Duarte City Council
December 9, 2025

B. Deposits
At June 30, 2025, the carrying amount of the City’s deposits was $4,200,909 and the bank balance was $4,433,507. The difference represents the outstanding checks and outstanding deposits.

The California Government Code requires California banks and savings and loans associations to secure the City’s deposits by pledging government securities with a fair value of 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes have a fair value of 150% of the City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral of deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency.

Accordingly, all collateral held by California Agents of Depository are considered to be held or, and in the name of, the local government agency.

C. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy is reviewed and adopted by the City Council each fiscal year. The investment policy does not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. There are no investments held by a bond trustee as of June 30, 2025. The table below identifies the allowable investment types authorized by the California Government Code and the City’s adopted Investment Policy (the “Investment Policy”). The table also identifies certain restrictions related to interest rate risk and concentration of credit risk. The Investment Policy restricts the Treasurer to invest in only the types of investments listed herein, which is more restrictive than the Government Code.

Authorized by Maximum Percentages
Investment Types Investment Maximum Maturity of Portfolio Authorized by State Law Policy CGC City CGC City
California State Bonds Yes 5 years 5 years None None
Federal Agency and U.S-Government
Sponsored Enterprise Obligations 5 years 5 years None None U.S Treasury Securities Yes 5 years 5 years None None
Certificates of Deposit Yes 5 years 5 years 30% 30%
Time Deposits Yes 5 years 5 years None None
Local Agency Investment Fund (LAIF) Yes 5 years N/A N/A None

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
38

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

Remaining Maturity
(in months)
Investment Type 6 Months or Less
Restricted Cash with fiscal agents:

Local Agency Investment (LAIF) $ 44,244,225
U.S Bank Money Market Mutual Fund 302,509
D. 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. The City’s LAIF investment of $44,244,225 does not have a rating provided by a nationally recognized statistical rating organization. The City’s restricted cash of $302,509 held in U.S. Bank Money Market Mutual Fund does not have a rating by a nationally recognized statistical rating organization.

E. Concentration of Credit Risk
The entire investment balance of the City is invested in the LAIF external investment pool.

F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision to deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a fair value of 150% of the secured public deposits.

As of June 30, 2025, $3,950,909 of the City’s deposits with financial institutions in excess of federal depository insurance limits was held in collateralized accounts.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
39

G. Fair Value Measurements
Investments are stated as fair value and are valued on a yearly basis. The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. Securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Securities classified in Level 2 of the fair value hierarchy are valued using other observable inputs such as matrix pricing techniques or based on quoted prices for assets in markets that are not active. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Level 3 are valued using the income approach such as discounted cash flow techniques. Investment in an external government pool is not subject to reporting within the level hierarchy. The entire balance of investments is in an external government pool. Please see additional information in “Investment in State Investment Pool”.

H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The City’s LAIF balance at June 30, 2025, was $44,244,225 which reflected an unrealized gain of $52,955 for the current fiscal year.

The total amount invested by all public agencies in LAIF as of June 30, 2025, was $24.1 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2025, has a balance of $178.1 billion (55.09% was invested in government securities). The average maturity of PMIA investments was 248 days as of June 30, 2025.

NOTE 3 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The composition of interfund balances as of June 30, 2025, is as follows:

A. Due To/Due From Other Funds
Due From Due to
Other Funds Other Funds
Major Funds:

General Fund $ 251,531 $ -
Nonmajor Special Revenue Funds:

Community Development Block
Grant
- 60
PEG - 5,609
Park Development Grant - 245,862
$ 251,531 $ 251,531
The purpose of Due to/Due from is to eliminate negative cash balances at fiscal year-end in various funds. These will be eliminated as additional funds are received or the general fund transfers funds to cover the shortfalls.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
40

B. Transfers In/Transfers Out
(Transfers Out)
General Nonmajor
Transfers In Fund Funds Total
General Fund $ - $ 958,033 $ 958,033
Nonmajor Funds 1,168,214 - 1,168,214
Total $ 1,168,214 $ 958,033 $ 2,126,247
Transfers out in the amount of $1,168,214 were made out of the General Fund into the Lighting and Landscaping Fund ($910,385) for capital and administrative costs, into the PAG Fund ($36,992) to pay for leased car maintenance costs, and the Infrastructure Debt Service fund ($220,837) for debt payment costs. Transfers In in the amount of $958,033 were made to reimburse the General Fund for expenditures paid on behalf of the State Gasoline Tax Fund ($112,884), Lighting and Landscape Fund ($343,200), Measure M Fund ($119,286), Proposition A Transit Fund ($76,000), the Proposition C Transit Fund ($61,700), Measure R LR Transit Fund ($81,845) and SB1/RMRA ($163,118).

NOTE 4 - NOTES RECEIVABLE
Notes and loans receivable as of June 30, 2025, are comprised of the following:

A. Investment in State Investment Pool
As part of development agreements with certain builders and in order to assist those individuals and families who are the most in need, the Housing Authority of the City of Duarte provides loans to low-and-moderate- income level residents for the acquisition and rehabilitation of residences. As a part of the agreement, the Housing Authority accepted second trust deeds from eligible buyers so that the buyers could purchase the property. The second trust deeds are cancelable after 25 years should the buyers remain in the property. If the property is sold, the Housing Authority recovers its second trust deed and interest to be calculated within certain limits. Since the amount, if any, the Housing Authority will receive is unknown, the City has recorded an allowance for doubtful accounts for the full amount of the receivables. The City will record income if the property is sold. The City has has a net $0 balance of these loans outstanding at June 30, 2025.

As part of the Estoppel Certificate, Consent & Agreement, a note was established on December 4, 2013, between the City, Southern California Presbyterian Homes, and Andres Duarte Terrace II. L.P. for the development of a 43- unit affordable housing project located within the City. The note will not be repaid for 56 years. The City recorded an allowance for doubtful accounts of $1,200,000 due to the large number of years until the balloon payment on the note is due.

The balance of all notes and loans receivable at June 30, 2025, is $1,200,000 with an allowance for doubtful accounts of $1,200,000 for net notes and loans receivable of $0 as of June 30, 2025.

NOTE 5 - LEASES RECEIVABLE
As of June 30, 2025, City had 6 active leases. The leases have receipts that range from $20,015 to $33,397 and interest rates that range from 2.5110% to 4.0000%. As of June 30, 2025, the total combined value of the lease receivable is $504,103, and the combined value of the deferred inflow of resources is $477,242. No variable payments, not included in the lease receivable, were received within the fiscal year. The City recognized $133,371 of lease revenue during fiscal year 2025.

CITY OF DUARTE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
NOTE 13 - CONDUIT OBLIGATIONS (CONTINUED)
41

Note 6 - Capital Assets
A summary of the changes in capital assets for the fiscal year ended June 30, 2025, is as follows:

Governmental activities:

Capital assets, not being depreciated
Land $ 21,737,333 $ - $ - $ - $ 21,737,333
Construction-in-progress 3,273,459 6,076,072 - (4,890,074) 4,459,457 Total capital assets, not being depreciated 25,010,792 6,076,072 - (4,890,074) 26,196,790 Capital assets, being depreciated:

Infrastructure 51,079,788 116,400 - 4,890,074 56,086,262 Structure and improvements 12,105,534 20,385 200,000 - 11,925,919 Machinery and equipment 3,160,087 333,003 514,180 - 2,978,910 Lease Assets
Buildings 489,652 10,925 - - 500,577
Vehicles 653,889 283,050 - - 936,939
Machinery and Equipment 80,169 22,115 7,775 - 94,509
Subscription assets 655,099 78,465 96,403 - 637,161
Total capital assets, being depreciated 68,224,218 864,343 818,358 4,890,074 73,160,277 Less accumulated depreciation:

Infrastructure 23,601,683 1,439,918 - - 25,041,601
Structure and improvements 4,641,481 202,389 64,363 - 4,779,507 Machinery and equipment 1,236,253 155,082 483,626 - 907,709 Lease Assets
Buildings - 100,505 - - 100,505
Vehicles 264,292 165,540 - - 429,832
Machinery and Equipment 60,350 25,493 8,322 - 77,521
Subscription assets 203,215 140,416 49,614 - 294,017
Total accumulated depreciation 30,007,274 2,229,343 605,925 - 31,630,692 Total capital assets, being depreciated, net 38,216,944 (1,365,000) 212,433 4,890,074 41,529,585 Total governmental activities capital assets $ 63,227,736 $ 4,711,072 $ 212,433 $ - $ 67,726,375 Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Depreciation and amortization expense was charged to functions of the primary government as follows:

Governmental activities:

General government $ 359,674
Safety 18,144
Development 29,623
Recreation and culture 362,878
Transportation 1,459,024
Total $ 2,229,343
Lease Assets
The City has recorded 22 leased cars, 1 leased building, 1 leased parking lot, and 2 leased office equipment right to use assets. The related leases are discussed in the long-term liabilities Note 8. The right to use leased assets are amortized on a straight-line basis over the terms of the related leases.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 6 - CAPITAL ASSETS
42

Note 7 - Deferred Inflows/Outflows of Resources
Unavailable revenues are deferred in accordance with GASB Statements No. 23 and No. 65. The City has unavailable revenues of intergovernmental receivables. The balance of unavailable revenues reported as deferred inflows of resources at June 30, 2025, was $719,522. The balance of lease receivables reported as deferred inflows of resources at June 30, 2025, was $477,242. This represents the amount of lease revenue deferred related to the receivable which is amortized on a straight-line basis for the life of the lease. For information about deferred inflows and outflows related to pensions, see Note 11. For information about deferred inflows and outflows related to OPEB, see Note 12.

