Gridley City Council
March 2, 2026

16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and GAGAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements, schedules, and other information listed in the supplementary information section of the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with

16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Chavan & Associates, LLP
Certified Public Accountants
February 23, 2026
Morgan Hill, California

MANAGEMENT’S DISCUSSION

AND ANALYSIS

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City of Gridley Management’s Discussion and Analysis

INTRODUCTION
As management of the City of Gridley, California (city), we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of Gridley, for the fiscal year that ended on June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the other sections of the attached audited financial statements, required supplemental information and other supplemental information.

The required components of the report are listed below.

Required Components of the Annual Financial Report
FISCAL YEAR 2024/25 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
• The assets and deferred outflows of resources for the City of Gridley exceeded the liabilities and deferred inflows of resources at the close of the fiscal year by $40.48 million (net position). Of the net position, $21.98 million was classified as net investment in capital assets; $4.96 million recorded as restricted funds; and $13.54 million categorized as unrestricted net position. • The City’s net position increased by $1.19 million. This included a $785,618 decrease in the net position of Governmental Activities and a $1.97 million decrease in the net position of Business-Type Activities.
• City revenues increased by $3.79 million, or 21.5%, when compared to the prior fiscal year. This increase is primarily related to an increase in charges for services of $2.58 million from business-type activities, an an increase in operating grants and contributions of $1.55 million. Total expenses increased by $427,499, or 2.15%, with a $1.02 million increase in public safety, offset by a $457,623 decrease in community development, and a $280,066 decrease in business-type program expenses.

Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
City of Gridley Management’s Discussion and Analysis
• Deferred outflows of resources decreased by $761,477, while deferred inflows of resources decreased by $824,307. This was primarily related to pension liability adjustments estimated in the City’s actuarial reports, which include differences between expected and actual earnings; expected and actual experiences; and changes in proportional allocations. The City’s net pension liability as of June 30, 2025 was $14.4 million versus $14.63 million in the prior fiscal year, while the total OPEB liability for the fiscal year ending June 30, 2025 was $3.31 million versus $3.30 million in the prior fiscal year. • The City’s long-term debt decreased by $97,000, or 3.3%, during the fiscal year primarily from debt service payments made during the year.
• The City’s net capital assets increased by $1.03 million, or 4.33%, primarily as a result of additions in excess of depreciation expense.

Fund Highlights
• At the close of Fiscal Year 2024/25 the City’s Governmental Funds reported a combined fund balance of $10.43 million, which is a decrease of $1.37 million in comparison with the prior year. • At the end of the current fiscal year, the General Fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $6.34 million, or 92.06%, of total general fund expenditures, prior to transfers. The General Fund’s unassigned fund balance was $901,822, or 13.1%, of total general fund expenditures, prior to transfers. • The General Fund’s fund balance decreased by $1.67 million at the close of the fiscal year. This included an excess of operating expenditures over revenues of $2.76 million, before an additional $1.67 million in net transfers out.
• General Fund revenues decreased from prior year by $149,649 and expenditures decreased from prior year by $80,789.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.

The City’s basic financial statements are comprised of (1) Government-Wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information intended to furnish additional detail to support the basic financial statements themselves.

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

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

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes; and earned but unused vacation leave).

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

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

Business-Type Activities – The City’s enterprise activitiesinclude electric, water, sewer, drainage, solid waste, and senior taxi services. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.

The Government-Wide Financial Statements include not only the City itself (known as the primary government), but also a legally separate financing authority which the City is financially accountable. The City of Gridley Public Facilities Financing Authority (Financing Authority) is legally separate from the City but is blended with the primary government because it has the same governing board as the City and because of its financial relationship with the City. Separate financial statements are not issued for the Financing Authority.

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

Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Other Supplementary information includes subordinate schedules that present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City's activities. All of the City's funds can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.

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

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

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, 08-Home-4987 Grant Fund, Block Grant Fund, and Grant Related Funds, which are major funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Other Supplementary Information section of this report.

The City adopts an annual budget for its General Fund and Special Revenue Funds. A budgetary comparison statement has been provided for the General Fund and Major Special Revenue Funds to demonstrate compliance with this budget.

Proprietary Funds
The City has six Enterprise Funds that are a proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements.

Proprietary funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for include electric, water, sewer, drainage, solid waste, and senior taxi services. The electric, water and sewer funds are major enterprise funds for the City.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the Government-Wide Financial Statements because the resources of these funds are not available to support the City’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. The City maintains private purpose trust funds and custodial funds to report activities that are fiduciary in nature.

City of Gridley Management’s Discussion and Analysis

NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is necessary to acquire a full understanding of the data provided in the Government-Wide and Fund Financial Statements.

REQUIRED SUPPLEMENTARY INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s progress in funding its obligations to provide pension and Other Post Employment Benefit (OPEB) benefits to its employees.

SUPPLEMENTARY INFORMATION
The combining statements referred to earlier in connection with nonmajor governmental funds, are presented in the other supplementary information section, immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $40.48 million at the close of Fiscal Year 2024/25. This is an increase of $1.19 million over the prior fiscal year.

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

A significant portion, or $21.98 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), net of accumulated depreciation and less any outstanding debt that was used to acquire or construct those assets. Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate 2025 2024 2025 2024 2025 2024
Assets
Current and other assets $ 23,158,970 $ 25,325,234 $ 11,221,217 $ 10,061,412 $ 34,380,187 $ 35,386,646 Capital assets 11,406,353 10,761,126 13,414,765 13,029,009 24,821,118 23,790,135 Total Assets $ 34,565,323 $ 36,086,360 $ 24,635,982 $ 23,090,421 $ 59,201,305 $ 59,176,781 Deferred Outflows of Resources $ 2,880,747 $ 3,487,408 $ 2,341,004 $ 2,495,820 $ 5,221,751 $ 5,983,228 Liabilities
Current and other liabilities $ 1,458,354 $ 2,150,078 $ 734,759 $ 681,819 $ 2,193,113 $ 2,831,897 Noncurrent liabilities 10,332,115 10,600,997 10,359,384 10,550,485 20,691,499 21,151,482 Total Liabilities $ 11,790,469 $ 12,751,075 $ 11,094,143 $ 11,232,304 $ 22,884,612 $ 23,983,379 Deferred Inflows of Resources $ 627,344 $ 1,008,818 $ 430,668 $ 873,501 $ 1,058,012 $ 1,882,319 Net Position
Net investment in capital assets $ 11,406,353 $ 10,761,126 $ 10,572,765 $ 10,090,009 $ 21,979,118 $ 20,851,135 Restricted 4,959,118 5,490,730 - - 4,959,118 5,490,730
Unrestricted 8,662,786 9,562,019 4,879,410 3,390,427 13,542,196 12,952,446 Total Net Position $ 25,028,257 $ 25,813,875 $ 15,452,175 $ 13,480,436 $ 40,480,432 $ 39,294,311 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
City of Gridley Management’s Discussion and Analysis
the liabilities.

The $4.96 million classified as Restricted Net Position, represents resources that are subject to external restrictions, by external creditors, grantors, contributors, or laws or regulations of other governments, on how they may be used. Complete details of each fund can be found in the fund descriptions.

The remaining balance of $13.54 million is classified as unrestricted.

At the end of Fiscal Year 2024/25, the City reported a positive balance for the government as a whole.

The reasons for the overall financial changes are discussed in the following sections for governmental and business-type activities.

Governmental and Business-Type Activities
As shown in the Statement of Changes in Net Position schedule, the net position for Governmental Activities decreased by $785,618 during Fiscal Year 2024/25. This decrease is largely due to an increase in pension expense caused by differences from estimates versus actual results.

The net position for business-type activities increased by $1.97 million during Fiscal Year 2024/25. This increase was mostly due an increase in Charges for Services of $2.58 million. An analysis of the changes in revenues and expenses by type of significant events follows:

Increase Increase Increase
Functions/Programs 2025 2024 (Decrease) 2025 2024 (Decrease) 2025 2024 (Decrease) Program Revenues
Charges for services $ 601,536 $ 520,289 $ 13,214,406 81,247 $ $ 10,632,804 $ 2,581,602 $ 13,815,942 $ 11,153,093 $ 2,662,849 Operating grants and contributions 3,479,207 1,959,392 1,519,815 337,035 304,555 32,480 3,816,242 2,263,947 1,552,295 Total Program Revenues 4,080,743 2,479,681 1,601,062 13,551,441 10,937,359 2,614,082 17,632,184 13,417,040 4,215,144 General Revenues
Taxes 2,928,453 3,052,187 (123,734) - - 2,928,453 - 3,052,187 (123,734) Rental income 35,617 153,357 (117,740) - - 35,617 - 153,357 (117,740) Investment earnings 261,790 229,050 32,740 264,536 143,931 120,605 526,326 372,981 153,345 Other revenues 160,737 659,257 (498,520) 165,578 3,693 161,885 326,315 662,950 (336,635) Loss on disposal of capital assets - - - - - - - - -
Transfers 200,000 1,089,502 (889,502) (200,000) (1,089,502) 889,502 - - - Total General Revenues 3,586,597 5,183,353 (1,596,756) 230,114 (941,878) 1,171,992 3,816,711 4,241,475 (424,764) Expenses
General government 222,885 282,187 (59,302) - - 222,885 - 282,187 (59,302) Public safety 5,866,591 4,850,572 1,016,019 - - 5,866,591 - 4,850,572 1,016,019 Streets and public works 1,341,622 1,272,254 69,368 - - 1,341,622 - 1,272,254 69,368 Community development 396,175 853,798 (457,623) - - 396,175 - 853,798 (457,623) Parks and recreation 631,370 491,727 139,643 - - 631,370 - 491,727 139,643 Electric - - 7,979,924 - 7,494,671 485,253 7,979,924 7,494,671 485,253 Water - - 1,306,788 - 1,454,505 (147,717) 1,306,788 1,454,505 (147,717) Sewer - - 2,354,040 - 2,807,162 (453,122) 2,354,040 2,807,162 (453,122) Other proprietary - - 169,064 - 334,084 (165,020) 169,064 334,084 (165,020) Total Expenses 8,458,643 7,750,538 708,105 11,809,816 12,090,422 (280,606) 20,268,459 19,840,960 427,499 Increase / (Decrease) in Net Position (791,303) (87,504) (703,799) 1,971,739 (2,094,941) 4,066,680 1,180,436 (2,182,445) 3,362,881 Prior Period Adjustments 5,685 98,552 (92,867) 28,383 - (28,383) 5,685 126,935 (121,250) Net Position, Beginning of Year 25,813,875 25,802,827 13,480,436 11,048 15,546,994 (2,066,558) 39,294,311 41,349,821 (2,055,510) Net Position, End of Year $ 25,028,257 $ 25,813,875 $ (785,618) $ 15,452,175 $ 13,480,436 $ 1,971,739 $ 40,480,432 $ 39,294,311 $ 1,186,121 Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities Totals City of Gridley Management’s Discussion and Analysis
Governmental Activities
Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 2024/25:

Significant changes in governmental revenues consisted of the following:
• Charges for Services in governmental activities increased by $81,247 mostly from revenue received from Impact Fees and Business License fees. Although Plan Review fees were greater than the previous fiscal year, there was still a increase.
• In Fiscal Year 2024/25, operating grants and contributions increased by $1.52 million. The increase was mainly due to one-time grants received from federal, state and county agencies when compared to the prior fiscal year.
• Taxes decreased by $123,734, mostly because the city received less Sales and Use Taxes and Gas Tax Revenue compared to the previous fiscal year.
• Rental Income decreased by $117,740 mostly due to a one-time correction to rental income for the FEMA payments.
• Investment earnings increased by $32,740 which reflects the rise in interest rates and changes in fair value.
• Other revenue decreased by $498,520 due to the recognition of deferred grants. • Transfers decreased by $889,502, mostly due to the transfer of GHG carbon credits that were posted to the Electric Fund and now being tracked in its own Fund.Governmental Expenses City of Gridley Management’s Discussion and Analysis
The Fiscal Year 2024/25 expenses for Governmental Activities increased by $708,105 as illustrated in the chart below:

Significant changes in governmental expenses consisted of the following:

Overall governmental expenses increased by $708,105 mostly from increases to public safety. Public safety expenses increased by $1.02 million mostly due to the increase of salaries and benefits for public safety employees. Community development expenses decreased by $457,623 mostly because of prior year CDBG loan payments for Sunrise Village Senior Housing. The changes in program expenses are a part of the presentation of financial statements on a government-wide perspective, whereby expenditures are allocated to departments related to adjustments for actuarial pension reports and depreciation.

Additional allocations or conversion entries are needed to convert fund statements to a government-wide perspective
City of Gridley Management’s Discussion and Analysis
Business-Type Activities
The City’s net position for business-type activities increased by $1.97 million. The following chart is a summary of the changes in revenues and expenses for the City’s business-type activities from Fiscal Year 2024/25 to 2023/24, with additional analysis following the chart:

Total Program Revenues for business-type activities increased by $2.61 million when compared to the prior fiscal year. Most of the increase was from an increase in utility billings, with the majority coming from the Electric fund.

Total General Revenues increased by $282,490 because of increased investment earnings and transfers out decreased by $889,502 from the transfer of GHG carbon credits that were posted to the Electric Fund in prior years.

Total expenses for business type activities decreased by $280,606 million when compared to the prior fiscal year. This was primarily due to employee salary and benefits decreases which include GASB 68 adjustments and OPEB adjustments.

City of Gridley Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

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

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

The following summarizes the fund balances by major and nonmajor funds:

Total Fund Balance as of June 30, 2025 was $10.43 million. All of the City’s fund balance was either nonspendable, restricted, committed, or assigned to indicate that it was (1) not in a spendable form, $176,617; (2) restricted for particular purposes, $5 million; (3) committed by Council resolution for a specific purpose, $42,759; or (3) assigned for particular purposes, $5.22 million. A summary of the changes in fund balance of the Major Funds and Nonmajor Governmental Funds is presented below:

As of June 30, 2025, the City’s governmental funds reported combined fund balances of $10.43 million, a decrease of $1.37 million when compared with the prior fiscal year. 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Nonspendable $ 176,617 $ - $ - $ - $ - $ 176,617
Restricted - 4,002 724,956 1,371,308 2,897,381 4,997,647 Committed 42,759 - - - - 42,759
Assigned 5,217,753 - - - 5,217,753 -
Unassigned 901,822 - - - (901,822) -
Total Fund Balance $ 6,338,951 $ 4,002 $ 724,956 $ 1,371,308 $ 1,995,559 $ 10,434,776 Table 3 - Summary of Fund Balances - Governmental Funds 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Total Revenues $ 4,123,364 $ 117 $ 116,061 $ 1,775,243 $ 1,520,372 $ 7,535,157 Total Expenditures 6,885,898 - 8,103 704,235 1,509,063 9,107,299 Revenues Over (Under) Expenditures (2,762,534) 117 107,958 1,071,008 11,309 (1,572,142) Transfers in 2,230,988 - - - 1,574,826 3,805,814
Transfers out (1,139,921) - - (1,790,000) (675,893) (3,605,814) Net change in fund balances (1,671,467) 117 107,958 (718,992) 910,242 (1,372,142) Beginning of year 8,010,418 3,885 616,998 2,090,300 1,079,632 11,801,233 Prior Period Adjustment - - - - 5,685 5,685
End of year $ 6,338,951 $ 4,002 $ 724,956 $ 1,371,308 $ 1,995,559 $ 10,434,776 Table 4 - Summary of Changes in Fund Balance - Governmental Funds City of Gridley Management’s Discussion and Analysis
Analysis of Individual Funds
The General Fund is the chief operating fund of the City. As of the end of Fiscal Year 2024/25, the unassigned fund balance in the general fund was $901,822, while total fund balance decreased to $6.34 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents

13.1% of total general fund expenditures, which down from 38.96%, while total fund balance represents

92.06% of total general fund expenditures, which is down from 114.98%.

The fund balance in the General Fund decreased by $1.67 million during Fiscal Year 2024/25. This is primarily attributed to $1.14 million of transfers to the nonmajor Gas Tax Fund for capital projects that were funded by unrestricted resources. In addition, operating expenditures exceeded operating revenues by $2.76 million during fiscal year 2024/25.

The 08-Home-4987 Fund’sfund balance increased by $117 during the year. This fund is reported as major because of the loans reported in that fund totaling $5.55 million at year end.

The Bock Grant Fund’s fund balance increased by $107,958 during the year as revenues exceeded expenditures by this amount during the year mostly due to program income related to the block grants.

The Grant Related Funds fund balance decreased by $718,992 during the year mostly from transfers out to the General Fund as revenues exceeded expenditures by $1.07 million.

Nonmajor Governmental Fund’s fund balances increased by $915,927 million mainly due to transfers from the General Fund totaling $1.14 million.

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

Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council.

Revenues
The General Fund adopted and final revenue budgets were $4.73 million with actual revenues at $4.12 million. The overall budgetary difference of $601,749 primarily reflects taxes and assessments that were less than expected by $879,663. Originally, the General Fund Sports Complex reimbursement of $1.015 million was going to be recorded in the General Fund, but a separate fund was created for this revenue.

Expenditures
The General Fund adopted and final expenditure budget was $7.51 million. The actual expenditures totaled $6.89 million, which resulted in a net savings from the final budget of $626,263. This budgetary variance was mostly attributable to lower-than-expected capital outlay and general government costs.

City of Gridley Management’s Discussion and Analysis

CAPITAL ASSETS
The City of Gridley’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, was $24.82 million (net of accumulated depreciation). This includes net capital assets from governmental activities of $11.41 million and net capital assets from business-type activities of $13.41 million. This investment in capital assets includes land, buildings and improvements, machinery and equipment, infrastructure and sewer systems.

The following table summarizes the City’s capital assets at the end of the fiscal year:

The total increase in the City’s capital assets, net of depreciation and disposals was $1.03. In Governmental Activities, the net increase in capital assets was $645,227, or 6%, while business-type activities capital assets increased by $385,756, or 3%. These changes were mainly attributed to additions in excess of depreciation.

Additional detail and information on capital asset activity is included in the notes to the financial statements, Note 6.

DEBT ADMINISTRATION
At the end of the fiscal year, the City had total debt outstanding of $2.84 million which was all reported in business-type activities.

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

During the fiscal year, long-term debt decreased by $97,000. The reduction in Long-Term Debt was a result of debt service payments. Additional detail and information on long-term debt activity is included in the notes to the financial statements, Note 7.
2025 2024 2025 2024 2025 2024 % Change
Land - non-depreciable $ 1,150,990 $ 1,150,990 $ 921,793 $ 921,793 $ 2,072,783 $ 2,072,783 0.00% Construction in Progress - non-deprec 1,135,881 673,373 815,855 941,151 1,951,736 1,614,524 20.89% Infrastructure 3,147,248 3,416,714 4,439,173 3,301,074 7,586,421 6,717,788 12.93% Buildings and Improvements 758,828 871,548 149,595 166,392 908,423 1,037,940 -12.48% Improvements other than Buildings 3,051,347 3,219,110 4,513,803 4,929,439 7,565,150 8,148,549 -7.16% Vehicle and Equipment 2,162,059 1,429,391 2,574,546 2,769,160 4,736,605 4,198,551 12.82% Total Capital Assets, Net $ 11,406,353 $ 10,761,126 $ 13,414,765 $ 13,029,009 $ 24,821,118 $ 23,790,135 4.33% Table 5 - Capital Assets at Year End - Net
Governmental Activities Business-type Activities Total
2025 2024 % Change
USDA Rural Development Loan $ 826,000 $ 865,000 -4.51%
USDA Rural Development Loan 2,016,000 2,074,000 -2.80%
Total outstanding long-term debt $ 2,842,000 $ 2,939,000 -3.30% Table 6 - Outstanding Long-Term Debt at Year End
Business-type Activities
City of Gridley Management’s Discussion and Analysis

ECONOMIC FACTORS
Summary
The City’s primary revenue sources include property taxes, sales and use taxes, and Franchise Tax Fee and Stage Coach Trailer Tax. Property tax revenue is projected to grow as the City anticipates more housing to be built.

The City’s General Fund revenue for FY 2024-2025 was $3.58million, the projection for FY 2025-2026 is $6.65 million. The increase is mainly due to property taxes, sales tax, and the state trailer coach tax. As we expect more housing, franchise fee revenue is expected to increase as well. We will monitor these fees and review the impact. The City is planning to review and possibly update its fees and fees structure. This will be done by a third party that will guide and recommend the City of the fees to increase and/or implement. While the approaching fiscal year reflects increased revenue receipts, the economic outlook assumes the leveling off of sales and use taxes to anticipate only a conservative 3% growth over prior year revenues as consumers shift from goods to services.

