El Cerrito City Council
February 3, 2026

Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

This information can be interpreted for you free of charge. Visit City Hall at 10890 San Pablo Ave., El Cerrito, CA 94530 or learn more at www.elcerrito.gov/LanguageAccess

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这些信息可免费为您解释。请访问位于 10890 San Pablo Ave., El Cerrito, CA 94530 的市政厅，或访问 www.elcerrito.gov/LanguageAccess 了解更多信息

TUESDAY, FEBRUARY 3, 2026
REGULAR CITY COUNCIL MEETING (6:00 PM)
Council Chambers - 10890 San Pablo Ave, El Cerrito
Closed Captions Available Via Zoom:
https://us06web.zoom.us/j/81633024551?pwd=mYgw0xUnbzByKTxd2y2z39iQN9O3NG.1 Meeting ID: 816 3302 4551 Passcode: 293336 Dial in: 1-408-638-0968 View:

1. Cable T.V. Broadcast on KCRT Channel 28

2. Livestream Online at www.elcerrito.gov/CouncilMeetingMaterials Accommodations: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at 510- 215-4305. Notification 48 hours prior to the meeting will enable the City to make reasonable accommodations. Closed Captions available via zoom.

Conduct: This meeting shall be conducted pursuant to the El Cerrito City Council Rules of Order and Procedure, including adjourning by 11:00 PM unless extended to a specific time determined by a majority of the Council.

Public Comments:

1. In-person by submitting a request to speak to the City Clerk.

2. By Email to [email protected] identified in the subject line as Public Comments – Agenda Item #.

Written comments received by 2:00 p.m. the day of the meeting will be provided to the City Council and posted online in advance of the meeting. Comments received after the deadline will be provided to the City Council and will be posted after the meeting.

Agenda Packet Page 1 of 324
Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

6:00 PM ROLL CALL – CONVENE REGULAR CITY COUNCIL MEETING

1. PLEDGE OF ALLEGIANCE TO THE FLAG OR OBSERVATION OF A

MOMENT OF SILENCE

2. TELECONFERENCE AND PUBLIC COMMENT INSTRUCTIONS

3. COUNCIL/STAFF COMMUNICATIONS
Reports of closed session, commission appointments and informational reports on matters of general interest which are announced by the City Council and staff.

4. ORAL COMMUNICATIONS FROM THE PUBLIC
Remarks are typically limited to 3 minutes per person. The Mayor may reduce the time limit per speaker depending upon the number of speakers and may limit the total time for public comment to facilitate the completion of business on the agenda. Comments regarding non-agenda, presentation and consent calendar items will be heard first.

Comments related to items appearing on the Public Hearing or Policy Matter portions of the Agenda will be heard prior to the City Council taking action on each item.

5. PRESENTATIONS
A. Auditor Presentation on FY 2024-25 Audit and Financial Statements Action Proposed: Receive and file a presentation from the City's auditor, and transmittal of the Fiscal Year 2024-2025 Annual Comprehensive Financial Report.

Contact: Crystal Reams, Finance Director, Finance Department; Sheldon Chavan CPA, Managing Partner, Chavan and Associates, LLC

6. ADOPTION OF THE CONSENT CALENDAR
All items on the consent calendar shall be acted upon in one motion, unless a member of the City Council or staff request separate consideration.

A. Black History Month Proclamation
Action Proposed: Pass a motion to approve a proclamation declaring February as Black History Month in the City of El Cerrito.

Contact: Shannon Bassi, Human Resources Manager, City
Management
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Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

B. Lunar New Year Proclamation
Action Proposed: Pass a motion to approve a proclamation recognizing the cultural and historical significance of Lunar New Year in the City of El Cerrito.

Contact: Shannon Bassi, Senior Human Resources Manager, City Management
C. Proclamation Recognizing Mario Ubalde
Action Proposed: Pass a motion to approve a proclamation recognizing Mario Ubalde for his outstanding performance in the 2025 Olympic Hopes International Youth Diving Championship in Budapest, Hungary.

Contact: Holly M. Charléty, City Clerk, City Management D. Proclamation Honoring Firefighter/Paramedic James Van Wyck Firefighter of the Year
Action Proposed: Approve a proclamation honoring
Firefighter/Paramedic James Van Wyck as Firefighter of the Year in the City of El Cerrito.

Contact: Eric Saylors, Fire Chief, Fire Department
E. 2025 Meeting Report for Boards, Commissions, and Committees Action Proposed: Receive and file a report of meetings held by City Board, Commission and Committees for the Calendar Year of 2025.

Contact: Holly M. Charléty, City Clerk, City Management F. FY 2025-26 Second Quarter Cash and Investment Report Action Proposed: Receive and file the City's Second Quarter Cash and Investment Report for the period October 1, 2025 to December 31, 2025.

Contact: Crystal Reams, Finance Director/City Treasurer, Finance Department
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Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

G. A Resolution Expressing Solidarity with the City of Minneapolis Action Proposed: At the request of Councilmember Ktsanes, adopt a Resolution expressing solidarity with the City of Minneapolis, Minnesota, and its residents in the aftermath of recent United State Immigration and Customs Enforcement related shootings, and affirming the City of El Cerrito's commitment to Human Rights, Public Safety, and Accountability.

Contact: Holly M. Charléty, City Clerk City Management
H. Amendment to Existing Agreement with Avila Project Management for On-Call Engineering and Project Management Services Action Proposed: Adopt a resolution authorizing the City Manager to execute an amendment to the existing agreement with Avila Project Management for on-call engineering and project management services, increasing the contract amount by $200,000, bringing the total not-toexceed amount to $450,000 in Fiscal Year 2025-26.

Contact: A’shanti Coleman, Management Assistant; Yvetteh Ortiz, Public Works Director/City Engineer, Public Works Department I. Amendment to Existing Professional Services Contract with TRB + Associates for On-Call Inspection, Plan Check, and Other Jurisdictional Services
Action Proposed: Adopt a resolution authorizing the City Manager to execute an amendment to the professional services contract with TRB + Associates increasing their contract authority from $500,000 to $950,000 for fiscal year 2026 to provide inspection, plan check and other jurisdictional services.

Contact: Jennifer Bright, Management Assistant; Melanie Mintz, Community Development Director, Community Development Department

7. PUBLIC HEARINGS

8. POLICY MATTERS
A. 2026 State Legislative Platform
Action Proposed: Adopt the proposed 2026 State Legislative Platform for the City of El Cerrito.

Agenda Packet Page 4 of 324
Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

Contact: Alexandra Orologas, Assistant City Manager, City Management; Dane Hutchings, Founder & CEO, California Public Policy Group
B. FY 2025-26 Second Quarter General Fund Budget Update through December 31, 2025
Action Proposed: Receive and file an update on City General Fund revenues and expenses for FY 2025-26 through December 31, 2025.

Contact: Claire Coleman, Budget and Financial Services Manager; Crystal Reams, Finance Director/City Treasurer, Finance Department C. Award of Construction Contract for the Swim Center Accessible Parking Improvements Project, City Project No. C3050.10 Action Proposed: Adopt a resolution awarding the contract for the Swim Center Accessible Parking Improvements Project, City Project No.

C3050.10 (Project) to GradeTech Inc. as the lowest responsive and responsible bidder; authorizing the City Manager to execute a contract in the amount of $662,090.28 and to approve potential change orders in an amount not to exceed $100,000, for the construction of the Project; and appropriating a one-time allocation from the General Fund in the amount of $762,100 in Fiscal Year 2025-26.

Contact: Roland Lambert, Associate Engineer, Yvetteh Ortiz, Public Works Director/City Engineer, Public Works Department; Christopher Jones, Recreation Director, Recreation Department
D. City Council Policy Subcommittee Report and Recommendations Action Proposed: Conduct a study session on proposed revisions to the City Council Policies and Rules of Order and Procedure and 2) Adopt a Resolution to approve the proposed revisions as presented or provide staff direction to return with additional modifications and 3) consider forming an Ad-Hoc Subommittee to Discuss Advisory Body Policies and implications of SB 707.

Contact: Mayor Wysinger and Councilmember Motoyama, City Council Policy Ad-Hoc Subommittee; Holly M. Charléty, City Clerk, City Management
Agenda Packet Page 5 of 324
Mayor Councilmembers
Gabe Quinto William Ktsanes
Mayor Pro Tem Lisa Motoyama
Rebecca Saltzman AGENDA Carolyn Wysinger

9. CITY COUNCIL LOCAL & REGIONAL LIAISON ASSIGNMENTS
Mayor and City Council communications regarding local and regional liaison assignments, committee reports, and any required reporting under AB 1234 for meetings (as defined by the Brown Act) attended at the public's expense.

10. ADJOURN REGULAR CITY COUNCIL MEETING
The next regularly scheduled City Council meeting is Tuesday, February 17, 2026 at 6:00 p.m. and will be held at Hana Gardens (10870 San Pablo Ave) The City of El Cerrito serves our diverse community by providing exceptional services that create a safe and resilient future for all.

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City of El
Cerrito
JUNE 30, 2025

AUDIT RESULTS
Agenda Item No. 5.A.

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Audit Standards
and Auditor
Responsibilities
GAAS
GAGAS
• Express an Opinion on the Financial
Statements
Objective
• Reasonable Assurance
• Risk Based
• Materiality
• Internal Controls
Responsibilities
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Annual
Comprehensive
Financial Report
(ACFR)
Section
Section 1 •Introductory •Letter of Transmittal •Elected Officials •Organizational Chart Section
Section 2 •Financial •Auditor’s Opinion •MD&A •Financial Statements and Notes
•Required
Supplementary
Information
•Supplementary
Information
Section
Section 3 •Statistical •Fiscal •Historical •Demographic Information
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Statement of Net Position
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Governmental Activities - Revenues
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Governmental Expenses by Function
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Business-Type Activities
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Audit
Results
No Exceptions in Audit
Opinions
No Material Weaknesses
No Significant
Deficiencies
No Disagreements with
Management
No Significant Passed on
Adjustments
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El Cerrito, California

Annual Comprehensive Financial Report
as of Fiscal Year Ended June 30, 2025
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El Cerrito, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
City Council
Carolyn Wysinger. . . . . . . . . . . . . . . . . . . . . . . . Mayor Gabe Quinto. . . . . . . . . . . . . . . . . . . . . Mayor Pro Tem William Ktsanes . . . . . . . . . . . . . . . . .Council Member Lisa Motoyama. . . . . . . . . . . . . . . . . Council Member Rebecca Saltzman . . . . . . . . . . . . . . Council Member Presented by:

Karen Pinkos, City Manager
Crystal Reams, Finance Director/City
Treasurer
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INTRODUCTORY SECTION
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CITY OF EL CERRITO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025

TABLE OF CONTENTS

INTRODUCTORY SECTION
Transmittal Letter .......................................................................................................................... 1 List of Elected and Appointed Officials ........................................................................................... 8 Organizational Chart ...................................................................................................................... 9 GFOA Certificate ......................................................................................................................... 10

FINANCIAL SECTION
Independent Auditor’s Report....................................................................................................... 13 Management’s Discussion and Analysis (Required Supplementary Information) ............................ 19 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................. 37 Statement of Activities...................................................................................................... 38 Fund Financial Statements
Governmental Funds:

Balance Sheet.............................................................................................................. 40 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position .................................. 41 Statement of Revenues, Expenditures and Changes in Fund Balances............................ 42 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ........................................................................................... 43 Proprietary Funds:

Statement of Net Position ............................................................................................ 46 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 47 Statement of Cash Flows.............................................................................................. 48 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ............................................................................. 50 Statement of Changes in Fiduciary Net Position ........................................................... 51 Notes to the Basic Financial Statements .................................................................................. 54

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

General Fund .................................................................................................................... 91 Low/Mod Income Housing Asset Special Revenue Fund.................................................... 92 Schedule of Pension Contributions................................................................................................ 93 Schedule of Proportionate Share of Net Pension Liability.............................................................. 94 Agenda Packet Page 22 of 324

CITY OF EL CERRITO

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025

TABLE OF CONTENTS

SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

Street Improvement Fund................................................................................................................................. 96 Capital Improvement Fund .............................................................................................................................. 97 Nonmajor Governmental Funds:

Combining Balance Sheet............................................................................................................. 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........................... 105 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):

Gas Tax Fund ............................................................................................................................................. 109 National Pollution Discharge Elimination System Fund............................................................................ 110 Landscape and Lighting Assessment Fund................................................................................................. 111 Measure A Parcel Tax Fund ....................................................................................................................... 112 Measure H Parcel Tax Parks and Recreation Facilities Fund..................................................................... 113 Asset Seizure Fund ..................................................................................................................................... 114 Vehicle Abatement Fund............................................................................................................................ 115 Park in Lieu Fund ........................................................................................................................................ 116 SB1 - Road Repair and Accountability Fund ............................................................................................. 117 Public Art Fund .......................................................................................................................................... 118 Measure J Paratransit Fund......................................................................................................................... 119 Municipal Services Corporation Special Revenue Fund ............................................................................ 120 City Housing Fund...................................................................................................................................... 121 Federal, State and Local Grants Fund......................................................................................................... 122 Public Financing Authority Fund ............................................................................................................... 123 Measure J Fund........................................................................................................................................... 124 Storm Drain Fund....................................................................................................................................... 125

STATISTICAL SECTION
Net Position by Component.......................................................................................................................................... 131 Changes in Net Position................................................................................................................................................ 132 Fund Balances of Governmental Funds........................................................................................................................ 134 Changes in Fund Balances of Governmental Funds..................................................................................................... 135 Net Assessed Value of Property ................................................................................................................................... 136 Property Tax Levies and Collections............................................................................................................................ 137 Direct and Overlapping Property Tax Rates................................................................................................................. 138 Principal Property Taxpayers ....................................................................................................................................... 139 Revenue Bond Coverage – Lease Revenue Bonds....................................................................................................... 140 Revenue Bond Coverage – Sales Tax Revenue Bonds................................................................................................. 141 Bonded Debt Pledged Revenue Coverage – Tax Allocation Bonds............................................................................. 142 Ratios of Outstanding Debt by Type ............................................................................................................................ 143 Composition of Legal Bonded Debt Margin ................................................................................................................ 144 Direct and Overlapping Governmental Activities Debt................................................................................................ 145 Demographic and Economic Statistics......................................................................................................................... 146 Principal Employers ..................................................................................................................................................... 147 Government Employees by Function ........................................................................................................................... 148 Operating Indicators by Function/Program .................................................................................................................. 149 Agenda Packet Page 23 of 324

TRANSMITTAL LETTER
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December 10, 2025
Honorable Mayor, Council Members and Residents of El Cerrito:

We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of El Cerrito for the fiscal year ended June 30, 2025. This report has been prepared in accordance with generally accepted accounting principles (GAAP) as set forth in the pronouncements of the Governmental Accounting Standards Board (GASB). We are also pleased to report that the City has received an unmodified opinion from the independent auditor, indicating the financial statements are presented, in all material respects, in accordance with the applicable financial reporting framework.

The City's financial policies require an external independent audit be performed annually, and that the auditor's opinions be included in the ACFR. Further, it states that the results be submitted to the City Council.

Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All material statements and disclosures necessary for the reader to obtain a thorough understanding of the City's financial activities have been included.

City management is responsible for establishing and maintaining fiscal internal controls designed to safeguard the assets of the government from loss, theft, or misuse, and to ensure that accounting data is accurately compiled to allow for the preparation of financialstatements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of controls should not exceed the benefits likely to be derived, and the valuation of costs and benefits require estimates and judgments by management.

The City's financial statements have been audited by Chavan & Associates, LLC. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based on the audit, the independent auditor concluded that there was a reasonable basis for rendering an unmodified opinion and that the City of El Cerrito's financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP.

The independent auditor's report is presented as the Financial and Supplementary Sections of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management Discussion and Analysis.

This Letter of Transmittal is designed to complement the Management Discussion and Analysis (MD&A) and should be read in conjunction.

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CITY PROFILE
The City of El Cerrito was incorporated in 1917 under the general laws of the State of California and became a charter city in 2018. The City is located in Contra Costa County in the San Francisco Bay Area. The City encompasses approximately 3.9 square miles and the current population1 is 25,862. The City has a variety of green spaces for public enjoyment including 32 acres of developed park grounds, over 100 acres of open space in the Hillside Natural Area, and a 2.7 mile multi-use trail known as the Ohlone Greenway. El Cerrito is a community of highly educated residents, in part due to the proximity to UC Berkeley and the Bay Area high-tech economy. It is known for its temperate climate and breathtaking views of the San Francisco Bay and the Golden Gate Bridge from the hillside areas.

REPORTING ENTITY
The City operates under the Council-Manager form of government. The City Council is comprised of five members elected at-large and serving four-year terms. The terms are staggered in alternating even years. There are no term limits. Annually, the City Council votes to appoint a Mayor and a Mayor Pro Tem from among its members.2
City Council determines the policies of the city government, appoints the City Manager and City Attorney, and has general responsibility for effective administrative actions through the City Manager.

The Council is responsible for, among other things, passing ordinances, adopting the budget, and appointing advisory boards, committees, and commissions. The City Council members also serve as the separate Board of Directors for City of El Cerrito Employees’ Pension Trust Plan, the Municipal Services Corporation and the El Cerrito Public Financing Authority. The City serves as the reporting body for these entities and is financially accountable, as City staff have operational responsibility for the activities of each entity. These entities are included in the City’s financial statements as part of the reporting entity. The City Council previously served as the Board of Directors for the City of El Cerrito Employees’ Pension Trust Plan, which was dissolved in March 2025.

In addition, City Council appoints residents to serve on City Boards, Commissions, and Committees (advisory bodies). Boards and Commissions are directly responsible to the City Council and fill advisory and/or quasi-judicial roles. Commissions are composed of lay residents while members for Boards are selected for their special expertise. Committees sponsored by the City are intended to be working groups and do not fill quasi-judicial roles. The advisory bodies include:

Arts & Culture Commission Environmental Quality Committee Citizens Street Oversight Committee Financial Advisory Board Civil Service Commission Human Relations Commission
Committee on Aging Park & Recreation Commission
Community Safety Committee Planning Commission
Design Review Board Urban Forest Committee
Economic Development Committee

CITY SERVICES
The City is a full-service municipality and provides a full range of services, including police and fire protection, building permits and inspections, parks and recreation facilities and services, planning and environmental services, construction and maintenance of streets, public buildings, and infrastructure, and operation of a state-of-the-art Recycling Center.
1 State of California, Department of Finance, E-1 Population Estimates for Cities. Sacramento, California, May 2025. 2 City of El Cerrito Candidate Instructional Guide: Running for Elective Office, November 2024.

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ECONOMIC CONDITIONS AND OUTLOOK
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City operates.

In Fiscal Year (FY) 2024-25, City management continued its focus on fiscal sustainability and continued work on the 2024-2029 Strategic Plan. The City’s goal areas, as determined by the City Council, are High Performing Organization, Community Safety, Livability and Belonging, Infrastructure and Amenities, and Environmental Sustainability.

Local Economy
Property Taxes and Assessments continue to remain steady; the City saw a slight increase over the previous fiscal year of $0.4 million ($18.9 million in FY25 vs. $18.5 million in FY24) an increase of

2.2%. The increase reflects two main factors: the annual 2% increase (or CPI, whichever is lower) under Proposition 13, and reassessments resulting from changes in property ownership.

The City received $12.1 million in Sales and Use Tax revenue, which is $0.43 million more than the previous fiscal year.

City staff continue to monitor the housing market and the impact of elevated interest rates on home sales.

After reaching a historic low of about 2.65% in January 2021, the average 30-year fixed mortgage rate had climbed to over 7% in 2023 and was around 6.8% in mid-2025. The sustained higher borrowing costs have directly affected the inventory of available properties and the number of home sales, thereby influencing the amount of the City’s Real Property Transfer Tax revenue and the overall growth in the City’s property tax base year over year.

EXECUTIVE FINANCIAL OVERVIEW
This top-level overview is presented as a supplement to the more detailed and comprehensive analysis presented in the MD&A. As such, it serves to highlight key financial performance indicators for our major funds. We encourage readers to review the MD&A for a further analysis of the City's financial condition.

General Fund
The General Fund is the primary operating fund of the City of El Cerrito. General Fund property tax increased slightly. Most other revenue categories increased from the prior year, including sales taxes, utility taxes, and property transfer taxes. El Cerrito’s diversified and resilient revenue sources outperformed budgeted estimates by $2.4 million. The total General Fund balance is $24.3 million and represents approximately 47% of total budgeted General Fund expenditures. Transfers-in totaled $.004 million from Integrated Waste Management. Offsetting this fund balance increase, transfers-out comprised of subsidies to other funds to support operations, totaling $1.36 million.

Total General Fund expenditures ended the year at $51.7 million, $0.83 million below budget. This reflects an increase of $3.1 million over FY 2023-24. The increase was largely due to increases in personnel costs and increased expenditures for repair and maintenance services as well as asset replacement.

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MAJOR INITIATIVES AND ACCOMPLISHMENTS
• Ended Fiscal Year 2024-25 with a surplus of $1.36 million and a General Fund balance of $24.3 million, equivalent to more than 40% of expenditures. • Amended the City’s Comprehensive Financial Policies to increase the City’s reserve goals to 30%, including a General Fund operating reserve of 17% and an Emergency and Disaster Recovery Fund of 13%.
• Received an Operating Budget Excellence Award from the California Society of Municipal Finance Officers for the City’s Fiscal Year 2024-25 and 2025-26 Biennial Budget. • Received a Certificate of Achievement for Excellence in Financial Reporting and a Distinguished Budget Presentation Award from the Government Finance Officers Association.
• The City’s Measure G, to renew an existing 1% sales tax until ended by voters, was approved with more than 81% support.
• The California State Auditor released a report recognizing the City’s efforts to improve its finances and removed the City’s designation as “High-Risk” under the Auditor’s High Risk Local Government Agency Audit Program.
• Expanded Public Records Portal to provide increased transparency and greater access to a variety of public records.
• Developed a partnership with neighboring agencies to provide enhanced supportive services to people experiencing homelessness.
• Adopted a new Climate Action & Adaption Plan and set targets for net zero greenhouse gas emissions by 2045.
• Approved of a new Hillside Natural Area Fire Resilience and Forest Conservation Plan to guide the City’s fire fuel reduction, native forest conservation, and maintenance activities in the City’s more than 100-acre open space area.
• Developed an ordinance that designates Fire Hazard Severity Zones and establishes defensible space and home hardening inspection procedures for properties within high-risk areas.
• Received and put a new Type 1 Fire Engine into service. • Developed a draft Safety Element Update that identifies both natural and human-made hazards that pose risks to the community and outlines strategies to mitigate those risks. • Inspected over 8,000 parcels to improve defensible space during a wildfire. • Continued a Red Flag Parking Pilot Program where on-street parking is prohibited on one side of select streets to allow access for public and emergency vehicles in a fire-related emergency.
• Hosted a delegation from the National Association of Towns and Villages of Japan to discuss wildfire safety and emergency preparedness.
• Experienced a sharp drop in stolen vehicles alongside further implementation of license plate reading cameras throughout the community.
• Continued work on development of affordable housing and the BART El Cerrito Plaza Transit-Oriented Development (TOD) project.
• Secured a $39 million Affordable Housing and Sustainable Communities grant to support the development of 70-units of affordable housing, infrastructure and sustainable transportation improvements as part of the El Cerrito Plaza TOD.
• Continued evaluating the best way to provide library services in El Cerrito. • Developed design and completed community outreach efforts around the Richmond Street Complete Streets Project to add new bicycle and pedestrian improvements to a main thoroughfare in the community.

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• Continued construction of the El Cerrito del Norte Transit-Oriented Development Complete Streets Improvement Project, while also completing construction of the Arlington Park Improvements project, Hillside Natural Area Trails Signage project, and Arlington Park Tennis Center.
• Implemented new streamlined automated solar permitting software. • Received award from the Food Bank of Contra Costa and Solano Counties for collecting the most food through year-round barrels at a single location at the City of El Cerrito’s Recycling + Environmental Resource Center.
• Expanded Senior Programming with senior social times, expanded lunch offerings, and a senior resource fair.
• Reinvigorated Arts & Culture programming, bringing back October Arts Month and initiating the City's first pavement art pilot project.
• Hosted events for Earth Day, National Night Out, Pride Month, United Against Hate Week, Tri-City Safety Day, Citywide Garage Sales, Bike to Work Day, Arbor Week, Makers’ Faires, Play Like a Girl+, and more.

FINANCIAL INFORMATION
Budgeting Controls
The City of El Cerrito operates on a biennial budget schedule and maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Propriety Funds are included in the biennial appropriated budget. The level of budgetary control (level at which expenditures cannot legally exceed the appropriate amount) is at the fund level.

City Departments use the goals outlined in the Strategic Plan, as well as feedback gained from the community, to inform the development of their departmental budgets for the next fiscal year. In order to best determine the resources to allocate to the goals and strategies in the Strategic Plan, the departments review information tailored toward aligning programs and services to the Strategic Plan goals.

Each department evaluated their programs and services and analyzed related data to determine a baseline amount of resources to allocate to expenses that meet the goals of the Strategic Plan. The departments considered several data sets, including personnel necessary to provide the program or service, additional costs (i.e., consultants, contractors, supplies and equipment and other purchased services), and whether the program or service is required by law or City policy. Departments were realistic about the objectives that could be achieved in the fiscal year and set priorities to allocate resources accordingly.

The Finance Department, in coordination with the applicable operating departments, provides the City Manager with proposed revenue projections. These revenue estimates are reviewed with the department budget requests to determine available funding levels for the fiscal year. Supplemental budget requests (new personnel, services or equipment) are subject to City Manager review and approval for inclusion in the proposed operating budget. This process applies to all governmental and enterprise funds. The City Manager and Finance Director meet with the departments to review all operating expenditures and budget change requests. After final review and approval by the City Manager, the proposed budget document is presented to the City Council in May. The budget is adopted by resolution prior to June 30.

Only the City Council has the authority to create or modify total appropriations of any fund subject to only the appropriations limits established by State law. The City Council approves various supplemental Agenda Packet Page 30 of 324
appropriations during the year as necessary to meet the City’s needs. The statements and schedules included in the financial section of this report indicate that the City continued to meet its responsibility for sound financial management.

Accounting System
The City’s accounting and budgeting records for general government operations are recorded on a modified accrual basis, with revenues being recognized when available and measurable, and expenditures being recorded when the service or goods are received, or liabilities are incurred.

Accounting and budgeting for the City’s proprietary funds are maintained on an accrual basis.

Non-exchange transactions in which the City gives or receives value without directly receiving or giving equal value in exchange include taxes, grants, entitlements, and donations. On an accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been met.

The City maintains an internal control designed to provide reasonable assurance that the City’s assets are protected from loss, theft, or misuse. Also, internal controls ensure adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Financial Policies
In November 2024, the City Council approved amendments to the City Comprehensive Financial Policy, dated November 19, 2024. The financial policies are designed to promote sound financial management and ensure that the City's fiscal integrity remains intact as staff and Council Members change. The City Comprehensive Financial Policy is reviewed by the Financial Advisory Board and recommended amendments are advanced through the City Manager and Finance Director to City Council for adoption.

Additionally, the City Comprehensive Financial Policy, in accordance with GASB pronouncements, includes a General Fund Reserve policy, Emergency and Disaster Recovery Fund policy, Long-Term Financial Planning and Budget policies, Debt policies and other operational policies to serve as guidelines for operational and strategic decision making related to financial matters.

OTHER INFORMATION
Independent Audit
The City of El Cerrito selects an independent certified public accounting firm to perform a required annual audit of the City’s financial records and transactions. The annual audit is required through covenants related to the City’s bonded indebtedness. The City has a contract with Chavan & Associates, LLC., an independent auditor, to perform the audit and prepare the financial section of this report.

Acknowledgments
The preparation of this Annual Comprehensive Financial Report was conducted through the efforts and teamwork of the dedicated Finance staff. Appreciation and acknowledgement are also extended to City Department representatives for their support and collaboration throughout the duration of the audit. In addition, we extend a special thank you to Chavan & Associates, LLP for their professionalism and Agenda Packet Page 31 of 324
diligence in assisting in the preparation of this financial report.

