Agenda packet — Folsom City Council, March 24, 2026 (part 3 of 7)

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Inventories – General fund inventories are recorded as expenditures when consumed rather than when purchased. These inventories are valued at average cost using the first-in first-out method Inventories, as reported in the fund financial statements, are offset by a nonspendable fund balance to indicate they do not constitute resources available for appropriation.

Insurance deposits – Amounts advanced by the City to the insurance joint powers authority to provide for payment of claims within the City’s self-insured retention layer (“banking layer”) are accounted for using the deposit method and are reported as insurance deposits in the City’s risk management fund to the extent that cumulative payments to the pool are more than cumulative paid and unpaid claims. To the extent that cumulative payments to the pool are less than required to pay cumulative paid and unpaid claims, the City would report an outstanding claim liability. These advances are refundable to the extent that outstanding claims and expenses under the terms of its contract have been satisfied.

Land held for resale – Represents land acquired by the Folsom Housing Special Revenue Fund for low and moderate income housing. The asset is valued at net realizable value.

Restricted Assets – Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future facilities augmentation costs.

Investments Held in Trust – Represent the investments held for repayment of special assessment district’s debt.

Capital Assets – Capital assets, which include land, buildings, improvements, equipment, infrastructure assets (e.g. roads, bridges, sidewalks, and similar items) and intangible assets (e.g. easements), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. The City defines capital assets, as assets with an initial, individual cost of more than $5,000. Capital assets are recorded at historical cost.

Donated or contributed assets are recorded at their acquisition value.

The costs of normal maintenance and repairs that do not add value to the asset or materially extend assets lives are not capitalized.

Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale.

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Capital assets are depreciated using the straight-line method over the following useful lives:

Years
Specialty equipment and vehicles 3-20
Computer and office equipment 3-7
Construction equipment 10-20
Buildings, facilities and improvements 10-40
Roads (surface only) 10-20
Utility underground systems 33-40
Bridges 30-50
Software 3-7
Easements (includes land underneath roadways) Indefinite Land Indefinite

Compensated Absences – Compensated absences are recorded in accordance with GAAP.

Only vested or accumulated compensated absences that are expected to be due or mature are reported as an expenditure and fund liability of the governmental fund that will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Amounts of vested or accumulated compensated absences that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities of the Government-Wide Financial Statement. Vested or accumulated compensated absences of proprietary funds are recorded as an expense and liability of those funds as the benefits accrue to employees.

All employees currently earn a combined annual leave in lieu of vacation and sick leave, in an amount determined by their representing labor group or contract. Management employees receive ten days of management leave annually, which does not carry over. Overtime may be accrued by non-management employees as compensatory time. Some employees retain sick leave banks earned prior to the annual leave implementation. It is City policy that an employee may carry over accrued vacation and sick leave into the following calendar year. Upon termination, employees are entitled to a lump-sum payment for accrued annual leave hours and compensatory time.

Sick leave is deemed to be vested upon minimum PERS retirement age. Accumulated vested sick leave is paid according to the Memorandum of Understanding covering each employee. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

In accordance with GASB Statement No. 101, 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 (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. The liability includes vacation leave and sick leave expected to be used or paid upon termination, retirement, or death. The City uses the first-in, first-out (FIFO) method to estimate the amount of compensated absences expected to be used or paid. 58

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Long-term Obligations – In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable statement of net position. 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 bond premium or discount. Bond issuance costs, other than prepaid insurance, are expensed in the year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.

Leases - Lessee: The City is a lessee for three equipment leases. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City’s policy is to recognize lease liabilities with an initial, individual value of $10,000 or more.

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 the lease term.

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 and any extensions that are deemed reasonably certain to be exercised. 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 leases and will remeasure lease assets and liabilities if certain changes occur that are expected to significantly affect the amount of the lease liabilities.

Lease assets are reported with other capital assets and lease liabilities are reported with long- term liabilities on the statement of net position.

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Lessor: The City is a lessor of a building and ten cellular towers. The City recognizes lease receivables and deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

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

 The City uses 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 and any extensions that are deemed reasonably certain to be exercised. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

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

Subscription-Based Information Technology Arrangements - The City reports a subscription liability and an intangible right-to-use capital asset (known as the subscription asset) on the government-wide financial statements for a subscription-based information technology arrangement (SBITA). The City’s policy is to recognize subscription liabilities with an initial, individual value of $10,000 or more.

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

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

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued  The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.

 The SBITA term includes the noncancellable period of the SBITA and any extensions that are deemed certain to be exercised. Subscription payments included in the measurement of the subscription liability are composed of fixed payments to the SBITA vendor.

The City monitors changes in circumstances that would require a remeasurement of its SBITAs and will remeasure subscription assets and liabilities if certain changes occur that are expected to significantly affect the amount of the subscription liabilities.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position.

Deferred Outflows/Inflows of Resources – In addition to assets, the statement of net 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 or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. One is the deferred outflow related to pensions reported in the Statement of Net Position – Governmental Activities and Business-type activities, described in detail in Note 13. Second is the deferred amount on refunding reported in the Statement of Net Position - Proprietary Funds. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The last one is deferred outflows related to OPEB reported in the Statement of Net Position – Governmental Activities and Business-type activities, described in detail in Note 14.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net assets that applies to a future period and so will not be recognized as revenue until then. The City has four items that qualify for reporting in this category. The first one is deferred inflow related to pensions reported in the Statement of Net Position – Governmental Activities and Business-type activities, described in detail in Note 13.

The second is a deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The third one is deferred inflows related to OPEB reported in the Statement of Net Position – Governmental Activities and Business-type activities, described in detail in Note 14. The last one is deferred inflows related to leases results from the implementation of GASB statement 87, described in detail in Note 7. This amount is deferred and recognized as revenue over the lease term.

Encumbrances – Encumbrance accounting, under which purchase orders, and other commitments for the expenditure of funds are recorded in order to reserve that portion of fund balance, is employed in the governmental fund types. Encumbrances are reported as assigned, restricted, or committed fund balance since they do not constitute expenditures or liabilities. 61

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fund Equity – The City has established fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The City established the following classifications and definitions of fund balance:

Nonspendable – Resources that cannot be spent because they are not in an expendable form (e.g. prepaid asset, inventory) or must be maintained intact (e.g. endowment principal).

Restricted – Resources that are constrained to specific purposes by an external provider (e.g. grantors, contributors, governmental laws and regulations) or by constitutional provisions or enabling legislation.

Committed – Resources with self-imposed limitations, evidenced by the City’s formal action (ordinance), and require both the approval of the highest level of decision making authority (City council) and the same formal action to remove or modify the limitations. Includes legally enforceable multi-year contracts not yet spent and specific agreements approved but not yet executed.

Assigned – Resources with self-imposed limitations but do not require approval by the highest level of decision making authority or the same level of formal action to remove or modify limitations. This responsibility has been delegated to the Finance Director/CFO by the City Council.

Unassigned – Resources that cannot be reported in any other classification. The General Fund is the only fund that reports a positive unassigned fund balance amount.

The City’s spending priority is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance.

Refer to Note 12 for additional details regarding the City’s classification of fund balance.

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

Pensions – 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 (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.

Postemployment Benefits Other Than Pensions (OPEB) – For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City of Folsom Retiree Health Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefits payments are recognized 62

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued currently due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.

Effect of New Governmental Accounting Standards Board (GASB) Pronouncements – Effective in Current Fiscal Year

 GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The City has implemented this statement in the current fiscal year.
 GASB Statement No. 102 – Certain Risk Disclosures – The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. This statement is not applicable to the City in the current fiscal year.

2. CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash, cash equivalents and investments totaled $633,350,760 as of June 30, 2025, for the primary government and fiduciary funds. Each fund's portion of this total is reflected in the balance sheet accounts entitled Cash and cash equivalents, cash with fiscal agent, investments held in trust, restricted cash and cash equivalents and restricted cash with fiscal agent. The City maintains a cash and investment pool that is available for use by all funds. Each fund’s portion of the pool is displayed on the balance sheet (governmental funds) and the statement of net position (proprietary funds and fiduciary funds) as “cash and investments or cash equivalents” Total City deposits and investments at fair value as of June 30, 2025 are reported below and on the following page:

Fiduciary Funds
Governmental Business-Type Statements of
Activities Activities Total Net Position Total
Cash, cash equivalents and investments 240,848,070$ 95,053,297$ 335,901,367$ 47,616,572$ 383,517,939$ Investments held in trust 195,483,724 - 195,483,724 - 195,483,724 OPEB Plan Investments - - - 12,296,103 12,296,103 Restricted cash and investments 557,300 526 557,826 41,495,168 42,052,994 436,889,094$ 95,053,823$ 531,942,917$ 101,407,843$ 633,350,760$

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued Fair Value
City of treasury deposits
Deposits 8,000,966$
Petty cash 7,977
Total city of treasury deposits 8,008,943
City treasury investments
Certificates of Deposit 15,805,755
Commercial Paper 4,994,900
Corporate Notes (Bank of America) 3,942,020
Corporate Notes (Bank of Montrel) 2,919,840
Corporate Notes (Bank of Montrel) 1,994,740
Corporate Notes (Inter-American) 1,000,350
Corporate Notes (Intl Finance Corp) 1,067,133
Corporate Notes (John Deere Capital Corp) 1,894,060
Corporate Notes (JP Morgan) 985,440
Corporate Notes (MassMutual Global) 1,020,070
Corporate Notes (Morgan Stanley) 1,002,820
Corporate Notes (Pacific Life GF II) 1,522,875
Corporate Notes (PNC Bank) 975,560
Corporate Notes (State Street Corp) 3,545,535
Corporate Notes (Toyota Motor Credit Corp) 3,987,386
Corporate Notes (USAA Capital Corp) 2,045,340
Corporate Notes (Wells Fargo Bank) 1,014,420
Federal Farm Credit Bank (FFCB) 15,483,055
Federal Home Loan Bank (FHLB) 32,058,220
Federal Home Loan Mortgage (FHLMC) 13,978,700
Federal National Mortgage (FNMA) 5,985,840
California Class 67,882,490
Local Agency Investment Fund (LAIF) 65,011,531
Money market mutual funds (WF) 19,242,707
Municipal obligations (City) 83,872,563
Municipal obligations (FRFA) 170,413,934
Municipal obligations (FPFA) 25,069,790
US Treasury Note 6,027,450
Total city treasury investments 554,744,524
Cash and investments with fiscal agents
JPA (CAMP) 234,913
Money market mutual fund 58,066,277
OPEB Plan Investments - Mutual Funds 12,296,103
Total Cash and investments with fiscal agents 70,597,293 Total Investments 625,341,817
Total cash and investments 633,350,760$

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued Cash Deposits – At June 30, 2025, the recorded amount of the City’s deposits was $8,000,966 and the bank balance was $9,535,083. As of June 30, 2025, the City’s deposits with financial institutions in excess of federal depository insurance limits was held in uncollateralized accounts.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The fair value of pledged governmental securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City has waived collateral requirements for cash deposits that are fully insured up to $250,000 by the FDIC.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on a monthly basis to the various funds based on month-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Investments

The table below identifies the investment types that are authorized for the City by California Government Code Section 53601 (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum
Maximum Maximum % Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Investment Fund (LAIF) N/A 100% $75M per account Bonds Issued by the City 5 years 100% None
U.S. Treasury Bills, Notes and Bonds 5 years 100% None
Registered State Warrants, Treasury Notes or Bonds of the State 5 years 100% None Bonds, Notes or Warrants of any Local Agency w ithin the State 5 years 100% None Federal Agency Securities or U.S. Government Sponsored Enterprise Obligations 5 years 100% None Supranational Obligations 5 years 30% None
Bankers Acceptances 180 days 40% 30%
Commercial Paper 270 days 40% 10%
Negotiable Certificates of Deposit 5 years 30% None
Non-negotiable Certif icates of Deposit 5 years 100% None Placement Service Deposits and Certificates of Deposit 5 years 50 None Repurchase agreements 1 year 100% None
Reverse Repurchase agreements 92 days 20% None
Medium Term Notes 5 years 30% None
Mutual Funds and Money Market Mutual Funds N/A 20% None Mortgage Backed or Consumer Pass-through Securities 5 years 20% None Shares of Beneficiary Interest issued by a JPA N/A 100% None Collaterized Bank Deposits 5 years 100% None
Bank/Time Deposits 5 years 100% None
Pooled Investment Funds N/A 100% None
Public Bank Obligations 5 years 100% None
Voluntary Investment Program Fund N/A 100% None
* Excluding amounts held by bond trustee that are not subject to Calif ornia Government Code Restrictions 65

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued Investments Authorized by Debt Agreements – Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Entity’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Type
Mazimum
Maturity
Maximum
Percentage
of Portfolio

Maximum
Investment
in One
Issuer
U.S. Treasury Obligations 5 years None None x x x x x x x x x x x x x x x U.S. Agency Securities 5 years None None x x x x x x x x x x x x x x x Banker's Acceptances 180 days 40% None x x x x x x x x x x x x x x x Commercial Paper 270 days None None x x x x x x x x x x x x x x x Negotiable Certificates of Deposit 5 years 30% None x x x x x x x x x x x x x x x Money Market Mutual Funds N/A 20% Multiple x x x x x x x x x x x x x x x Municipal obligations None None None x x n/a n/a n/a n/a n/a x x x x x n/a n/a x Pre-refunded municipal obligations None None None n/a n/a n/a n/a n/a n/a n/a n/a x n/a x x n/a x n/a State obligations None None None x x n/a n/a n/a x x x x x x x x x n/a Investment agreements - * None None None x x n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a x x x California Asset Management Program (CAMP) None None None n/a n/a x x x x x x n/a x x x x x n/a Local Agency Investment Fund (LAIF) N/A None None x x x x x x x x x x x x x x x Other *, *1 None None None n/a n/a x x x x x x n/a x x x x n/a x Cash (insured at all times by FDIC) None None None x x x x x x x x x x x x n/a n/a n/a Deposit Accounts (FDIC Insured) *3 None None None x x x x x x x x x x x x n/a n/a x Certificates of deposit 5 years 30% None n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a * With notice to Standard & Poor's and/or approved in w riting by the Bond Insurer and supported by opinions of counsel.
*1 including repurchase agreements
*2 No securities may be purchased on margin, adequate monies to meet cash flow requirements, and no more than 50% of City's total cash be invested for longer than one year.
*3 In Banks w hich have capital and surplus of at least $10,000,000 2022 FRFA (CFD 23 IA1)
2024 FRFA (CFD 18)
2019 FRFA (CFD 21)
2020 FRFA (CFD 23 IA1)
2021 FRFA (CFD 21)
2024 FRFA (CFD 23 IA4)
2021 Water
2019 Water
2012 FPFA ST REF BONDS
2015 FRFA (CFD 17)
2017 FPFA ST REF BONDS
2017 FRFA (CFD 19)
2018 FRFA (CFD 20)
2019 FRFA (CFD 19)
2016 RDA

Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy requires that at least 50 percent of the City’s investment portfolio mature in less than one year. An additional limitation is that investments with a maturity of more than five years must be specifically authorized by the City Council as required by government code. One of the ways that the City of Folsom manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion is maturing or coming close to maturing evenly over time as necessary to provide cash flow and liquidity needed for operations. At June 30, 2025, the City Treasury had the following investment maturities:

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued

City Treasury
Investment Type Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 5 to 10 10 to 15 More than 15 Certificate of Deposit 15,805,755$ 4,440,684$ 4,911,611$ 4,459,505$ 1,496,695$ 497,260$ -$ -$ -$ Commercial Paper 4,994,900 4,994,900 - - - - - - - Corporate Notes 96,423,404 19,472,045 19,809,226 16,018,730 16,208,873 24,914,530 - - - California Class 67,882,490 67,882,490 - - - - - - - LAIF 65,011,531 65,011,531 - - - - - - - Money Market Mutual Funds 19,242,707 19,242,707 - - - - - - - Municipal Obligations (City) 83,872,563 21,907,761 19,452,143 18,366,648 14,491,531 9,654,480 - - - Municipal Obligations (FRFA) 170,413,934 2,179,922 2,126,357 2,661,552 1,992,926 1,728,721 15,838,025 25,370,430 118,516,001 Municipal Obligations (FPFA) 25,069,790 - - - 17,242,444 - 7,827,346 - - US Treasury Note 6,027,450 3,000,030 - 3,027,420 - - - - - Total 554,744,524$ 208,132,070$ 46,299,337$ 44,533,855$ 51,432,469$ 36,794,991$ 23,665,371$ 25,370,430$ 118,516,001$ Fiscal Agent
Investment Type
JPA (CAMP) 234,913$ 234,913$ -$ -$ -$ -$ -$ -$ -$ Money Market Mutual Fund 58,066,277 58,065,751 - - - - - - - OPEB Plan Assets - Mutual Funds 12,296,103 12,296,103 - - - - - - - Total 70,597,293$ 70,596,767$ -$ -$ -$ -$ -$ -$ -$ Grand Total 625,341,817$ 278,728,837$ 46,299,337$ 44,533,855$ 51,432,469$ 36,794,991$ 23,665,371$ 25,370,430$ 118,516,001$ Investment Maturities (in Years)

Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations (NRSRO’s). It is in the City’s policy to limit its investments in these investment types to an “A” rating or higher issued by NRSRO’s, including raters Standard & Poor’s, and Moody’s Investors Services. At June 30, 2025, the City’s credit risks, expressed on a percentage basis, are presented on the following page.

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued

Moody's Credit S & P's % of
Investment Type Rating Rating Investments
Certificates of Deposit Not rated Not rated 2.53%
Commercial Paper P1 A1 0.80%
Corporate Notes (Bank of America) A2 A- 0.63%
Corporate Notes (Bank of Montrel) A2 Not rated 0.47%
Corporate Notes (Bank of Montrel) A2 AA- 0.32%
Corporate Notes (Inter-American) Aaa AAA 0.16%
Corporate Notes (Intl Finance Corp) Aaa AAA 0.17%
Corporate Notes (John Deere Capital Corp) A1 A 0.30%
Corporate Notes (JP Morgan) A1 A- 0.16%
Corporate Notes (MassMutual Global) Aa3 AA+ 0.16%
Corporate Notes (Morgan Stanley) Aa3 A+ 0.16%
Corporate Notes (Pacific Life GF II) A3 AA- 0.24%
Corporate Notes (PNC Bank) A2 A 0.16%
Corporate Notes (State Street Corp) Aa3 A 0.57%
Corporate Notes (Toyota Motor Credit Corp) A1 A+ 0.64%
Corporate Notes (USAA Capital Corp) Aa1 AA 0.33%
Corporate Notes (Wells Fargo Bank) Aa2 A+ 0.16%
Federal Farm Credit Bank (FFCB) Aa1 AA+ 2.48%
Federal Home Loan Bank (FHLB) Aa1 AA+ 5.13%
Federal Home Loan Mortgage (FHLMC) Aa1 AA+ 2.24%
Federal National Mortgage (FNMA) Aa1 AA+ 0.96%
US Treasury Note Aaa AA+ 0.96%
California Class Not rated Not rated 10.86%
Local Agency Investment Fund (LAIF) Not rated Not rated 10.40% Money market mutual funds (WF) Not rated Not rated 12.36% Municipal obligations (City) Aaa to A1 AAA to A+ 13.41% Municipal obligations (FRFA) Not rated Not rated 27.25% Municipal obligations (FPFA) Not rated Not rated 4.01%
JPA (CAMP) Not rated AAAm 0.04%
OPEB Plan Investment - Mutual Funds Not rated Not rated 1.97% 100.00%
1) Not all series rated

Concentration of Credit Risk – The California Government Code and the investment policy of the City contains limitations on the amount that can be invested in any one issuer. To mitigate credit risk in the investment portfolio, the City diversifies investments by security type and issuer. With the exception of U.S. Treasury securities, the Local Agency Investment Fund and bonds issued by the City, no more than 50% of the City’s total investment portfolio can be invested in a single security type or with a single issuer.

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued As of June 30, 2025, there is no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total entity investments.

Investments in Local Agency Investment Funds – The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in the pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized costs of that portfolio, as calculated monthly. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

The City’s investment in LAIF included a portion of the pool funds invested in collateralized mortgage obligations, mortgage backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government - sponsored enterprises, and corporations. These investments included the following:

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

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2025, the City had $65,011,531 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to

3.00% in the previous year. The LAIF fair value factor of 1.00119831 was used to calculate the fair value of the investments in LAIF.

Investments in CAMP – The City is a voluntary participant in the California Asset Management Program (CAMP). Oversight of CAMP is provided by a Board of Trustees, which consists of seven trustees. The trustees are appointed to the Board of Trustees from members of the governing body, officers, or full-time employees of a public agency that is a participant in the trust and approved annually by the participants. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by CAMP for the entire CAMP portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CAMP, which are recorded on an amortized cost basis.

Information regarding the amount of dollars invested in derivatives by CAMP was not available.

Page 324 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued Fair Value Measurements – Statement No. 72 of the Government Accounting Standards Board (“GASB”) Fair Value Measurements and Application , sets the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB 72 are described as follows:

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

Level 2 – Inputs to the valuation methodology include:
 Quoted prices for similar assets or liabilities in active markets.  Quoted prices for identical or similar assets or liabilities in inactive markets.  Inputs other than quoted prices that are observable for the asset or liability.  Inputs that are derived principally form or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk).

Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

The asset’s level with the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.

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

Page 325 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued

The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2025. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. The City’s Level 1 investments primarily consist of investments in U.S. Treasury Notes. When quoted prices in active markets are not available, fair values are based on evaluated prices received from the City’s Custodian of Assets, Trustee or Fiscal Agent.

For investments classified within Level 2 of the fair value hierarchy, the City’s custodians generally use a multidimensional relational model. Inputs to their pricing models are based on observable inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities, among others.

The City’s Level 3 investments primarily consist of debt investments, valued using the income approach to measuring fair value. This approach converts future amounts to a single current amount using a discounted cash flow.

Page 326 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued As of June 30, 2025, the City has the following recurring fair value measurements:

Quoted Prices in
Active Markets Significant Other Significant
for Identical Observable Unobservable
Balance at Assets Inputs Inputs
Investments by Fair Value Level 30-Jun-25 (Level 1) (Level 2) (Level 3) City Pooled Investments
Certificate of Deposit 15,805,755$ -$ 15,805,755$ -$ Commercial Paper 4,994,900 - 4,994,900 - Corporate Notes 28,917,589 - 28,917,589 - Municipal Obligations (City) 83,872,563 - 83,872,563 - Municipal Obligations (FRFA) 170,413,934 - - 170,413,934 Municipal Obligations (FPFA) 25,069,790 - - 25,069,790 Federal Farm Credit Bank (FFCB) 15,483,055 - 15,483,055 - Federal Home Loan Bank (FHLB) 32,058,220 - 32,058,220 - Federal Home Loan Mortgage (FHLMC) 13,978,700 - 13,978,700 - Federal National Mortgage (FNMA) 5,985,840 - 5,985,840 - US Treasury Note 6,027,450 - 6,027,450 - Investments Not Measured at Fair Value or Subject
to Fair Value Hierarchy
Local Agency Investment Funds 65,011,531 - - - California Class 67,882,490 - - - Money Market Mutual Funds 19,242,707 - - - Total Investments Not Measured at Fair Value or
Subject to Fair Value Hierarchy 152,136,728 - - - Total City's Pooled Investments 554,744,524 - - - Investments Held with Fiscal Agent Not Measured
at Fair Value
JPA (CAMP) 234,913 - - - Money Market Mutual Funds 58,066,277 - - - Investments Held with Fiscal Agent by Fair Value Level
OPEB Plan Investments - Mutual Funds 12,296,103 - 12,296,103 - Total Investments Held with Fiscal Agents 70,597,293 - - - Total Investments 625,341,817$ -$ 219,420,175$ 195,483,724$ Fair Value Measurements on a Recurring Basis Using

Page 327 ends

03/24/2026 Item No.9.

