this Agreement by the Department.
5. Term of Agreement and Deadlines
A. Term of Agreement: The Grantee shall complete the grant activity and/or activities on or before 36 months (three (3) years) from the Department’s execution date identified on the STD 213 form for this Agreement (Contract Expiration Date). Any extensions of the term of this Agreement beyond 36 months will require the Department’s approval in its discretion and a signed written amendment to this Agreement.
B. Expenditure Deadline: All costs to be reimbursed with Program funds shall be incurred no later than 33 months (two (2) years and nine (9) months) from the final Department execution date of this Agreement as identified on the STD 213 form.
Costs incurred after the Expenditure Deadline are not eligible for reimbursement.
C. Reporting Deadlines: All activities except activities in support of new housing construction and activities in support of economic development must report final beneficiaries no later than the Contract Expiration Date. Any extensions of the City of Corning
24-CDBG-PI-CP-20009
EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
Reporting Deadline will require the Department’s approval, in its discretion, and a signed written revision to this Agreement.
For activities in support of new housing construction and economic development where housing units or jobs are dependent on off-site infrastructure development, the activity shall have an extended reporting term of up to two years (24 months) from the Contract Expiration Date deadline to complete reporting of units constructed and occupied or jobs created or retained. Activities that do not meet the reporting deadline will be deemed ineligible and the Grantee will be required to repay all CDBG grant and CDBG Program Income funds, as applicable, expended on the activity.
6. Milestones
Grantee shall timely adhere to project milestones as established in Exhibit E.
A. Failure to Meet Milestones:
1) Failure to meet the first milestone identified in Exhibit E, is a material breach and will result in a for-cause termination of this Agreement. All funds, including program income, reimbursed for this activity prior to the termination shall be returned to the Department no less than thirty (30) days from the written notification of termination.
2) Failure to meet any given subsequent milestones identified in Exhibit E, may result in loss of program eligibility and will restrict the Grantee from applying for additional CDBG funding until the activity is corrected and put back on schedule, or the activity is completed, or the activity is canceled.
7. Contract Amendments
A. Contract Amendments: Adjustments to Exhibit E shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.
B. HUD Matrix Codes: If HUD changes an activity matrix code(s) or if there is an error in recording the activity code, the Grantee shall be notified in writing and the correction shall not require an amendment to this Agreement.
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
BUDGET DETAIL AND PAYMENT PROVISIONS
1. Budget
A. Total Award Budget: The funded activity(ies) shall follow the “Total Award Budget” as shown in Exhibit E and detailed in the Department-approved Application, incorporated herein by reference.
B. Program Income: All Program Income is state-administered CDBG funding and is subject to the same federal requirements for financial administration as open grant awards. Program Income, including both cash-on-hand and future projected receipts, if identified as a funding source for any given activity, must be included in the activity budget and must be substantially expended prior to drawing grant award funds. Program Income must be identified separately from grant funds in the activity budget and must be broken out into activity and general administration funding, as applicable. The Department will not encumber locally administered Program Income against NOFA grant funds in the state’s accounting system. Only new grant awards made under a NOFA or in conjunction with an Urgent Need application will be encumbered in the state’s accounting system.
C. Funding in this Agreement may include either or both:
1) the total new grant award from the NOFA to be encumbered by the Department from grant funds,
2) total locally held Program Income to be included in the activity budget but that will not be encumbered by the Department. This Agreement is for the sum total of funds to be used in the activity including grant funds and Program Income, as applicable. Program Income receipts must be reported as receipted no less than monthly.
D. Other Non-State CDBG Funding Sources: The Grantee shall report on the value of other contributions included as leverage for each activity via the Financial Reports narrative section required for such activity and provide supporting documentation.
The Financial Reports shall be accessed through the online grant management system and are the reports which convey the information needed to complete financial transactions in HUD’s Integrated Disbursement and Information System (IDIS).
2. Availability of Funds
The Department’s provision of funding to Grantee pursuant to this Agreement is contingent on the continued availability of CDBG funds and continued federal and state authorization City of Corning
24-CDBG-PI-CP-20009
EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
for CDBG activities, as well as the conditions set forth in Exhibit D. The Department’s provision of funding is subject to amendment or termination due to lack of funds or authorization. This Agreement is subject to written/ modification or termination as necessary by the Department in accordance with requirements contained in any future state or federal legislation and/or state or federal regulations and guidelines, as the same may be amended from time to time. All other modifications must be in written form and approved by both parties.