Karen Pinkos, City Manager Crystal Reams, Finance Director & City Treasurer
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CITY OF EL CERRITO

ELECTED OFFICIALS
AND

ADMINISTRATIVE PERSONNEL
as of June 30, 2025

ELECTED OFFICIALS - CITY COUNCIL
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Carolyn Wysinger
Gabe Qunito
William Ktsanes
Lisa Motoyama
Rebecca Saltzman

ADMINISTRATIVE PERSONNAL - CITY STAFF
City Manager
Assistant City Manager
Chief of Police
Fire Chief
Community Development Director
Finance Director/City Treasurer
Public Works Director/City Engineer
Recreation Director
City Clerk
Karen Pinkos
Alexandra Orologas
Paul Keith
Eric Saylors
Melanie Mintz
Crystal Reams
Yvetteh Ortiz
Chris Jones
Holly Charlety

CITY ATTORNEY
Sky Woodruff

INDEPENDENT AUDITORS
Chavan & Associates, LLP Certified Public Accountants
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ORGANIZATIONAL CHART
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Cerrito
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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FINANCIAL SECTION
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16450 Monterey Road, Suite #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of El Cerrito
El Cerrito, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of El Cerrito (the “City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of El Cerrito, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher Agenda Packet Page 38 of 324

16450 Monterey Road, Suite #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements, schedules, and other information listed in the supplementary information section of the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain Agenda Packet Page 39 of 324

16450 Monterey Road, Suite #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report.

The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

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

Chavan & Associates, LLP
Certified Public Accountants
December 21, 2025
Morgan Hill, California
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MANAGEMENT’S DISCUSSION

AND ANALYSIS
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City of El Cerrito Management’s Discussion and Analysis

INTRODUCTION
As management of the City of El Cerrito, we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of El Cerrito, for the fiscal year that ended on June 30, 2025. We encourage readers to consider the information presented here, in conjunction with additional information that we have furnished in our letter of transmittal. This information can be found on pages 1-7 of this report. The required components of the report are listed below.

Required Components of the Annual Financial Report
FISCAL YEAR 2024/25 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
 The assets and deferred outflows of resources for the City of El Cerrito exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $55.60 million (net position). Of the net position, $64.21 million was classified as net investment in capital assets; $25.61 million recorded as restricted funds; and $34.22 million categorized as a deficit unrestricted net position (negative net position). The negative unrestricted net position is largely due to GASB 68 – Accounting and Financial Reporting for Pensions. This pronouncement requires local governments to record pension liabilities and related deferrals in the government-wide financial statements.  The City’s net position increased by $4.42 million. This included a $3.52 million increase in the net position of Governmental Activities and a $0.89 million increase in the net position of Business-Type Activities.
 City revenues increased by $5.39 million, or 8%, when compared to the prior year. The Fiscal Year 24/25 included $6.80 million in capital grants and $3.37 million in operating grants.

Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
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City of El Cerrito Management’s Discussion and Analysis  Deferred outflows of resources decreased by $7.18 million, while deferred inflows of resources decreased by $1.06 million. This was primarily related to pension liability adjustments identified in the City’s actuarial report, which include differences between expected and actual earnings; expected and actual experiences; and changes in proportional allocations. The City’s pension liability in accordance with GASB 68 as of June 30, 2025 was $83.13 million as compared to $84.24 million in the prior year.
 The City’s long-term debt decreased by $1.22 million as a result of scheduled debt service payments made during the year.
 The City’s net capital assets increased by $5.58 million, primarily from a $4.12 million increase to construction in progress, a $1.83 million increase to buildings and improvements, a $2.30 million increase to machinery and equipment, and a $1.13 million increase to infrastructure, offset by an increase of $3.80 million to accumulated depreciation and amortization.

Fund Highlights
 At the close of Fiscal Year 24/25 the City of El Cerrito’s Governmental Fundsreported a combined fund balance of $43.97 million, which is an increase of $2.29 million from the prior year. Approximately 45%, or $19.84, million was classified as unassigned fund balance and was available for spending at the government’s discretion.
 At the end of the current fiscal year, the General Fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $21.11 million, or 41% of total General Fund expenditures, prior to transfers.
 The fund balance in the General Fund increased by $1.36 million at the close of the fiscal year. This included an excess of operating revenues over expenditures of $2.40 million, minus $1.04 million in net transfers and other financing sources.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of El Cerrito’s financial statements. The City of El Cerrito’s basic financial statements are comprised of (1) Government-Wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City of El Cerrito’s finances, in a manner similar to a private-sector business. Government-Wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Government-Wide Financial Statements consist of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position presents financial information on all of the City of El Cerrito’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of El Agenda Packet Page 45 of 324
City of El Cerrito Management’s Discussion and Analysis Cerrito is improving or declining.

The Statement of Activities presents information showing how the City of El Cerrito’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. This is consistent with a full accrual concept, which may result in the reporting of revenues and expenses in the current fiscal year, with cash flows occurring in future fiscal periods (e.g. uncollected revenues; and earned but not used vacation leave).

Both of the Government-Wide Financial Statements distinguish functions of the City of El Cerrito that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). An overview of the City’s functions associated with each classification is listed below.

Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public works, recreation, community development, and public safety. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.

Business-Type Activities – This City’s enterprise activities include integrated waste management. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.

The Government-Wide Financial Statements can be found on pages 37-38 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories:

Governmental Funds, Proprietary Funds, and Fiduciary Funds.

Governmental Funds
Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the City's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activitiesin the government-wide financial statements. By doing so, readers may Agenda Packet Page 46 of 324
City of El Cerrito Management’s Discussion and Analysis better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and other major funds. Data from the other governmental funds are combined into a single aggregated presentation.

Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City of El Cerrito adopts an annual budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 40-43 of this report.

Proprietary Funds
The City of El Cerrito has one Enterprise Fund which is a proprietary fund: Integrated Waste Management.

Enterprise funds provide the same type of information as business-type activities in the government-wide statements. Internal service funds are an accounting mechanism used to accumulate and allocate costs internally among the City of El Cerrito’s various functions. The City uses one internal service fund to account for the management of its vehicle and equipment replacement. Because these internal services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the Government-Wide Financial Statements.

Proprietary funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for the waste management operations, which is considered major fund for the City of El Cerrito. The basic proprietary fund financial statements can be found on pages 46-48 of this report.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the Government-Wide Financial Statements because the resources of these funds are not available to support the City of El Cerrito’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. The City had two fiduciary funds during Fiscal Year, the Pension Trust Fund and the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund.

NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The notes can be found immediately following the Fund Financial Statements.

OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City of El Cerrito’s funding progress for its employee pension obligations. The required supplementary information can be found on pages 91-94 of this report.

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City of El Cerrito Management’s Discussion and Analysis The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 101-125 of this report.

A statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. This information can be found on pages 131-149 of this document.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City of El Cerrito, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $51.31 million at the close of Fiscal Year 24/25. This represents an increase of $3.52 million over the prior year.

The following table summarizes the City’s ending net position:

A significant portion, or $64.21 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), less accumulated depreciation/amortization and any outstanding debt that was used to acquire or construct those assets.

Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.

The $25.61 million amount classified as Restricted Net Position represents resources that are subject to external restrictions on how they may be used. These funds are restricted for governmental activities.

The remaining deficit balance of $34.22million is classified as unrestricted. This negative unrestricted balance is largely due to GASB 68 – Accounting and Financial Reporting for Pensions. The City participates in the CalPERS Miscellaneous and Safety pension plans. This pronouncement requires that local governments report 2025 2024 2025 2024 2025 2024
Assets
Current and other assets $ 58,898,381 $ 53,902,573 $ 4,273,463 $ 3,298,270 $ 63,171,844 $ 57,200,843 Capital assets 75,193,387 69,435,665 3,167,464 3,346,955 78,360,851 72,782,620 Total Assets $ 134,091,768 $ 123,338,238 $ 7,440,927 $ 6,645,225 $ 141,532,695 $ 129,983,463 Deferred Outflows of Resources $ 25,561,183 $ 32,454,029 $ 1,177,273 $ 1,463,287 $ 26,738,456 $ 33,917,316 Liabilities
Current and other liabilities $ 12,482,403 $ 9,889,542 $ 480,945 $ 615,171 $ 12,963,348 $ 10,504,713 Noncurrent liabilities 93,342,212 94,511,038 3,665,992 3,942,391 97,008,204 98,453,429 Total Liabilities $ 105,824,615 $ 104,400,580 $ 4,146,937 $ 4,557,562 $ 109,971,552 $ 108,958,142 Deferred Inflows of Resources $ 2,513,353 $ 3,599,218 $ 190,974 $ 163,347 $ 2,704,327 $ 3,762,565 Net Position
Net investment in capital assets $ 61,458,283 $ 56,361,576 $ 2,752,264 $ 3,937,059 $ 64,210,547 $ 60,298,635 Restricted 25,607,946 21,667,676 - - 25,607,946 21,667,676 Unrestricted (35,751,246) (30,236,783) 1,528,025 (549,456) (34,223,221) (30,786,239) Total Net Position $ 51,314,983 $ 47,792,469 $ 4,280,289 $ 3,387,603 $ 55,595,272 $ 51,180,072 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
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City of El Cerrito Management’s Discussion and Analysis a proportional share of their pension plan’s net pension liabilities on financial statements. In Fiscal Year 24/25, the City’s proportionate share of the CalPERS pension liability was $83.13 million.

At the end of the current fiscal year, the City of El Cerrito reported a positive balance for the government as a whole.

Governmental and Business-Type Activities
As shown in the Statement of Changes in Net Position schedule, the net position for Governmental Activities increased by $3.52 million in FY 24/25 mostly because of increases to operating and capital grants and contributions. During Fiscal Year 24/25, the City recognized an increase to pension expense of $4.72 million from actuarial related adjustments. Total pension expense was $15.26 million, an increase of $3.85 million. The increase in charges for services can be attributed to the reclassification and correction of taxes and other revenues to charges for services.

The net position for business-type activities increased by $0.89 million largely due to the change in application of GASB 68 when the City reallocated a portion of its net pension liabilities. An analysis of the changes in revenues and expenses by type of significant events follows:

Increase Increase
Functions/Programs 2025 2024 (Decrease) 2025 2024 (Decrease) Program Revenues
Charges for services $ 15,240,905 $ 13,769,470 $ 1,471,435 $ 4,443,095 $ 4,182,443 $ 260,652 Operating grants and contributions 3,368,275 1,550,711 1,817,564 30,559 33,907 (3,348) Capital grants and contributions 6,796,593 4,841,678 1,954,915 - - - Total Program Revenues 25,405,773 20,161,859 5,243,914 4,473,654 4,216,350 257,304 General Revenues
Taxes 41,327,666 40,984,093 343,573 - - -
Other revenues 2,404,254 2,920,338 (516,084) 180,261 116,999 63,262 Total General Revenues 43,731,920 43,904,431 (172,511) 180,261 116,999 63,262 Expenses
General government 8,947,901 8,271,822 676,079 - - -
Public works 9,702,125 9,122,950 579,175 - - -
Recreation 7,682,753 6,999,666 683,087 - - -
Community development 4,472,171 4,530,222 (58,051) - - - Public safety 34,272,713 29,383,735 4,888,978 - - -
Interest on long-term debt 541,187 166,298 374,889 - - - Intergrated waste management - - - 3,757,558 3,412,017 345,541 Total Expenses 65,618,850 58,474,693 7,144,157 3,757,558 3,412,017 345,541 Transfers 3,671 3,671 - (3,671) (3,671) -
Increase / (Decrease) in Net Position 3,522,514 5,595,268 (2,072,754) 892,686 917,661 (24,975) Prior Period Adjustments - 2,312,154 (2,312,154) - (2,157,401) 2,157,401 Net Position, Beginning of Year 47,792,469 39,885,047 7,907,422 3,387,603 4,627,343 (1,239,740) Net Position, End of Year $ 51,314,983 $ 47,792,469 $ 3,522,514 $ 4,280,289 $ 3,387,603 $ 892,686 Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities
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City of El Cerrito Management’s Discussion and Analysis Governmental Activities
Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 24/25:

Significant changes in governmental revenues consisted of the following:
 Taxes increased by $0.34 million, with notable net changes in the following categories:
o Property taxes increased by $0.39 or 2.1%, which reflects the continuing strength in property values.
o Other taxes decreased by $0.81 million or 99% due to the reclassification of Cannabis revenue.

Cannabis revenue is not a tax and should be classified with charges for services. o Sales and use taxes increased by $0.69 million or 6%, reflecting an above average increase in consumer spending.
o Utility user taxes increased by $0.19 million or 4.8% largely due to overall utility rate increases.  Charges for services increased by $1.47 million. Cannabis revenue was reclassified from taxes to charges for services, since this is not a tax, this increased charges for services by $0.47 million. There was also a reclassification of the City’s administrative fee for the Successor Agency, this was also classified as a tax, which it is not, this increased charges for services by $0.22 million. Various other increases were due to increased program activities for recreation, community development and public safety as services continue to increase to pre-pandemic levels.

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City of El Cerrito Management’s Discussion and Analysis  Capital grants and contributions increased by $1.95 million due to federal, state and local grants one of the largest projects for the City is the Del Norte Complete Streets project, funded by federal, state and local contributions.
 Operating grants and contributions increased by $1.82 million, the most notable increase was $0.84 million for increased reimbursements from California Office of Emergency Services (OES) for Public Safety.

Governmental Expenses
The Fiscal Year 24/25 expenses for Governmental Activities increased by $7.14 million as illustrated in the chart below:

Significant changes in governmental expenses consisted of the following:
 The largest contributing factor to the increase in governmental activities expenses is an adjustment to pension expense as required by GASB 68 of $4.7 million, which was $2.68 million more than the prior year’s pension adjustment.
 Interest expense decreased by $0.37 million due to obligations generally requiring less interest as debt matures and adjustments related to premiums.
 Public Safety Fire had increased personnel and other costs due to higher-than-normal California Office of Emergency Services (OES) reimbursed expenses. Total reimbursed expenses for fiscal year 2025 were $1.5 million compared to $0.7 million in fiscal year 2024. Increasing expenses by over $0.8 million.

Business-Type Activities
The City’s net position for business type activities increased by $0.89 million for the Integrated Waste Management enterprise fund. The increase can be attributed to rate increases.

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City of El Cerrito Management’s Discussion and Analysis The following chart is a summary of the changes in revenues and expenses for the City’s business-type activities from Fiscal Year 23/24 to 24/25:

Charges for services included fees of $4.32 million and recycling sales of $0.12. Expenses included personnel services, services, supplies and depreciation totaling $3.76 million. Total expenses increased by $0.35 million which was entirely personnel costs.

FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City of El Cerrito uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.

In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for particular purposes by the City of El Cerrito’s City Council.

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City of El Cerrito Management’s Discussion and Analysis A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is presented below:

The fund balance in the General Fund increased by $1.36 million. This included operating revenues exceeding operating expenses by $2.40 million. The operating difference can be attributed to better than anticipated tax revenues, licenses and permits, and charges for services along with decreased expenditures due to a variety of factors, including staff vacancies and the delivery or completion of items to be purchased or projects to be completed. Utility user taxes exceeded budget by $0.51 million or 14% due to utility agency rate increases. Real property transfer tax exceeded budget by $0.21 million or 7%, as housing markets slightly improved as a result of decreasing interest rates and steady home sales.

Franchise fees exceeded budget by $0.2 million or by 15%. Franchise fees are based on a percentage of revenue, and as agencies increase rates there is a proportional increase to the amount the City collects in franchise fees.

The fund balance in Low and Moderate Income Housing Asset Fund increased by $11,506 due to the timing of disbursements.

The fund balance in the Street Improvement Fund increased by $1.33 million mainly due to the timing of when active projects expend funds, and when work is performed.

The fund balance in the Capital Improvement Fund decreased by $1.38 million mainly from the ongoing work on capital improvement projects.

The fund balance in Nonmajor Funds increased by $967,797 mostly due to federal and state grants for housing predevelopment loans, on-going capital improvement programs and road maintenance and other special revenue fund programs.

Low/Mod Street Capital Nonamajor
General Income Housing Improvement Improvement Governmental Fund Asset Fund Fund Fund Funds Total
Total Revenues $ 54,133,832 $ 26,252 $ 2,425,551 $ 4,187,642 $ 6,880,971 $ 67,654,248 Total Expenditures 51,733,005 14,746 393,828 6,104,765 7,819,486 66,065,830 Revenues Over (Under) Expenditures 2,400,827 11,506 2,031,723 (1,917,123) (938,515) 1,588,418 Other financing sources 211,001 - - - 570,483 781,484
Transfers in 3,671 - - 540,000 1,399,829 1,943,500
Transfers out (1,258,329) - (702,500) - (64,000) (2,024,829) Net change in fund balances 1,357,170 11,506 1,329,223 (1,377,123) 967,797 2,288,573 Beginning of year 22,893,338 5,281,952 3,868,662 104,631 9,533,663 41,682,246 End of year $ 24,250,508 $ 5,293,458 $ 5,197,885 $ (1,272,492) $ 10,501,460 $ 43,970,819 Major Funds
Table 3 - Summary of Changes in Fund Balance - Governmental Funds Agenda Packet Page 53 of 324
City of El Cerrito Management’s Discussion and Analysis General Fund – Components of Fund Balance
In Fiscal Year 24/25, the General Fund’s total fund balance represented approximately 47% of total general fund expenditures. The following chart summarizes the ending fund balance in the General Fund over the last two fiscal years:

Other Governmental Fund - Components of Fund Balance
The following chart summarizes the ending fund balance of all other funds other than the General Fund over the last two fiscal years:

CAPITAL ASSETS
The City of El Cerrito’s investment in capital assets for its governmental and business-type activities as of June 30, 2025 amounts to $78.36 million (net of accumulated depreciation). The total increase in the City’s capital assets, net of depreciation, was $5.58 million or 7.7%. In Governmental Activities, the net increase in capital assets was $5.76 million, or 8.3%, while business-type Activities net capital assets decreased by $179,491 or 5.4%.

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City of El Cerrito Management’s Discussion and Analysis The following table summarizes the City’s capital assets at the end of the year:

Additional information on capital assets can be found in Note 5 in the notes to financial statements.

DEBT ADMINISTRATION
During the year, long-term debt from governmental activities decreased by $0.76 million and long-term debt attributable to business type activities decreased by $0.46 million, mostly from scheduled debt service payments.

The following table summarizes the City’s debt at the end of the year:

Additional information on debt can be found in Note 6 in the notes to financial statements.

GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the year ended.

Over the course of the year, the City may revise the expenditure budgets to reflect the changes in the various programs and unanticipated activities, but usually do not change budget assumptions in revenues other than for one-time events. For example, when the City is awards a grant, it appropriates the revenues and expenditures necessary to spend those funds but does not necessarily adjust upward the property 2025 2024 2025 2024 2025 2024 % Change
Land $ 6,792,165 $ 6,792,165 $ - $ - $ 6,792,165 $ 6,792,165 0.00% Construction in progress 10,366,013 6,249,008 - - 10,366,013 6,249,008 65.88% Buildings and improvement 28,892,209 27,058,747 3,495,683 3,495,683 32,387,892 30,554,430 6.00% Machinery and equipment 8,905,461 6,609,698 2,145,995 2,145,995 11,051,456 8,755,693 26.22% Infrastructure 91,253,716 90,120,903 - - 91,253,716 90,120,903 1.26% Accumulated deprec./amort. (71,016,177) (67,394,856) (2,474,214) (2,294,723) (73,490,391) (69,689,579) 5.45% Total Capital Assets, Net $ 75,193,387 $ 69,435,665 $ 3,167,464 $ 3,346,955 $ 78,360,851 $ 72,782,620 7.66% Table 4 - Capital Assets at Year End - Net
Governmental Activities Business-type Activities Total
2025 2024 % Change
Revenue bonds and notes $ 11,779,395 $ 12,590,248 -6.44% Financed purchases 1,525,364 1,474,237 3.47%
Total outstanding long-term debt $ 13,304,759 $ 14,064,485 -5.40% 2025 2024 % Change
Revenue bonds and notes $ 151,900 $ 450,200 -66.26%
Financed purchases 263,300 422,983 -37.75%
Total outstanding long-term debt $ 415,200 $ 873,183 -52.45% Table 5 - Outstanding Long-Term Debt at Year End
Governmental Activities
Business-type Activities
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City of El Cerrito Management’s Discussion and Analysis tax estimates when the amounts come in higher than expected or reduce other balances that report declines unless the changes are material. Tax estimates are based on trend information where the base amount rolls forward for cumulative increases in long term planning and the trends are reevaluated each year during the budget period.

At the time of the FY 24/25 budget adoption, City revenues were projected to be $51.38 million, and expenditures were projected to be $50.59 million. The final budgeted revenues were $51.69 million and expenditures were $52.57 million. Actual revenues exceed the final budget by $2.44 million and actual expenditures were less than the final budget by $0.83 million.

After transfers, the original adopted budget projected a surplus change in fund balance of $0.03 million and the final budget projected a deficit of $2.13 million. The actual change in fund balance for the year was a surplus of $1.36, which was $3.27 million less than the final budgeted deficit.

The following table summarizes the City’s budget vs. actual amounts for FY 24/25:

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

REVENUES
Taxes and assessments $ 34,827,302 $ 34,827,302 $ 36,217,428 $ 1,390,126 Licenses and permits 1,007,000 1,007,000 1,414,521 407,521 Fines and forfeitures 130,000 130,000 198,860 68,860
Intergovernmental 5,214,401 5,214,401 5,964,717 750,316 Use of money and property 570,000 570,000 616,575 46,575 Charges for Services 9,444,070 9,754,605 9,495,474 (259,131) Other Revenue 190,000 190,000 226,257 36,257
Total Revenues 51,382,773 51,693,308 54,133,832 2,440,524

EXPENDITURES
Current:

General government 7,667,983 7,971,500 7,764,023 207,477 Public works 2,463,131 2,786,045 2,316,028 470,017
Recreation 6,601,235 6,903,467 6,383,344 520,123
Community development 3,897,923 4,168,728 3,846,961 321,767 Public Safety 29,703,351 30,476,789 30,964,493 (487,704) Capital outlay 71,179 71,179 226,373 (155,194)
Debt service
Principal retirement 172,987 172,987 215,408 (42,421)
Interest 16,375 16,375 16,375 -
Total Expenditures 50,594,164 52,567,070 51,733,005 834,065 Excess (Deficiency) of Revenues over Expenditures $ 788,609 $ (873,762) $ 2,400,827 $ 3,274,589 Agenda Packet Page 56 of 324
City of El Cerrito Management’s Discussion and Analysis ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The City’s diversified and resilient revenue base remained strong and exceeded projections. At fiscal year ending June 30, 2025, operating revenues exceeded budget, primarily due to better than budgeted tax revenues and licenses and permits. Operating expenditures were also slightly below budget due to the timing of some expenditure disbursements. During the fiscal year, the City Council voted to utilize unassigned fund balance for major urgent capital needs, resulting in a planned budget deficit of over $2 million. Due to the higher than budgeted revenues and lower than budgeted expenditures, the year-end change in fund balance was an increase of $3.4 million, even with the additional capital projects. The General Fund balance increased by $3.4 million from the prior year, leaving a total General Fund balance of $26.19 million. This represents approximately 49% of total General Fund expenditures.

Despite the City’s positive economic position, management remains cognizant of the economic trends facing the State of California. While healthy stock market gains contributed to a modest budgetary surplus, the proposed state budget provides insufficient funding to cover the costs for state mandates impacting local governments. California is also facing persistent challenges from the high cost of living, a housing shortage exacerbated by climate disasters and volatile property markets, and a homelessness and mental health crisis.

In addition, City management is mindful of the uncertainty facing the U.S. including a complex political environment, impacts from major natural disasters, slow real estate markets, interest rate changes, the uncertainty associated with international trade wars and tariffs, and an economy that is overall stagnant, with cautious consumers slowing demand and conservative spending..

Also, the City’s employee costs continue to trend upwards as a result of new agreements with the City’s labor unions, and as retirement contributions and lower than projected fluctuations in the CalPERS pension plan investments drives pension costs higher. General Fund Employee costs are projected at nearly 73% of Total General Fund Expenditures for Fiscal Year 2025. This proportion may increase with new contracts and with projected increases in pension related costs in FY 2026 and beyond.

Despite these economic trends, the Greater Bay Area and El Cerrito are somewhat better positioned to withstand economic down trends due to their diversified revenue sources and the City’s prudent and conservative financial management strategies and approach of avoiding overly optimistic revenue estimates or a presumption of an imminent recession.

El Cerrito’s FY 25/26 General Fund Budget was balanced, with estimated revenues projected to be $0.16 greater than expenditures during the budget process. The projected FY 2026 ending General Fund balance was estimated to be $20.73 million. Taking into consideration that the General Fund ended in a more favorable position for FY 2025 at $26.19 million, this would increase the projected FY 25/26 ending fund balance to $26.35 million exceeding the City’s fiscal year General Fund balance goal of 17% of the City’s General Fund expenditures.

The City remains focused on financial stability and opportunities to strengthen our financial position. The City is proud of having sufficient reserves at the start of FY 2025 and commits to maintaining a healthy General Fund balance in compliance with the City’s financial policies. The City’s priority is to continue to provide the quality of services residents have come to expect.

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City of El Cerrito Management’s Discussion and Analysis

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of El Cerrito's finances for El Cerrito's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Department of Finance at (510) 215-4323, by mail at 10890 San Pablo Avenue, El Cerrito, CA 94530 or by email [email protected].

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BASIC FINANCIAL STATEMENTS
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Agenda Packet Page 61 of 324
City of El Cerrito
Statement of Net Position
June 30, 2025
BusinessGovernmental Type
ASSETS Activities Activities Total
Current Assets:

Cash and investments $ 38,478,939 $ 3,370,571 $ 41,849,510 Accounts receivable 6,689,695 800,497 7,490,192
Interest receivable 1,865,317 - 1,865,317
Due from other governments 2,516,198 - 2,516,198
Prepaid items and other assets 323,124 102,395 425,519
Total Current Assets 49,873,273 4,273,463 54,146,736
Noncurrent Assets:

Loans receivable 9,025,108 - 9,025,108
Capital Assets:

Nondepreciable 17,158,178 - 17,158,178
Depreciable, net of accumulated depreciation 58,035,209 3,167,464 61,202,673 Total Capital Assets, Net 75,193,387 3,167,464 78,360,851 Total Noncurrent Assets 84,218,495 3,167,464 87,385,959 Total Assets $ 134,091,768 $ 7,440,927 $ 141,532,695

DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments $ 25,367,164 $ 1,177,273 $ 26,544,437 Deferred Loss on Refunding 194,019 - 194,019
Total Deferred Outflows of Resources $ 25,561,183 $ 1,177,273 $ 26,738,456

LIABILITIES
Current Liabilities:

Accounts payable $ 3,097,911 $ 115,347 $ 3,213,258
Accrued liabilities 1,122,323 72,410 1,194,733
Interest payable 157,841 - 157,841
Deposits payable 2,926,492 - 2,926,492
Unearned revenue 2,152,492 - 2,152,492
Compensated absences, due within one year 1,782,153 56,603 1,838,756 Long-term debt, due within one year 1,243,191 236,585 1,479,776 Total Current Liabilities 12,482,403 480,945 12,963,348 Noncurrent Liabilities:

Net pension liability 79,676,034 3,456,898 83,132,932
Claims payable, due in more than one year 20,625 - 20,625 Compensated absences, due in more than one year 959,621 30,479 990,100 Long-term debt - due in more than one year 12,685,932 178,615 12,864,547 Total Noncurrent Liabilities 93,342,212 3,665,992 97,008,204 Total Liabilities $ 105,824,615 $ 4,146,937 $ 109,971,552

DEFERRED INFLOWS OF RESOURCES
Pension Adjustments $ 2,513,353 $ 190,974 $ 2,704,327
Total Deferred Inflows of Resources $ 2,513,353 $ 190,974 $ 2,704,327

NET POSITION
Net investment in capital assets $ 61,458,283 $ 2,752,264 $ 64,210,547 Restricted for:

Capital projects 11,282,493 - 11,282,493
Debt service 77,516 - 77,516
Pensions 2,960,245 - 2,960,245
Community development 11,287,692 - 11,287,692
Total Restricted 25,607,946 - 25,607,946
Unrestricted (35,751,246) 1,528,025 (34,223,221)
Total Net Position $ 51,314,983 $ 4,280,289 $ 55,595,272 The accompanying notes are an integral part of these financial statements.

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City of El Cerrito
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Total Activities Activities Total Primary Government:

Governmental Activities:

General government $ 8,947,901 $ 1,612,875 $ 658,813 $ - $ 2,271,688 $ (6,676,213) $ (6,676,213) Public works 9,702,125 501,889 332,501 6,733,923 7,568,313 (2,133,812) (2,133,812) Recreation 7,682,753 5,799,134 56,222 - 5,855,356 (1,827,397) (1,827,397) Community development 4,472,171 2,564,550 406,936 62,670 3,034,156 (1,438,015) (1,438,015) Public safety 34,272,713 4,762,457 1,913,803 - 6,676,260 (27,596,453) (27,596,453) Interest 541,187 - - - - (541,187) (541,187)
Total Governmental Activities $ 65,618,850 $ 15,240,905 $ 3,368,275 $ 6,796,593 $ 25,405,773 (40,213,077) (40,213,077) Business-Type Activities:

Integrated waste management $ 3,757,558 $ 4,443,095 $ 30,559 $ - $ 4,473,654 $ 716,096 716,096 Total Primary Government $ 69,376,408 $ 19,684,000 $ 3,398,834 $ 6,796,593 $ 29,879,427 $ (40,213,077) $ 716,096 $ (39,496,981) General Revenues:

Taxes:

Property taxes and assessments 18,892,277 - 18,892,277
Sales and use taxes 12,142,660 - 12,142,660
Transient occupancy taxes 115,058 - 115,058
Franchise taxes 1,587,267 - 1,587,267
Business license taxes 1,176,343 - 1,176,343
Utility user taxes 4,206,762 - 4,206,762
Real property County transfer tax 3,207,242 - 3,207,242 Other taxes 57 - 57
Total taxes 41,327,666 - 41,327,666
Investment earnings (loss) 1,377,766 180,261 1,558,027
Other revenues 1,026,488 - 1,026,488
Total General Revenues 43,731,920 180,261 43,912,181
Transfers 3,671 (3,671) -
Total General Revenues and Transfers 43,735,591 176,590 43,912,181 Change in Net Position 3,522,514 892,686 4,415,200
Net Position - Beginning of Year 47,792,469 3,387,603 51,180,072 Net Position - End of Year $ 51,314,983 $ 4,280,289 $ 55,595,272 The accompanying notes are an integral part of these financial statements.