City of Folsom
NOT
ES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

3. RECEIVABLES
Receivables as of June 30, 2025, consist of the following:

Folsom Public Folsom Ranch Transportation
Folsom Housing Financing Authority Financing Authority Improvement Nonmajor General Special Revenue Debt Service Debt Service Capital Projects FPA Capital Governmental Internal Governmental Activities Fund Fund Fund Fund Fund Improvements F unds Service Funds Total
Receivables, net
General accounts 7,666,474$ 6,198,598$ -$
-$
587,809$ -$
1,487,541$ 68,240$ 16,008,662$
Lease 10,980,769 - - - - - - - 10,980,769 Interest 532,449 253,053 1,249 - 533,874 625,410 942,212 102,657 2,990,904 Long-term loans 1,332 29,681,328 - - - - 4,700,601 - 34,383,261 Total 19,181,024$ 36,132,979$ 1,249$ -$ 1,121,683$ 625,410$ 7,130,354$ 170,897$ 64,363,596$ Business-Type Activities Water Wastewater Solid Waste Enterprise Total Receivables, net
General accounts 811,211$ -$
-$
-$
811,211$
Utilities 3,
659,103 1,578,524 539,128 - 5,776,755
Interest 506,180 367,021 294,207 1,068 1,168,476 Total 4,976,494$ 1,945,545$ 833,335$ 1,068$ 7,756,442$ Long Term Loans and Lease receivables are not expected to be collected within one year.

4. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
Due from Nonmajor Due from
Due to Other Funds Governmental Funds Internal Service Funds Total General Fund 76,490$ 28,557$ 105,047$
Total 76,490$ 28,557$ 105,047$
All balances reported as “Due to/due from” are short-term loans to cover temporary cash shortages as of June 30, 2025, and will be repaid with in one year.

B. Advances To/From Other Funds
At June 30, 2025 the fu
nds below had made advances which were not expected to be repaid within the next year.

Advances from Other Funds
Advances to Other Funds General Fund Total
Internal Service Funds 1,040,452$ 1,040,452$
Total 1,040,452$ 1,040,452$
In September 2023, the City authorized a $1,281,904 interfund loan from the Equipment Replacement Fund (Fund 602) to the General Fund for the City Hall Boiler & HVAC Replacement Project. The loan is for five years with 3 % simple interest rate. 73

Page 328 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

5. TRANSFERS

Transfers report the nonreciprocal contribution from one fund to another. The following is a summary of transfers for the year ended June 30, 2025:

Transfers out General Internal Service Fund Total
General Fund -$ 841,588$ 2,723,397$ 3,564,985$ Folsom Housing 12,063 - - 12,063 Transportation Improvement Fund 178,771 - - 178,771 FPA Capital Improvement 81,961 - - 81,961 Other governmental funds 1,149,803 - - 1,149,803 Water Enterprise 1,053,953 - - 1,053,953 Wastewater Enterprise 824,979 - - 824,979 Solid Waste Enterprise 1,947,176 - - 1,947,176 Other enterprise funds 466 - - 466 Internal Service Fund 5,728 - - 5,728 Total 5,254,900$ 841,588$ 2,723,397$ 8,819,885$ Transfers in
Other
Governmental
Funds

During the year, various interfund transfers were made to finance expenditures and service debt. Transfers primarily consisted of: (1) cost allocation plan charges of $4.2 million; (2) salaries and benefits of $17.5 thousand; and (3) project and capital transfers of $3.7 million.

6. CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2025, was as follows:

July 1, 2024 Transfers Additions Deletions June 30, 2025 Governmental Activities:

Capital assets, not being depreciated:

Land 19,691,947$ -$ -$ -$ 19,691,947$ Construction in progress 15,227,473 (23,688,197) 12,333,568 - 3,872,844 Total capital assets, not being depreciated 34,919,420 (23,688,197) 12,333,568 - 23,564,791 Capital assets, being depreciated:

Buildings 86,014,697 10,647,722 25,035 - 96,687,454 Improvements 667,559,707 13,040,475 37,243,698 - 717,843,880 Equipment 28,428,427 - 2,903,206 (1,092,147) 30,239,486 Total capital assets, being depreciated 782,002,831 23,688,197 40,171,939 (1,092,147) 844,770,820 Less accumulated depreciation for:

Buildings (56,246,447) - (2,277,575) - (58,524,022) Improvements (329,785,731) - (20,715,341) - (350,501,072) Equipment (23,655,675) - (2,295,180) 1,086,646 (24,864,209) Total accumulated depreciation (409,687,853) - (25,288,097) 1,086,646 (433,889,304) Intangible Asset -
Subscription assets 3,546,806 - 1,105,365 (1,055,418) 3,596,753 Lease assets - equipment 501,913 - - (501,913) - Less Amortization -
Subscription assets (896,360) - (1,336,934) 1,055,418 (1,177,876) Lease assets - equipment (449,010) - (52,903) 501,913 - Total intangible asset with amortization 2,703,349 - (284,472) - 2,418,877 Governmental activities capital assets, net 409,937,747$ -$ 26,932,938$ (5,501)$ 436,865,184$

Page 329 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

6. CAPITAL ASSETS, Continued

July 1, 2024 Transfers Additions Deletions June 30, 2025 Business-type activities:

Capital assets, not being depreciated:

Land 815,270$ -$ -$ -$ 815,270$ Construction in progress 14,208,931 (16,855,918) 11,859,568 - 9,212,581 Total capital assets, not being depreciated 15,024,201 (16,855,918) 11,859,568 - 10,027,851 Capital assets, being depreciated:

Buildings 528,554 - - - 528,554 Improvements 288,993,396 16,855,918 14,879,353 - 320,728,667 Equipment 30,778,800 - 4,844,162 (50,400) 35,572,562 Total capital assets, being depreciated 320,300,750 16,855,918 19,723,515 (50,400) 356,829,783 Less accumulated depreciation for:

Buildings (157,859) - (21,127) - (178,986) Improvements (115,985,144) - (7,569,060) - (123,554,204) Equipment (19,637,464) - (3,478,347) 28,280 (23,087,531) Total accumulated depreciation (135,780,467) - (11,068,534) 28,280 (146,820,721) Intangible Asset - lease assets 210,501 - - (210,501) - Less Amortization (169,901) - (40,600) 210,501 - Total intangible asset with amortization 40,600 - (40,600) - - Business-type activities capital assets, net 199,585,084$ -$ 20,473,949$ (22,120)$ 220,036,913$

Depreciation expense was charged to functions/programs of the City as follows:

Governmental Activities:

General government 1,616,687$
Public safety 2,496,557
Public works 18,723,750
Culture and recreation 3,840,940
Total depreciation expense - governmental activities 26,677,934$ Business-type activities:

Water 5,441,094$
Wastewater 2,739,032
Solid waste 2,929,008
Total depreciation expense - business-type activities 11,109,134$

The current year increase in Capital Contributions is due to a significant amount of development activity, primarily in the Folsom Plan Area. Developer Contributions for Sewer, Water, Streets, Drainage accepted by the City were $2,504,794, $18,952,753, $26,827,476, and $9,484,095 respectively.

Page 330 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

6. CAPITAL ASSETS, Continued
Intangible Assets – In FY 2022, the City implemented GASB No. 87, Leases, and recognized the value of copiers leased and two modular building units leased for the Corp Yard and the Street Maintenance Division. In FY 2023, the City implemented GASB 96, Subscriptions, and recognized the value of subscription services with Axon which provides services for Police and Microsoft for Information Technology subscription.

As of June 30, 2025, the City has a subscription agreement with Microsoft. The subscription was entered into on October 1, 2024 and will continue through September 2027. The intangible asset is being amortized over 3 years, the term of the current lease. Terms of this lease are described in Note 8.

As of June 30, 2025, the City has a subscription agreement with Axon. The subscription was entered into on August 4, 2021 and will continue through July 2025. Subsequent to year end, the City exercised its option to extend the agreement for an additional five years following the initial term. The intangible asset is being amortized over 5 years, the term of the current lease.

Terms of this lease are described in Note 8.

As of June 30, 2025, the City has a subscription agreement with Open Gov Budget & Planning Software. The subscription was entered into on December 1, 2023 and will continue through June 2027. The agreement shall automatically renew for another period od the same duration as the initial term unless the City notifies the other party if its intent not to renew this agreement.

The intangible asset is being amortized over 5 years, the term of the current lease. Terms of this lease are described in Note 8.

As of June 30, 2025, the City has a subscription agreement with ePLUS The subscription was entered into on July 29, 2023 and will continue through July 2027. The City has an option to extend for an additional three years after the initial agreement. The intangible asset is being amortized over 5 years, the term of the current lease. Terms of this lease are described in Note

8. 7. LEASES
Leases Payable

Modular 64*48 Unit- In August 2019, the City entered into a five-year Lease Agreement as lessee for the use of a 64*48 Modular Building Unit. An initial lease liability was recorded in the amount of $85,651. The lease has been paid off during the fiscal year 2025.

Modular 24*60 Unit- In October 2017, the City entered into a five-year Lease Agreement as lessee for the use of a 24*60 Modular Building Unit. In March 2019, an amendment was made to the original lease, extending the lease until December 31, 2024. An initial lease liability was recorded in the amount of $93,178. The lease has been paid off during the fiscal year 2025.

Copiers- In September 2019, the City entered into a five-year Lease Agreement as lessee for the use of various copiers. An initial lease liability was recorded in the amount of $533,585. The lease has been paid off during the fiscal year 2025.

Page 331 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

7. LEASES, Continued
Leases Receivable

General Fund

In December 2021, the City entered into a ten-year lease agreement for the use of a city owned building. The City recognized $200,672 in lease revenue and $55,855 in interest revenue during the current fiscal year. As of June 30, 2025 the City’s lease receivable for lease payments for this lease is $1,751,928. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of resources is $1,751,928.

In July 2023, the City entered into a ten-year lease agreement with two optional extensions of five years for the use of a city owned building. As of June 30, 2025 the City’s lease receivable for lease payments for this lease is $2,167,782. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of resources is $2,167,782.

The City has currently entered into a total of ten lease agreements with various tele- communication companies for use of city own land to install Cellular Towers. The initial lease agreements vary between 20-30 years. The city recognized $241,060 in lease revenue and $224,012 in interest revenue during the current fiscal year. As of June 30, 2025, the City’s receivable for lease payments for these leases is $7,061,059. Also, the City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of resources is $7,061,059.

Total lease receivable for lease payments is $10,980,769. The future revenue payments as of June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 468,393$ 326,306$ 794,699$
2027 540,726 311,575 852,301
2028 528,449 295,077 823,526
2029 532,366 278,935 811,301
2030 533,813 262,661 796,474
2031-2035 2,172,414 1,095,410 3,267,824
2036-2040 2,388,458 788,537 3,176,995 2041-2045 2,759,810 389,743 3,149,553 2046-2050 1,056,340 82,732 1,139,072 Total 10,980,769$ 3,830,976$ 14,811,745$

Page 332 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

8. SUBSCRIPTIONS
Subscription Payable

Axon – In August 2021, the City entered into a five-year Subscription Agreement as lessee for the use of a Axon, Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 plan. There is an option to extend for an additional five years that the City will likely choose. An initial subscription liability was recorded in the amount of $1,933,338. As of June 30, 2025, the value of the subscription liability is $1,314,251. The City is required to make an annual principal and interest payment of $257,690. The subscription has an interest rate of

4.85%. The accumulated amortization as of June 30, 2025 of $615,804 is included in the intangible assets on the Governmental activities table found in note 6 above.

Microsoft – In October 2024, the City entered into a three-year Subscription Agreement as lessee for the use of a Microsoft Software. An initial subscription liability was recorded in the amount of $1,105,365. As of June 30, 2025, the value of the subscription liability is $728,424.

The City is required to make an annual principal and interest payment of $376,941. The subscription has an interest rate of 2.32%. The accumulated amortization as of June 30, 2025 of $276,341 and is included in the intangible assets on the Governmental activities table found in note 6 above.

ePlus – In July 2023, the City entered into a three-year Subscription Agreement as lessee for the use of Arctic Wolf products and services. An initial subscription liability was recorded in the amount of $239,480. As of June 30, 2025, the value of subscription liability is $83,679. The City is required to make an principal and interest payment of $82,697. The subscription has an interest rate of 3%. The accumulated amortization as of June 30, 2025 of $155,644 is included in the intangible assets on the Government activities table found in note 6 above.

OpenGov Budget & Planning Software – In December 2023, the City entered into a four-year Subscription Agreement as lessee for the use of OpenGov Budget & Planning Software. There is an option renew for another period of the same duration as the initial term. An initial subscription liability was recorded in the amount of $261,063. As of June 30, 2025, the value of subscription liability is $149,880. The City is required to make an principal and interest payment of $68,838. The subscription has an interest rate of 3.66%. The accumulated amortization as of June 30, 2025 of $130,087 is included in the intangible assets on the Governmental activities table found in note 6 above.

The future principal and interest subscription payments as of June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest
2026 709,358$ 88,687$
2027 649,929 65,751
2028 213,218 44,472
2029 223,559 34,131
2030 234,401 23,288
2031-2035 245,769 11,920
Total 2,276,234$ 268,249$
Governmental activities

Page 333 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES
The following is a summary of long-term liabilities for the year ended June 30, 2025:

Amount
June 30, 2024 Due Within
Governmental Activities as restated Additions Reductions June 30, 2025 One Year Revenue bonds 136,705,000$ 37,440,000$ (1,225,000)$ 172,920,000$ 2,430,000$ Notes from direct borrowings and direct placements 29,090,000 - (3,000,000) 26,090,000 5,205,000 City Hall & Fire Station Lease Obligation 622,815 - (202,123) 420,692 207,095 Leases payables 45,996 - (45,996) - - SBITA payables 2,511,329 1,105,364 (1,340,459) 2,276,234 709,358 Compensated absences 7,006,545 5,383,350 (5,667,829) 6,722,066 1,092,325 Add: Discounts/premiums, net 8,253,424 2,292,446 (446,622) 10,099,248 - Governmental activities long-term liabilities 184,235,109$ 46,221,160$ (11,928,029)$ 218,528,240$ 9,643,778$ Amount
June 30, 2024 Due Within
Business-Type Activities as restated Additions Reductions June 30, 2025 One Year Revenue bonds 4,745,000$ -$ (880,000)$ 3,865,000$ 910,000$ Notes from direct borrowings and direct placements 7,176,000 (664,000) 6,512,000 674,000 Leases payables 32,445 - (32,445) - - Compensated absences 1,144,489 1,171,233 (1,101,021) 1,214,701 197,387 Add: Issuance discounts/premiums, net 568,834 - (113,751) 455,083 - Business-type activities long-term liabilities 13,666,768$ 1,171,233$ (2,791,217)$ 12,046,784$ 1,781,387$

Page 334 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
Revenue Bonds

In September 2015, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2015A in the amount of $6,675,000 with interest rates of 2.00% to 4.625%. The Series 2015A Special Tax Revenue Serial Bonds mature beginning September 1, 2016 through September 1, 2025 with principal payments ranging from $125,000 to $165,000. Term Bond sinking fund requirements begin September 1, 2026 through September 1, 2030 with principal payments ranging from $170,000 to $200,000; September 1, 2031 through September 1, 2035 with principal payments ranging from $210,000 to $245,000; and September 1, 2036 through September 1, 2045 with principal payments ranging from $260,000 to $390,000. The bonds were issued to finance the purchase of special tax bonds (the "Local Obligations") of Community Facilities District No.

17. The purchase price of the Local Obligations was used to finance certain public facilities constituting water facilities, fund a debt service account, and pay certain costs of issuance.

The 2015A Special Tax Bonds are eligible for optional redemption on interest payment dates on or after March 1, 2016 at 103% and declining to 100% if called on September 1, 2025 or any interest payment date thereafter. 5,415,000$
In August 2017, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2017 in the amount of $28,530,000 with interest rates of 3.00% to 5.00%. The Special Tax Revenue Term Bond maturing September 1, 2022 has sinking fund requirements that begin September 1, 2019 and go through September 1, 2022 with principal payments ranging from $135,000 to $245,000. Future Term Bond sinking fund requirements begin September 1, 2023 through September 1, 2027 with principal payments ranging from $285,000 to $490,000; September 1, 2028 through September 1, 2032 with principal payments ranging from $550,000 to $825,000; September 1, 2033 through September 1, 2037 with principal payments ranging from $905,000 through $1,280,000; and September 1, 2038 through September 1, 2047 with principal payments ranging from $1,350,000 to $2,095,000. The bonds were issued to finance the purchase of special tax bonds (the "Local Obligations") of Community Facilities District No. 19. The purchase price of the Local Obligations was used to finance the acquisition of certain public facilities, fund a debt service reserve fund, fund capitalized interest, and pay certain costs of issuance. The 2017 Special Tax Bonds are eligible for optional redemption on interest payment dates on or after September 1, 2027 at 100%. 27,160,000

Page 335 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
In June 2018, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2018 in the amount of $13,255,000 with interest rates of 3.00% to 5.00%. The Special Tax Revenue Term Bond maturing September 1, 2023 has sinking fund requirements that begin September 1, 2020 and go through September 1, 2023 with principal payments ranging from $65,000 to $100,000. The Special Tax Revenue Serial Bonds maturing in 2024 and 2025 have principal payments of $135,000 and $155,000 respectively. Future Term Bond sinking fund requirements begin September 1, 2026 through September 1, 2028 with principal payments ranging from $175,000 to $225,000; September 1, 2029 through September 1, 2033 with principal payments ranging from $255,000 to $385,000; September 1, 2034 through September 1, 2038 with principal payments ranging from $425,000 through $595,000; and September 1, 2039 through September 1, 2048 with principal payments ranging from $625,000 to $970,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 20. The purchase price of the Local Obligations was used to finance the acquisition of certain public facilities, fund a debt service reserve account, fund capitalized interest, and pay certain costs of issuance. The 2018 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2025 through August 31, 2026 at 103%; on or after September 1, 2026 through August 31, 2027 at 102%; on or after September 1, 2027 through August 31, 2028 at 101%; on or after September 1, 2028 at 100%. 12,760,000 In August 2019, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2019 in the amount of $14,040,000 with interest rates of 2.00% to 5.00%. The Series 2019 Special Tax Revenue Serial Bonds mature beginning September 1, 2020 through September 1, 2029 with principal payments ranging from $55,000 to $245,000. The Special Tax Revenue Term Bond maturing September 1, 2034 has sinking fund requirements that begin September 1, 2030 and go through September 1, 2034 with principal payments ranging from $270,000 to $410,000. Future Term Bond sinking fund requirements begin September 1, 2035 through September 1, 2039 with principal payments ranging from $455,000 to $590,000; September 1, 2040 through September 1, 2044 with principal payments ranging from $620,000 to $755,000; and September 1, 2045 through September 1, 2049 with principal payments ranging from $790,000 through $960,000. In addition, there is a $495,000 term bond maturing 2049 with sinking fund payments ranging from $5,000 September 1, 2020 through $30,000 September 1, 2049. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 19. The purchase price of the Local Obligations was used to finance the acquisition of certain public facilities, deposit to a debt service reserve fund, fund capitalized interest, and pay certain costs of issuance. The 2019 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2026 through August 31, 2027 at 103%; on or after September 1, 2027 through August 31, 2028 at 102%; on or after September 1, 2028 through August 31, 2029 at 101%; on or after September 1, 2029 at 100%. 13,555,000

Page 336 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
In December 2019, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2019 in the amount of $9,695,000 with interest rates of 3.00% to 5.00%. The Series 2019 Special Tax Revenue Serial Bonds mature beginning September 1, 2021 through September 1, 2030 with principal payments ranging from $45,000 to $185,000. The Special Tax Revenue Term Bond maturing September 1, 2035 has sinking fund requirements that begin September 1, 2031 and go through September 1, 2035 with principal payments ranging from $210,000 to $310,000. Future Term Bond sinking fund requirements begin September 1, 2036 through September 1, 2039 with principal payments ranging from $340,000 to $440,000; September 1, 2040 through September 1, 2044 with principal payments ranging from $460,000 to $560,000; and September 1, 2045 through September 1, 2049 with principal payments ranging from $585,000 through $715,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 21.