3. Eligible Costs
No activity costs may be incurred, or funds reimbursed until the Grantee has documented compliance with the applicable National Environmental Policy Act (NEPA) requirements established in 24 CFR 50, 24 CFR 58, and 42 U.S.C. 4321, et seq., and an authorization to incur costs from the Department has been received or the contract has been fully executed.
A. Allowable Costs: Allowable costs shall mean those necessary and proper costs under 2 CFR 200.400 through 475, and as identified in the Grantee’s Application and as detailed in Exhibit E, and as approved by the Department unless any or all such costs are disallowed by the State of California or HUD. Allowable costs include necessary and proper activity and administration costs incurred prior to the execution of this Agreement. All costs incurred prior to the execution of this Agreement must be eligible to be considered allowable and suitable for reimbursement subject to review and approval by the Department in its sole and absolute discretion. Eligible costs must, at a minimum, be costs incurred according to the procurement requirements of 2 CFR 200.317, et seq. and be costs required for the activity in this Agreement to meet a National Objective.
B. Priority of Funds: The Grantee agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. To the extent available, the Grantee must disburse funds available from locally held CDBG grant resources such as, but not limited to Program Income, rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments from the grant award.
C. Withholding Funds: The Department reserves the right to withhold payments pending timely delivery of program reports or documents as may be required under this Agreement. Payments are contingent upon the Grantee's and its Subrecipient’s financial management system meeting the requirements of 2 CFR 200.302 and the internal control requirements of 2 CFR 200.303. Payments to the Grantee may be City of Corning
24-CDBG-PI-CP-20009
EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
suspended or terminated, in whole or in part, by the Department in its sole discretion in the event of a default by Grantee or its Subrecipients.
D. Disencumbering Funds: The Grantee agrees that funds determined by the Department to be surplus upon completion of the activity, the funds that are not able to be spent in their entirety prior to the Expenditure Deadline or that have not been drawn prior to the Contract Expiration Date will be subject to disencumberance by the Department in its sole and absolute discretion.
E. Indirect Costs: If Grantee wishes to charge for indirect costs, the Grantee must present an indirect cost allocation plan approved by a federal agency determining the appropriate CDBG share of such indirect costs and present such plan to the Department prior to submission of requests for any payments for the indirect cost expenditures.
F. Pre-Agreement Costs: Pre-Agreement Costs are eligible costs incurred prior to the award of funds as defined in Exhibit D. Eligible Pre-Agreement costs as identified in the Application, may only be reimbursed upon the full execution of this Agreement and verification that the costs meet all eligibility criteria and are reasonable and necessary. Pre-Agreement costs may include both activity delivery and general program administration.
1) The Grantee agrees that any Pre-Agreement costs not previously identified in their Application will not be paid with CDBG funds.
4. Method of Payment
The Department will not authorize payments unless it has determined the costs incurred are in compliance with the terms of this Agreement. Payments will be issued to the agency identified on the Taxpayer Identification Form (TIN) provided by the Grantee to the Department.
A. Reimbursements: The Department will reimburse the Grantee its allowable costs for the services identified in this Agreement in Exhibit E, upon presentation of a financial reporting form, and supporting documentation of the cost eligibility. The Grantee may not request reimbursements under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount documented as having been incurred.
1) To receive reimbursement for grant activities, including reimbursement for eligible Pre-Agreement costs, the Grantee must submit all Department required forms according to the applicable deadlines. Financial Reports and City of Corning
24-CDBG-PI-CP-20009
EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
Activity Reports are due no less than quarterly, within 15 days of the end of the quarter, or as otherwise approved by the Department. Financial Reports and Activity Reports may be submitted more frequently at the Grantee’s discretion.
a) Financial Reports shall include the level of documentation specified by the Department, including proof of expenditure and proof of cost eligibility. Grantees must submit documentation supporting cost amounts and cost eligibility with each funds request as part of the Financial Report.