Program Revenues
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes, utility users tax, franchise fees, business licenses, unrestricted revenues from the State, fines and forfeitures, and interest income. Expenditures are made for public safety, recreation, and the other services described above.

Low and Moderate Income Housing Asset Special Revenue Fund This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the collection of revenues from those restricted assets. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.

Street Improvement Fund
This fund accounts for the street maintenance and improvement projects funded by the 2008 Sales Tax Revenue Bonds.

Capital Improvements Capital Projects Fund
This fund accounts for funds expended on various City capital projects.

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City of El Cerrito
Balance Sheet
Governmental Funds
June 30, 2025
Low/Mod
Income
Housing Street Capital Nonmajor Total
General Asset Improvement Improvement Governmental Governmental Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 25,387,360 $ 455,410 $ 4,864,950 $ 545,962 $ 6,757,543 $ 38,011,225 Accounts receivable 1,890,204 - - 4,054,527 744,964 6,689,695 Interest receivable 220,648 1,459,788 - - 184,881 1,865,317 Due from other governments 1,952,392 - 376,857 - 186,949 2,516,198 Due from other funds 467,019 - - - - 467,019
Loans receivable - 5,045,108 - - 3,980,000 9,025,108
Prepaid items and other assets 187,240 - - - 135,884 323,124 Total assets $ 30,104,863 $ 6,960,306 $ 5,241,807 $ 4,600,489 $ 11,990,221 $ 58,897,686

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,424,412 $ 270 $ 41,010 $ 1,123,233 $ 508,986 $ 3,097,911 Accrued liabilities 1,063,940 11,680 2,912 -
43,791 1,122,323
Due to other funds - - - 311,138 118,029 429,167
Deposits payable 2,394,927 - - - 531,565 2,926,492
Unearned revenue 729,770 - - 1,344,163 78,559 2,152,492 Total liabilities 5,613,049 11,950 43,922 2,778,534 1,280,930 9,728,385 Deferred Inflows of Resources:

Unavailable revenues 241,306 1,654,898 - 3,094,447 207,831 5,198,482 Total deferred inflows of resources 241,306 1,654,898 - 3,094,447 207,831 5,198,482 Fund Balances:

Nonspendable:

Prepaid items 143,196 - - - - 143,196
Inventory 32,180 - - - - 32,180
Restricted:

Redevelopment - - - - 341,702 341,702
Debt service - - - - 77,516 77,516
Street improvements - - 5,197,885 - 1,935,495 7,133,380 Transportation - - - - 1,554,313 1,554,313
Public safety - police - - - - 304,475 304,475
Public safety - vehicle abatement - - - - 367,316 367,316 Parks and recreation - - - - 668,094 668,094
Storm drains - - - - 1,122,302 1,122,302
Public art - - - - 175,248 175,248
Housing - 5,293,458 - - 3,954,999 9,248,457
Pensions 2,960,245 - - - - 2,960,245
Unassigned:

Emergency Disaster Relief 7,500,000 - - - - 7,500,000
Remaining unassigned 13,614,887 - - (1,272,492) - 12,342,395 Total fund balances 24,250,508 5,293,458 5,197,885 (1,272,492) 10,501,460 43,970,819 Total liabilities, deferred inflows of
resources and fund balances $ 30,104,863 $ 6,960,306 $ 5,241,807 $ 4,600,489 $ 11,990,221 $ 58,897,686 The accompanying notes are an integral part of these financial statements.

Major Funds
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City of El Cerrito
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 43,970,819 Amounts reported for governmental activities in the statement of net position were different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Capital assets 141,975,629
Less: accumulated depreciation (68,377,756)
Total Capital Assets 73,597,873
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (157,841) Internal service funds are used by management to charge the costs of vehicles and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in governmental activities. 856,006
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 22,853,811 The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. 194,019 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as unearned in the fund statements. 5,198,482 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Long-term debt (12,759,753)
Claims payable (20,625)
Compensated absences (2,741,774)
Net pension liability (79,676,034)
Total Long-Term Obligations (95,198,186)
Net Position of Governmental Activities $ 51,314,983
The accompanying notes are an integral part of these financial statements.

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City of El Cerrito
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Low/Mod
Income
Housing Street Capital Nonmajor Total
General Asset Improvement Improvement Governmental Governmental Fund Fund Fund Fund Funds Funds

REVENUES
Taxes and assessments $ 36,217,428 $ - $ 2,154,856 $ 66,143 $ 3,018,052 $ 41,456,479 Licenses and permits 1,414,521 - - - - 1,414,521
Fines and penalties 198,860 - - - - 198,860
Intergovernmental 5,964,717 - - 3,972,713 2,337,354 12,274,784 Use of money and property 616,575 26,252 260,563 10,784 945,454 1,859,628 Charges for Services 9,495,474 - - - 103,042 9,598,516
Other Revenue 226,257 - 10,132 138,002 477,069 851,460
Total Revenues 54,133,832 26,252 2,425,551 4,187,642 6,880,971 67,654,248

EXPENDITURES
Current:

General government 7,764,023 - 6,035 - 44,813 7,814,871 Public works 2,316,028 - 119,842 - 3,651,347 6,087,217
Recreation 6,383,344 - - - 355,731 6,739,075
Community development 3,846,961 14,746 - - 192,470 4,054,177 Public Safety 30,964,493 - - - 214,537 31,179,030
Capital outlay 226,373 - 267,951 6,104,765 1,973,049 8,572,138 Debt service
Principal 215,408 - - - 834,698 1,050,106
Interest 16,375 - - - 552,841 569,216
Total Expenditures 51,733,005 14,746 393,828 6,104,765 7,819,486 66,065,830 Excess (Deficiency) of
Revenues over Expenditures 2,400,827 11,506 2,031,723 (1,917,123) (938,515) 1,588,418

OTHER FINANCING SOURCES (USES)
Debt issuance 211,001 - - - 570,483 781,484
Transfers in 3,671 - - 540,000 1,399,829 1,943,500
Transfers out (1,258,329) - (702,500) - (64,000) (2,024,829) Total Other Financing Sources (Uses) (1,043,657) - (702,500) 540,000 1,906,312 700,155 Net Change in Fund Balances 1,357,170 11,506 1,329,223 (1,377,123) 967,797 2,288,573 Fund Balances Beginning 22,893,338 5,281,952 3,868,662 104,631 9,533,663 41,682,246 Fund Balances Ending $ 24,250,508 $ 5,293,458 $ 5,197,885 $ (1,272,492) $ 10,501,460 $ 43,970,819 The accompanying notes are an integral part of these financial statements.

Major Funds
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City of El Cerrito
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ 2,288,573 Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.

Capital asset additions 8,779,775
Depreciation expense (4,030,000)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable (867,271) program expense.

Certain revenues were not recorded or recorded as unearned revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government-Wide Statement of Activities under the full accrual basis. 1,466,268 The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. (17,672) In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (4,725,304)
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. 268,622 Premiums from the issuance of long-term debt are amortized over the life of the bonds in the Statement of Activities and reported as proceeds when issued in governmental funds. 90,853 Internal service funds are used by management to charge the costs of vehicles and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in governmental activities. 274,683
Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Insurance claims (2,172)
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from from prior year. (3,841)
Change in Net Position of Governmental Activities $ 3,522,514 The accompanying notes are an integral part of these financial statements.

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PROPRIETARY FUND FINANCIAL STATEMENTS
Integrated Waste Management Fund
This fund accounts for the City's recycling collection service operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

Vehicle and Equipment Replacement Internal Service Fund The City’s internal service fund accounts for the City's departments' vehicle and equipment replacement activities.

Agenda Packet Page 70 of 324
City of El Cerrito
Statement of Net Position
Proprietary Funds
June 30, 2025
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund
ASSETS
Current assets:

Cash and cash equivalents $ 3,370,571 $ 467,714
Accounts receivable 800,497 -
Prepaid items and other assets 102,395 -
Total current assets 4,273,463 467,714
Capital assets:

Depreciable, net of accumulated depreciation 3,167,464 1,595,514 Total assets $ 7,440,927 $ 2,063,228

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ 1,177,273 $ -
Total deferred outflows of resources $ 1,177,273 $ -

LIABILITIES
Current liabilities:

Accounts payable $ 115,347 $ -
Accrued liabilities 72,410 -
Due to other funds - 37,852
Compensated absences, due within one year 56,603 -
Financed purchases, due within one year 236,585 167,169 Total current liabilities 480,945 205,021
Noncurrent liabilities:

Net pension liability 3,456,898 -
Compensated absences, due in more than one year 30,479 - Financed purchases, due in more than one year 178,615 1,002,201 Total noncurrent liabilities 3,665,992 1,002,201
Total liabilities $ 4,146,937 $ 1,207,222

DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ 190,974 $ -
Total deferred inflows of resources $ 190,974 $ -

NET POSITION
Net Investment in capital assets $ 2,752,264 $ 426,144
Unrestricted 1,528,025 429,862
Total net position $ 4,280,289 $ 856,006
The accompanying notes are an integral part of these financial statements.

Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 71 of 324
City of El Cerrito
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2025
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund

OPERATING REVENUES
Charges for services $ 4,320,878 $ 425,000
Recycling sales 122,118 -
Other 99 -
Total operating revenues 4,443,095 425,000

OPERATING EXPENSES
Personnel services 2,482,102 -
Services 897,969 -
Supplies 172,313 98,825
Depreciation 179,846 112,358
Total operating expenses 3,732,230 211,183
Operating income (loss) 710,865 213,817

NONOPERATING REVENUES (EXPENSES)
Grants 30,559 -
Interest expense (25,328) (41,311)
Investment earnings 180,261 17,177
Total nonoperating revenues (expenses) 185,492 (24,134) Income (loss) before operating transfers 896,357 189,683 Transfers in - 85,000
Transfers out (3,671) -
Total transfers (3,671) 85,000
Change in net position 892,686 274,683
Total net position - beginning 3,387,603 581,323
Total net position - ending $ 4,280,289 $ 856,006
The accompanying notes are an integral part of these financial statements.

Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 72 of 324
City of El Cerrito
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund
Cash flows from operating activities:

Receipts from customers 4,401,547 $ 425,000 $
Payments to suppliers (1,089,055) (98,825)
Payments to employees (2,188,636) -
Net cash provided (used) by operating activities 1,123,856 326,175 Cash flows from noncapital financing activities:

Receipts from grants 30,559 -
Interfund transactions (3,671) 122,852
Net cash provided (used) by noncapital financing activities 26,888 122,852 Cash flows from capital financing activities:

Acquisition of capital assets (355) (964,305)
Principal payments on long-term debt (457,983) 224,113
Interest paid on long-term debt (25,328) (41,311)
Net cash provided (used) by capital financing activities (483,666) (781,503) Cash flows from investing activities:

Investment income (loss) 180,259 21,485
Net cash provided (used) by investing activities 180,259 21,485 Net increase (decrease) in cash and cash equivalents 847,337 (310,991) Cash and cash equivalents - beginning 2,523,234 778,705 Cash and cash equivalents - ending $ 3,370,571 $ 467,714 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ 710,865 $ 213,817
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 179,846 112,358
Change in operating assets and liabilities:

Accounts receivables (41,548) -
Prepaid items and other assets (86,308) -
Deferred outflows of resources 286,014 -
Accounts payable 67,535 -
Accrued liabilities 11,695 -
Compensated absences 12,222 -
Net pension liability (44,092) -
Deferred inflows of resources 27,627 -
Net cash provided (used) by operating activities $ 1,123,856 $ 326,175 The accompanying notes are an integral part of these financial statements.

Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 73 of 324

FIDUCIARY FUND FINANCIAL STATEMENTS
Pension Trust Fund
The City of El Cerrito Pension Trust Fund accounts for assets held by the City on behalf of the retiree's of the City's single employer pension plan.

Private Purpose Trust Fund
The Successor Agency Trust Fund accounts for assets and liabilities transferred from the City to the Successor Agency Trust Fund.

Agenda Packet Page 74 of 324
City of El Cerrito
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
El Cerrito
Redevelopment Agency
Pension Successor Agency
Trust Private-Purpose Trust
Fund Fund
ASSETS
Cash and investments $ - $ 32,514
Total assets $ - $ 32,514

LIABILITIES
Accrued liabilities $ - $ 115,301
Long-term liabilities:

Due within one year - 1,048,242
Total liabilities $ - $ 1,163,543

NET POSITION
Unrestricted $ - $ (1,131,029)
Total Net Position $ - $ (1,131,029)
The accompanying notes are an integral part of these financial statements.

Agenda Packet Page 75 of 324
City of El Cerrito
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
El Cerrito
Redevelopment Agency
Pension Successor Agency
Trust Private-Purpose Trust
Fund Fund

ADDITIONS
Property taxes $ - $ 2,344,294
Total additions - 2,344,294

DEDUCTIONS
General government - 2,890
Payuments to the City 7,837 218,750
Debt service:

Interest - 73,897
Total deductions 7,837 295,537
Change in net position (7,837) 2,048,757
Total net position - beginning 7,837 (3,179,786)
Total net position - ending $ - $ (1,131,029)
The accompanying notes are an integral part of these financial statements.

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Agenda Packet Page 77 of 324

NOTES TO THE BASIC

FINANCIAL STATEMENTS
Agenda Packet Page 78 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of El Cerrito (City) was incorporated August 1, 1917. The City provides the following services:
public safety (police and fire), recreation, streets and highways, recycling, public improvements, planning and zoning, and general administration services. The City's population has remained relatively stable for some years; population at June 30, 2025, was 25,552. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff.

A. Financial Reporting Entity
The accompanying basic financial statements present the financial activity of the City along with the financial activities of its blended component units, which are entities for which the City is financially accountable. Together these entities comprise the primary government for reporting purposes. Although they are separate legal entities, blended component units are in substance part of the City's operations and are reported as an integral part of the City's financial statements. The City's component units, which are described below, are all blended.

The El Cerrito Public Financing Authority (Authority)
The El Cerrito Public Financing Authority is a nonprofit corporation organized by the City to provide financial assistance to the City. Administrative and related normal business expenses incurred in the dayto-day operations of the Authority are provided by the City. Such expenses are insignificant to the Authority's operations. The Authority obtains financing for City sponsored projects using leases signed by the City as collateral. The amounts of the leases are calculated to provide sufficient resources to repay the debt incurred to finance the projects. The financial activities of the Authority have been included in these financial statements in the Public Financing Authority Debt Service Fund and the Integrated Waste Management Enterprise Fund.

The El Cerrito Municipal Services Corporation
The El Cerrito Municipal Services Corporation (Corporation) is a nonprofit corporation organized in 1982 by the City under the corporations laws of the State of California. The Corporation was originally organized to assist the City with communications with its residents and to provide financial assistance to the City by financing real and personal property and improvements for the benefit of the residents of the City. In May 2011, the Corporation amended its articles of incorporation to provide support to the City by utilizing private and public funding sources to combat community blight and deterioration in the City and contribute to the physical improvement of the City; providing and expanding economic opportunities for low and moderate income households in the City; encouraging and stimulating economic development within the City. The financial activities of the Corporation have been included in these financial statements in the Municipal Services Corporation Special Revenue Fund.

The City of El Cerrito Employees' Pension Plan
The City of El Cerrito Employees' Pension Plan is governed by the City's Retirement System Ordinance, Chapter 3 of the City of El Cerrito Municipal Code, and is used to account for contributions and investment income restricted to pay retirement and death benefits of employees who elected not to be covered by the California Public Employees' Retirement System as of February 6, 1959. Benefit and contribution provisions are established by the City Council. Eligibility, actuarial interest rates, administration and certain other tasks are the responsibility of the Council established by the above ordinance. The financial activities of the Pension Plan have been included in these financial statements in the Pension Trust Fund.

Agenda Packet Page 79 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Audited financial statements for the Authority, Corporation and Pension Plan may be obtained from the City of El Cerrito, 10890 San Pablo Avenue, El Cerrito, CA 94530.

The City applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.

GASB 62 incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. In June of 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 also amends GASB 62 and AICPA Pronouncements paragraphs 64, 74, and 82. The GAAP hierarchy sets forth what constitutes GAAP for all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that a governmental entity should apply. The sources of authoritative GAAP are categorized in descending order of authority as follows:
a. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements (Category A).
b. GASB Technical Bulletins; GASB Implementation Guides; and literature of the AICPA cleared by the GASB (Category B).

If the accounting treatment for a transaction or other event is not specified by a pronouncement in Category A, a governmental entity should consider whether the accounting treatment is specified by a source in Category B.

B. Basis of Presentation
The basic financial statements of the City of El Cerrito, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.

The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City. Fiduciary activities of the City are not included in these statements.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are Agenda Packet Page 80 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in-regards-to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Transfers in/Transfers out
The City applies all applicable GASB Pronouncements including all Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Agenda Packet Page 81 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

The City reports the following funds as major funds:

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

Low and Moderate Income Housing Asset Special Revenue Fund This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the collection of revenues from those restricted assets. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes. The major revenue sources are the loan repayments in the fiscal year. Prior to dissolution of the Redevelopment Agency in 2012 it received property tax revenues but has not received any since.

Street Improvement Fund
This fund accounts for the street maintenance and improvement projects funded by the 2008 Sales Tax Revenue Bonds.

Capital Improvements Capital Projects Fund
This fund accounts for funds expended on various City capital projects.

Additionally, the City reports the following nonmajor fund types of governmental funds:

Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.

Debt Service Funds
Debt service funds are used to accumulate resources for repayment of the bonds and lease arrangements.

Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.

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City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.

Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.

The City has the following enterprise fund that have been reported as major:

Integrated Waste Management Enterprise Fund
This fund is used to account for the City's recycling collection services operations financed and operated in a manner similar to a private business enterprise.

The City also reports the following internal service fund:

Vehicles and Equipment Replacement Internal Service Fund The Vehicles and Equipment Replacement Internal Service Fund is used to finance and account for vehicles and equipment for each department, and managing costs associated with the acquisition of necessary capital assets.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. Fiduciary funds are presented on an "economic resources" measurement focus and the accrual basis of accounting.

The City of El Cerrito Pension Trust Fund and the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund account for the accumulation of resources to be used for payments at appropriate amounts and times in the future. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in the separate Fiduciary Fund financial statements.

C. Cash, Cash Equivalents and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash Agenda Packet Page 83 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
equivalents are combined with investments and displayed as Cash and Investments. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: Interest Rate Risk, Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk.

Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
 Market approach - This approach uses prices generated for identical or similar assets or liabilities.

The most common example is an investment in a public security traded in an active exchange such as the NYSE.
 Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures.  Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements. Cash and investments are also restricted for deposits held for others within the enterprise funds.

E. Inventory and Prepaid Items
Inventory held in the General Fund is valued at cost using the first-in-first-out (FIFO) inventory method.

Inventory of the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure in the General Fund at the time individual items are consumed. Reported Agenda Packet Page 84 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
General Fund inventory is equally offset by nonspendable fund balance which indicates that the inventory does not constitute available spendable resources even though the inventory is a component of net current assets.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. In governmental funds, prepaid items are accounted for using the consumption method and a portion of fund balance equal to the prepaid items has been offset by nonspendable fund balance to indicate that is not available for appropriation.

F. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. The City considers all trade and property tax receivables to be fully collectible and therefore no allowance for uncollectible accounts is considered necessary.

G. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.

H. Loans Receivable
Under the City’s housing opportunity program, loans are made to qualified individuals and businesses within prescribed project areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. Repayments of the outstanding loans are classified as a revenue source in the applicable funds. The portion of loans receivable deemed to be unavailable have been offset by Unavailable Revenues in the accompanying financial statements, which is a part of deferred inflows of resources.

I. Lease Receivables
When applicable, the City’s lease receivables are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease.

The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.

Agenda Packet Page 85 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
J. Capital Assets
Capital assets used in governmental fund operations, including infrastructure assets (i.e. roads, curbs, gutters, bridges, sidewalks, drainage systems, lighting systems, and other assets) are reflected in the government-wide financial statements, along with related depreciation and amortization. Capital assets are defined by the City as assets with an initial individual cost of more than $10,000 and an estimated life in excess of one year. Purchased capital assets are valued at historical cost or estimated historical cost.

Right of use assets are valued at the net present value of the total lease payments over the period of the lease. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value on the date donated. Capital assets acquired under finance or purchase agreements are capitalized when the City accumulates an ownership equity in the assets acquired.

The purpose of depreciation and amortization is to spread the cost of capital assets equitably among all users over the life of these assets or the lease term. The amount charged to depreciation and amortization expense each year represents that year’s pro rata share of the cost of capital assets.

Depreciation is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset. Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.

Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:

Buildings 20-50 Years
Building improvements 20-60 Years
Equipment 2-15 Years
Streets 20 Years
Parks 20 Years
Curbs and gutters 20 Years
Storm drains 65 Years
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.

K. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred Agenda Packet Page 86 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

L. Interest Payable
In the government-wide and proprietary fund financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.

M. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. The liability for compensated absences includes salary-related taxes and benefits, where applicable.

Vacation
The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee’s current pay rate upon separation from employment.

Sick Leave
A liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences.

N. Deferred Compensation
City employees may defer a portion of their compensation under City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Section 457. Under these Plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plans. The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements. The City has determined that this plan does not meet the reporting requirements of GASB Statement No. 97 - Certain Component Unit Criteria, And Accounting And Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans and GASB Statement No. 84 - Fiduciary Activities.

O. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs Agenda Packet Page 87 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
are expensed in year incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

P. Lease Liabilities
When applicable, the City recognizes a lease liability and an intangible right‐to‐use lease asset (capital asset) in the government‐wide financial statements.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported separately with capital assets as right of use assets and lease liabilities are reported with long-term liabilities in the statement of net position.

Q. Benefit Plans
Pension Expense
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

For this report, the following timeframes are used:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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June 30, 2025
R. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, leases receivable in excess of deferred inflows of resources and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.

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

Committed
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to the constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the specific amounts can be determined subsequently. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources.

Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; nonspendable amounts, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects, and Debt Service Funds, which have not been restricted or committed.

Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.

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City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
S. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.

Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. These include developer fees received for use on capital projects, debt service requirements, and community development projects.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

T. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.

U. Property Taxes and Special Assessments
Property tax revenue is recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the City; under the County's "Teeter Plan" the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1. Secured property taxes are due on November 1 and February 1, become a lien on November 1 and February 1, and become delinquent on December 10 and April 10. Unsecured property tax is due on July 1, and becomes delinquent on August 31. The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed.

Property tax revenues are recognized by the City in the fiscal year they are assessed.

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City of El Cerrito
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June 30, 2025
V. Budgetary Information
Annually, the City Manager submits to the City Council a proposed operating budget in June for the following fiscal year, as required by the City's budget ordinance. This budget includes proposed expenditures and the revenues expected to finance them. As modified during public study sessions, the preliminary budget becomes the proposed budget. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. The City Manager is authorized to transfer budgeted amounts within departments within funds. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. Budget modifications between funds or increases or decreases to a fund's overall budget must be approved by the City Council. The legal level of budgetary control is at the fund level, except for the Municipal Services Corporation which requires approval by its Board.

Budgets are adopted on a basis consistent with generally accepted accounting principles. Unexpended appropriations lapse at year end and must be reappropriated in the following year. Budgeted amounts are as originally adopted, or as amended by the City Council.

W. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to commit that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

X. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.

Y. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Z. Implementation of New Accounting Pronouncements
GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates Agenda Packet Page 91 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences - including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. The implementation of this standard did not have a material impact on the City’s financial statements
GASB Statement No. 102, Certain Risk Disclosures
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk. The implementation of this standard did not have a material impact on the City’s financial statements and management determined there were no were concentrations or constraints that make the City vulnerable to the risk of substantial impact.

AA.Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to identify the potential impact on the financial statements of the following GASB Statements:

GASB Statement No. 103, Financial Reporting Model Improvements This Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability.

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June 30, 2025
This Statement establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s discussion and analysis (MD&A) (b) Unusual or infrequent items (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position (d) Information about major component units in basic financial statements (5) Budgetary comparison information (6) Financial trend information in the statistical section. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

GASB Statement No. 104, Disclosure of Certain Capital Assets This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Operating cash and investments $ 35,408,299 $ 3,370,571 $ 32,514 $ 38,811,384 Restricted cash held with fiscal agent 3,070,640 - - 3,070,640 Total cash and investments $ 38,478,939 $ 3,370,571 $ 32,514 $ 41,882,024 Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
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City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Cash and investments consisted of the following as of June 30, 2025:

Deposits:

Cash on hand $ 2,405
Deposits with financial institutions 18,669,589
Total Deposits 18,671,994
Investments:

Local Agency Investment Fund 20,139,390
Debt service reserves held with fiscal agent 3,070,640
Total cash and investments $ 41,882,024
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest and places the City ahead of general creditors of the institution. The fair value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $19,428,972 at June 30, 2025 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $19,178,972, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

The City’s investments were not subject to levelling.

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City of El Cerrito
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June 30, 2025
C. Investment Policies
City Investment Policy
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
Portfolio
Maximum
Investment in
One Issuer
CA Local Agency Investment Fund n/a n/a $65,000,000 $65,000,000 U.S. Treasury Bonds, Notes, Bills 5 Years n/a No Limit No Limit U.S. Agency Securities 5 Years n/a No Limit No Limit
Banker's Acceptance 180 Days 30% n/a 30%
Commercial Paper 270 Days 10% n/a 10%
Certificates of Deposit 5 Years 30% n/a 10%
Negotiable Certificates of Deposit 5 Years 30% n/a 10%
Medium Term Corporate Notes 5 Years 10% n/a 10%
Derivative Securities (limited to Federal
Agency callable issues) 5 Years 10% n/a 10%
Money Market Mutual Funds n/a 5% n/a 5%
Authorized Investment Type
Total combined corporate debt (Commercial Paper and Medium-Term Notes) may not exceed 20% of the cost value of the portfolio. The City's investment policy prohibits investments in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages in accordance with California Government Code Section 53601.6. With the exception of callable Federal Agency securities, any security that derives its value from another asset or index is prohibited. In addition, the City may not invest any funds in any security that could result in zero interest accrual if held to maturity.

The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.

D. External Investment Pool
The City's investments with LAIF at June 30, 2025, include a portion of the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

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June 30, 2025
Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at https://www.treasurer.ca.gov/pmia-laif/laif/index.asp.

E. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2025, the City’s investments were in compliance with the ratings required by the City’s investment policy and Government Code.

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2025, the City had all of its investments with the California Local Agency Investment Fund.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside 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 investments.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

As of June 30, 2025, the City’s investments had the following maturities:
12 Months or
Less Fair Value
Fair Value
Input Levels
Min. Legal
Rating
Local Agency Investment Funds 20,139,390 $ $ 20,139,390 n/a n/a Investment Type
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June 30, 2025
NOTE 3 - LOANS RECEIVABLE
Loans receivable consisted of the following as of June 30, 2025:

Loans Interest Balance
Description Receivable Receivable June 30, 2025
Low/Mod Income Housing Asset Fund:

Ohlone Gardens LP-Low and Moderate Income Housing $ 3,500,000 $ 1,326,287 $ 4,826,287 Idaho Apartments-Low and Moderate Income Housing 545,110 - 545,110 Eden Housing-Low and Moderate Income Housing 299,998 76,126 376,124 Mayfair Affordable Bridge House Loans 350,000 46,000 396,000 ECP Parcel A.S.-$350K 350,000 11,375 361,375
Total Low/Mod Income Housing Asset Fund 5,045,108 1,459,788 6,504,896 Nonmajor Governmental Funds:

Ohlone Gardens LP-City Housing Fund 2,860,000 - 2,860,000 Mayfair Affordable Bridge House Loans 500,000 16,750 516,750 ECP Parcel A.S.-$620K 620,000 6,200 626,200
Total Governmental Funds $ 9,025,108 $ 1,482,738 $ 10,507,846 Ohlone Gardens, L.P.