Planned expenditures also increased in the upcoming fiscal year. City staffing levels increased to 67 fulltime equivalents (FTE) in fiscal year 2024-2025. The cost of staffing from $11.4 million to $12.3 million due to a combination of factors such as the UAL, negotiated salary and benefit adjustments, personnel advancement (annual merit or salary step adjustments), rising retirement and health insurance costs and additional staff. This also includes certain non-employee staff such as the Fire Department. Personnel costs will steadily increase as the City is projected to grown and certain projects such as the Sports Complex and Highway 99 beatification are complete.

However, even without an increase in staffing levels, the City faces rising personnel costs primarily attributed to pension-related expenses. In addition to its annual contributions toward retirement costs for existing employees, the City makes an annual required payment to the California Public Employees’ Retirement System (CalPERS) for the City’s unfunded accrued liability (“UAL”). The UAL payment for FY 2024-2025 was $1.25 million. FY 2025-2026 UAL payment was roughly $1.39 million and the FY 2026-2027 UAL payment is projected to be $1.56 million. The City has a plan in place to pay additional payments in an effort to reduce the liability payment in future years. There are options to this such as Section 115 Trust or adjustments of the Amortization Schedule. If we continue to see an increase the City may look into refinancing the amount to a lower interest rate.

If the City Council elects to start funding a Section 115 trust, it will have to plan and continually fund the trust while maintaining an annual balanced budget. To achieve this, the revenues must sustain an annual growth over the next several years and controlling the citywide expenses, particularly regarding the salary and benefits and capital outlay. Inflation also affects the ability to reduce costs for staffing, services, and supplies.

City of Gridley Management’s Discussion and Analysis
Outlook for Major Revenues
Property Taxes
The City’s land capacity for new housing is limited, which curtails the availability of housing stock. The rising cost of housing as well as the loan rates, creates a volatility in the housing market. This limited supply, coupled with a high demand for housing driven by the City’s desirability as a place to live, contributes to a healthy real estate market and thus the stability and strength of property tax revenues.

Unlike sales tax and franchise fees, the fiscal year 2025-2026 budget assumed minimal growth in property tax and continued resiliency.

The State median home price decrease to $780K in 2025 compared to previous, setting a 6% decrease from prior year. The California median home sales price for 2026 is expected to rise 2%. Gridley has consistent property tax base and the City does not foresee the average home in Gridley to be as high as the California Median home price. While fiscal year 2025-2026 property tax revenue is on par with projections, annual growth of 3% is conservatively realistic. The financial forecast assumes 3% annual growth over the next several years.

Sales and Use Taxes
Many of the features that contribute to residential quality of life, such as a temperate climate, natural beauty, and various family friendly events also attract visitors. The unique restaurants and other shopping options located within the City, as well as grocery and clothing retailers contributes to shopping opportunities for residents and visitors alike. The City also hosts the yearly Butte County Fair at the end of August, this also attracts visitors from surrounding cities and is a popular attraction. 2025-2026 budget projects a $1.72 million, which is higher change when comparing to FY 2024-2025 actuals. Inflation is a major factor, recent trends show inflation has cooled in FY 2025-2026 while financing costs are expected to begin a gradual decent in 2026. The City will be closely monitoring this and adjust budgeted amounts during a Mid-Year Budget review if needed.

Franchise Fees
The City currently gets Franchise Fees Revenues from vendors that provide a service that the City does not provide, but is essential for our residents. This includes Waste/Environmental Services, Cable/Internet Services, and Gas Services. These services play a vital role in the quality of life for our residents and it benefits the City as a source of revenue. There was a projected minimal increase of 3% for FY 2025-2026.

The City will collect revenue from the fees which are collected from the vendor providing the services.

Outlook for Major Expenditures
Salaries and Benefits
The City’s largest expenditure is related to the cost of personnel. City staffing levels increased to 67 fulltime equivalents (FTE) in fiscal year 2024-2025. Correspondingly, the cost of staffing increases from $11.4 million to $12.3 million due to a combination of factors such as negotiated salary and benefit adjustments, step increases, rising retirement and health care costs and additional staff. Personnel costs steadily increase with additional increases in FTE beyond fiscal year 2025-2026 staffing levels. The City recently City of Gridley Management’s Discussion and Analysis
completed labor negotiations that will affect future budgets. Increase Health Benefits costs will also play a major role in future budgets.

Pension Costs
The City provides a defined pension plan through the California Public Employees’ Retirement System (CalPERS) for its full-time employees. As such, the City is responsible for contributing toward current employees’ retirement packages based upon a set amount determined by CalPERS based upon a percentage of salary (“employer contribution”). The employer contribution is included within the City’s overall budgeted salary and benefit costs. In addition, the City is obligated to make additional pension payments to CalPERS known as the Unfunded Accrued Lability (“UAL”). The UAL addresses any shortfall between the funding CalPERS needs to pay for retirement benefits when employees retire; compared to the funding that CalPERS currently has on hand to pay for the estimated costs of these benefits.

The City’s UAL is estimated at $15.5 million (not including interest) based on the valuation date of June 30, 2023 and 2024. As calculated by CalPERS, the City’s UAL annual contribution payment has been steadily increasing and projected to increase by $1.7 million by year 2034. The City anticipates annual contribution costs will continue to rise over the next several years even if staffing levels remain unchanged. To help address its pension obligations, the City has a plan in place in efforts to reduce the liability.

Other Operating Costs
In order to deliver services to the community, the City procures various types of goods and services. The category of services and supplies assumes a modest annual growth in fiscal year 2025-2026, as the City adjusts for goods and services overall sensitivity to inflation. The City is hopeful that federal interest rates will ease in 2026 and inflation will slow. The City contracts for specialized professional services and costs trend upward based upon credentials, certifications and qualifications of the individuals providing the service. Moreover, the City currently contracts with another governmental agency for fire prevention and response services, subject to increases based upon salary and benefits, including pension. Overall costs across all sectors are significantly higher over prior fiscal years.

Capital Projects
The City capital expenditures budgeted is $3.74 million in fiscal year 2025-2026. The City’s Five-Year Capital Improvement Plan totals $27.2 million and identifies needs of $5.4 million annually over the next five fiscal years. Similar to service and supplies, inflation and other market-based conditions drive the availability of contractors and costs to implement public works projects, subject to prevailing wage. In addition, deferring building and infrastructure maintenance drives long-term costs for repair and replacement.

Debt Service
In FY 2022, the City worked with a third party vendor and successfully refinanced two bonds. The City was able to refinance at a lower interest rate which in turn will be an interest cost savings to the City. Prior to the dissolution of the Redevelopment Agency (“RDA”), the former agency issued a $2.9 million and $1.7 million bond for the purpose of providing funds to finance redevelopment projects.

City of Gridley Management’s Discussion and Analysis

REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City's finances for all of the City's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Gridley Finance Department at 685 Kentucky St., Gridley, CA 95948, or visit the City of Gridley webpage at www.gridley.ca.us.

BASIC FINANCIAL STATEMENTS

City of Gridley
Statement of Net Position
June 30, 2025
BusinessGovernmental Type
Activities Activities Total
ASSETS
Current Assets:

Cash and investments $ 11,012,131 $ 8,630,806 $ 19,642,937 Accounts receivable 106,157 1,147,378 1,253,535
Due from other governments 77,826 27,309 105,135
Interest receivable 18,128 18,466 36,594
Taxes receivable 330,210 - 330,210
Prepaid items 91,532 28,006 119,538
Inventory - 1,207,357 1,207,357
Advances to fiduciary funds 326,868 - 326,868
Leases receivable 25,679 - 25,679
Internal balances (161,895) 161,895 -
Total Current Assets 11,826,636 11,221,217 23,047,853
Noncurrent Assets:

Loans receivable 11,055,982 - 11,055,982
Leases receivable 276,352 - 276,352
Capital Assets:

Nondepreciable 2,286,871 1,737,648 4,024,519
Depreciable, net of accumulated depreciation 9,119,482 11,677,117 20,796,599 Total Capital Assets, Net 11,406,353 13,414,765 24,821,118 Total Noncurrent Assets 22,738,687 13,414,765 36,153,452 Total Assets $ 34,565,323 $ 24,635,982 $ 59,201,305

DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments $ 2,880,747 $ 2,341,004 $ 5,221,751 Total Deferred Outflows of Resources $ 2,880,747 $ 2,341,004 $ 5,221,751 Continued
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Net Position
June 30, 2025
BusinessGovernmental Type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts payable $ 1,152,297 $ 162,994 $ 1,315,291
Accrued expenses - 57,403 57,403
Unearned revenue 24,101 - 24,101
Deposits payable 57,225 257,997 315,222
Interest payable - 21,560 21,560
Compensated absences, due within one year 224,731 135,805 360,536 Long-term debt, due within one year - 99,000 99,000
Total Current Liabilities 1,458,354 734,759 2,193,113
Noncurrent Liabilities:

Total OPEB liability 1,879,100 1,426,687 3,305,787
Net pension liability 8,312,874 6,090,964 14,403,838
Compensated absences, due in more than one year 140,141 98,733 238,874 Long-term debt, due in more than one year - 2,743,000 2,743,000 Total Noncurrent Liabilities 10,332,115 10,359,384 20,691,499 Total Liabilities $ 11,790,469 $ 11,094,143 $ 22,884,612

DEFERRED INFLOWS OF RESOURCES
Leases $ 293,814 $ - $ 293,814
Pension Adjustments 333,530 430,668 764,198
Total Deferred Inflows of Resources $ 627,344 $ 430,668 $ 1,058,012

NET POSITION
Net investment in capital assets $ 11,406,353 $ 10,572,765 $ 21,979,118 Restricted for:

Redevelopment 1,684,150 - 1,684,150
Grants 2,593,134 - 2,593,134
Taxes and fees 676,765 - 676,765
Capital projects 3,359 - 3,359
Other 1,695 - 1,695
Total Restricted 4,959,103 - 4,959,103
Unrestricted 8,662,801 4,879,410 13,542,211
Total Net Position $ 25,028,257 $ 15,452,175 $ 40,480,432 Concluded
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Activities
For the Year Ended June 30, 2025
Operating BusinessCharges for Grants and Governmental Type Functions/Programs Expenses Services Contributions Activities Activities Total Primary Government:

Governmental Activities:

General government $ 222,885 $ 463,151 $ 1,483,410 $ 1,723,676 $ 1,723,676 Public safety 5,866,591 23,116 660,493 (5,182,982) (5,182,982) Streets and public works 1,341,622 - 1,070,963 (270,659) (270,659) Community development 396,175 102,943 23,621 (269,611) (269,611) Parks and recreation 631,370 12,326 240,720 (378,324) (378,324) Total Governmental Activities $ 8,458,643 $ 601,536 $ 3,479,207 (4,377,900) (4,377,900) Business-Type Activities:

Electric $ 7,979,924 $ 9,537,388 $ - 1,557,464 1,557,464 Water 1,306,788 1,522,223 - 215,435 215,435
Sewer 2,354,040 2,150,961 - (203,079) (203,079)
Other proprietary 169,064 3,834 337,035 171,805 171,805 Total Business-Type Activities $ 11,809,816 $13,214,406 $ 337,035 1,741,625 1,741,625 General Revenues:

Taxes:

Property taxes 639,581 - 639,581
Sales and use taxes 1,584,391 - 1,584,391
Motor vehicle and gas taxes 387,671 - 387,671
Occupancy tax 29,261 - 29,261
Franchise taxes 149,923 - 149,923
Other taxes 137,626 - 137,626
Total taxes 2,928,453 - 2,928,453
Investment earnings 261,790 264,536 526,326
Rental income 35,617 - 35,617
Other revenues 160,737 165,578 326,315
Total General Revenues 3,386,597 430,114 3,816,711
Transfers 200,000 (200,000) -
Total General Revenues and Transfers 3,586,597 230,114 3,816,711 Change in Net Position (791,303) 1,971,739 1,180,436
Net Position - Beginning of Year 25,813,875 13,480,436 39,294,311 Prior Period Restatements 5,685 - 5,685
Net Position - Beginning, as Restated 25,819,560 13,480,436 39,299,996 Net Position - End of Year $ 25,028,257 $ 15,452,175 $ 40,480,432 The accompanying notes are an integral part of these financial statements.

Net (Expense) Revenue and Changes
Program Revenues in Net Position

GOVERNMENTAL FUND FINANCIAL STATEMENTS
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.

The 08-Home-4987 Grant Fund is a special revenue fund used to account for the activities of the U.S.

Department of Housing and Urban Development HOME Investment Partnerships Grant.

The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).

The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).

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City of Gridley
Balance Sheet
Governmental Funds
June 30, 2025
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds
ASSETS
Cash and investments $ 6,053,333 $ 3,994 $ 536,323 $ 1,373,382 $ 3,045,099 $ 11,012,131 Accounts receivable 103,101 - 954 - 2,102 106,157
Due from other governments - - 77,826 - - 77,826
Interest receivable 10,904 8 906 - 6,310 18,128
Taxes receivable 324,412 - - - 5,798 330,210
Loans receivable - 5,546,250 2,800,347 2,709,385 - 11,055,982 Due from other funds 860,352 - - - 329,029 1,189,381
Prepaid items 91,532 - - - - 91,532
Leases receivable 302,031 - - - - 302,031
Advances to fiduciary funds 76,868 - 250,000 - - 326,868 Total assets $ 7,822,533 $ 5,550,252 $ 3,666,356 $ 4,082,767 $ 3,388,338 $ 24,510,246

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 1,108,817 $ - $ 278 $ 2,074 $ 41,128 $ 1,152,297 Unearned revenue 24,101 - - - - 24,101
Deposits payable 56,850 - - - 375 57,225
Due to other funds - - - - 1,351,276 1,351,276
Total liabilities 1,189,768 - 278 2,074 1,392,779 2,584,899 Deferred Inflows of Resources:

Leases 293,814 - - - - 293,814
Unavailable revenues - 5,546,250 2,941,122 2,709,385 - 11,196,757 Total deferred inflows of resources 293,814 5,546,250 2,941,122 2,709,385 - 11,490,571 Fund Balances:

Nonspendable
Leases receivable 8,217 - - - - 8,217
Advances to fiduciary funds 76,868 - - - - 76,868
Prepaid items 91,532 - - - - 91,532
Total nonspendable 176,617 - - - - 176,617
Restricted:

Redevelopment - - - - 1,684,150 1,684,150
Grants - 4,002 724,956 1,371,308 492,868 2,593,134
Taxes and fees - - - - 676,765 676,765
Capital projects - - - - 3,359 3,359
Community development - - - - 38,529 38,529
Other - - - - 1,695 1,695
Total restricted - 4,002 724,956 1,371,308 2,897,366 4,997,632 Committed:

Infrastructure reserve 42,759 - - - - 42,759
Total committed 42,759 - - - - 42,759
Assigned:

Bond reserve 3,266,953 - - - - 3,266,953
Equipment replacement 1,857,887 - - - - 1,857,887
Building maintenance 92,913 - - - - 92,913
Total assigned 5,217,753 - - - - 5,217,753
Unassigned 901,822 - - - (901,807) 15
Total fund balances 6,338,951 4,002 724,956 1,371,308 1,995,559 10,434,776 Total liabilities, deferred inflows of
resources and fund balances $ 7,822,533 $ 5,550,252 $ 3,666,356 $ 4,082,767 $ 3,388,338 $ 24,510,246 The accompanying notes are an integral part of these financial statements.

City of Gridley
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 10,434,776 Amounts reported for governmental activities in the statement of net position were different because:

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

Capital assets 25,968,714
Less: accumulated depreciation (14,562,361)
Total Capital Assets 11,406,353
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 2,547,217 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as deferred inflows of resources in the fund statements.

The unavailable amounts offset loans receivable in the fund statements. 11,196,757 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Compensated absences (364,872)
Net pension liability (8,312,874)
Total OPEB liability (1,879,100)
Total Long-Term Obligations (10,556,846)
Net Position of Governmental Activities $ 25,028,257
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds

REVENUES
Taxes and assessments $ 3,237,217 $ - $ - $ - $ 590,496 $ 3,827,713 Licenses, permits and fees 62,700 - - - 16,704 79,404
Fines and forfeitures 3,287 - - - 23,117 26,404
Intergovernmental 431,973 - 12,085 1,772,067 375,909 2,592,034 Charges for services 61,078 - - - 331,708 392,786
Program income - - 90,858 - - 90,858
Use of money and property 181,391 117 13,118 3,176 99,605 297,407 Other revenue 145,718 - - - 82,833 228,551
Total Revenues 4,123,364 117 116,061 1,775,243 1,520,372 7,535,157

EXPENDITURES
Current:

General government 122,223 - - 6,884 - 129,107
Public safety 6,094,226 - - - - 6,094,226
Streets and public works 368,507 - - - 566,962 935,469
Community development 95,174 - 8,103 4,301 320,320 427,898 Parks and recreation 195,253 - - 43,541 258,229 497,023 Capital outlay 10,515 - - 649,509 363,552 1,023,576
Total Expenditures 6,885,898 - 8,103 704,235 1,509,063 9,107,299 Excess (Deficiency) of
Revenues over Expenditures (2,762,534) 117 107,958 1,071,008 11,309 (1,572,142)

OTHER FINANCING SOURCES (USES)
Transfers in 2,230,988 - - - 1,574,826 3,805,814
Transfers out (1,139,921) - - (1,790,000) (675,893) (3,605,814) Total Other Financing Sources (Uses) 1,091,067 - - (1,790,000) 898,933 200,000 Net Change in Fund Balances (1,671,467) 117 107,958 (718,992) 910,242 (1,372,142) Fund Balances Beginning 8,010,418 3,885 616,998 2,090,300 1,079,632 11,801,233 Prior Period Restatements - - - - 5,685 5,685
Fund Balances Beginning, as Adjusted 8,010,418 3,885 616,998 2,090,300 1,085,317 11,806,918 Fund Balances Ending $ 6,338,951 $ 4,002 $ 724,956 $ 1,371,308 $ 1,995,559 $ 10,434,776 The accompanying notes are an integral part of these financial statements.

City of Gridley
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ (1,372,142) Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:

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

Capital asset additions 1,619,463
Depreciation expense (974,236)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable program expense. 82,729
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenue and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the Statement of Net Position.

Loan program receipts (67,817)
In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (268,633)
Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Other postemployment benefits 189,333
Change in Net Position of Governmental Activities $ (791,303) The accompanying notes are an integral part of these financial statements.

PROPRIETARY FUND FINANCIAL STATEMENTS
The Electric Fund is used to account for the activities of the City's electric generation and distribution operations.

The Water Fund is used to account for the activities of the City's water treatment and distribution operations.

The Sewer Fund is used to account for the activities of the City's sewage collection and treatment operations.

Nonmajor enterprise funds include the Drainage Fund, Solid Waste Fund and Senior Taxi Fund.