The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, deposit to a reserve account, fund capitalized interest, and pay certain costs of issuance. The 2019 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2026 through August 31, 2027 at 103%; on or after September 1, 2027 through August 31, 2028 at 102%; on or after September 1, 2028 through August 31, 2029 at 101%; on or after September 1, 2029 at 100%. 9,450,000 In October 2020, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2020 in the amount of $12,925,000 with interest rates of 3.00% to 4.00%. The Series 2020 Special Tax Revenue Serial Bonds mature beginning September 1, 2022 through September 1, 2030 with principal payments ranging from $105,000 to $260,000. The Special Tax Revenue Term Bond maturing September 1, 2035 has sinking fund requirements that begin September 1, 2031 and go through September 1, 2035 with principal payments ranging from $285,000 to $395,000. Future Term Bond sinking fund requirements begin September 1, 2036 through September 1, 2040 with principal payments ranging from $430,000 to $570,000; September 1, 2041 through September 1, 2045 with principal payments ranging from $595,000 to $695,000; and September 1, 2046 through September 1, 2050 with principal payments ranging from $725,000 through $845,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 23, Improvement Area 1. The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, deposit to a debt service reserve fund, fund capitalized interest to September 1, 2021, and pay certain costs of issuance. The 2020 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2027 through August 31, 2028 at 103%; on or after September 1, 2028 through August 31, 2029 at 102%; on or after September 1, 2029 through August 31, 2030 at 101%; on or after September 1, 2030 at 100%. 12,560,000

Page 337 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
In April 2021, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2021 in the amount of $11,815,000 with interest rates of 3.00% to 4.00%. The Special Tax Revenue Serial Bonds mature beginning September 1, 2022 through September 1, 2041 with principal payments ranging from $100,000 to $535,000. The Special Tax Revenue Term Bond maturing September 1, 2046 has sinking fund requirements that begin September 1, 2042 and go through September 1, 2046 with principal payments ranging from $560,000 to $655,000. A future Term Bond has sinking fund requirements that begin September 1, 2047 through September 1, 2050 with principal payments ranging from $680,000 to $765,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 21. The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, deposit to a reserve fund, fund capitalized interest to September 1, 2021, and pay certain costs of issuance. The 2021 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2027 through August 31, 2028 at 103%; on or after September 1, 2028 through August 31, 2029 at 102%; on or after September 1, 2029 through August 31, 2030 at 101%; on or after September 1, 2030 at 100%. 11,470,000
In May 2022, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2022 in the amount of $11,855,000 with interest rates of 3.00% to 5.00%. The Special Tax Revenue Serial Bonds mature beginning September 1, 2023 through September 1, 2034 with principal payments ranging from $45,000 to $265,000. The Special Tax Revenue Term Bond maturing September 1, 2042 has sinking fund requirements that begin September 1, 2035 and go through September 1, 2042 with principal payments ranging from $295,000 to $520,000. A future Term Bond has sinking fund requirements that begin September 1, 2043 and go through September 1, 2052 with principal payments ranging from $545,000 to $845,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 23, Improvement Area No. 1. The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, fund a debt service reserve account, fund capitalized interest to September 1, 2022, and pay certain costs of issuance. The 2022 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2029 through August 31, 2030 at 103%; on any date on or after September 1, 2030 through August 31, 2031 at 102%; on any date on or after September 1, 2031 through August 31, 2032 at 101%; or on any date on or after September 1, 2032 at 100%. 11,755,000
83

Page 338 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
In August 2022, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2022 in the amount of $9,430,000 with interest rates of 3.00% to 5.00%. The Special Tax Revenue Serial Bonds mature beginning September 1, 2025 through September 1, 2032 with principal payments ranging from $70,000 to $170,000. The Special Tax Revenue Term Bond maturing September 1, 2037 has sinking fund requirements that begin September 1, 2033 and go through September 1, 2037 with principal payments ranging from $190,000 to $280,000. A future Term Bond that matures September 1, 2042 has sinking fund requirements that begin September 1, 2038 and go through September 1, 2042 with principal payments ranging from $305,000 to $420,000. The final Term Bond matures September 1, 2052 and has sinking fund requirements that begin September 1, 2043 and go through September 1, 2052 with principal payments ranging from $440,000 to $680,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 23, Improvement Area No. 3. The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, fund a debt service reserve account, fund capitalized interest to September 1, 2023, and pay certain costs of issuance. The 2022 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2029 through August 31, 2030 at 103%; on any date on or after September 1, 2030 through August 31, 2031 at 102%; on any date on or after September 1, 2031 through August 31, 2032 at 101%; or on any date on or after September 1, 2032 at 100%. 9,430,000 In December 2022, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2022 in the amount of $11,225,000 with interest rates of 4.00% to 5.00%. The Special Tax Revenue Serial Bonds mature beginning September 1, 2024 through September 1, 2034 with principal payments ranging from $60,000 to $265,000. The Special Tax Revenue Term Bond maturing September 1, 2037 has sinking fund requirements that begin September 1, 2035 and go through September 1, 2037 with principal payments ranging from $295,000 to $360,000. A future Term Bond that matures September 1, 2042 has sinking fund requirements that begin September 1, 2038 and go through September 1, 2042 with principal payments ranging from $395,000 to $480,000. Another future Term Bond that matures September 1, 2047 has sinking fund requirements that begin September 1, 2043 and go through September 1, 2047 with principal payments ranging from $500,000 to $615,000. The final Term Bond matures September 1, 2052 and has sinking fund requirements that begin September 1, 2048 and go through September 1, 2052 with principal payments ranging from $645,000 to $790,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the "Local Obligations") of Community Facilities District No. 20. The purchase price of the Local Obligations was used to finance the acquisition and construction of certain public facilities, fund a debt service reserve account, fund capitalized interest to September 1, 2023, and pay certain costs of issuance. The 2022 Special Tax Bonds are eligible for optional redemption on any date on or after September 1, 2029 through August 31, 2030 at 103%; on any date on or after September 1, 2030 through August 31, 2031 at 102%; on any date on or after September 1, 2031 through August 31, 2032 at 101%; or on any date on or after September 1, 2032 at 100%. 11,165,000

Page 339 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued

In April 2024, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2024 in the aggregate principal amount of $10,760,000 with interest rates ranging from 4.00% to 5.00%. The Special Tax Revenue Serial Bonds mature on September 1 of each year from 2025 through 2034 with principal payments ranging from $45,000 to $205,000. The Special Tax Revenue Term Bond maturing September 1, 2039 is subject to mandatory sinking fund redemption with annual payments beginning on September 1, 2035—$230,000 in 2035, $255,000 in 2036, $285,000 in 2037, $315,000 in 2038 and $345,000 on maturity. The Term Bond maturing September 1, 2044 has sinking fund redemption payments from September 1, 2040 through September 1, 2044 ranging from $375,000 to $510,000. The Term Bond maturing September 1, 2049 calls for sinking fund payments from September 1, 2045 through September 1, 2049 ranging from $535,000 to $650,000, and the Term Bond maturing September 1, 2053 requires sinking fund redemption payments from September 1, 2050 through September 1, 2053 ranging from $685,000 to $790,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the “Local Obligations”) of the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 2, with the purchase price used to finance the acquisition and construction of certain public facilities, establish a debt service reserve account, fund capitalized interest through September 1, 2024, and pay certain issuance costs.

The 2024 Special Tax Revenue Bonds are eligible for optional redemption on any date on or after September 1, 2030 through August 31, 2031 at 103%; on any date on or after September 1, 2031 through August 31, 2032 at 102%; on any date on or after September 1, 2032 through August 31, 2033 at 101%; or on any date on or after September 1, 2033 at 100%. 10,760,000
In October 2024, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2024 in the aggregate principal amount of $26,735,000 with interest rates 5.00%. The Special Tax Revenue Serial Bonds mature on September 1 of each year from 2025 through 2034 with principal payments ranging from $135,000 to $1,120,000. The Special Tax Revenue Term Bond maturing September 1, 2039 is subject to mandatory sinking fund redemption with annual payments beginning on September 1, 2035—$475,000 in 2035, $535,000 in 2036, $595,000 in 2037, $655,000 in 2038 and $720,000 on maturity. The Term Bond maturing September 1, 2044 has sinking fund redemption payments from September 1, 2040 through September 1, 2044 ranging from $795,000 to $1,120,000. The Term Bond maturing September 1, 2049 calls for sinking fund payments from September 1, 2045 through September 1, 2049 ranging from $1,175,000 to $1,430,000, and the Term Bond maturing September 1, 2054 requires sinking fund redemption payments from September 1, 2050 through September 1, 2054 ranging from $1,505,000 to $1,825,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the “Local Obligations”) of the City of Folsom Community Facilities District No. 18 , with the purchase price used to finance the construction of certain public facilities, establish a debt service reserve account, and pay certain issuance costs. The 2024 Special Tax Revenue Bonds are eligible for optional redemption on any date on or after September 1, 2031 through August 31, 2032 at 103%; on any date on or after September 1, 2032 through August 31, 2033 at 102%; on any date on or after September 1, 2033 through August 31, 2034 at 101%; or on any date on or after September 1, 2034 at 100%. 26,735,000

Page 340 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued

In November 2024, the Folsom Ranch Financing Authority issued the Folsom Ranch Financing Authority Special Tax Revenue Bonds, Series 2024 in the aggregate principal amount of $10,705,000 with interest rates 5.00%. The Special Tax Revenue Serial Bonds mature on September 1 of each year from 2025 through 2034 with principal payments ranging from $20,000 to $185,000. The Special Tax Revenue Term Bond maturing September 1, 2039 is subject to mandatory sinking fund redemption with annual payments beginning on September 1, 2035—$205,000 in 2035, $230,000 in 2036, $255,000 in 2037, $280,000 in 2038 and $310,000 on maturity. The Term Bond maturing September 1, 2044 has sinking fund redemption payments from September 1, 2040 through September 1, 2044 ranging from $340,000 to $485,000. The Term Bond maturing September 1, 2049 calls for sinking fund payments from September 1, 2045 through September 1, 2049 ranging from $505,000 to $615,000, and the Term Bond maturing September 1, 2054 requires sinking fund redemption payments from September 1, 2050 through September 1, 2054 ranging from $645,000 to $785,000. The bonds were issued to finance the purchase of limited obligation special tax bonds (the “Local Obligations”) of the City of Folsom Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 4, with the purchase price used to finance the acquisition and construction of certain public facilities, establish a debt service reserve account, fund capitalized interest through September 1, 2025, and pay certain issuance costs.

The 2024 Special Tax Revenue Bonds are eligible for optional redemption on any date on or after September 1, 2031 through August 31, 2032 at 103%; on any date on or after September 1, 2032 through August 31, 2033 at 102%; on any date on or after September 1, 2033 through August 31, 2034 at 101%; or on any date on or after September 1, 2034 at 100%. 10,705,000
Total Governmental Revenue Bonds 172,920,000$
Business-type activities:

In October 2019, the Folsom Public Financing Authority issued the 2019 Water Revenue Refunding Bonds for $8,780,000 with an interest rate of 4.00%. The bonds mature beginning December 1, 2019 through 2028. The bonds were issued to provide funds to refund the 2009 Water Bonds on a current basis and to pay certain costs of issuance. 3,865,000$ Total Business-type activities Revenue Bonds 3,865,000$

Annual debt service requirements to maturity for the revenue bonds are as follows:

Year Ending
June 30, Principal Interest Principal Interest
2026 2,430,000$ 8,259,300$ 910,000$ 136,400$ 2027 2,885,000 8,140,956 945,000 99,300 2028 2,150,000 8,026,391 985,000 60,700 2029 2,435,000 7,922,763 1,025,000 20,500 2030 2,755,000 7,807,613 - - 2031-2035 19,130,000 36,647,506 - - 2036-2040 30,145,000 30,810,475 - - 2041-2045 41,665,000 22,170,388 - - 2046-2050 46,260,000 11,063,725 - - 2051-2054 23,065,000 2,390,147 - - Total 172,920,000$ 143,239,263$ 3,865,000$ 316,900$ Governmental Activities Business-Type Activities

Page 341 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
Notes from Direct Borrowings and Direct Placements
Governmental Activities:

In July 2017, the Folsom Public Financing Authority privately placed with BBVA Compass Bank the Folsom Public Financing Authority Special Tax Revenue Bonds, Series 2017A in the amount of $44,075,000 with an interest rate of 2.67%, and Taxable Series 2017B in the amount of $2,810,000 with an interest rate of 4.11%. The Series 2017A Special Tax Revenue Bonds mature beginning September 1, 2018 through September 1, 2032 with principal payments ranging from $1,085,000 to $5,105,000. The Taxable Series 2017B Special Tax Revenue Bonds mature beginning September 1, 2018 through September 1, 2028 with principal payments ranging from $140,000 to $435,000. The bonds were issued to finance and purchase five separate issues of special tax refunding bonds of three existing community facilities districts and pay certain costs associated with issuance. Both the Series 2017A Bonds and Taxable Series 2017B Bonds mat be called at the option of the City on any interest payment date beginning September 1, 2022 at 100%. 26,090,000$ Total Governmental Notes from Direct Borrowing and Direct Placements 26,090,000$ Business-Type Activities:

In June 2021, the Folsom Public Financing Authority privately placed with Key Government Finance, Inc. the Water Revenue Refunding Bonds, Series 2021 for $9,116,000 with an interest rate of 1.76%. The bonds mature beginning December 1, 2021 through 2033. The bonds were issued to provide funds to refund the 2013 Water Bonds on a current basis and to pay certain costs of issuance. 6,512,000$
Total Business-Type Activates Notes from District Borrowing and Direct Placements 6,512,000$

Year Ending
June 30, Principal Interest Principal Interest
2026 5,205,000$ 647,636$ 674,000$ 108,495$ 2027 5,350,000 501,183 688,000 96,530 2028 5,505,000 350,509 701,000 84,327 2029 5,540,000 196,974 709,000 71,940 2030 1,085,000 105,398 725,000 59,343 2031-2034 3,405,000 137,839 3,015,000 107,098 Total 26,090,000$ 1,939,539$ 6,512,000$ 527,733$ Governmental Activities Business-Type Activities

Page 342 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

9. LONG-TERM LIABILITIES, Continued
Fire Station Obligation

In March 2012, the City of Folsom entered into a Site Lease Agreement with the Folsom Public Financing Authority leasing the properties on which sit Folsom City Hall and the Folsom Central Business District Fire Station to the Authority in exchange for a one time rental payment of $10,538,467. That amount, along with reserve funds on hand, was used to prepay $2,596,022 of the 2001 City of Folsom Certificates of Participation and redeem the $7,797,444 of the FPFA Refunding Lease Revenue Bonds, with the additional amount paying costs of issuance. Concurrently, the Folsom Public Financing Authority entered into a Facilities Lease Agreement with the City of Folsom leasing Folsom City Hall and the Central Business District Fire Station to the City in exchange for scheduled yearly Base Rental Payments to the Authority. The Facility Lease was subsequently assigned by FPFA to the Bank of Nevada.

Subsequently, the Folsom Public Financing Authority entered into an Assignment Agreement with the Bank of Nevada assigning the Authority’s right to receive the Base Rental Payments to the Bank of Nevada in exchange for $10,538,467. The Base Rental Payments are split into two payments. The $7,910,564 lease relating to Folsom City Hall has a tax-exempt interest rate of 2.65% and has a final payment on October 1, 2017. The $2,671,587 lease relating to the Folsom Central Business District Fire Station has a tax-exempt interest rate of 3.45% and has a final payment on October 1, 2026. 420,692$
Total City Hall & Fire Station Lease Obligation 420,692$

Year Ending
June 30, Principal Interest
2026 207,095$ 12,743$
2027 213,597 3,685
Total 420,692$ 16,428$
Governmental activities
Lease Obligation

Compensated Absences

The City’s policy relating to compensated absences is described in Note 1. There is no fixed payment schedule for compensated absences. In prior years, compensated absences have been liquidated primarily by the General Fund and proprietary funds.

Lease Payable

The City’s policy relating to lease payable is described in Note 1. Please refer to note 7 for more details of the lease payables.

Subscription Payable

The City’s policy relating to subscription payable is described in Note 1.Please refer to note 8 for more details of the subscription payables.

Page 343 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

10. PLEDGE OF FUTURE REVENUES
The Folsom Public Financing Authority Water Revenue Bonds Series 2019 and Series 2021 are limited parity obligations payable solely from revenues consisting of installment payments to be made by the City under an installment purchase contract. The obligation of the City to make installment payments constitutes a special obligation of the City payable solely from the net revenues of the water system and certain other funds as provided in the installment purchase contract. Net revenues for any fiscal year are the gross income and revenue received, including all charges, fees, and rates and all connection fees, less the maintenance and operations costs. $8,780,000 in Series 2019 Bonds were issued primarily to refund the 2009 Water Revenue Bonds, which were issued to refund the 1998 Water Revenue Bonds, which were used to previously upgrade the treatment facilities. $9,116,000 in Series 2021 Bonds were issued primarily to refund the 2013 Bonds, which were issued primarily to refund the 2005A Water Revenue Bonds, which were issued to finance a portion of the costs of the 2005 Water Project, which consisted of improvements designed to increase the capacity of the existing water treatment from a peak capacity of 40 mgd to a peak capacity of 50 mgd as well as to upgrade disinfection facilities. The total principal and interest remaining to be paid on the bonds is $11,221,633 through fiscal year 2034. Principal and interest paid for the current year and total customer net revenues were $1,836,449 and $8,399,633 respectively.

11. DEBT WITH NO CITY COMMITMENT
Special assessment Districts in various parts of the City have issued debt under the 1915 Bond Act and Mello-Roos Special Tax Act to finance infrastructure improvements and facilities within their boundaries. The 1915 Act Bonds are not a general obligation of the City and neither the faith and credit nor the taxing power of the City, the State of California, or any political subdivision thereof is pledged to the payment of any debt service for these districts. The City is the collecting and paying agent for the debt issued by these Districts, but has no direct or contingent liability or moral obligation for the payment of this debt. Therefore, this debt is not included in general long-term debt of the City. The outstanding balance of each of these issues as of June 30, 2025 is as follows:

Description Issue Date Maturity Date June 30, 2025
Community Facilities District No. 10, Empire Ranch, Series 2017 7/11/2017 9/1/2028 17,023,741 $ Community Facilities District No. 14 Parkway II, Series 2017 7/11/2017 9/1/2032 8,428,760 Community Facilities District No. 16, The Islands at Parkshore IA1, Series 2018 3/15/2018 9/1/2048 5,400,000 Community Facilities District No. 16, The Islands at Parkshore IA2, Series 2019 7/18/2019 9/1/2049 2,980,000 Community Facilities District No. 17 Willow Hill Pipeline Proj., Series 2015 9/3/2015 9/1/2045 5,415,000 Community Facilities District No. 18 Area-Wide Improvements, Series 2024 10/8/2024 9/1/2054 26,735,000 Community Facilities District No. 19, Mangini Ranch, Series 2017 8/23/2017 9/1/2047 27,160,000 Community Facilities District No. 19, Mangini Ranch, Series 2019 8/7/2019 9/1/2049 13,555,000 Community Facilities District No. 20, Russell Ranch, Series 2018 6/5/2018 9/1/2048 12,760,000 Community Facilities District No. 20, Russell Ranch, Series 2022 12/8/2022 9/1/2052 11,165,000 Community Facilities District No. 21, WRSR, Series 2021 4/21/2021 9/1/2050 11,470,000 Community Facilities District No. 23 IA1, Folsom Ranch, Series 2020 10/30/2020 9/1/2050 12,560,000 Community Facilities District No. 23 IA1, Folsom Ranch, Series 2022 5/11/2022 9/1/2052 11,755,000 Community Facilities District No. 23 IA3, Folsom Ranch, Series 2022 8/10/2022 9/1/2052 9,430,000 Community Facilities District No. 23 IA2, Folsom Ranch, Series 2024 4/25/2024 9/1/2053 10,760,000 Community Facilities District No. 23 IA4, Folsom Ranch, Series 2024 11/21/2024 9/1/2054 10,705,000 197,302,501$

Page 344 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

11. DEBT WITH NO CITY COMMITMENT, Continued
The following schedule reflects the outstanding balance of Tax Allocation Bonds formally held by the City. These were transferred to the Successor Agency as of January 31, 2012 and are reported in the Private Purpose Trust Fund statement.

Description Issue Date Maturity Date June 30, 2025
Successor Agency to the Former Redevelopment Agency, Central Folsom 10/5/2016 8/1/2036 23,760,000 $ Redevelopment Project TABS, Series 2016A (Tax Exempt)
Successor Agency to the Former Redevelopment Agency, Central Folsom 7/12/2012 8/1/2035 12,110,000 Redevelopment Project TABS, Series 2016B (Federally Taxable) Owner Participation Agreement 650,169
Less: Issuance discounts/premiums, net 1,483,904
38,004,073$

12. CLASSIFICATION OF NET POSITION/FUND BALANCE

In the Government-wide Financial Statements, net position is classified in the following categories.

Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.

Restricted Net Position – This category represents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Investments held in trust represent assets held for future special assessment debt service. This category also includes amounts restricted for Debt service, Low and moderate income housing, Transportation/streets, Lighting and landscape assessment districts and Critical facilities.

Unrestricted Net Position – This category represents the net position of the City, which are not restricted for any project or other purpose.

Page 345 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

12. CLASSIFICATION OF NET POSITION/FUND BALANCE, Continued In the Fund Financial Statements, Fund balances are presented in the following categories:
nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2025 follows:

Folsom Public
Folsom Financing Transportation
Housing Authority Folsom Ranch Improvement FPA Other Non-Major Total General Special Debt Service Financing Capital Capital Governmental Governmental Fund Revenue Fund Fund Authority Projects Fund Improvement Funds Funds Nonspendable:

Inventory 541,520$ -$ -$ -$ -$ -$ -$ 541,520$ Insurance deposits 4,824 - - - - - - 4,824 Endowment principal 1,001,253 - - - - - 499,531 1,500,784 Total nonspendable fund balance 1,547,597 - - - - - 499,531 2,047,128 Restricted for:

Debt Service - - 25,214,332 170,413,935 - - 1,823,652 197,451,919 Police training and equipment - - - - - - 692,006 692,006 Police capital projects - - - - - - 1,761,235 1,761,235 Fire capital projects - - - - - - 702,346 702,346 General Capital Improvements 940,579 - - - - - 5,627,824 6,568,403 FPA capital improvements - - - - - 45,456,930 - 45,456,930 Light rail transportation improvements - - - - - - 1,443,988 1,443,988 Drainage capital projects - - - - - - 1,465,077 1,465,077 CFD 10 improvements - - - - - - 2,827,152 2,827,152 Park capital improvements - - - - - - 10,830,440 10,830,440 Zoo improvements - - - - - - 239,725 239,725 Lighting and Landscape districts - - - - - - 11,098,177 11,098,177 Transportation projects - - - - 43,996,058 - 11,713,515 55,709,573 Community Development Block Grant - - - - - - 157,329 157,329 Folsom Specific Plan Area infrastructure - - - - - - 22,462 22,462 2011 Non-Housing Bond Proceeds - - - - - - 1,942 1,942 Transit Capital Improvement - - - - - - 7,620,066 7,620,066 Corp Yard Capital Improvement - - - - - - 3,366,593 3,366,593 Loans receivable - 29,681,328 - - - - - 29,681,328 Low and Moderate
Income Housing - 24,084,788 - - - - - 24,084,788 Total restricted fund balance 940,579 53,766,116 25,214,332 170,413,935 43,996,058 45,456,930 61,393,529 401,181,479 - Committed for:

Transportation projects - - - - - - 353,501 353,501 Tree mitigation - - - - - - 1,404,337 1,404,337 Low income housing - - - - - - 5,815,241 5,815,241 Park improvements - - - - - - 2,860,989 2,860,989 Total committed fund balance - - - - - - 10,434,068 10,434,068 Assigned to:

Encumbrances 3,845,592 - - - - - - 3,845,592 Total assigned fund balance 3,845,592 - - - - - - 3,845,592 Unassigned fund balance: 25,335,749 - - - - - (167,945) 25,167,804 Total Fund Balances 31,669,517$ 53,766,116$ 25,214,332$ 170,413,935$ 43,996,058$ 45,456,930$ 72,159,183$ 442,676,071$

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

13. PENSION PLAN
A. General Information about the Pension Plans

Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and may be amended by City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website: www.calpers.ca.gov

Benefits Provided – CalPERS provides 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 with the retirement formula for Miscellaneous of 2.7% @ 55 for existing “classic” members, 2% @ 55 for “new” members with a start date on or after July 1, 2010 and 2% @ 62 for “new” members with a start date on or after January 1, 2013. The retirement formula for Safety is 3% @ 50 for “classic” members, 2% @ 50 for “new” members with a start date on or after July 1, 2010 and 2.7% @ 57 for “new” members with a start date on or after January 1, 2013. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Classic - Prior to New - On or after New - On or after
Hire Date June 30, 2010 July 1, 2010 January 1, 2013
Formula 2.7% @ 55 2% @ 55 2% @ 55
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-63 52-67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.0% 7.0% 7.50%
Required employer contribution rates 11.730% 45.240% 45.240% Unfunded Liability Contribution 8,399,520$ - - Classic - Prior to New - On or after New - On or after
Hire Date June 30, 2010 July 1, 2010 January 1, 2013
Formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57
Monthly benefits, as a % of annual salary 3.00% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.0% 9.0% 11.25%
Required employer contribution rates 20.220% 54.370% 51.370% Unfunded Liability Contribution 7,431,383$ - - Miscellaneous
Safety

Page 347 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

13. PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued

Employees Covered – At June 30, 2025, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 506 176 Inactive employees entitled to but not yet receiving benefits 300 107 Active employees 304 157
Total 1,110 440

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. In 2025, the employer contribution to CalPERS was $11,413,995 and $11,609,094 for the Miscellaneous and Safety Plan, respectively.