NOTE 8 - LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2025:

Balance, as
Restated Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Governmental activities
U.S. Bancorp Infrastructure Lease $ 2,110,556 $ - $ (169,762) $ 1,940,794 $ 173,870 Apple Lease 21,605 - (21,605) - -
CA Energy Commission Loan 29,439 - (19,480) 9,959 9,959 Total direct placement and direct borrowings 2,161,600 - (210,847) 1,950,753 183,829 Enterprise Leases 327,214 280,024 (151,239) 455,999 140,761 Canon Lease 19,953 - (18,410) 1,543 1,543
Public Safety Office Lease 489,652 - (36,055) 453,597 108,057 Quadient Leases - 17,687 (2,809) 14,878 4,229
Mail Meter Lease 219 - (219) - -
Subscriptions 417,404 47,345 (180,151) 284,598 158,296
Compensated Absences* 666,681 91,150 - 757,831 265,121
Total long-term liabilities $ 4,082,723 $ 436,206 $ (599,730) $ 3,919,199 $ 861,836 *The change in compensated absences above is a net change for the year

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 7 - DEFERRED INFLOWS/OUTFLOWS OF RESOURCES
43

Debt service payments for direct placement and direct borrowings come due as follows:

A. U.S. Bancorp Infrastructure Lease
The City of Duarte entered into a lease/purchase agreement with U.S. Bancorp Government Leasing and Finance, Inc. on September 27, 2019, to fund a project to upgrade lighting systems, HVAC system installation, control upgrades, and to install a Solar PV system in various City buildings and structures for $2,750,427. The City pledged as collateral property consisting of the Duarte Civic Center Complex and a Senior Citizens/ Community Center. The Civic Center consists of the City Hall, the Community Center, the Fitness Center, two swimming pools and a pool service building, totaling 28,600 square feet. The Senior Center is also located at the Civic Center Complex, and contains approximately 12,000 square feet, with multi-purpose rooms for classes meetings, recreational uses, and meals, and office space for on-site staff, and storage area. Lease payments are to be unconditional. In the event of a default, the City must provide the leased property back to the U.S. Bancorp or continue to make the lease payments until the property is provided to U.S. Bancorp. The lease matures on September 27, 2034, and bears interest at 2.95% per annum. Interest and principal are due annually every September 27. The liability as of June 30, 2025, is $1,940,794.

Fiscal year
ending U.S. Bankcorp Infrastructure Lease
June 30, Principal Interest
2026 $ 173,870 $ 46,967
2027 178,078 42,759
2028 182,387 38,450
2029 186,801 34,036
2030 191,321 29,516
2031-2034 1,028,337 75,848
Totals $ 1,940,794 $ 267,576
B. Quadient – City Hall
On May 1, 2025, City of Duarte entered into a 60 month lease as Lessee for the use of Quadient - City Hall. An initial lease liability was recorded in the amount of $10,052. As of June 30, 2025, the value of the lease liability is $7,622. City of Duarte is required to make quarterly fixed payments of $540. The lease has an interest rate of

3.0590%. The value of the right to use asset as of June 30, 2025 of $10,052 with accumulated amortization of $2,345 is included with Equipment on the Lease Class activities table found in Note 6. The debt matures as follows:

Fiscal year ending Quadient - City Hall
June 30, Principal Interest
2026 $ 1,889 $ 269
2027 1,948 211
2028 2,008 151
2029 2,071 89
2030 1,595 24
Totals $ 9,511 $ 744

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 8 - LONG-TERM LIABILITIES (CONTINUED)
44

C. Quadient – Public Safety
On August 1, 2022, City of Duarte entered into a 63 month lease as Lessee for the use of Quadient - Public Safety. An initial lease liability was recorded in the amount of $12,063. As of June 30, 2025, the value of the lease liability is $3,027. City of Duarte is required to make quarterly fixed payments of $619. The lease has an interest rate of 3.0590%. The value of the right to use asset as of June 30, 2025 of $12,063 with accumulated amortization of $9,000 is included with Equipment on the Lease Class activities table found in Note 6. The debt matures as follows:

Fiscal year ending Quadient - Public Safety
June 30, Principal Interest
2026 $ 2,340 $ 137
2027 2,412 65
2029 615 5
Totals $ 5,367 $ 207
D. CA Energy Commission Loan
The State of California Energy Resources Conservation and Development Commission issued a loan to the City for an Energy Efficiency project to be completed in July 2011. The Loan was issued in October 2011 in the amount of $218,847. The liability as of June 30, 2025, is $9,959. The loan matures on December 22, 2025, and bear interest at 3% per annum. Principal and Interest on the loan is payable semi-annually every December and June.

Fiscal year ending CA Energy Commission Loan
June 30, Principal Interest
2026 $ 9,959 $ 150
Totals $ 9,959 $ 150
E. Enterprise Leases
Management to replace all of the City’s vehicles. The City intends to replace the vehicles on a rolling basis on a 5-year schedule. Each fiscal year the City will trade in their owned vehicles as part of signing a lease for a new replacement vehicle. During the fiscal year 2020-2021 the City entered into 12 such lease agreements. During the fiscal year 2021-2022 the City entered into 1 such lease agreement. During the fiscal year 2022-2024 the City entered into 3 such lease agreements. During the fiscal year 2024-2025 the City entered into 7 such lease agreements and ended one lease agreement entered into in prior fiscal years. Additional leases are expected over the next few fiscal years as per the City’s replacement plan. The vehicles are leased for 5-years and then will be traded in for new replacement vehicles. The interest rate on these leases range from 0.27% to 4.77%. The first payment is due upon delivery for each vehicle and payments continue for a total of 60 months. Monthly payments range from $170 to $1,013 on a per vehicle basis. The debt matures as follows:

Fiscal year ending Enterprise Leases
June 30, Principal Interest
2026 $ 140,761 $ 12,338
2027 117,040 8,407
2028 110,233 3,947
2029 69,076 1,502
2030 18,889 115
Totals $ 455,999 $ 26,309

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 8 - LONG-TERM LIABILITIES (CONTINUED)
45

F. Canon Lease
On August 9, 2021, the City entered into a lease with Canon Solutions America, Inc. to lease a copy machine. The lease payments are $1,545 a month for 48 months with an interest rate of 1.20%. The debt matures as follows:

Fiscal year ending Canon Lease
June 30, Principal Interest
2026 $ 1,543 $ 2
Totals $ 1,543 $ 2
G. Public Safety Office Lease
The City entered into a lease agreement in April of 2025 for the use of office space for the Public Safety department from July 1, 2025 through June 30, 2034. The monthly base rent from July 1, 2025 through June 30, 2029 shall be $10,076. The City received a base rent credit of $5,000 for the twelve months from July 2025 through June 2025. The lease auto renews on July 1, 2029 with a rent increase of 12% with rental payments remaining flat for the remaining five years. Either party shall have the right to terminate the lease at any time by providing twelve months prior written notice, provided, however, that said twelve month notice may not be given any earlier than June 30, 2028 with the effective date of said early termination to be no earlier than June 30, 2029.

The debt matures as follows:

Fiscal year ending Public Safety Office
June 30, Principal Interest
2026 $ 108,057 $ 12,854
2027 111,543 9,369
2028 115,141 5,771
2029 118,856 2,057
Totals $ 453,597 $ 30,051
H. Subscription-Based Information Technology Arrangements As of June 30, 2025, the City had 12 active subscriptions. The subscriptions have payments that range from $0 to $56,809 and interest rates that range from 2.96% to 5.00%. As of June 30, 2025, the total value of the subscription liability was $284,598. The subscriptions had no variable payments, not included in the subscription liability, within the fiscal year.

Fiscal year ending Subscriptions
June 30, Principal Interest
2026 $ 158,296 $ 9,488
2027 126,302 4,291
Totals $ 284,598 $ 13,779
I. Defeased Bonds
The City has a defeased general obligation in the prior years by placing the proceedings of new bonds and the City’s own resources into irrevocable trust accounts to provide for all future debt service payments on the old bonds. Accordingly, those trust account assets and the liability for those defeased bonds are not included in the City’s financial statements. At June 30, 2025, $4,371,966 defeased bonds remain outstanding. Of the amount of defeased bonds outstanding, $4,609,053 is held by a trustee that may substitute the risk-free monetary assets held for the repayment of the debt with non-risk-free monetary assets.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 8 - LONG-TERM LIABILITIES (CONTINUED)
46

Note 9 - Liability, Worker's Compensation, and Purchased Insurance A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Duarte is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools.

Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2024-25 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million.

Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City.

Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 9 - LIABILITY, WORKER'S COMPENSATION, AND PURCHASED INSURANCE 47

Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $29,493,073. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City property currently has earthquake protection in the amount of $6,869,431. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase lowcost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the Authority.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25.

NOTE 10 - DEFERRED COMPENSATION PLAN
The City has made available to its employees a deferred compensation plan, whereby employees authorize the City to withhold funds from salaries to be invested in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. As of July 1, 2024, the City began making matching contributions of up to $100 per month for each employee already contributing to the Plan. The City made $214,772 contributions to the Plan during fiscal year 2025. The amount held by trustees for the employees at June 30, 2025, was $4,200,102. These amounts are not recorded in the books of the City and as such not included in these financial statements.