City of Gridley
Statement of Net Position
Proprietary Funds
June 30, 2025
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
ASSETS
Current assets:

Cash and investments $ 1,272,882 $ 2,896,530 $ 4,308,777 $ 152,617 $ 8,630,806 Accounts receivable, net 874,093 114,285 159,000 - 1,147,378 Due from other governments 26,346 - - 963 27,309
Interest receivable 2,258 7,855 8,318 35 18,466
Due from other funds - - - 490,924 490,924
Prepaid items 14,003 14,003 - - 28,006
Inventory 1,153,129 52,244 1,984 - 1,207,357
Total current assets 3,342,711 3,084,917 4,478,079 644,539 11,550,246 Noncurrent assets:

Capital assets:

Nondepreciable assets 734,544 282,348 720,756 - 1,737,648 Depreciable, net 3,022,674 3,640,950 5,013,493 - 11,677,117 Total capital assets, net 3,757,218 3,923,298 5,734,249 - 13,414,765 Total noncurrent assets 3,757,218 3,923,298 5,734,249 - 13,414,765 Total assets $ 7,099,929 $ 7,008,215 $ 10,212,328 $ 644,539 $ 24,965,011

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ 1,163,654 $ 424,389 $ 584,706 $ 168,255 $ 2,341,004 Total deferred outflows of resources $ 1,163,654 $ 424,389 $ 584,706 $ 168,255 $ 2,341,004

LIABILITIES
Current liabilities:

Accounts payable $ 109,698 $ 18,980 $ 28,164 $ 6,152 $ 162,994 Accrued expenses 37,373 2,195 17,835 - 57,403
Interest payable - - 21,548 12 21,560
Deposits payable 257,997 - - - 257,997
Due to other funds - - - 329,029 329,029
Compensated absences, current 75,000 21,343 31,783 7,679 135,805 Long-term liabilities, current - - 99,000 - 99,000
Total current liabilities 480,068 42,518 198,330 342,872 1,063,788 Noncurrent liabilities:

Total OPEB liability 696,566 363,404 366,717 - 1,426,687 Net pension liability 3,027,663 1,104,200 1,521,325 437,776 6,090,964 Compensated absences, noncurrent 944 30,388 50,145 17,256 98,733 Long-term liabilities, noncurrent - - 2,743,000 - 2,743,000 Total noncurrent liabilities 3,725,173 1,497,992 4,681,187 455,032 10,359,384 Total liabilities $ 4,205,241 $ 1,540,510 $ 4,879,517 $ 797,904 $ 11,423,172

DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ 214,074 $ 78,074 $ 107,567 $ 30,953 $ 430,668 OPEB adjustments 0 0 0 - -
Total deferred inflows of resources $ 214,074 $ 78,074 $ 107,567 $ 30,953 $ 430,668

NET POSITION
Net Investment in capital assets $ 3,757,218 $ 3,923,298 $ 2,892,249 $ - $ 10,572,765 Unrestricted 87,050 1,890,722 2,917,701 (16,063) 4,879,410 Total net position $ 3,844,268 $ 5,814,020 $ 5,809,950 $ (16,063) $ 15,452,175 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

City of Gridley
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2025
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total

OPERATING REVENUES
Charges for services $ 9,537,388 $ 1,522,223 $ 2,150,961 $ 3,834 $ 13,214,406 Intergovernmental - - - 337,035 337,035
Other revenue - 75 139,820 25,683 165,578
Total operating revenues 9,537,388 1,522,298 2,290,781 366,552 13,717,019

OPERATING EXPENSES
Salaries and benefits 1,726,166 580,198 855,589 136,726 3,298,679 Materials and supplies 355,714 188,145 322,871 10,321 877,051 Repairs and maintenance 588,886 201,702 261,502 9,842 1,061,932 Power and utilities 4,457,800 195 132,799 - 4,590,794
Contractual services 151,970 22,921 35,509 266 210,666
Administration 408,629 139,840 106,150 11,909 666,528
Miscellaneous - - 27,270 - 27,270
Depreciation and amortization 290,759 173,787 533,806 - 998,352 Total operating expenses 7,979,924 1,306,788 2,275,496 169,064 11,731,272 Operating income (loss) 1,557,464 215,510 15,285 197,488 1,985,747

NONOPERATING REVENUES(EXPENSES)
Interest expense - - (78,544) - (78,544)
Interest income 28,767 111,077 124,970 (278) 264,536
Total nonoperating revenues(expenses) 28,767 111,077 46,426 (278) 185,992 Income (loss) before transfers 1,586,231 326,587 61,711 197,210 2,171,739

CONTRIBUTIONS AND TRANSFERS
Transfers in 399,667 1,200,000 - - 1,599,667
Transfers out (1,799,667) - - - (1,799,667)
Net contributions and transfers (1,400,000) 1,200,000 - - (200,000) Change in net position 186,231 1,526,587 61,711 197,210 1,971,739 Total net position - beginning 3,658,037 4,287,433 5,748,239 (213,273) 13,480,436 Total net position - ending $ 3,844,268 $ 5,814,020 $ 5,809,950 $ (16,063) $ 15,452,175 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

City of Gridley
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
Cash flows from operating activities:

Receipts from customers $ 9,294,097 $ 1,505,478 $ 2,274,438 $ 456,023 $ 13,530,036 Payments to suppliers (5,937,343) (555,389) (859,322) (27,541) (7,379,595) Payments to employees (1,920,396) (656,619) (923,530) (152,775) (3,653,320) Net cash provided (used) by operating activities 1,436,358 293,470 491,586 275,707 2,497,121 Cash flows from noncapital financing activities:

Interfund transactions (1,400,000) 1,200,000 - (246,601) (446,601) Net cash provided (used) by noncapital financing activities (1,400,000) 1,200,000 - (246,601) (446,601) Cash flows from capital financing activities:

Acquisition of capital assets (35,974) (1,310,566) (37,563) (1,073) (1,385,176) Principal payments on long-term debt - - (97,000) - (97,000) Interest paid on long-term debt - - (79,329) - (79,329) Net cash provided (used) by capital financing activities (35,974) (1,310,566) (213,892) (1,073) (1,561,505) Cash flows from investing activities:

Investment income received 30,813 110,164 127,626 95 268,698 Net cash provided (used) by investing activities 30,813 110,164 127,626 95 268,698 Net increase (decrease) in cash and cash equivalents 31,197 293,068 405,320 28,128 757,713 Cash and cash equivalents - beginning 1,241,685 2,603,462 3,903,457 124,489 7,873,093 Cash and cash equivalents - ending $ 1,272,882 $ 2,896,530 $ 4,308,777 $ 152,617 $ 8,630,806 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ 1,557,464 $ 215,510 $ 15,285 197,488 $ 1,985,747 Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 290,759 173,787 533,806 - 998,352
Changes in operating assets and liabilities:

Accounts receivables (233,021) (16,820) (16,343) - (266,184) Due from other governments - - - 89,471 89,471
Prepaid items 12,419 (4,675) 9,328 - 17,072
Deferred outflows of resources 103,492 17,922 20,580 12,817 154,811 Accounts payable 11,842 1,732 15,987 4,797 34,358
Accrued expenses 1,395 357 1,464 - 3,216
Deposits payable (10,270) - - - (10,270)
Total OPEB liability 4,437 860 4,173 - 9,470
Net pension liability (93,388) 14,764 30,472 (8,214) (56,366) Compensated absences 17,871 (21,986) (16,988) 1,380 (19,723) Deferred inflows of resources (226,642) (87,981) (106,178) (22,032) (442,833) Net cash provided (used) by operating activities $ 1,436,358 $ 293,470 $ 491,586 $ 275,707 $ 2,497,121 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

FIDUCIARY FUND FINANCIAL STATEMENTS
Private-Purpose Trust Funds
The City’s private purpose trust funds include the Main Trust Fund and the Successor Agency Trust Fund.

The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. The Successor Agency Trust Fund is used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Gridley City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.

Custodial Funds
The City’s custodial funds include the Gridley Bid Fund and the Hospital JPA Administration Fund.

City of Gridley
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Private
Purpose Trust Custodial
Funds Funds
ASSETS
Cash and investments $ 1,347,485 $ -
Restricted cash and investments 16,366 -
Interest receivable 440 -
Capital assets, land 1,302,116 -
Total assets $ 2,666,407 $ -
DEFERRED OUTFLOWS OF RESOURCES $ 142,106 $ -
Loss on debt refunding

LIABILITIES
Accounts payable $ 53 $ -
Interest payable 75,012 2
Unearned revenue 250,040 -
Advances from the City 326,868 -
Long-term liabilities, current 130,000 -
Long-term liabilities, noncurrent 3,720,000 -
Total liabilities $ 4,501,973 $ 2

NET POSITION
Held in trust for private purposes $ (1,693,460) $ -
Total net position $ (1,693,460) $ (2)
The accompanying notes are an integral part of these financial statements.

City of Gridley
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Private
Purpose Trust Custodial
Funds Funds

ADDITIONS
Property taxes $ 626,225 $ -
Interest Income 6,418 (2)
Total additions 632,643 (2)

DEDUCTIONS
Professional services 38,220 -
Administrative expense 3,912 -
Payments to the City of Gridley - -
Interest and fiscal charges 180,392 -
Total deductions 222,524 -
Change in net position 410,119 (2)
Total net position - beginning (2,103,579) -
Total net position - ending $ (1,693,460) $ (2)
The accompanying notes are an integral part of these financial statements.

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NOTES TO THE BASIC

FINANCIAL STATEMENTS

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Gridley (the "City") is a municipal corporation organized under the constitution and laws of the State of California. The City operates under a Council-Administrator form of government and provides the following services: public safety (police, fire, and animal regulation), street, sanitation, transportation and social services, recreation, public improvements, planning and zoning, water, sewer, electrical, and general administrative services.

The voters of the City give authority and responsibility for operations to the City Council. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City's management is the financial budget, which is adopted annually by the City Council.

The basic financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Financial Reporting Entity
As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The following entities are reported as blended component units:

Gridley Public Financing Authority
The Gridley Public Financing Authority (the "Authority"), established February 4, 2008, is a joint powers authority created by the City of Gridley and the former Gridley Redevelopment Agency. The creation of the Authority is authorized under the MelloRoos Local Bond Pooling Act of 1985, constituting Article 4, Chapter 5, Division 7, Title 1 (commencing with Section 6584) of the California Government Code. The City and the Authority are separate legal entities. For financial reporting purposes, the Authority is reported as a part of the City's operations because the five (5) members of the City Council also act as the governing body of the Authority. The purpose of the Authority is to assist in the financing of public capital improvements. No separate financial statements are issued for the Authority.

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

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City.

Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 for interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, interfund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.

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

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

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

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

The City reports the following funds as major funds:

General Fund
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, parks and recreation services, and economic development services. 08-Home-4987 Fund
The 08-Home-4987 Fund is a special revenue fund used to account for the activities of the U.S.

Department of Housing and Urban Development HOME Investment Partnerships Grant.

Block Grant Fund
The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).

Grant Related Fund
The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).

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

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

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

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

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

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

Electric Fund
The electric fund is used to account for the activities of the City's electric generation and distribution operations.

Water Fund
The water fund is used to account for the activities of the City's water treatment and distribution operations.

Sewer Fund
The sewer fund is used to account for the activities of the City's sewage collection and treatment operations.

Fiduciary Funds
The City reports the following fiduciary funds:

Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency. The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City. The Successor Agency fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.

Custodial Funds
The City administers two custodial funds, the Gridley Bid fund and the Hospital JPA Administration fund.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
C. Cash and Investments
The City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated monthly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of their portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. This amount is included in cash and cash equivalents in the balance sheet of the governmental funds. Changes in fair value are allocated to each participating fund.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
 Market approach - This approach uses prices generated for identical or similar assets or liabilities.

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

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

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and to meet bond indenture debt reserve requirements.

E. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

F. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available.

Loans receivable are recorded in the fund statements, but are recorded as deferred inflows of resources to indicate they do not represent current financial resources. Proprietary fund receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.

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

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

H. Prepaid Expenses and Inventory
Inventories are stated at cost (average cost per unit) for governmental and proprietary funds. The cost is recorded as an expenditure/expense in the funds at the time individual inventory items are consumed, rather than purchased. Inventories of governmental funds are offset by nonspendable fund balance to indicate they do not constitute resources available for future appropriation.

Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
I. Capital Assets
In the government-wide financial statements, infrastructure with an aggregate cost of $25,000 or more and land, buildings, machinery, vehicles, and equipment with a cost of $5,000 or more and a useful life of two years are capitalized. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset.

Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.

Depreciation and amortization is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated or amortized.

The range of estimated useful lives by type of asset is as follows:

Infrastructure and buildings 20 - 50 years
Improvements 10 - 30 years
Equipment and vehicles 3 - 20 years
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.

J. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets 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.

In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
K. Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. Employees may accumulate sick leave without limits. The City's liability for compensated absences is recorded in the government-wide Statement of Net Position for governmental funds and the Statement of Net Position for proprietary funds as appropriate. A liability is calculated for all the costs of compensated absences based upon benefits earned by employees in the current period for which there is a probability of payment at termination.

Accumulated unpaid vacation and sick pay are accrued when earned. In addition, those employees who have reached the age of retirement may cash out sick leave upon retirement. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. In December of each year, management personnel are allowed to convert unused sick leave earned within the previous twelve months, in excess of nine days, to vacation. The general fund and enterprise funds are used to liquidate compensated absences.

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

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

M. 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 (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

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

N. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources, and deferred inflows of resources related to the City’s other postemployment benefits, OPEB expense information of the City’s OPEB plan have been determined based on information provided in an actuarial study. The City recognizes benefit payments when due and payable in accordance with the benefit terms in the fund statements. Generally accepted accounting principles require that the reported results must pertain to

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date July 1, 2023
Measurement Date June 30, 2025
Measurement Period Julye 31, 2024 to June 30, 2025
O. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

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

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

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

Committed
Committed fund balances have constraints imposed by passage of a Resolution of the City Council which may be altered only by Resolution of the City Council. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources. The City considers Resolutions to be the highest level of action that can be taken by Council that constitutes the most binding constraint.

Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council has delegated the authority to make assignments of fund balance to the City Administrator.

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

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

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

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

Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

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

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

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

R. Property Taxes and Special Assessments
The County of Butte levies, bills, and collects property taxes and special assessments for the City.

Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the "alternate method of property tax distribution", known as the Teeter Plan, by the City and the County of Butte. The Teeter Plan authorizes the Auditor/Controller of the County of Butte to allocate 100% of the secured property taxes billed, but not yet paid.

The County of Butte remits tax monies to the City in three installments as follows: 50% remitted in December; 45% remitted in April; 5% remitted in June.

Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.

Property valuations are established by the Assessor of the County of Butte for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied.

The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

S. Budgetary Information
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.

Department heads submit a proposed budget to the City Administrator. The City Administrator submits a proposed budget to the City Council for the following year beginning July 1. The preliminary budget may or may not be amended by the City Council after public hearings are held and is adopted by City Council resolution prior to July 1 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. The City Administrator is authorized to transfer budgeted amounts within an object or purpose within any department. However, the City Council must approve revisions that alter the total expenditures of any department. Budgetary control is legally maintained at the fund level.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.

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

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

This Statement requires that a liability for certain types of compensated absences - including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. The implementation of this standard did not have a material impact on the City’s financial statements.

GASB Statement No. 102, Certain Risk Disclosures
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk.

The implementation of this standard did not have a material impact on the City’s financial statements and management determined there were no were concentrations or constraints that make the City vulnerable to the risk of substantial impact.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
V. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to identify the potential impact on the financial statements of the following GASB Statements:

GASB Statement No. 103, Financial Reporting Model Improvements This Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s discussion and analysis (MD&A) (b) Unusual or infrequent items (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position (d) Information about major component units in basic financial statements (5) Budgetary comparison information (6) Financial trend information in the statistical section. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

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

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

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Cash and investments $ 11,012,131 $ 8,630,806 $ 1,347,485 $ 20,990,422 Restricted cash and investments - - 16,366 16,366
Total cash and investments $ 11,012,131 $ 8,630,806 $ 1,363,851 $ 21,006,788 Government Wide
Statement of Net Position
Fiduciary Funds
Statement of Net
Position
Cash and investments consisted of the following as of June 30, 2025:

Deposits:

Cash on hand $ 1,060
Cash in banks 6,935,755
Total deposits 6,936,815
Investments:

Local Agency Investment Fund 3,330,144
Brokers 10,723,463
Total investments 14,053,607
Restricted cash and investments:

California Asset Management Program (CAMP) 16,366
Total cash and investments $ 21,006,788
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $7,062,510 at June 30, 2025 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $6,812,510, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

C. Investment Policy
Under the terms of certain debt issuances, the City must maintain required amounts of cash and investments with trustees or fiscal agents. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below identifies the investment types that are authorized for investments with fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type.

The table also identifies certain provisions of these debt agreements:

Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds None None None
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 365 days None None
Commercial Paper 270 days None None
Federal Funds 365 days None None
Unsecured Certificates of Deposit 365 days None None
Time Deposits 365 days None None
Cash Sweep Accounts None None None
Money Market Mutual Funds N/A None None
Mortgage-backed securities None None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds 5 years None 10%
U.S. Treasury Obligations 5 years None None
State Obligations - CA And Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper - Select Agencies 270 days 25% 10%
Commercial Paper - Other Agencies 270 days 40% 10%
Negotiable Certificates of Deposit 5 years 30% 30%
CD Placement Service 5 years 30% 30%
Repurchase Agreements 1 year None 10%
Reverse Repurchase Agreements and Securities
Lending Agreements 92 days 20% 10%
Medium-Term Notes 5 years 30% 10%
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through Securities 5 years 20% None
Bank/Time Deposits 5 years None None
County Pooled Investment Funds N/A None None
JPA Pools (other investment pools) N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account Voluntary Investment Program Fund N/A None None
D. External Investment Pool
The City's investments with LAIF at June 30, 2025, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

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

Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
E. Allocation of Interest Income Among Funds
Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated monthly based on the ending cash balances of the previous month in each fund receiving interest.

F. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2025, the City had no investments in any one issuer (other than U.S. Treasury obligations, bonds, and the external investment pools) that represented 5% or more of the total City investments.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

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

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
As of June 30, 2025, the City had the following investments:
12 Months
or Less 1-5 years Fair Value
Concentrations RatingFair Value
Input Levels
Local Agency Investment Fund $ 3,330,144 $ - $ 3,334,135 23.5% n/a n/a Brokers:

Money Market Funds 75,122 - 75,122 0.5% AAA Level 2
Commerical Paper 492,664 - 492,664 3.5% A-1 Level 2
US Treasuries 350,076 3,980,873 4,392,596 31.0% AA+ Level 1 US Agencies - 752,813 758,918 5.4% AA+ Level 1
MBS - 761,514 767,523 5.4% AA+ Level 3
Negotiable CD's - 421,782 421,782 3.0% n/a Level 3
Municipal Bonds 172,789 855,946 1,035,338 7.3% AA- Level 2 Asset-Backed Securities - 1,120,980 1,124,354 7.9% AAA Level 2 Coporate Bonds 124,733 1,614,171 1,758,285 12.4% AA Level 2 Total Investments $ 4,545,528 $ 9,508,079 $ 14,160,717
Maturity
Investment Type
NOTE 3 - LOANS RECEIVABLE
The following is a summary of loans receivable at year end:

Balance Balance
Loans Receivable July 01, 2024 Additions Retirements June 30, 2025 Governmental Funds:

Home Program $ 8,844,420 $ - $ - $ 8,844,420
CDBG Program 2,279,378 67,816 2,211,562
Total Governmental Funds 11,123,798 - 67,816 11,055,982 Fiduciary Funds:

Construction Loan 678,000 - - 678,000
Less: Allowance for Uncollectible Loans (678,000) - - (678,000) Total Loans Receivable $ 11,123,798 $ - $ 67,816 $ 11,055,982 Governmental Funds
The City participates in the Home Investment Partnerships (HOME) program, the Community Development Block Grant (CDBG) Revolving Loan program and the CalHome program. Under these programs, grants or loans are provided under favorable terms to homeowners, developers, or businesses who agree to spend these funds in accordance with the City's terms.

The balance of the loans receivable have been offset in the governmental fund financial statements by deferred inflows of resources as they are not deemed measurable and available within sixty days. In the government-wide financial statements, the loans are not offset in accordance with the accrual basis of accounting.

Fiduciary Funds
The former RDA assisted Gridley Pacific Associates with its acquisition and development of the Washington Court Apartments Affordable Housing Project by providing $678,000 in the form of cash in return for a note bearing simple interest at a rate of 3% per year, secured by a deed of trust on the Project.

The former RDA had several programs under which it extended loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and-moderate income

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
housing. The remaining loan, issued to the Washington Court Apartments, has a forgiveness clause if the developer complies with all the terms of the loan over its full term. The former RDA had provided an allowance of 100% for the note receivable subject to the forgiveness provision of this loan. Per long-term monitoring reviews, all terms have been met by the developer for the loan as of June 30, 2025.

NOTE 4 - LEASES RECEIVABLE
Leases receivable for governmental activities consisted of the following as of June 30, 2025:

Township 18
North, Range 3
East 13.62 Acres
Township 18
North, Range 3
East 12.17 Acres Total
Inception 11/17/2011 12/29/2010
End 11/16/2036 12/28/2035
Interest Rate 1.51% 1.47%
Annual Payment $ 15,000 $ 15,000
Leases Receivable:

Beginning $ 169,714 $ 157,617 $ 327,331
Additions - - -
Deletions (12,520) (12,780) (25,300)
Ending 157,194 144,837 302,031
Deferred Inflows of Resources:

Beginning 166,150 154,531 320,681
Additions - - -
Deletions (13,423) (13,444) (26,867)
Ending 152,727 141,087 293,814
Net Book Value $ 4,467 $ 3,750 $ 8,217
The following summarizes future collections for governmental activities leases receivable:

Year Ending June 30 Principal Interest
2026 $ 25,679 $ 4,321
2027 26,064 3,936
2028 26,449 3,551
2029 26,850 3,150
2030 27,252 2,748
2031-2035 142,500 7,500
2036-2040 27,237 262
Total $ 302,031 $ 25,468

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 5 - INTERFUND TRANSACTIONS
Advances To and From Funds
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years.