B. Net Pension Liability

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry Age Actuarial Cost Method Entry Age Actuarial Cost Method Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase Varies by Entry Age and Service Varies by Entry Age and Service Investment Rate of Return 6.80% 6.80%
Mortality Rate Table1
Derived using CalPERS'
membership data for all funds
Derived using CalPERS'
membership data for all funds
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
93

Page 348 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

13. PENSION PLAN, Continued
B. Net Pension Liability, Continued

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined.

Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A detailed report testing these projections can be obtained from the CalPERS website.

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

The expected real rates of return by asset class are as follows:

Current Target
Asset Class Allocation Real Return (1) (2)
Global Equity - Cap-weighted 30% 4.54%
Global Equity - Non-Cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management Study.

Page 349 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

13. PENSION PLAN, Continued
C. Changes in the Net Pension Liability

The changes in the Net Pension Liability, measured as of June 30, 2024, for each Plan follows:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 292,623,176$ 192,624,972$ 99,998,204$ Changes in the year:

Service cost 4,914,812 - 4,914,812 Interest on the total pension liability 20,214,065 - 20,214,065 Differences between actual and expected experience 5,358,534 - 5,358,534 Contribution - employer - 10,599,158 (10,599,158) Contribution - employee - 1,994,253 (1,994,253) Net investment income - 18,662,944 (18,662,944) Benefit payments, including refunds of employee contributions (14,963,296) (14,963,296) - Administrative expense - (156,740) 156,740 Net changes 15,524,115 16,136,319 (612,204) Balance at June 30, 2025 308,147,291$ 208,761,291$ 99,386,000$ Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 265,840,453$ 168,417,932$ 97,422,521$ Changes in the year:

Service cost 5,663,719 - 5,663,719 Interest on the total pension liability 18,534,449 - 18,534,449 Differences between actual and expected experience 6,452,421 - 6,452,421 Contribution - employer 10,485,360 (10,485,360) Contribution - employee 2,042,244 (2,042,244) Net investment income 16,316,533 (16,316,533) Benefit payments, including refunds of employee contributions (13,019,057) (13,019,057) - Administrative expense - (137,042) 137,042 Net changes 17,631,532 15,688,038 1,943,494 Balance at June 30, 2025 283,471,985$ 184,105,970$ 99,366,015$ Balance at June 30, 2025 - Both Plans 591,619,276$ 392,867,261$ 198,752,015$ Increase (Decrease)
Miscellaneous
Safety
Increase (Decrease)

Page 350 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

13. PENSION PLAN, Continued
C. Changes in the Net Pension Liability, Continued

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

Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability 139,350,034$ 138,923,954$ 278,273,988$ Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability 99,386,000$ 99,366,015$ 198,752,015$ 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability 66,198,331$ 66,962,825$ 133,161,156$

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2025, the City recognized pension expense of $17,335,342 for the Miscellaneous plan and $15,680,501 for the Safety plan, for a total pension expense of $33,015,843. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Changes in assumption 4,297,995$ -$ -$ -$ 4,297,995$ -$ Differences between actual and expected experience 6,944,321 39,771 4,526,897 - 11,471,218 39,771 Net differences between projected and actual
earnings
on plan investments 2,480,865 - 2,819,360 - 5,300,225 - Pension contributions subsequent to measurement date 11,609,094 - 11,413,995 - 23,023,089 - Total 25,332,275$ 39,771$ 18,760,252$ -$ 44,092,527$ 39,771$ TotalSafety Miscellaneous

$11,413,995 (miscellaneous) and $11,609,094 (safety) reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30, Safety Misc
2026 4,241,942$ 2,765,381$
2027 8,063,091 6,548,292
2028 1,033,525 (873,690)
2029 344,852 (1,093,726)
Total 13,683,410$ 7,346,257$
Amortization

Page 351 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

14. POST-EMPLOYMENT HEALTH CARE BENEFITS

EMPLOYER/PLAN REPORTING

Basis of Accounting – Employees are not required to contribute to the plan. Employer contributions are recognized when due and when a formal commitment is made to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Plan Description – The City of Folsom Retiree Health Program is a single-employer defined benefit healthcare plan administered by Benefit Trust Company. The City provides medical, dental and vision insurance benefits to eligible retirees. Benefit provisions are established and may be amended by City labor agreements, which are approved by the City Council. On November 27, 2007, the Council adopted a resolution authorizing the City Manager to establish a Futuris Public Entity Investment Trust and a Retirement Board of Authority (BOA). The BOA is made up of the Mayor, one at large Council member, City Manager, Finance Director, and the Human Resources Director. The BOA has delegated authority of the OPEB trust to Benefit Trust Company (BTC) per the Futuris Trust Administrative Services Agreement. Upon signing the agreement, BTC has been deemed to have executed the Trust and during the term of this Agreement, BTC further agreed to serve as a discretionary trustee, with fiduciary oversight and authority over the operations and management of the Trust.

Plan Membership – At June 30, 2025, the Plan membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefit payments 433 Inactive plan members entitles to but not yet receiving benefit payments - Active plan members 86
Total 519

Benefits Provided – The Plan provides medical, dental and vision insurance benefits to eligible retirees and their dependents. Benefits are provided through a third-party insurer, and the full cost of the benefits is covered by the plan. Benefit provisions are established and may be amended by City labor agreements, which are approved by the City Council.

Contributions – The contribution requirements of plan members and the City are established and may be amended by City Council. The Council establishes rates based on an actuarially determined rate. For year ended June 30, 2025, the City contributed $6,457,277 to the plan, for current premiums.

Investments

Investment Policy – The Plan’s policy in regard to the allocation of invested assets is established and may be amended by the Retirement Board of Authority. It is the policy of the Retirement Board of Authority to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The Board’s adopted asset allocation policy as of June 30, 2025 is presented as part of discussion about the long-term expected rate of return.

Page 352 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

14. POST-EMPLOYMENT HEALTH CARE BENEFITS, Continued
Rate of return – For the year ended June 30, 2025, the annual money-weighted rate of return on investments, net of investment expense, was 9.3 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Net OPEB Liability

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

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

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Investment Rate of Return
General Inflation
Payroll increase
Mortality
Retirement Age
Healthcare Cost Trend Rate
(1) Net of pension plan investment and administrative expenses, including inflation.

8.00%
2021 CalPERS pension plan valuation
2021 CalPERS pension plan valuation

5.50%

5.5%
(1)

2.75%

2.80%
June 30, 2025
June 30, 2025
Entry-Age Normal Cost Method

Mortality rates were based on the 2021 CalPERS pension valuation for Miscellaneous Employees, 2021 CalPERS Mortality Safety Employees tables created by CalPERS.

The long-term expected rate of return on OPEB plan investments was determined by looking at rolling periods of time for all asset classes in combination to appropriately reflect correlation between asset classes. That means that the average returns for any asset class don’t necessarily reflect the averages over time individually, but reflect the return for the asset class for the portfolio average. Geometric means were used.
98

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

14. POST-EMPLOYMENT HEALTH CARE BENEFITS, Continued
Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of June 30, 2025 are summarized below:

Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Domestic Equity 37.20% n/a
Fixed Income 49.80% n/a
International Equity 8.10% n/a
Real Estate 4.90% n/a
Total 100% 5.5%

Discount rate – The discount rate used to measure the total OPEB liability was 5.5 percent. The discount rate is based on the index rate of the 20-year, tax exempt rate using the Bond Buyer 20 Index.

Changes in the Net OPEB Liability

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c ) =(a) - (b)
Balance at June 30, 2024 104,419,661$ 10,549,827$ 93,869,834$ Changes recognized for the measurement period:

Service cost 1,091,940 - 1,091,940 Interest 5,641,505 - 5,641,505 Differences between actual
and expected experience 11,153,552 - 11,153,552 Changes in assumptions (2,128,247) - (2,128,247) Contribution - employer - 6,457,277 (6,457,277) Expected Investment Income - 1,227,575 (1,227,575) Expected Benefit payments (5,957,277) (5,957,277) - Net changes 9,801,473 1,727,575 8,073,898 Balance at June 30, 2025 114,221,134$ 12,277,402$ 101,943,732$ OPEB Plan
Increase (Decrease)

Sensitivity of the net OPEB liability to changes in the discount rate – The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (4.5 percent) or 1-percentage- point higher (6.5 percent) than the current discount rate:

1% Decrease Current Discount Rate 1% Increase

4.50% 5.50% 6.50%
Net OPEB liability 116,224,492$ 101,943,732$ 90,148,585$ 99

Page 354 ends

03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

14. POST-EMPLOYMENT HEALTH CARE BENEFITS, Continued
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (7 percent) or 1-percentage-point higher (9 percent) than the current healthcare cost trend rates:

1% Decrease Healthcare Cost Trend Rate 1% Increase

7.00% 8.00% 9.00%
Net OPEB liability 89,730,053$ 101,943,732$ 116,686,374$

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the year ended June 30, 2025, the City recognized OPEB expense of $5,080,500. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 441,230$ 1,418,831$ Net difference between expected and actuarial experience 8,036,326 - Net differences between projected and actual earnings on OPEB plan investments - 464,893 Total 8,477,556$ 1,883,724$

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Deferred (Inflows)
End June 30: of Resources
2026 4,228,000$
2027 2,732,318
2028 (239,734)
2029 (126,752)
Total 6,593,832$

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

15. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

There are no significant reductions in insurance coverage from prior years and there have been no settlements exceeding the insurance coverage for each of the past five fiscal years.

The City has joined together with other Cities in the State of California to participate in Northern California Cities Self Insurance Fund (NCCSIF), a joint powers agency which provides the City with a shared risk layer of coverage above the self-insured $100,000 retention for liability and workers’ compensation. In addition, NCCSIF provides claims servicing to the City for the banking layer, which represents the City’s self-insurance. The NCCSIF is composed of 18 member cities and is governed by a board of directors appointed by the member cities. The governing board has authority over budgeting and financing. The workers’ compensation and general liability programs are administered by third-party administrators.

NCCSIF is a governmental joint powers authority formed in July 1978, pursuant to the Government Code of the State of California, commencing with Section 6500. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The Authority provides pooled claims processing administrative services, risk management services, and actuarial studies. The City of Folsom Council members do not have significant oversight responsibility, since they evenly share all factors of risk and responsibility with the other cities.

However, ultimate liability for payment of claims and insurance premiums resides with member cities. The Authority is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its shared equity balance.

Upon termination of the JPA agreement, all property of the authority will vest in the respective parties which theretofore transferred, conveyed or leased said property to the Authority. Any surplus of funds will be returned to the parties in proportion to actual equity balances of each entity.

The Authority establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors. A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made. Settled claims have not exceeded insurance coverage for each of the past five fiscal years.

The City’s deposit for its banking layer administered by NCCSIF of $1,539,122 and $1,707,326 as of June 30, 2025 and 2024 is recorded in the risk management fund as insurance deposits, respectively. The insurance deposit is net of any outstanding claims liability. Activity for the fiscal years ended June 30, 2025 and 2024 is as follows:

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

15. RISK MANAGEMENT, Continued
Investment Claims
Balance Deposits & Income & Claims paid Admin Balance
June 30, 2023 Other income FMV change Net of refunds & other exp June 30, 2024 General Liability 960,580$ 402,359$ 115,690$ (1,030,271)$ (148,700)$ 299,658$ Workers' Compensation 2,216,421 760,125 286,066 (1,252,309) (602,635) 1,407,668 Total 3,177,001$ 1,162,484$ 401,756$ (2,282,580)$ (751,335)$ 1,707,326$ Investment Claims
Balance Deposits & Income & Claims paid Admin Balance
June 30, 2024 Other income FMV change Net of refunds & other exp June 30, 2025 General Liability 299,658$ 611,490$ 230,558$ (963,771)$ 40,154$ 218,089$ Workers' Compensation 1,407,668 1,107,549 427,005 (1,512,388) (108,801) 1,321,033 Total 1,707,326$ 1,719,039$ 657,563$ (2,476,159)$ (68,647)$ 1,539,122$

The following is summary financial information of the NCCSIF for the liability and workers’ compensation program for the fiscal year ended June 30, 2025:

Workers'
Liability Compensation Total
Assets 30,192,712$ 69,080,751$ 99,273,463$
Liabilities 19,164,773 44,863,170 64,027,943
Net assets 11,027,939 24,217,581 35,245,520
Revenues 24,917,613 17,107,937 42,025,550
Expenses 21,926,032 17,086,167 39,012,199
Operating income 2,991,581 21,770 3,013,351 Investment income 1,890,802 3,992,885 5,883,687 Net income 4,882,383 4,014,655 8,897,038
Net position, beginning of year 6,145,556 20,202,926 26,348,482 Net position, end of year 11,027,939$ 24,217,581$ 35,245,520$

The NCCSIF audited financial statements for the period ended June 30, 2025 are available on the City’s website.
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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

15. RISK MANAGEMENT, Continued
Coverage Limits:

Coverage provider Payment Source
LIABILITY CLAIMS:
-$ 100,000$ Self-Insured Banking layer
100,001 1,000,000 Northern California Cities Self Insurance Fund Shared risk pool 1,000,001 40,000,000 California Joint Pow ers Risk Management Authority Shared risk pool WORKERS' COMPENSATION:
-$ 100,000$ Self-Insured Banking layer
100,001 500,000 Northern California Cities Self Insurance Fund Shared risk pool 500,001 40,000,000 California Joint Pow ers Risk Management Authority Shared risk pool Amount

16. COMMITMENTS
Facilities Augmentation Fund – Folsom South Area Facilities Plan

For the purpose of implementing the Folsom South Area Facilities Plan of the Public Facilities Element of the General Plan of the City of Folsom, a Facilities Augmentation Fee (FAF) and Critical and General Facilities Augmentation Funds have been established for the purpose of funding the construction of both General and Critical Facilities. Such fees are intended to augment existing City fees and thereby provide the necessary means for financing the construction of the facilities identified in the Folsom South Area Facilities Plan and shall be imposed upon each parcel of real property within a specified area. "General Facilities" are those water delivery, sewer, roadway and drainage improvements identified in the Folsom South Area Facilities Plan as prerequisites for development in the Folsom South Area. "Critical Facilities" are the following facilities which are identified in the Folsom South Area Facilities Plan:
improvements to the treatment and water storage facilities, upgrading of the sewer pump station facilities and provision for an additional sewage outflow main.

The amount of the FAF will be revised annually, to be effective on January 1 of each year commencing January 1, 1984. Critical facilities fees are due and payable at time of recording of any final subdivision or parcel map covering property within the specified area.

A property owner/developer shall be entitled to credits against the FAF. A property owner/developer who has installed and paid for or subjected its property to assessment liens to cover the cost of installing general and/or critical facilities shall receive a credit against that portion of the FAF attributable to general and/or critical fees. If the credit exceeds the portion of the FAF attributable to general facilities, the difference shall be reimbursed to the property owner/developer. If the credit exceeds the portion of the FAF attributable to critical facilities, the excess may, in the discretion of the City Council, be credited against the portion of the FAF attributable to general facilities. Otherwise, the amount shall be reimbursed to the property owner/developer. No interest shall be paid upon the amount, which the property owner/developer is due from general facilities account. Reimbursement to developers shall have priority over the use of general facilities fees for the construction of general facilities. 103

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

16. COMMITMENTS, Continued
During the year ended June 30, 2025 the City received $0 of critical facilities fees. The City, at June 30, 2025 had $132,499 available for reimbursement of general facilities credits.

Annexation Agreement

The City of Folsom annexed the Alder Creek Development as of January 1, 1993. This annexation consists of 310 acres. The annexation facilitated the development of an Auto-Mall on approximately 56 acres. The site is immediately adjacent to the Folsom Boulevard and Highway 50 freeway exit. The retail sales tax produced by the taxable sales of all of the businesses within this area is shared, 50% to the City and 50% to Sacramento County through a property tax exchange agreement.

17. CONTINGENT LIABILITIES
General Liability – There are various claims and legal actions pending against the City for which no provision has been made to the financial statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.

The City has received federal grants for specific purposes that are subject to review and audit by the federal government. Although such audits could result in expenditure disallowances under grant terms, any required reimbursements are not expected to be material.

The City is self-insured and participates in a Public Entity Risk Pool. Details of this are covered in Note 15.

Arbitrage Rebate – Rebatable arbitrage is defined by the Internal Revenue Service Code Section 148 as earnings on investments purchased from the gross proceeds of a bond issue that are in excess of the amount that would have been earned if the investments were invested at a yield equal to the yield on the bond issue. The rebatable arbitrage must be paid to the federal government. The City estimates that rebatable arbitrage liability, if any, will be immaterial to its overall financial condition.

18. DEFICIT FUND BALANCES
 The Planning Services Special Revenue Fund had a deficit fund balance of $91,455 at June 30, 2025 primarily as a result of expenditures incurred in advance of receipt of revenues and will be eliminated with future revenues.
 The Humbug Willow Creek Special Revenue Fund had a deficit fund balance of $76,490 at June 30, 2025 primarily as a result of expenditures incurred in advance of receipt of revenues and will be eliminated with future revenues.
 The Compensated Leaves Fund had a deficit fund balance of $98,998 at June 30, 2025 primarily as a result of a higher number of employees retiring than anticipated.

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03/24/2026 Item No.9.

City of Folsom

NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

19. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
 Expenditures exceeded appropriations in the Folsom Ranch Financing Authority Debt Service Fund by $603,154 due to interest payments for CFD#18 and CFD#23 IA4.  Expenditures exceeded appropriations in the Light and Landscape and Maintenance District Fund by $13,145 due to planned expenditure of fund balance.  Expenditures exceeded appropriations in the Zoo Special Revenue Fund by $99,742 due to planned expenditure of fund balance.

20. RESTATEMENTS
During 2025, the City recorded the following restatements:
(1) Changes in accounting principle – The City implemented GASB 101 – Compensated absences in fiscal year 2025, which resulted in a restatement of the prior year’s compensated absences liability balance in order to include additional types of time-off that were previously not included in the liability.
(2) Error correction to Folsom Housing Special Revenue Fund and Other Special Revenue Fund – Unavailable revenue and receivables were restated to record the interest receivables in the Folsom Special Revenue Fund and Other Special Revenue Fund. The interest receivables were not recorded correctly in the past and adjustment was necessary to properly restate the unavailable revenue balance and receivables balances. Therefore, unavailable revenue and interest receivables in the Folsom Special Revenue Fund and Other Special Revenue Fund were understated by $6,498,755, and net position in the governmental activities was understated by $ 6,498,755 for the fiscal year ended June 30, 2024. 6/30/2024 Change in
As Previously
Reported
Accounting
Principle(1)
Error
Correction (2)
7/1/2024
As Restated
Governmental Activities 426,290,230$ (2,523,703)$ 6,498,755$ 430,265,282$ Business-type Activities 229,623,818 (398,973) - 229,224,845 Water Fund 129,384,540 (217,646) - 129,166,894 Wastewater Fund 84,914,422 (90,102) - 84,824,320 Solid Waste 15,275,981 (91,225) - 15,184,756

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REQUIRED SUPPLEMENTARY INFORMATION

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03/24/2026 Item No.9.

City of Folsom - REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - LAST 10 YEARS Miscellaneous Miscellaneous Miscellaneous Miscellaneous Total Pension Liability 2016 2017 2018 2019
Service Cost 3,463,856$ 3,550,932$ 3,904,924$ 3,765,497$ Interest on the total pension liability 12,827,742 13,405,790 13,879,289 14,940,919 Changes in benefit terms 819,877 282,187 34,533 2,198,934 Changes in assumptions (3,280,830) - 11,945,025 (1,842,927) Differences between actual and expected experience 294,972 (2,420,273) (2,802,533) 5,429,806 Benefit payments, including refunds of employee contributions (6,486,519) (6,795,160) (8,072,643) (9,232,060) Net change in total pension liability 7,639,098 8,023,476 18,888,595 15,260,169 Total pension liability - beginning 171,360,194 178,999,292 187,022,768 205,911,363 Total pension liability - ending (a) 178,999,292$ 187,022,768$ 205,911,363$ 221,171,532$ Plan fiduciary net position
Contributions - employer 4,523,081$ 5,159,464$ 5,781,400$ 6,511,558$ Contributions - employee 1,593,443 1,580,964 1,655,762 1,634,191 Net investment income 2,668,545 593,250 13,918,884 11,477,303 Benefit payments (6,486,519) (6,795,160) (8,072,643) (9,232,060) Net Plan to Plan Resource Movement - - 2,162 (338) Administrative expense (138,974) (75,236) (182,949) (213,243) Other Miscellaneous Income/(Expense) - - - (404,953) Net change in plan fiduciary net position 2,159,576 463,282 13,102,616 9,772,458 Plan fiduciary net position - beginning 121,289,796 123,449,372 123,743,093 136,845,709 Plan fiduciary net position - ending (b) 123,449,372 123,912,654 136,845,709 146,618,167 Net pension liability - ending (a)-(b) 55,549,920$ 63,110,114$ 69,065,654$ 74,553,365$ Plan fiduciary net position as a percentage of the total pension liability 68.97% 66.26% 66.46% 66.29%
Covered payroll 21,527,190 22,082,925 21,890,526 22,161,909 Net pension liability as percentage of covered payroll 258.05% 285.79% 315.50% 336.40% Measurement Date June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 Safety Safety Safety Safety
Total Pension Liability 2016 2017 2018 2019
Service Cost 3,525,048$ 3,439,072$ 3,853,558$ 3,990,444$ Interest on the total pension liability 11,200,515 11,862,083 12,440,896 13,235,635 Changes in benefit terms 253,356 254,592 304,817 321,724 Changes in assumptions (2,937,784) - 11,011,292 (718,527) Differences between actual and expected experience (106,665) 681,197 (165,828) 3,317,456 Benefit payments, including refunds of employee contributions (6,454,000) (7,486,831) (7,953,218) (8,383,432) Net change in total pension liability 5,480,470 8,750,113 19,491,517 11,763,300 Total pension liability - beginning 150,667,533 156,148,003 164,898,116 184,389,633 Total pension liability - ending (a) 156,148,003$ 164,898,116$ 184,389,633$ 196,152,933$ Plan fiduciary net position
Contributions - employer 4,705,025$ 4,910,890$ 5,843,744$ 6,557,790$ Contributions - employee 1,313,706 1,218,093 1,488,989 1,373,843 Net investment income 2,317,142 557,570 11,610,189 9,650,208 Benefit payments (6,454,000) (7,486,831) (7,953,218) (8,383,432) Net Plan to Plan Resource Movement (49,988) - - (287) Administrative expense (118,942) (64,412) (154,767) (180,230) Other Miscellaneous Income/(Expense) - - - (342,260) Net change in plan fiduciary net position 1,712,943 (864,690) 10,834,937 8,675,632 Plan fiduciary net position - beginning 103,976,672 105,689,615 104,824,925 115,659,862 Plan fiduciary net position - ending (b) 105,689,615 104,824,925 115,659,862 124,335,494 Net pension liability - ending (a)-(b) 50,458,388$ 60,073,191$ 68,729,771$ 71,817,439$ Plan fiduciary net position as a percentage of the total pension liability 67.69% 63.57% 62.73% 63.39%
Covered payroll 18,593,681 18,863,681 19,300,575 20,342,212 Net pension liability as percentage of covered payroll 271.37% 318.46% 356.10% 353.05% Measurement Date June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 108

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03/24/2026 Item No.9.

Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous 2020 2021 2022 2023 2024 2025
3,952,202$ 3,940,722$ 4,083,345$ 4,568,455$ 4,569,347$ 4,914,812$ 15,875,881 16,632,114 17,438,630 18,269,904 19,187,409 20,214,065 - - - - 278,025 - - - - 9,270,766 - - 3,930,177 1,289,507 1,989,434 2,153,844 3,556,467 5,358,534 (10,075,046) (10,995,275) (11,712,031) (12,897,624) (13,854,609) (14,963,296) 13,683,214 10,867,068 11,799,378 21,365,345 13,736,639 15,524,115 221,171,532 234,854,746 245,721,814 257,521,192 278,886,537 292,623,176 234,854,746$ 245,721,814$ 257,521,192$ 278,886,537$ 292,623,176$ 308,147,291$ 7,274,779$ 8,937,259$ 9,737,754$ 9,966,474$ 11,102,563$ 10,599,158$ 1,786,891 1,687,940 1,794,482 1,834,324 2,127,909 1,994,253 9,627,244 7,675,619 36,481,841 (15,168,020) 11,416,729 18,662,944 (10,075,046) (10,995,275) (11,712,031) (12,897,624) (13,854,609) (14,963,296) - - - - - - (104,630) (218,692) (162,042) (123,563) (133,809) (156,740) 338 - - - - - 8,509,576 7,086,851 36,140,004 (16,388,409) 10,658,783 16,136,319 146,618,167 155,127,743 162,214,594 198,354,598 181,966,189 192,624,972 155,127,743 162,214,594 198,354,598 181,966,189 192,624,972 208,761,291 79,727,003$ 83,507,220$ 59,166,594$ 96,920,348$ 99,998,204$ 99,386,000$

66.05% 66.02% 77.02% 65.25% 65.83% 67.75%
23,324,130 22,682,427 23,245,952 23,261,240 25,421,129 28,188,744 341.82% 368.16% 254.52% 416.66% 393.37% 352.57%
June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 June 30, 2024 Safety Safety Safety Safety Safety Safety
2020 2021 2022 2023 2024 2025
4,185,471$ 4,453,870$ 4,771,019$ 5,347,890$ 5,257,892$ 5,663,719$ 13,965,196 14,704,486 15,587,867 16,489,459 17,369,326 18,534,449 - - - - 79,267 - - - - 10,437,990 - - 1,485,082 1,091,393 2,490,070 (96,585) 1,961,659 6,452,421 (8,826,653) (9,246,421) (9,657,617) (10,388,759) (11,774,382) (13,019,057) 10,809,096 11,003,328 13,191,339 21,789,995 12,893,762 17,631,532 196,152,933 206,962,029 217,965,357 231,156,696 252,946,691 265,840,453 206,962,029$ 217,965,357$ 231,156,696$ 252,946,691$ 265,840,453$ 283,471,985$ 7,225,666$ 8,486,598$ 8,489,122$ 8,928,192$ 10,038,487$ 10,485,360$ 1,502,266 1,690,156 1,682,896 1,724,412 2,005,666 2,042,244 8,083,078 6,534,833 31,389,241 (13,113,470) 9,946,458 16,316,533 (8,826,653) (9,246,421) (9,657,617) (10,388,759) (11,774,382) (13,019,057) - - - - - - (88,728) (186,414) (139,362) (106,694) (116,420) (137,042) 287 - - - - - 7,895,916 7,278,752 31,764,280 (12,956,319) 10,099,809 15,688,038 124,335,494 132,231,410 139,510,162 171,274,442 158,318,123 168,417,932 132,231,410 139,510,162 171,274,442 158,318,123 168,417,932 184,105,970 74,730,619$ 78,455,195$ 59,882,254$ 94,628,568$ 97,422,521$ 99,366,015$

63.89% 64.01% 74.09% 62.59% 63.35% 64.95%
21,877,386 23,938,536 24,365,618 24,642,629 24,642,629 27,341,740 341.59% 327.74% 245.77% 384.00% 548.08% 363.42%
June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 June 30, 2024 109

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03/24/2026 Item No.9.

City of Folsom - REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - LAST 10 YEARS
Miscellaneous Miscellaneous Miscellaneous Miscellaneous 2016 2017 2018 2019
Actuarially determined contribution 5,159,464$ 5,819,059$ 6,531,894$ 7,191,072$ Contributions in relation to the
actuarially determined contributions (5,159,464) (5,819,059) (6,531,894) (7,191,072) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 22,082,925$ 21,890,526$ 22,161,909$ 23,324,130$ Contributions as a percentage of
covered payroll 23.36% 26.58% 29.47% 30.83%
Safety Safety Safety Safety
2016 2017 2018 2019
Actuarially determined contribution 4,910,890$ 5,861,310$ 6,574,602$ 7,128,404$ Contributions in relation to actuarially
deemed contributions (4,910,890) (5,861,310) (6,574,602) (7,128,404) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 18,863,681$ 19,300,575$ 20,342,212$ 21,877,386$ Contributions as a percentage of
covered payroll 26.03% 30.37% 32.32% 32.58%
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age Normal Cost Method
Amortization method Level percent of payroll
Asset valuation method Fair value
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.00%
Retirement age 55
110

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03/24/2026 Item No.9.

Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous 2020 2021 2022 2023 2024 2025
8,943,032$ 9,775,127$ 9,959,107$ 10,886,274$ 10,828,318$ 11,363,517$ (8,943,032) (9,775,127) (9,959,107) (10,886,274) (10,828,318) (11,413,995) -$ -$ -$ -$ -$ (50,478)$ 23,938,536$ 23,245,952$ 23,261,240$ 25,421,129$ 28,188,744$ 29,651,764$

37.36% 42.05% 42.81% 42.82% 38.41% 38.49%
Safety Safety Safety Safety Safety Safety
2020 2021 2022 2023 2024 2025
8,502,037$ 8,506,647$ 8,942,932$ 9,789,430$ 10,754,191$ 11,229,610$ (8,502,037) (8,506,647) (8,942,932) (9,789,430) (10,754,191) (11,609,094) -$ -$ -$ -$ -$ (379,484)$ 22,682,427$ 24,365,618$ 24,642,629$ 24,642,629$ 27,341,740$ 30,814,512$

37.48% 34.91% 36.29% 39.73% 39.33% 37.67%
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03/24/2026 Item No.9.

City of Folsom - REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS - LAST 10 FISCAL YEARS* Measurement Date 2017 2018 2019 2020
Total OPEB Liability
Service cost 2,148,999$ 2,208,096$ 2,305,252$ 1,355,366$ Interest 4,259,868 5,040,097 4,806,648 5,530,728 Changes of assumptions - (9,590,919) (6,686,894) - Differences between actual and expected experience - - (3,828,632) - Benefit payments, including refunds of employee
contributions (3,943,224) (4,100,953) (4,227,327) (4,432,280) Net change in the total OPEB liability 2,465,643 (6,443,679) (7,630,953) 2,453,814 Total OPEB liability - beginning 113,028,453 115,494,096 109,050,417 101,419,464 Total OPEB liabilty - ending (a) 115,494,096 109,050,417 101,419,464 103,873,278 Plan Fiduciary Net Position
Contribution - employer 4,053,403 4,600,953 4,727,327 4,932,280 Net investment income 464,483 311,032 306,283 329,603 Differences between projected and actual
earnings on plan investments - 5,677 - - Benefit payments (3,603,403) (4,100,953) (4,227,327) (4,432,280) Net change in plan fiduciary net position 914,483 816,709 806,283 829,603 Plan fiduciary net position - beginning 3,853,948 4,768,431 5,585,140 6,391,423 Plan fiduciary net position - ending (b) 4,768,431 5,585,140 6,391,423 7,221,026 Net OPEB liability/asset - ending (a) - (b) 110,725,665$ 103,465,277$ 95,028,041$ 96,652,252$ Plan fiduciary net position as a percentage of
the total OPEB liability 4.13% 5.12% 6.30% 6.95%
Covered-employee payroll N/A N/A 17,367,000$ 17,888,010$ Net OPEB liability as a percentage of
covered-employee payroll N/A N/A 547.18% 540.32%
Measurement date June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 Notes to Schedule - *Fiscal year 2017 was the 1st year of implementation. 112

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03/24/2026 Item No.9.
2021 2022 2023 2024 2025
1,397,788$ 1,169,455$ 1,162,729$ 1,023,877$ 1,091,940$ 5,656,980 5,510,140 5,240,542 5,428,368 5,641,505 (836,918) - 435,195 1,323,692 (2,128,247) (3,624,335) (6,564,955) 1,925,121 1,801,875 11,153,552 (4,899,343) (5,174,361) (4,840,526) (5,588,941) (5,957,277) (2,305,828) (5,059,721) 3,923,061 3,988,871 9,801,473 103,873,278 101,567,450 96,507,729 100,430,790 104,419,661 101,567,450 96,507,729 100,430,790 104,419,661 114,221,134 5,139,343 5,674,361 5,340,526 6,088,941 6,457,276 1,644,097 (1,754,779) 627,250 1,072,234 1,227,575 - - - - - (4,899,343) (5,174,361) (4,840,526) (5,588,941) (5,957,277) 1,884,097 (1,254,779) 1,127,250 1,572,234 1,727,574 7,221,026 9,105,123 7,850,344 8,977,594 10,549,828 9,105,123 7,850,344 8,977,594 10,549,828 12,277,402 92,462,327$ 88,657,385$ 91,453,196$ 93,869,833$ 101,943,732$

8.96% 8.13% 8.94% 10.10% 10.10%
16,766,110$ 17,227,178$ 12,985,824$ 13,349,427$ 10,822,083$ 551.48% 514.64% 704.25% 703.17% 942.00%
June 30, 2021 June 30, 2022 June 30, 2023 June 30, 2024 June 30, 2025 113

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City of Folsom - REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF INVESTMENT RETURNS
2017 2018 2019 2020 2021 2022 2023 2024 2025
Annual money-weighted rate of return-
net of investment expense 10.9% 6.0% 5.1% 4.8% 22.5% -18.0% 4.5% 10.3% 9.3% Notes to Schedule
*Fiscal year 2017 was the 1st year of implementation.
114

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Taxes:

Property tax 44,658,430$ 44,658,430$ 43,965,065$ (693,365)$ Sales and use tax 29,075,767 29,075,767 26,938,575 (2,137,192) Transient occupancy tax 2,500,000 2,500,000 2,598,048 98,048 Real property transfer 927,000 927,000 878,847 (48,153) Other taxes 1,250,000 1,250,000 1,251,060 1,060 License and permits 3,916,089 3,916,089 3,885,168 (30,921) Vehicle license fees 10,596,942 10,596,942 10,421,709 (175,233) Intergovernmental 362,080 3,109,170 3,402,954 293,784 Charges for current services 13,897,478 13,897,478 20,828,022 6,930,544 Fines and forfeitures 109,200 109,200 150,269 41,069 Investment income (loss) 300,000 300,000 2,508,275 2,208,275 Miscellaneous 3,368,906 6,712,582 739,205 (5,973,377) Total revenues 110,961,892 117,052,658 117,567,197 514,539 EXPENDITURES:

Current:

General government 21,681,389 22,413,247 20,732,237 1,681,010 Public safety 56,958,669 58,163,349 59,119,899 (956,550) Public ways and facilities 8,944,026 9,457,147 8,353,401 1,103,746 Community services 7,191,463 7,711,916 7,897,809 (185,893) Culture and recreation 18,480,991 19,050,900 19,558,374 (507,474) Capital outlay 3,482,599 8,003,045 6,583,345 1,419,700 Debt service:

Principal payments 241,453 241,453 721,244 (479,791) Interest and fiscal charges 38,457 38,457 121,048 (82,591) Total expenditures 117,019,047 125,079,514 123,087,357 1,992,157

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,057,155) (8,026,856) (5,520,160) 2,506,696 OTHER FINANCING SOURCES (USES):

SBITA proceeds - - 1,105,365 1,105,365 Transfers in 6,107,155 6,107,155 5,254,900 (852,255) Transfers out (50,000) (3,564,985) (3,564,985) - Total other financing sources (uses) 6,057,155 2,542,170 2,795,280 253,110 NET CHANGE IN FUND BALANCES - (5,484,686) (2,724,880) 2,759,806$ FUND BALANCES, BEGINNING OF YEAR 34,394,397 34,394,397 34,394,397 FUND BALANCES, END OF YEAR 34,394,397$ 28,909,711$ 31,669,517$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Required Supplementary Information
115Page 370
03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental -$ -$ 801,691$ 801,691$ Charges for current services 20,000 20,000 32,874 12,874 Fines and forfeitures 300,000 300,000 3,845,010 3,545,010 Investment income (loss) 300,000 300,000 1,326,089 1,026,089 Miscellaneous 7,363 7,363 8,813 1,450 Total revenues 627,363 627,363 6,014,477 5,387,114 EXPENDITURES:

Current:

General government 615,300 711,512 492,919 218,593 Total expenditures 615,300 711,512 492,919 218,593

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,063 (84,149) 5,521,558 5,605,707 OTHER FINANCING SOURCES (USES):

Transfers out (12,063) (12,063) (12,063) - Total other financing sources (uses) (12,063) (12,063) (12,063) - NET CHANGE IN FUND BALANCES - (96,212) 5,509,495 5,605,707$ FUND BALANCES, BEGINNING OF YEAR 48,256,621 48,256,621 48,256,621 FUND BALANCES, END OF YEAR 48,256,621$ 48,160,409$ 53,766,116$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

FOLSOM HOUSING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Required Supplementary Information
116Page 371
03/24/2026 Item No.9.

City of Folsom

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025

Budgetary Data
Annual budgets are adopted on a basis consistent with generally accepted accounting principals for all governmental funds except the capital projects funds, which adopt multiyear length budgets, and fiduciary funds, which are not budgeted. The level of control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund. All appropriations remaining at year-end lapse, except for purchases in progress which are carried forward to the following year and assigned by encumbrances. The following procedures are followed in establishing the budgetary data reflected in the financial statements:

A. Department Heads prepare a budget request based upon the previous year's expenditures.

B. Meetings are held between the Department Heads, Chief Financial Officer, and the City Manager for the purpose of reviewing and prioritizing budget requests.

C. The City Manager submits the proposed city budget to the City Council, who makes decisions regarding department budgets.

D. Transfers between funds and changes in the total budget must be approved by the City Council.

Budget information is presented for the General Fund and the Folsom Housing Special Revenue Fund as required supplementary information. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.
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OTHER SUPPLEMENTARY INFORMATION

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VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Taxes:

Intergovernmental 3,983,195$ 3,983,195$ 983,195$ (3,000,000)$ Investment income (loss) - - (456,070) (456,070) Miscellaneous 91,207 91,207 - (91,207) Total revenues 4,074,402 4,074,402 527,125 (3,547,277) EXPENDITURES:

Debt service:

Principal payments 3,202,123 3,202,123 3,202,123 - Interest and fiscal charges 781,072 781,072 781,072 - Total expenditures 3,983,195 3,983,195 3,983,195 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 91,207 91,207 (3,456,070) (3,547,277) OTHER FINANCING SOURCES (USES):

Transfers out (91,207) (91,207) - 91,207 Total other financing sources (uses) (91,207) (91,207) - 91,207 NET CHANGE IN FUND BALANCES - - (3,456,070) (3,456,070)$ FUND BALANCES, BEGINNING OF YEAR 28,670,402 28,670,402 28,670,402 FUND BALANCES, END OF YEAR 28,670,402$ 28,670,402$ 25,214,332$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

FOLSOM PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Taxes:

Intergovernmental 7,609,445$ 7,609,445$ 6,987,599$ (621,846)$ Investment income (loss) - - (7,582,419) (7,582,419) Total revenues 7,609,445 7,609,445 (594,820) (8,204,265) EXPENDITURES:

Debt service:

Principal payments 1,225,000 1,225,000 1,225,000 - Interest and fiscal charges 6,384,445 6,384,445 6,987,599 (603,154) Total expenditures 7,609,445 7,609,445 8,212,599 (603,154)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - (8,807,419) (8,807,419) OTHER FINANCING SOURCES (USES):

Bond issuance-par value - - 37,440,000 37,440,000 Bond issuance-premium/discount - - 2,292,446 2,292,446 Total other financing sources (uses) - - 39,732,446 2,292,446 NET CHANGE IN FUND BALANCES - - 30,925,027 (6,514,973)$ FUND BALANCES, BEGINNING OF YEAR 139,488,908 139,488,908 139,488,908 FUND BALANCES, END OF YEAR 139,488,908$ 139,488,908$ 170,413,935$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

FOLSOM RANCH FINANCING AUTHORITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental 3,194,086$ 3,377,484$ 4,562,179$ 1,184,695$ Charges for current services 1,362,785 1,362,785 3,857,718 2,494,933 Investment income (loss) 655,000 655,000 2,445,832 1,790,832 Total revenues 5,211,871 5,395,269 10,877,633 5,482,364 EXPENDITURES:

Current:

Public ways and facilities 1,983,100 2,862,671 1,219,108 1,643,563 Capital outlay 3,050,000 3,979,344 2,738,148 1,241,196 Total expenditures 5,033,100 6,842,015 3,957,256 2,884,759

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 178,771 (1,446,746) 6,920,377 8,367,123 OTHER FINANCING SOURCES (USES):

Transfers out (178,771) (178,771) (178,771) - Total other financing sources (uses) (178,771) (178,771) (178,771) - NET CHANGE IN FUND BALANCES - (1,625,517) 6,741,606 8,367,123$ FUND BALANCES, BEGINNING OF YEAR 37,254,452 37,254,452 37,254,452 FUND BALANCES, END OF YEAR 37,254,452$ 35,628,935$ 43,996,058$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

TRANSPORTATION IMPROVEMENT CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 552,481$ 664,537$ 8,470,208$ 7,805,671$ Investment income (loss) 800,000 800,000 2,637,909 1,837,909 Total revenues 1,352,481 1,464,537 11,108,117 9,643,580 EXPENDITURES:

Current:

General government 84,772 95,674 230,384 (134,710) Public safety 10,024 21,337 10,182 11,155 Public ways and facilities - (21,302) 460,784 (482,086) Culture and recreation 45,724 97,332 5,155 92,177 Capital outlay 1,130,000 9,672,685 8,179,121 1,493,564 Total expenditures 1,270,520 9,865,726 8,885,626 980,100

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 81,961 (8,401,189) 2,222,491 10,623,680 OTHER FINANCING SOURCES (USES):

Transfers out (81,961) (81,961) (81,961) - Total other financing sources (uses) (81,961) (81,961) (81,961) - NET CHANGE IN FUND BALANCES - (8,483,150) 2,140,530 10,623,680$ FUND BALANCES, BEGINNING OF YEAR 43,316,400 43,316,400 43,316,400 FUND BALANCES, END OF YEAR 43,316,400$ 34,833,250$ 45,456,930$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

FPA CAPITAL IMPROVEMENT
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
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COMBINING AND INDIVIDUAL FUND

FINANCIAL STATEMENTS AND SCHEDULES

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NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Debt Service Funds

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Capital Projects Funds

Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Permanent Funds

Permanent funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for proposes that support the reporting government’s programs.

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Special
Revenue
Funds
Debt
Service
Funds
Capital
Projects
Funds
Permanent
Funds
Total Nonmajor
Governmental
Funds
ASSETS
Cash and cash equivalents 31,025,711$ 1,792,312$ 33,444,936$ 499,531$ 66,762,490$ Cash with fiscal agent - - 230,117 - 230,117 Receivables:

General accounts 1,445,186 - 850 - 1,446,036 Accrued interest 429,854 31,340 472,449 8,745 942,388 Loans 4,700,601 - - - 4,700,601 Special assessments - delinquent - 41,329 - - 41,329 Due from other governments 753,588 - - - 753,588 Restricted assets:

Cash and cash equivalents 352,300 - - - 352,300 Total assets 38,707,240$ 1,864,981$ 34,148,352$ 508,276$ 75,228,849$

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable 847,418$ -$ 39,006$ -$ 886,424$ Due to other funds 76,490 - - - 76,490 Deposit payable 287,297 - - - 287,297 Unearned revenue 449,692 41,329 - - 491,021 Total liabilities 1,660,897 41,329 39,006 - 1,741,232 Deferred Inflows of Resources
Deferred inflows -unavailable revenue 1,328,434 - - - 1,328,434 Total deferred inflows of resources 1,328,434 - - - 1,328,434

Fund Balances:

Nonspendable - - - 499,531 499,531 Restricted 25,451,786 1,823,652 34,109,346 8,745 61,393,529 Committed 10,434,068 - - - 10,434,068 Unassigned (167,945) - - - (167,945) Total fund balances 35,717,909 1,823,652 34,109,346 508,276 72,159,183 Total liabilities, deferred inflows of
resources and fund balances 38,707,240$ 1,864,981$ 34,148,352$ 508,276$ 75,228,849$

CITY OF FOLSOM, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2025
_______________
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03/24/2026 Item No.9.

Special
Revenue
Funds
Debt
Service
Funds
Capital
Projects
Funds
Permanent
Funds
Total
Nonmajor
Governmental
Funds
REVENUES:

License and permits 12,663$ -$ -$ -$ 12,663$ Intergovernmental 5,380,089 - 6,592 - 5,386,681 Charges for current services 7,385,126 - 2,416,371 - 9,801,497 Fines and forfeitures 216,913 - - - 216,913 Assessment collections - 246 - - 246 Investment income (loss) 1,349,911 77,699 1,707,615 21,663 3,156,888 Miscellaneous 89,042 - 16,056 - 105,098 Total revenues 14,433,744 77,945 4,146,634 21,663 18,679,986 EXPENDITURES:

Current:

General government 397,495 - - - 397,495 Public safety 68,622 - - - 68,622 Public ways and facilities 6,062,981 - 97,006 - 6,159,987 Culture and recreation 151,026 - 6,500 - 157,526 Capital outlay 818,252 - 515,792 - 1,334,044 Total expenditures 7,498,376 - 619,298 - 8,117,674

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 6,935,368 77,945 3,527,336 21,663 10,562,312 OTHER FINANCING SOURCES (USES):

Transfers in - - 841,588 - 841,588 Transfers out (1,127,655) - (21,762) (386) (1,149,803) Total other financing sources (uses) (1,127,655) - 819,826 (386) (308,215) NET CHANGE IN FUND BALANCES 5,807,713 77,945 4,347,162 21,277 10,254,097 FUND BALANCES, BEGINNING OF YEAR 29,910,196 1,745,707 29,762,184 486,999 61,905,086 FUND BALANCES, END OF YEAR 35,717,909$ 1,823,652$ 34,109,346$ 508,276$ 72,159,183$

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
_______________
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NONMAJOR SPECIAL REVENUE FUNDS

Planning Services:

To account for revenues and disbursements of special planning services for developers.

Transportation Tax:

To account for receipts of SB-325 transportation tax monies.

Park Dedication (Quimby):

To account for Quimby Act Fees for park development purposes.

Traffic Congestion Relief:

To account for revenues and expenditures associated with the relief of Traffic Congestion.

Gas Tax:

Road Maint/Rehab – To account for money apportioned under Streets and Highways Code Sec. 2032.

Gas Tax 2105 - To account for money apportioned under Streets and Highways Code Sec. 2105.