A. Plan Description
All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution.

CalPERS issues a publicly available report that includes a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website.

B. 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 or 52 with statutorily reduced benefits depending on the retirement tier. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2W Death Benefit.

The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 9 - LIABILITY, WORKER'S COMPENSATION, AND PURCHASED INSURANCE (CONTINUED) 48

The Plan’s provisions and benefits in effect at June 30, 2025 (measurement date), are summarized as follows:

Tier 1* Tier 2* PEPRA
Hire date/CalPERs Prior to On or After On or After
Enrollment Date January 1, 2010 January 1, 2010 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum for 50 yrs minimum 52 yrs Monthly benefits as a % of 50 yrs - 63+ yrs 50 yrs - 63+ yrs 50 yrs - 63+ yrs Eligible compensation 1.425% - 2.418% 1.092% - 2.418% 1.000% - 2.500% Required employee
contribution rates 8.00% 7.00% 8.25%
Required employer
contribution rates 14.99% 10.93% 8.18%
*Plan closed to new entrants
C. Contribution Description
Section 20814 (c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis 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 fiscal 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 fiscal year ended June 30, 2025, the contributions recognized as part of pension expense for the Plan were as follows:

Miscellaneous
Contributions - employer $ 1,996,283
D. Pension Liabilities, Pension Expense, and Deferred Outflows, and Deferred Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported net pension liabilities for its proportionate share of the net position liability of the Plan as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous $ 18,366,664

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 11 - RETIREMENT PLAN (CONTINUED)
49

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the 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 the Plan as of June 30, 2023, and 2024 was as follows:

Miscellaneous
Proportion - June 30, 2023 0.148063%
Proportion - June 30, 2024 0.151447%
Change - Decrease 0.003384%
For the fiscal year ended June 30, 2025, the City recognized pension expense of $1,427,709. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions made after the measurement date $ 1,996,283 $ - Difference between expected and actual experience 1,587,967 61,961 Change in assumptions Difference in actual to proportionate share 472,061 - contribution 66,177 104,888
Adjustments due to differences in proportion - 550,541
Net difference between projected and actual earnings 1,057,346 - Total $ 5,179,834 $ 717,390
The $1,996,283 reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and will be recognized as pension expense as follows:

Deferred
Fiscal year ended Outflows/(Inflows)
June 30, of Resources 2025
2026 $ 598,926
2027 2,253,359
2028 (23,784)
2029 (362,340)
Total $ 2,466,161

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 11 - RETIREMENT PLAN (CONTINUED)
50

E. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liabilities were determined by rolling forward the total pension liability determined in June 30, 2023 actuarial valuation to June 30, 2024. The June 30, 2024, total pension liability was based on the following actuarial methods and assumptions:

Valuation date June 30, 2023
Measurement date June 30, 2024
Actuarial cost method Entry age normal cost method
Actuarial assumptions
Discount rate 6.90%
Inflation 2.30%
Payroll growth Varies by entry age/service
Projected salary increases Varies by age/service
Investment rate of return 6.90%
Mortality Data for all Funds (1)
(1) 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.

F. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plans 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 pension plan investments was applied to all periods of projects benefit payments to determine the total pension liability.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with the risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

The expected real rates of return by asset class can be found in CalPERS’ Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025.

The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 11 - RETIREMENT PLAN (CONTINUED)
51

Miscellaneous

1.0% Decrease 5.90%
Net Pension Liability $ 26,619,000
Current Discount Rate 6.90%
Net Pension Liability $ 18,366,664

1.0% Increase 7.90%
Net Pension Liability $ 11,573,777
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS’ financial reports.

NOTE 12 - OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
The City has established a retiree healthcare plan (HC Plan) The HC Plan provides employees healthcare coverage under the California Public Employees Medical and Hospital Care Act (PEMCHA) as a agent multiple employer defined-benefit post-employment healthcare plan. PEMCHA governs health care provided to employees and retirees under health care plans administered by CalPERS. All public agencies providing health care to their active employees through CalPERS’ PEMCHA plans are also required to offer health care under those plans to their retirees. The rules regarding retiree health care are found in sections 22892 and 22893 of the Government Code.

Under PEMCHA, the City will provide medical insurance coverage for retirees and their dependents though the PERS system. To be eligible, employees must retire within one hundred and twenty days of their separation from employment with the City on or after age 50 (age 52 for PEPRA new hires) with at least 5 years of CalPERS service. Eligible employees receive up to a maximum amount determined each year as a contribution toward the cost of monthly health premiums if the eligible retiree is covered in a CalPERS’ health plan. As of June 30, 2025, the maximum coverage rates are $814 a month, $1,628 a month, and $2,117 a month for a retiree only, retiree plus 1, and retiree family tiers, respectively. The same equal benefit must be provided to retirees as active employees. Benefits are paid for the lifetime of the retiree as long as he or she continues to participate in PEMCHA, with continuation to the surviving spouse, if any.

The City also pays an administrative fee of 0.32% of premium on behalf of all active employees and retirees.

Retirees who waive medical insurance coverage and provide proof of other coverage will be reimbursed by the City in a tiered schedule ranging from $218 to $566 per month.

The City joined the Public Agencies Post-Retirement Health Care Plan Trust (Trust) in September of 2007 for the purpose of prefunding other post-employment benefits for past services. The Trust is a public agency multipleemployer trust that was established to provide member public agencies economies of scale and efficiency of administration in the funding of each agency’s respective other post-employment benefit obligations.

As of the June 30, 2025 actuarial valuation, the Plan provided benefits to 107 beneficiaries consisting of 54 active employees and 53 inactive employees or their beneficiaries.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 11 - RETIREMENT PLAN (CONTINUED)
52

A direct employer payment toward the cost of OPEB benefits is referred to as an “explicit subsidy”. In addition, if claims experience of employees and retirees are pooled when determining premiums, retiree premiums are based on a pool of members which, on average, are younger and healthier. For certain types of coverage such as medical insurance, this results in an “implicit subsidy” of retiree premiums by active employee premiums since the retiree premiums are lower than they would have been if retirees were insured separately. GASB Statement No. 75 and Actuarial Standards of Practice generally require that an implicit subsidy of retiree premium rates be valued as an OPEB liability.

B. Contributions
The City Council establishes health care coverage rates each fiscal year by Memoranda of Understanding with the applicable employee bargaining units. The City currently pays the benefits as they come due on behalf of the beneficiaries. In addition, the City makes an additional voluntary contribution to the Trust at a rate set during the budget process. During FY 2024-2025 the City paid $415,535 in post-employment healthcare costs directly to PERS and an additional contribution of $173,000 into PARS during FY 2024-2025 for a total contribution amount of $588,535
C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2025. Standard actuarial update procedures were used to project/discount from valuation to measurement date. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless other specified:

Salary increases 3.0 %
Investment rate of return 6.3 %
Inflation 2.5 %
Healthcare cost trend rates
Pre-Medicare 6.3 %
Medicare 10.0 %
D. Actuarial Methods and Assumptions
Demographic actuarial assumptions used in the valuation are based on the CalPERS’ 2021 Experience Study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements. The mortality improvement scale was the MacLeod Watts Scale 2022, reflecting continued updates in available information. There were no changes between the measurement date and the report date that are expected to have a significant effect on the total OPEB liability.

The Trust published an expected return of 6.3%, reflecting updated long-term rates of returned provided by PARS in June 2025. The return rate was determined using a building-block method and best-estimate ranges of expected future real rates of return for each major asset class (expected returns, net of OPEB plan investment expense and inflation). These ranges are combined to produce the long-term expected rate of return by weighting the expected real rates of return by the target asset allocation percentage and by adding expected inflation. To achieve the goal set by the investment policy, plan assets will be managed to earn, on a long-term basis, a rate of return equal to or in excess of the target rate.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 12 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
53

E. Discount Rate and Long-Term Expected Rate of Return
GASB Statement No. 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the OPEB trust set aside to pay benefits, if the plan sponsor makes regular contributions to the trust such that the assets are not depleted at any point in the future. If the OPEB plan’s actuary determines that contributions are not sufficient to keep the trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax-exempt municipal bonds will be used for the periods when the trust funds are not sufficient to cover benefit payments. Based on this requirement, the discount rate used to measure the total OPEB liability is 6.30%.

F. Changes in the OPEB Liability
The following table shows the changes in the net OPEB liability as follows:

Service Cost $ 343,775
Interest 645,937
Difference between expected and actual experience 77,417 Change of Assumptions 162,207
Benefit Payments (519,486)
Net change in total OPEB liability 709,850
Total OPEB liability - beginning 10,681,587
Total OPEB liability - ending (a) $ 11,391,437
Plan fiduciary net position
Contributions employer (1) $ 692,486
Net investment income 689,047
Benefit payments (1) (519,486)
Net Change in plan fiduciary net position 862,047
Plan fiduciary net position - beginning 6,833,559
Plan fiduciary net position - ending (b) $ 7,695,606
Net OPEB liability - ending (a) - (b) $ 3,695,831
(1) Amount includes implicit subsidy associated with benefits paid.