Pursuant to Resolution No. 2003.RDA-05, the former Redevelopment Agency agreed to reimburse the City of Gridley for infrastructure improvements within the Agency's industrial park for up to $250,000.

No interest accrues for the amount due to the City.

The Successor Agency agreed to reimburse the City's General Fund for the formation of the RDA in the amount of $176,868. Repayment is made as funds are available. No interest accrues for the amount due to the City.

As of June 30, 2025, advances to the Successor Agency fund consisted of the following:

Advances Advances
to from
Fund Other Funds Other Funds
General Fund $ 76,868 $ -
Block Grant Fund 250,000 -
Successor Agency Private Purpose Trust Fund - 326,868
Total Advances $ 326,868 $ 326,868
Inter-fund Receivables and Payables
As of the end of the fiscal year, balances are owed between funds for temporary pooled cash adjustments and temporary loans.

As of June 30, 2025, inter-fund receivables and payables consisted of the following:

Due from Due to
Fund Other Funds Other Funds
General Fund $ 860,352 $ -
Nonmajor Funds 329,029 1,351,276
Senior Tax Enterprise Fund 490,924 329,029
Total Due From/To $ 1,680,305 $ 1,680,305
Transfers In/Out
With Council approval resources may be transferred from one fund to another. The most significant transfers were from the Electric Fund to the General Fund for unfunded operations and to the Grant Related Fund for carbon credits. Other transfers were made for operations within each respective fund.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
The following summarizes transfers between funds during the fiscal year ended June 30, 2025:

Fund Transfer in Transfer out
General Fund $ 2,230,988 $ 1,139,921
Grant Related Funds 1,790,000 -
Electric Enterprise Fund 399,667 1,799,667
Water Enterprise Fund 1,200,000 -
Nonmajor Governmental Funds 1,574,826 675,893
Total Transfers $ 5,405,481 $ 5,405,481
Intra-Fund Transfers In/Out
The following table represents intra-fund transfers made during the fiscal year ended June 30, 2025:

Fund Transfer in Transfer out
General Fund $ 48,672 $ -
General Fund Reserve Fund - 48,672
Total Transfers $ 48,672 $ 48,672
Intra-fund transfers are eliminated for presentation in the fund financial statements.

NOTE 6 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2025:

Balance Deletions/ Balance
Governmental activities: July 01, 2024 Additions Adjustments 6/30/2025 Non-depreciable:

Land $ 1,150,990 $ - -$ $ 1,150,990
Construction in Progress 673,373 462,508 - 1,135,881
Total Non-Depreciable 1,824,363 462,508 - 2,286,871
Depreciable:

Infrastructure 7,999,087 - - 7,999,087
Buildings and improvements 3,654,840 - - 3,654,840
Improvements other than Buildings 4,827,523 9,709 - 4,837,232 Vehicles and Equipment 6,043,438 1,147,246 - 7,190,684
Total Depreciable 22,524,888 1,156,955 - 23,681,843
Less Accumulated Depreciation for:

Infrastructure (4,582,373) (269,466) - (4,851,839)
Buildings and Improvements (2,783,292) (112,720) - (2,896,012) Improvements other than Buildings (1,608,413) (177,472) - (1,785,885) Vehicles and Equipment (4,614,047) (414,578) - (5,028,625) Total Accumulated Depreciation (13,588,125) (974,236) - (14,562,361) Total Depreciable Capital Assets - Net 8,936,763 182,719 - 9,119,482 Total Capital Assets - Net $ 10,761,126 $ 645,227 -$ $ 11,406,353

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Depreciation expense for governmental activities was charged to the following programs during the year:

General Government $ 103,350
Public Safety 224,182
Streets and Public Works 475,508
Parks and Recreation 171,196
Total depreciation expense $ 974,236
Capital assets for business-type activities consisted of the following as of June 30, 2025:

Balance Balance
Business-Type Activities: July 01, 2024 Additions Transfers June 30, 2025 Non-depreciable:

Land $ 921,793 $ - $ - $ 921,793
Construction in Progress 941,151 26,037 (151,333) 815,855 Total Non-Depreciable 1,862,944 26,037 (151,333) 1,737,648 Depreciable:

Infrastructure 6,340,384 1,175,365 151,333 7,667,082
Buildings and Improvements 1,139,545 - - 1,139,545
Improvements other than Buildings 10,161,530 26,141 - 10,187,671 Right of Use Assets 3,722 - 3,722
Vehicles and Equipment 9,488,223 156,566 - 9,644,789
Total Depreciable 27,133,404 1,358,072 151,333 28,642,809 Less Accumulated Depreciation for:

Infrastructure (3,039,310) (188,599) - (3,227,909)
Buildings and Improvements (973,153) (16,797) - (989,950) Improvements other than Buildings (5,232,091) (441,777) - (5,673,868) Right of Use Assets (3,722) - - (3,722)
Vehicles and Equipment (6,719,063) (351,180) - (7,070,243) Total Accumulated Depreciation (15,967,339) (998,353) - (16,965,692) Total Depreciable Capital Assets - Net 11,166,065 359,719 151,333 11,677,117 Total Capital Assets - Net $ 13,029,009 $ 385,756 $ - $ 13,414,765 Depreciation expense for business-type activities was charged to the following programs during the year:

Electricity 290,759
Water 173,787
Sewer 533,807
Total depreciation expense $ 998,353

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 7 - NONCURRENT LIABILITIES
Noncurrent liabilities consisted of the following as of June 30, 2025:

Balance Balance Due Within
Description July 01, 2024 Additions Retirements June 30, 2025 One Year Governmental Activiies
Net Pension Liability $ 8,486,091 $ 5,941,522 $ 6,114,739 $ 8,312,874 $ - Total OPEB Liability 1,878,637 189,271 188,808 1,879,100 - Compensated Absences 447,601 127,002 209,731 364,872 224,731 Total Governmental Activities Debt $ 10,812,329 $ 6,257,795 $ 6,513,278 $ 10,556,846 $ 224,731 Business-Type Activities
Direct Borrowing:

USDA Rural Development Loan (2001) $ 865,000 $ - $ 39,000 $ 826,000 $ 40,000 USDA Rural Development Loan (2009) 2,074,000 - 58,000 2,016,000 59,000 Lease Liability - - - - -
Net Pension Liability 6,147,330 3,044,100 3,100,466 6,090,964 - Total OPEB Liability 1,417,217 143,704 134,234 1,426,687 - Compensated Absences 254,261 19,475 39,198 234,538 135,805 Total Business-type Activities Debt $ 10,757,808 $ 3,207,279 $ 3,370,898 $ 10,594,189 $ 234,805 Fiduciary Funds - Successor Agency:

Tax allocation bonds, Series 2022A $ 2,325,000 $ - $ 65,000 $ 2,260,000 $ 70,000 Tax allocation bonds, Series 2022B 1,645,000 - 55,000 1,590,000 60,000 Total Long-term liabilities $ 3,970,000 $ - $ 120,000 $ 3,850,000 $ 130,000 Business-Type Activities - USDA Rural Development Loans On February 12, 2001, the City executed a long-term loan agreement with the United States Department of Agriculture (USDA) Rural Development to repay the interim sewer project financing provided by U.S.

Bank. The interim financing repayment total consisted of $1,478,141 in principal and $9,529 in accrued interest. Interest on the new loan, at the rate of 3.25%, is payable semiannually. Annual principal payments, ranging from $18,670 to $65,000, are also required. This loan will be completely repaid on September 1, 2040 and is secured by the revenues of the City's sewer fund.

On April 15, 2009, the City entered into a loan/grant agreement with USDA Rural Development for the rehabilitation and upgrade of the City's existing wastewater treatment plant. The agreement consists of a loan of $3,100,000 with a subsequent grant of $1,000,000. Interest, at the rate of 2.5%, is payable annually. This loan will be completely repaid on April 1, 2050.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Future debt service payments for the USDA Rural Development Loans are as follows:

Year Ending June 30 Principal Interest Total
2026 $ 99,000 $ 76,595 $ 175,595
2027 102,000 73,804 175,804
2028 105,000 70,914 175,914
2029 108,000 67,950 175,950
2030 111,000 64,887 175,887
2031-2035 604,000 275,478 879,478
2036-2040 695,000 184,806 879,806
2041-2045 516,000 98,181 614,181
2046-2050 502,000 37,925 539,925
Total $ 2,842,000 $ 950,540 $ 3,792,540
Business-Type Activities
Successor Agency - Tax Allocation Bonds
In 2002, the former RDA issued $4,750,000 of Tax Allocation Bonds, Series 2008A (Taxable) and Series 2008B (Tax Exempt). A total of $2,980,000 of Series 2008A bonds were issued and $1,770,000 of Series 2008B bonds. The proceeds of the Series 2008A bonds issued were used to repay a significant portion of the loans from the City of Gridley to the Agency. These bonds were refunded in fiscal year 2022 with the issuance of $2,390,000 in Tax Allocation Bonds, Series 2022A and $1,700,000 in Tax Allocation Bonds, Series 2022B.

The Series 2022A bonds bear annual interest at 5.26% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $65,000 to $185,000. The Series 2022B bonds bear annual interest at

3.84% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $55,000 to $115,000.

The Successor Agency recognized $163,968 as a deferred loss on the early defeasance of debt which will be amortized through fiscal year 2043. The Successor Agency realized savings of $1,105,328, which was the aggregate difference of the total debt service between the refunded debt of $7,579,125 and refunding debt of $6,473,797. Future debt service payments for the tax allocation bonds are as follows:

Year Ending June 30 Principal Interest Total
2026 $ 130,000 $ 176,939 $ 306,939
2027 135,000 170,822 305,822
2028 145,000 164,345 309,345
2029 150,000 157,510 307,510
2030 155,000 150,411 305,411
2031-2035 890,000 634,814 1,524,814
2036-2040 1,130,000 399,914 1,529,914
2041-2045 1,115,000 108,245 1,223,245
Total $ 3,850,000 $ 1,963,000 $ 5,813,000

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 8 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

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

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

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

Tier I Tier II PEPRA Tier I PEPRA
Benefit formula 2% @ 55 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57 Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 55 62 50 57
Monthly benefits as a
% of eligible compensation 2.00% 2.00% 2.00% 3.00% 2.00% Required employee contribution rates 7.00% 7.00% 7.75% 9.00% 13.75% Required employer contribution rates 12.58% 11.94% 7.96% 26.91% 13.99% Miscellaneous Safety

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Employees Covered
At June 30, 2025, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety Total
Active 32 14 46
Transferred 15 14 29
Separated 19 8 27
Retired 56 39 95
Total 122 75 197
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2025, the City’s contributions were as follows:

Employer
Contributions
Miscellaneous $ 1,507,564
Safety 774,557
Total Employer Contributions $ 2,282,121
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liabilities as follows:

Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 8,713,703
5,690,135
$ 14,403,838
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2024, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2024 and 2024 was as follows:

Miscellaneous Safety Combined Plans
Proportion - June 30, 2024 0.17581% 0.07815% 0.11730%
Proportion - June 30, 2025 0.18016% 0.07805% 0.11877%
Change - Increase/(Decrease) 0.00435% -0.00011% 0.00147% For the year ended June 30, 2025, the City recognized pension expense of $1,638,062.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 364,153 $ -
Differences between Expected and Actual Experience 1,217,745 44,495 Differences between Projected and Actual Investment Earnings 776,672 - Differences between Employer's Contributions and
Proportionate Share of Contributions 568,235 38,114
Change in Employer's Proportion 12,824 681,590
Pension Contributions Made Subsequent to Measurement Date 2,282,121 - Total $ 5,221,750 $ 764,199
Misc. and Safety
The City reported $2,282,121 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
$ 231,603 $ 360,740 $ 592,342
1,143,704 676,330 1,820,034
21,951 7,115 29,065
(171,905) (94,105) (266,010)
$ 1,225,353 $ 950,080 $ 2,175,431
2026
Total
2027
2028
2029
Deferred Outflows/(Inflows) of
Fiscal Year Ending Resources
June 30:

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

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

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.8% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.9% discount rate is adequate and the use of the municipal bond rate calculation is not necessary.

The long-term expected discount rate of 6.9% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

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

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $ 12,079,099 8,384,381
Current 6.90% 6.90%
Net Pension Liability $ 8,713,703 5,690,135
1% Increase 7.90% 7.90%
Net Pension Liability $ 5,943,486 3,486,621
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The City sponsors and administers a single-employer health care plan for its employees. The plan provides medical, dental, and vision coverage. Medical coverage is provided through CalPERS under the

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. The City sets its contribution rates for health insurance on behalf of active employees according to the PEMHCA statutory minimum. The amounts are indexed (increased) in all future years according to the rate of medical inflation. The excess of the designated City contribution for healthcare (the second highest premium available in the 95948 zip code area) over the PEMHCA statutory minimum is contributed to a Cafeteria Plan and the employee may elect to have some or all of this excess contributed on his or her behalf to CalPERS as an "employee contribution" towards healthcare benefits. As the City 's OPEB benefits are administered by City personnel, no separate financial statements are issued.

Management employees are subject to PERS' "100/90 State Contribution Formula" under which the City's contribution is determined based upon the weighted average of the four most popular medical plan options under PEMHCA, as announced each year by CalPERS. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverage's offered under PEMHCA. Management employees hired on or before December 31, 2012 are eligible for benefits upon retirement at age 50 with 10 years of service. The City's contribution on behalf of Management hired on or before December 31, 2012 retirees, is based on the ‘PERS’ "Unequal Contribution Method" and equals 5% of the statutory minimum multiplied by the number of years the City has participated in PEMHCA.

Employees Covered by Benefit Terms
At June 30, 2025, the benefit terms covered the following employees:

Active employees 3
Inactive employees 8
Total employees 11
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Valuation Date:

Measurement Date:

Actuarial Cost Method:

Amortization Period:

Actuarial Assumptions:

Discount Rate
Inflation
Payroll Increases
Trend Rate
Municipal Bond Rate
Mortality

3.93%

3.93%

4.54%
Entry-Age Normal Cost Method
Pub-2010 General Employees HeadcountWeighted Mortality fully generational using Scale MP-2021, and Pub-2010 General
Retirees Headcount-Weighted Mortality fully
generational using Scale MP-2021.

July 1, 2023
June 30, 2025
30 years

3.10%

3.50%

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Contributions
The City's policy is to fully fund the annual required contribution, which is determined by an actuary. The City makes the contributions on behalf of the participants. For the fiscal year ended June 30, 2025, the City paid contributions of $155,769. There have been no assets accumulated in a trust to provide for the benefits of this plan.

Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 2025 (measurement date) and was determined by an actuarial valuation as of July 1, 2023 (valuation date) for the fiscal year ended June 30, 2025 (reporting date).

Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year ended June 30, 2025:

Fiscal Year Ended June 30, 2025
Total OPEB
Liability
Beginning $ 3,295,854
Service cost 37,752
Interest in Total OPEB Liability 127,950
Benefit payments (155,769)
Net changes 9,933
Ending $ 3,305,787
The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Deferred Inflows and Outflows of Resources
At June 30, 2025, there were no deferred outflows of resources and deferred inflows of resources related to OPEB to report.

OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2025:

Service cost $ 37,752
Interest on total OPEB liability 127,950
Difference between actual and expected experience (312,974) Change in assumptions (20,001)
OPEB Expense $ (167,273)

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
The following summarizes changes in the Total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2025:
$ 3,305,787
(3,295,854)
9,933
Changes in deferred inflows (332,975)
Employer contributions and implicit subsidy 155,769
OPEB Expense $ (167,273)
Net OPEB liability ending
Net OPEB liability beginning
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate
The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, was as follows:
(1% Decrease ) 3.54% (1% Increase )
Net OPEB Liability (Asset) $ 3,746,200 $ 3,305,787 $ 2,940,843 Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, was as follows:
(1% Decrease ) 7.00% (1% Increase )
Net OPEB Liability (Asset) $ 2,876,051 $ 3,305,787 $ 3,827,277 Trend Rate

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
NOTE 10 - DEFICIT FUND BALANCE AND NET POSITION
The City reported the following funds with deficit fund balance and net position as of June 30, 2025:

Deficit Deficit
Fund Net
Balance Position
M, Vierra Park Fund $ 80 $ -
SB 325 TDA Fund 157,291 -
Traffic Safety Fund 21,136 -
Railroad Maintenance Fund 35 -
Planning and Development Fund 183,545 -
Recreation Related Fund 191,739 -
2021 Vierra Park Improvements Fund 51,381 -
Home Fund 7,902 -
Gridley Sports Complex Fund 288,698 -
Senior Taxi Fund - 16,051
Totals $ 901,807 $ 16,051
The fund deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues and interfund transfers.

NOTE 11 - RISK MANAGEMENT
The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article 1, Chapter 5, Division 7, Title 1 of the California Government Fund Programs. 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 NCCSIF provides claims processing, administrative services, risk management services, and actuarial studies. A member from each city governs the NCCSIF. The City Council members do not have significant oversight responsibility since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF 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 equity balance. The audited financial statements of the JPA are available at the NCCSIF's office.

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. The City provides property, liability, and workers compensation insurance through Northern California Cities Self Insurance Fund a public entity risk pool currently operating as a common risk management and insurance program for several Northern California municipalities. Annual deposits are paid by member cities and are adjusted retrospectively to cover costs.

The NCCSIF 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

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
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. The City does not have any material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years. The City's insurance coverage and the respective coverage providers are as follows:

Amount Coverage Provider Payment
General Liability
$0 - $50,000 Self-insured Banking layer
$50,001 - $450,000 Northern California Cities Self
Insurance Fund
Shared risk
$450,001 - $40,000,000 California Joint Powers Risk
Management Authority
Shared risk (to $5 mil, excess
insurance after that)
Workers' Compensation
$0 - $100,000 Self-insured Banking layer
$100,001 -$400,000 Northern California Cities Self
Insurance Fund
Shared risk
$400,001 - statutory CSAC-EIA Shared risk and Excess Insurance Property insurance
The City's standard deductible is $5,000 for coverage. The coverage limit for fiscal year 2025 was $1,000,000,000 blanket real and personal property.

Performance and Public Employee Dishonesty Bonds
The City has $25,000 in performance bond coverage for the City Clerk, $100,000 performance bond coverage for the City Treasurer, and $3,000,000 in coverage for public employee dishonesty with a deductible of $5,000.

NOTE 12 - RELATED ORGANIZATIONS
The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. The City does not have sufficient authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations. The names and general functions of these joint powers are as follows:

Northern California Power Agency (NCPA)
Membership consists of 12 municipal electric utilities, one Rural Electric Cooperative, an irrigation district, and a public utility district. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of NCPA on an elective basis. A Commission comprised of one representative for each member governs the NCPA.

The City is currently involved in several hydroelectric, geothermal, and other energy-related projects as a member of this agency. The NCPA is financed by contributions from member cities, government grants, and debt. The City is committed to providing substantial additional financial support for its portion of the actions and projects of the NCPA.

City of Gridley
Notes to the Basic Financial Statements
June 30, 2025
The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. The NCPA requires agency members to maintain at least 90% of the annual general operating reserve. The City has maintained the required reserve amount during the fiscal year ending 2025. Due to the nature of the reserve held by NCPA, payments made to the reserve are expensed as purchased power. The financial statements are available online at www.ncpa.com.

Transmission Agency of Northern California (TANC)
Members include eleven cities, one electric co-op, two irrigation districts, and one public utility district.

The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to 1% of the total expenditures. The financial statements are available online at http://tanc.us/financials.html.

NOTE 13 - COMMITMENTS AND CONTINGENCIES
Lawsuits
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants, if required, by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Deferred Compensation
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all full-time City employees, permits employees to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The assets and liabilities of these plans have been excluded from the accompanying financial statements. The City does not administer the plan.