In fiscal year 2009, the former Redevelopment Agency entered into a predevelopment, acquisition and construction loan agreement with Ohlone Gardens, L.P. for $3,500,000 to assist with the acquisition and construction of a 57-unit affordable housing development including at least ten special needs units with appropriate supportive services and related office space. The Loan bears simple interest at the rate of 3% per year, beginning with the date of first disbursement and is repayable 55 years from the date of occupancy from residual receipts, as defined in the agreement. The Loan is secured by a deed of trust in the first position on the property. The deed of trust may subsequently be subordinated to other financing as defined in the agreement.

Predevelopment activities and acquisition of the site began in fiscal year 2009. With the dissolution of the Redevelopment Agency as discussed in Note 16, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The developer made the final loan drawdown of $471,152 during fiscal year 2013-14.

In fiscal year 2014, the City entered into an Infill Infrastructure loan agreement with Ohlone Gardens, L.P. for $2,860,000 for the purpose of funding infrastructure work for a 57-unit affordable housing development. The Loan is contingent on the City receiving funding and approval from the California Department of Housing and Community Development Infill Infrastructure Grant Program. The Loan bears no interest and is due in one lump sum the earlier of the fifty-fifth anniversary of the final certificate of occupancy for the project or the fifty-seventh anniversary of the date of the Loan. The Loan is secured by a deed of trust on the property that is subordinated to the 2009 loan above and to the primary construction financing.

Idaho Apartments
The former Redevelopment Agency entered into an Owner Participation Agreement for Idaho Apartments in 1997 in which the Agency agreed to make a loan to the project which included rehabilitation of the deteriorated building. At that time, the developer requested assistance to help Agenda Packet Page 97 of 324
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June 30, 2025
repay a loan from a non-profit agency. In August 2000, the non-profit agency loan was replaced by another loan obtained by the developer and the Agreement was amended to reflect that fact as well as reaffirm the Agency's commitment to make a loan of up to $350,000 to repay the developer's other loan when that loan matured in 2008. The Loan bears simple interest at the rate of 2.64% per year, beginning with the date of first disbursement. No payments were due for the first ten and one- half years after the date of occupancy, which ended on December 9, 2009. Subsequent to that date, the loan is repayable from residual receipts, as defined in the Agreement. The Loan is secured by a subordinated deed of trust in the third position on the property. The Agency disbursed $350,000 to the developer during the year ended June 30, 2009. With the dissolution of the Redevelopment Agency, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The Loan was recast in December 2017 and all previous interest accrued was added to the loan balance.

Eden Housing, Inc.

In May 2011, the former Redevelopment Agency entered into a predevelopment loan agreement with Eden Housing, Inc., for $350,000 to assist with predevelopment costs related to the development of a mixed use affordable housing development at Agency owned property. With the dissolution of the Redevelopment Agency as discussed in Note 15, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The loan bears simple interest at the rate of 3% per year, beginning with the date of first disbursement and is due and payable upon the second anniversary of the execution date, unless the City and the developer enter into a disposition and development agreement (DDLA). The Loan is secured only by a promissory note, as it is City owned property. Should the developer take title to the subject property, the loan will then be secured by a deed of trust on the property.

In April 2014, the City entered into a DDLA with Eden Housing, Inc., that involves the sale of the property as discussed in Note 1H, as well as a new loan agreement that replaced the original agreement.

In 2017, the City transferred the two parcels to Eden Housing Inc, a nonprofit, and loaned the developer $300,000 to be paid off in 55 years at a rate of 3% from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.

Predevelopment activities began in fiscal year 2011, and the developer has drawn down $299,999 of the loan and $50,001 remains available for drawdown.

Mayfair Affordable Bridge House Loans
On January 1, 2020, The City of El Cerrito entered into a predevelopment, acquisition and construction loan agreement with Mayfair Affordable LLC, for $350,000 to assist with the construction of 67 affordable residential housing units on certain real property located at 11690 El Cerrito Project Area.

The Loan bears simple interest at the rate of 3% per year beginning with the date of first disbursement and is repayable 55 years from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.

El Cerrito Plaza: Parcel A-South, 515 Richmond Street
On March 6, 2024, the City entered a Loan Agreement with ECP Parcel A South Housing Partners, LP, for $350,000 to assist with the construction of 70 affordable residential housing units on certain real property located at 515 Richmond Street. The loan bears simple interest at the rate of 3% per year Agenda Packet Page 98 of 324
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June 30, 2025
beginning with the date of first disbursement and is repayable 55 years from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.

Mayfair Affordable: 11690 San Pablo Avenue
On June 1, 2024, the City entered a Loan Agreement with Mayfair Affordable LLC, for $500,000 to assist with the construction of 69 affordable residential housing units on certain real property located at 11690 San Pablo Avenue. El Cerrito Project Area. The funding source for this loan originated from the HUD HOPE VI Main Street Grant Program, awarded to the City in 2021. The loan bears simple interest at the rate of 3% per year beginning with the date of first disbursement and is repayable 55 years from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.

NOTE 4 - INTERFUND TRANSACTIONS
Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years. As of June 30, 2025, there were no inter-fund receivables and payables to report.

Transfers In/Out
With Council approval resources may be transferred from one fund to another. Transfers from the General Fund to the Debt Service Fund were to regular debt service activity of the City. Transfers from the General Fund to other governmental funds were to provide funding to repair and replacement funds and to provide funding for City programs. Transfers made from the Wastewater Enterprise Fund to the Debt Service Funds were to provide for debt service requirements.

The following summarizes transfers between funds during the fiscal year ended June 30, 2025:

Fund Transfer in Transfer out
General Fund $ 3,671 $ 1,258,329
Street Improvement Fund - 702,500
Capital Improvement Fund 540,000 -
Nonmajor Funds 1,399,829 64,000
Integrated Waste Management Enterprise Fund - 3,671
Vechicle/Equip Replacement Internal Service Fund 85,000 - Total Transfers $ 2,028,500 $ 2,028,500
The following summarizes interfund balances as of June 30, 2025:

Due from Due to
Fund Other Funds Other Funds
General Fund $ 467,019 $ -
Capital Improvement Fund - 311,138
Nonmajor Funds - 118,029
Vehicle and Equipment Replacement Fund - 37,852
Total Due from/to $ 467,019 $ 467,019
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June 30, 2025
NOTE 5 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2025:

Balance Deletions/ Balance
Governmental Activities June 30, 2024 Additions Transfers June 30, 2025 Non-depreciable:

Land $ 6,792,165 $ - $ - $ 6,792,165
Construction in Progress 6,249,008 8,539,226 (4,422,221) 10,366,013 Total Non-Depreciable 13,041,173 8,539,226 (4,422,221) 17,158,178 Depreciable and amortizable:

Buildings and improvements 27,058,747 1,833,462 - 28,892,209 Equipment and vehicles 6,609,698 2,816,800 (521,037) 8,905,461 Infrastructure 90,120,903 1,132,813 - 91,253,716
Total Depreciable and Amortizable 123,789,348 5,783,075 (521,037) 129,051,386 Less Accumulated Depreciation and
Amortization for:

Buildings and improvements (11,541,700) (766,726) - (12,308,426) Equipment and vehicles (6,031,865) (440,811) 347,909 (6,124,767) Infrastructure (49,821,291) (2,761,693) (52,582,984)
Total Accumulated Deprec. And Amort. (67,394,856) (3,969,230) 347,909 (71,016,177) Total Deprec/Amort Capital Assets - Net 56,394,492 1,813,845 (173,128) 58,035,209 Total Governmental Capital Assets $ 69,435,665 $ 10,353,071 $ (4,595,349) $ 75,193,387 Depreciation and amortization expense for governmental activities:

General government $ 341,524
Public works 2,998,383
Recreation 261,131
Community development 7,379
Public safety 360,813
Total depreciation and amortization expense $ 3,969,230 Capital assets for business-type activities consisted of the following as of June 30, 2025:

Balance Deletions/ Balance
Business Type Activities June 30, 2024 Additions Transfers June 30, 2025 Depreciable:

Buildings and improvements 3,495,683 - - 3,495,683
Equipment and vehicles 2,145,995 - - 2,145,995
Total Depreciable 5,641,678 - - 5,641,678
Less Accumulated Depreciation
Buildings and improvements (785,051) (69,503) - (854,554) Equipment and vehicles (1,509,672) (109,988) - (1,619,660) Total Accumulated Depreciation (2,294,723) (179,491) - (2,474,214) Total Depreciable Capital Assets - Net 3,346,955 (179,491) - 3,167,464 Total Business Type - Capital Assets $ 3,346,955 $ (179,491) $ - $ 3,167,464 Agenda Packet Page 100 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
NOTE 6 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2025:

Due
Within One
Governmental Activities Beginning Additions Deletions Ending Year Revenue Bonds:
2017 Lease Revenue Bonds $ 5,250,000 $ - $ 330,000 $ 4,920,000 $ 345,000 2017 Sales Tax Revenue Refunding 6,250,000 - 390,000 5,860,000 410,000 Total Revenue Bonds 11,500,000 - 720,000 10,780,000 755,000 Premiums:
2017 Lease Revenue Bonds Premium 375,821 - 31,318 344,503 - 2017 Sales Tax Revenue Refunding Premium 714,427 - 59,535 654,892 - Total Premiums 1,090,248 - 90,853 999,395 -
Financed Purchases:
2023 Chevy Tahoe Lease 96,440 - 53,593 42,847 42,847
2022 Fire Engine 945,257 - 105,028 840,229 108,535
Solar Photovoltaic 432,540 - 119,393 313,147 122,699
2025 Stryker EKG Monitor - 357,243 28,102 329,141 58,634 Total Financed Purchases 1,474,237 357,243 306,116 1,525,364 332,715 Leases:
2025 Axon police equipment - 781,484 157,120 624,364 155,476 Total Long-Term Debt 14,064,485 1,138,727 1,274,089 13,929,123 1,243,191 Net Pension Liabilities 80,740,039 33,833,906 34,897,911 79,676,034 - Compensated Absences 1,874,503 867,271 - 2,741,774 1,782,153 Total Long-Term Liabilities $ 96,679,027 $ 35,839,904 $ 36,172,000 $ 96,346,931 $ 3,025,344 Due
Within One
Business-Type Activities Beginning Additions Deletions Ending Year 2012 Recycling Facility Revenue Ref. Bonds $ 450,200 $ - $ 298,300 $ 151,900 $ 151,900 Financed Purchase - Side Loader Trucks 77,895 - 77,895 - - Financed Purchase - Rear Loader 345,088 - 81,788 263,300 84,685 Net Pension Liabilities 3,500,990 1,467,949 1,512,041 3,456,898 - Compensated Absences 75,975 11,107 - 87,082 56,603
Total Long-Term Liabilities $ 4,450,148 $ 1,479,056 $ 1,970,024 $ 3,959,180 $ 293,188 A. Governmental Activities
2017 Lease Revenue Refunding Bonds
On May 26, 2017, the City of El Cerrito issued Lease Revenue Refunding Bonds, Series 2017, in the original principal amount of $7,040,000 at 2%-5% interest to provide for the refunding of the City's outstanding 2006 City Hall Lease Revenue Bonds. Principal payments are due annually on September 1, with interest payments payable semi-annually on January 15 and July 15 through January 15, 2036. The economic gain on refunding was $435,000, and the refunding resulting in the recognition of an accounting deferred gain on refunding of $178,732.
2017 Sales Tax Revenue Bonds
On January 25, 2017, the City of El Cerrito issued $8,650,000 original principal amount of 2017 Sales Tax Revenue Bonds at 2%-5% interest to provide for the refunding of the City’s outstanding 2008 Sales Tax Revenue Bonds. Principal payments are due annually on May 1, with interest payments payable semi-annually on May 1 and November 1 through May 1, 2036. Street improvement sales tax revenues are pledged for the repayment of these Bonds, until the Bonds mature. If sales tax revenues are insufficient to pay the annual principal and interest payments on the bonds the City has covenanted to use Agenda Packet Page 101 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
General Fund revenues. For fiscal year 2025, pledged sales tax revenues amounted to 2,154,856 which represented coverage of 256% over the debt service of $701,477. The economic gain on refunding was $525,000, and the refunding resulting in the recognition of an accounting deferred loss on refunding of $514,127.

Financed Purchase - 2023 Chevy Tahoe Lease
On May 23, 2023, the City entered into a purchase agreement in the amount of $150,000 at less than 1% interest with LeaseExperts to finance the purchase of a 2023 Chevy Tahoe. Principal and interest payments of $4,907 are due each month until March 2026.

Financed Purchase - 2022 Fire Engine Purchase
On April 19, 2022, the City entered into a purchase agreement in the amount of $1,145,241 at 3.34% interest with First Capital Leasing Corp. to finance the purchase of a fire engine. Annual principal and interest payments of $136,590 are due each May.

Financed Purchase - Solar Photovoltaic
On December 5, 2012, the City entered into a purchase agreement in the amount of $1,595,300 at 2.75% interest with Green Campus Partners, LLC, to finance the purchase and installation of six solar photovoltaic electricity generation systems at six different sites in the City. Semiannual principal and interest payments of $65,236 are due each December 1 and June 1 through December 1, 2027.

Financed Purchase – 2025 Stryker EKG Monitor
On September 3, 2024, the City entered into an equipment purchase agreement in the amount of $357,243 at 5.64% interest with Stryker Sales, LLC to finance the purchase of a 2025 EKG Monitor. Monthly principal and interest payments of $6,309 were due starting January 1, 2025 through June 1, 2030.

Lease – 2025 Axon Police Equipment
On September 18, 2024, the City entered into a lease for the right to use police equipment in the amount of $781,484 at 3.16% interest with Axon. Annual principal and interest payments of $157,120 were due starting January 1, 2025 through January 1, 2029.

B. Business-Type Activities
2012 Recycling Facility Revenue Refunding Bonds
On September 19, 2012, the El Cerrito Public Financing Authority issued Recycling Facility Revenue Refunding Bonds in the original principal amount of $3,405,600 at 2.36% interest to provide for the refunding and retirement of the City's outstanding Recycling Center Lease Purchase Agreement and related Site Lease. Principal and interest payments are due quarterly on July 1, October 1, January 1, and April 1, through October 1, 2025. Repayment of these bonds is from charges for services received by the Integrated Waste Management Enterprise Fund.

Financed Purchase - Side Loader Trucks
On January 19, 2018, the City entered into an equipment purchase agreement in the amount of $551,498 at 2.887% interest with Capital One Public Funding, LLC, to finance the purchase of two trash trucks.

Semiannual principal and interest payments of $43,790 are due each July and January 19, through January 19, 2025. This financing ended during the fiscal year.

Agenda Packet Page 102 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Financed Purchase - Rear Loader Trucks
During the 2021-22 fiscal year, the City entered into an equipment purchase agreement in the amount of $500,216 at 3% interest with Capital One Public Funding, LLC, to finance the purchase of two rear loading trucks. Annual principal and interest payments of $94,006 are due each March through fiscal year 2026.

C. Debt Service Requirements
The following summarizes the City’s debt service requirements:

Year Ending Principal Interest Principal Interest
June 30 Payments Payments Payments Payments
2026 $ 1,243,191 $ 574,925 $ 236,585 $ 10,707
2027 1,261,169 525,029 87,685 6,321
2028 1,242,172 473,541 90,930 3,216
2029 1,225,901 422,575 - -
2030 1,122,211 370,145 - -
2031-2035 5,610,084 1,053,848 - -
2036-2040 1,225,000 54,375 - -
Total $ 12,929,728 $ 3,474,438 $ 415,200 $ 20,244
Governmental Activities Business-Type Activities
NOTE 7 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law. The general fund typically is used to liquidate pension liabilities for governmental funds.

Agenda Packet Page 103 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Classic PEPRA Classic PEPRA
Hire date Before 1/1/2012 1/1/2012 Before 1/1/2013 1/1/2013 Benefit formula 2.7% @ 55 2% @ 62 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 50-55 52-67 50 50-57
Monthly benefits as a % of eligible compensation 2% to 2.7% 1% to 2.5% 3% 2% to 2.7% Required employee contribution rates 8.00% 7.75% 9.00% 13.75% Required employer contribution rates 16.02% 7.90% 27.32% 13.76% Miscellaneous Safety
Employees Covered
At June 30, 2025, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety Total
Active 91 62 153
Transferred 75 53 128
Separated 103 22 125
Retired 168 145 313
Total 437 282 719
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2025, the City’s contributions were as follows:

Miscellaneous $ 3,116,130
Safety 7,148,153
Total Employer Contributions $ 10,264,283
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Governmental
Activities
Business-Type
Activities Total
Miscellaneous $ 20,694,483 $ 3,456,898 $ 24,151,381
Safety 58,981,551 - 58,981,551
Total Net Pension Liability $ 79,676,034 $ 3,456,898 $ 83,132,932 Agenda Packet Page 104 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2024, and the total pension liability for the Plans 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 Plans as of June 30, 2024 and 2025 was as follows:

Proportion
June 30, 2024 0.6753%
June 30, 2025 0.6855%
Change in Proportions 0.0102%
For the year ended June 30, 2025, the City recognized pension expense of $15,259,136.

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 of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$ 3,116,130 $ - $ 7,148,153 $ -
Changes in assumptions 620,741 - 1,453,184 -
2,088,108 81,477 4,813,418 156,505
- 1,253,069 - 889,299
3,063,438 - - 323,977
- - 4,241,265 -
$ 8,888,417 $ 1,334,546 $ 17,656,020 $ 1,369,781
Pension contributions subsequent to measurement date
Differences between expected and actual experiences
Change in employer's proportion
Miscellaneous Safety
Net differences between the employer's contributions
the employer’s proportionate share of contributions
Net differences between projected and actual earnings
on plan investments
Total
The City reported $10,264,283 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026.

Agenda Packet Page 105 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Ending: Misc Safety Total
2025 $ 1,320,015 $ 3,277,814 $ 4,597,829
2026 3,254,809 6,974,202 10,229,011
2027 100,647 100,252 200,899
2028 (237,730) (1,214,182) (1,451,912)
2029 - - -
Thereafter - - -
Total $ 4,437,741 $ 9,138,086 $ 13,575,827
Net Deferred Outflows (Inflows) of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial 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 2.75%
Projected Salary Increase (1)
Investment Rate of Return 6.90% (2)
Mortality (3)
(1) Varies by age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9 percent for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.

Therefore, the current 6.9 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.9 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical Agenda Packet Page 106 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the longterm expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New
Strategic Real Return
Asset Class Allocation Years 1 - 10 (a)
Global equity - cap-weighted 30.00% 4.54%
Global equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.30% used for this period.

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

Misc Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $ 34,269,499 $ 84,055,657 $ 118,325,156 Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability $ 24,151,381 $ 58,981,551 $ 83,132,932 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability $ 15,761,033 $ 38,371,207 $ 54,132,240 Agenda Packet Page 107 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See https://www.calpers.ca.gov/page/investments/about-investmentoffice/investment-financial-reports?stream=top.

NOTE 8 - COMMITMENTS AND CONTINGENCIES
Litigation
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. For Federal programs, the City did reach the level of qualifying expenditures during the current fiscal year that would require a single audit. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations.

Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year end.

Encumbrances outstanding as of June 30, 2025 totaled $8.99 million, which included $6.6 million for the Del Norte Complete Streets.

NOTE 9 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY

ACTIVITIES
Summary
In an effort to balance its budget, the State of California adopted ABxl 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities as of that date and dissolved redevelopment agencies effective February 1, 2012. In 2011, the City elected to serve as the former El Cerrito Redevelopment Agency’s Successor Agency to manage and wind down the affairs and obligations of the former Redevelopment Agency. Certain housing assets of the Redevelopment Agency were distributed to the City acting as the housing successor. All remaining Redevelopment Agency liabilities, debts and obligations were transferred to the Successor Agency.

In addition, ABxl 26 and AB1484 directed the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure Agenda Packet Page 108 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the redevelopment agency. The State Controller's Office completed its asset transfer review of the former Agency and released its final report in July 2014. The final report indicates the former Redevelopment Agency made unallowable transfers to the Municipal Services Corporation in fiscal years 2011 and 2012 totaling $12,550,551, consisting of cash of $2,382,232, land held for redevelopment of $4,634,789 and capital assets of $5,533,530. The City, Successor Agency and Corporation disagreed with the funding of the asset transfer review and maintained that the transactions in question between the former El Cerrito Redevelopment Agency and the Municipal Services Corporation were valid.

The activities of the Successor Agency are reported in the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. The Successor Agency’s Recognized Obligations Payment Schedule (ROPS) was reviewed until 2018 by a local Oversight Board. The local Oversight Board was dissolved in 2018 and was replaced by a countywide Oversight Board.

Commitments and Contingencies
Cooperation Agreement with the El Cerrito Municipal Services Corporation Prior to dissolution of the El Cerrito Redevelopment Agency, the Agency entered into a Cooperation Agreement with the City that was subsequently assigned to the El Cerrito Municipal Services Corporation (MSC). Under the terms of the Agreement, the Agency transferred to the MSC certain properties and funds to be used for redevelopment purposes and the Agency also agreed to provide funds to the MSC in the future in return for the MSC completing redevelopment activities. The Successor Agency has listed the Cooperation Agreement on its Recognized Obligation Payment Schedule, which have been approved by the Oversight Board. However, no post-dissolution payments have been made since the State Department of Finance has consistently denied that this Cooperation Agreement is an enforceable obligation of the Successor Agency.

State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi- annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time.

State Asset Transfer Review
The State Controller's Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January l, 2011. The State Controller's Office completed its asset transfer review of the former Agency and released its final report in July 2014. The final report indicated the former Redevelopment Agency made unallowable transfers to the Municipal Services Corporation in fiscal years 2011 and 2012 totaling $12,550,551, consisting of cash of $2,382,232, land held for redevelopment of $4,634,789 and capital assets of $5,533,530. These transfers were deemed unallowable by the Department of Finance, disputed by the City, Successor Agency and Corporation, and subject to litigation. In 2015, the Successor Agency received a "finding of completion" from the Department of Finance confirming that the Successor Agency had fulfilled its requirement to pay back the unallowable cash transfers by entering into an Installment Payment Plan thereby entitling the Successor Agency to prepare a Long-Range Property Agenda Packet Page 109 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Management Plan (LRPMP) for Oversight Board and DOF approval. Also, in 2015 the Successor Agency prepared the LRPMP which was approved by the DOF directing the properties be transferred back to the City for disposition and development. In fiscal year 2019, consistent with the approved LRPMP, the City entered into a Compensation Agreement with each of the Affected Taxing Entities as required by the approved LRPMP. Per the Compensation Agreement the City sold the Mayfair block and Eastshore block and Potrero properties for development, at Fair Market Value or Fair Reuse Value.

The net proceeds were distributed by the Auditor-Controller to the Taxing Entities in proportion to their shares of the Base Property Tax less any outstanding amount of enforceable obligation related to the properties.

Due Diligence Reviews
AB1484 required the Successor Agency to complete two Due Diligence Reviews (DDR) to determine the amount of the remaining assets that should be transferred by the City to the Successor Agency or by the Successor Agency to the County for distribution to the affected taxing entities.

In April 2013, the State Department of Finance (DOF) completed its review of the DDR of the Low and Moderate Housing Fund's cash balance available for allocation to the affected taxing entities. The DDR indicated the Successor Agency had no unencumbered balances in the Low and Moderate Income Housing Fund for distribution to the affected taxing entities In June 2013, the DOF completed its review of the DDR of all other funds of the former Redevelopment Agency. The DDR indicated there were no assets available for allocation to the affected taxing entities, but that amount was adjusted by the DOF to $1,981,989. In addition, the DOF demanded the City reverse $10,168,319 of property conveyances executed in fiscal year 2012 and a payment of $400,243 of bond proceeds to the Corporation.

The City, Successor Agency and Corporation disputed the adjustments and demand and filed suit against the DOF and the Contra Costa County Auditor Controller challenging the DOF's adjustments to the DDR and other demands. On September 3, 2014, the Court ruled against the City, Successor Agency and Corporation regarding the transfers and the cooperation agreement. The City, Successor Agency and Corporation appealed the decision. Thereafter, as described above, in September 2015, the City, Successor Agency, and DOF entered into an Installment Payment Plan Agreement for the repayment of the OFA DDR amounting to $1,981,989 and the total amount of cash that the DOF claimed was owed was fully paid in 2018.

The Court of Appeals heard oral arguments on January 19, 2021 and subsequently denied the appeal. The City decided not to litigate any further and as a result, the City wrote off the General Fund Advance to the Successor Agency in the amount of $1,321,189.

Long-term Liabilities
The Successor Agency assumed the long-term debt, notes and loans of the Redevelopment Agency as of February 2012.

As of June 30, 2025, the Successor Agency’s long-term liabilities included the following long-term debt:

Due
Within One
Successor Agency Debt Beginning Additions Deletions Ending Year 2016 Revenue Refunding Bond $ 3,105,909 $ - $ 2,057,667 $ 1,048,242 $ 1,048,242 Agenda Packet Page 110 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
2016 Refunding Tax Allocation Bonds
On August 3, 2016, the Successor Agency to the El Cerrito Redevelopment Agency issued Series 2016 Tax Allocation Refunding Bonds in the amount of $12,330,710. The proceeds from the bonds were used to refund the Series 1997A Tax Allocation Refunding Bonds and Series 2004 A and B Tax Allocation Bonds. Bonds issued in the amount of $8,979,727 are tax-exempt. The economic gain on refunding was $83,000, and the deferred amount resulting from the refunding was considered to be immaterial to the financial statements and expensed during the year. Debt service requirements are summarized as follows:

Year Ending Principal Interest
June 30 Payments Payments Total
2026 $ 1,048,242 $ 13,155 $ 1,061,397
NOTE 10 - RISK MANAGEMENT
Municipal Pooling Authority (MPA)
The City is a member of the Municipal Pooling Authority of Northern California. The Authority provides coverage against the following types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies as follows:

Type of Coverage Limits
Liability ($5,000) $ 34,000,000
Vehicle - Physical Damage ($3,000 for police vehicles $2,000 for all others) $ 250,000 Worker's Compensation (no deductible) Stat. Limit
Property:

All Risk ($25,000) $ 1,000,000,000
Flood* $ 25,000,000
Boiler & Machinery ($10,000)** $ 100,000,000
Cyber Liability ($50,000) $ 2,000,000
Public Entity Pollution Liability ($100,000) $ 2,000,000 Government Crime Policy ($2,500) $ 5,000,000
* $100,000 minimum deductible per occurrence, except Zone A & V which are subject to a $250,000 deductible per occurrence **Depending on size/power of boiler or machinery.

The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the MPA, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.

The City's deposits with the MPA are in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Audited financial statements for the Authority are available from MPA, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

Agenda Packet Page 111 of 324
City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2025
Equipment
The City has a commercial insurance policy which provides physical loss or damage coverage, for certain fire trucks, refuse trucks and other similar equipment, up to a maximum of $5,438,780. The City has a deductible or uninsured liability of $5,000 to $50,000 per claim, depending on the equipment insured.

Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments, including a provision for claims incurred but not reported when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable.

There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years. Settlements have not exceeded insurance in the past three fiscal years.

Agenda Packet Page 112 of 324
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Agenda Packet Page 113 of 324

REQUIRED SUPPLEMENTARY

INFORMATION
Agenda Packet Page 114 of 324
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Agenda Packet Page 115 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ 34,827,302 $ 34,827,302 $ 36,217,428 $ 1,390,126 Licenses and permits 1,007,000 1,007,000 1,414,521 407,521 Fines and forfeitures 130,000 130,000 198,860 68,860
Intergovernmental 5,214,401 5,214,401 5,964,717 750,316 Use of money and property 570,000 570,000 616,575 46,575 Charges for Services 9,444,070 9,754,605 9,495,474 (259,131) Other Revenue 190,000 190,000 226,257 36,257
Total Revenues 51,382,773 51,693,308 54,133,832 2,440,524

EXPENDITURES
Current:

General government 7,667,983 7,971,500 7,764,023 207,477 Public works 2,463,131 2,786,045 2,316,028 470,017
Recreation 6,601,235 6,903,467 6,383,344 520,123
Community development 3,897,923 4,168,728 3,846,961 321,767 Public Safety 29,703,351 30,476,789 30,964,493 (487,704) Capital outlay 71,179 71,179 226,373 (155,194)
Debt service
Principal retirement 172,987 172,987 215,408 (42,421)
Interest 16,375 16,375 16,375 -
Total Expenditures 50,594,164 52,567,070 51,733,005 834,065 Excess (Deficiency) of Revenues over Expenditures 788,609 (873,762) 2,400,827 3,274,589

OTHER FINANCING SOURCES (USES)
Debt issuance - - 211,001 211,001
Transfers in 3,671 3,671 3,671 -
Transfers out (758,329) (1,258,329) (1,258,329) -
Total Other Financing Sources (Uses) (754,658) (1,254,658) (1,043,657) - Net Change in Fund Balance 33,951 (2,128,420) 1,357,170 3,274,589 Fund Balance Beginning 22,893,338 22,893,338 22,893,338 - Fund Balance Ending $ 22,927,289 $ 20,764,918 $ 24,250,508 $ 3,274,589 Annually, the City Manager submits to the City Council a proposed operating budget in June for the following fiscal year, as required by the City's budget ordinance. This budget includes proposed expenditures and the revenues expected to finance them.