G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the Net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.30%) or 1 percentage point higher (7.30%) than the current discount rate:
1% Decrease Current 1% Increase
Net OPEB Liability $ 5,310,338 $ 3,695,831 $ 2,375,030

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 12 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
54

H. Sensitivity of the Net OPEB Liability to Changes in the Health Care Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower (7.50% graded down to 2.90%) than the healthcare trend rate or 1 percentage point higher (9.50% graded down to 4.90%) than the current healthcare cost trend rates assumed to be 8.50% effective January 2026 and graded down to 3.90% for 20 years and 75 thereafter:
1% Decrease
Healthcare
Cost Rate 1% Increase
Net OPEB Liability $ 2,254,540 $ 3,695,831 $ 5,492,102
I. Investments
The City’s policy regarding the allocation of the plan’s invested assets is established and may be amended by the management of the City. The primary objective is to maximize total Plan return, subject to the risk and quality constraints set forth in the investment guidelines. The investment objective the City has selected is the Balance Strategy, which seeks to provide growth of principal and income. The asset allocation ranges for this objective as of June 30, 2025, are listed below:

PARS Balanced HighMark Plus Portfolio
Expected Rate of Return
Target Target
PARS Balanced Allocation Allocation
US Large Cap Equity 34.20 % 7.00 % 7.20 %
US Small Cap Equity 1.80 % 7.90 % 7.90 %
International Development Equity 13.50 % 6.90 % 6.90 %
Emerging Markets Equity 4.50 % 7.40 % 7.40 %
REITs 3.00 % 7.20 % 7.00 %
Listed Infrastructure 3.00 % 6.80 % 7.40 %
Core Bonds 35.00 % 4.50 % 5.00 %
High Yield 3.00 % 6.00 % 6.10 %
Cash 2.00 % 3.30 % 2.90 %
Market conditions may cause the account’s asset allocation to vary from the stated range from time to time. The investment manager (assisting the City) will rebalance the portfolio no less than quarterly and/or when the actual weighting differs substantially from the strategic range, if appropriate and consistent with the objectives.

For the fiscal year ended June 30, 2025, the annual money-weighted rate of return on investments, net of investment expense, was 6.30 percent. The money-weighted rate of return expresses investment performance, net of investment expense adjusted for the changing amounts invested.

J. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 12 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
55

Amounts are first recognized in OPEB expense for the fiscal year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. Liability changes due to plan experience which differs from what was assumed in the prior measurement period and/or from assumption changes during the period are recognized over the OPEB plan’s Expected Average Remaining Service Life (EARSL). EARSL periods used for changes arising in this current measurement period were seven years. Changes in the Fiduciary Net Position due to investment performance different from the assumed earnings rate are always recognized over 6.81 years. Liability changes attributable to benefit changes occurring during the period are recognized immediately.

K. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB income of $311,326 and reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Changes of assumptions $ 618,272 $ 152,638
Differences between expected and actual experience 448,500 2,265,582 Net difference between projected and actual earnings on OPEB plan investments - 314,461 Total $ 1,066,772 $ 2,732,681
Amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30, of Resources
2026 $ (314,158)
2027 (498,864)
2028 (593,638)
2029 (322,938)
2030 35,187
Thereafter 28,502
Total $ (1,665,909)
Note 13 - Conduit Obligations
A. Financial Cooperation Agreements
The City from time to time has provided financial assistance to health care providers for the acquisition of equipment and facilities deemed to be in the public interest. The agreements are secured by the property financed and are payable solely from payments received on the underlying security liens. Upon repayment of the debt, ownership of the property transfers to the private-sector entity served by the loan agreement, neither the Agency, the City of Duarte, nor any political subdivision thereof is obligated in any manner for repayment of the debt.

Accordingly, such debt is not reported as liabilities in the accompanying financial statements.

NOTE 14 - COMMITMENTS AND CONTINGENCIES
A. Grant Audits
Under the terms of federal and state grants, periodic audits are required, and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City Management believes disallowance, if any, will be immaterial.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 12 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
56

B. Memorandum of Understanding with Foothill Transit
On September 21, 2017, the City entered into a memorandum of understanding (MOU) with Foothill Transit (Transit) in which Transit will purchase three electric 35-foot electric buses for operation of the City’s transit service. The City reimbursed the cost of two of the buses utilizing Prop A funds. The City will reimburse Transit for the cost of the third bus through monthly payments financed over a period of ten years at an annual interest rate of three percent. On April 1, 2019, the third bus was acquired by Transit for a base cost of $731,908 with interest over the next ten years of $116,175 for a total cost of $848,083. There is a monthly payment of $7,067.

C. Contractual Commitments
On July 1, 2025, the City entered into a contract with the Los Angeles Sheriff’s Department to provide city law enforcement services for the 2024-2025 fiscal year for an estimated cost of $5.55 million.

Project
Expenditures to date as of
June 30, 2025
Remaining
Commitments
Huntington Dr Median Islands Landscape Improvement $ 2,344,138 $ 164,261 Highland Promenade Project 116,600 1,000,290
Huntington Dr Street Improvements PS&E 26,916 113,504
Duarte City Hall Exterior Refresh - 847,000
Encumbrances
Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end, the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows:

Fund Encumbrances
General Fund $ 1,139,784
Community Improvement 1,000,290
Nonmajor Funds 220,570
Total $ 2,360,644
NOTE 15 - ADJUSTMENTS AND RESTATEMENTS OF BEGINNING BALANCE During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the “Restatement - GASB 101 implementation” column in the table below.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 14 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
57

Due to the increased amount of funding being received, the Community Improvement Fund should be reported as a major governmental fund. The Community Improvement Fund was previously reported as a nonmajor governmental fund. In addition, due to the decreased amount of funding received, the SB1/RMRA Special Revenue fund should not be reported as a major governmental fund. The SB1/RMRA Special Revenue fund was previously reported as a major governmental fund. The effect of the change within the financial reporting entity is summarized below in the “Adjustments - changes in major funds” column in the following table:

Net position/fund
balance as of
6/30/2024 as
previously reported
Restatement
GASB 101
implementation
Adjustments -
changes in
major funds
Net position/fund
balance as of
6/30/2024 as adjusted/
restated
Government-wide
Governmental activities $ 91,115,923 $ 489,621 $ - $ 91,605,544 Total government-wide $ 91,115,923 $ 489,621 $ - $ 91,605,544 Governmental funds
Major funds
General Fund $ 36,399,611 $ - $ - $ 36,399,611
Community Improvement Fund - - 382,723 382,723
Nonmajor funds
SB1/RMRA Fund 848,163 - (848,163) -
Other Governmental Funds 13,317,448 - 465,440 13,782,888 Total governmental funds $ 50,565,222 $ - $ - $ 50,565,222 NOTE 16 - SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through November 20, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.

CITY OF DUARTE
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
NOTE 15 - ADJUSTMENTS AND RESTATEMENTS OF BEGINNING BALANCE (CONTINUED) 58

Required Supplementary Information
59

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60

Budgetary Comparison Schedule - General Fund
Licenses and permits 777,000 1,377,000 1,593,994 216,994 Intergovernmental 3,438,000 3,438,000 3,355,394 (82,606) Charges for services 903,400 903,400 1,061,755 158,355
Use of money and property 990,500 1,430,500 1,778,170 347,670 Fines and fees 310,000 310,000 381,646 71,646
Interest income - - 14,215 14,215
Miscellaneous 100,000 100,000 261,807 161,807
Total revenues 22,712,900 23,252,900 24,555,760 1,302,860

EXPENDITURES
Current:

General government 6,962,400 7,111,400 6,499,464 611,936 Safety 7,593,100 7,966,100 7,607,432 358,668
Development 3,414,900 3,551,900 2,932,262 619,638
Recreation and cultural 3,507,800 3,760,600 3,680,662 79,938 Capital outlay 3,766,000 4,243,600 3,522,517 721,083
Debt service:

Principal retirement 20,300 20,300 347,726 (327,426)
Interest expense and fiscal charges 1,400 1,400 40,016 (38,616) Total expenditures 25,265,900 26,655,300 24,630,079 2,025,221 Excess (deficiency) of revenues over (under)
expenditures (2,553,000) (3,402,400) (74,319) 3,328,081

OTHER FINANCING SOURCES (USES)
Transfers in 1,025,500 1,025,500 958,033 (67,467)
Transfers out (1,023,900) (1,153,900) (1,168,214) (14,314) Debt issuance proceeds - - 345,056 345,056
Proceeds for sale of capital assets - - 22,651 22,651
Total other financing sources (uses) 1,600 (128,400) 157,526 285,926 Net change in fund balance $ (2,551,400) $ (3,530,800) 83,207 $ 3,614,007 Fund balance-beginning 36,399,611
Fund balance-ending $ 36,482,818
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $ 16,194,000 $ 15,694,000 $ 16,108,779 $ 414,779

CITY OF DUARTE
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2025
See Notes to the Required Supplementary Information 61

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62

Schedule of the City's Proportationate Share of the Net Pension Liability Proportionate Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 2 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2025 0.15145% $ 18,366,664 $ 4,261,826 431.0% 79.91%
2024 0.14806% 18,471,427 4,162,481 443.8% 77.97%
2023 0.15140% 17,488,020 4,381,600 399.1% 78.19%
2022 0.27327% 9,811,894 4,338,950 226.1% 90.49%
2021 0.27813% 15,108,868 4,272,231 353.7% 77.71%
2020 0.27900% 14,091,516 4,338,950 324.8% 77.73%
2019 0.58309% 13,503,297 4,004,164 337.2% 77.69%
2018 0.29560% 14,098,986 4,047,472 348.3% 73.31%
2017 0.30027% 12,675,786 3,970,085 319.3% 75.87%
2016 0.29101% 10,578,290 3,706,685 285.4% 79.82%
Notes to the Schedule:

Benefit Changes: None
Changes of Assumptions: None
2 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.