REQUIRED SUPPLEMENTARY INFORMATION

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City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments $ 4,116,880 $ 4,116,880 $ 3,237,217 $ (879,663) Licenses, permits and fees 88,518 88,518 62,700 (25,818) Fines and forfeitures 4,143 4,143 3,287 (856)
Intergovernmental 274,149 274,149 431,973 157,824
Charges for services 35,491 35,491 61,078 25,587
Use of money and property 28,657 28,657 181,391 152,734 Other revenue 177,275 177,275 145,718 (31,557)
Total Revenues 4,725,113 4,725,113 4,123,364 (601,749)

EXPENDITURES
Current:

General government 1,140,026 1,140,026 122,223 1,017,803 Public safety 5,505,313 5,505,313 6,094,226 (588,913)
Streets and public works 475,798 475,798 368,507 107,291 Community development 39,650 39,650 95,174 (55,524)
Parks and recreation 150,374 150,374 195,253 (44,879)
Capital outlay 201,000 201,000 10,515 190,485
Total Expenditures 7,512,161 7,512,161 6,885,898 626,263 Excess (Deficiency) of Revenues over Expenditures (2,787,048) (2,787,048) (2,762,534) 24,514

OTHER FINANCING SOURCES (USES)
Transfers in 1,990,000 1,990,000 2,230,988 240,988
Transfers out - - (1,139,921) (1,139,921)
Total Other Financing Sources (Uses) 1,990,000 1,990,000 1,091,067 (898,933) Net Change in Fund Balance (797,048) (797,048) (1,671,467) (874,419) Fund Balance Beginning 8,010,418 8,010,418 8,010,418 -
Fund Balance Ending $ 7,213,370 $ 7,213,370 $ 6,338,951 $ (874,419)

City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
08-Home-4987 Grant Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - $ - $ 117 $ 117
Total Revenues - - 117 117

EXPENDITURES
Total Expenditures - - - -
Net Change in Fund Balance - - 117 117
Fund Balance Beginning 3,885 3,885 3,885 -
Fund Balance Ending $ 3,885 $ 3,885 $ 4,002 $ 117

City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Block Grant Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - $ - $ 12,085 $ 12,085
Program income 8,145 8,145 90,858 82,713
Use of money and property - - 13,118 13,118
Total Revenues 8,145 8,145 116,061 107,916

EXPENDITURES
Current:

Community development 7,679 7,679 8,103 (424)
Total Expenditures 7,679 7,679 8,103 (424)
Net Change in Fund Balance 466 466 107,958 107,492
Fund Balance Beginning 616,998 616,998 616,998 -
Fund Balance Ending $ 617,464 $ 617,464 $ 724,956 $ 107,492

City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Grant Related Funds
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 748,583 $ 748,583 $ 1,772,067 $ 1,023,484 Use of money and property - - 3,176 3,176
Total Revenues 748,583 748,583 1,775,243 1,026,660

EXPENDITURES
Current:

General government - - 6,884 (6,884)
Community development - - 4,301 (4,301)
Parks and recreation 17,494 17,494 43,541 (26,047)
Capital outlay 345,000 345,000 649,509 (304,509)
Total Expenditures 362,494 362,494 704,235 (341,741)
Excess (Deficiency) of Revenues over Expenditures 386,089 386,089 1,071,008 684,919

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (1,790,000) (1,790,000) (1,790,000) -
Total Other Financing Sources (Uses) (1,790,000) (1,790,000) (1,790,000) - Net Change in Fund Balance (1,403,911) (1,403,911) (718,992) 684,919 Fund Balance Beginning 2,090,300 2,090,300 2,090,300 -
Prior Period Adjustments - Cash Allocations - - - -
Fund Balance Beginning, as Adjusted 2,090,300 2,090,300 2,090,300 - Fund Balance Ending $ 686,389 $ 686,389 $ 1,371,308 $ 684,919

City of Gridley
Notes to Required Supplementary Information
Budgetary Accounting and Control
June 30, 2025
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.

Department heads submit a proposed budget to the City Administrator. The City Administrator submits a proposed budget to the City Council for the following year beginning July 1. The preliminary budget may or may not be amended by the City Council after public hearings are held and is adopted by City Council resolution prior to July 1 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. The City Administrator is authorized to transfer budgeted amounts within an object or purpose within any department. However, the City Council must approve revisions that alter the total expenditures of any department. Budgetary control is legally maintained at the fund level.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.

City of Gridley
Schedule of Pension Contributions
June 30, 2025
(Last Ten Years)
Miscellaneous & Safety Plan
Fiscal Year Ended 2016 2017 2018 2019 2020
Contractually Required Contributions $ 795,514 $ 866,010 $ 947,355 $ 1,023,639 $ 1,128,141 Contributions in Relation to
Contractually Required Contributions 795,514 866,010 947,355 1,023,639 1,128,141 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 3,099,247 $ 3,275,057 $ 3,384,871 $ 2,642,537 $ 2,891,883 Contributions as a % of Covered Payroll 25.67% 26.44% 27.99% 38.74% 39.01% Miscellaneous & Safety Plan
Fiscal Year Ended 2021 2022 2023 2024 2025
Contractually Required Contributions $ 1,293,223 $ 1,420,621 $ 1,570,250 $ 1,622,852 $ 2,282,121 Contributions in Relation to
Contractually Required Contributions 1,293,223 1,420,621 1,570,250 1,622,852 2,282,121 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 3,233,815 $ 3,508,606 $ 3,790,865 $ 3,904,591 $ 4,021,729 Contributions as a % of Covered Payroll 39.99% 40.49% 41.42% 41.56% 56.74% Notes to Schedule:

Valuation Date: June 30, 2023
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 26 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2022.

The CalPERS mortality assumptions was adjusted in fiscal year 2021.

The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

City of Gridley
Schedule of Proportionate Share of Net Pension Liability June 30, 2025
(Last Ten Years)
Miscellaneous and Safety Plan
Plan Measurement Date 2015 2016 2017 2018 2019
Fiscal Year Ended 2016 2017 2018 2019 2020
Proportion of Net Pension
Liability (Safety and Misc) 0.12003% 0.10006% 0.11218% 0.11472% 0.11475% Proportionate Share of
Net Pension Liability $ 8,238,421 $ 8,658,560 $ 11,125,054 $ 11,054,726 $ 11,758,898 Covered Payroll $ 3,118,121 $ 3,099,247 $ 3,275,057 $ 3,384,871 $ 2,642,537 Proportionate Share of NPL
as a % of Covered Payroll 264.21% 279.38% 339.69% 326.59% 444.99% Plan's Fiduciary Net Position
as a % of the TPL 71.32% 68.94% 67.62% 68.40% 67.37%
Miscellaneous and Safety Plan
Plan Measurement Date 2020 2021 2022 2023 2024
Fiscal Year Ended 2021 2022 2023 2024 2025
Proportion of Net Pension
Liability (Safety and Misc) 0.11487% 0.16458% 0.12088% 0.11730% 0.11877% Proportionate Share of
Net Pension Liability $ 12,498,264 $ 8,900,835 $ 13,962,591 $ 14,633,421 $ 14,403,838 Covered Payroll $ 2,891,883 $ 3,233,815 $ 3,508,606 $ 3,790,865 $ 3,904,591 Proportionate Share of NPL
as a % of Covered Payroll 432.18% 275.24% 397.95% 386.02% 368.89% Plan's Fiduciary Net Position
as a % of the TPL 65.78% 76.73% 66.11% 65.62% 67.75%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2022.

The CalPERS mortality assumptions was adjusted in fiscal year 2021.

City of Gridley
Schedule of Changes in Total OPEB Liability
June 30, 2025
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021 2022 2023 2024 2025 Total OPEB liability
Service cost $ 12,401 $ 12,650 $ 171,325 $ 165,106 $ 21,603 $ 22,368 $ 36,324 $ 37,752 Interest 158,069 159,756 206,796 211,318 139,337 138,281 127,463 127,950 Diff. between expected/actual exper. 21,513 16,042 2,401,492 - (3,239,275) - (656,901) - Changes of assumptions - - 2,456,638 - (2,618,711) - (41,981) - Actuarial adjustments - - - 74,743 (165,484) - - -
Benefit payments (148,050) (141,637) (161,908) (84,534) (166,240) (172,125) (149,879) (155,769) Net change in Total OPEB Liability 43,933 46,811 5,074,343 366,633 (6,028,770) (11,476) (684,974) 9,933 Total OPEB Liability - beginning 4,489,354 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 3,295,854 Total OPEB Liability - ending 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 3,295,854 3,305,787 Plan fiduciary net position as a %
of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll $ 2,726,110 $ 2,780,632 $ 826,218 $ 842,742 $ 258,224 $ 265,971 $ 497,425 $ 514,835 TOL as a % of covered employee payroll 166.29% 164.71% 1168.51% 1189.10% 1546.06% 1496.72% 662.58% 642.11% Other Notes
Mortality assumption changed from SOA RP-2014 Total Dataset Mortality with Scale MP-2019 (Base Rate 2006) to Pub-2010 General Employees Headcount-Weighted Mortality fully generational using Scale MP-2021, and Pub-2010 General Retirees Headcount-Weighted Mortality fully generational using Scale MP-2021.

Payroll growth increased from 3% to 3.5%.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

Discount rates changed from 3.58% to 2.21% in FY2020, to 3.54% in FY2022. and then to 3.93% in FY2024.

SUPPLEMENTARY INFORMATION

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NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
FEMA Reserve
This fund is used to account for the FEMA lease revenue.

General Impact Fee
The source of funding is a portion of the impact fees on new developments calculated in the City Fee Schedule. This fund is used for the CIP project per council approval.

Development Agreement Fee
The source of revenue is a portion of the impact fees on new developments calculated in a City fee schedule. The funds will be appropriated for CIP projects upon council approval.

M. Vierra Park
This fund is used to account for the grant funding for the development of M. Vierra Park.

SB 1 RMRA
This fund is used to account for receipts and expenditures of gas tax funds for road repair and maintenance under the California rehab program.

SB 325 TDA
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.

Traffic Safety
This fund is used to account for receipts of motor vehicle fines and forfeitures expended for traffic projects.

Railroad Maintenance
This fund is used to account for expenses related to repairs for the railroad and intersecting streets.

Public Safety Augmentation
This fund is used to account for receipts and expenditure related to safety expenses.

Planning and Development
This fund is used to account for the City's participation in the Community Development Block Grant programs, which provides loans to rehab low income housing and First Time home buyers (generally low income).

Solid Waste Recreation
This fund is used for purchasing beverage trash containers located throughout the City right-of-way and public parks.

Gas Tax
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.

NONMAJOR GOVERNMENTAL FUNDS
Butte Interagency Narcotics Task Force (BINTF)
This fund is used to account for the contribution of funds and service to BINTF.

Maintenance Districts
The funds are used to account for the receipts and expenditures of four districts within the City limit. The assessment of districts is the source of funding.

CDBG Housing Rehab/Drainage Grant
This fund is used to account for revenues and expenditures related to the Community Development Block Grant for housing rehabilitation and drainage.

Cal Home
This fund is used to account for Cal Home grant revenues and expenditures.

Police Explorer
The fund is used to pay the expenditures related to youth programs. Donations and fund raising are the sources of funding.

K-9 - Donations & Expenses
The fund is used to account for City donations and expenses.

Recreation Related
The fund is used to pay the expenditures related to recreational activities funded through the annual budget.
2021 Vierra Park Improvements
This fund is used to account for resources expended on Vierra Park improvements.

Home
This fund is used to account for Home program revenues and expenditures.

Gridley Sports Complex Fund
The fund is used to account for revenue and proceeds used to pay for capital improvement expenditures for the City’s sports complex.

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund
ASSETS
Cash and investments $ 491,904 $ 1,540,868 $ 12,571 $ - Accounts receivable - - - -
Interest receivable 964 3,046 25 (80)
Taxes receivable - - - -
Due from other funds - - - -
Total assets $ 492,868 $ 1,543,914 $ 12,596 $ (80)

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ - $ 13,943 $ - $ -
Deposits payable - - - -
Due to other funds - - - -
Total liabilities - 13,943 - -
Fund Balances:

Restricted:

Redevelopment - 1,529,971 12,596 -
Grants 492,868 - - -
Taxes and fees - - - -
Capital projects - - - -
Community development - - - -
Other - - - -
Unassigned - - - (80)
Total fund balances 492,868 1,529,971 12,596 (80)
Total liabilities, deferred inflows of
resources and fund balances $ 492,868 $ 1,543,914 $ 12,596 $ (80) Cont'd
Special Revenue Funds

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 409,165 $ 5,016 $ 31,039 $ -
- - 1,927 -
1,859 - - (35)
- - - -
- 329,029 - -
$ 411,024 $ 334,045 $ 32,966 $ (35)
$ - $ 412 $ - $ -
- - - -
- 490,924 54,102 -
- 491,336 54,102 -
- - - -
- - - -
411,024 - - -
- - - -
- - - -
- - - -
- (157,291) (21,136) (35)
411,024 (157,291) (21,136) (35)
$ 411,024 $ 334,045 $ 32,966 $ (35)
Cont'd
Special Revenue Funds

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
$ 258,381 $ - $ - $ 4,285 $ 4,446
- - - - -
452 - - 3 -
2,462 - - - -
- - - - -
$ 261,295 $ - $ - $ 4,288 $ 4,446
$ - $ 3,245 $ - $ 929 $ -
- - - - -
- 180,300 - - -
- 183,545 - 929 -
- - - - -
- - - - -
261,295 - - - 4,446
- - - 3,359 -
- - - - -
- - - - -
- (183,545) - - -
261,295 (183,545) - 3,359 4,446
$ 261,295 $ - $ - $ 4,288 $ 4,446
Cont'd
Special Revenue Funds

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
K-9
Maintenance Police Donations
Districts Cal Home Explorer & Expense
Fund Fund Fund Fund
$ 156,358 $ - $ 38,529 $ - $ 1,692
- - - - -
189 - - - 3
3,336 - - - -
- - - - -
$ 159,883 $ - $ 38,529 $ - $ 1,695
$ 194 $ - $ - $ - $ -
- - - - -
18,106 - - - -
18,300 - - - -
141,583 - - - -
- - - - -
- - - - -
- - - - -
- - 38,529 - -
- - - - 1,695
- - - - -
141,583 - 38,529 - 1,695
$ 159,883 $ - $ 38,529 $ - $ 1,695
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds

City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Taxes receivable
Due from other funds
Total assets

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted:

Redevelopment
Grants
Taxes and fees
Capital projects
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
2021 Vierra Gridley Total
Recreation Park Sports Nonmajor
Related Improvements Home Complex Governmental
Fund Fund Fund Fund Funds
$ 1,102 $ 739 $ 89,004 $ - $ 3,045,099
- - 175 - 2,102
(116) - - - 6,310
- - - - 5,798
- - - - 329,029
$ 986 $ 739 $ 89,179 $ - $ 3,388,338
$ 1,676 $ - $ - $ 20,729 $ 41,128
375 - - - 375
190,674 52,120 97,081 267,969 1,351,276
192,725 52,120 97,081 288,698 1,392,779
- - - - 1,684,150
- - - - 492,868
- - - - 676,765
- - - - 3,359
- - - - 38,529
- - - - 1,695
(191,739) (51,381) (7,902) (288,698) (901,807)
(191,739) (51,381) (7,902) (288,698) 1,995,559
$ 986 $ 739 $ 89,179 $ - $ 3,388,338
Concluded
Special Revenue Funds

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund

REVENUES
Taxes and assessments $ - $ - $ - $ -
Licenses, permits and fees - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Charges for services - 331,708 - -
Use of money and property 14,370 46,525 368 (80)
Other revenue - - - -
Total Revenues 14,370 378,233 368 (80)

EXPENDITURES
Current:

Streets and public works - - - -
Community development - - - -
Parks and recreation - - - -
Capital outlay - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 14,370 378,233 368 (80)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 14,370 378,233 368 (80)
Fund Balances Beginning 478,498 1,151,738 12,228 -
Prior Period Restatements - - - -
Fund Balances Beginning, as Adjusted 478,498 1,151,738 12,228 - Fund Balances Ending $ 492,868 $ 1,529,971 $ 12,596 $ (80) Cont'd
Special Revenue Funds

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Restatements
Fund Balances Beginning, as Adjusted
Fund Balances Ending
SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 198,637 $ 69,581 $ - $ -
- - - -
- - 23,117 -
- - - -
- - - -
27,919 (29) (102) (35)
- - - -
226,556 69,552 23,015 (35)
- 93,421 - -
- - - -
- - - -
- - - -
- 93,421 - -
226,556 (23,869) 23,015 (35)
- 401,927 - -
(675,893) - - -
(675,893) 401,927 - -
(449,337) 378,058 23,015 (35)
860,361 (535,349) (44,151) -
- - - -
860,361 (535,349) (44,151) -
$ 411,024 $ (157,291) $ (21,136) $ (35)
Cont'd
Special Revenue Funds

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Restatements
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
-$ -$ -$ 189,034 $ -$
- 4,378 - - -
- - - - -
32,698 - - 102,489 -
- - - - -
6,797 - - (922) (30)
- 37,286 - 3,721 55
39,495 41,664 - 294,322 25
- - - 430,313 -
- 224,517 - - -
- - - - -
- - - - -
- 224,517 - 430,313 -
39,495 (182,853) - (135,991) 25
- - - 1,172,899 -
- - - - -
- - - 1,172,899 -
39,495 (182,853) - 1,036,908 25
221,800 (692) - (1,033,549) 4,421
- - - - -
221,800 (692) - (1,033,549) 4,421
$ 261,295 $ (183,545) -$ $ 3,359 $ 4,446
Cont'd
Special Revenue Funds

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Restatements
Fund Balances Beginning, as Adjusted
Fund Balances Ending
K-9
Maintenance Police Donations
Districts Cal Home Explorer & Expense
Fund Fund Fund Fund
$ 133,244 -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - -
2,776 - - - (15)
- - - - -
136,020 - - - (15)
43,228 - - - -
- - - - -
- - - - -
- - - - -
43,228 - - - -
92,792 - - - (15)
- - - - -
- - - - -
- - - - -
92,792 - - - (15)
48,791 - 38,529 - 1,710
- - - - -
48,791 - 38,529 - 1,710
$ 141,583 -$ $ 38,529 -$ $ 1,695
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues

EXPENDITURES
Current:

Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Restatements
Fund Balances Beginning, as Adjusted
Fund Balances Ending
2021 Vierra Gridley Total
Recreation Park Sports Nonmajor
Related Improvements Home Complex Governmental
Fund Fund Fund Fund Funds
$ - $ - $ - $ - $ 590,496
12,326 - - - 16,704
- - - - 23,117
- - - 240,722 375,909
- - - - 331,708
(85) (165) 2,313 - 99,605
41,771 - - - 82,833
54,012 (165) 2,313 240,722 1,520,372
- - - - 566,962
- - - 95,803 320,320
258,229 - - - 258,229
- - - 363,552 363,552
258,229 - - 459,355 1,509,063
(204,217) (165) 2,313 (218,633) 11,309
- - - 1,574,826 -
- - - - (675,893)
- - - - 898,933
(204,217) (165) 2,313 (218,633) 910,242
6,793 (51,216) (10,215) (70,065) 1,079,632
5,685 - - - 5,685
12,478 (51,216) (10,215) (70,065) 1,085,317
$ (191,739) $ (51,381) $ (7,902) $ (288,698) $ 1,995,559 Concluded
Special Revenue Funds

NONMAJOR ENTERPRISE FUNDS
The Drainage Fund is used to account for the activities of the City's drainage operations.

The Solid Waste Fund is used to account for the activities of the City's solid waste operations.

The Senior Taxi Fund is used to account for the activities of the City's senior taxi operations.