As modified during public study sessions, the preliminary budget becomes the proposed budget. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. The City Manager is authorized to transfer budgeted amounts within departments within funds. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. Budget modifications between funds or increases or decreases to a fund's overall budget must be approved by the City Council. The legal level of budgetary control is at the fund level. Budgets are adopted on a basis consistent with generally accepted accounting principles. Unexpended appropriations lapse at year end and must be reappropriated in the following year. Budgeted amounts are as originally adopted, or as amended by the City Council. Expenditures in excess of appropriations were covered by budgets in other objects/functions or beginning fund balance.

Agenda Packet Page 116 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Low/Mod Income Housing Asset Special Revenue Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - $ - $ 26,252 $ 26,252
Total Revenues - - 26,252 26,252

EXPENDITURES
Current:

Community development 35,000 35,033 14,746 20,287
Total Expenditures 35,000 35,033 14,746 20,287
Net Change in Fund Balance (35,000) (35,033) 11,506 46,539 Fund Balance Beginning 5,281,952 5,281,952 5,281,952 -
Prior Period Adjustments - deferred loans - - - -
Fund Balance Beginning, as Adjusted 5,281,952 5,281,952 5,281,952 - Fund Balance Ending $ 5,246,952 $ 5,246,919 $ 5,293,458 $ 46,539 Agenda Packet Page 117 of 324
City of City of El Cerrito
Schedule of Pension Contributions
June 30, 2025
(Last Ten Years)
Miscellaneous Plan
Fiscal Year 2016 2017 2018 2019 2020
Contractually Required Contributions $ 1,444,945 $ 1,615,318 $ 1,780,664 $ 1,973,155 $ 2,264,141 Contributions in Relation to Actuarially
Determined Contributions 1,444,945 1,615,318 1,780,664 1,973,692 2,264,141 Contribution Deficiency (Excess) $ - $ - $ - $ (537) $ - Covered Payroll $ 5,610,928 $ 6,212,072 $ 6,651,088 $ 6,927,987 $ 7,523,515 Contrib. as a % of Covered Payroll 25.75% 26.00% 26.77% 28.49% 30.09% Fiscal Year 2021 2022 2023 2024 2025
Contractually Required Contributions $ 2,343,260 $ 2,510,701 $ 2,734,433 $ 2,834,556 $ 3,116,130 Contributions in Relation to Actuarially
Determined Contributions 2,343,260 2,510,701 2,734,433 2,834,556 3,116,130 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 6,607,688 $ 6,505,147 $ 7,095,314 $ 8,034,133 $ 8,735,374 Contrib. as a % of Covered Payroll 35.46% 38.60% 38.54% 35.28% 35.67% Safety Plan
Fiscal Year 2016 2017 2018 2019 2020
Contractually Required Contributions $ 3,142,334 $ 3,497,289 $ 3,927,298 $ 4,378,562 $ 4,930,336 Contributions in Relation to Actuarially
Determined Contributions 3,142,334 3,497,289 3,927,298 4,379,650 4,930,336 Contribution Deficiency (Excess) $ - $ - $ - $ (1,088) $ - Covered Payroll $ 9,063,604 $ 9,597,134 $ 10,327,301 $ 10,308,155 $ 10,389,710 Contrib. as a % of Covered Payroll 34.67% 36.44% 38.03% 42.49% 47.45% Fiscal Year 2021 2022 2023 2024 2025
Contractually Required Contributions $ 5,370,170 $ 5,737,722 $ 6,124,456 $ 6,510,917 $ 7,148,153 Contributions in Relation to Actuarially
Determined Contributions 5,370,170 5,737,722 6,124,456 6,510,917 7,148,153 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 10,283,491 $ 9,659,674 $ 5,930,384 $ 7,075,249 $ 7,607,925 Contrib. as a % of Covered Payroll 52.22% 59.40% 103.27% 92.02% 93.96% Notes to Schedule:

Valuation Date: June 30, 2023
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing

3.7 Years Remaining Amortization Period
Inflation Assumed at 2.3%
Investment Rate of Returns set at 7.15%
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, then decreased from 7.65% to 7.15% in fiscal year 2018 and decrease from 7.15% to 6.90% in 2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2019.

CalPERS mortality table based on CalPERS' experience and include Agenda Packet Page 118 of 324
City of City of El Cerrito
Schedule of Proportionate Share of Net Pension Liability June 30, 2025
(Last Ten Years)
Miscellaneous Plan
Fiscal Year 2016 2017 2018 2019 2020
Measurement Date 2015 2016 2017 2018 2019
Proportion of Net Pension Liability 0.2136% 0.3426% 0.3385% 0.3338% 0.3324% Proportionate Share of Net Pension Liability $ 14,658,502 $ 17,070,890 $ 19,118,301 $ 18,768,312 $ 19,855,450 Covered Payroll $ 5,561,436 $ 5,610,928 $ 6,212,072 $ 6,651,088 $ 6,927,987 NPL as a % of Covered Payroll 263.57% 304.24% 307.76% 282.18% 286.60% Fiscal Year 2021 2022 2023 2024 2025
Measurement Date 2020 2021 2022 2023 2024
Proportion of Net Pension Liability 0.3346% 0.3333% 0.3253% 0.3196% 0.3137% Proportionate Share of Net Pension Liability $ 20,881,385 $ 14,569,087 $ 23,378,038 $ 24,459,499 $ 24,151,381 Covered Payroll $ 7,523,515 $ 6,607,688 $ 6,505,147 $ 7,095,314 $ 8,034,133 NPL as a % of Covered Payroll 277.55% 220.49% 359.38% 344.73% 300.61% Safety Plan
Fiscal Year 2016 2017 2018 2019 2020
Measurement Date 2015 2016 2017 2018 2019
Proportion of Net Pension Liability 0.4565% 0.6242% 0.6181% 0.6181% 0.6116% Proportionate Share of Net Pension Liability $ 31,333,605 $ 37,772,767 $ 42,656,830 $ 43,088,187 $ 45,977,250 Covered Payroll $ 8,802,299 $ 9,063,604 $ 9,597,134 $ 10,327,301 $ 10,308,155 NPL as a % of Covered Payroll 355.97% 416.75% 444.47% 417.23% 446.03% Fiscal Year 2021 2022 2023 2024 2025
Measurement Date 2020 2021 2022 2023 2024
Proportion of Net Pension Liability 0.6118% 0.6012% 0.6033% 0.5948% 0.5905% Proportionate Share of Net Pension Liability $ 49,493,039 $ 34,381,303 $ 56,148,886 $ 59,781,530 $ 58,981,551 Covered Payroll $ 10,389,710 $ 10,283,491 $ 9,659,674 $ 5,930,384 $ 7,075,249 NPL as a % of Covered Payroll 476.37% 334.33% 581.27% 1008.05% 833.63% Notes to Schedule:

The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65% to 7.15% in fiscal year 2018 and decrease from 7.15% to 6.90% in 2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2019.

Agenda Packet Page 119 of 324

SUPPLEMENTARY INFORMATION
Agenda Packet Page 120 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Street Improvement Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ 2,229,000 $ 2,229,000 $ 2,154,856 $ (74,144) Use of money and property - 45,831 260,563 214,732
Other Revenue 5,000 5,000 10,132 5,132
Total Revenues 2,234,000 2,279,831 2,425,551 145,720

EXPENDITURES
Current:

General government 6,570 6,570 6,035 535
Public works 128,874 128,951 119,842 9,109
Capital outlay 3,125,000 3,145,800 267,951 2,877,849
Total Expenditures 3,260,444 3,281,321 393,828 2,887,493 Excess (Deficiency) of Revenues over Expenditures (1,026,444) (1,001,490) 2,031,723 3,033,213

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (702,500) (702,500) (702,500) -
Total Other Financing Sources (Uses) (702,500) (702,500) (702,500) - Net Change in Fund Balance (1,728,944) (1,703,990) 1,329,223 3,033,213 Fund Balance Beginning 3,868,662 3,868,662 3,868,662 -
Fund Balance Ending $ 2,139,718 $ 2,164,672 $ 5,197,885 $ 3,033,213 Agenda Packet Page 121 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Capital Improvement Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ - $ 200,000 $ 66,143 $ (133,857) Intergovernmental 1,930,000 1,930,000 3,972,713 2,042,713 Use of money and property - - 10,784 10,784
Other Revenue - - 138,002 138,002
Total Revenues 1,930,000 2,130,000 4,187,642 2,057,642

EXPENDITURES
Capital outlay 2,140,000 13,150,940 6,104,765 7,046,175 Total Expenditures 2,140,000 13,150,940 6,104,765 7,046,175 Excess (Deficiency) of Revenues over Expenditures (210,000) (11,020,940) (1,917,123) 9,103,817

OTHER FINANCING SOURCES (USES)
Transfers in 40,000 540,000 540,000 -
Transfers out - - - -
Total Other Financing Sources (Uses) 40,000 540,000 540,000 - Net Change in Fund Balance (170,000) (10,480,940) (1,377,123) 9,103,817 Fund Balance Beginning 104,631 104,631 104,631 -
Fund Balance Ending $ (65,369) $ (10,376,309) $ (1,272,492) $ 9,103,817 Agenda Packet Page 122 of 324
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Agenda Packet Page 123 of 324

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Gas Tax Fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Section 2105, 2106, 2107, and 2107.5. The allocations must be spent for street maintenance and construction and a limited amount for engineering.

National Pollution Discharge Elimination System Fund accounts for storm water utility fees assessed to property owners citywide on their property tax bills. The funds are used to pay for the "National Pollution Discharge Elimination System" mandated by the Federal government to prevent further polluting of our streams and bays.

Landscape and Lighting Assessment Fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Districts and disburses funds in accordance with the provisions of the State of California Streets and Highway Code.

Measure A Parcel Tax Fund accounts for the use of the voter-approved special tax to be used for the swim center and park capital project.

Measure H Parcel Tax Parks and Recreation Facilities Fund accounts for the use of voter-approved special tax for the maintenance and enhancement of parks and recreation facilities including the Swim Center, playgrounds, open space and trails, park amenities, community center and clubhouses.

Asset Seizure Fund accounts for revenues received from sale of assets seized during drug-related arrests and disburses these funds for authorized public safety activities.

Vehicle Abatement Fund accounts for revenues received from Vehicle Code Section 9250.7 to administer and operate the local vehicle abatement program.

Park In Lieu Fund accounts for funds received through negotiations with developers to be used for park improvements.

SB-1 Road Repair and Accountability Fund accounts for Senate Bill 1 (SB1) with the aim of repairing roads, improving traffic safety and expanding public transit systems.

Public Art Fund accounts for fees related to development that is committed to art in public places.

Measure J Paratransit Fund accounts for the portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.

Municipal Services Corporation Special Revenue Fund accounts for the activities of the El Cerrito Municipal Services Corporation, a nonprofit corporation established to assist the City with public communications and financing of public improvements and later with the elimination of community blight and deterioration within the City.

City Housing Special Revenue Fund accounts for housing-related grants and special revenues, such as developer deposits, that are restricted for affordable housing purposes, but are not activities or assets of the Housing Successor.

Federal, State, and Local Grants Fund Special Revenue Fund accounts for revenues and expenditures related to grants from other governmental agencies.

Agenda Packet Page 124 of 324

NONMAJOR GOVERNMENTAL FUNDS
Debt Service Fund
Public Financing Authority Debt Service Fund accounts for principal and interest payments on lease revenue bonds issued by the City of El Cerrito Public Financing Authority.

Capital Projects Funds
Measure J Fund accounts for the portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.

Storm Drain Fund accounts for assessments collected and funds expended for the maintenance and upgrade of the storm drains.

Agenda Packet Page 125 of 324
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
National Measure H
Pollution Landscape Measure A Parcel Tax
Gas Discharge and Lighting Parcel Parks & Rec
Tax Elimination Assement Tax Facilities
Fund System Fund Fund Fund Fund
ASSETS
Cash and investments $ 442,026 $ 538,935 $ 192,250 -$ 540,966 $ Accounts receivable - 16,908 13,997 - -
Interest receivable - - - - -
Due from other governments 62,019 - - - -
Prepaid items and other assets - - - - -
Loans receivable - - - - -
Total assets $ 504,045 $ 555,843 $ 206,247 -$ 540,966 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 22,992 $ 5,091 $ 82,607 -$ $ 60,159
Accrued liabilities 7,374 5,675 4,487 - -
Deposits payable - - - - -
Due to other funds - - - - -
Unearned revenue - 16,908 - - -
Total liabilities 30,366 27,674 87,094 - 60,159
Deferred Inflows of Resources:

Unavailable revenues - - - - -
Fund Balances:

Restricted:

Redevelopment - - - - -
Debt service - - - - -
Street improvements 473,679 - 119,153 - -
Transportation - - - - -
Public safety - police - - - - -
Public safety - vehicle abatement - - - - -
Parks and recreation - - - - 480,807
Storm drains - 528,169 - - -
Public art - - - - -
Housing - - - - -
Total fund balances 473,679 528,169 119,153 - 480,807
Total liabilities and fund balances $ 504,045 $ 555,843 $ 206,247 $ - $ 540,966 Cont'd
Special Revenue Funds
Agenda Packet Page 126 of 324
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Due from other governments
Prepaid items and other assets
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Total fund balances
Total liabilities and fund balances
$ 380,295 $ 395,625 $ 187,287 $ 1,352,506 $ 175,248
- - - 22,403 -
- - - - -
- - - 124,930 -
- - - - -
- - - - -
$ 380,295 $ 395,625 $ 187,287 $ 1,499,839 $ 175,248
-$ $ 28,309 -$ 157,176 $ -$
- - - - -
75,820 - - - -
- - - - -
- - - - -
75,820 28,309 - 157,176 -
- - - - -
- - - - -
- - - - -
- - - 1,342,663 -
- - - - -
304,475 - - - -
- 367,316 - - -
- - 187,287 - -
- - - - -
- - - - 175,248
- - - - -
304,475 367,316 187,287 1,342,663 175,248
$ 380,295 $ 395,625 $ 187,287 $ 1,499,839 $ 175,248
Cont'd
SB1-Road
Repair &
Accountability
Fund
Special Revenue Funds
Asset Seizure
Fund
Vehicle
Abatement
Fund
Park In Lieu
Fund
Public Art
Fund
Agenda Packet Page 127 of 324
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Due from other governments
Prepaid items and other assets
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Total fund balances
Total liabilities and fund balances
Federal
State and
Local
Grants
Fund
$ 747,216 $ 379,804 $ - $ 568,576
22,560 31,713 22,949 5,155
- - - 184,881
- - - -
1,437 - - 21,870
- - 3,980,000 -
$ 771,213 $ 411,517 $ 4,002,949 $ 780,482
$ 1,624 $ 37,964 $ - $ 45,713
1,265 - - 12,780
- 316,963 25,000 113,782
- - - 76,948
385 - - 61,266
3,274 354,927 25,000 310,489
- - 22,950 184,881
- 56,590 - 285,112
- - - -
- - - -
767,939 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 3,954,999 -
767,939 56,590 3,954,999 285,112
$ 771,213 $ 411,517 $ 4,002,949 $ 780,482
Cont'd
Measure J
Paratransit Fund
Municipal Services
Corp Fund
City Housing Trust
Fund
Special Revenue Funds
Agenda Packet Page 128 of 324
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Due from other governments
Prepaid items and other assets
Loans receivable
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Fund Balances:

Restricted:

Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Total fund balances
Total liabilities and fund balances
Debt
Service
Public Total
Finance Nonmajor
Authority Governmental
Fund Funds
$ 6,020 $ 194,896 $ 655,893 $ 6,757,543
- 609,279 - 744,964
- - - 184,881
- - - 186,949
112,577 - - 135,884
- - - 3,980,000
$ 118,597 $ 804,175 $ 655,893 $ 11,990,221
$ - $ 14,296 $ 53,055 $ 508,986
- 3,505 8,705 43,791
- - - 531,565
41,081 - - 118,029
- - - 78,559
41,081 17,801 61,760 1,280,930
- - - 207,831
- - - 341,702
77,516 - - 77,516
- - - 1,935,495
- 786,374 - 1,554,313
- - - 304,475
- - - 367,316
- - - 668,094
- - 594,133 1,122,302
- - - 175,248
- - - 3,954,999
77,516 786,374 594,133 10,501,460
$ 118,597 $ 804,175 $ 655,893 $ 11,990,221
Concluded
Capital Projects Funds
Measure J Fund Storm Drain Fund
Agenda Packet Page 129 of 324
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
National Measure H
Pollution Landscape Measure A Parcel Tax
Gas Discharge and Lighting Parcel Parks & Rec
Tax Elimination Assement Tax Facilities
Fund System Fund Fund Fund Fund

REVENUES
Taxes and assessments -$ -$ 782,146 $ -$ 640,578 $
Intergovernmental 731,460 269,507 13,997 - -
Use of money and property 25,927 24,158 6,969 26,854 24 Charges for services - - - - -
Other Revenue - 219,440 6,274 - -
Total Revenues 757,387 513,105 809,386 667,432 24

EXPENDITURES
Current:

General government - - - - -
Public works 645,673 353,800 820,288 3,817 537,359
Recreation - - 83,242 - 51,695
Community development - - - - -
Public safety - - - - -
Capital outlay - - - - 51,634
Debt service:

Principal - - - - -
Interest - - - - -
Total Expenditures 645,673 353,800 903,530 3,817 640,688 Excess (Deficiency) of Revenues over Expenditures 111,714 159,305 (94,144) (3,793) 26,744

OTHER FINANCING SOURCES (USES)
Debt issuance - - - - -
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 111,714 159,305 (94,144) (3,793) 26,744 Fund Balances Beginning 361,965 368,864 213,297 3,793 454,063 Fund Balances Ending $ 473,679 $ 528,169 $ 119,153 -$ 480,807 $ Cont'd
Special Revenue Funds
Agenda Packet Page 130 of 324
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
-$ -$ -$ -$ $ 62,670
- 8,349 - 72,643 -
- - - 708,942 8,633
- - - - -
- - 187,287 7,845 -
- 8,349 187,287 789,430 71,303
- - - - -
- - - 231,277 -
- - - - -
- - - - 26,384
17,823 36,063 - - -
- - - 595,358 -
- - - - -
- - - - -
17,823 36,063 - 826,635 26,384
(17,823) (27,714) 187,287 (37,205) 44,919
- - - -
- - - - -
- - - - (12,000)
- - - - (12,000)
(17,823) (27,714) 187,287 (37,205) 32,919
322,298 395,030 - 1,379,868 142,329
$ 304,475 $ 367,316 $ 187,287 $ 1,342,663 $ 175,248
Cont'd
Special Revenue Funds
Asset Seizure
Fund
Vehicle
Abatement
Fund
Park In Lieu
Fund
SB1-Road
Repair &
Accountability
Fund
Public Art
Fund
Agenda Packet Page 131 of 324
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Federal
State and
Local
Grants
Fund
$ 221,759 $ - $ - $ -
- - 969,999 271,399
42,159 22,003 - 23,435
6,371 95,384 - -
- - - 56,223
270,289 117,387 969,999 351,057
- - - 44,813
- 108,821 - 4,793
113,299 - - 107,495
- 549 - 165,537
- - - 160,651
- - - 570,483
- - - 114,698
- - - -
113,299 109,370 - 1,168,470
156,990 8,017 969,999 (817,413)
- - - 570,483
- - - 74,000
- - - (12,000)
- - - 632,483
156,990 8,017 969,999 (184,930)
610,949 48,573 2,985,000 470,042
$ 767,939 $ 56,590 $ 3,954,999 $ 285,112
Cont'd
Special Revenue Funds
Measure J
Paratransit Fund
Municipal Services
Corp Fund
City Housing Trust
Fund
Agenda Packet Page 132 of 324
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Debt
Service
Public Total
Finance Nonmajor
Authority Governmental
Fund Funds
$ - $ 609,279 $ 701,620 $ 3,018,052
- - - 2,337,354
- 18,407 37,943 945,454
- 1,287 - 103,042
- - - 477,069
- 628,973 739,563 6,880,971
- - - 44,813
- 456,393 489,126 3,651,347
- - - 355,731
- - - 192,470
- - - 214,537
- 4,632 750,942 1,973,049
720,000 - - 834,698
552,841 - - 552,841
1,272,841 461,025 1,240,068 7,819,486
(1,272,841) 167,948 (500,505) (938,515)
- - - 570,483
1,325,829 - - 1,399,829
- (40,000) - (64,000)
1,325,829 (40,000) - 1,906,312
52,988 127,948 (500,505) 967,797
24,528 658,426 1,094,638 9,533,663
$ 77,516 $ 786,374 $ 594,133 $ 10,501,460
Concluded
Capital Projects Funds
Measure J Fund Storm Drain Fund
Agenda Packet Page 133 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ - $ - $ - $ -
Intergovernmental 717,882 717,882 731,460 13,578
Use of money and property - - 25,927 25,927
Charges for services - - - -
Other Revenue - - - -
Total Revenues 717,882 717,882 757,387 39,505

EXPENDITURES
Current:

General government - - - -
Public works 727,848 751,322 645,673 105,649
Recreation - - - -
Community development - - - -
Public safety - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures 727,848 751,322 645,673 105,649
Excess (Deficiency) of Revenues over Expenditures (9,966) (33,440) 111,714 145,154

OTHER FINANCING SOURCES (USES)
Debt issuance - - - -
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (9,966) (33,440) 111,714 145,154 Fund Balances Beginning, as Adjusted 361,965 361,965 361,965 - Fund Balances Ending $ 351,999 $ 328,525 $ 473,679 $ 145,154 Cont'd
Gas Tax Fund
Budgeted Amounts
Agenda Packet Page 134 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
298,686 298,686 269,507 (29,179)
- - 24,158 24,158
- - - -
- - 219,440 219,440
298,686 298,686 513,105 214,419
- - - -
427,165 429,110 353,800 75,310
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
427,165 429,110 353,800 75,310
(128,479) (130,424) 159,305 289,729
- - - -
- - - -
- - - -
- - - -
(128,479) (130,424) 159,305 289,729
368,864 368,864 368,864 -
$ 240,385 $ 238,440 $ 528,169 $ 289,729
Cont'd
National Pollution Discharge Elimination System Fund
Budgeted Amounts
Agenda Packet Page 135 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 789,300 $ 789,300 $ 782,146 $ (7,154)
10,500 10,500 13,997 3,497
- - 6,969 6,969
- - - -
1,040 1,040 6,274 5,234
800,840 800,840 809,386 8,546
- - - -
819,014 821,654 820,288 1,366
96,819 96,819 83,242 13,577
- - - -
- - - -
- - - -
- - - -
- - - -
915,833 918,473 903,530 14,943
(114,993) (117,633) (94,144) 23,489
- - - -
- - - -
- - - -
- - - -
(114,993) (117,633) (94,144) 23,489
213,297 213,297 213,297 -
$ 98,304 $ 95,664 $ 119,153 $ 23,489
Cont'd
Landscape and Lighting Assement Fund
Budgeted Amounts
Agenda Packet Page 136 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - 24 24
- - - -
- - - -
- - 24 24
- - - -
- - 3,817 (3,817)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 3,817 (3,817)
- - (3,793) (3,793)
- - - -
- - - -
- - - -
- - - -
- - (3,793) (3,793)
3,793 3,793 3,793 -
$ 3,793 $ 3,793 $ - $ (3,793)
Cont'd
Measure A Parcel Tax Fund
Budgeted Amounts
Agenda Packet Page 137 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 647,000 $ 647,000 $ 640,578 $ (6,422)
- - - -
- - 26,854 26,854
- - - -
- - - -
647,000 647,000 667,432 20,432
- - - -
737,304 770,342 537,359 232,983
110,000 116,454 51,695 64,759
- - - -
- - - -
50,000 51,635 51,634 1
- - - -
- - - -
897,304 938,431 640,688 297,743
(250,304) (291,431) 26,744 318,175
- - - -
- - - -
- - - -
- - - -
(250,304) (291,431) 26,744 318,175
454,063 454,063 454,063 -
$ 203,759 $ 162,632 $ 480,807 $ 318,175
Cont'd
Measure H Parcel Tax Parks & Rec Facilities Fund
Budgeted Amounts
Agenda Packet Page 138 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
75,000 75,000 17,823 57,177
- - - -
- - - -
- - - -
75,000 75,000 17,823 57,177
(75,000) (75,000) (17,823) 57,177
- - - -
- - - -
- - - -
- - - -
(75,000) (75,000) (17,823) 57,177
322,298 322,298 322,298 -
$ 247,298 $ 247,298 $ 304,475 $ 57,177
Cont'd
Budgeted Amounts
Asset Seizure Fund
Agenda Packet Page 139 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
8,000 8,000 8,349 349
- - - -
- - - -
- - - -
8,000 8,000 8,349 349
- - - -
- - - -
- - - -
- - - -
200,000 200,000 36,063 163,937
- - - -
- - - -
- - - -
200,000 200,000 36,063 163,937
(192,000) (192,000) (27,714) 164,286
- - - -
- - - -
- - - -
- - - -
(192,000) (192,000) (27,714) 164,286
395,030 395,030 395,030 -
$ 203,030 $ 203,030 $ 367,316 $ 164,286
Cont'd
Vehicle Abatement Fund
Budgeted Amounts
Agenda Packet Page 140 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - 187,287 187,287
- - 187,287 187,287
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 187,287 187,287
- - - -
- - - -
- - - -
- - - -
- - 187,287 187,287
- - - -
$ - $ - $ 187,287 $ 187,287
Cont'd
Park In Lieu Fund
Budgeted Amounts
Agenda Packet Page 141 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - 72,643 72,643
663,891 663,891 708,942 45,051
- - - -
- - 7,845 7,845
663,891 663,891 789,430 125,539
- - - -
261,484 264,442 231,277 33,165
- - - -
- - - -
- - - -
675,500 1,121,413 595,358 526,055
- - - -
- - - -
936,984 1,385,855 826,635 559,220
(273,093) (721,964) (37,205) 684,759
- - - -
- - - -
- - - -
- - - -
(273,093) (721,964) (37,205) 684,759
1,379,868 1,379,868 1,379,868 -
$ 1,106,775 $ 657,904 $ 1,342,663 $ 684,759
Cont'd
SB1-Road Repair & Accountability Fund
Budgeted Amounts
Agenda Packet Page 142 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ 62,670 $ 62,670
- - - -
- - 8,633 8,633
- - - -
- - - -
- - 71,303 71,303
- - - -
- - - -
- - - -
50,000 50,000 26,384 23,616
- - - -
- - - -
- - - -
- - - -
50,000 50,000 26,384 23,616
(50,000) (50,000) 44,919 94,919
- - - -
- - - -
- - (12,000) (12,000)
- - (12,000) (12,000)
(50,000) (50,000) 32,919 82,919
142,329 142,329 142,329 -
$ 92,329 $ 92,329 $ 175,248 $ 82,919
Cont'd
Public Art Fund
Budgeted Amounts
Agenda Packet Page 143 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 261,720 $ 261,720 $ 221,759 $ (39,961)
- - - -
- - 42,159 42,159
10,000 10,000 6,371 (3,629)
- - - -
271,720 271,720 270,289 (1,431)
- - - -
- - - -
359,966 360,680 113,299 247,381
- - - -
- - - -
- - - -
- - - -
- - - -
359,966 360,680 113,299 247,381
(88,246) (88,960) 156,990 245,950
- - - -
- - - -
- - - -
- - - -
(88,246) (88,960) 156,990 245,950
610,949 610,949 610,949 -
$ 522,703 $ 521,989 $ 767,939 $ 245,950
Cont'd
Measure J Paratransit Fund
Budgeted Amounts
Agenda Packet Page 144 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - 22,003 22,003
- - 95,384 95,384
- - - -
- - 117,387 117,387
- - - -
108,822 108,822 108,821 1
- - - -
- - 549 (549)
- - - -
- - - -
- - - -
- - - -
108,822 108,822 109,370 (548)
(108,822) (108,822) 8,017 116,839
- - - -
- - - -
- - - -
- - - -
(108,822) (108,822) 8,017 116,839
48,573 48,573 48,573 -
$ (60,249) $ (60,249) $ 56,590 $ 116,839
Cont'd
Municipal Services Corp Fund
Budgeted Amounts
Agenda Packet Page 145 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - 969,999 969,999
- - - -
- - - -
- - - -
- - 969,999 969,999
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 969,999 969,999
- - - -
- - - -
- - - -
- - - -
- - 969,999 969,999
2,985,000 2,985,000 2,985,000 -
$ 2,985,000 $ 2,985,000 $ 3,954,999 $ 969,999
Cont'd
Budgeted Amounts
City Housing Trust Fund
Agenda Packet Page 146 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
1,260,000 1,260,000 271,399 (988,601)
- - 23,435 23,435
- - - -
167,000 167,000 56,223 (110,777)
1,427,000 1,427,000 351,057 (1,075,943)
- 75,000 44,813 30,187
- - 4,793 (4,793)
100,000 145,184 107,495 37,689
1,277,000 1,226,139 165,537 1,060,602
306,000 308,003 160,651 147,352
- - 570,483 (570,483)
- - 114,698 (114,698)
- - - -
1,683,000 1,754,326 1,168,470 585,856
(256,000) (327,326) (817,413) (490,087)
- - 570,483 570,483
- - 74,000 74,000
- - (12,000) (12,000)
- - 632,483 632,483
(256,000) (327,326) (184,930) 142,396
470,042 470,042 470,042 -
$ 214,042 $ 142,716 $ 285,112 $ 142,396
Cont'd
Budgeted Amounts
Federal, State, and Local Grants Fund
Agenda Packet Page 147 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
720,000 720,000 720,000 -
555,063 555,063 552,841 2,222
1,275,063 1,275,063 1,272,841 2,222
(1,275,063) (1,275,063) (1,272,841) 2,222
- - - -
1,325,829 1,325,829 1,325,829 -
- - - -
1,325,829 1,325,829 1,325,829 -
50,766 50,766 52,988 2,222
24,528 24,528 24,528 -
$ 75,294 $ 75,294 $ 77,516 $ 2,222
Cont'd
Public Finance Authority Fund
Agenda Packet Page 148 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 600,000 $ 600,000 $ 609,279 $ 9,279
- - - -
- - 18,407 18,407
- - 1,287 1,287
- - - -
600,000 600,000 628,973 28,973
- - - -
555,482 565,621 456,393 109,228
- - - -
- - - -
- - - -
197,000 297,000 4,632 292,368
- - - -
- - - -
752,482 862,621 461,025 401,596
(152,482) (262,621) 167,948 430,569
- - - -
- - - -
(40,000) (40,000) (40,000) -
(40,000) (40,000) (40,000) -
(192,482) (302,621) 127,948 430,569
658,426 658,426 658,426 -
$ 465,944 $ 355,805 $ 786,374 $ 430,569
Cont'd
Measure J Fund
Agenda Packet Page 149 of 324
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues

EXPENDITURES
Current:

General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Debt issuance
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 709,400 $ 709,400 $ 701,620 $ (7,780)
- - - -
- - 37,943 37,943
- - - -
- - - -
709,400 709,400 739,563 30,163
- - - -
582,278 585,461 489,126 96,335
- - - -
- - - -
- - - -
50,000 982,374 750,942 231,432
- - - -
- - - -
632,278 1,567,835 1,240,068 327,767
77,122 (858,435) (500,505) 357,930
- - - -
- - - -
- - - -
- - - -
77,122 (858,435) (500,505) 357,930
1,094,638 1,094,638 1,094,638 -
$ 1,171,760 $ 236,203 $ 594,133 $ 357,930
Concluded
Storm Drain Fund
Agenda Packet Page 150 of 324
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Agenda Packet Page 151 of 324

STATISTICAL SECTION
Agenda Packet Page 152 of 324
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Agenda Packet Page 153 of 324

STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

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

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

5. Net Assessed Value of Property

6. Property Tax Levies and Collections

7. Direct and Overlapping Property Tax Rates

8. Principal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

9. Ratio of General Obligation Bonded Debt to Assessed Value and General Obligation on Bonded Debt Per Capita

10. Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures

11. Ratios of Outstanding Debt by Type

12. Computation of Legal Debt Margin

13. Schedule of Direct and Overlapping Debt
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

14. Demographic and Economic Statistics

15. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

16. Full-Time Equivalent Employees by Function

17. Operating Indicators by Function

18. Construction Value

19. Miscellaneous Statistics
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.

Agenda Packet Page 154 of 324
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Agenda Packet Page 155 of 324
City of El Cerrito Table 1
Net Position by Component
Last Ten Fiscal Years
Governmental activities: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net investment in capital assets $ 61,687,197 $ 60,263,647 $ 58,942,988 $ 55,950,869 $ 54,638,042 $ 53,652,456 $ 53,377,263 $ 53,389,633 $ 56,361,576 $ 61,458,283 Restricted 16,401,240 16,468,323 17,041,501 14,255,506 15,240,589 15,859,381 16,029,304 17,767,175 21,667,676 25,607,946 Unrestricted (46,508,497) (45,697,093) (50,908,159) (54,698,365) (59,443,810) (55,481,269) (53,818,045) (31,271,761) (30,236,783) (35,751,246) Total net position $ 31,579,940 $ 31,034,877 $ 25,076,330 $ 15,508,010 $ 10,434,821 $ 14,030,568 $ 15,588,522 $ 39,885,047 $ 47,792,469 $ 51,314,983 Business-type activities: 2016 2017 2018 2019 2020 2021 2022 2023 2023 2024 Net investment in capital assets $ 674,225 $ 950,099 $ 1,106,285 $ 1,287,089 $ 1,477,133 $ 1,679,420 $ 1,363,893 $ 2,199,706 $ 2,473,772 $ 2,752,264 Unrestricted 72,217 (84,655) (91,433) (237,733) 152,426 1,079,923 2,514,386 2,427,637 913,831 1,528,025 Total net position $ 746,442 $ 865,444 $ 1,014,852 $ 1,049,356 $ 1,629,559 $ 2,759,343 $ 3,878,279 $ 4,627,343 $ 3,387,603 $ 4,280,289 Primary Government 2016 2017 2018 2019 2020 2021 2022 2023 2023 2024 Net investment in capital assets $ 62,361,422 $ 61,213,746 $ 60,049,273 $ 57,237,958 $ 56,115,175 $ 55,331,876 $ 54,741,156 $ 55,589,339 $ 58,835,348 $ 64,210,547 Restricted 16,401,240 16,468,323 17,041,501 14,255,506 15,240,589 15,859,381 16,029,304 17,767,175 21,667,676 25,607,946 Unrestricted (46,436,280) (45,781,748) (50,999,592) (54,936,098) (59,291,384) (54,401,346) (51,303,659) (28,844,124) (29,322,952) (34,223,221) Total net position $ 32,326,382 $ 31,900,321 $ 26,091,182 $ 16,557,366 $ 12,064,380 $ 16,789,911 $ 19,466,801 $ 44,512,390 $ 51,180,072 $ 55,595,272 Source: Financial Statements
Note: The negative unrestricted net position is the result of the implementation of GASB 68.

Agenda Packet Page 156 of 324
City of El Cerrito Table 2
Changes in Net Position
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government $ 4,791,816 $ 5,138,555 $ 5,758,535 $ 6,723,883 $ 6,853,922 $ 5,811,523 $ 7,884,210 $ 4,892,654 $ 8,271,822 $ 8,947,901 Public works 5,276,434 7,296,766 8,956,800 8,800,985 8,041,340 7,677,819 9,260,749 6,244,845 9,122,950 9,702,125 Recreation 4,838,539 5,335,946 6,319,879 6,852,784 6,579,645 4,691,509 6,089,667 3,896,266 6,999,666 7,682,753 Community development 2,094,643 2,867,664 2,877,501 2,683,918 2,881,181 3,452,703 4,262,818 2,376,676 4,530,222 4,472,171 Public safety 18,620,431 20,310,165 24,291,518 26,250,994 26,853,126 26,208,413 30,989,792 16,455,373 29,383,735 34,272,713 Interest 845,437 982,440 852,986 837,272 844,041 879,070 716,380 630,504 166,298 541,187 Total governmental activities expenses 36,467,300 41,931,536 49,057,219 52,149,836 52,053,255 48,721,037 59,203,616 34,496,318 58,474,693 65,618,850 Business-type activities:

Integrated waste management 1,940,519 2,376,867 2,420,952 2,606,192 2,793,637 2,662,806 2,815,640 3,243,285 3,412,017 3,757,558 Program Revenues:

Governmental activities:

Charges for services:

General government 137,038 1,096,168 1,116,938 983,618 947,409 1,037,096 547,024 480,288 468,692 1,612,875 Public works 514,039 331,297 433,727 453,911 317,062 410,676 593,215 557,706 735,339 501,889 Recreation 3,112,985 3,611,541 3,785,511 4,385,622 3,108,433 2,142,292 3,932,395 4,398,223 4,958,617 5,799,134 Community development 1,439,678 1,848,830 1,813,313 1,917,141 1,841,512 1,756,009 3,096,993 2,673,576 2,896,914 2,564,550 Public safety 2,819,113 3,048,763 3,504,858 3,437,116 3,522,587 3,746,725 4,093,311 4,526,164 4,709,908 4,762,457 Operating grants and contribution 2,496,255 1,942,080 2,410,442 3,534,462 2,329,117 5,632,909 4,797,917 1,437,171 1,550,711 3,368,275 Capital grants and contributions 1,573,560 2,039,912 3,013,832 5,093,007 2,767,468 3,317,784 1,280,680 1,709,112 4,841,678 6,796,593 Total governmental program revenues 12,092,668 13,918,591 16,078,621 19,804,877 14,833,588 18,043,491 18,341,535 15,782,240 20,161,859 25,405,773 Business-type activities:

Charges for services:

Integrated waste management 2,318,342 2,366,205 2,555,397 2,581,473 3,337,310 3,779,477 3,877,922 3,920,346 4,182,443 4,443,095 Operating grants and contribution 37,213 25,683 24,634 62,894 40,201 16,784 60,016 32,471 33,907 30,559 Total business-type activities 2,355,555 2,391,888 2,580,031 2,644,367 3,377,511 3,796,261 3,937,938 3,952,817 4,216,350 4,473,654 Total primary government program revenues 14,448,223 16,310,479 18,658,652 22,449,244 18,211,099 21,839,752 22,279,473 19,735,057 24,378,209 29,879,427 Net revenues (expense)
Governmental activities: (24,374,632) (28,012,945) (32,978,598) (32,344,959) (37,219,667) (30,677,546) (40,862,081) (18,714,078) (38,312,834) (40,213,077) Business-type activities: 415,036 15,021 159,079 38,175 583,874 1,133,455 1,122,298 709,532 804,333 716,096 Total primary gov't net revenue (expense) $ (23,959,596) $ (27,997,924) $ (32,819,519) $ (32,306,784) $ (36,635,793) $ (29,544,091) $ (39,739,783) $ (18,004,546) $ (37,508,501) $ (39,496,981) Source: Financial statements Continued
Agenda Packet Page 157 of 324
City of El Cerrito Table 2
Changes in Net Position
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General revenues and special items:

Governmental activities:

Taxes:

Property taxes $ 11,211,539 $ 12,770,037 $ 13,360,216 $ 14,242,520 $ 14,381,441 $ 15,213,912 $ 16,683,058 $ 17,813,125 $ 18,503,332 $ 18,892,277 Sales taxes 7,234,366 7,477,393 8,215,732 8,318,511 8,134,818 9,708,892 9,671,196 12,110,514 11,457,300 12,142,660 Transient occupancy taxes 139,084 134,171 145,489 147,550 118,891 126,164 113,434 107,817 89,451 115,058 Franchise and other taxes 1,453,351 1,375,048 1,279,037 1,244,897 1,637,666 1,364,257 1,181,509 1,604,218 1,854,938 1,587,267 Business license taxes 787,122 775,413 846,900 910,104 918,799 924,358 1,040,618 1,069,964 1,128,561 1,176,343 Utility user taxes 3,291,255 3,360,277 2,965,675 3,207,892 3,165,974 3,444,484 3,403,776 4,100,286 4,015,551 4,206,762 Real property county transfer tax - - - 1,102,563 3,467,532 4,419,107 4,863,035 4,157,840 3,129,523 3,207,242 Other taxes 180,447 154,863 147,623 1,935 2,811 213,044 581,641 706,695 805,437 57 Other 2,640,631 481,324 300,264 340,572 344,875 176,593 1,146,385 1,887,516 2,920,338 2,404,254 Transfers 356,418 9,671 9,671 3,671 3,671 3,671 3,671 3,671 3,671 3,671 Special item - - - (6,773,576) - (1,321,189) - - - -
Total governmental activities 27,294,213 26,538,197 27,270,607 22,746,639 32,176,478 34,273,293 38,688,323 43,561,646 43,908,102 43,735,591 Business-type activities:

Other - - - - - - 309 43,203 116,999 180,261
Transfers (356,418) (9,671) (9,671) (3,671) (3,671) (3,671) (3,671) (3,671) (3,671) (3,671) Total business-type activities: (356,418) (9,671) (9,671) (3,671) (3,671) (3,671) (3,362) 39,532 113,328 176,590 Total primary government $ 26,937,795 $ 26,528,526 $ 27,260,936 $ 22,742,968 $ 32,172,807 $ 34,269,622 $ 38,684,961 $ 43,601,178 $ 44,021,430 $ 43,912,181 Change in net position:

Governmental activities: $ 2,919,581 $ (1,474,748) $ (5,707,991) $ (9,598,320) $ (5,043,189) $ 3,595,747 $ (2,173,758) $ 24,847,568 $ 5,595,268 $ 3,522,514 Business-type activities: 58,618 5,350 149,408 34,504 580,203 1,129,784 1,118,936 749,064 917,661 892,686 Total primary government $ 2,978,199 $ (1,469,398) $ (5,558,583) $ (9,563,816) $ (4,462,986) $ 4,725,531 $ (1,054,822) $ 25,596,632 $ 6,512,929 $ 4,415,200 Source: Financial statements Concluded
Agenda Packet Page 158 of 324
City of El Cerrito Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund:

Nonspendable $ 170,353 $ 994,742 $ 2,321,077 $ 1,650,928 $ 1,667,511 $ 25,694 $ 200,339 $ 108,865 $ 126,751 $ 175,376 Restricted 10,187 10,205 - - - - - - 1,372,890 2,960,245 Assigned - - - - - 7,117,568 - -
Unassigned 1,713,302 (186,227) (2,233,507) (1,707,620) (1,777,532) - 16,423,835 23,034,216 21,393,697 21,114,887 Total general fund $ 1,893,842 $ 818,720 $ 87,570 $ (56,692) $ (110,021) $ 7,143,262 $ 16,624,174 $ 23,143,081 $ 22,893,338 $ 24,250,508 All other governmental funds:

Nonspendable $ - $ - $ - $ - $ 1,087 $ - $ - $ - $ - $ - Restricted 10,017,073 15,608,545 16,077,928 13,130,770 14,198,963 14,735,254 14,976,465 16,392,159 18,788,908 20,992,803 Assigned - - - - - - - - - -
Unassigned (1,157,537) (802,928) (1,368,372) (322,255) (513) - (91,408) (312,572) - (1,272,492) Total all other governmental funds $ 8,859,536 $ 14,805,617 $ 14,709,556 $ 12,808,515 $ 14,199,537 $ 14,735,254 $ 14,885,057 $ 16,079,587 $ 18,788,908 $ 19,720,311 Total fund balances $ 10,753,378 $ 15,624,337 $ 14,797,126 $ 12,751,823 $ 14,089,516 $ 21,878,516 $ 31,509,231 $ 39,222,668 $ 41,682,246 $ 43,970,819 Source: City Financial Statements
Agenda Packet Page 159 of 324
City of El Cerrito Table 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:

Taxes and assessments $ 25,956,002 $ 27,511,526 $ 23,829,757 $ 31,367,715 $ 33,650,613 $ 36,544,925 $ 37,688,070 $ 41,758,461 $ 41,158,336 $ 41,456,479 Licenses and permits 607,729 719,843 765,706 775,876 784,982 656,881 1,440,972 1,051,537 1,272,849 1,414,521 Fines and forfeitures 326,544 350,855 222,173 232,298 227,463 177,525 155,301 115,407 231,231 198,860 Use of money and property 415,534 451,388 373,954 261,611 377,294 206,631 633,226 1,140,544 1,750,297 12,274,784 Intergovernmental revenues 6,833,050 4,759,518 4,115,543 9,609,792 6,034,335 10,725,849 9,332,700 6,510,628 7,989,866 1,859,628 Charges for services 4,406,143 5,766,594 6,099,394 6,944,795 5,491,613 4,996,957 7,412,088 7,863,312 8,599,499 9,598,516 Other revenues 808,134 678,047 377,394 582,815 609,522 243,033 293,963 539,696 668,341 851,460 Total revenues 39,353,136 40,237,771 35,783,921 49,774,902 47,175,822 53,551,801 56,956,320 58,979,585 61,670,419 67,654,248 Expenditures:

Current:

General government 4,363,219 4,928,339 5,250,720 5,949,944 6,005,738 5,185,148 5,966,264 6,989,134 7,600,860 7,814,871 Public works 2,748,364 3,831,414 4,222,203 4,639,984 4,492,288 4,334,149 4,982,804 5,253,023 6,042,116 6,087,217 Recreation 4,685,966 5,067,725 5,436,565 6,037,006 5,686,943 3,995,975 4,524,341 5,450,814 6,376,884 6,739,075 Community development 2,387,886 2,778,502 2,582,282 2,531,783 2,600,092 2,641,433 3,368,116 3,642,138 4,337,131 4,054,177 Public safety 19,327,886 20,277,045 21,259,359 23,379,730 23,513,886 23,805,434 24,526,394 25,260,769 28,025,047 31,179,030 Capital outlay 2,068,310 1,272,245 3,235,420 5,033,324 1,815,683 1,652,600 2,400,690 2,643,268 5,239,077 8,572,138 Debt Service
Principal 941,573 1,233,745 754,416 1,075,004 1,161,158 1,010,506 958,585 993,130 905,276 1,050,106 Interest 850,250 1,443,688 800,605 827,463 841,589 888,569 743,237 636,500 608,569 569,216 Total expenditures 37,373,454 40,832,703 43,541,570 49,474,238 46,117,377 43,513,814 47,470,431 50,868,776 59,134,960 66,065,830 Revenue Over (Under) expenditures 1,979,682 (594,932) (7,757,649) 300,664 1,058,445 10,037,987 9,485,889 8,110,809 2,535,459 1,588,418 Other Financing Sources (Uses):

Debt issuance 15,690,000 - 116,121 - 302,439 - 150,000 - 781,484 - Debt premiums 1,694,909 - - - - - - - - -
Payments to escrow (17,384,909) - - - - - - - - -
Land held for resale - - - - (628,756) - - - - -
Sale of capital assets 7,290 - - - - - - - - -
Transfer in 2,592,090 1,194,371 1,426,901 3,506,366 1,718,961 4,672,166 4,581,534 1,333,536 4,427,795 1,943,500 Transfer out (2,262,534) (1,211,562) (1,444,092) (3,529,556) (1,742,152) (4,668,495) (4,577,863) (1,329,865) (4,504,080) (2,024,829) Total other financing sources (uses) 336,846 (17,191) (17,191) 92,931 279,248 (625,085) 3,671 153,671 (76,285) 700,155 Special items:

Advance to El Cerrito Successor Agency write-off - - - - (1,321,189) - - - - - Land Sale Proceeds to the Contra Costa County - - (3,457,547) - - - - - - - Land Sale/Transfers to Successor Agency Fund - - (1,202,453) - - - - - - - Land held for resale - 1,420,347 - - - - - - -
Sale of land from Contra Costa County 800,755 - - - - - - Total special items - - (3,239,653) - (1,321,189) - - - - - Net Change in fund balance $ 2,316,528 $ (612,123) $ (7,774,840) $ (2,846,058) $ 1,337,693 $ 8,091,713 $ 9,489,560 $ 8,264,480 $ 2,459,174 $ 2,288,573 Debt service as a percentage of
non-capital expenditures 4.9% 6.8% 3.6% 3.9% 4.4% 4.5% 3.6% 3.2% 2.8% 2.8% Source: City Financial Statements
Note: This schedule contains trend information to help the reader understand how the City's financial performance and well being have changed over time.

Agenda Packet Page 160 of 324
City of El Cerrito Table 5
Net Assessed Value of Property
Last Ten Fiscal Years
Real Property Personal Property Total % Change
Fiscal Assessed Assessed Assessed From Total Direct
Year Value Value Value (1) Prior Year Rate (2)
2016 3,566,630,684 22,782,122 3,589,412,806 10.0% 1.0%
2017 3,810,090,943 20,431,443 3,830,522,386 6.7% 1.0%
2018 4,070,176,177 19,170,357 4,089,346,534 6.8% 1.0%
2019 4,324,516,299 19,462,999 4,343,979,298 6.2% 1.0%
2020 4,578,246,770 21,498,246 4,599,745,016 5.9% 1.0%
2021 4,884,779,461 19,572,301 4,904,351,762 6.6% 1.0%
2022 5,108,805,259 18,572,935 5,127,378,194 4.5% 1.0%
2023 5,459,016,809 18,839,778 5,477,856,587 6.8% 1.0%
2024 5,794,012,816 21,268,595 5,815,281,411 6.2% 1.0%
2025 6,052,457,772 23,528,731 6,075,986,503 4.5% 1.0%
Source: HdL Propety Tax ACFR report
Notes:
(1) Amounts are net of exemptions.

Assessed Value is determined based on California Proposition 13, as of January 1.

The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (2) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. $0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
$3,250
$3,500
$3,750
$4,000
$4,250
$4,500
$4,750
$5,000
$5,250
$5,500
$5,750
$6,000
$6,250
$6,500
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Real Property Assessed Value Personal Property Assessed Value Agenda Packet Page 161 of 324
City of El Cerrito Table 6
Property Tax Levies and Collections
Last Ten Fiscal Years
Value of
City Property
City % Change Subject to
Fiscal Property Special Property Tax From Local
Year Tax Levy Assessments Bill Total/Collected (1) Prior Year Tax Rate 2016 9,843,212 2,142,122 11,985,334 11.9% 3,589,412,806 2017 8,844,201 2,141,740 10,985,941 -8.3% 3,830,522,386 2018 7,765,728 2,110,456 9,876,184 -10.1% 3,830,522,386 2019 8,256,068 2,112,686 10,368,754 5.0% 4,089,346,534
2020 8,694,410 2,132,185 10,826,595 4.4% 4,343,979,298
2021 9,263,625 2,128,244 11,391,869 5.2% 4,599,745,016
2022 9,773,075 2,151,037 11,924,112 4.7% 4,904,351,762
2023 10,414,459 2,146,099 12,560,559 5.3% 5,127,378,194 2024 10,835,771 2,145,690 12,981,461 3.4% 5,477,856,587 2025 11,265,950 2,151,314 13,417,264 3.4% 5,815,281,411 Source: Contra Costa County Auditor-Controller’s Office. Amount are net of collection fees.

Notes: (1) The City receives property tax revenues, and the City's Redevelopment Agency receives incremental property taxes pursuant to an arrangement with the County known as the "Teeter Plan" whereby the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2016 2017 2018 2020 2021 2022 2023 2024 2025
Thousands
Property Tax Bill Total/Collected (1)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Value of City Property
Agenda Packet Page 162 of 324
City of El Cerrito Table 7
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Bay Area Contra Costa East Bay East Bay Richmond West Contra Total Contra Rapid Community Municipal Regional Retirement Costa Unified Direct and Total Fiscal Costa Transit College Utilities Park School Overlapping Direct Year County District District District Districts Districts Tax Rates (1) Rate 2016 1.00000 0.00260 0.02200 0.00340 0.00670 0.27810 1.31280 0.22670 2017 1.00000 0.00800 0.01200 0.00280 0.00320 0.26040 1.28640 0.22642 2018 1.00000 0.00840 0.01140 0.00110 0.00210 0.23970 1.26270 0.22619 2019 1.00000 0.00700 0.01100 0.00210 0.23900 1.25910 0.22601 2020 1.00000 0.01200 0.01880 0.00940 0.23790 1.27810 0.22586 2021 1.00000 0.01390 0.01610 0.00140 0.14000 0.24320 1.41460 0.22562 2022 1.00000 0.00600 0.01760 0.00200 0.29390 1.31950 0.22551 2023 1.00000 0.01400 0.01620 0.00580 0.25640 1.29240 0.22325 2024 1.00000 0.01340 0.01460 0.00570 0.24640 1.28010 0.22319 2025 1.00000 0.01480 0.01420 0.00130 0.24890 1.27920 1.22319 Source: HdL Report page 8
Notes:
( 1 ) Rates are per $100 of assessed value.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
Per Hundred $
West Contra Costa Unified School District East Bay Regional Park District Bay Area Rapid Transit West County Sanitary/Wastewater Basic County Wide Levy $0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Direct and Overlapping Tax Rates
Bay Area Rapid Transit District Contra Costa Community College District East Bay Municipal Utilities District East Bay Regional Park Districts Total Direct and Overlapping Tax Rates (1) Contra Costa County Agenda Packet Page 163 of 324
City of El Cerrito Table 8
Principal Property Taxpayers
Current Year and Nine Years Ago
2024-2025 2015-2016
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
MCD-RCCA El Cerrito LLC $107,285,314 1 1.77% $90,893,240 1 2.53% KMF X El Cerrito LLC 64,301,256 2 1.06% 46,481,716 2
HD Reliant Mayfair LLC 44,117,115 3 0.73% 0.00%
El Cerrito Shopping Center LLC 43,781,560 4 0.72% 43,196,883 3 Del Norte Place Apartments LP 40,916,002 5 0.67%
Creekside Walk Ventures LLC 32,906,792 6 0.54%
Save Mart Portfolio Own NLP California 27,828,271 7 0.46% Peak Del Norte LLC 24,124,530 8 0.40%
San Pablo Playland Apartments 20,128,697 9 0.33%
Civic Plaza Riley Group LLC 18,873,501 10 0.31% 15,941,148 5 0.44% MG Garden View Apartments LP 17,289,546 4 0.48%
Lucky FLA NORCAL Investor LLC 15,750,000 6 0.44%
Pepper Lane SE Square Loop 14,791,821 8 0.41%
Longs Drugs Stores INC 10,788,771 9 0.30%
St Johns Land Partnership 10,666,996 10 0.30%
Ohlone Gardens LP 15,274,517 7 0.43%
Subtotal $424,263,038 6.98% $281,074,638 7.83%
Total Net Assessed Valuation:

Fiscal Year 2024-2025 & 2015-2016 $6,075,986,503 $ 3,589,412,806 Source: HdL
Agenda Packet Page 164 of 324
City of El Cerrito Table 9
Revenue Bond Coverage
2002 Lease Revenue Bonds and 2012 Lease Revenue Refunding Bonds Last Ten Fiscal Years
Debt Service Requirements
Fiscal Taxes and
Year Assessments (1) Principal (3) Interest (3) Total Coverage 2016 668,220 328,200 33,640 361,840 1.85 (2)
2017 667,971 332,300 27,167 359,467 1.86
2018 654,469 340,800 20,570 361,370 1.81
2019 633,080 343,500 13,864 357,364 1.77
2020 646,806 350,400 7,064 357,464 1.81
2021 - (4) 185,200 1,815 187,015 -
2022 - (4) 300,000 276,763 576,763 -
2023 - (4) 310,000 267,763 577,763 -
2024 - (4) 320,000 255,363 575,363 -
2025 - (4) 330,000 242,563 572,563 -
Notes:
(1) Includes all taxes and assessments from the Measure A Parcel Tax Fund 206 (2) The 2002 Lease Revenue Bonds were refunded and retired by the 2012 Lease Revenue Refunding Bonds during the fiscal year. Retirements exclude the refunded bond principal and interest of $2,685,000 and $65,181, respectively.
(3) Include debt service payment in Fund 834
(4) The debt was paid off in FY2021 with the reserve amount.

Source: City of El Cerrito Annual Financial Statements

0.00 5.00

10.00 15.00

20.00 25.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Coverage
Agenda Packet Page 165 of 324
City of El Cerrito Table 9
Revenue Bond Coverage
Sales Tax Revenue Bonds
Last Ten Fiscal Years
Debt Service Requirements
Fiscal Taxes and
Year Assessments (1) Principal (3) Interest (3) Total Coverage 2016 1,800,599 280,000 457,228 737,228 2.44
2017 1,428,094 290,000 447,078 737,078 1.94
2018 $1,590,085 $315,000 $385,700 (2) $700,700 2.27
2019 $1,630,826 $325,000 $379,400 $704,400 2.32
2020 $1,631,894 $330,000 $372,900 $702,900 2.32
2021 $1,881,749 $340,000 $366,300 $706,300 2.66
2022 $1,809,481 $350,000 $356,099 $706,099 2.56
2023 $2,316,365 $360,000 $342,100 $702,100 3.30
2024 $2,154,278 $380,000 $327,700 $707,700 3.04
2025 $2,154,856 $390,000 $312,500 $702,500 3.07
Notes:
(1) Includes all taxes and assessments from the Street Improvement Fund 211. (2) The 2008 Sales tax revenue bonds were refinanced in FY17. Interest in FY18 is for the 2017 Refinanced Sales tax bonds.
(3) Include debt payments from Fund 836.