CITY OF DUARTE
Required Supplementary Information
Schedule of the City's Proportationate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years
See Notes to the Required Supplementary Information 63

Schedule of Pension Contributions
2025 $ 528,162 $ 1,996,283 $ (1,468,121) $ 4,261,826 46.8% 2024 506,617 506,617 - 3,985,824 12.7%
2023 505,435 505,435 - 4,381,600 11.5%
2022 525,340 525,340 - 4,338,950 12.1%
2021 537,636 537,636 - 4,272,231 12.6%
2020 459,105 459,105 - 4,004,164 11.5%
2019 449,981 449,981 - 4,047,472 11.1%
2018 421,885 421,885 - 3,970,085 10.6%
2017 400,604 400,604 - 3,706,684 10.8%
2016 285,477 285,477 - 2,467,539 11.6%
Fiscal Year Actuarially Actual Contribution Contribution as a Ending Determined Employer Deficiency Covered % of Covered June 30, Contribution 1 Contributions 2(Excess) Payroll 3 Payroll Notes to the Schedule:
1 Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. 2 Some employers may choose to make additional contributions towards their unfunded liability. Contributions for such plans exceed the actuarially determined contributions. 3 Covered payroll represented above is based on pensionable earnings provided by the employer. However, GASB Statement No. 68 defines covered payroll as the total payroll of employee’s pension plan. Accordingly, if pensionable earnings are different that total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal year 2023-2024 were from June 30, 2021 public agency valuations.

Actuarial cost method Entry age normal cost method
Amortization method Level percent of payroll
Average remaining period 18 years as of the valuation date Asset valuation method 30-year direct rate smoothing
Actuarial assumptions
Discount rate 6.90%
Inflation 2.50%
Projected salary increases Varies by entry age and service Payroll growth 2.75%
Individual salary growth A merit scale varying in duration of employment coupled with an assumed annual inflation growth of 2.5% and an annual production growth of 0.25% Retirement age The probabilities of retirement are based on the 2015 CalPERS’ experience study for the period 1997 to 2011.

Mortality The probabilities of mortality are based on CalPERS’ specific data. The rate incorporates 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 that can be found on the CalPERS’ website.

CITY OF DUARTE
Required Supplementary Information
Schedules of Pension Contributions
As of June 30, For the Last Ten Fiscal Years
See Notes to the Required Supplementary Information 64

Schedule of Changes in the Net OPEB Liability and Related Ratios 2025 2024
Measurement Date 6/30/2024 6/30/2023

TOTAL OPEB LIABILITY
Service cost $ 343,775 $ 333,762
Interest on total pension liability 645,937 617,179
Difference between expected and actual experience 77,417 - Changes of assumptions 162,207 -
Changed due to plan experience - -
Benefit payments, including refunds of employee contributions (519,486) (443,810) Net change in total OPEB liability 709,850 507,131
Total OPEB liability-beginning 10,681,587 10,174,456
Total OPEB liability-ending (a) 11,391,437 10,681,587

PLAN FIDUCIARY NET POSITION
Contributions-employer 692,486 692,810
Net Increase (decrease) in fair value of investments 689,047 357,378 Benefit payments, including refunds of employee contributions (519,486) (443,810) Administrative expense - 395,384
Net change in fiduciary net position 862,047 1,001,762
Plan fiduciary net position-beginning 6,833,559 5,831,797 Plan fiduciary net position-ending (b) 7,695,606 6,833,559 Net OPEB liability/(asset) (a) - (b) $ 3,695,831 $ 3,848,028 Plan fiduciary net position as a percentage of the total OPEB liability 67.56% 63.98% Covered-employee payroll $ 4,816,287 $ 4,246,072
Net OPEB liability/(asset) as a percentage of covered-employee payroll 76.74% 90.63% Notes to Schedule:

Benefit Changes: None
Changes of Assumptions: None
1 Amount includes implicit subsidy associated with benefits paid. 2 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.

CITY OF DUARTE
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, For the Last Ten Fiscal Years2
See Notes to the Required Supplementary Information 65

2023 2022 2021 2020 2019 2018
6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 $ 459,669 $ 447,366 $ 389,582 $ 327,023 $ 266,160 $ 258,408 790,303 748,420 633,116 575,620 495,518 464,777
- 35,353 1,285,548 (331,435) 65,900 983,161
392,831 583,430 (419,273) - 2,167,125 -
(4,196,475) - - - - -
(459,831) (462,219) (431,406) (365,155) (359,809) (662,583) (3,013,503) 1,352,350 1,457,567 206,053 2,634,894 1,043,763 13,187,959 11,835,609 10,378,042 10,171,989 7,537,095 6,493,332 10,174,456 13,187,959 11,835,609 10,378,042 10,171,989 7,537,095 1,031,831 868,219 876,406 741,655 651,809 915,033
300,420 (688,055) 996,936 81,965 176,444 189,196
(459,831) (462,219) (431,406) (365,155) (359,809) (662,583) 144,868 (29,705) (24,255) - - (13,347)
1,017,288 (311,760) 1,417,681 458,465 468,444 428,299
4,814,509 5,126,269 3,708,588 3,250,123 2,781,679 2,353,380 5,831,797 4,814,509 5,126,269 3,708,588 3,250,123 2,781,679 $ 4,342,659 $ 8,373,450 $ 6,709,340 $ 6,669,454 $ 6,921,866 $ 4,755,416

57.32% 36.51% 43.31% 35.73% 31.95% 36.91%
$ 4,422,484 $ 3,613,652 $ 3,579,723 $ 4,325,247 $ 3,926,264 $ 4,211,793

98.20% 231.72% 187.43% 154.20% 176.30% 112.91%

CITY OF DUARTE
Required Supplementary Information
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) As of June 30, For the Last Ten Fiscal Years2
See Notes to the Required Supplementary Information 66

Schedule of OPEB Contributions
2025 2024
Actuarially Determined Contribution $ 692,486 $ 709,176 Contribution in Relation to the Actuarially Determined Contributions (599,700) (692,810) Contribution Deficiency (Excess) $ 92,786 $ 16,366
Covered-Employee Payroll $ 4,816,287 $ 4,246,072
Contributions as a percentage of Covered-Employee Payroll 12.5% 16.32% Notes to Schedule:
1 Fiscal Year 2018 was the 1st year of implementation therefore only eight years are shown.

CITY OF DUARTE
Required Supplementary Information
Schedule of OPEB Contributions
As of June 30, For the Last Ten Fiscal Years1
See Notes to the Required Supplementary Information 67

2023 2022 2021 2020 2019 2018
$ 1,022,910 $ 867,895 $ 765,007 $ 803,739 $ 782,535 $ 1,491,134 (1,031,831) (868,219) (876,406) (741,655) (651,809) (915,033) $ (8,921) $ (324) $ (111,399) $ 62,084 $ 130,726 $ 576,101 $ 4,422,484 $ 3,613,652 $ 3,579,723 $ 4,325,247 $ 3,926,264 $ 4,211,793

23.33% 24.03% 24.48% 17.15% 16.60% 21.73%

CITY OF DUARTE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF OPEB CONTRIBUTIONS (CONTINUED)
AS OF JUNE 30, 2023, FOR THE LAST TEN FISCAL YEARS
See Notes to the Required Supplementary Information 68

CITY OF DUARTE
Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
NOTE 1: BUDGETS AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared in accordance with accounting principles generally accepted in the United States of America and on the modified accrual basis of accounting for its governmental funds. The City Manager or designee is authorized to transfer budgeted amounts between the accounts of any department. Any revisions that alter the total appropriations of any department or fund must be approved by the City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the fund level.
69

Other Supplemental Information
70

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71

Combining and Individual Fund Statements and Schedules:
72

Combining Balance Sheet - Nonmajor Governmental Funds
ASSETS
Cash and cash equivalents $ 799,773 $ 2,487,695 $ 311,146 $ - Receivables
Accounts - - - -
Taxes 113,759 56,130 15,504 -
Due from other governments - - - 360
Land held for resale - - - -
Total assets $ 913,532 $ 2,543,825 $ 326,650 $ 360

LIABILITIES
Accounts payable $ 348,919 $ 144,549 $ 251,488 $ 300
Accrued payroll - - - -
Retainage payable 17,837 4,218 - -
Deposits - - - -
Due to other funds - - - 60
Total liabilities 366,756 148,767 251,488 360

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -

FUND BALANCES (DEFICITS)
Restricted for:

Development projects - - 75,162 -
Recreation and culture - - - -
Transportation 546,776 2,395,058 - -
Unassigned - - - -
Total fund balances (deficits) 546,776 2,395,058 75,162 - Total liabilities, deferred inflows, and fund
balances (deficits) $ 913,532 $ 2,543,825 $ 326,650 $ 360 Special Revenue Funds
SB1/RMRA
Special
Revenue
State Gasoline
Tax
Lighting and
Landscaping
Community
Development
Block Grant

CITY OF DUARTE
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2025
73

Special Revenue Funds
Supplemental
Law
Enforcement
Air Quality
Management Measure M Quimby Act
ASSETS
Cash and cash equivalents $ 14,993 $ 148,642 $ 1,081,022 $ 74,317 Receivables
Accounts - - - -
Taxes - - - -
Due from other governments - 8,234 - -
Land held for resale - - - -
Total assets $ 14,993 $ 156,876 $ 1,081,022 $ 74,317