City of Gridley
Combining Statement of Net Position
Proprietary Funds
June 30, 2025
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments $ - $ - $ 152,617 $ 152,617
Due from other governments - - 963 963
Interest receivable - - 35 35
Due from other funds - - 490,924 490,924
Total assets $ - $ - $ 644,539 $ 644,539

DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 168,255 $ 168,255
Total deferred outflows of resources $ - $ - $ 168,255 $ 168,255

LIABILITIES
Current liabilities:

Accounts payable $ - $ - $ 6,152 $ 6,152
Interest payable 9 3 - 12
Due to other funds - - 329,029 329,029
Compensated absences, current - - 7,679 7,679
Total current liabilities 9 3 342,860 342,872
Noncurrent liabilities:

Net pension liability - - 437,776 437,776
Compensated absences, noncurrent - - 17,256 17,256
Total noncurrent liabilities - - 455,032 455,032
Total liabilities $ 9 $ 3 $ 797,892 $ 797,904

DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 30,953 $ 30,953
Total deferred inflows of resources $ - $ - $ 30,953 $ 30,953

NET POSITION
Unrestricted $ (9) $ (3) $ (16,051) $ (16,063)
Total net position $ (9) $ (3) $ (16,051) $ (16,063)
The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

City of Gridley
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2025
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total

OPERATING REVENUES
Charges for services $ - $ - $ 3,834 $ 3,834
Intergovernmental - - 337,035 337,035
Other revenue - - 25,683 25,683
Total operating revenues - - 366,552 366,552

OPERATING EXPENSES
Salaries and benefits - - 136,726 136,726
Materials and supplies - - 10,321 10,321
Repairs and maintenance - - 9,842 9,842
Power and utilities - - 266 266
Administration - - 11,909 11,909
Total operating expenses - - 169,064 169,064
Operating income (loss) - - 197,488 197,488

NONOPERATING REVENUES(EXPENSES)
Interest income (9) (3) (266) (278)
Change in net position (9) (3) 197,222 197,210
Total net position - beginning - - (213,273) (213,273)
Total net position - ending $ (9) $ (3) $ (16,051) $ (16,063) The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

City of Gridley
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
Cash flows from operating activities:

Receipts from customers $ - $ - $ 456,023 $ 456,023
Payments to suppliers - - (27,541) (27,541)
Payments to employees - - (152,775) (152,775)
Net cash provided (used) by operating activities - - 275,707 275,707 Cash flows from investing activities:

Investment income received - - 95 95
Net cash provided (used) by investing activities - - 95 95 Net increase (decrease) in cash and cash equivalents - - 28,128 28,128 Cash and cash equivalents - beginning - - 124,489 124,489 Cash and cash equivalents - ending $ - $ - $ 152,617 $ 152,617 Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) $ - $ - $ 197,488 $ 197,488
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Changes in operating assets and liabilities:

Due from other governments - - 89,471 89,471
Deferred outflows of resources - - 12,817 12,817
Accounts payable - - 4,797 4,797
Net pension liability - - (8,214) (8,214)
Compensated absences - - 1,380 1,380
Deferred inflows of resources - - (22,032) (22,032)
Net cash provided (used) by operating activities $ - $ - $ 275,707 $ 275,707 The accompanying notes are an integral part of these financial statements.

Business-Type Activities
Enterprise Funds

PRIVATE PURPOSE TRUST FUNDS
Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency.

The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City.

The Successor Agency Fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.

City of Gridley
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2025
Main Successor
Trust Agency
Fund Fund Total
ASSETS
Cash and investments $ - $ 1,347,485 $ 1,347,485
Restricted cash and investments - 16,366 16,366
Interest receivable - 440 440
Capital assets, land - 1,302,116 1,302,116
Total assets $ - $ 2,666,407 $ 2,666,407

DEFERRED OUTFLOWS OF RESOURCES
Loss on debt refunding $ - $ 142,106 $ 142,106

LIABILITIES
Accounts payable $ - $ 53 $ 53
Interest payable 40 74,972 75,012
Unearned revenue - 250,040 250,040
Advances from the City - 326,868 326,868
Long-term liabilities, current - 130,000 130,000
Long-term liabilities, noncurrent - 3,720,000 3,720,000 Total liabilities $ 40 $ 4,501,933 $ 4,501,973

NET POSITION
Held in trust for private purposes $ (40) $ (1,693,420) $ (1,693,460) Total net position $ (40) $ (1,693,420) $ (1,693,460)

City of Gridley
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Year Ended June 30, 2025
Main Successor
Trust Agency
Fund Fund Total

ADDITIONS
Property taxes $ - $ 626,225 $ 626,225
Interest Income (40) 6,458 6,418
Total additions (40) 632,683 632,643

DEDUCTIONS
Professional services - 38,220 38,220
Administrative expense - 3,912 3,912
Interest and fiscal charges - 180,392 180,392
Total deductions - 222,524 222,524
Change in net position (40) 410,159 410,119
Total net position - beginning - (2,103,579) (2,103,579) Total net position - ending $ (40) $ (1,693,420) $ (1,693,460)

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CUSTODIAL FUNDS
Custodial Funds
The City administers two custodial funds, the Gridley Bid Fund and the Hospital JPA Administration Fund.

The Gridley Bid Fund is used to account for the use of resources received in relation to bidding and procurement.

The Hospital JPA Administration Fund is used to account for the use of resources held for the Hospital HPA administration.

City of Gridley
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
Hospital
JPA
Administration
Fund
ASSETS
Total assets $ -

LIABILITIES
Interest payable $ 2
Total liabilities $ 2

NET POSITION
Restricted for individuals, organizations and
other governments $ (2)
Total net position $ (2)

City of Gridley
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2025
Hospital
JPA
Administration
Fund
ADDITIONS $ (2)

DEDUCTIONS
None -
Change in net position (2)
Total net position - beginning -
Total net position - ending $ (2)

This page is intentionally blank

GENERAL FUND COMBINING SCHEDULES
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.

City of Gridley
Combining Balance Sheet
General Fund
June 30, 2025
General City Sick Leave
Fund Hall Equipment Payout Total
General Reserve Well Reserve Reserve Reserve General
Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 3,260,376 803,179 $ 42,675 $ 92,735 $ 1,854,368 $ -$ 6,053,333 $ Accounts receivable - 103,101 - - - - 103,101
Interest receivable 1,103 6,577 84 178 3,519 (557) 10,904 Taxes receivable 324,412 - - - - - 324,412
Due from other funds 860,352 - - - - - 860,352
Prepaid items 91,532 - - - - - 91,532
Leases receivable 302,031 - - - - - 302,031
Advances to fiduciary funds 76,868 - - - - - 76,868
Total assets $ 2,562,578 $ 3,266,953 $ 42,759 $ 1,857,887 92,913 $ $ (557) $ 7,822,533

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 1,108,817 -$ -$ -$ -$ -$ $ 1,108,817 Unearned revenue 24,101 - - - - - 24,101
Deposits payable 56,850 - - - - - 56,850
Total liabilities 1,189,768 - - - - - 1,189,768
Deferred Inflows of Resources:

Leases 293,814 - - - - - 293,814
Total deferred inflows of resources 293,814 - - - - - 293,814 Fund Balances:

Nonspendable
Leases receivable 8,217 - - - - - 8,217
Advances to fiduciary funds 76,868 - - - - - 76,868
Prepaid items 91,532 - - - - - 91,532
Total nonspendable 176,617 - - - - - 176,617
Committed:

Infrastructure reserve - - 42,759 - - - 42,759
Total committed - - 42,759 - - - 42,759
Assigned:

Bond reserve - 3,266,953 - - - - 3,266,953
Equipment replacement - - - - 1,857,887 - 1,857,887
Building maintenance - - - 92,913 - - 92,913
Total assigned - 3,266,953 - 92,913 1,857,887 - 5,217,753 Unassigned 902,379 - - - - 901,822 (557)
Total fund balances 1,078,996 3,266,953 42,759 1,857,887 92,913 6,338,951 (557) Total liabilities, deferred inflows of
resources and fund balances $ 2,562,578 $ 3,266,953 $ 42,759 $ 1,857,887 92,913 $ $ 7,822,533 (557) $

City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2025
General City Sick Leave
Fund Hall Equipment Payout Total
General Reserve Well Reserve Reserve Reserve General
Fund Fund Fund Fund Fund Fund Eliminations Fund

REVENUES
Taxes and assessments $ - 3,237,217 $ -$ -$ -$ -$ -$ $ 3,237,217 Licenses, permits and fees 62,700 - - - - - - 62,700
Fines and forfeitures 3,287 - - - - - - 3,287
Intergovernmental 431,973 - - - - - - 431,973
Charges for services 61,078 - - - - - - 61,078
Use of money and property 27,551 98,087 1,249 2,655 52,406 (557) - 181,391 Other revenue 145,718 - - - - - - 145,718
Total Revenues 3,969,524 98,087 1,249 2,655 52,406 (557) - 4,123,364

EXPENDITURES
Current:

General government 122,223 - - - - - - 122,223
Public safety 6,094,226 - - - - - - 6,094,226
Streets and public works 368,507 - - - - - - 368,507
Community development 95,174 - - - - - - 95,174
Parks and recreation 195,253 - - - - - - 195,253
Capital outlay 10,515 - - - - - - 10,515
Total Expenditures 6,885,898 - - - - - - 6,885,898
Excess (Deficiency) of
Revenues over Expenditures (2,916,374) 98,087 1,249 2,655 52,406 (557) - (2,762,534)

OTHER FINANCING SOURCES (USES)
Transfers in 2,279,660 - - - - - (48,672) 2,230,988
Transfers out (1,139,921) (48,672) - - - - 48,672 (1,139,921) Total Other Financing Sources (Uses) 1,139,739 (48,672) - - - - - 1,091,067 Net Change in Fund Balances (1,776,635) 49,415 1,249 2,655 52,406 (557) - (1,671,467) Fund Balances Beginning 2,855,631 3,217,538 41,510 90,258 1,805,481 - - 8,010,418 Fund Balances Ending $ 3,266,953 1,078,996 $ 42,759 $ 92,913$ 1,857,887 $ (557) $ -$ 6,338,951 $

City Council Agenda Item #6
Staff Report
Date: March 2, 2026
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Solid Waste Rates (Waste Management) Contractual CPI and Extraordinary Expense Provisions - Follow-Up to Proposition 218 Public Hearing Recommendation
Receive and file this report confirming:

1. The existing Waste Management agreement authorizes annual Consumer Price Index (CPI) adjustments of up to five percent (5%);

2. In addition, the agreement provides for Extraordinary Service Fee Review Request I adjustments for documented extraordinary expenses to include “Processing facility and disposal facility/landfill tip fees that are not regulated by the Company.” Waste Management seeks an Extraordinary Fee Increase of an additional 1.79% as a result of increased fees at the County operated Neal Road landfill.

3. The City’s Proposition 218 noticing and public hearing process preserved compliance with Article XIII D of the California Constitution while fulfilling the City’s contractual obligations under the existing agreement for the extra-ordinary fee increase landfill costs and

4. Approve proposed solid waste increases pursuant to the terms of 2024 Waste Management Agreement.

Background
On February 2, 2026, the City Council conducted a duly noticed Proposition 218 public hearing regarding proposed solid waste rate adjustments.

As stated in the February 2 staff report:
• There is no new contract with Waste Management under consideration. • The proposed adjustments relate solely to provisions already contained in the existing 2024 Waste Management agreement.
• The City issued a Proposition 218 notice out of an abundance of caution because the Extra Ordinary Fee Increase provision of the existing agreement had not previously been exercised by Waste Management and that provision allows for fees greater than the previously Proposition 218 noticed CPI increases.

On December 17, 2025, the City mailed 2,539 Proposition 218 notices to affected property owners.

At the close of the public hearing, the City Clerk tabulated written protests submitted in accordance with Article XIII D of the California Constitution. A total of four (4) written protests were received.

Four protests out of 2,539 noticed parcels does not constitute a majority protest as defined by Proposition 218. The number of protests received was not sufficient to prohibit the proposed x Regular
Special
Closed
Emergency
rate adjustments from being adopted. Accordingly, the City Council determined that no majority protest existed and approved the rates as noticed.

Contractual Rate Adjustment Authority
The existing Waste Management agreement includes two separate rate adjustment mechanisms:

1. Annual CPI Adjustment (Up to 5%)
The agreement authorizes an annual rate adjustment tied to the Consumer Price Index, capped at five percent (5%). This provision was negotiated and approved as part of the 2024 contract and was included in the Proposition 218 Notice at that time.

2. Extraordinary Service Rate Increase
The agreement authorizes additional rate adjustments when specific underlying “hard costs” increase, including but not limited to:
• “Processing facility and disposal facility/landfill tip fees that are not regulated by the Company”
As presented at the February 2 hearing, Waste Management experienced increased dumping fees at the County operated Neal Road Landfill. The agreement expressly allows cost recovery for such documented increases and Waste Management has provided documentation of the increase and fee calculation of an additional 1.7%.

Fiscal Impact
No fiscal impact to FY 25/26 Budget, rate adjustments are structured to recover increased disposal costs and authorized CPI adjustments consistent with the agreement.

Conclusion
 The existing Waste Management contract allows for annual CPI adjustments of up to five percent (5%) and additional adjustments for documented extraordinary expenses.  The City mailed 2,539 notices and received four written protests. The protests did not constitute a majority protest under Proposition 218.
 The City Council’s action was therefore consistent with both constitutional requirements and the City’s contractual obligations.

Attachments
-Proposition 218 Notice of Public Hearing (mailed December 17, 2025) -Fee Calculations
-Existing Waste Management Contract valid through December 31, 2028 (approved March 2024)
Notice of Public Hearing
Proposed Rate Increase for Collection and Disposal of
Solid Waste
Public Hearing Before: Gridley City Council
Hearing Date: Monday February 2nd, 2026, at 6:00 p.m.

Location: Gridley City Hall - Council Chambers, 685 Kentucky Street, Gridley, CA 95948 Affected property owners or customers of record subject to the imposition of the proposed rate adjustments have the right to submit written protests against the proposed rates. Written protests must be mailed to the address below or may also be hand delivered to the City Clerk at the February 2, 2026, City Council Meeting - Public Hearing in order to be counted. Protests may not be delivered electronically or verbally. Any written protest must: (1) state that the identified property owner or customer is in opposition to the proposed rates increase; (2) provide the location of the identified parcel (by assessor’s parcel number, street address, or customer account); and (3) include the name and signature of the person submitting the protest. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest, the City of Gridley welcomes input from the community during the public hearing on the proposed solid waste rates. Only one protest may be registered per property.

Mail Protests to: City of Gridley, City Clerk, 685 Kentucky Street, Gridley, CA 95948 Please see proposed rate schedules attached
NOTICE IS HEARBY GIVEN that the City Council of the City of Gridley, on Monday February 2nd, 2026, will hold a public hearing commencing at Gridley City Hall Council Chambers, 685 Kentucky St., Gridley, CA 95948 at 6:00 pm, to consider the following item:

ADOPTION OF PROPOSED RATE INCREASE FOR COLLECTION OF

SOLID WASTE, GREEN WASTE, AND RECYCLABLES
This notice is given as a required Proposition 218 notice that is to be mailed to all impacted property owners and customers to advise of proposed rate changes. To view the proposed rates and contract please visit the City of Gridley’s website gridley.ca.us/notice/prop218-wastemanagement. For any further questions please email Rachel Haines with Waste Management at [email protected]. The agenda and staff report will be published on the Friday before the scheduled City Council meeting at gridley.ca.us/government-and-departments/city-council/
City of Gridley
685 Kentucky St., Gridley CA 95948
(530) 846-3631
www.gridley.ca.us

City of Gridley
685 Kentucky St., Gridley CA 95948
(530) 846-3631
www.gridley.ca.us
Aviso de Audiencia Pública
Propuesta de Aumento de Tarifas para la Recolección
y Eliminación de Desechos Sólidos
SE DA AVISO de que el Concejo Municipal de la Ciudad de Gridley, el lunes 2 de Febrero de 2026, llevará a cabo una audiencia pública que comenzará en las Cámaras del Concejo del Ayuntamiento de Gridley, 685 Kentucky St., Gridley, CA 95948 a las 6:00 pm, para considerar el siguiente tema:

ADOPCIÓN DE LA PROPUESTA DE AUMENTO DE TARIFAS PARA EL COBRO DE RESIDUOS SÓLIDOS, RESIDUOS VERDES Y RECICLABLES
Este aviso se entrega como un aviso requerido de la Proposición 218 que debe enviarse por correo a todos los propietarios y clientes afectados para informar sobre los cambios de tarifas propuestos. Para ver las tarifas propuestas y el contrato, visite el sitio web de la ciudad de Gridley gridley.ca.us/notice/prop218-wastemanagement. Si tiene más preguntas, envíe un correo electrónico a Rachel Hines de Waste Management at [email protected]. La agenda y el informe del personal se publicarán el viernes antes de la reunión programada del Concejo Municipal en gridley.ca.us/government-and-departments/city-council/.

Audiencia Pública Ante: Concejo Municipal de Gridley
Fecha de Audiencia: Lunes 2 de Febrero de 2026 a las 6:00 p.m.

Ubicación: Ayuntamiento de Gridley - Cámaras del Consejo, 685 Kentucky Street, Gridley, CA 95948
Los propietarios afectados o los clientes registrados sujetos a la imposición de los ajustes de tarifas propuestos tienen derecho a presentar protestas por escrito contra las tarifas propuestas. Las protestas por escrito deben enviarse por correo a la dirección que se indica a continuación o también pueden entregarse personalmente al Secretario Municipal en la reunión del Concejo Municipal del 2 de Febrero de 2026 - Audiencia Pública para ser contados. Las protestas no pueden ser entregadas electrónica o verbalmente. Cualquier protesta por escrito debe: (1) declarar que el propietario o cliente identificado se opone al aumento de tarifas propuesto; (2) Proporcione la ubicación de la parcela identificada (por número de parcela del evaluador, calle dirección, o cuenta de cliente); y (3) incluir el nombre y la firma de la persona que presenta la protesta. Aunque los comentarios orales en la audiencia pública no calificarán como una protesta formal a menos que vayan acompañados de una protesta por escrito, la Ciudad de Gridley agradece los comentarios de la comunidad durante la audiencia pública sobre las tarifas propuestas para los desechos sólidos. Solo se puede registrar una protesta por propiedad.

Envíe las protestas por correo a: City of Gridley, City Clerk, 685 Kentucky Street, Gridley, CA 95948

3/1/2026

3/1/2026
CPI ADJUSTMENT. The Service Rates set forth in Exhibit 2 shall be adjusted on January 1st of each year, beginning January 1, 2025 and annually thereafter to reflect one-hundred percent (100%) of the annual change in the Consumer Price Index, series CUUR0000SEHG CPI-U Water and Sewer and Trash
Collection Services, US City Average, not seasonally adjusted, as published by the United States Department of Labor,
Bureau of Labor Statistics (CPI). Annual CPI adjustments shall have a 2% floor and 5% cap. If an annual CPI adjustment would otherwise be lower than 2% or above 5%, such difference will be applied to the following year’s CPI adjustment. The
Company shall submit a formal Request for Service Rates Adjustment to the City on an annual basis no later than November 1st of the current year.

EXTRAORDINARY SERVICE RATE REVIEW REQUEST. In addition
to the annual CPI adjustment, the Service Rates shall, upon written request of Company, be further adjusted to fully capture increased expenses and lost revenue associated with performance of the services hereunder due to any one or more of the following causes: Uncontrollable Circumstance; Changes in Applicable Law that is effective after the Effective Date of this Agreement; Increase in surcharges, fees,
assessments or taxes levied by federal, state or local
regulatory authorities or other governmental entities related to the Franchise Services; Processing facility and disposal facility/landfill tip fees that are not regulated by the Company or an affiliate of the Company. Any other extraordinary circumstances or causes or reasons that are not within the reasonable control of Company.

If Company requests a Service Rates adjustment, it shall prepare a Service Rates adjustment request setting forth its calculations of the increased costs/lost revenue and
accompanying adjustment to the Service Rates necessary to offset such increased costs/ lost revenue. The City may request documentation and data reasonably necessary to
evaluate such request by Company, and may retain, at its own expense, an independent third party to audit and review such documentation and request. If such third party is retained, the City shall take reasonable steps, consistent with Applicable Law, to protect the confidential or proprietary nature of any data or information supplied by Company. The City shall approve all properly calculated Service Rates adjustments within ninety (90) days of Company's request, and the
adjusted Service Rates shall be deemed to take effect as of the date of Company's request. In addition, if the request is based upon any new or increased third party fees taxes, assessments or charges, the City shall approve the Service Rates
adjustment within such time period as necessary to ensure that such fees, taxes, assessments or charges are passed on to Service Recipients by the date the same are effective.