Gas Tax 2106 - To account for money apportioned under Streets and Highways Code Sec. 2106.

Gas Tax 2107 - To account for money apportioned under Streets and Highways Codes Sec. 2107 and SB- 300 Special Motor Vehicle Fuel Tax Apportionment.

Gas Tax 2107.5 - To account for money apportioned under Street and Highways Code Sec. 2107.5.

Light and Landscape Districts:

To account for assessments for maintenance pursuant to the 1972 Lighting and Landscaping Act in the following subsidiary funds:

Los Cerros L&L Briggs Ranch L&L Natoma Station L&L
Folsom Heights L&L Broadstone #3 L&L Broadstone L&L
Hannaford Cross L&L Lake Natoma Shores L&L Cobble Hills/Reflections L&L Prairie Oaks #2 L&L Sierra Estates L&L Lakeridge Estates L&L La Collina Del Lago L&L Cobble Ridge L&L Prairie Oaks Ranch L&L Silverbrook L&L Willow Creek East L&L Blue Ravine Oaks L&L Steeplechase L&L Willow Creek South L&L American River North L&L Willow Springs L&L Willow Springs Maint. Dist. CFD# 12 Maint. Dist.

CFD# 13 ARC Maint. Dist. American River North #2 L&L The Residences at ARC L&L American River North #3 L&L Blue Ravine Oaks # 2 L&L Folsom Heights #2 L&L Broadstone #4 L&L CFD #16 Islands Maint. Dist. Willow Creek East #2 L&L Prospect Ridge L&L CFD#18 Maint Dist. CFD#19 Maint Dist.

CFD #23 IA1 Maint Dist. CFD #23 IA2 Maint Dist. CFD #23 IA3 Maint Dist.

CFD #23 IA4 Maint Dist. CFD #23 IA5 Maint Dist. CFD #23 IA6 Maint Dist.

CFD #23 IA7 Maint Dist.

Transportation System Management:

To account for revenue and disbursements for study of future traffic needs.

Community Development Block Grant:

To account for Community Development Grant monies.

Humbug Willow Creek:

To account for revenues and expenditures related to the planning for the Humbug Willow Creek trail area.

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General Plan Amendment:

To account for fees collected for the update of the general plan.

Tree Planting:

To account for revenues and expenditures related to the mitigation of tree loss in construction.

Zoo Special Revenue:

To account for revenues and expenditures for designated zoo activities.

Other Special Revenue:

To account for revenues and expenditures in the following special revenue funds:

Folsom Comm & Cultural Services Housing Trust Special Revenue Truck Management Plan Fee Historical District
Sphere of Influence Oaks at Willow Springs
Police Officer Training Fund Police Impound

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Planning
Services
Transportation
Tax
Park
Dedication
(Quimby)
Traffic
Congestion
Relief
ASSETS
Cash and cash equivalents 380,212$ 404,115$ 2,812,238$ 1,038$ Receivables:

General accounts - - - - Accrued interest 7,577 6,369 48,751 24 Loans - - - - Due from other governments - - - - Restricted assets:

Cash and cash equivalents - 36,000 - - Total assets 387,789$ 446,484$ 2,860,989$ 1,062$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable 29,552$ 21,132$ -$ -$ Due to other funds - - - - Deposits payable - - - - Unearned revenue 449,692 - - - Total liabilities 479,244 21,132 - -

Deferred Inflows of Resources
Deferred inflows -unavailable revenue - - - - Total deferred inflows of resources - - - -

Fund Balances:

Restricted - 425,352 - 1,062 Committed - - 2,860,989 - Unassigned (91,455) - - - Total fund balances (deficit) (91,455) 425,352 2,860,989 1,062 Total liabilities, deferred inflows of resources and
fund balances (deficit) 387,789$ 446,484$ 2,860,989$ 1,062$

CITY OF FOLSOM, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR SPECIAL REVENUE FUNDS
June 30, 2025
_______________
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Gas
Tax
Light and
Landscape
Districts
Transportation
System
Management
Community
Development
Block Grant
ASSETS
10,289,076$ 11,391,030$ 298,102$ 80,784$ Cash and cash equivalents Receivables:
- 39,384 - 24,045 General accounts 93,730 189,530 5,597 1,192 Accrued interest - - - 73,729 Loans 691,286 62,302 - - Due from other governments Restricted assets:
251,498 - 49,802 - Cash and cash equivalents 11,325,590$ 11,682,246$ 353,501$ 179,750$ Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:
38,489$ 584,069$ -$ 22,421$ Accounts payable - - - - Due to other funds - - - - Deposits payable - - - - Unearned revenue 38,489 584,069 - 22,421 Total liabilities

Deferred Inflows of Resources
- - - - Deferred inflows -unavailable revenue - - - - Total deferred inflows of resources

Fund Balances:
11,287,101 11,098,177 - 157,329 Restricted - - 353,501 - Committed - - - - Unassigned 11,287,101 11,098,177 353,501 157,329 Total fund balances (deficit) Total liabilities, deferred inflows of resources and
11,325,590$ 11,682,246$ 353,501$ 179,750$ fund balances (deficit) 135

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03/24/2026 Item No.9.

Humbug
Willow Creek
General Plan
Amendment Tree Planting Zoo
ASSETS
Cash and cash equivalents -$ 739,614$ 1,380,766$ 225,514$ Receivables:

General accounts - 39,760 - 10,138 Accrued interest - 11,033 23,571 4,073 Loans - - - - Due from other governments - - - - Restricted assets:

Cash and cash equivalents - - - - Total assets -$ 790,407$ 1,404,337$ 239,725$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable -$ 2,500$ -$ -$ Due to other funds 76,490 - - - Deposits payable - - - - Unearned revenue - - - - Total liabilities 76,490 2,500 - -

Deferred Inflows of Resources
Deferred inflows -unavailable revenue - - - - Total deferred inflows of resources - - - -

Fund Balances:

Restricted - 787,907 239,725 Committed - - 1,404,337 - Unassigned (76,490) - - - Total fund balances (deficit) (76,490) 787,907 1,404,337 239,725 Total liabilities and
fund balances (deficit) -$ 790,407$ 1,404,337$ 239,725$ JUNE 30,2025
CITY OF FOLSOM, CALIFORNIA_______________

COMBINING BALANCE SHEET

NONMAJOR SPECIAL REVENUE FUNDS (CONTINUED)
136

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03/24/2026 Item No.9.

Other
Total
Nonmajor
Special
Revenue
Funds
ASSETS
3,023,222$ 31,025,711$ Cash and cash equivalents Receivables:
1,331,859 1,445,186 General accounts
38,407 429,854 Accrued interest
4,626,872 4,700,601 Loans
- 753,588 Due from other governments Restricted assets:
15,000 352,300 Cash and cash equivalents 9,035,360$ 38,707,240$ Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:
149,255$ 847,418$ Accounts payable
- 76,490 Due to other funds 287,297 287,297 Deposits payable
- 449,692 Unearned revenue 436,552 1,660,897 Total liabilities

Deferred Inflows of Resources
1,328,434 1,328,434 Deferred inflows -unavailable revenue 1,328,434 1,328,434 Total deferred inflows of resources

Fund Balances:
1,455,133 25,451,786 Restricted
5,815,241 10,434,068 Committed
- (167,945) Unassigned
7,270,374 35,717,909 Total fund balances (deficit) Total liabilities, deferred inflows of resources and
9,035,360$ 38,707,240$ fund balances (deficit)
137

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03/24/2026 Item No.9.

Planning
Services
Transportation
Tax
Park
Dedication
(Quimby)
Traffic
Congestion
Relief
REVENUES:

License and permits -$ -$ -$ -$ Intergovernmental - 7,311 - - Charges for current services 297,187 - - - Fines and forfeitures - - - - Interest 17,531 28,719 123,104 35 Miscellaneous - - - - Total revenues 314,718 36,030 123,104 35 EXPENDITURES:

Current:

General government 350,335 - - - Public safety - - - - Public ways and facilities - 23,137 - - Culture and recreation - - - - Capital outlay - 47,546 - - Total expenditures 350,335 70,683 - -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (35,617) (34,653) 123,104 35 OTHER FINANCING SOURCES (USES):

Transfers out (8,027) - (6,136) - Total other financing
sources (uses) (8,027) - (6,136) - NET CHANGE IN FUND BALANCES (43,644) (34,653) 116,968 35 FUND BALANCES (DEFICIT), BEGINNING OF YEAR (47,811) 460,005 2,744,021 1,027 FUND BALANCES (DEFICIT), END OF YEAR (91,455)$ 425,352$ 2,860,989$ 1,062$

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
FOR THE YEAR ENDED JUNE 30, 2025

CHANGES IN FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS _______________
138

Page 393 ends

03/24/2026 Item No.9.

Gas
Tax
Light and
Landscape
Districts
Transportation
System
Management
Community
Development
Block Grant
REVENUES:
-$ -$ -$ -$ License and permits 4,945,991 109,206 - 162,909 Intergovernmental - 6,621,786 33,115 - Charges for current services - - - - Fines and forfeitures 383,756 519,524 14,923 3,544 Interest - 1,080 - - Miscellaneous 5,329,747 7,251,596 48,038 166,453 Total revenues EXPENDITURES:

Current:
- 1,685 - - General government - - - - Public safety 38,489 5,737,605 - 158,879 Public ways and facilities - - - - Culture and recreation 770,706 - - - Capital outlay 809,195 5,739,290 - 158,879 Total expenditures

EXCESS (DEFICIENCY) OF REVENUES
4,520,552 1,512,306 48,038 7,574 OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES):
(1,000,000) (106,697) (243) - Transfers out Total other financing
(1,000,000) (106,697) (243) - sources (uses) 3,520,552 1,405,609 47,795 7,574 NET CHANGE IN FUND BALANCES 7,766,549 9,692,568 305,706 149,755 FUND BALANCES (DEFICIT), BEGINNING OF YEAR 11,287,101$ 11,098,177$ 353,501$ 157,329$ FUND BALANCES (DEFICIT), END OF YEAR 139

Page 394 ends

03/24/2026 Item No.9.

Humbug
Willow Creek
General Plan
Amendment Tree Planting Zoo
REVENUES:

License and permits -$ -$ -$ -$ Intergovernmental - 39,760 - - Charges for current services 14,367 129,702 264,293 24,676 Fines and forfeitures - - - - Interest - 30,691 58,320 10,581 Miscellaneous - - - 65,944 Total revenues 14,367 200,153 322,613 101,201 EXPENDITURES:

Current:

General government - 39,760 - - Public safety - - - - Public ways and facilities - - 104,871 - Culture and recreation 21,176 - - 119,742 Capital outlay - - - - Total expenditures 21,176 39,760 104,871 119,742

REVENUES OVER (UNDER)
EXPENDITURES (6,809) 160,393 217,742 (18,541) OTHER FINANCING SOURCES (USES):

Transfers out (278) (380) (4,229) - Total other financing
sources (uses) (278) (380) (4,229) - NET CHANGE IN FUND BALANCES (7,087) 160,013 213,513 (18,541) FUND BALANCES (DEFICIT), BEGINNING OF YEAR (69,403) 627,894 1,190,824 258,266 FUND BALANCES (DEFICIT), END OF YEAR (76,490)$ 787,907$ 1,404,337$ 239,725$ FOR THE YEAR ENDED JUNE 30, 2025
CITY OF FOLSOM, CALIFORNIA_______________

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS 140

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03/24/2026 Item No.9.

Other
Total
Nonmajor
Special
Revenue
Funds
REVENUES:
12,663$ 12,663$ License and permits
114,912 5,380,089 Intergovernmental
- 7,385,126 Charges for current services 216,913 216,913 Fines and forfeitures 159,183 1,349,911 Interest
22,018 89,042 Miscellaneous
525,689 14,433,744 Total revenues
EXPENDITURES:

Current:
5,715 397,495 General government
68,622 68,622 Public safety
- 6,062,981 Public ways and facilities 10,108 151,026 Culture and recreation - 818,252 Capital outlay
84,445 7,498,376 Total expenditures

EXCESS (DEFICIENCY) OF REVENUES
441,244 6,935,368 OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES):
(1,665) (1,127,655) Transfers out
Total other financing
(1,665) (1,127,655) sources (uses)
439,579 5,807,713 NET CHANGE IN FUND BALANCES 6,830,795 29,910,196 FUND BALANCES (DEFICIT), BEGINNING OF YEAR 7,270,374$ 35,717,909$ FUND BALANCES (DEFICIT), END OF YEAR 141

Page 396 ends

03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 346,027$ 465,633$ 297,187$ (168,446)$ Interest 12,000 12,000 17,531 5,531 Total revenues 358,027 477,633 314,718 (162,915) EXPENDITURES:

Current:

General government 350,000 709,694 350,335 359,359 Total expenditures 350,000 709,694 350,335 359,359

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,027 (232,061) (35,617) 196,444 OTHER FINANCING SOURCES (USES):

Transfers out (8,027) (8,027) (8,027) - Total other financing sources (uses) (8,027) (8,027) (8,027) - NET CHANGE IN FUND BALANCES - (240,088) (43,644) 196,444$ FUND BALANCES, BEGINNING OF YEAR (47,811) (47,811) (47,811) FUND BALANCES, END OF YEAR (47,811)$ (287,899)$ (91,455)$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

PLANNING SERVICES SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
142

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental 32,500$ 32,500$ 7,311$ (25,189)$ Interest 7,500 7,500 28,719 21,219 Total revenues 40,000 40,000 36,030 (3,970) EXPENDITURES:

Current:

Public ways and facilities 40,000 40,000 23,137 16,863 Total expenditures 40,000 40,000 70,683 64,409

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - (34,653) (34,653) NET CHANGE IN FUND BALANCES - - (34,653) (34,653)$ FUND BALANCES, BEGINNING OF YEAR 460,005 460,005 460,005 FUND BALANCES, END OF YEAR 460,005$ 460,005$ 425,352$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

TRANSPORTATION TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
143

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 356,136$ 356,136$ -$ (356,136)$ Interest 50,000 50,000 123,104 73,104 Total revenues 406,136 406,136 123,104 (283,032) EXPENDITURES:

Current:

Culture and recreation 400,000 400,000 - 400,000 Total expenditures 400,000 390,028 - 390,028

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,136 16,108 123,104 106,996 OTHER FINANCING SOURCES (USES):

Transfers out (6,136) (6,136) (6,136) - Total other financing sources (uses) (6,136) (6,136) (6,136) - NET CHANGE IN FUND BALANCES - 9,972 116,968 106,996$ FUND BALANCES, BEGINNING OF YEAR 2,744,021 2,744,021 2,744,021 FUND BALANCES, END OF YEAR 2,744,021$ 2,753,993$ 2,860,989$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

PARK DEDICATION (QUIMBY) SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
144

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Interest -$ -$ 35$ 35$ Total revenues - - 35 35 NET CHANGE IN FUND BALANCES - 9,526 35 (9,491)$ FUND BALANCES, BEGINNING OF YEAR 1,027 1,027 1,027 FUND BALANCES, END OF YEAR 1,027$ 10,553$ 1,062$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
145

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental 2,180,000$ 2,180,000$ 4,945,991$ 2,765,991$ Interest 170,000 170,000 383,756 213,756 Total revenues 2,350,000 2,350,000 5,329,747 2,979,747 EXPENDITURES:

Current:

Public ways and facilities - 53,092 38,489 14,603 Capital outlay 1,350,000 1,350,000 770,706 579,294 Total expenditures 1,350,000 1,403,092 809,195 593,897

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,000,000 946,908 4,520,552 3,573,644 OTHER FINANCING SOURCES (USES):

Transfers out (1,000,000) (1,000,000) (1,000,000) - Total other financing sources (uses) (1,000,000) (1,000,000) (1,000,000) - NET CHANGE IN FUND BALANCES - (53,092) 3,520,552 3,573,644$ FUND BALANCES, BEGINNING OF YEAR 7,766,549 7,766,549 7,766,549 FUND BALANCES, END OF YEAR 7,766,549$ 7,713,457$ 11,287,101$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
146

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental -$ -$ 109,206$ 109,206$ Charges for current services 4,208,758 4,208,758 6,621,786 2,413,028 Interest 201,484 201,484 519,524 318,040 Miscellaneous - - 1,080 1,080 Total revenues 4,410,242 4,410,242 7,251,596 2,841,354 EXPENDITURES:

Current:

General government - - 1,685 (1,685) Public ways and facilities 3,839,485 5,726,145 5,737,605 (11,460) Total expenditures 3,839,485 5,726,145 5,739,290 (13,145)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 570,757 (1,315,903) 1,512,306 2,828,209 OTHER FINANCING SOURCES (USES):

Transfers out (570,757) (664,610) (106,697) 557,913 Total other financing sources (uses) (570,757) (664,610) (106,697) 557,913 NET CHANGE IN FUND BALANCES - (1,980,513) 1,405,609 3,386,122$ FUND BALANCES, BEGINNING OF YEAR 9,692,568 9,692,568 9,692,568 FUND BALANCES, END OF YEAR 9,692,568$ 7,712,055$ 11,098,177$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

LIGHT AND LANDSCAPE, AND MAINTENANCE DISTRICTS SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2025
_______________
147

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 29,243$ 29,243$ 33,115$ 3,872$ Interest 6,000 6,000 14,923 8,923 Total revenues 35,243 35,243 48,038 12,795 EXPENDITURES:

Current:

Public ways and facilities 35,000 35,000 - 35,000 Total expenditures 35,000 35,000 - 35,000

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 243 243 48,038 47,795 OTHER FINANCING SOURCES (USES):

Transfers out (243) (243) (243) - Total other financing sources (uses) (243) (243) (243) - NET CHANGE IN FUND BALANCES - - 47,795 47,795$ FUND BALANCES, BEGINNING OF YEAR 305,706 305,706 305,706 FUND BALANCES, END OF YEAR 305,706$ 305,706$ 353,501$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

TRANSPORTATION SYSTEM MANAGEMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
148

Page 403 ends

03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental 219,000$ 219,000$ 162,909$ (56,091)$ Interest 1,000 1,000 3,544 2,544 Total revenues 220,000 220,000 166,453 (53,547) EXPENDITURES:

Current:

Public ways and facilities 220,000 220,000 158,879 61,121 Total expenditures 220,000 220,000 158,879 61,121

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - 7,574 7,574 NET CHANGE IN FUND BALANCES - - 7,574 7,574$ FUND BALANCES, BEGINNING OF YEAR 149,755 149,755 149,755 FUND BALANCES, END OF YEAR 149,755$ 149,755$ 157,329$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
149

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 20,278$ 20,278$ 14,367$ (5,911)$ Total revenues 20,278 20,278 14,367 (5,911) EXPENDITURES:

Current:

Culture and recreation 20,000 46,780 21,176 25,604 Total expenditures 20,000 46,780 21,176 25,604

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 278 (26,502) (6,809) 19,693 OTHER FINANCING SOURCES (USES):

Transfers out (278) (278) (278) - Total other financing sources (uses) (278) (278) (278) - NET CHANGE IN FUND BALANCES - (26,780) (7,087) 19,693$ FUND BALANCES, BEGINNING OF YEAR (69,403) (69,403) (69,403) FUND BALANCES, END OF YEAR (69,403)$ (96,183)$ (76,490)$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

HUMBUG WILLOW CREEK SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
150

Page 405 ends

03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Intergovernmental -$ -$ 39,760$ 39,760$ Charges for current services 86,630 86,630 129,702 43,072 Interest 10,000 10,000 30,691 20,691 Total revenues 96,630 96,630 200,153 103,523 EXPENDITURES:

Current:

General government 96,250 158,695 39,760 118,935 Total expenditures 96,250 158,695 39,760 118,935

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 380 (62,065) 160,393 222,458 OTHER FINANCING SOURCES (USES):

Transfers out (380) (380) (380) - Total other financing sources (uses) (380) (380) (380) - NET CHANGE IN FUND BALANCES - (62,445) 160,013 222,458$ FUND BALANCES, BEGINNING OF YEAR 627,894 627,894 627,894 FUND BALANCES, END OF YEAR 627,894$ 565,449$ 787,907$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

GENERAL PLAN AMENDMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
151

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 100,000$ 100,000$ 264,293$ 164,293$ Interest 35,000 35,000 58,320 23,320 Miscellaneous 108,979 108,979 - (108,979) Total revenues 243,979 243,979 322,613 78,634 EXPENDITURES:

Current:

Public ways and facilities 220,750 323,768 104,871 218,897 Community services 19,000 19,000 - 19,000 Total expenditures 239,750 342,768 104,871 237,897

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,229 (98,789) 217,742 316,531 OTHER FINANCING SOURCES (USES):

Transfers out (4,229) (4,229) (4,229) - Total other financing sources (uses) (4,229) (4,229) (4,229) - NET CHANGE IN FUND BALANCES - (103,018) 213,513 316,531$ FUND BALANCES, BEGINNING OF YEAR 1,190,824 1,190,824 1,190,824 FUND BALANCES, END OF YEAR 1,190,824$ 1,087,806$ 1,404,337$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

TREE PLANTING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
152

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Charges for current services 18,000$ 18,000$ 24,676$ 6,676$ Interest 2,000 2,000 10,581 8,581 Miscellaneous - - 65,944 65,944 Total revenues 20,000 20,000 101,201 81,201 EXPENDITURES:

Current:

Culture and recreation 20,000 20,000 119,742 (99,742) Total expenditures 20,000 20,000 119,742 (99,742)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - (18,541) (18,541) NET CHANGE IN FUND BALANCES - - (18,541) (18,541)$ FUND BALANCES, BEGINNING OF YEAR 258,266 258,266 258,266 FUND BALANCES, END OF YEAR 258,266$ 258,266$ 239,725$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

ZOO SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
153

Page 408 ends

03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

License and permits 5,000$ 5,000$ 12,663$ 7,663$ Intergovernmental - - 114,912 114,912 Fines and forfeitures 65,000 65,000 216,913 151,913 Interest 29,500 29,500 159,183 129,683 Miscellaneous 155,165 155,165 22,018 (133,147) Total revenues 254,665 254,665 525,689 271,024 EXPENDITURES:

Current:

General government 8,000 8,000 5,715 2,285 Public safety 50,000 50,000 68,622 (18,622) Public ways and facilities 150,000 150,000 - 150,000 Community services 5,000 5,000 - 5,000 Culture and recreation 40,000 40,000 10,108 29,892 Total expenditures 253,000 253,000 84,445 168,555

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,665 1,665 441,244 439,579 OTHER FINANCING SOURCES (USES):

Transfers out (1,665) (1,665) (1,665) - Total other financing sources (uses) (1,665) (1,665) (1,665) - NET CHANGE IN FUND BALANCES - - 439,579 439,579$ FUND BALANCES, BEGINNING OF YEAR 6,830,795 6,830,795 6,830,795 FUND BALANCES, END OF YEAR 6,830,795$ 6,830,795$ 7,270,374$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

OTHER SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
_______________
154

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03/24/2026 Item No.9.

NONMAJOR DEBT SERVICE FUNDS

1915 Assessment Districts:

To account for the debt service on the following 1915 Assessment Districts:

City of Folsom South Assessment District Refunding Bonds 1982-1 Nimbus Water

Folsom Community Correctional Facility:

To account for the debt service on the City of Folsom Certificates of Participation for the Folsom Community Correctional Facility.