Agenda Packet Page 166 of 324
City of El Cerrito Table 9
Bonded Debt Pledged Revenue Coverage
Tax Allocation Bonds
Last Ten Fiscal Years
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest Total Coverage
2016 2,195,420 (3) 1,425,000 (4) 670,676 (4) 2,095,676 1.05 2017 788,216 (3) 1,530,000 (4) 52,705 (4) 1,582,705 0.50 2018 788,216 (5) - - - NA
2019 2,138,127 - 856,584 856,584 2.50
2020 2,554,468 1,559,000 321,351 1,880,351 1.36
2021 2,382,794 1,791,984 268,640 2,060,624 1.16
2022 2,094,578 1,909,309 198,531 2,107,840 0.99
2023 2,132,794 1,957,533 186,650 2,144,183 0.99
2024 2,376,718 2,006,975 120,415 2,127,390 1.12
2025 2,344,294 2,057,667 73,897 2,131,564 1.10
Source: City of El Cerrito Annual Financial Statements
Notes: (1) Includes the 1997, 1998 and 2004 Tax Allocation Bonds (2) Due to the dissolution of the Redevelopment Agency effective February 1, 2012, the Tax Allocation Bonds were transferred to the Successor Agency and tax increment revenue reported in this schedule includes both tax increment collected by the Redevelopment Agency and property taxes collected by the Successor Agency. (3) Includes property taxes collected by the Successor Agency Fund 780 (4) Debt service is paid by the Successor Agency.
(5) All the tax allocation bonds were refinanced in FY2017, and there is no debt service requirement for them in FY18 $500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
2016 2017 2018 2020 2021 2022 2023 2024 2025
Series1 Series4
Agenda Packet Page 167 of 324
City of El Cerrito Table 10
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
2017 COP 2017 Sales Tax Total
Fiscal Revenue Financed Revenue Governmental
Year Leases Bonds Purchases Bonds Activities
2016 - 9,667,200 1,713,138 10,930,707 22,311,045
2017 - 8,259,900 1,495,838 9,781,172 19,536,910
2018 - 7,572,411 1,273,713 9,406,637 18,252,761
2019 - 7,292,411 1,046,649 9,022,102 17,361,162
2020 - 6,976,093 1,180,596 8,632,567 16,789,256
2021 - 6,649,775 990,291 8,233,032 15,873,098
2022 - 6,318,457 907,386 7,823,497 15,049,340
2023 - 5,977,139 1,781,146 7,403,962 15,162,247
2024 - 5,625,821 1,474,237 6,964,427 14,064,485
2025 624,364 5,264,503 1,525,363 6,514,892 13,929,122
Business-Type
Activities
Revenue Total Percentage
Fiscal Financed Refunding Primary of Personal Per
Year Purchases Bonds Government Income (a) Capita (a)
2016 405,057 2,593,600 25,309,702 2% 1,000
2017 291,878 2,347,900 22,176,688 2% 843
2018 176,676 2,647,698 21,077,135 2% 874
2019 59,414 1,838,200 19,258,776 2% 772
2020 405,049 1,573,800 18,768,105 2% 763
2021 330,775 1,309,400 17,513,273 1% 711
2022 742,786 1,025,600 16,817,726 1% 661
2023 585,442 741,400 16,489,089 1% 648
2024 422,833 450,200 14,937,518 1% 599
2025 263,300 151,900 14,344,322 0% 558
Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.

Sources: City of El Cerrito
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) Governmental Activities
Agenda Packet Page 168 of 324
City of El Cerrito Table 11
Computation of Legal Bonded Debt Margin
June 30, 2025
ASSESSED VALUATION:

Secured property assessed value, net of
exempt real property $ 6,075,986,503
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $ 911,397,975 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt $ 11,779,395 (b)
Less Tax Allocation Bonds and Revenue Bonds,
Financed purchases are not subject to limit $ 11,779,395 Amount of debt subject to limit $ -
LEGAL BONDED DEBT MARGIN $ 911,397,975
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2016 $ 538,411,921 $ - $ 493,003,720 0%
2017 $ 574,578,358 $ - $ 538,411,921 0%
2018 $ 613,401,980 $ - $ 574,578,358 0%
2019 $ 651,596,895 $ - $ 613,401,980 0%
2020 $ 689,961,752 $ - $ 689,961,752 0%
2021 $ 735,652,764 $ - $ 689,961,752 0%
2022 $ 769,106,729 $ - $ 735,652,764 0%
2023 $ 821,678,488 $ - $ 821,678,488 0%
2024 $ 872,292,212 $ - $ 872,292,212 0%
2025 $ 911,397,975 $ - $ 911,397,975 0%
NOTE:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
(b) ACFR Long term debt schedule
Agenda Packet Page 169 of 324
City of El Cerrito Table 12
Direct and Overlapping Governmental Activities Debt
As of June 30, 2024
2023-24 Assessed Valuation: $6,075,986,503 Estimated Share of Direct and
Total Debt at Overlapping Debt
% Applicable (1) June 30, 2024 at June 30, 2024
OVERLAPPING TAX AND ASSESSMENT DEBT:

Bay Area Rapid Transit District 0.580% $ 2,391,260,000 $ 13,869,308 Contra Costa Community College District 2.181% $ 591,875,000 $ 12,908,794 West Contra Costa Unified School District 14.068% $ 1,279,679,975 $ 180,025,379 East Bay Regional Park District 0.905% $ 145,930,000 $ 1,320,667 West Contra Costa Healthcare District Parcel Tax Obligations 12.896% $ 40,155,000 $ 5,178,389 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 213,302,536 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 2.168% $ 150,845,000 $ 3,270,320 Alameda-Contra Costa Transit District Certificates of Participation 1.700% $ 9,600,000 $ 163,200 West Contra Costa Unified School District General Fund Obligations 14.068% $ 2,845,000 $ 400,235 Contra Costa Mosquito Abatement District General Fund Obligations 2.175% $ 8,050,000 $ 175,088 City of El Cerrito Long-Term Debt (Gov't Activities) 100.00% $ 13,929,123 $ 13,929,123 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 17,937,965 Less: Contra Costa County obligations supported by revenue funds $ 753,308 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 17,184,657 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 100% $ 1,048,242 $ 1,048,242 TOTAL DIRECT DEBT $ 13,929,123
TOTAL GROSS OVERLAPPING DEBT $ 213,302,536
TOTAL NET OVERLAPPING DEBT $ 17,184,657
GROSS COMBINED TOTAL DEBT $ 231,240,501 (2)
NET COMBINED TOTAL DEBT $ 230,487,193
Ratios to 2024-25 Assessed Valuation:

Direct Debt ($13,929,123) 0.23%
Total Overlapping Tax and Assessment Debt 3.51%
Combined Total Debt 3.81%
Net Total Debt 3.79%
Source Data: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, sales tax revenue and non-bonded capital lease obligations.

Agenda Packet Page 170 of 324
City of El Cerrito Table 13
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Median Median Public Contra Costa City
Calendar City Personal Population Household Unemployment School County Population Year Population (1) Income (2) Age (1) Income (1) Rate (1) Enrollment (3) Population (1) % of County 2016 24,954 1,138,226,802 44.4 45,613 4.4% (6) 1,126,745 2.21% 2017 24,600 1,113,784,000 43.8 45,275 3.9% (6) 1,139,429 2.16% 2018 24,646 2,283,944,820 43.6 92,670 4.2% (6) 1,149,363 2.14% 2019 25,459 2,556,643,698 43.6 100,422 4.2% (6) 1,155,879 2.20% 2020 24,953 2,505,830,166 43.6 100,422 13.4% (6) 1,155,879 (4) 2.16% 2021 24,953 2,702,359,994 43.6 (4) 108,298 (5) 4.2% 4,310 (8) 1,159,540 (7) 2.15% 2022 25,710 3,004,856,250 42.0 (4) 116,875 4.2% (4) 4,310 (4) 1,151,798 2.23% 2023 25,484 3,068,630,376 41.8 (4) 120,414 3.7% 4,153 (8) 1,147,653 2.22% 2024 25,552 3,076,818,528 41.8 (4) 120,414 3.2% 4,152 (8) 1,155,025 2.21% 2025 25,962 3,309,505,950 42.4 127,475 3.2% 4,570 (8) 1,151,037 2.26% Sources: (1) State Controller's Office RMRA remittance
US Census : https://www.census.gov/quickfacts/elcerritocitycalifornia Areavibes https://www.areavibes.com/el+cerrito-ca/employment/ Department of Finance Press release
(2) Data not available, therefore it has been calculated by multiplying the City population by the Median Household Income. (3) West Contra Costa County Unified School District.
(4) Not Available, Same as Last year
(5)
https://www.areavibes.com/el+cerrito-ca/employment/
(6) Data Not Available
(7) https://worldpopulationreview.com/us-counties/ca/contra-costa-county-population (8) publicschoolreview.com
https://www.labormarketinfo.edd.ca.gov/serp.html?q=el+cerrito Agenda Packet Page 171 of 324
City of El Cerrito Table 14
Principal Employers
Last Fiscal Year and Nine Years Ago
Business Name Rank
Number of
Employees
Percent of Total
Employment (%) Rank
Number of
Employees
Percent of Total
Employment (%)
City of El Cerrito 1 169 1.19%
Safeway Store 2 141 0.99%
Ross Dress for Less 3 95 0.67%
Marshalls 4 92 0.65%
El Cerrito Honda 6 73 0.51%
Lucky's 5 70 0.49%
FatApple's Restaurant 7 67 0.47%
Berkeley Country Club 8 65 0.46%
McDonalds 9 46 0.32%
Shields Nursing Center 10 42 0.30%
DD's Discounts 11 35 0.25%
Denny's 12 28 0.20%
CVS/Pharmacy 13 24 0.17%
Jack In The Box 15 31 0.22%
Total Top Employers 809 5.70%
Total Labor Force (1) 14,200
Source: 2015-16 information and ranking unavailable
(1) Total City Labor Force provided by EDD Labor Force Data 2025
Source: City of El Cerrito Community Development
2016
Agenda Packet Page 172 of 324
City of El Cerrito Table 15
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General Government 22.50 22.50 22.50 17.50 17.50 21.00 20.00 21.00 22.00 22.00 Public Works 24.80 22.80 24.80 25.20 25.20 25.00 24.20 27.30 27.30 27.30 Recreation 23.00 22.00 23.00 23.00 23.00 21.00 18.00 20.00 20.00 20.00 Community Development 14.00 (a) 14.00 (a) 14.00 14.00 14.00 15.00 14.00 15.00 15.00 15.00 Public Safety 93.40 85.40 93.40 95.00 95.00 92.00 85.00 85.00 85.50 85.50 Total 172.70 177.70 166.70 174.70 174.70 174.00 161.20 168.30 169.80 169.80 Source: City of El Cerrito Adopted Budget FY24-25 FY 25-26 - Position Listing Notes: (a) Includes Environmental Services Division

0.00 20.00

40.00 60.00

80.00 100.00
120.00
140.00
160.00
180.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FTE's
General Government Public Works Recreation Community Development Public Safety Agenda Packet Page 173 of 324
CITY OF EL CERRITO Table 16
Operating Indicators by Function/ Program
Information as available - Last Ten Fiscal Years
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function/ Program
Community Development:

Planning:

Number of Permits 163 174 187 183 164 160 167 123 124 159 Building:

Permits Issued 1,164 1,167 1,304 1,263 1,126 1,204 1,580 1,271 1,284 1,346 Annual Inspections 8,824 8,959 8,715 7,918 8,080 6,288 7,373 7,097 5,261 5,266 Public Safety:

Fire:

Number of Responses 3,326 3,451 3,553 3,516 3,620 3,762 4,189 4,695 4,458 3,496 Police:

Number of Responses 23,855 25,834 26,011 26,810 22,962 24,886 18,452 18,276 23,647 25,408 Recreation: **
Activity Category Enrollments
60 & Better!
Enrollments by Session 1,913 1,374 1,245 933 707 103 142 201 269 203 Enrollments By Day 268 250 135 584 2,228 789 4,323 6,152 6,814 9,270 Adults
Enrollments by Session 2,878 2,566 2,523 2,395 2,471 4,483 2,662 3,487 3,162 3,207 Enrollments By Day 419 764 1,002 1,925 1,566 28,846 3,926 3,816 5,479 5,461 Youth
Enrollments by Session 8,911 11,504 13,821 14,329 9,535 7,994 7,818 9,980 11,198 15,316 Enrollments By Day 74,564 66,404 70,087 63,167 46,921 5,859 45,945 41,661 44,309 45,862 Enrollments by Session: 1 enrollment = multiple classes per session Enrollments By Day: 1 enrollment = 1 class (i.e. drop-ins) Facility Category Reservations
Community Center 3,133 2,947 2,928 3,012 2,444 639 2,290 3,355 5,572 4,128 Swim Center 462 395 730 311 179 16,263 340 618 799 556
Parks & Clubhouses 7,731 7,508 8,859 8,303 9,009 9,216 9,551 9,327 12,007 10,880 Pass Type Transactions
Aquatics
Sales 4,024 3,614 2,650 2,941 2,357 114 4,426 2,897 3,132 1,900 Visits 37,732 34,452 26,596 31,118 23,269 - 45,666 42,774 45,821 48,917 Childcare Sales 49 115 114 782 691 - 450 385 396 N/A
Senior
Sales - - - - - - 77 68 93 76
Visits 1,839 1,645 1,893 1,085 - - 338 345 378 347
Tennis Sales 144 150 62 - 5 25 2 24 9 25
Sales: Purchasing a pass
Visits: # of times pass used (if applicable - i.e. a punch pass) POS Type Sales
Admin
Inventory - - - - 2 130 396 400 378 329
Service 4 4 23 24 29 8 120 41 40 51
Adult Service 109 94 148 206 85 - 8 17 76 654
Aquatics
Inventory 610 673 619 609 414 2 164 262 214 257
Service 37,947 29,549 28,191 26,195 19,196 12 32,711 24,748 31,608 30,153 Senior Service 1 - - 2,176 1,471 602 355 299 245 276
Special Event
Inventory - - - - - - - - 17 13
Service 583 712 1,126 35 887 - 2 137 60 42
Youth Service 7 14 12 10 12 21 23 26 20 8
Inventory: Sales of goods (i.e. goggles)
Service: Program Drop-Ins (i.e. lap swim)
* The Police Department reported reduced calls for service due to COVID. **Recreation statistics format changed for FY 2023-24 due to a new system and analytics design.

Source: City of El Cerrito departments
Agenda Packet Page 174 of 324
Agenda Item No. 6.A.

EL CERRITO CITY COUNCIL PROCLAMATION
Recognizing February as Black History Month in the City of El Cerrito WHEREAS, much of the City of El Cerrito’s honor, strength and distinction can be attributed to the diversity of cultures and traditions that are celebrated by our residents; and
WHEREAS, African Americans have played a significant role in the history of our nation and California’s economic, cultural, spiritual, and political development while working tirelessly to promote their culture and history; and WHEREAS, as a result of their determination, hard work, and perseverance, African Americans have made valuable and lasting contributions to our community and our state, achieving exceptional success in all aspects of society including business, education, politics, science, and the arts; and
WHEREAS, in 1976, Black History Month was formally adopted to honor and affirm the importance of Black History throughout our American experience, and is full of individuals who took a stance against prejudice, advanced the cause of civil rights, strengthened families, communities, and our nation; and WHEREAS, all Americans are encouraged to reflect on past successes and challenges of African Americans and look to the future to improve society so that we live up to the ideals of freedom, equality, and justice; and WHEREAS, the Pan-African flag, also known as the UNIA (Universal Negro Improvement Association) flag, was created in 1920 to represent people of the African diaspora and to symbolize black liberation in the United States. The flag is an emblem of Black pride and symbolizes the union of governance, people, and territory.

NOW THEREFORE, the City Council of the City of El Cerrito does hereby declare February as Black History Month in the City of El Cerrito and invites everyone to recognize and celebrate the diversity and character of our community and highlight the importance of sharing our culture, customs, and traditions with those around us. And furthermore, recognizes Black History Month by flying the Pan-African Flag at City Hall during the month of February.

Dated: February 3, 2026
__________________________
Gabe Quinto, Mayor
Agenda Packet Page 175 of 324
Agenda Item No. 6.B.

EL CERRITO CITY COUNCIL PROCLAMATION
Recognizing the Cultural and Historical Significance of Lunar New Year in the City of El Cerrito
WHEREAS, Lunar New Year begins on the second new moon following the winter solstice, or the first day of the new year according to the lunisolar calendar, and extends until the full moon 15 days later; and
WHEREAS, February 17, 2026, marks the first day of Lunar New Year and the Year of Horse for calendar year 2026; and
WHEREAS, Lunar New Year began in China more than 4,000 years ago and is widely celebrated in East and Southeast Asia; and
WHEREAS, Lunar New Year is often referred to as Spring Festival in various Asian countries; and
WHEREAS, the Asian diaspora has expanded the Lunar New Year celebration into an annual worldwide event; and
WHEREAS, Lunar New Year is celebrated by Asian Americans and many nonAsian Americans in El Cerrito and throughout California and the entire United States; and
WHEREAS, participants celebrating Lunar New Year travel to spend the holiday reuniting with family and friends, enjoying community activities and cultural performances; and
WHEREAS Lunar New Year is traditionally a time to wish others good fortune, health, peace, prosperity, and happiness.

NOW, THEREFORE, the City Council of the City of El Cerrito recognizes the cultural and historical significance of Lunar New Year; in observance of Lunar New Year, expresses its deepest respect for Asian Americans and all individuals in El Cerrito and throughout the world who celebrate this significant occasion; and wishes Asian Americans and all individuals who observe this holiday a happy and prosperous new year.

Dated: February 3, 2026
__________________________
Gabe Quinto, Mayor
Agenda Packet Page 176 of 324
Agenda Item No. 6.C.

EL CERRITO CITY COUNCIL PROCLAMATION

COMMENDING AND CONGRATULATING MARIO UBALDE FOR AN

OUTSTANDING PERFORMANCE IN THE OLYMPIC HOPES INTERNATIONAL

YOUTH DIVING CHAMPIONSHIP IN HUNGARY
WHEREAS, Mario Ubalde, a student and lifelong resident of the City of El Cerrito, has distinguished himself through dedication, discipline, and excellence in the sport of competitive diving; and
WHEREAS, at the Amateur Athletic Union (AAU) National Diving Championship, he won silver medals in both the 1-meter and 3-meter springboard events, thereby achieving All-American status in each event; and
WHEREAS, through this exceptional multi-medal performance at the National Championships, he earned an invitation to represent the United States as a member of the AAU National Team; and
WHEREAS, as a member of the National Team, he traveled to Budapest, Hungary, where he proudly represented the United States at the Olympic Hopes International Youth Diving Championship; and
WHEREAS, at the Olympic Hopes International Youth Diving Championship, he placed fifth overall, the highest finish attained by an American competitor in his division.

NOW THEREFORE, the City Council of the City of El Cerrito does hereby commend and honor Mario Ubalde for his outstanding athletic achievements in diving, his commitment to excellence, and for bringing distinction to the City of El Cerrito through his accomplishments at both the national and international levels.

Dated: February 3, 2026

___________________________
Gabe Quinto, Mayor
Agenda Packet Page 177 of 324
Agenda Item No. 6.D.

EL CERRITO CITY COUNCIL PROCLAMATION
Commending and Congratulating Firefighter/Paramedic James Van Wyck for his Selection as El Cerrito Fire Department Firefighter of the Year 2025 WHEREAS, Firefighter James Van Wyck began his career with the El Cerrito Fire Department as a Firefighter/Paramedic on October 10, 2020, and has consistently adapted to and excelled in the many diverse roles critical to the success of the El Cerrito– Kensington Fire Department; and
WHEREAS, Firefighter Van Wyck has significantly advanced the department’s emergency medical services by configuring and implementing the LifePak 35 EKG monitors, ensuring the department remained at the forefront of patient care technology; and
WHEREAS, Firefighter Van Wyck developed comprehensive training curricula and successfully trained the entire department on the use of the LifePak 35 EKG monitors and mechanical CPR devices, enhancing clinical performance and patient outcomes; and WHEREAS, Firefighter Van Wyck assumed responsibility for managing the department’s EMS supply ordering and EMS budget, demonstrating exceptional organizational skill and fiscal responsibility; and
WHEREAS, Firefighter Van Wyck devoted countless hours to reorganizing and developing a comprehensive tracking system for EMS supplies, improving efficiency, accountability, and operational readiness throughout the stations; and WHEREAS, Firefighter Van Wyck researched, implemented, and trained department members on video laryngoscopy equipment, significantly improving airway management during critical medical emergencies; and
WHEREAS, Firefighter Van Wyck assisted in the configuration, testing, and implementation of the department’s new electronic patient care reporting system, contributing to improved documentation, data accuracy, and regulatory compliance; and WHEREAS, Firefighter Van Wyck further supported the department by assisting with the configuration, testing, and implementation of the new records management system, strengthening data integration and operational effectiveness; and WHEREAS, Firefighter Van Wyck consistently demonstrates professionalism, humility, integrity, and a positive attitude, earning the respect of his peers and being selected by his colleagues as the 2026 Firefighter of the Year for his exemplary leadership, dedication, and service to the department;
NOW THEREFORE, the City Council of the City of El Cerrito does hereby commend and congratulate Firefighter James Van Wyck on the occasion of his recognition as Firefighter of the Year. The City Council extends sincere appreciation to Firefighter James Van Wyck for his devotion to the community and residents of El Cerrito.

Dated: February 3, 2026

_____________________
Gabe Quinto, Mayor
Agenda Packet Page 178 of 324

AGENDA BILL
Agenda Item No. 6.E.

Date: February 3, 2026
To: El Cerrito City Council
From: Holly M. Charléty, City Clerk, City Management
Subject: 2025 Meeting Report for Boards, Commissions, and Committees

ACTION PROPOSED
Receive and file a report of meetings held by City Board, Commission and Committees for the Calendar Year of 2025.

BACKGROUND/ANALYSIS
In 2023, the City Council formed an Ad-Hoc committee to review and discuss areas pertaining to City Board, Commissions, and Committees (Advisory Bodies). Subsequent to two study sessions held, the City Council adopted a resolution implementing modifications to several areas, including the meeting frequency of Advisory Bodies. The El Cerrito Municipal Code was modified to reduce the minimum meeting schedule to quarterly (from Monthly), to allow more flexibility on the meeting needs of each individual advisory body. Part of the direction in the adopted resolution included an annual report to the City Council detailing the total meetings held in the prior calendar year. This information is presented below.

STRATEGIC PLAN CONSIDERATIONS
This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization
Agenda Packet Page 179 of 324
Agenda Item No. 6.E.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
This section is not applicable to this agenda item.

LEGAL CONSIDERATIONS
This section is not applicable to this agenda item.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

Agenda Packet Page 180 of 324

AGENDA BILL
Agenda Item No. 6.F.

Date: February 3, 2026
To: El Cerrito City Council
From: Crystal Reams, Finance Director/City Treasurer, Finance Department Subject: FY 2025-26 Second Quarter Cash and Investment Report

ACTION PROPOSED
Receive and file the City's Second Quarter Cash and Investment Report for the period October 1, 2025 to December 31, 2025.

BACKGROUND
It is the policy of the City of El Cerrito ("City") to invest public funds in a manner which provides for the safety of the principal while providing enough liquidity to cover the City's short and long-term needs while generating the appropriate yield. All investment activity will conform to the California Government Code, Sections 53601 through 53659.

ANALYSIS
The FY 2025-26 Second Quarter Cash and Investment Report for October 1, 2025 through December 31, 2025 shows that the City's total cash and investments as of December 31, 2025, had a par value of $32,699,897.44 in the following accounts. • $18,582,447.82 (LAIF) (Excludes investment earnings)
o $211,414.79 Investment Earnings Q2 paid Jan 15, 2026
• $2,958,341.07 (Mechanics Bank) (Includes interest earnings) o $16.65 Interest Earned October 2025
o $13.28 Interest Earned November 2025
o $38.78 Interest Earned December 2025
• $8,053,094.70 (Mechanics Bank Money Market) (Includes interest earnings) o $14,161.22 Interest Earned October 2025
o $10,042.52 Interest Earned November 2025
o $11,259.85 Interest Earned December 2025
• $3,103,663.85 (Section 115 Trust PARS/US Bank) (Includes investment earnings)
o $22,820.48 Investment Earnings October 2025
o $15,888.94 Investment Earnings November 2025
o $(553.38) Investment Earnings December 2025
• $2,350.00 (Petty Cash Funds)
These funds are available to meet operating expenses for the next six months.

Agenda Packet Page 181 of 324
Agenda Item No. 6.F.

STRATEGIC PLAN CONSIDERATIONS
The City's Investment Policy, Comprehensive Financial Policy, and Strategic Plan sets form guidelines for the investment of City funds and aligns with California Government code, Section 53646 and Section 53600-53609. The purpose of the City's Investment Policy is to provide guidelines for prudent investment of the City's idle funds and ensure policies, procedures, systems, and best practices in fiscal management.

This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization Ensure the City maintains a strong financial position and a high-performing organization where employees feel a sense of inclusion and belonging.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
The Quarterly Cash and Investment Report complies with the City of El Cerrito Investment Policy and California Government Code Section 53646.

LEGAL CONSIDERATIONS
The City's investments comply with standards reflected in the City of El Cerrito Investment Policy.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. FY 26 Q2 Quarterly Cash & Investment Report
Agenda Packet Page 182 of 324
City of El Cerrito
Quarterly Cash and Investment Report
for the Quarter Ending December 31, 2025
Attachment A
Category Trustee/Broker Month Ending PAR Value
(Actual Value)
Quarter End
Interest Rate
Market value
Pooled Investments California State Treasurer (LAIF) December 31, 2025 $ 18,582,447.82 4.20% $ 18,582,447.82 Cash with Bank Mechanics Bank December 31, 2025 $ 2,958,341.07 0.01% $ 2,958,341.07 Money Market Account Mechanics Bank December 31, 2025 $ 8,053,094.70 3.74% $ 8,053,094.70 Section 115 PARS/US Bank December 31, 2025 $ 3,103,663.85 N/A $ 3,103,663.85 Petty Cash Funds City Management December 31, 2025 $ 2,350.00 N/A $ 2,350.00 $ 32,699,897.44 $ 32,699,897.44
I certify that this report is in compliance with the City of El Cerrito Investment Policy and the California government Code Section 53646.

The City has sufficient cash to meet the next six months of estimated expenditures as required by the Code.

Crystal Reams, Finance Director/City Treasurer
Total Cash and Investments
Agenda Packet Page 183 of 324
Agenda Item No. 6.G.

RESOLUTION 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO

EXPRESSING SOLIDARITY WITH THE CITY OF MINNEAPOLIS, MINNESOTA, AND

ITS RESIDENTS IN THE AFTERMATH OF RECENT UNITED STATES IMMIGRATION

AND CUSTOMS ENFORCEMENT (ICE) RELATED SHOOTINGS, AND AFFIRMING THE CITY OF EL CERRITO’S COMMITMENT TO HUMAN RIGHTS, PUBLIC SAFETY,

AND ACCOUNTABILITY
WHEREAS, the City of El Cerrito, California, values human life, dignity, civil liberties, and the right of all residents to live free from fear and violence, regardless of immigration status; and
WHEREAS, the recent fatal shootings of Alex Pretti and Renée Good by ICE agents in the City of Minneapolis, Minnesota, as well as other incidents involving federal immigration enforcement activities across the country, have resulted in the loss of life, trauma to families and communities, and widespread public concern and outrage; and WHEREAS, these incidents have prompted grief, peaceful protest, and calls for transparency, accountability, and ending ICE’s occupation of Minneapolis; and WHEREAS, the City of El Cerrito recognizes that effective public safety depends on strong relationships between residents and local institutions, and that fear of immigration enforcement undermines crime reporting, emergency response, and community well-being; and
WHEREAS, the City of El Cerrito affirms the fundamental rights to peaceful protest, due process, and equal protection under the law, regardless of immigration status; and WHEREAS, cities across the United States share a responsibility to stand together in moments of national tragedy and to support one another in the pursuit of justice, transparency, and community well-being.

NOW, THEREFORE BE IT RESOLVED, the City Council of the City of El Cerrito hereby expresses its solidarity with the City of Minneapolis and its residents, and extends its condolences to the families, loved ones, and communities affected by these tragic events.

BE IT FURTHER RESOLVED, that the City Council supports calls for transparent, independent, and impartial investigations into the recent shootings, and urges that all lawenforcement actions be evaluated consistently with constitutional protections, civil rights, and community safety.

BE IT FURTHER RESOLVED, that the City Council affirms its commitment to policies and practices that uphold human dignity, limit the use of force, and promote accountability, while respecting the role of local governments in protecting their residents.

Agenda Packet Page 184 of 324
Agenda Item No. 6.G.