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Residential Rates
Adjustment

6.62%
Residential Carts
Service Current Rate Adjustment Rate
35 gallon - Senior $23.22 $1.54 $24.76
35 gallon $27.61 $1.83 $29.44
64 gallon $31.91 $2.11 $34.02
95 gallon $37.33 $2.47 $39.80
Add'l 35 gallon $13.80 $0.91 $14.71
Add'l 64 gallon $15.96 $1.06 $17.02
Add'l 90 gallon $18.66 $1.24 $19.90
Extra Pickup Charges
Service Current Rate Adjustment Rate
35 gallon $11.34 $0.75 $12.09
64 gallon $13.01 $0.86 $13.87
95 gallon $13.01 $0.86 $13.87
Bag $6.09 $0.40 $6.49
Ancillary Charges
Service Current Rate Adjustment Rate
Long walk service. Up to 100 feet $13.19 $0.87 $14.06
Long walk service. 101 to 200 feet $26.45 $1.75 $28.20
Overfull Container (Snapshot) $11.75 $0.78 $12.53
Contamination charge $14.11 $0.93 $15.04
Extra Pickup / Go Back Charge $60.40 $4.00 $64.40
Replace lost or stolen cart $114.11 $7.56 $121.67
Replace or Exchange damaged container
(not caused by WM) $114.11 $7.56 $121.67
Account reactivation charge (from bad pay) -
no cart delivery $60.40 $4.00 $64.40
Account reactivation charge (from bad pay) -
w/ cart delivery $107.42 $7.11 $114.53
Late Payment charge 2.5% of balance
($5.00 min. Chg.) N/A 2.5% of balance ($5.00 min. Chg.) Rates with Extraordinary Rate Increase

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Commercial Rates
Adjustment

6.62%
Commercial Carts Rate
35 gallon $39.48
64 gallon $55.63
95 gallon $96.22
Add'l 35 gallon $37.99
Add'l 64 gallon $55.63
Add'l 90 gallon $96.22
Commercial Bin Rates - Quantity 1 Rate Rate Rate Rate Rate Rate 1 Yard $172.16 $277.76 $383.42 $489.04 $594.66 $757.73

1.5 Yard $210.99 $343.19 $474.02 $606.25 $737.09 $938.97 2 Yard $277.02 $451.29 $625.52 $799.78 $972.55 $1,240.53 3 Yard $343.08 $559.30 $775.55 $993.28 $1,209.52 $1,543.57 4 Yard $407.68 $667.35 $927.13 $1,186.71 $1,446.39 $1,845.09 5 Yard $473.78 $775.44 $1,078.54 $1,380.24 $1,681.93 $2,146.66 6 Yard $539.84 $884.92 $1,228.62 $1,573.76 $1,918.86 $2,448.22 8 Yard $670.49 $1,101.04 $1,530.17 $1,960.76 $2,391.29 $3,052.77 Commercial Bin Rates - Quantity 2 Rate Rate Rate Rate Rate Rate 1 Yard $335.86 $547.06 $758.30 $969.54 $1,182.27 $1,506.90

1.5 Yard $413.38 $676.37 $939.44 $1,202.53 $1,465.63 $1,869.42 2 Yard $545.47 $894.02 $1,241.03 $1,589.59 $1,938.01 $2,473.98 3 Yard $676.18 $1,110.10 $1,544.04 $1,976.61 $2,410.54 $3,077.08 4 Yard $808.32 $1,326.15 $1,845.74 $2,363.50 $2,882.78 $3,681.65 5 Yard $939.06 $1,543.80 $2,147.14 $2,751.94 $3,355.40 $4,284.74 6 Yard $1,071.11 $1,759.84 $2,448.69 $3,139.00 $3,827.79 $4,889.37 8 Yard $1,332.42 $2,193.55 $3,053.22 $3,912.93 $4,772.60 $6,097.02 Commercial Bin Rates - Quantity 3 Rate Rate Rate Rate Rate Rate 1 Yard $498.05 $816.30 $1,133.22 $1,451.51 $1,768.40 $2,256.09

1.5 Yard $617.26 $1,011.03 $1,404.94 $1,798.78 $2,194.18 $2,799.84 2 Yard $813.94 $1,335.31 $1,857.99 $2,380.83 $2,902.01 $3,705.98 3 Yard $1,010.73 $1,660.88 $2,311.03 $2,961.31 $3,611.54 $4,612.09 4 Yard $1,207.45 $1,984.95 $2,764.33 $3,541.69 $4,319.26 $5,516.76 5 Yard $1,404.26 $2,310.71 $3,217.18 $4,122.18 $5,028.79 $6,422.89 6 Yard $1,600.96 $2,634.81 $3,668.76 $4,704.23 $5,738.15 $7,329.02 8 Yard $1,994.39 $3,284.61 $4,574.86 $5,865.19 $7,155.33 $9,139.83 Multi-Unit Residential Bin Rates Rate Rate Rate Rate Rate Rate 1 Yard $152.84 $245.93 $339.01 $432.04 $525.11 $664.21

1.5 Yard $186.95 $302.14 $417.38 $534.01 $649.23 $823.17 2 Yard $245.22 $397.37 $550.96 $704.56 $856.69 $1,087.63 3 Yard $302.04 $492.57 $683.11 $873.65 $1,064.14 $1,352.10 4 Yard $360.30 $587.78 $816.71 $1,044.12 $1,273.01 $1,615.05 5 Yard $417.16 $682.98 $948.78 $1,214.66 $1,480.49 $1,879.55 6 Yard $475.42 $778.18 $1,082.40 $1,385.18 $1,687.95 $2,143.98 8 Yard $590.49 $968.57 $1,346.64 $1,726.15 $2,104.25 $2,672.89 Commercial Recycling Rate
64 Gallon - EOW $35.11
2 Yard - 1xWeek $104.09
3 Yard - 1xWeek $110.37
4 Yard - 1xWeek $119.14
6 Yard - 1xWeek $135.45
Extra Pickup Charges Rate
35 gallon $12.42
64 gallon $14.27
95 gallon $14.27
Bag $6.63
1 Yard $75.15

1.5 Yard $89.42
2 Yard $111.37
3 Yard $146.49
4 Yard $173.19
5 yard $201.73
6 Yard $230.28
7 Yard $258.86
8 Yard $287.33
Ancillary Charges Rate
Extra pickup non-service day Trip Charge $143.12
Contamination Bin $68.97
Contamination Cart $21.32
Lock bar and lock - one time installation
charge $193.22
Lock service charge $1.42
Container clean/exchange $214.72
Replace lost or stolen container
WM
Replacement
Cost + 25%
Replace container. Damage not caused
by WM
WM
Replace/Repair
Cost + 25%
Overfull Bin (Snapshot) $100.33
Overafull Cart (Snapshot) $18.82
Account reactivation charge (from bad
pay) - no delivery $64.40
Account reactivation charge (from bad
pay) - w/ delivery $279.13
Late Payment charge

2.5% of balance
($5.00 min.

Chg.)
6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week
4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week
Adjustment

6.62%
Debris Box - Municipal Solid
Waste
Service Current Rate Adjustment Rate
20 Yard - MSW $531.04 $35.17 $566.21
30 Yard - MSW $601.21 $39.82 $641.03
40 Yard - MSW $676.35 $44.79 $721.14
20 Yard - Tires $1,062.12 $70.34 $1,132.46
30 Yard - Tires $1,200.71 $79.52 $1,280.23
40 Yard - Tires $1,549.75 $102.64 $1,652.39
Debris Box - Clean Recyclable
Materials
Service Current Rate Adjustment Rate
20 Yard - Wood or Metal $324.03 $21.46 $345.49
30 Yard - Wood or Metal $365.73 $24.22 $389.95
40 Yard - Wood or Metal $402.47 $26.66 $429.13
20 Yard - Masonry $324.03 $21.46 $345.49
10 Yard - Concrete $345.69 $22.89 $368.58
Ancillary Fees
Service Current Rate Adjustment Rate
Demurrage - Per Day $18.68 $1.24 $19.92
Waste Trip Charge $69.56 $4.61 $74.17
Compactor - Per Yard $33.37 $2.21 $35.58
Delivery $201.38 $13.34 $214.72
Exchange $201.38 $13.34 $214.72
Trip Charge $201.38 $13.34 $214.72
Relocate $201.38 $13.34 $214.72
Removal $201.38 $13.34 $214.72
Excessive Net Weight $939.73 $62.24 $1,001.97
Replace lost or stolen Roll Off
Box
WM
Replacement
Cost + 25%
N/A
WM
Replacement
Cost + 25%
Replace Roll Off Box. Damage
not caused by WM
WM
Replace/Repair
Cost + 25%
N/A
WM
Replace/Repair
Cost + 25%
Account reactivation charge
(from bad pay) - no delivery $59.59 $3.95 $63.54
Account reactivation charge
(from bad pay) - w/ delivery $198.65 $13.16 $211.81
Late Payment charge

2.5% of
balance ($5.00
min. Chg.)
N/A

2.5% of
balance ($5.00
min. Chg.)
Debris Box Rates
Effective 1/1/2026
Annual Rate Adjustment

CITY OF GRIDLEY

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Ord Ranch Transfer Station
Adjustment

6.62%
ORD Ranch Road Transfer Station Rate Schedule
Service Current
Rate
Rounded
Current
Rate
Increase Rate
Rounded Rate
(to nearest
dollar)
Minimum Charge $15.29 $15.00 $1.01 $16.30 $16.00
Up to 2 barrels $15.29 $15.00 $1.01 $16.30 $16.00
Up to 3 cans $15.29 $15.00 $1.01 $16.30 $16.00
Any size pickup $32.09 $32.00 $2.13 $34.22 $34.00
Bulky Items (each) $26.40 $26.00 $1.75 $28.15 $28.00
Appliances with Freon $57.68 $58.00 $3.82 $61.50 $62.00 Appliances without Freon $26.40 $26.00 $1.75 $28.15 $28.00 CRT's / Televisions up to 31" * $0.00 $0.00 $0.00 $0.00 $0.00 Wire (per approx yard) $22.82 $23.00 $1.51 $24.33 $24.00 Car Tires $7.80 $8.00 $0.52 $8.32 $8.00
Truck Tires $22.82 $23.00 $1.51 $24.33 $24.00
*(for Televisions over 32" call City offices for appropriate disposal)

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
CPI Change Calculation
CPI for All Urban Consumers (CPI-U) September 2024 Index 305.117 September 2025 Index 319.867
Series Id: CUUR0000SEHG Difference 14.75
Index Percentage Change 4.83%
Series Title: Previous Year Carry-Over 0.00%
CPI Change with Carry-Over 4.83%
Area: U.S. city average Applied 2% Floor and 5% Cap 4.83% Item: Water and sewer and trash collection services
Base Period: DECEMBER 1997=100 Roll Over to be Applied Next Year 0.00% Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2020 248.846 249.751 250.359 250.673 250.921 251.435 252.401 253.974 254.266 254.781 255.65 256.456 252.459 2021 257.722 258.763 259.204 259.581 259.542 260.4 261.706 262.81 263.747 264.278 264.58 265.365 261.475 2022 268.128 269.521 269.621 270.419 270.844 271.925 273.097 274.984 276.759 276.892 277.824 278.464 273.207 2023 281.461 283.663 284.166 285.052 286.322 287.457 289.005 290.975 291.279 291.683 292.694 292.915 288.056 2024 297.079 298.751 299.183 300.178 299.987 300.652 302.106 303.311 305.117 306.336 308.015 308.234 302.412 2025 310.239 313.344 313.925 314.82 315.585 316.851 318.244 319.403 319.867 Not Seasonally Adjusted
Water and sewer and trash collection services in U.S. city average, all urban consumers, not seasonally adjusted

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Proposed Extraordinary Rate Adjustment for Neal Road Landfill Disposal Change
Rate Before 7/1/2025 $48.64
New Rate Effective 7/1/2025 $56.18
Rate Change $7.54
Rate Change % 15.50%
Disposal minus CPI Change
CPI 4.83%
Disposal Increase minus CPI Increase 10.67%
Disposal Allocation
MSW Disposal Cost $1,355,263
Total Operations Costs $8,079,651
EI Disposal Adjustment 16.77%
Rate Adjustment
E.I. Disposal Rate Change (Applied to all rates in
addition to existing PI) 1.79%

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Residential Rates
Adjustment

4.83%
Residential Carts
Service Current Rate Adjustment Rate
35 gallon - Senior $23.22 $1.12 $24.34
35 gallon $27.61 $1.33 $28.94
64 gallon $31.91 $1.54 $33.45
95 gallon $37.33 $1.80 $39.13
Add'l 35 gallon $13.80 $0.67 $14.47
Add'l 64 gallon $15.96 $0.77 $16.73
Add'l 90 gallon $18.66 $0.90 $19.56
Extra Pickup Charges
Service Current Rate Adjustment Rate
35 gallon $11.34 $0.55 $11.89
64 gallon $13.01 $0.63 $13.64
95 gallon $13.01 $0.63 $13.64
Bag $6.09 $0.29 $6.38
Ancillary Charges
Service Current Rate Adjustment Rate
Long walk service. Up to 100 feet $13.19 $0.64 $13.83
Long walk service. 101 to 200 feet $26.45 $1.28 $27.73
Overfull Container (Snapshot) $11.75 $0.57 $12.32
Contamination charge $14.11 $0.68 $14.79
Extra Pickup / Go Back Charge $60.40 $2.92 $63.32
Replace lost or stolen cart $114.11 $5.52 $119.63
Replace or Exchange damaged container
(not caused by WM) $114.11 $5.52 $119.63
Account reactivation charge (from bad pay) -
no cart delivery $60.40 $2.92 $63.32
Account reactivation charge (from bad pay) -
w/ cart delivery $107.42 $5.19 $112.61
Late Payment charge 2.5% of balance
($5.00 min. Chg.) N/A 2.5% of balance ($5.00 min. Chg.) Rates WITHOUT Extraordinary Rate Increase

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Commercial Rates
Adjustment

4.83%
Commercial Carts Rate
35 gallon $38.82
64 gallon $54.69
95 gallon $94.60
Add'l 35 gallon $37.35
Add'l 64 gallon $54.69
Add'l 90 gallon $94.60
Commercial Bin Rates - Quantity 1 Rate Rate Rate Rate Rate Rate 1 Yard $169.27 $273.10 $376.98 $480.83 $584.68 $745.01

1.5 Yard $207.44 $337.43 $466.07 $596.07 $724.72 $923.22 2 Yard $272.37 $443.72 $615.03 $786.36 $956.23 $1,219.71 3 Yard $337.32 $549.91 $762.54 $976.61 $1,189.22 $1,517.66 4 Yard $400.84 $656.15 $911.57 $1,166.80 $1,422.12 $1,814.12 5 Yard $465.83 $762.42 $1,060.44 $1,357.08 $1,653.71 $2,110.63 6 Yard $530.78 $870.07 $1,208.00 $1,547.35 $1,886.66 $2,407.13 8 Yard $659.23 $1,082.56 $1,504.49 $1,927.86 $2,351.15 $3,001.54 Commercial Bin Rates - Quantity 2 Rate Rate Rate Rate Rate Rate 1 Yard $330.23 $537.88 $745.58 $953.27 $1,162.42 $1,481.61

1.5 Yard $406.44 $665.02 $923.68 $1,182.34 $1,441.03 $1,838.04 2 Yard $536.32 $879.02 $1,220.20 $1,562.91 $1,905.48 $2,432.46 3 Yard $664.83 $1,091.47 $1,518.12 $1,943.43 $2,370.08 $3,025.44 4 Yard $794.75 $1,303.90 $1,814.76 $2,323.83 $2,834.40 $3,619.86 5 Yard $923.30 $1,517.89 $2,111.10 $2,705.75 $3,299.09 $4,212.83 6 Yard $1,053.14 $1,730.31 $2,407.59 $3,086.32 $3,763.55 $4,807.32 8 Yard $1,310.06 $2,156.74 $3,001.98 $3,847.26 $4,692.50 $5,994.69 Commercial Bin Rates - Quantity 3 Rate Rate Rate Rate Rate Rate 1 Yard $489.69 $802.60 $1,114.20 $1,427.15 $1,738.73 $2,218.22

1.5 Yard $606.90 $994.06 $1,381.36 $1,768.59 $2,157.36 $2,752.85 2 Yard $800.28 $1,312.90 $1,826.81 $2,340.87 $2,853.30 $3,643.78 3 Yard $993.77 $1,633.00 $2,272.24 $2,911.61 $3,550.93 $4,534.69 4 Yard $1,187.19 $1,951.63 $2,717.93 $3,482.25 $4,246.77 $5,424.18 5 Yard $1,380.69 $2,271.93 $3,163.18 $4,053.00 $4,944.40 $6,315.09 6 Yard $1,574.10 $2,590.59 $3,607.18 $4,625.28 $5,641.84 $7,206.02 8 Yard $1,960.92 $3,229.49 $4,498.08 $5,766.75 $7,035.25 $8,986.44 Multi-Unit Residential Bin Rates Rate Rate Rate Rate Rate Rate 1 Yard $150.28 $241.80 $333.32 $424.79 $516.29 $653.06

1.5 Yard $183.81 $297.07 $410.37 $525.05 $638.33 $809.36 2 Yard $241.11 $390.70 $541.72 $692.74 $842.32 $1,069.37 3 Yard $296.97 $484.30 $671.65 $858.98 $1,046.28 $1,329.40 4 Yard $354.25 $577.92 $803.00 $1,026.59 $1,251.65 $1,587.94 5 Yard $410.16 $671.52 $932.86 $1,194.27 $1,455.64 $1,848.00 6 Yard $467.44 $765.12 $1,064.24 $1,361.93 $1,659.62 $2,108.00 8 Yard $580.58 $952.32 $1,324.04 $1,697.18 $2,068.93 $2,628.03 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week
6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week
Commercial Recycling Rate
64 Gallon - EOW $34.52
2 Yard - 1xWeek $102.34
3 Yard - 1xWeek $108.51
4 Yard - 1xWeek $117.14
6 Yard - 1xWeek $133.18
Extra Pickup Charges Rate
35 gallon $12.21
64 gallon $14.03
95 gallon $14.03
Bag $6.52
1 Yard $73.89

1.5 Yard $87.92
2 Yard $109.50
3 Yard $144.03
4 Yard $170.28
5 yard $198.34
6 Yard $226.42
7 Yard $254.51
8 Yard $282.51
Ancillary Charges Rate
Extra pickup non-service day Trip
Charge $140.72
Contamination Bin $67.82
Contamination Cart $20.97
Lock bar and lock - one time installation
charge $189.98
Lock service charge $1.39
Container clean/exchange $211.11
Replace lost or stolen container
WM
Replacement
Cost + 25%
Replace container. Damage not caused
by WM
WM
Replace/Repair
Cost + 25%
Overfull Bin (Snapshot) $98.65
Overafull Cart (Snapshot) $18.50
Account reactivation charge (from bad
pay) - no delivery $63.32
Account reactivation charge (from bad
pay) - w/ delivery $274.44
Late Payment charge

2.5% of balance
($5.00 min.

Chg.)
Adjustment

4.83%
Debris Box - Municipal Solid
Waste
Service Current Rate Adjustment Rate
20 Yard - MSW $531.04 $25.67 $556.71
30 Yard - MSW $601.21 $29.06 $630.27
40 Yard - MSW $676.35 $32.69 $709.04
20 Yard - Tires $1,062.12 $51.34 $1,113.46
30 Yard - Tires $1,200.71 $58.04 $1,258.75
40 Yard - Tires $1,549.75 $74.91 $1,624.66
Debris Box - Clean Recyclable
Materials
Service Current Rate Adjustment Rate
20 Yard - Wood or Metal $324.03 $15.66 $339.69
30 Yard - Wood or Metal $365.73 $17.68 $383.41
40 Yard - Wood or Metal $402.47 $19.45 $421.92
20 Yard - Masonry $324.03 $15.66 $339.69
10 Yard - Concrete $345.69 $16.71 $362.40
Ancillary Fees
Service Current Rate Adjustment Rate
Demurrage - Per Day $18.68 $0.90 $19.58
Waste Trip Charge $69.56 $3.36 $72.92
Compactor - Per Yard $33.37 $1.61 $34.98
Delivery $201.38 $9.73 $211.11
Exchange $201.38 $9.73 $211.11
Trip Charge $201.38 $9.73 $211.11
Relocate $201.38 $9.73 $211.11
Removal $201.38 $9.73 $211.11
Excessive Net Weight $939.73 $45.42 $985.15
Replace lost or stolen Roll Off
Box
WM
Replacement
Cost + 25%
N/A
WM
Replacement
Cost + 25%
Replace Roll Off Box. Damage
not caused by WM
WM
Replace/Repair
Cost + 25%
N/A
WM
Replace/Repair
Cost + 25%
Account reactivation charge
(from bad pay) - no delivery $59.59 $2.88 $62.47
Account reactivation charge
(from bad pay) - w/ delivery $198.65 $9.60 $208.25
Late Payment charge

2.5% of
balance ($5.00
min. Chg.)
N/A

2.5% of
balance ($5.00
min. Chg.)
Debris Box Rates
Effective 1/1/2026
Annual Rate Adjustment

CITY OF GRIDLEY

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
Ord Ranch Transfer Station
Adjustment

4.83%
ORD Ranch Road Transfer Station Rate Schedule
Service Current
Rate
Rounded
Current
Rate
Increase Rate
Rounded Rate
(to nearest
dollar)
Minimum Charge $15.29 $15.00 $0.74 $16.03 $16.00
Up to 2 barrels $15.29 $15.00 $0.74 $16.03 $16.00
Up to 3 cans $15.29 $15.00 $0.74 $16.03 $16.00
Any size pickup $32.09 $32.00 $1.55 $33.64 $34.00
Bulky Items (each) $26.40 $26.00 $1.28 $27.68 $28.00
Appliances with Freon $57.68 $58.00 $2.79 $60.47 $60.00 Appliances without Freon $26.40 $26.00 $1.28 $27.68 $28.00 CRT's / Televisions up to 31" * $0.00 $0.00 $0.00 $0.00 $0.00 Wire (per approx yard) $22.82 $23.00 $1.10 $23.92 $24.00 Car Tires $7.80 $8.00 $0.38 $8.18 $8.00
Truck Tires $22.82 $23.00 $1.10 $23.92 $24.00
*(for Televisions over 32" call City offices for appropriate disposal)

CITY OF GRIDLEY
Annual Rate Adjustment
Effective 1/1/2026
CPI Change Calculation
CPI for All Urban Consumers (CPI-U) September 2024 Index 305.117 September 2025 Index 319.867
Series Id: CUUR0000SEHG Difference 14.75
Index Percentage Change 4.83%
Series Title: Previous Year Carry-Over 0.00%
CPI Change with Carry-Over 4.83%
Area: U.S. city average Applied 2% Floor and 5% Cap 4.83% Item: Water and sewer and trash collection services
Base Period: DECEMBER 1997=100 Roll Over to be Applied Next Year 0.00% Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2020 248.846 249.751 250.359 250.673 250.921 251.435 252.401 253.974 254.266 254.781 255.65 256.456 252.459 2021 257.722 258.763 259.204 259.581 259.542 260.4 261.706 262.81 263.747 264.278 264.58 265.365 261.475 2022 268.128 269.521 269.621 270.419 270.844 271.925 273.097 274.984 276.759 276.892 277.824 278.464 273.207 2023 281.461 283.663 284.166 285.052 286.322 287.457 289.005 290.975 291.279 291.683 292.694 292.915 288.056 2024 297.079 298.751 299.183 300.178 299.987 300.652 302.106 303.311 305.117 306.336 308.015 308.234 302.412 2025 310.239 313.344 313.925 314.82 315.585 316.851 318.244 319.403 319.867 Not Seasonally Adjusted
Water and sewer and trash collection services in U.S. city average, all urban consumers, not seasonally adjusted
Butte County Board of Supervisors
Agenda Transmittal
Clerk of the Board Use Only
Agenda Item:

Subject:

Department:

Contact: Phone:

Meeting DateZĞƋƵĞƐƚĞĚ͗
Regular Agenda Consent Agenda
Department Summary: (Information provided in this section will be included on the agenda. Attach explanatory memorandum and other background as necessary).