LIABILITIES
Accounts payable $ 14,993 $ - $ 349,430 $ -
Accrued payroll - - - -
Retainage payable - - 18,250 -
Deposits - - - -
Due to other funds - - - -
Total liabilities 14,993 - 367,680 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 8,234 - -
Total deferred inflows of resources - 8,234 - -

FUND BALANCES (DEFICITS)
Restricted for:

Development projects - - - -
Recreation and culture - - - 74,317
Transportation - 148,642 713,342 -
Unassigned - - - -
Total fund balances (deficits) - 148,642 713,342 74,317 Total liabilities, deferred inflows, and fund
balances (deficits) $ 14,993 $ 156,876 $ 1,081,022 $ 74,317

CITY OF DUARTE
Combining Balance Sheet - Nonmajor Governmental Funds (Continued) June 30, 2025
74

Special Revenue Funds
Prop A Transit
Housing
Authority Prop C Transit PEG
ASSETS
Cash and cash equivalents $ 1,302,799 $ 2,173,348 $ 537,511 $ - Receivables
Accounts - - - 5,609
Taxes - - - -
Due from other governments - - - -
Prepaid expenses - - - -
Land held for resale - - - -
Total assets $ 1,302,799 $ 2,173,348 $ 537,511 $ 5,609

LIABILITIES
Accounts payable $ 48,119 $ - $ 37,584 $ -
Accrued payroll 1,626 - 1,329 -
Retainage payable - - - -
Deposits - - - -
Due to other funds - - - 5,609
Total liabilities 49,745 - 38,913 5,609

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -

FUND BALANCES (DEFICITS)
Restricted for:

Development projects - 2,173,348 - -
Recreation and culture - - - -
Transportation 1,253,054 - 498,598 -
Unassigned - - - -
Total fund balances (deficits) 1,253,054 2,173,348 498,598 - Total liabilities, deferred inflows, and fund
balances (deficits) $ 1,302,799 $ 2,173,348 $ 537,511 $ 5,609

CITY OF DUARTE
Combining Balance Sheet - Nonmajor Governmental Funds (Continued) June 30, 2025
75

Special Revenue Funds
Measure R LR
Transit
Park
Development Measure W
Bicycle and
Pedestrian
ASSETS
Cash and cash equivalents $ 827,666 $ - $ 484,842 $ -
Receivables
Accounts - - - -
Taxes - - - -
Due from other governments - 175,123 - -
Prepaid expenses - - - -
Land held for resale - - - -
Total assets $ 827,666 $ 175,123 $ 484,842 $ -

LIABILITIES
Accounts payable $ 321,360 $ 17,555 $ - $ -
Accrued payroll - - - -
Retainage payable 15,094 - - -
Deposits - - - -
Due to other funds - 245,862 - -
Total liabilities 336,454 263,417 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 175,123 - -
Total deferred inflows of resources - 175,123 - -

FUND BALANCES (DEFICITS)
Restricted for:

Development projects - - 484,842 -
Recreation and culture - - - -
Transportation 491,212 - - -
Unassigned - (263,417) - -
Total fund balances (deficits) 491,212 (263,417) 484,842 - Total liabilities, deferred inflows, and fund
balances (deficits) $ 827,666 $ 175,123 $ 484,842 $ -

CITY OF DUARTE
Combining Balance Sheet - Nonmajor Governmental Funds (Continued) June 30, 2025
76

Special
Revenue
Funds
Capital Project
Funds
Debt Service
Funds
Low and
Moderate
Housing
Inclusionary
Housing
Infrastructure
Debt Service
Fund
Total
Nonmajor
Funds
ASSETS
Cash and cash equivalents $ 3,485,632 $ 580,724 $ - $ 14,310,110 Receivables
Accounts - - - 5,609
Taxes - - - 185,393
Due from other governments - - - 183,717
Land held for resale 881,753 - - 881,753
Total assets $ 4,367,385 $ 580,724 $ - $ 15,566,582

LIABILITIES
Accounts payable $ - $ - $ - $ 1,534,297
Accrued payroll - - - 2,955
Retainage payable - - - 55,399
Deposits 30,000 - - 30,000
Due to other funds - - - 251,531
Total liabilities 30,000 - - 1,874,182

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 183,357
Total deferred inflows of resources - - - 183,357

FUND BALANCES (DEFICITS)
Restricted for:

Development projects 4,337,385 580,724 - 7,651,461
Recreation and culture - - - 74,317
Transportation - - - 6,046,682
Unassigned - - - (263,417)
Total fund balances (deficits) 4,337,385 580,724 - 13,509,043 Total liabilities, deferred inflows, and fund
balances (deficits) $ 4,367,385 $ 580,724 $ - $ 15,566,582

CITY OF DUARTE
Combining Balance Sheet - Nonmajor Governmental Funds (Continued) June 30, 2025
77

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78

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Special Revenue Funds
Formerly Major
Fund
SB1/RMRA
Special Revenue
State Gasoline
Tax
Lighting and
Landscaping
Community
Development
Block Grant

REVENUES
Intergovernmental $ 645,551 $ 661,497 $ - $ 114,907
Use of money and property 31,771 100,784 - -
Special assessments - - 1,023,923 -
Charges for services - - - -
Miscellaneous - 5,125 - -
Total revenues 677,322 767,406 1,023,923 114,907

EXPENDITURES
Current:

Safety - - - -
Development - - 1,621,767 6,720
Recreation and cultural - - - -
Transportation - 269,149 - -
Capital outlay 815,591 305,684 - 108,188
Debt Service:

Principal retirement - - - -
Interest expense and fiscal charges - - - -
Total expenditures 815,591 574,833 1,621,767 114,908
Excess (deficiency) of revenues over
(under) expenditures (138,269) 192,573 (597,844) (1)

OTHER FINANCING SOURCES (USES)
Transfers in - - 910,385 1
Transfers out (163,118) (112,884) (343,200) -
Total other financing sources (uses) (163,118) (112,884) 567,185 1 Net change in fund balances (301,387) 79,689 (30,659) - Fund balances - beginning - 2,315,369 105,821 -
Change within financial reporting entity 848,163 - - -
Fund balances (deficit) - beginning, as restated 848,163 2,315,369 105,821 - Fund balances (deficit) - ending $ 546,776 $ 2,395,058 $ 75,162 $ -

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
79

Special Revenue Funds
Supplemental
Law Enforcement
Air Quality
Management Measure M Quimby Act

REVENUES
Intergovernmental $ 194,663 $ 30,967 $ 421,505 $ -
Use of money and property 2,518 5,849 46,704 2,934
Special assessments - - - -
Charges for services - - - -
Miscellaneous - - - -
Total revenues 197,181 36,816 468,209 2,934

EXPENDITURES
Current:

Safety 197,181 - - -
Development - - - -
Recreation and cultural - - 91,105 -
Transportation - - - -
Capital outlay - 6,933 505,328 -
Debt Service:

Principal retirement - 27,851 - -
Interest expense and fiscal charges - 2,428 - -
Total expenditures 197,181 37,212 596,433 -
Excess (deficiency) of revenues over
(under) expenditures - (396) (128,224) 2,934

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - (119,286) -
Total other financing sources (uses) - - (119,286) -
Net change in fund balances - (396) (247,510) 2,934
Fund balances - beginning - 149,038 960,852 71,383
Change within financial reporting entity - - - -
Fund balances (deficit) - beginning, as restated - 149,038 960,852 71,383 Fund balances (deficit) - ending $ - $ 148,642 $ 713,342 $ 74,317

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
80

Special Revenue Funds
Prop A Transit
Housing
Authority Prop C Transit PEG

REVENUES
Intergovernmental $ 598,138 $ - $ 496,140 $ -
Use of money and property 51,467 85,846 21,169 1,458
Special assessments - - - -
Charges for services - - - 23,769
Miscellaneous 9,227 - 7,550 -
Total revenues 658,832 85,846 524,859 25,227

EXPENDITURES
Current:

Safety - - - -
Development - 19,805 - -
Recreation and cultural - - - -
Transportation 363,540 - 291,787 -
Capital outlay 46,645 - 38,164 128,474
Debt Service:

Principal retirement - - - -
Interest expense and fiscal charges - - - -
Total expenditures 410,185 19,805 329,951 128,474
Excess (deficiency) of revenues over
(under) expenditures 248,647 66,041 194,908 (103,247)

OTHER FINANCING SOURCES (USES)
Transfers in - - - 36,991
Transfers out (76,000) - (61,700) -
Total other financing sources (uses) (76,000) - (61,700) 36,991 Net change in fund balances 172,647 66,041 133,208 (66,256) Fund balances - beginning 1,080,407 2,107,307 365,390 66,256 Change within financial reporting entity - - - -
Fund balances (deficit) - beginning, as restated 1,080,407 2,107,307 365,390 66,256 Fund balances (deficit) - ending $ 1,253,054 $ 2,173,348 $ 498,598 $ -

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
81

Special Revenue Funds
Measure R LR
Transit
Park
Development Measure W
Bicycle and
Pedestrian

REVENUES
Intergovernmental $ 372,036 $ 65,733 $ 253,385 $ 23,416 Use of money and property 32,402 - 18,143 -
Special assessments - - - -
Charges for services - - - -
Miscellaneous - - - -
Total revenues 404,438 65,733 271,528 23,416

EXPENDITURES
Current:

Safety - - - -
Development - - 219,294 -
Recreation and cultural - 37,625 - -
Transportation - - - -
Capital outlay 409,227 211,395 14,865 23,416
Debt Service:

Principal retirement - - - -
Interest expense and fiscal charges - - - -
Total expenditures 409,227 249,020 234,159 23,416
Excess (deficiency) of revenues over
(under) expenditures (4,789) (183,287) 37,369 -

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (81,845) - - -
Total other financing sources (uses) (81,845) - - -
Net change in fund balances (86,634) (183,287) 37,369 - Fund balances - beginning 577,846 (80,130) 447,473 -
Change within financial reporting entity - - - -
Fund balances (deficit) - beginning, as restated 577,846 (80,130) 447,473 - Fund balances (deficit) - ending $ 491,212 $ (263,417) $ 484,842 $ -

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
82

Special Revenue
Funds Capital Projects Funds
Debt Service
Funds
Formerly
Nonmajor Fund
Low and
Moderate
Housing
Inclusionary
Housing
Community
Improvement
Infrastructure
Debt Service
Fund

REVENUES
Intergovernmental $ - $ - $ - $ -
Use of money and property 137,698 22,923 - -
Special assessments - - - -
Charges for services - - - -
Miscellaneous - - - -
Total revenues 137,698 22,923 - -

EXPENDITURES
Current:

Safety - - - -
Development 10,225 - - -
Recreation and cultural - - - -
Transportation - - - -
Capital outlay - - - -
Debt Service:

Principal retirement - - - 169,762
Interest expense and fiscal charges - - - 51,075
Total expenditures 10,225 - - 220,837
Excess (deficiency) of revenues over
(under) expenditures 127,473 22,923 - (220,837)

OTHER FINANCING SOURCES (USES)
Transfers in - - - 220,837
Transfers out - - - -
Total other financing sources (uses) - - - 220,837
Net change in fund balances 127,473 22,923 - -
Fund balances - beginning 4,209,912 557,801 382,723 -
Change within financial reporting entity - - (382,723) - Fund balances (deficit) - beginning, as restated 4,209,912 557,801 - - Fund balances (deficit) - ending $ 4,337,385 $ 580,724 $ - $ -

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
83

Total
Nonmajor
Funds

REVENUES
Intergovernmental $ 3,877,938
Use of money and property 561,666
Special assessments 1,023,923
Charges for services 23,769
Miscellaneous 21,902
Total revenues 5,509,198

EXPENDITURES
Current:

Safety 197,181
Development 1,877,811
Recreation and cultural 128,730
Transportation 924,476
Capital outlay 2,613,910
Debt Service:

Principal retirement 197,613
Interest expense and fiscal charges 53,503
Total expenditures 5,993,224
Excess (deficiency) of revenues over
(under) expenditures (484,026)

OTHER FINANCING SOURCES (USES)
Transfers in 1,168,214
Transfers out (958,033)
Total other financing sources (uses) 210,181
Net change in fund balances (273,845)
Fund balances - beginning 13,317,448
Change within financial reporting entity 465,440
Fund balances (deficit) - beginning, as restated 13,782,888 Fund balances (deficit) - ending $ 13,509,043

CITY OF DUARTE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2025
84

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85

Budgetary Comparison Schedules - Nonmajor Special Revenue Funds 86

SB1/RMRA Special Revenue
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 583,400 $ 583,400 $ 645,551 $ (62,151) Use of money and property 29,200 29,200 31,771 (2,571)
Total revenues 612,600 612,600 677,322 (64,722)

EXPENDITURES
Capital outlay 535,000 984,000 815,591 168,409
Total expenditures 535,000 984,000 815,591 168,409
Excess (deficiency) of revenues
over (under) expenditures 77,600 (371,400) (138,269) 233,131

OTHER FINANCING SOURCES (USES)
Transfers out (107,000) (196,800) (163,118) (33,682)
Total other financing sources (uses) (107,000) (196,800) (163,118) (33,682) Net change in fund balance $ (29,400) $ (568,200) (301,387) $ 266,813 Fund balance-beginning 848,164
Fund balance-ending $ 546,776

CITY OF DUARTE
Budgetary Comparison Schedule
SB1/RMRA Special Revenue
For the Fiscal Year Ended June 30, 2025
87

State Gasoline Tax
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 626,700 $ 626,700 $ 661,497 $ 34,797 Use of money and property 97,500 97,500 100,784 3,284
Miscellaneous - - 5,125 5,125
Total revenues 724,200 724,200 767,406 43,206

EXPENDITURES
Capital outlay 436,000 544,000 305,684 238,316
Total expenditures 1,006,000 1,122,185 574,833 547,352
Excess (deficiency) of revenues
over (under) expenditures (281,800) (397,985) 192,573 590,558

OTHER FINANCING SOURCES (USES)
Transfers out (201,200) (223,700) (112,884) (110,816)
Total other financing sources (uses) (201,200) (223,700) (112,884) (110,816) Net change in fund balance $ (483,000) $ (621,685) 79,689 $ 701,374 Fund balance-beginning 2,315,367
Fund balance-ending $ 2,395,058

CITY OF DUARTE
Budgetary Comparison Schedule
State Gasoline Tax
For the Fiscal Year Ended June 30, 2025
88

Lighting and Landscaping
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Special assessments $ 1,013,300 $ 1,013,300 $ 1,023,923 $ 10,623 Total revenues 1,013,300 1,013,300 1,023,923 10,623

EXPENDITURES
Current:

Development 1,516,800 1,590,500 1,621,767 (31,267)
Total expenditures 1,516,800 1,590,500 1,621,767 (31,267) Excess (deficiency) of revenues
over (under) expenditures (503,500) (577,200) (597,844) (20,644)

OTHER FINANCING SOURCES (USES)
Transfers in 803,000 878,700 910,385 (31,685)
Transfers out (343,200) (343,200) (343,200) -
Total other financing sources (uses) 459,800 535,500 567,185 (31,685) Net change in fund balance $ (43,700) $ (41,700) (30,659) $ 11,041 Fund balance-beginning 105,819
Fund balance-ending $ 75,162

CITY OF DUARTE
Budgetary Comparison Schedule
Lighting and Landscaping
For the Fiscal Year Ended June 30, 2025
89

Community Development Block Grant
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 141,200 $ 141,200 $ 114,907 $ (26,293) Total revenues 141,200 141,200 114,907 (26,293)

EXPENDITURES
Current:

Development 10,000 10,000 6,720 3,280
Capital outlay 131,200 131,200 108,188 23,012
Total expenditures 141,200 141,200 114,908 26,292
Excess (deficiency) of revenues
over (under) expenditures - - (1) (1)

OTHER FINANCING SOURCES (USES)
Transfers in - - 1 (1)
Total other financing sources (uses) - - 1 (1)
Net change in fund balance $ - $ - - $ -
Fund balance-beginning -
Fund balance-ending $ -

CITY OF DUARTE
Budgetary Comparison Schedule
Community Development Block Grant
For the Fiscal Year Ended June 30, 2025
90

Supplemental Law Enforcement
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 165,000 $ 194,700 $ 194,663 $ (37)
Use of money and property 2,300 3,800 2,518 (1,282)
Total revenues 167,300 198,500 197,181 (1,319)

EXPENDITURES
Current:

Safety 167,300 198,500 197,181 1,319
Total expenditures 167,300 198,500 197,181 1,319
Net change in fund balance $ - $ - - $ -
Fund balance-beginning -
Fund balance-ending $ -

CITY OF DUARTE
Budgetary Comparison Schedule
Supplemental Law Enforcement
For the Fiscal Year Ended June 30, 2025
91

Air Quality Management
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 28,000 $ 28,000 $ 30,967 $ 2,967
Use of money and property 7,400 7,400 5,849 (1,551)
Total revenues 35,400 35,400 36,816 1,416

EXPENDITURES
Capital outlay 43,500 43,500 6,933 36,567
Debt service:

Principal retirement - - 27,851 (27,851)
Interest expense and fiscal charges - - 2,428 (2,428)
Total expenditures 43,500 43,500 37,212 6,288
Net change in fund balance $ (8,100) $ (8,100) (396) $ 7,704 Fund balance-beginning 149,038
Fund balance-ending $ 148,642

CITY OF DUARTE
Budgetary Comparison Schedule
Air Quality Management
For the Fiscal Year Ended June 30, 2025
92

Measure M
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 452,100 $ 452,100 $ 421,505 $ (30,595) Use of money and property 22,400 22,400 46,704 24,304
Total revenues 474,500 474,500 468,209 (6,291)

EXPENDITURES
Current:

Recreation and cultural - 60,000 91,105 (31,105)
Capital outlay 615,000 627,000 505,328 121,672
Total expenditures 615,000 687,000 596,433 90,567
Excess (deficiency) of revenues
over (under) expenditures (140,500) (212,500) (128,224) 84,276

OTHER FINANCING SOURCES (USES)
Transfers out (123,000) (132,500) (119,286) (13,214)
Total other financing sources (uses) (123,000) (132,500) (119,286) (13,214) Net change in fund balance $ (263,500) $ (345,000) (247,510) $ 97,490 Fund balance-beginning 960,852
Fund balance-ending $ 713,342

CITY OF DUARTE
Budgetary Comparison Schedule
Measure M
For the Fiscal Year Ended June 30, 2025
93

Quimby Act
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property $ 3,100 $ 3,100 $ 2,934 $ (166) Total revenues 3,100 3,100 2,934 (166)