2) Grantees shall submit Financial Reports no less than quarterly. If no funds have been expended, the Grantee shall provide a detailed description of work completed during the reporting period, an explanation of why no funds have been expended, and anticipated date when funds will next be requested.
B. Advances: The Grantee must receive prior written approval from the Department before submitting an advance request. All advances are subject to the Department’s approval, which may be given or withheld on its sole discretion. No advances will be issued prior to full Agreement execution.
C. Final Payment Requests:
1) Grantees on the Reimbursement Payment System: All requests for final reimbursement must be submitted no later than sixty (60) days after the Expenditure Deadline as defined in Exhibit A of this Agreement. 2) Grantees on the Advance Payment System: The last advance funds request must be submitted to the Department no later than sixty (60) days prior to the Expenditure Deadline as defined in Exhibit A of this Agreement.
D. Return of Unexpended Funds: All funds received by the Grantee, but not expended by the Expenditure Deadline, must be accounted for and returned to the Department within thirty (30) days after the Expenditure Deadline. Funds shall be returned in accordance with the current State procedural guidance for Grantees. All returned funds will be disencumbered.
E. All Funds Not Previously Requested: If the final funds disbursement request for costs expended during the term of this Agreement has not been received by the Department within 60 days following the Expenditure Deadline as defined in Exhibit A of this Agreement, the Department may disencumber any funds remaining and grant funds will no longer be available for the Grantee.
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
5. Budget Amendments
Budget adjustments may be made in accordance with the following:
A. Budget Amendments: Adjustments to the budget that result in an increase or a reduction of the total award budget as shown in the STD 213 shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.
6. Grant Closing Requirements
A. Expenditure Deadline: All costs to be reimbursed with Program funds must be incurred no later than 33 months (two (2) years and nine (9) months) from the final Department execution date of this Agreement as identified on the STD 213. 1) The final Financial Report for the activity must be submitted within sixty (60) days following the Expenditure Deadline as defined in Exhibit A. Financial Reports submitted after this date will not be eligible for reimbursement.
B. Closeout Procedure: The Grantee must follow closeout procedures outlined in the published Closeout chapter of the Grants Management Manual, which may be amended from time-to-time, at the time of closeout.
C. Extended Reporting Period: If the Grantee identified an extended reporting period will be required to meet the National Objective for the activity in the Application, the above closeout requirements shall be submitted upon the completion of the activity, or within twenty-four (24) months after the Contract Expiration Date, whichever comes first. If no extended reporting period is required, the above closeout requirements shall be submitted upon the completion of the activity or no later than the Contract Expiration Date. Upon receipt of the above documentation, the Department will close out this Agreement and finalize the activity in IDIS for final reporting to HUD.
D. Ongoing Reporting: Grants that have been closed may, as applicable, have continued reporting requirements, including Program Income reporting, performance reporting, beneficiary reporting, asset reporting, and other federally required reports as identified in Exhibit D.
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
CDBG PROGRAM TERMS AND CONDITIONS
Federal Grant Identification
CFDA Number: 14.228
1. Definitions
A. "Activity" means one or more of the following HUD eligible activities as per 42 U.S.C. 5305, and as outlined in Exhibit E.
1) Acquisition (5305 (a)(1))
2) Public Improvements (5305 (a)(2))
3) Public Facilities (5305 (a)(2) and (5))
4) Code Enforcement (5305 (a)(3))
5) Housing Rehabilitation (5305 (a)(4))
6) Public Services (5305 (a)(8))
7) Planning and Technical Assistance (Section 105 (a)(12), (14) and (19)) 8) Business Financial Assistance (5305 (a)(17))
9) Microenterprise Assistance (5305 (a)(22))
10)Homeownership (5305 (a)(24))
B. "Activity Delivery" (AD) means any reasonable and necessary costs that are not directly related to labor and/or direct construction and/or direct activity implementation costs. These costs must be cost reasonable and directly tie to the completion of the activity to meet a National Objective.
C. “Activity Reports” are the activity reports that must be submitted at least quarterly that describe program or project progress and/or beneficiaries served during a given reporting period.