City Parks and Signals:

To account for the debt service on the City of Folsom Refunding Certificates of Participation.

General Obligation Bonds for School Facilities:

To account for the debt service on the General Obligation Bonds issued for school facilities.

Recreation Facility:

To account for the debt service on the City of Folsom Certificates of Participation for the Natoma Station Learning Center.

155

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03/24/2026 Item No.9.

ASSETS
Cash and cash equivalents 1,235,113$ 347,587$ 57,350$ 55,769$ Receivables:

Accrued interest 21,607 6,081 1,003 962 Special assessments - delinquent 41,329 - - - Total assets 1,298,049$ 353,668$ 58,353$ 56,731$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Unearned revenue 41,329$ -$ -$ -$ Total liabilities 41,329 - - - Fund balances:

Restricted 1,256,720 353,668 58,353 56,731 Total fund balances (deficit) 1,256,720 353,668 58,353 56,731 Total deferred inflows and fund balances 1,298,049$ 353,668$ 58,353$ 56,731$ CITY OF FOLSOM, CALIFORNIA_______________

COMBINING BALANCE SHEET

NONMAJOR DEBT SERVICE FUNDS
1915
Assessment
Districts
Community
Correctional
Facility
City
Parks
and Signals
General
Obligation
School
Facilities
JUNE 30, 2025
156

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03/24/2026 Item No.9.

Total Nonmajor
Debt Service
Funds
ASSETS
96,493$ 1,792,312$ Cash and cash equivalents Receivables:
1,687 31,340 Accrued interest - 41,329 Special assessments - delinquent 98,180$ 1,864,981$ Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:
-$ 41,329$ Unearned revenue - 41,329 Total liabilities Fund balances:
98,180 1,823,652 Restricted
98,180 1,823,652 Total fund balances (deficit) 98,180$ 1,864,981$ Total deferred inflows and fund balances Recreation
Facility
157

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03/24/2026 Item No.9.

REVENUES:

Assessment collections -$ -$ -$ 246$ Investment income (loss) 53,551 15,070 2,486 2,407 Total revenues 53,551 15,070 2,486 2,653 NET CHANGE IN FUND BALANCES 53,551 15,070 2,486 2,653 FUND BALANCES, BEGINNING OF YEAR 1,203,169 338,598 55,867 54,078 FUND BALANCES, END OF YEAR 1,256,720$ 353,668$ 58,353$ 56,731$ CITY OF FOLSOM, CALIFORNIA_______________

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - NONMAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
General
Obligation
School
Facilities
1915
Assessment
Districts
Community
Correctional
Facility
City
Parks
and Signals
158

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03/24/2026 Item No.9.

Total Nonmajor
Debt Service
Funds
REVENUES:
-$ 246$ Assessment collections 4,185 77,699 Investment income (loss) 4,185 77,945 Total revenues
4,185 77,945 Net change in fund balances 93,995 1,745,707 Beginning of year
98,180$ 1,823,652$ End of year
Recreation
Facility
159

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03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Investment income (loss) -$ -$ 53,551$ 53,551$ Total revenues - - 53,551 53,551 NET CHANGE IN FUND BALANCES - - 53,551 53,551$ FUND BALANCES, BEGINNING OF YEAR 1,203,169 1,203,169 1,203,169 FUND BALANCES, END OF YEAR 1,203,169$ 1,203,169$ 1,256,720$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL
1915 ASSESSMENT DISTRICTS DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
160Page 415
03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Investment income (loss) -$ -$ 15,070$ 15,070$ Total revenues - - 15,070 15,070 NET CHANGE IN FUND BALANCES - - 15,070 15,070$ FUND BALANCES, BEGINNING OF YEAR 338,598 338,598 338,598 FUND BALANCES, END OF YEAR 338,598$ 338,598$ 353,668$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

COMMUNITY CORRECTIONAL FACILITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
161Page 416
03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Investment income (loss) -$ -$ 2,486$ 2,486$ Total revenues - - 2,486 2,486 NET CHANGE IN FUND BALANCES - - 2,486 2,486$ FUND BALANCES, BEGINNING OF YEAR 55,867 55,867 55,867 FUND BALANCES, END OF YEAR 55,867$ 55,867$ 58,353$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

CITY PARKS AND TRAFFIC SIGNALS DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
162Page 417
03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Assessment collections -$ -$ 246$ 246$ Investment income (loss) - - 2,407 2,407 Total revenues - - 2,653 2,653 NET CHANGE IN FUND BALANCES - - 2,653 2,653$ FUND BALANCES, BEGINNING OF YEAR 54,078 54,078 54,078 FUND BALANCES, END OF YEAR 54,078$ 54,078$ 56,731$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

GENERAL OBLIGATION SCHOOL FACILITIES DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
163Page 418
03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Investment income (loss) -$ -$ 4,185$ 4,185$ Total revenues - - 4,185 4,185 NET CHANGE IN FUND BALANCES - - 4,185 4,185$ FUND BALANCES, BEGINNING OF YEAR 93,995 93,995 93,995 FUND BALANCES, END OF YEAR 93,995$ 93,995$ 98,180$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

RECREATION FACILITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
Refer to Note to Other Supplementary Information
164Page 419
03/24/2026 Item No.9.

NONMAJOR CAPITAL PROJECTS FUNDS

1915 Assessment Districts:

To account for the construction proceeds of the following 1915 Assessment District:

Prairie Oaks Ranch 92-2

Mello Roos Assessment Districts:

To account for the construction proceeds of the following special tax bonds:

1995 Empire Ranch Community Facilities District No. 10
2001 Parkway Community Facilities District No. 14

2011 Non-Housing Bond Proceeds:

To account for the construction proceeds from the 2011A tax allocation bonds.

Park Capital Improvement:

To account for long-term park projects financed from developer mitigation charges.

Police Capital Improvement:

To account for development mitigation fees to finance outlay and facilities.

Fire Capital Improvement:

To account for development mitigation fees to finance fire capital outlay and facilities.

General Capital Improvement:

To account for development mitigation fees to finance general capital outlay and facilities.

Drainage Capital Improvement:

To account for development mitigation fees to finance drainage capital outlay and facilities.

Transit Capital Improvement:

To account for development mitigation fees to finance transit capital outlay and facilities in the Folsom Plan Area.

Corp Yard Capital Improvement:

To account for development mitigation fees to finance corp yard capital outlay and facilities in the Folsom Plan Area.

Zoo Improvement:

To account for construction projects for the Folsom Zoo.

Light Rail Transportation:

To account for the construction of light rail transportation projects.

Major Capital and Renovation:

To account for the construction and renovation of major City facilities.

Library Construction:

To account for the construction of a new library.

FSPA Infrastructure:

To account for the construction of infrastructure for the Folsom Specific Plan Area. 165

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03/24/2026 Item No.9.

NONMAJOR ENTERPRISE FUNDS

Facilities Augmentation:

To account for additional services, including capital improvements of the Folsom South Area Facilities Plan.

166

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03/24/2026 Item No.9.

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167

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03/24/2026 Item No.9.
1915
Assessment
Districts
Mello-Roos
Assessment
Districts
2011
Non-Housing
Bond
Proceeds
Park Capital
Improvement
Police Capital
Improvement
General
Capital
Improvement
Fire Capital
Improvement
ASSETS
Cash and cash equivalents 376$ 2,552,376$ 1,732$ 10,707,809$ 1,728,135$ 3,018,139$ 693,002$ Cash with fiscal agent - 230,117 - - - - - Receivables:

General accounts - - - - - - - Accrued interest 7 44,659 210 144,212 33,100 49,589 9,344 Total assets 383$ 2,827,152$ 1,942$ 10,852,021$ 1,761,235$ 3,067,728$ 702,346$

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable -$ -$ -$ 30,326$ -$ -$ -$ Total liabilities - - - 30,326 - - -

Fund Balances:

Restricted 383 2,827,152 1,942 10,821,695 1,761,235 3,067,728 702,346 Total fund balances 383 2,827,152 1,942 10,821,695 1,761,235 3,067,728 702,346 Total liabilities and
fund balance 383$ 2,827,152$ 1,942$ 10,852,021$ 1,761,235$ 3,067,728$ 702,346$

COMBINING BALANCE SHEET

NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2025
_______________CITY OF FOLSOM, CALIFORNIA
168

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03/24/2026 Item No.9.

Drainage
Capital
Improvement
Zoo
Improvement
Transit Capital
Improvement
Corp Yard
Capital
Improvement
Light Rail
Transportation
Major Capital
& Renovation
ASSETS
1,447,817$ -$ 7,531,171$ 3,316,498$ 1,420,163$ 926,893$ Cash and cash equivalents - - - - - - Cash with fiscal agent Receivables:
850 - - - - - General accounts 24,814 - 88,895 50,095 24,101 1,659 Accrued interest 1,473,481$ -$ 7,620,066$ 3,366,593$ 1,444,264$ 928,552$ Total assets

LIABILITIES AND FUND BALANCES

Liabilities:
8,404$ -$ -$ -$ 276$ -$ Accounts payable 8,404 - - - 276 - Total liabilities

Fund Balances:
1,465,077 - 7,620,066 3,366,593 1,443,988 928,552 Restricted 1,465,077 - 7,620,066 3,366,593 1,443,988 928,552 Total fund balances Total liabilities and
1,473,481$ -$ 7,620,066$ 3,366,593$ 1,444,264$ 928,552$ fund balance 169

Page 424 ends

03/24/2026 Item No.9.

Library
Construction
FSPA
Infrastructure
Total Nonmajor
Capital Projects
Funds
ASSETS
Cash and cash equivalents 78,749$ 22,076$ 33,444,936$ Cash with fiscal agent - - 230,117 Receivables:

General accounts - - 850 Accrued interest 1,378 386 472,449 Total assets 80,127$ 22,462$ 34,148,352$

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable -$ -$ 39,006$ Total liabilities - - 39,006

Fund Balances:

Restricted 80,127 22,462 34,109,346 Total fund balances 80,127 22,462 34,109,346 Total liabilities and
fund balance 80,127$ 22,462$ 34,148,352$

CITY OF FOLSOM, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2025
_______________
170

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03/24/2026 Item No.9.

This page has been intentionally left blank.
171

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Charges for current services -$ -$ -$ 484,011$ 49,935$ 144,375$ 223,113$ Intergovernmental - - - - - - - Interest 16 121,415 (277) 629,541 88,016 134,727 30,160 Miscellaneous - - - 16,056 - - - Total revenues 16 121,415 (277) 1,129,608 137,951 279,102 253,273 EXPENDITURES:

Public ways and facilities - - - 13,454 - - - Culture and recreation - - - 6,500 - - - Capital outlay - - - 245,544 270,248 - - Total expenditures - - - 265,498 270,248 - -

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 16 121,415 (277) 864,110 (132,297) 279,102 253,273 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - - Transfers out - (433) (126) (9,490) (1,163) (1,409) - Total other financing
sources (uses) - (433) (126) (9,490) (1,163) (1,409) -

NET CHANGE IN FUND
BALANCE 16 120,982 (403) 854,620 (133,460) 277,693 253,273

FUND BALANCE, BEGINNING
OF YEAR 367 2,706,170 2,345 9,967,075 1,894,695 2,790,035 449,073 FUND BALANCE, END OF YEAR 383$ 2,827,152$ 1,942$ 10,821,695$ 1,761,235$ 3,067,728$ 702,346$

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - NON MAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED JUNE 30, 2025
_______________
172

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03/24/2026 Item No.9.

Drainage
Capital
Improvement
Zoo
Improvement
Transit Capital
Improvement
Corp Yard
Capital
Improvement
Light Rail
Transportation
Major Capital
& Renovation
REVENUES:
80,467$ -$ 853,807$ 519,206$ 61,457$ -$ Charges for current services 5,000 - - - 1,592 - Intergovernmental 64,761 - 428,880 139,522 62,075 4,408 Interest - - - - - - Miscellaneous 150,228 - 1,282,687 658,728 125,124 4,408 Total revenues EXPENDITURES:
69,860 - - - 13,692 - Public ways and facilities - - - - - - Culture and recreation - - - - - - Capital outlay 69,860 - - - 13,692 - Total expenditures

EXCESS (DEFICIENCY) OF REVENUES
80,368 - 1,282,687 658,728 111,432 4,408 OVER EXPENDITURES OTHER FINANCING SOURCES (USES):
- - - - - 841,588 Transfers in (1,931) - (3,969) (1,460) (1,781) - Transfers out Total other financing
(1,931) - (3,969) (1,460) (1,781) 841,588 sources (uses) 78,437 - 1,278,718 657,268 109,651 845,996

NET CHANGE IN FUND

BALANCE
1,386,640 - 6,341,348 2,709,325 1,334,337 82,556

FUND BALANCE, BEGINNING

OF YEAR
1,465,077$ -$ 7,620,066$ 3,366,593$ 1,443,988$ 928,552$

FUND BALANCE, END OF
YEAR
173

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03/24/2026 Item No.9.

Library
Construction
FSPA
Infrastructure
Total
Nonmajor
Capital
Projects
Funds
REVENUES:

Charges for current services -$ -$ 2,416,371$ Intergovernmental - - 6,592 Interest 3,415 956 1,707,615 Miscellaneous - - 16,056 Total revenues 3,415 956 4,146,634 EXPENDITURES:

Public ways and facilities - - 97,006 Culture and recreation - - 6,500 Capital outlay - - 515,792 Total expenditures - - 619,298

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,415 956 3,527,336 OTHER FINANCING SOURCES (USES):

Transfers in - - 841,588 Transfers out - - (21,762) Total other financing
sources (uses) - - 819,826 NET CHANGE IN FUND BALANCE 3,415 956 4,347,162 FUND BALANCE, BEGINNING OF YEAR 76,712 21,506 29,762,184 FUND BALANCE, END OF YEAR 80,127$ 22,462$ 34,109,346$

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - NON MAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED JUNE 30, 2025
_______________
174

Page 429 ends

03/24/2026 Item No.9.

PERMANENT FUND

Wetland/Open Space Maintenance:

To account for endowments. Interest is to be used for maintenance of Wetland/Open Space.

175

Page 430 ends

03/24/2026 Item No.9.

Wetland/
Open Space
Maintenance
ASSETS
Cash and cash equivalents 499,531$
Receivables:

Accrued interest 8,745
Total assets 508,276$

LIABILITIES AND FUND BALANCES

Fund Balances:

Nonspendable 499,531$
Restricted 8,745
Total fund balances 508,276
Total liabilties and
fund balances 508,276$

CITY OF FOLSOM, CALIFORNIA

BALANCE SHEET

PERMANENT FUND
JUNE 30,2025
_______________
176

Page 431 ends

03/24/2026 Item No.9.

REVENUES:

Interest 21,663$
Total revenues 21,663
OTHER FINANCING SOURCES (USES):

Transfers out (386)
Total other financing sources (uses) (386)
NET CHANGE IN FUND BALANCES 21,277
FUND BALANCES, BEGINNING OF YEAR 486,999
FUND BALANCES, END OF YEAR 508,276$
Wetland/
Open Space
Maintenance

CITY OF FOLSOM, CALIFORNIA

CHANGES IN FUND BALANCES - PERMANENT FUND

STATEMENT OF REVENUES, EXPENDITURES, AND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
177

Page 432 ends

03/24/2026 Item No.9.

VARIANCE

WITH FINAL
BUDGET

POSITIVE

ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:

Interest 10,000$ 10,000$ 21,663$ 11,663$ Miscellaneous 40,386 40,386 - (40,386) Total revenues 50,386 50,386 21,663 (28,723) EXPENDITURES:

Current:

Culture and recreation 50,000 50,000 - 50,000 Total expenditures 50,000 50,000 - 50,000

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 386 386 21,663 21,277 OTHER FINANCING SOURCES (USES):

Transfers out (386) (386) (386) - Total other financing sources (uses) (386) (386) (386) - NET CHANGE IN FUND BALANCES - - 21,277 21,277$ FUND BALANCES, BEGINNING OF YEAR 486,999 486,999 486,999 FUND BALANCES, END OF YEAR 486,999$ 486,999$ 508,276$

BUDGETED AMOUNTS

CITY OF FOLSOM, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL

WETLAND/OPEN SPACE MAINTENANCE PERMANENT FUND
FOR THE YEAR ENDED JUNE 30, 2025
_______________
178

Page 433 ends

03/24/2026 Item No.9.

NONMAJOR ENTERPRISE FUNDS

Facilities Augmentation:

To account for additional services, including capital improvements of the Folsom South Area Facilities Plan.

179

Page 434 ends

03/24/2026 Item No.9.

ASSETS
Current Assets:

Cash and cash equivalents 49,071$
Receivables, net 1,068
Total current assets 50,139
Total assets 50,139

NET POSITION
Unrestricted 50,139
Total net position (deficit) 50,139$
Facilities
Augmentation
Fund

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30,2025
_______________
180

Page 435 ends

03/24/2026 Item No.9.

NONOPERATING REVENUES (EXPENSES):

Investment income 1,730$
Total nonoperating revenues (expenses) 1,730
INCOME (LOSS) BEFORE TRANSFERS 1,730
TRANSFERS:

Transfers out (466)
Total transfers (466)
CHANGE IN NET POSITION 1,264
NET POSITION (DEFICIT), BEGINNING OF YEAR 48,875
NET POSITION (DEFICIT), END OF YEAR 50,139$
Facilities
Augmentation
Fund
_______________ CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025

NONMAJOR ENTERPRISE FUNDS
181

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03/24/2026 Item No.9.

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 145$
Net cash provided by (used in) by operating activities 145 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers to other funds (466)
Net cash provided by (used in) noncapital financing activities (466) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and dividends on investments 1,730
Net cash provided by (used in) investing activities 1,730 CHANGE IN CASH AND CASH EQUIVALENTS 1,409
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 47,662
CASH AND CASH EQUIVALENTS, END OF YEAR 49,071$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Increase (decrease) in:

Accounts receivable 145$
Net cash provided by (used in) operating activities 145$ Facilities
Augmentation
Fund
CITY OF FOLSOM, CALIFORNIA_______________

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
182

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03/24/2026 Item No.9.

INTERNAL SERVICE FUNDS

Equipment Replacement:

To account for general governmental equipment, which will be charged to other funds and accounts, and provide for replacement.

Risk Management:

To account for employee benefits and insurance.

Compensated Leaves:

To account for payment of vacation/leave benefits to City employees.

183

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03/24/2026 Item No.9.

Total
Internal
Service
Funds
ASSETS:

Current Assets:

Cash and cash equivalents 9,154,208$ 3,924,147$ -$ 13,078,355$ Receivables:

General accounts - 579 - 579 Accrued interest 79,170 23,447 40 102,657 Retiree health benefits - 67,661 - 67,661 Advances to Other Funds 1,040,452 - - 1,040,452 Insurance deposits - 1,539,122 - 1,539,122 Total current assets 10,273,830 5,554,956 40 15,828,826 Noncurrent:

Capital assets 2,234,348 - - 2,234,348 Less: accumulated depreciation (2,234,348) - - (2,234,348) Total noncurrent assets - - - - Total assets 10,273,830 5,554,956 40 15,828,826 LIABILITIES:

Current liabilities:

Accounts payable - 85,568 - 85,568 Wages payable - 766,437 70,481 836,918 Due to other funds - - 28,557 28,557 Total liabilities - 852,005 99,038 951,043 NET POSITION:

Unrestricted 10,273,830 4,702,951 (98,998) 14,877,783 Total net position 10,273,830$ 4,702,951$ (98,998)$ 14,877,783$ Risk
Management
_______________CITY OF FOLSOM, CALIFORNIA
JUNE 30, 2025

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
Equipment
Replacement
Compensated
Leaves
184

Page 439 ends

03/24/2026 Item No.9.

Total
Internal
Service
Funds
OPERATING REVENUES:

Charges for services 8,724$ 23,459,067$ 727,362$ 24,195,153$ Total operating revenues 8,724 23,459,067 727,362 24,195,153 OPERATING EXPENSES:

Employee services - 24,239,955 818,506 25,058,461 Total operating expenses - 24,239,955 818,506 25,058,461 OPERATING INCOME (LOSS) 8,724 (780,888) (91,144) (863,308) NONOPERATING REVENUES (EXPENSES):

Investment income 432,944 11,935 55 444,934 Other 87,825 74,447 - 162,272 Total nonoperating revenues (expenses) 520,769 86,382 55 607,206 INCOME (LOSS) BEFORE TRANSFERS 529,493 (694,506) (91,089) (256,102) TRANSFERS:

Transfers in 2,723,397 - - 2,723,397 Transfers out (5,728) - - (5,728) Total contributions and transfers 2,717,669 - - 2,717,669 CHANGE IN NET POSITION 3,247,162 (694,506) (91,089) 2,461,567 NET POSITION (DEFICIT), BEGINNING OF YEAR 7,026,668 5,397,457 (7,909) 12,416,216 NET POSITION (DEFICIT), END OF YEAR 10,273,830$ 4,702,951$ (98,998)$ 14,877,783$ Compensated
Leaves Fund
Risk
Management
FundEquipment Fund

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
_______________
185

Page 440 ends

03/24/2026 Item No.9.

Total
Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 8,724$ 23,451,972$ 727,362$ 24,188,058$ Payments to suppliers - (14,372) - (14,372) Payments to employees - (24,243,209) (755,974) (24,999,183) Net cash provided by (used in) by operating activities 8,724 (805,609) (28,612) (825,497) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers from other funds 2,723,397 168,204 - 2,891,601 Transfers to other funds 235,724 - 28,557 264,281 Net cash provided by (used in) noncapital financing activities 2,959,121 168,204 28,557 3,155,882 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:

Acquisition and construction of capital assets - - - - Net cash provided by (used in) capital financing activities - - - - CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and dividends on investments 514,601 102,977 55 617,633 Net cash provided by (used in) investing activities 514,601 102,977 55 617,633 CHANGE IN CASH AND CASH EQUIVALENTS 3,482,446 (534,428) - 2,948,018 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 5,671,762 4,458,575 - 10,130,337 CASH AND CASH EQUIVALENTS, END OF YEAR 9,154,208$ 3,924,147$ -$ 13,078,355$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 8,724$ (780,888)$ (91,144)$ (863,308)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation - - - - Increase (decrease) in:

Accounts receivable - (7,095) - (7,095) Accounts payable - (14,372) - (14,372) Wages payable - (3,254) 62,532 59,278 Net cash provided by (used in) operating activities 8,724$ (805,609)$ (28,612)$ (825,497)$ FOR THE YEAR ENDED JUNE 30, 2025
Compensated
Leaves Fund
Risk
Management
FundEquipment Fund
CITY OF FOLSOM, CALIFORNIA_______________

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
186

Page 441 ends

03/24/2026 Item No.9.

CUSTODIAL FUNDS

1915 Assessment Districts:

To account for the following assessments pursuant to the 1915 Bond Act.