EXPENDITURES
Capital outlay 75,100 75,100 - 75,100
Total expenditures 75,100 75,100 - 75,100
Net change in fund balance $ (72,000) $ (72,000) 2,934 $ 74,934 Fund balance-beginning 71,383
Fund balance-ending $ 74,317

CITY OF DUARTE
Budgetary Comparison Schedule
Quimby Act
For the Fiscal Year Ended June 30, 2025
94

Prop A Transit
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 641,200 $ 641,200 $ 598,138 $ (43,062) Use of money and property 40,300 40,300 51,467 11,167
Miscellaneous 10,000 10,000 9,227 (773)
Total revenues 691,500 691,500 658,832 (32,668)

EXPENDITURES
Current:

Transportation 325,900 332,700 363,540 (30,840)
Capital outlay 47,000 47,000 46,645 355
Total expenditures 372,900 379,700 410,185 (30,485)
Excess (deficiency) of revenues
over (under) expenditures 318,600 311,800 248,647 (63,153)

OTHER FINANCING SOURCES (USES)
Transfers out (74,600) (76,000) (76,000) -
Total other financing sources (uses) (74,600) (76,000) (76,000) - Net change in fund balance $ 244,000 $ 235,800 172,647 $ (63,153) Fund balance-beginning 1,080,407
Fund balance-ending $ 1,253,054

CITY OF DUARTE
Budgetary Comparison Schedule
Prop A Transit
For the Fiscal Year Ended June 30, 2025
95

Housing Authority
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property $ 82,900 $ 82,900 $ 85,846 $ 2,946 Total revenues 82,900 82,900 85,846 2,946

EXPENDITURES
Current:

Development 131,600 131,600 19,805 111,795
Total expenditures 131,600 131,600 19,805 111,795
Net change in fund balance $ (48,700) $ (48,700) 66,041 $ 114,741 Fund balance-beginning 2,107,307
Fund balance-ending $ 2,173,348

CITY OF DUARTE
Budgetary Comparison Schedule
Housing Authority
For the Fiscal Year Ended June 30, 2025
96

Prop C Transit
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 531,800 $ 531,800 $ 496,140 $ (35,660) Use of money and property 13,400 13,400 21,169 7,769
Miscellaneous 8,000 8,000 7,550 (450)
Total revenues 553,200 553,200 524,859 (28,341)

EXPENDITURES
Current:

Transportation 264,300 270,300 291,787 (21,487)
Capital outlay 38,200 38,200 38,164 36
Total expenditures 302,500 308,500 329,951 (21,451)
Excess (deficiency) of revenues
over (under) expenditures 250,700 244,700 194,908 (49,792)

OTHER FINANCING SOURCES (USES)
Transfers out (60,500) (61,700) (61,700) -
Total other financing sources (uses) (60,500) (61,700) (61,700) - Net change in fund balance $ 190,200 $ 183,000 133,208 $ (49,792) Fund balance-beginning 365,390
Fund balance-ending $ 498,598

CITY OF DUARTE
Budgetary Comparison Schedule
Prop C Transit
For the Fiscal Year Ended June 30, 2025
97

PEG
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for services $ 29,000 $ 7,000 $ 23,769 $ 16,769 Use of money and property 1,100 1,100 1,458 358
Total revenues 30,100 8,100 25,227 17,127

EXPENDITURES
Capital outlay 185,000 129,700 128,474 1,226
Total expenditures 185,000 129,700 128,474 1,226
Excess (deficiency) of revenues
over (under) expenditures (154,900) (121,600) (103,247) 18,353

OTHER FINANCING SOURCES (USES)
Transfers in - 54,300 36,991 17,309
Total other financing sources (uses) - 54,300 36,991 17,309 Net change in fund balance $ (154,900) $ (67,300) (66,256) $ 1,044 Fund balance-beginning 66,256
Fund balance-ending $ -

CITY OF DUARTE
Budgetary Comparison Schedule
PEG
For the Fiscal Year Ended June 30, 2025
98

Measure R LR Transit
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 398,900 $ 398,900 $ 372,036 $ (26,864) Use of money and property 53,500 53,500 32,402 (21,098) Total revenues 452,400 452,400 404,438 (47,962)

EXPENDITURES
Capital outlay 580,000 580,000 409,227 170,773
Total expenditures 580,000 580,000 409,227 170,773
Excess (deficiency) of revenues
over (under) expenditures (127,600) (127,600) (4,789) 122,811

OTHER FINANCING SOURCES (USES)
Transfers out (116,000) (116,000) (81,845) (34,155)
Total other financing sources (uses) (116,000) (116,000) (81,845) (34,155) Net change in fund balance $ (243,600) $ (243,600) (86,634) $ 156,966 Fund balance-beginning 577,846
Fund balance-ending $ 491,212

CITY OF DUARTE
Budgetary Comparison Schedule
Measure R LR Transit
For the Fiscal Year Ended June 30, 2025
99

Park Development
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 514,500 $ 514,500 $ 65,733 $ (448,767) Total revenues 514,500 514,500 65,733 (448,767)

EXPENDITURES
Current:

Recreation and cultural 46,000 54,600 37,625 16,975
Capital outlay 468,500 291,500 211,395 80,105
Total expenditures 514,500 346,100 249,020 97,080
Net change in fund balance $ - $ 168,400 (183,287) $ (351,687) Fund balance-beginning (80,130)
Fund balance-ending $ (263,417)

CITY OF DUARTE
Budgetary Comparison Schedule
Park Development
For the Fiscal Year Ended June 30, 2025
100

Measure W
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 250,000 $ 250,000 $ 253,385 $ 3,385 Use of money and property 3,000 3,000 18,143 15,143
Total revenues 253,000 253,000 271,528 18,528

EXPENDITURES
Current:

Development 181,000 181,000 219,294 (38,294)
Capital outlay 150,000 15,000 14,865 135
Total expenditures 331,000 196,000 234,159 (38,159)
Net change in fund balance $ (78,000) $ 57,000 37,369 $ (19,631) Fund balance-beginning 447,473
Fund balance-ending $ 484,842

CITY OF DUARTE
Budgetary Comparison Schedule
Measure W
For the Fiscal Year Ended June 30, 2025
101

Bicycle and Pedestrian
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 23,400 $ 23,400 $ 23,416 $ 16
Total revenues 23,400 23,400 23,416 16

EXPENDITURES
Capital outlay 23,400 23,400 23,416 (16)
Total expenditures 23,400 23,400 23,416 (16)
Net change in fund balance $ - $ - - $ -
Fund balance-beginning -
Fund balance-ending $ -

CITY OF DUARTE
Budgetary Comparison Schedule
Bicycle and Pedestrian
For the Fiscal Year Ended June 30, 2025
102

Low and Moderate Housing
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property $ 168,900 $ 168,900 $ 137,698 $ (31,202) Total revenues 168,900 168,900 137,698 (31,202)

EXPENDITURES
Current:

Development 8,600 10,200 10,225 (25)
Total expenditures 8,600 10,200 10,225 (25)
Net change in fund balance $ 160,300 $ 158,700 127,473 $ (31,227) Fund balance-beginning 4,209,912
Fund balance-ending $ 4,337,385

CITY OF DUARTE
Budgetary Comparison Schedule
Low and Moderate Housing
For the Fiscal Year Ended June 30, 2025
103

Budgetary Comparison Schedules – Capital Project Funds
104

Inclusionary Housing
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property $ 24,300 $ 24,300 $ 22,923 $ (1,377) Total revenues 24,300 24,300 22,923 (1,377)
Net change in fund balance $ 24,300 $ 24,300 22,923 $ (1,377) Fund balance-beginning 557,801
Fund balance-ending $ 580,724

CITY OF DUARTE
Budgetary Comparison Schedule - Capital Projects Funds
Inclusionary Housing
For the Fiscal Year Ended June 30, 2025
105

Community Improvement
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 1,933,000 $ 1,933,000 $ 510,365 $ (1,422,635) Use of money and property 4,400 4,400 17,573 13,173
Total revenues 1,937,400 1,937,400 527,938 (1,409,462)

EXPENDITURES
Capital outlay 1,933,000 1,598,000 481,455 1,116,545
Total expenditures 1,933,000 1,598,000 481,455 1,116,545 Net change in fund balance $ 4,400 $ 339,400 46,483 $ (292,917) Fund balance-beginning 382,723
Fund balance-ending $ 429,206

CITY OF DUARTE
Required Supplementary Information
Budgetary Comparison Schedule - Capital Projects Funds
Community Improvement
For the Fiscal Year Ended June 30, 2025
106

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107

Budgetary Comparison Schedules – Debt Service Funds
108

This page left intentionally blank.
109

Infrastructure Debt Service Fund
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

EXPENDITURES
Debt service:

Principal retirement $ 169,800 $ 169,800 $ 169,762 $ 38 Interest expense and fiscal charges 51,100 51,100 51,075 25 Total expenditures 220,900 220,900 220,837 63

OTHER FINANCING SOURCES (USES)
Transfers in 220,900 220,900 220,837 63
Total other financing sources (uses) 220,900 220,900 220,837 63 Net change in fund balance $ - $ - - $ -
Fund balance-beginning -
Fund balance-ending $ -

CITY OF DUARTE
Budgetary Comparison Schedule
Infrastructure Debt Service Fund
For the Fiscal Year Ended June 30, 2025
110

End of Report
If there are questions, or a need for more information, please contact:

City of Duarte
1600 Huntington Drive
Duarte, California, 91010
(626) 357-7931