D. “Department” means the California Department of Housing and Community Development.
E. "Funds Request" is also identified as a Financial Report and refers to the forms and processes required to request the drawdown of CDBG funds. Grantees shall submit Financial Reports no less than quarterly. If no funds have been expended, the Grantee shall provide a detailed description of work completed during the reporting City of Corning
24-CDBG-PI-CP-20009
EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
period, an explanation of why no funds have been expended, and anticipated date when funds will next be requested.
F. "General Administration" refers to eligible administrative expenses as provided in 42 U.S.C. 5305(a)(13).
G. “Grantee” means the jurisdiction that applied for CDBG funding and has legal authority to sign this Agreement and commit to compliance with all federal requirements regarding the administration of federal funds, as identified in 2 CFR 200.
H. “Pre-Agreement Costs” are pre-award costs as defined at 2 CFR 200.458 and 24 CFR 570.489(p) and are costs that are eligible per 2 CFR 200.400, et.seq. that have been detailed in the Application and as referenced in Exhibit B.
I. "Program" means an eligible activity that provides direct assistance to eligible participants within a defined service area. Programs include public services, housing assistance to households, and instances where an eligible person, household, or area is directly assisted with a unit of service.
J. “Program Guidelines” means the CDBG Program Guidelines adopted in October 2019 that replaced the California state regulations regarding the operation of the State CDBG program, as per Health and Safety Code 50826.1(a) that states that the regulations are repealed upon adoption of guidelines.
K. “Program Income”, as defined in 24 CFR 570.489(e), means gross income received by the Grantee that is directly generated from the use of CDBG funds. When such income is generated by an activity that is only partially assisted with CDBG funds, the income shall be prorated to reflect the percentage of CDBG funds used.
L. "Project" means eligible capital improvements to public facilities, infrastructure, assets, and right-of-way. Projects may also include eligible capital improvements to privately owned facilities, infrastructure, and assets that serve the public or that provide a public good including shelters, community-based facilities, and utilities.
2. Eligible Activities
Grantee will only use funds under this Agreement for the activity identified in Exhibit E. All activities must be eligible CDBG activities as authorized under 42 U.S.C. 5305 and 24 CFR 570.482.
3. National Objectives
City of Corning
24-CDBG-PI-CP-20009
EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 2/12/2026
Grantee will only use funds in support of the National Objective identified in Exhibit E. All CDBG funded grant activities must meet a National Objective as defined in 42 U.S.C. 5304(b)(3), as amended, and 24 CFR 570.483.
4. Termination and Remedies for Noncompliance
Awards as secured by this Agreement may be terminated by the Department in whole or in part as per federal regulation at 2 CFR 200.339. All terminations shall include written notification setting forth the reason(s) for such termination, the effective date, and the portion to be terminated in the case of partial terminations and will follow termination notification requirements identified in 2 CFR 200.340.
A. Termination without Cause: Agreements may be terminated without cause in whole or in part by the Department only with the consent of the Grantee. In the case of a whole agreement termination, the two parties shall agree upon termination conditions, including the effective date. In the case of partial termination, the two parties shall agree upon termination conditions, including the portion to be terminated and the effective date.
B. Noncompliance and Termination with Cause: The Department may terminate this Agreement for Grantee’s failure to comply with the terms and conditions of this Agreement. Terminations for material failure to comply with the Agreement terms and conditions must be reported by the Department to the appropriate federal program integrity and performance system accessible through the System for Award Management (SAM) as per 2 CFR 200.339.
1) The Department may initiate remedies for noncompliance as identified in 2 CFR 200.339 at any time it has been determined that the Grantee, its agencies or instrumentalities, Subrecipients, and contractors is no longer meeting the terms and conditions of this Agreement. Remedies for noncompliance may be required in addition to, in lieu of, or prior to termination.
2) Prior to terminating this Agreement for cause or noncompliance, the Department shall submit written notice specifying noncompliance and/or specifying the event or events that if not cured would constitute an event of default. The Department’s written notice shall identify remedies for cure.
Grantee shall have thirty (30) calendar days from receipt of notice to fully cure. This period may be extended at the Department’s discretion for a reasonable period of time if the Grantee is acting in good faith to cure the City of Corning
24-CDBG-PI-CP-20009