Blue Ravine Oaks East
Legends Refunding
Natoma Station
Folsom Auto Plaza
Lake Natoma Shores
Prairie Oaks
CobbleHills Ridge
Ridgeview
Cresleigh Natoma
Hannaford Crossing

Mello-Roos Districts:

Folsom Ranch IA7 Community District No. 23
Folsom Ranch IA2 Community District No. 23
Folsom Ranch IA3 Community District No. 23
Folsom Ranch IA4 Community District No. 23
Willow Creek Community Facilities District No. 1 Refunding Natoma Station Community Facilities District No. 2 Refunding Folsom Heights Community Facilities District No. 3 Refunding Broadstone Community Facilities District No. 4 Refunding Folsom Ranch IA5 Community District No. 23
Folsom Ranch IA6 Community District No. 23
Broadstone 2 Community Facilities District No. 7
Parkway Community Facilities District No. 8
Willow Creek Estates South Community Facilities District No. 8 Empire Ranch Community Facilities District No. 10
Willow Springs Community Facilities District No. 11
Islands IA2 Community Facilities District No. 16
Parkway Community Facilities District No. 14
Islands at Parkshore 1 Community Facilities District No. 16 Willow Hill Pipeline Community Facilities District No. 17 Area Wide Community Facilities District No. 18
Mangini Community Facilities District No. 19
Russell Ranch Community Facilities District No. 20
White Rock Springs Ranch Community District No. 21
Folsom Heights Community District No. 22
Folsom Ranch IA1 Community District No. 23

Business and Improvement District

Folsom Historic District

Sacramento County Transportation Development Fee

Sacramento Transportation Mitigation Fee

187

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Blue
Ravine
Oaks East
IA7 Folsom
Ranch
Legends
Refunding
Natoma
Station
Folsom
Auto
Plaza
Lake
Natoma
Shores
Prairie
Oaks
Cobble
Hills
Ridge Ridgeview
ASSETS
Cash and cash equivalents 8,929 $ 166,769 $ 9,275 $ 22,825 $ 65,359 $ 1,518 $ 94,353 $ 33,390 $ 14,276 $ Receivables:

Accrued interest 156 684 162 399 1,144 27 1,652 584 250 Due from other governments - 3,025 - - - - - - - Restricted assets:

Cash with fiscal agent - - - - - - - - - Total assets 9,085 170,478 9,437 23,224 66,503 1,545 96,005 33,974 14,526

LIABILITIES

Accounts payable - - - - - - 20,511 - - Rebatable arbitrage - - - - - - - - - Total liabilities - - - - - - 20,511 - -

NET POSITION
Restricted for:

Individuals, organizations,
and other governments 9,085 170,478 9,437 23,224 66,503 1,545 75,494 33,974 14,526 Total Net Position 9,085 $ 170,478 $ 9,437 $ 23,224 $ 66,503 $ 1,545 $ 75,494 $ 33,974 $ 14,526 $ CITY OF FOLSOM, CALIFORNIA_______________
JUNE 30, 2025

COMBINING STATEMENT OF NET POSITION

CUSTODIAL FUNDS
188

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Cresleigh
Natoma
Hannaford
Crossing
IA2 F Ranch
CFD #23
IA3 F Ranch
CFD #23
IA4 F Ranch
CFD #23
CFD 2013-01
Water Fac &
Sup
Willow
Creek
CFD #1
Natoma
Station
CFD #2
Folsom
Heights
CFD #3
ASSETS
24,203 $ 46,686 $ 4,334,554$ 2,914,329$ 561,627$ 1,010,281$ 1,961 $ 120,640 $ 1,716 $ Cash and cash equivalents Receivables:
423 816 1,281 2,150 520 29,188 34 2,112 30 Accrued interest - - 5,722 9,687 12,199 24,653 3,676 - - Due from other governments Restricted assets:
- - 834,000 717,993 860,397 - - - - Cash with fiscal agent 24,626 47,502 5,175,557 3,644,159 1,434,743 1,064,122 5,671 122,752 1,746 Total assets

LIABILITIES

- 73 - - - 714,661 - - 1,278 Accounts payable - - - - - - 495 - - Rebatable arbitrage - 73 - - - 714,661 495 - 1,278 Total liabilities

NET POSITION
Restricted for:

Individuals, organizations,
24,626 47,429 5,175,557 3,644,159 1,434,743 349,461 5,176 122,752 468 and other governments 24,626 $ 47,429 $ 5,175,557$ 3,644,159$ 1,434,743$ 349,461$ 5,176 $ 122,752 $ 468 $ Total Net Position 189

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Broadstone
CFD #4
IA5 F Ranch
CFD #23
IA6 F
Ranch CFD
#23
Broadstone
2 CFD #7
Parkway
CFD #8
Willow
Creek
Estates
South CFD
#9
Empire Ranch
CFD #10
Willow
Springs
CFD #11
ASSETS
Cash and cash equivalents 57,726 $ - $ - $ 383,049$ 38,426 $ 50,110 $ 6,951,482$ - $ Receivables:

Accrued interest 1,009 - - 6,750 674 876 102,620 276 Due from other governments - - 15 - - - 88,887 - Restricted assets:

Cash with fiscal agent - - - - - - 6,366,808 - Total assets 58,735 - 15 389,799 39,100 50,986 13,509,797 276

LIABILITIES

Accounts payable - 19,670 23,872 38,100 - - - 69,588 Rebatable arbitrage - - - - - - - - Total liabilities - 19,670 23,872 38,100 - - - 69,588

NET POSITION
Restricted for:

Individuals, organizations,
and other governments 58,735 (19,670) (23,857) 351,699 39,100 50,986 13,509,797 (69,312) Total Net Position 58,735 $ (19,670)$ (23,857) $ 351,699$ 39,100 $ 50,986 $ 13,509,797$ (69,312) $

COMBINING STATEMENT OF NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2025
CITY OF FOLSOM, CALIFORNIA_______________
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CFD #16
Islands IA2
Parkway
CFD #14
Folsom
Historic
District
CFD #16
Islands at
Parkshore 1
CFD #17
Willow Hill
Pipeline
Area Wide
CFD #18
Mangini
CFD #19
Russell
Ranch
CFD #20
ASSETS
347,461 $ 1,233,621$ 84,762 $ 498,775 $ 1,217,713$ -$ 2,242,366$ 11,918,771$ Cash and cash equivalents Receivables:
7,500 9,292 176 4,178 17,287 55,025 16,847 7,401 Accrued interest 3,135 19,256 1,985 2,394 7,975 78,668 38,362 36,961 Due from other governments Restricted assets:
638,160 - - 242,250 400,892 23,107,820 3,190,776 1,835,065 Cash with fiscal agent 996,256 1,262,169 86,923 747,597 1,643,867 23,241,513 5,488,351 13,798,198 Total assets

LIABILITIES

- - - 31 - 3,103,954 4,000 4,860 Accounts payable - - - - - - - - Rebatable arbitrage - - - 31 - 3,103,954 4,000 4,860 Total liabilities

NET POSITION
Restricted for:

Individuals, organizations,
996,256 1,262,169 86,923 747,566 1,643,867 20,137,559 5,484,351 13,793,338 and other governments 996,256 $ 1,262,169$ 86,923 $ 747,566 $ 1,643,867$ 20,137,559$ 5,484,351$ 13,793,338$ Total Net Position 191

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03/24/2026 Item No.9.

WRSR CFD
#21
Folsom
Heights CFD
#22
IA1 Folsom
Ranch CFD
#23
Sacramento
County
Transportation
Development
Fee
Sacramento
Tranportation
Mitigation Fee
Total
Custodial
Funds
ASSETS
Cash and cash equivalents 1,066,715$ -$ 1,061,163$ 3,234,238$ 505,548$ 40,324,617$ Receivables:

Accrued interest 6,844 - 6,307 - - 284,674 Due from other governments 29,025 - 18,509 - - 384,134 Restricted assets:

Cash with fiscal agent 1,539,037 - 1,761,509 - - 41,494,707 Total assets 2,641,621 - 2,847,488 3,234,238 505,548 82,488,132

LIABILITIES

Accounts payable 3,000 22,237 5,400 3,234,238 505,548 7,771,021 Rebatable arbitrage - - - - - 495 Total liabilities 3,000 22,237 5,400 3,234,238 505,548 7,771,516

NET POSITION
Restricted for:

Individuals, organizations,
and other governments 2,638,621 (22,237) 2,842,088 - - 74,716,616 Total Net Position 2,638,621$ (22,237)$ 2,842,088$ -$ -$ 74,716,616$

COMBINING STATEMENT OF NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2025
CITY OF FOLSOM, CALIFORNIA_______________
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Blue
Ravine
Oaks East
IA7 Folsom
Ranch
Legends
Refunding
Natoma
Station
Folsom
Auto Plaza
Lake
Natoma
Shores
Prairie
Oaks
Cobble
Hills Ridge Ridgeview
Cresleigh
Natoma
ADDITIONS:

Investment earnings 387 $ 3,741 $ 402 $ 990 $ 2,834 $ 66 $ 4,086 $ 1,448 $ 619 $ 1,049 $ Assessment collection - 202,670 - - - - - - - - Mello-Roos bonds - - - - - - - - - - Transportation fees - - - - - - - - - - Total additions 387 206,411 402 990 2,834 66 4,086 1,448 619 1,049 DEDUCTIONS:

Payments of assessment
to bond holders - 42,597 - - - - - - - - Other - - - - - - - - - - Total deductions - 42,597 - - - - - - - - Change in net position 387 163,814 402 990 2,834 66 4,086 1,448 619 1,049 NET POSITION:

Beginning of year 8,698 6,664 9,035 22,234 63,669 1,479 71,408 32,526 13,907 23,577 End of year 9,085 $ 170,478 $ 9,437 $ 23,224 $ 66,503 $ 1,545 $ 75,494 $ 33,974 $ 14,526 $ 24,626 $ FOR THE YEAR ENDED JUNE 30, 2025

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION _______________

CUSTODIAL FUNDS
194

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Hannaford
Crossing
IA2 F Ranch
CFD #23
IA3 F Ranch
CFD #23
IA4 F Ranch
CFD #23
CFD 2013-
01 Water
Fac & Sup
Willow
Creek CFD
#1
Natoma
Station
CFD #2
Folsom
Heights
CFD #3
ADDITIONS:
2,024 $ 238,058$ 164,259$ 579,228$ 58,705 $ 84 $ 5,228 $ 74 $ Investment earnings - 605,079 543,416 478,015 1,540,791 - - - Assessment collection - - - 10,705,000 - - - - Mello-Roos bonds - - - - - - - - Transportation fees 2,024 843,137 707,675 11,762,243 1,599,496 84 5,228 74 Total additions DEDUCTIONS:

- 473,857 463,278 140,624 24,321 - - - Payments of assessment
to bond holders
- 688,152 8,858 10,396,573 1,462,322 - - - Other - 1,162,009 472,136 10,537,197 1,486,643 - - - Total deductions 2,024 (318,872) 235,539 1,225,046 112,853 84 5,228 74 Change in net position NET POSITION:
45,405 5,494,429 3,408,620 209,697 236,608 5,092 117,524 394 Beginning of year 47,429 $ 5,175,557$ 3,644,159$ 1,434,743$ 349,461 $ 5,176 $ 122,752 $ 468 $ End of year 195

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03/24/2026 Item No.9.

Broadstone
CFD #4
IA5 F
Ranch CFD
#23
IA6 F
Ranch CFD
#23
Broadstone 2
CFD #7
Parkway
CFD #8
Willow
Creek
Estates
South CFD
#9
Empire Ranch
CFD #10
Willow
Springs
CFD #11
CFD #16
Islands IA2
ADDITIONS:

Investment earnings 2,504 $ - $ 15 $ 16,674$ 1,663 $ 2,175 $ 568,883$ (329) $ 39,621 $ Assessment collection - - 1,671 - - - 5,344,144 2,403 305,987 Mello-Roos bonds - - - - - - - - - Transportation fees - - - - - - - - - Total additions 2,504 - 1,686 16,674 1,663 2,175 5,913,027 2,074 345,608 DEDUCTIONS:

Payments of assessment
to bond holders - 4,535 9,063 9,750 - - 4,208,461 10,651 292,552 Other - - - - - - 84,475 - 9,506 Total deductions - 4,535 9,063 9,750 - - 4,292,936 10,651 302,058 Change in net position 2,504 (4,535) (7,377) 6,924 1,663 2,175 1,620,091 (8,577) 43,550 NET POSITION:

Beginning of year 56,231 $ (15,135) $ (16,480) $ 344,775$ 37,437 $ 48,811 $ 11,889,706$ (60,735) $ 952,706 $ End of year 58,735 $ (19,670) $ (23,857) $ 351,699$ 39,100 $ 50,986 $ 13,509,797$ (69,312) $ 996,256 $ CITY OF FOLSOM, CALIFORNIA_______________

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
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Parkway CFD
#14
Folsom
Historic
District
CFD #16
Islands at
Parkshore 1
CFD #17
Willow Hill
Pipeline
Area Wide
CFD #18
Mangini CFD
#19
Russell
Ranch
CFD #20
ADDITIONS:
31,098$ 988 $ 31,428 $ 62,895$ 2,461,446$ 199,361$ 604,300$ Investment earnings 1,250,487 174,755 177,185 462,290 2,434,391 2,644,143 1,481,198 Assessment collection - - - - 26,735,000 - - Mello-Roos bonds - - - - - - - Transportation fees 1,281,585 175,743 208,613 525,185 31,630,837 2,843,504 2,085,498 Total additions DEDUCTIONS:

1,208,791 4,776 167,325 441,144 505,806 2,524,748 1,436,280 Payments of assessment
to bond holders
35,825 96,344 8,907 16,030 13,425,238 49,947 27,963 Other 1,244,616 101,120 176,232 457,174 13,931,044 2,574,695 1,464,243 Total deductions 36,969 74,623 32,381 68,011 17,699,793 268,809 621,255 Change in net position NET POSITION:
1,225,200$ 12,300 $ 715,185 $ 1,575,856$ 2,437,766$ 5,215,542$ 13,172,083$ Beginning of year 1,262,169$ 86,923 $ 747,566 $ 1,643,867$ 20,137,559$ 5,484,351$ 13,793,338$ End of year 197

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03/24/2026 Item No.9.

WRSR CFD
#21
Folsom
Heights CFD
#22
IA1 Folsom
Ranch CFD
#23
Sacramento
County
Transportation
Development
Fee
Sacramento
Tranportation
Mitigation Fee
Total
Custodial
Funds
ADDITIONS:

Investment earnings 94,487$ -$ 198,725$ -$ -$ 5,379,216$ Assessment collection 1,301,697 - 1,366,662 - - 20,316,984 Mello-Roos bonds - - - - - 37,440,000 Transportation fees - - - 3,234,238 505,548 3,739,786 Total additions 1,396,184 - 1,565,387 3,234,238 505,548 66,875,986 DEDUCTIONS:

Payments of assessment
to bond holders 966,852 5,243 1,317,624 - - 14,258,278 Other 232,949 - 2,096,488 3,234,238 505,548 32,379,363 Total deductions 1,199,801 5,243 3,414,112 3,234,238 505,548 46,637,641 Change in net position 196,383 (5,243) (1,848,725) - - 20,238,345 NET POSITION:

Beginning of year 2,442,238 (16,994) 4,690,813 - - 54,478,271 End of year 2,638,621$ (22,237)$ 2,842,088$ -$ -$ 74,716,616$

CITY OF FOLSOM, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
_______________
FOR THE YEAR ENDED JUNE 30, 2025
198

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STATISTICAL SECTION

199

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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.

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

Revenue Capacity Information
These schedules contain information to help the reader assess the government’s most significant local revenue sources.

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

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within the City’s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in
capital assets 345,540,942$ 342,339,996$ 341,907,988$ 365,447,799$ 352,736,331$ 347,842,183$ 372,280,617$ 387,374,177$ 406,723,010$ 434,168,258$ Restricted 37,105,814 37,928,602 54,379,397 74,711,884 109,091,757 154,995,747 141,687,652 118,208,417 120,427,242 354,274,822 Unrestricted (1) (39,219,804) (37,637,622) (133,460,554) (140,380,319) (151,055,541) (163,151,340) (178,899,222) (122,960,805) (100,860,022) (324,035,175) Total gov't activities net position 343,426,952$ 342,630,976$ 262,826,831$ 299,779,364$ 310,772,547$ 339,686,590$ 335,069,047$ 382,621,789$ 426,290,230$ 464,407,905$ Business-type activities
Net investment in
capital assets 116,725,962$ 122,445,820$ 123,233,937$ 143,068,634$ 153,282,039$ 160,402,925$ 161,246,778$ 174,288,065$ 187,062,805$ 209,204,829$ Restricted 527,202 127,565 127,565 127,565 127,565 129,602 129,602 129,602 48,875 - Unrestricted 5,779,903 10,511,992 852,368 7,839,073 8,441,633 14,561,489 23,578,843 32,987,684 42,512,138 56,645,540 Total bus-type activities net position 123,033,067$ 133,085,377$ 124,213,870$ 151,035,272$ 161,851,237$ 175,094,016$ 184,955,223$ 207,405,351$ 229,623,818$ 265,850,369$ Primary government
Net investment in
capital assets 462,266,904$ 464,785,816$ 465,141,925$ 508,516,433$ 506,018,370$ 508,245,108$ 533,527,395$ 561,662,242$ 593,785,815$ 643,373,087$ Restricted 37,633,016 38,056,167 54,506,962 74,839,449 109,219,322 155,125,349 141,817,254 118,338,019 120,476,117 354,274,822 Unrestricted (33,439,901) (27,125,630) (132,608,186) (132,541,246) (142,613,908) (148,589,851) (155,320,379) (89,973,121) (58,347,884) (267,389,635) Total primary gov't net position 466,460,019$ 475,716,353$ 387,040,701$ 450,814,636$ 472,623,784$ 514,780,606$ 520,024,270$ 590,027,140$ 655,914,048$ 730,258,274$ Source: The City's Annual Comprehensive Financial Report Fiscal Year
Schedule 1

CITY OF FOLSOM, CALIFORNIA
Net Position by Component,
Fiscal Year 2025, With Ten Year Trend Analysis
(accrual basis of accounting)
$(400,000,000)
$(200,000,000)
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Primary Government Net Position
capital assets
Restricted
Unrestricted
203

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03/24/2026 Item No.9.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government 16,842,039$ 17,619,148$ 21,571,309$ 19,894,674$ 25,694,246$ 20,099,385$ 14,570,235$ 21,993,578$ 27,557,788$ 25,362,364$ Public safety 33,732,869 38,519,301 42,267,172 43,071,617 48,945,393 53,333,593 49,214,434 54,562,107 60,464,040 67,966,243 Public ways and facilities 23,760,187 23,789,377 26,740,758 24,860,981 27,609,012 31,378,367 30,321,802 33,988,957 36,428,359 36,651,557 Community services 3,795,881 4,611,256 6,328,357 6,119,243 6,836,934 6,871,579 7,909,070 9,111,893 8,584,405 8,698,359 Culture and recreation 15,226,602 16,043,161 19,316,157 16,783,176 17,181,199 18,542,904 18,809,703 18,076,120 22,759,801 25,696,796 Interest and fiscal changes 5,080,330 4,679,003 2,510,553 4,687,431 5,212,780 5,082,231 5,692,263 6,701,685 6,228,317 8,059,464 Total gov't activities expenses 98,437,909 105,261,245 118,734,307 115,417,123 131,479,564 135,308,058 126,517,507 144,434,338 162,022,710 172,434,783 Business-type activities:

Water 12,704,599 13,169,040 14,416,465 15,018,849 15,635,355 15,659,239 14,980,895 17,486,670 19,616,845 20,451,080 Wastewater 5,419,982 5,254,071 5,777,106 5,989,117 6,717,181 7,188,744 6,225,992 6,817,673 10,284,019 7,781,909 Solid Waste 9,347,062 9,488,964 10,383,837 10,823,361 12,057,666 13,001,080 14,044,953 17,490,609 19,908,340 21,761,814 Transit (1) 3,709,459 3,847,851 4,093,944 2,297,111 - - - - - - Facilities Augmentation 407,237 3,040 242,058 326,061 17,023 - - 27,577 60,424 - Recreation - - - - - - - - - - Total bus-type activities expense 31,588,339 31,762,966 34,913,410 34,454,499 34,427,225 35,849,063 35,251,840 41,822,529 49,869,628 49,994,803 Total primary gov't expenses 130,026,248$ 137,024,211$ 153,647,717$ 149,871,622$ 165,906,789$ 171,157,121$ 161,769,347$ 186,256,867$ 211,892,338$ 222,429,586$ Program Revenues
Governmental activities:

Charges for services:

General government 7,496,678$ 7,950,354$ 9,259,206$ 8,802,272$ 9,178,697$ 9,391,344$ 11,395,670$ 12,481,923$ 10,864,478$ 11,944,619$ Public safety 5,125,847 5,618,969 6,784,548 6,851,973 6,361,867 7,481,550 7,807,095 15,064,367 6,587,658 4,270,554 Public ways and facilities 7,997,349 8,565,624 12,763,442 11,089,762 10,196,763 12,091,444 16,519,809 10,569,175 37,036,449 21,593,535 Community services 4,986,243 4,552,806 6,861,396 8,290,473 7,536,644 12,773,201 14,818,895 10,501,091 18,319,974 19,340,036 Culture and recreation 4,966,763 6,198,906 10,852,607 10,278,413 9,682,333 10,555,274 14,863,977 15,197,394 4,355,527 4,531,067 Operating grants and contributions 2,354,928 2,233,379 2,774,627 3,673,894 3,803,337 4,044,265 4,415,825 5,195,430 16,427,409 12,037,823 Capital grants and contributions 11,437,916 14,891,177 10,798,615 30,603,509 32,124,684 26,614,932 28,053,482 38,782,252 21,541,584 46,345,123 Total gov't activities program revenue 44,365,724 50,011,215 60,094,441 79,590,296 78,884,325 82,952,010 97,874,753 107,791,632 115,133,079 120,062,757 Business-type activities:

Charges for services:

Water 12,205,895 13,605,851 14,119,233 13,912,610 15,561,068 17,988,487 17,280,478 18,889,282 20,610,660 19,541,616 Wastewater 6,278,631 6,531,021 6,780,004 6,734,594 7,459,060 8,486,879 8,621,943 11,698,877 12,086,657 12,507,788 Solid Waste 10,620,422 10,957,586 10,840,441 10,939,391 11,774,722 15,206,531 19,705,286 23,945,238 27,097,615 29,522,830 Transit (1) 623,745 604,935 591,905 285,158 - - - - - - Facilities augmentation - - - - - - - - - - Recreation - - - - - - - - - - Operating grants and contributions 6,997,288 7,946,673 6,603,611 4,958,663 1,651,781 1,876,254 2,512,675 2,740,748 4,872,950 2,333,785 Capital grants and contributions 786,090 4,834,197 1,746,682 25,829,934 10,145,979 8,101,825 1,482,225 8,838,335 6,392,764 21,457,547 Total business-type activities 37,512,071 44,480,263 40,681,876 62,660,350 46,592,610 51,659,976 49,602,607 66,112,480 71,060,646 85,363,566 Total primary gov't program revenues 81,877,795$ 94,491,478$ 100,776,317$ 142,250,646$ 125,476,935$ 134,611,986$ 147,477,360$ 173,904,112$ 186,193,725$ 205,426,323$ Schedule 2

CITY OF FOLSOM, CALIFORNIA
Changes in Net Position
Fiscal Year 2025, With Ten Year Trend Analysis
(accrual basis of accounting)
Fiscal Year
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Primary Government
Expenses and Revenues
Total primary gov't expenses
Total primary gov't program revenues
204

Page 459 ends

Folsom City CouncilMarch 24, 2026

Folsom City Council
March 24, 2026