BE IT FURTHER RESOLVED, that the City Council reaffirms its support for peaceful civic engagement and democratic expression, recognizing these as essential to a healthy and just society.

BE IT FURTHER RESOLVED, that the City Council calls on Congress to stop funding ICE.

BE IT FURTHER RESOLVED, that the City Clerk shall transmit a copy of this resolution to the City of Minneapolis, United States Representative John Garamendi, Senator Alex Padilla, and Senator Adam Schiff.

BE IT FURTHER RESOLVED that this resolution shall become effective immediately upon passage and adoption.

I CERTIFY that at a regular meeting on February 3, 2026 the City Council of the City of El Cerrito passed this Resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
________________________
Holly M. Charléty, City Clerk
APPROVED:
____________________
Gabe Quinto, Mayor
.

Agenda Packet Page 185 of 324

AGENDA BILL
Agenda Item No. 6.H.

Date: February 3, 2026
To: El Cerrito City Council
From: A’shanti Coleman, Management Assistant; Yvetteh Ortiz, Public Works Director/City Engineer, Public Works Department
Subject: Amendment to Existing Agreement with Avila Project Management for On-Call Engineering and Project Management Services

ACTION PROPOSED
Adopt a resolution authorizing the City Manager to execute an amendment to the existing agreement with Avila Project Management for on-call engineering and project management services, increasing the contract amount by $200,000, bringing the total not-to-exceed amount to $450,000 in Fiscal Year 2025-26.

BACKGROUND
The City regularly requires the assistance of consulting firms to provide a range of engineering services and deliver capital projects. The type of work performed by these firms varies in scope and duration. The work may be an urgent, short-term assignment or may be part of a larger capital project or planning process. As a result, agreements for on-call services with multiple consulting firms are appropriate to allow for prompt procurement of services and to cover a variety of specialties as needs arise.

In February 2024, City staff issued a Request for Qualifications (RFQ) seeking qualified consultants to provide on-call engineering and project management services. Nine firms emerged as the most qualified to provide the required services. Subsequently, the City Council authorized the City Manager to execute consulting agreements with BKF Engineers, CSW/Stuber-Stroeh Engineering Group (CSW), Avila Project Management, Pakpour Consulting Group, Nichols Consulting Engineers (NCE), and Kimley- Horn and Associates, Inc., Bellecci DBA Sanbell-Bay Area, Tetra Tech, and Theis Engineering and Associates, Inc. for three years with the option to extend for up to two additional years in amount not to exceed $250,000 per fiscal year (Resolutions 2024-36, 2024-43, and 2024-61).

The scope of services provided by these firms includes, but is not limited to, design development and cost estimating, detailed design with preparation of plans, specifications and estimates, feasibility and alternative analysis, management and reporting for capital projects and associated grant funding, and review of land development plans, among other engineering support and staff augmentation services.

Over the last couple of years, the Public Works Department has more heavily relied on consulting firms to augment staffing levels due to the number and variety of projects underway as well as backfill staff vacancies.

Agenda Packet Page 186 of 324
Agenda Item No. 6.H.

ANALYSIS
Each on-call agreement is written as a master agreement, with specific scopes and fees determined on a task order basis. As needs arise, one or more of the firms are asked to submit a proposal on the scope, schedule, and fee for an individual task, depending on its complexity and specialty required. Once a proposal is agreed upon, City staff execute a task order to begin work.

To meet current and anticipated needs, City staff requests that the City Council authorize the City Manager to increase the contract authority for Avila Project Management by $200,000, bringing the total not-to-exceed amount to $450,000 in Fiscal Year 2025-26. Task orders issued to Avila Project Management in Fiscal Year 2025-26 are summarized below.

Task Order No. 17 - Access Modifications, Sidewalk, and ADA (PreConstruction)$17,500 Task Order No. 18 - 2025 Surface Seal Project $48,000
Task Order No. 19 - Access Modifications, Sidewalk, and ADA (Construction)
$114,689
Task Order No. 20 - Miscellaneous Maintenance Projects $25,000 Task Order No. 21 - 2026 Surface Seal Project (Initial Design) $34,704 Total Amount Authorized $239,893
Additional services are needed for the detailed design and bidding of the 2026 Surface Seal Project and to partially backfill current staff vacancies. This firm continues to provide efficient and effective project management and engineering services given its extensive experience working with the City and familiarity with the City’s processes and needs. This increase in contract authority will allow City staff to continue issuing task orders to maintain timely delivery of projects and engineering services.

STRATEGIC PLAN CONSIDERATIONS
This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization by performing engineering services and delivering capital projects in a professional, efficient, and timely manner.

ENVIRONMENTAL CONSIDERATIONS
This proposed action will not result in a project as defined by the California Environmental Quality Act (CEQA). No further environmental review is needed.

Agenda Packet Page 187 of 324
Agenda Item No. 6.H.

FINANCIAL CONSIDERATIONS
No funding is being requested as a part of this action. An executed agreement and any amendments does not guarantee any task orders will be issued, and the firm will only perform work that has been approved in a task order. Each task order will be subject to funding available for a specific project in the Capital Improvement Program or department operating budgets, which are both approved by the City Council as part of the annual budget or mid-year update.

LEGAL CONSIDERATIONS
The City Attorney has reviewed this action and found that legal considerations have been addressed, and will review and approve the final form of the amendment.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Resolution
Agenda Packet Page 188 of 324
RESOLUTION NO 2026-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING

THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING

AGREEMENT WITH AVILA PROJECT MANAGEMENT FOR ON-CALL ENGINEERING

AND PROJECT MANAGEMENT SERVICES, INCREASING THE CONTRACT AMOUNT BY $200,000 BRINGING THE TOTAL NOT-TO-EXCEED AMOUNT TO $450,000 IN FISCAL YEAR 2025-26
WHEREAS, the City regularly requires the assistance of consulting firms to provide a range of engineering services and deliver capital projects; and WHEREAS, it is common for cities to enter into one or more agreements for these services on an on-call basis; and
WHEREAS, Resolutions No. 2024-36, 2024-43, and 2024-61 authorized the City Manager to execute agreements with multiple firms to provide on-call engineering and project management services for an amount not to exceed $250,000 per fiscal year for each firm; and

WHEREAS, additional engineering and project management services are needed for the 2026 Surface Seal Project and other miscellaneous projects, and Avila Project Management has extensive experience working with the City and continues to provide efficient and effective services; and
WHEREAS, this increase in contract authority will allow the City to issue task orders to maintain timely delivery of projects and engineering services; and WHEREAS, each task order issued under the agreement will be subject to funding available for a specific project in the Capital Improvement Program or department operating budgets, which are both approved by the City Council as part of the annual budget or mid-year update.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of El Cerrito that the City Manager is hereby authorized to amend the agreement with Avila Project Management to increase the contract amount by $200,000 bringing the total not-toexceed to $450,000 in Fiscal Year 2025-26.

BE IT FURTHER RESOLVED that this resolution shall become effective immediately upon passage and adoption.

I CERTIFY that at a regular meeting on February 3, 2026 the City Council of the City of El Cerrito passed this Resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Agenda Packet Page 189 of 324
IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
________________________
Holly M. Charléty, City Clerk
APPROVED:
________________________
Gabe Quinto, Mayor
Agenda Packet Page 190 of 324

AGENDA BILL
Agenda Item No. 6.I.

Date: February 3, 2026
To: El Cerrito City Council
From: Jennifer Bright, Management Assistant; Melanie Mintz, Community Development Director, Community Development Department
Subject: Amendment to Existing Professional Services Contract with TRB + Associates for On-Call Inspection, Plan Check, and Other Jurisdictional Services

ACTION PROPOSED
Adopt a resolution authorizing the City Manager to execute an amendment to the professional services contract with TRB + Associates increasing their contract authority from $500,000 to $950,000 for fiscal year 2026 to provide inspection, plan check and other jurisdictional services.

BACKGROUND/ANALYSIS
The City regularly requires the assistance of vendors to provide a range of jurisdictional services and deliver projects. The type of work performed by these firms varies in scope and duration. The work may be an urgent, short-term assignment or may be part of a larger project, planning process, or specialty services. As a result, agreements for oncall services with multiple consulting firms are appropriate to allow for prompt procurement of services and to cover a variety of specialties as needs arise.

The Community Development Department established on-call contracts with multiple vendors (Resolutions 2017-24 and 2023-67) to facilitate the provision of various services in Building, Planning, Engineering, and the Fire Department in order to effectively and efficiently respond to service needs. The contracts were established after a Request for Qualifications (RFQ) process (Resolution 2023-67) to establish a list of qualified vendors that could provide the City with needed building inspection, residential rental inspection, plan check, solar plan review, engineering technician, and related specialty services on an as-needed basis. Multiple vendors were qualified in order to assure the City’s needs could be met in a timely fashion. The vendors assist the City by providing plan check services for large and specialized projects, ensuring timely delivery of services, and filling staff vacancies due to illness, vacation, and/or unfilled positions.

Utilization of the contracts is based upon available budget, the number and type of projects that arise in a given year, and specialization.

Not-to-exceed amounts per vendor were established based on staff’s best estimates at the time for which vendors would be available for anticipated work. Due to qualifications of available personnel to match the City’s needs, the Department has previously returned to the City Council to modify specific contract amounts with the most responsive vendors. Resolution 2023-67 provided for returning to the City Council with a contract amendment if the cost of a series of tasks with any one firm exceeds the Agenda Packet Page 191 of 324
Agenda Item No. 6.I.
contract amount in one year. Resolution 2024-88 authorized the City Manager to execute an amendment to the contract with TRB + Associates to increase the contract authority to an amount not to exceed $500,000 per fiscal year.

TRB + Associates has successfully provided permit technician, plan check, and Building Official staffing services as well as outside plan check for several larger projects. To meet current and anticipated needs, City staff requests that the City Council authorize the City Manager to increase the contract authority for TRB + Associates by $450,000, bringing the total not-to-exceed amount to $950,000 in Fiscal Year 2025-26. This increase in contract authority will allow City staff to continue to maintain timely delivery of staffing and plan check services. This firm continues to provide efficient and effective services given its experience working with the City and familiarity with the City’s processes and needs.

STRATEGIC PLAN CONSIDERATIONS
This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization by enabling the City to provide services in a professional and timely manner.

ENVIRONMENTAL CONSIDERATIONS
The proposed action does not constitute a project as defined by the California Environmental Quality Act (CEQA). No further environmental review is needed.

FINANCIAL CONSIDERATIONS
There are no funds being requested as part of this action. The adopted FY 2025-26 Department operating budget includes sufficient funding for the proposed increase in the not-to-exceed amount for this contract. Costs for plan check and inspection services are covered by fees established in the Master Fee Schedule.

LEGAL CONSIDERATIONS
The proposed action has been reviewed by the City Attorney and there are no additional legal considerations.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Resolution
Agenda Packet Page 192 of 324
RESOLUTION 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING ON-CALL PROFESSIONAL SERVICES AGREEMENTS WITH TRB + ASSOCIATES TO MODIFY THE TOTAL NOT-TO-EXCEED AMOUNT FROM $500,000 AUTHORIZED BY RESOLUTION 2024-88 TO $950,000 FOR FY26 WITH NO

ADDITIONAL BUDGET APPROPRIATIONS REQUIRED
WHEREAS, Resolution 2023-67 authorized the City Manager to execute professional services agreements with multiple qualified consultants to provide services on an on-call basis with an annual not to exceed amount of $2,000,000 for all consultants for a period of three years with an option to extend for an additional two years. Funding for the consultant services is part of the departmental operating budgets adopted by Council annually; and
WHEREAS, Resolution 2023-67 specified various not-to-exceed amounts on a per vendor basis and specified that if the cost of a series of tasks with any one firm exceeds the contracted amount in one year, staff will bring a contract amendment before the City Council for approval; and
WHEREAS, Resolution 2024-88 authorized the City Manager to execute an amendment to the professional services agreement between the City and TRB + Associates to increase the contract authority to an amount not to exceed $500,000 per fiscal year; and
WHEREAS, for FY26, due to the mix of services needed by the City and the availability of TRB + Associates personnel, an additional $450,000 contract authority is required to continue to efficiently and effectively meet service delivery and operational needs; and
WHEREAS, no additional budget is required as the requested contract authority is accounted for in the departments’ operating budgets;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that the City Manager is hereby authorized to approve an amendment to the existing on-call professional services agreement with TRB + Associated from $500,000 to a total not-toexceed amount of $950,000 BE IT FURTHER RESOLVED that this resolution shall become effective immediately upon passage and adoption.

Agenda Packet Page 193 of 324
I CERTIFY that at a regular meeting on February 3, 2026 the City Council of the City of El Cerrito passed this Resolution by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on .
________________________
Holly M. Charléty, City Clerk
APPROVED:
________________________
Gabe Quinto, Mayor
Agenda Packet Page 194 of 324

AGENDA BILL
Agenda Item No. 8.A.

Date: February 3, 2026
To: El Cerrito City Council
From: Alexandra Orologas, Assistant City Manager, City Management; Dane Hutchings, Founder & CEO, California Public Policy Group Subject: 2026 State Legislative Platform

ACTION PROPOSED
Adopt the proposed 2026 State Legislative Platform for the City of El Cerrito.

On February 18, 2025, the City Council reviewed and provided direction on the City of El Cerrito’s first State Legislative Platform. Following Council input, the City’s legislative advocate, California Public Policy Group (CPPG), worked with City staff to refine and update the Legislative Platform to reflect Council feedback, emerging legislative issues, and the City’s current strategic priorities. On April 1, 2025, the City Council formally adopted the 2025 State Legislative Platform.

The proposed 2026 State Legislative Platform (Exhibit A) builds upon the framework adopted in 2025 and continues to serve as a guiding document for the City’s state-level advocacy efforts. CPPG tracks, reviews, and analyzes introduced and amended legislation and advocates on legislation and state budget issues that may impact the City of El Cerrito. Maintaining a legislative advocate with a physical presence in Sacramento is important for monitoring legislation and funding opportunities that could affect the City, as well as for building relationships with elected officials and their offices to ensure the City’s priorities are effectively communicated. A key component of CPPG’s scope of work is the development and annual review of the City’s Legislative Platform, which provides a clear policy foundation to support timely engagement on legislation that may directly or indirectly impact the City’s priorities, programs, and operations. Legislative Advocacy letters from 2025 can be accessed on the City's State Legislative Platform website.

Key updates and changes reflected in the proposed 2026 State Legislative Platform (in tracked changes) include the addition of a new opposition statement clarifying the City’s position on protecting its authority to levy real estate and documentary transfer taxes. In addition, revisions were made to community safety-related statements that strengthen first responder safety and preparedness by addressing the unique risks associated with electric vehicle and lithium-ion battery incidents, including exposure protections and updated safety standards. Staff welcome any additional feedback on the proposed 2026 State Legislative Platform prior to City Council consideration.

The proposed 2026 State Legislative Platform provides a comprehensive and flexible policy framework that enables the City to proactively engage in the state legislative process while ensuring that advocacy positions remain consistent with City Council Agenda Packet Page 195 of 324
Agenda Item No. 8.A.
direction. Adoption of the Platform will allow the City to respond in a timely manner to legislative proposals that may impact the City’s programs, operations, fiscal health, and community priorities. The proposed Legislative Platform also reaffirms the City’s advocacy process, including the authority for the Mayor (or Mayor Pro Tem, in their absence) to sign advocacy letters when positions are clearly consistent with the adopted platform, and the requirement that any item falling outside the platform be brought forward to the City Council for consideration.

The Legislative Platform is intended to remain a living document and will be brought forward annually to ensure it remains responsive to changing legislative and local conditions. In order for the City to continue participating effectively in the state legislative process and to clearly communicate its positions to state legislators, policymakers, regulatory agencies, and the public, staff recommends that the City Council adopt the proposed 2026 State Legislative Platform.

STRATEGIC PLAN CONSIDERATIONS
This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization; and
• Community Safety; and
• Livability and Belonging; and
• Infrastructure and Amenities; and
• Environmental Sustainability.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
This section is not applicable to this agenda item.

LEGAL CONSIDERATIONS
This section is not applicable to this agenda item.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. Proposed 2026 City of El Cerrito State Legislative Platform Agenda Packet Page 196 of 324
1 CITY OF EL CERRITO
PROPOSED 20265 STATE LEGISLATIVE PLATFORM

ADOPTED BY THE EL CERRITO CITY COUNCIL ON XX/XX/XXXX

PURPOSE
The City of El Cerrito’s 2025 State Legislative Platform confirms the City Council’s framework and views on current issues that have the potential to directly or indirectly impact the City. The legislative platform is a guiding document for the City to utilize to promote and preserve the City’s interests at the state level. It serves as the foundation of a focused advocacy strategy and reference guide for legislative positions and objectives that provide direction for the City Council and staff throughout the following year. The intent of the legislative platform is to codify a process that allows the City to maintain quick and sustained engagement on legislative issues important to the City. The platform is designed to clearly and precisely convey to state legislators, policymakers, and the public where the City stands on important policy issues.

The City will continue to work on the legislative platform in collaboration with constituents, legislative consultants, and elected representatives to ensure that the platform is a living document that is adjusted as the City’s priorities and goals evolve over time. City staff will coordinate with state advocacy services and regional partners as appropriate to monitor and assess legislative, administrative, and regulatory proposals and will take action in alignment with the adopted legislative platform to advance and protect the City’s interests, as necessary.

In advance of each new legislative session, or each year should the City Council request it, the Council will consider modifying its platform by taking into consideration emerging and ongoing legislative trends, issues emerging locally that may require state policy reform, the Council’s strategic priorities, or other factors deemed appropriate by the City to ensure its policy statements reflect the direction of the City Council.

LEGISLATIVE ADVOCACY POSITION ADOPTION
If the position is clearly consistent with the adopted platform, the City Manager is authorized to request the Mayor, or in absence of the Mayor the Mayor Pro Tem, to sign advocacy letters on behalf of the City without taking the item to the City Council. The City Council is then promptly notified of the position adopted by the City.

In the case where a pending state legislative proposal falls outside of the scope of the approved legislative platform or there is any ambiguity, that item will be placed on a future City Council agenda for review and consideration by the full City Council.

Agenda Packet Page 197 of 324
2 The City’s legislative positions, as further defined below, may be supported with additional advocacy efforts, including but not limited to:
• Position letters, including updating position letters as legislation is amended and/or advances through the process.
• Preparing staff and Council member testimony to legislative committees and other legislative and regulatory bodies.
• Meetings with Members and/or staff of the Legislature or with staff of regulatory agencies. • Attending meetings with state legislative, regulatory, and administrative agencies • Negotiating amendments/comments/policy on legislative, regulatory, or administrative actions.
• Seeking funding for key programs and City initiatives.

Individual Council Member Positions: This platform is not intended to limit the prerogative of individual Council members from expressing their individual support for or opposition to any Local measure, or State proposition, State or Federal legislation, or grassroots advocacy actions.

However, in doing so, the member shall clearly state that they are speaking for themselves, not on behalf of the Council body or the City collectively.

Council members representing the City on regional or other bodies should use their discretion in taking formal action, particularly with respect to adopting formal advocacy positions on legislative proposals that relate to the City’s adopted legislative platform. Council members should provide legislative positions taken by regional or other bodies on which they serve to the City Clerk for distribution to the City Council.

Possible positions that can be adopted on legislation include:

Support: A support position indicates to the Legislature, regulatory agencies, and other stakeholders that the City is in favor of the legislation in question.

Oppose: An oppose position indicates to the Legislature, regulatory agencies, and other stakeholders that the City is against the legislation in question.

Oppose Unless Amended: An oppose unless amended position indicates to the legislature, regulatory agencies, and other stakeholders that the City is against the legislation in question, unless requested changes are adopted to address the City’s policy concerns.

Neutral: A neutral position indicates to the Legislature, regulatory agencies, and other stakeholders that the City has formally removed their prior adopted position due to changes being made to the legislation or proposal (e.g., a bill that the City had an “oppose unless amended” position on was amended to address the City’s concerns, therefore the City is formally withdrawing its opposition and moving to a “Neutral” position). A neutral position therefore indicates that the City is impartial on the legislation in question.

Sponsor: A sponsor position indicates to the Legislature, regulatory agencies, and other stakeholders that the City is not only in strong support of the legislation in question but is Agenda Packet Page 198 of 324
3 publicly leading the advocacy effort. This position is only used when a Member of the Legislature has agreed to author a specific legislative proposal on behalf of the City.

Watch: A watch is an internal position which indicates that the City is closely monitoring and evaluating the legislation in question. Should factors change, the City reserves the right to adopt a formal external position.

LEGISLATIVE PLATFORM STATEMENTS
This platform is guided by the El Cerrito Strategic Plan 2024-2029, including the Vision, Mission, and Values statements adopted by the City Council, as well as the Goals, Goal Statements, and specific Strategies identified in the Plan.

Legislative policy statements will allow City staff to address legislative and regulatory issues in a timely manner. All legislative platform statements have been grouped within a goal of the 2024- 2029 Strategic Plan.

High-Performing Organization
Ensure the City maintains a strong financial position and a high-performing organization where employees feel a sense of inclusion and belonging

1. Support legislation that provides the ability to conduct public meetings using a hybrid approach of remote and in-person options.

2. Support legislation that lowers the voting threshold for raising funding for public infrastructure or services.

3. Support legislation that promotes the public’s right to access records while considering both the fiscal and operational constraints of the organization.

4. Oppose legislation that would negatively impact the City’s finances, responsibilities, or legal authority.

5. Oppose legislation or ballot measures that would reduce, eliminate, or otherwise limit the City’s authority to levy real estate or documentary transfer taxes.

5.6. Monitor and evaluate legislation that impacts the City’s ability to enter into contract specialized service agreements and/or retain temporary employees as needed.

Community Safety
Maintain public safety responsiveness and ensure community emergency preparedness.

1. Support legislation and funding mechanisms that promote and incentivize home hardening and fuels mitigation.

2. Support legislation and funding mechanisms that allow for increased fuels mitigation.

3. Support legislation and funding that promotes responsible, proven crime-fighting technology.

4. Support legislation and funding mechanisms that prevent and reduce drug related crimes while providing proactive funding tools needed to combat the opioid and fentanyl crisis— including the creation of substance abuse education and treatment programs.

Agenda Packet Page 199 of 324
4 5. Support legislation that promotes funding for training and wellness of Police Officers and Firefighters.

6. Support legislation and funding that provides resources, training, and protections for first responders exposed to toxic substances resulting from electric vehicle and lithium-ion battery incidents.

6.7. Support legislation that aligns building codes, fire codes, and product safety standards with the unique fire and explosion risks associated with electric vehicle and lithium-ion battery charging infrastructure.

7.8. Oppose legislation that seeks to reduce the City’s adopted Fire Hazard Abatement Program and vegetation management standards, as well as any proposals aimed at eliminating state fire hazard severity zones without allowing local authorities to grant exemptions based on specific characteristics.

8.9. Oppose legislation that restricts the police department’s ability to maintain encrypted communication when necessary to its fundamental operations—and support funding efforts for mandated encryption requirements.

9.10. Support legislation and/or funding mechanisms that promote the creation and use of emergency operations and community resilience centers.

10.11. Support legislation that promotes more efficient and effective ambulance response times.

Livability and Belonging
Promote a high quality of life and sense of community for current and future generations

1. Support legislation and increased funding that rewards Prohousing designated jurisdictions.

2. Support legislation that takes a comprehensive approach to housing production, recognizing all factors that contribute to the State’s housing crisis, and works to close the economic gap, ensuring projects are feasible without imposing excessive financial burdens on cities.

3. Support legislation that permits flexibility for cities over the entitlement process.

4. Support legislative and/or funding proposals to humanely support unhoused populations including multi-jurisdictional outreach and mental health programs.

5. Support legislation that promotes affordable home insurance rates for at-risk residents.

6. Support and advocate funding for the development of accessible and inclusive parks and recreational spaces for all community members, including compliance with ADA standards.

7. Support legislation that supports senior services to enhance the quality of life for older adults.

8. Oppose legislation that penalizes cities that have been acting in good faith to support housing.

9. Oppose legislation that will increase the cost of the Regional Housing Needs Assessment process for Prohousing designated local agencies.

Agenda Packet Page 200 of 324
5 10. Support legislation that promotes walkable and/or bikeable communities.

11. Support legislation that provides funding for the development, maintenance, rehabilitation, and environmental sustainability of parks, recreation facilities, and open spaces consistent with the El Cerrito Parks and Recreation Facilities Master Plan and other related City planning efforts.

Infrastructure and Amenities
Advance climate-focused, sustainable infrastructure efforts that have community benefit.

1. Support legislation that provides funding mechanisms for public library facilities and programs.

2. Support legislation and/or funding mechanisms that will aid the City in needed upgrades and/or replacement of the City’s main Public Safety Building.

3. Support legislation and funding mechanisms that promote or facilitate interregional transportation projects and cooperation.

4. Support legislation and/or funding mechanisms that promote, sustain, and expand service levels of BART, AC Transit, and other regional transit providers.

5. Support legislation and/or funding mechanisms that promote complete streets programs and street improvements at the state and local levels.

6. Support legislation that promotes the proper and cost-effective disposal of solid waste.

7. Support legislation and funding that supports pragmatic management and implementation of clean water programs and stormwater infrastructure.

8. Support legislation that supports and enables City services for children, including childcare, summer camps, and other youth-focused programs.

9. Oppose legislation that substantially increases vehicle capacity on roads without equal investment in supporting transit and alternatives that lessen vehicle demand.

10. Support legislation that increases the reliability and stability of electrical grids.

Environmental Sustainability
Promote environmental sustainability and stewardship by engaging in initiatives that reduce our carbon footprint, conserve natural resources, and foster a culture of environmental responsibility.

1. Support legislation and funding mechanisms that facilitate the implementation of the City’s Climate Action & Adaption Plan to achieve Carbon Neutrality by 2045.

2. Support legislation that promotes the creation, management, funding, and maintenance of urban greening projects and urban forests, including street trees, parks, and open spaces.

3. Support legislation that facilitates and funds infrastructure to support electric vehicle charging.

4. Support legislation and regulatory policies that support Community Choice Aggregation (CCA) autonomy in policymaking and decision-making.

5. Support energy efficiency programs tailored to address local needs and concerns.

Agenda Packet Page 201 of 324

AGENDA BILL
Agenda Item No. 8.B.

Date: February 3, 2026
To: El Cerrito City Council
From: Claire Coleman, Budget and Financial Services Manager; Crystal Reams, Finance Director/City Treasurer, Finance Department
Subject: FY 2025-26 Second Quarter General Fund Budget Update through December 31, 2025

ACTION PROPOSED
Receive and file an update on City General Fund revenues and expenses for FY 2025- 26 through December 31, 2025.

BACKGROUND AND ANALYSIS
The El Cerrito City Council adopted an annual Budget for FY 2025-26 on June 17, 2025, as part of the FY 2024-25 and 2025-26 Biennial Budget. The Council has closely monitored the City’s budget and financial position and directed City staff to submit quarterly General Fund financial update reports. The attached FY 2025-26 Second Quarter General Fund Update reflects the second quarter of revenues collected and expenditures completed by the City.

The report shows the second quarter revenues at $22.7 million (42% of budget) and expenditures at a total of $28.4 million (52% of budget). The projected year-end total General Fund Balance is estimated to be $22.6 million. This includes $7.5 million designated for the Emergency Disaster Relief Fund (EDRF) and $3 million in the Section 115 Trust, and represents 36% of expenditures (excluding the Section 115 Pension Trust) and 41% (including the Section 115 Pension Trust).

Staff have calculated these numbers based on the most current information as of the date of the report, but it is important to note that City revenues and expenditures are highly cyclical and vary throughout the year. Some major expenses are paid up front at the beginning of the fiscal year, including insurance premiums, while most major revenue types (property taxes, sales taxes, utility taxes) are received on a lag.

STRATEGIC PLAN CONSIDERATIONS
This action supports the City’s Strategic Plan Goal(s) of:
• High Performing Organization by ensuring the City maintains a strong financial position – and will allow the City Manager to develop a plan to ensure that Citywide revenue meets the cost of providing Citywide services, including adequate reserves in the face of significant unanticipated revenue shortfalls; and ensures procedures that represent best practices in financial management.

Agenda Packet Page 202 of 324
Agenda Item No. 8.B.

ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.

FINANCIAL CONSIDERATIONS
The FY 2025-26 General Fund Second Quarter Update reflects revenues totaling $22.7 million (42% of budget), and expenditures of a total of $28.4 million (52% of budget).

The projected year-end total fund balance is estimated to be $22.6 million; this includes $7.5 million designated for the EDRF and $3 million in the Section 115 Trust.

LEGAL CONSIDERATIONS
This section is not applicable to this agenda item.

Reviewed by:

Karen Pinkos, City Manager
Attachments:

1. FY 2025-26 2nd Quarter General Fund Update
Agenda Packet Page 203 of 324