Fiscal Impact:

Personnel Impact:

Action Requested:

Administrative Office Review:

Revised: 'HFHPEHU

5.03 Resolution Amending the Master Fee Schedule at the Neal Road Recycling and Waste Facility (NRRWF) Public Works May 28, 2024
Joshua Pack / C.Cissell 530.538.7681
The Board of Supervisors previously approved NRRWF rate adjustments on November 6, 2012. Current fiscal projections suggest the NRRWF will exhaust all remaining fund balances before June 30, 2026, without a rate adjustment.

The Department presented a draft NRRWF Master Plan to the Board of Supervisors on October 10, 2023, and March 12, 2024. These presentations included a detailed fiscal analysis and recommended rate adjustments to ensure fiscally sustainable operations. The Board provided valuable feedback during these presentations and directed staff to return with updated information for its consideration.

The recommended master fee schedule adjustments include tipping fee increases of 23% ($51.80/ton) for FY 2024-25 and 23% ($63.71/ton) for FY 2025-26. Subsequent master fee schedule adjustments after FY 2025-26 would be subject to annual inflationary adjustments per the Butte County Municipal Code. These recommended adjustments will provide NRRWF with the necessary funding to continue offering the services expected by the community, ensure compliance with applicable regulatory compliance measures, and deliver the projects and programs identified in the Master Plan.

The Department recommends adopting a resolution amending the master fee schedule at the NRRWF.

Dawn Nevers, Deputy Chief Administrative Offier
Adopting the Master Fee Schedule may result in a $2 million revenue increase in FY 2024-25 and $4 million in FY 2025-26 compared to current fiscal year landfill revenues. Subsequent revenues would be dependent on inflationary adjustments.

Does not apply
Adopt Resolution and authorize the Chair to sign.

Resolution No.

RESOLUTION AMENDING THE MASTER FEE SCHEDULE AT THE NEAL ROAD RECYCLING AND WASTE FACILITY WHEREAS, the Board of Supervisors previously established the Neal Road Recycling and Waste Facility (NRRWF) Master Fee Schedule by Resolution on November 6, 2012; and WHEREAS, the Master Fee Schedule has not been amended since 2015; and WHEREAS, the Master Fee Schedule is a schedule of fees for services provided by the NWWRF; and WHEREAS, the County of Butte is authorized to adopt and implement fees for services, provided, however, that such fees do not exceed the estimated reasonable cost of providing such services; and WHEREAS, the County of Butte, Department of Public Works, recently completed a Master Plan study that included recommended master fee schedule adjustments to ensure the Solid Waste Enterprise Fund is sufficient to meet operating requirements under Butte County Code sections 3-70 and 3-331; and WHEREAS, the Board of Supervisors desires to increase the Master Fee Schedule to reflect the recommendations in the Master Plan and ensure adequate revenues to meet the operating requirements and deliver projects and programs identified in the Master Plan.

NOW, THEREFORE, BE IT RESOLVED that the Butte County Board of Supervisors adopts the amended Master Fee Schedule outlined in Exhibit A. The amended rates shall become effective on July 1, 2024.

PASSED AND ADOPTED by the Butte County Board of Supervisors this 28th day of May, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Tod Kimmelshue, Chair
Butte County Board of Supervisors
ATTEST:

Andy Pickett, Chief Administrative Officer
and Clerk of the Board of Supervisors
By: _____________________________
Deputy




 

  

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Condensing charges and
removing all bracketed
charges and including all
materials charged at the
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A,B,C and D with a
minimum charge of $12
Changing the Stumps
(I) charge to normal
tipping fee + special
handling fee for
stumps grater than
24" diameter and
removing the $10
stump fee
Removing Bulky Items
(F). Items will be
charged at the normal
tipping rate excluding
mattresses and box
springs they will
remain the same.

Tipping fee
increasing from
$42.11 to $51.80




 

  

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tires on line 1. and 2.
from $2 to $4 and from
$4 to $8
Removing Overweight
charge
Increasing rate to $10
from $8.11
Adding:

Dead Animal- tipping fee
+special handling
Soil Evaluation Fee- TBA

DEPARTMENT OF PUBLIC WORKS
7 County Center Drive, Oroville, CA 95965
(P) 530.538.7681 (F) 530.538.7171
Description Amount Per Authority
$12.00 Vehicle
$51.80 Ton
$0.00
Item

1. Mattresses, Box Springs (Residential)

2. Mattresses, Box Springs (Commercial) $9.00
Item
Item
Per item, $30 per item after two. Refrigerators, freezers, air-conditioning units, ice makers, water coolers. $0.00
$0.00
$0.24
Ton
E. Cathode Ray Tubes and Electronics:

Televisions and Computer Monitors
Other Small Electronic Waste (Dimensions not exceeding
24" - VCRs, Microwaves, Stereos, etc.)
Other Large Electronic Waste (Dimensions over 24" -
Copiers, Computer Servers, etc.)
E. Stumps
Greater than 24" trunk diameter (Measured above the
rootball)Plus special handling fee.

MASTER FEE SCHEDULE

NEAL ROAD RECYCLING AND WASTE FACILITY GATE FEES
$15.00
A. All Garbage, Trash, Debris, Refuse, Concrete,
Asphalt, Soil and Organic Waste.

Minimum Charge
A. Scrap Metal
B. Freon Containing Units (Limit 2/Visit)
C. Mattresses, Box Springs
Item
Item
Pound
Load
$3.50
G. Tires
Tires with rims charged double fee. Limit - 9 tires per vehicle unless accompanied by Waste Tire Manifest. $4.00 Tire
$8.00 Tire
$13.00 Tire
$200.00 Tire
Up to 36" O.D.
36" to 48" O.D.
48" to 60" O.D.

Over 60" or Large Loads
Cut Tires (Split, sliced, or quartered) $200.00 Tire
$71.11 Ton
$60.00 Load
Occurrence
$45.00
$68.00
$0.00
$0.16 Lineal Foot
H. Weighmaster Certificate
I. Septage
J. Special Handling
Special Handling
$7.88 Occurrence
Request by appointment. (NF-Asbestos, large stumps or other loads requiring immediate cover or Landfill Personnel assistance.) $51.80+ $60.00
Neal Road Recycling and Waste Facility Gate fees effective July 1, 2024 K. Un-tarped Load Fee
L. Dead Animal
M. Commercial Hauler Prohibited Waste Extraction
N. Soil Evaluation Fee
O. Credit Application Fee -Administration
Per Individual
Per Corporation
K. Flourescent Tubes
0-32 Lineal Feet
>32 Lineal Feet
When commercial accounts are set up with the Department, there is the option to obtain an radio-frequency identification (RFID) tag which allows vehicles to pass faster through the scale system. This is an optional device for commercial account holders. $10.00
$51.80 ton + $60
$15.00
$185.00
Load
Occurrence
Occurrence

DEPARTMENT OF PUBLIC WORKS
7 County Center Drive, Oroville, CA 95965
(P) 530.538.7681 (F) 530.538.7171
Description Amount Per
$13.00 Load
$56.18 Ton
$0.00
Item

1. Mattresses, Box Springs (Residential)

2. Mattresses, Box Springs (Commercial) $9.00
Item
Item
$0.00
$0.24
Ton
H. Cathode Ray Tubes and Electronics:

Televisions and Computer Monitors and other Small Electronic Waste (Dimensions not exceeding 24" - VCRs, Microwaves, Stereos, etc.) Other Large Electronic Waste (Dimensions over 24" -Copiers, Computer Servers, etc.)
I. Stumps
Greater than 24" trunk diameter (Measured above the rootball)Plus $60 special handling fee.

MASTER FEE SCHEDULE

NEAL ROAD RECYCLING AND WASTE FACILITY GATE FEES
($30 per item after two. Refrigerators, freezers, air-conditioning units, ice makers, water coolers.) G. Mattresses, Box Springs
Item
Pound
Ton
$3.50
J. Tires
Tires with rims charged double fee. Limit - 9 tires per vehicle unless accompanied by Waste Tire Manifest. $4.00 Tire
$8.00 Tire
$13.00 Tire
$200.00 Ton
Up to 36" O.D.
36" to 48" O.D.
48" to 60" O.D.

Over 60" or Large Loads
Cut Tires (Split, sliced, or quartered) $200.00 Ton
$71.11 Ton
$60.00 Load
K. Weighmaster Certificate
L. Septage
M. Special Handling
$7.88 Occurrence
(Requiring immediate burial or Landfill Personnel assistance.) $48.64
N. Un-tarped Load
O. Dead Animal (Plus $60 special handling fee.)
P. Commercial Hauler Prohibited Waste Extraction
Q. Soil Evaluation
R. Credit Application
$10.00
$48.64
$15.00
$185.00
$45.00
$68.00
Load
Occurrence
Occurrence
$42.11 Ton
A. All Garbage, Trash, Debris, and Refuse
Minimum Charge
B. Green & Wood Waste
C. Clean Asphalt, Soil, and Concrete
D. Scrap Metal
E. Appliances
(Washers, dyers, stoves, water heaters, and dishwashers) F. Freon Containing Units
$0.00 Ton
Ton
Occurrence
Neal Road Recycling and Waste Facility Gate fees effective October 1, 2025 $0.00
$0.16 Lineal Foot
Per Individual
Per Corporation
S. Flourescent Tubes
0-32 Lineal Feet
>32 Lineal Feet
$15.00
$6.00

In consideration ofthe mutual covenants in this Agreement, as amended and restated, and intending to be legally bound, the parties agree as follows:

AMENDED AND RESTATED AGREEMENT

BETWEEN THE CITY OF GRIDLEY AND
USA WASTE OF CALIFORNIA, INC.,

FOR COLLECTION OF SOLID WASTE, GREEN WASTE, RECYCLABLES, AND

TRANSFER STATION OPERATION SERVICES

FRANCHISE AGREEMENT

1.1. Act. Act means the California Integrated Waste Management Act of 1989, California Public Resources Code (“PRC”) sections 40000 et seq., as amended, supplemented, superseded, and replaced by the California legislature from time to time. All state code references are to the PRC unless otherwise noted. In the event of any inconsistency between the definitions set forth below and those in the PRC or the California Code of Regulations (“CCR”) related to solid waste, the PRC and/or the CCR shall prevail.

1.2. Applicable Law. Applicable Law means all laws, ordinances, municipal code, resolutions, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the collection, handling, processing, and disposition of Franchise Materials that are in force on the Effective Date and as they may be enacted, issued or amended during the term ofthis Agreement.

1.4. Bulky Waste. Bulky Waste means large household items that do not properly fit in the Customer's Cart, or bundled or bagged Solid Waste, that do not exceed four feet by four feet by two feet (4'x4’x2’) and weigh no more than sixty (60) pounds, which are attributed to the normal activities of a Single-Family Premises. Such materials may include furniture, area and floor rugs properly prepared (cut and bundled), mattresses (must be wrapped in plastic), appliances, and tires without rims. All liquids must be

1.3. Bins. Bins shall mean those containers provided by the Company for Commercial Customers and Multiple-Family Dwellings. The Bins are oftwo types: (i) Bins which are picked up by trucks designed for Solid Waste, C&D and Recycling by means of front-loading apparatus; and (ii) roll-offBins (also known as a Debris Box or Drop Box) (which are usually much larger in size).

1. DEFINITIONS. For purposes ofthis Agreement the following words or phrases shall have the following meanings.

THIS AMENDED AND RESTATED AGREEMENT (this “Agreement”) is made and entered into effective as ofMArMl , 202^f between the City of Gridley (the “City”), and USA Waste ofCalifornia Inc. (the “Company”). Unless otherwise specified in this Agreement, any action authorized, or required to be taken by the City may be taken by the City Council (the “Council”) or by the City Administrator.

1.5. City Representative. City Representative means the City Administrator, or designee.

1.12. 1.13.

Compactor. Compactor means a compacting unit that loads a detachable or nondetachable Bin or Debris Box. The detachable or non-dctachable Bin or Debris Box serves as a receptacle of Solid Waste, and has a capacity of one (1) cubic yard or larger.

The Bin or Debris Box is picked up by a collection vehicle for emptying at a separate location.

C ompany Service Fee. Company Service Fee means the compensation provided to the Company for services performed pursuant to this Agreement.

1.9. Commercial Premises. Commercial Premises shall mean all industrial, manufacturing, warehouse, wholesale or retail stores, service establishments, professional offices, other business establishments, and government facilities and schools and construction sites, and Multiple-Family Dwellings.

1.8. Commercial Customer. Commercial Customer is a Customer that receives Commercial Service including, but not limited to, those Multiple-Family Dwellings and Mobile Home Park Customers that use Bin service.

1.6. Cart. Cart means an industry standard receptacle for disposal of Franchise Materials, in a range ofsizes including approximately 35, 64, or 96 gallons. A Cart will have wheels, a handle for ease of movement and a fitted, attached lid, and is designed to be dumped mechanically into a Solid Waste or Recyclables collection vehicle.

1.7. Collection or Collection Service. Collection or Collection Service shall mean all or any part ofthe activities involved in the Collection of Franchise Materials specified in this Agreement and its transportation to and disposal at a Disposal Site or Recycling facility. drained; no item may contain Freon. Bulky Waste excludes any Excluded Waste, as well as automotive parts, tree stumps, oil and gas, propane tanks, C&D Debris, and batteries.

1.14. Construction and Demolition Debris or C&D. Construction and Demolition Debris or C&D has the meaning provided in Title 14, Division 7, Section 17388(c) of the CCR or successor laws and regulations as may be amended from time to time, but not including any Excluded Waste.

1.11. Commercial Service. Commercial Service means Bin or Cart service provided under this Franchise to Commercial Premises and Bin service provided to MultipleFamily Dwellings and Mobile Home Parks.

1.10. Commercial Recycling. Commercial Recycling means the collection, processing and marketing ofthose Recyclable Materials that are collected from Commercial Customers under this Franchise on an exclusive basis.

1.15. 1.16.

1.17. 1.18.

1.19. Discretionary Adjustment. Discretionary Adjustment is defined in Section 6.5.

1.20. Disposal Fees. Disposal Fees shall mean the charges imposed by the Disposal Disposal Site. Disposal Site has the meaning provided in PRC Section 40122 or

1.23.

Customer. Customer means an ifidividual or entity that receives Franchise Services provided by the Company. Customer shall also mean the person, organization or corporation receiving Disposal service for Franchise Materials to which billing statements are sent. Customer also means those Generators of Recyclable Materials in the Service Area to whom the Company provides and the Customer pays for Collection Service under this Agreement.

Curb or Curbside. Curb or Curbside shall mean that pail ofthe homeowner's property, within five feet ofthe Public Street or alley without blocking sidewalks, driveways or on-street parking. If extraordinary circumstances preclude such a location.

Curbside shall be considered a placement suitable to the resident, convenient to the Company’s equipment, and mutually agreed to by the homeowner and the Company.

Effective Date. Effective Date means January 1,2024, the date that Franchise Services shall commence under this Agreement, as amended.

CPI Adjustment. CPI Adjustment means the annual Service Rates adjustment as specified in Section 6.2.

1.21. Site.

Debris Box/Temporary Bins. Debris Box means a receptacle for Solid Waste and C&D having a capacity oftwenty (20) cubic yards or greater that is picked up in its entirety by a dedicated truck for emptying at a separate location. Also known as a rolloffbox or drop box. Temporary Bins or “temp bins” will be containers with a capacity greater than a 96 gallon cart and less than the twenty cubic yard debris box.

Disposal. Disposal has the meaning provided in PRC Section 40120.1 or successor laws and regulations as may be amended from time to time.

1.22. successor laws and regulations as may be amended from time to time.

1.24. Electronic Waste or E-Waste. Electronic Waste or E-Waste means waste containing or consisting of electronic devices and components, such as computers, monitors, terminals, computer cards and components, computer peripheral devices, main frame computers, keyboards, mice, printers and scanners, mini-systems, power supply units, servers, connectors/cables, storage discs, consumer electronics, printed circuit boards, televisions, chips and components, cellular and other phones, telecommunications equipment, and fax machines and copiers, but not including Excluded Waste.

1.30. Fuel Cost Adjustment. Fuel Cost Adjustment is defined in Section 6.3.

1.31. 1.32.

Green Waste. Green Waste means all tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, and similar materials that fit into a Green Waste Cart, but not including Excluded Waste or items with a diameter greater than 10 inches.

Generator. Generator has the meaning used in the laws governing Hazardous Waste, but applies in this Agreement not only to Hazardous Waste but also to all other materials.

1.25. Excluded Waste. Excluded Waste means Hazardous Waste, Medical and Infectious Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that Company reasonably believes would, as a result of or upon disposal, be a violation of Applicable Law, including land use restrictions or conditions, waste that cannot be disposed of in Class III landfills, waste that in Company’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Company or City to potential liability, and Special Waste; not including de minimis volumes or concentrations of waste of a type and amount normally found in residential solid waste after implementation of programs for the safe collection, recycling, treatment and disposal of batteries and paint in compliance with PRC 41500 and 41802.

1.28. Franchise Materials. Franchise Materials means all Solid Waste, Recyclable Materials, Construction & Demolition Debris and Green Waste generated in the Service Area and included within the Franchise. At the Company's option, “Franchise Materials" shall also include any other materials that can now or in the future be disposed ofin Class III landfills. It is the intention ofthe Parties to maximize the scope ofthe Company’s exclusive franchise within the Service Area by including within the definition of “Franchise Materials" those materials that can be safely Collected.

Transported, Disposed of or Recycled using commercially reasonable methods.

1.29. Franchise Services. Franchise Services means all ofthe duties and obligations of the Company hereunder as stated in this Agreement. Company shall notify the City should there be more than a 24-hour delay in the service schedules included in this Agreement or as amended to this Agreement.

1.33. Green W aste Processing Facility. Green Waste Processing Facility means the facility(ies) used by the Company for handling, processing, and preparing collected Green Waste for marketing.

1.27. Franchise Fee. Franchise Fee means an amount paid to the City by Company for the right to provide Collection Services, as further agreed in Section 3.1 ofthis Agreement.

1.26. Franchise. Franchise means the rights granted to the Company under the terms and conditions ofthis Agreement.

1.34. Gross Revenues. Gross Revenues has the meaning provided in Section 3.1

1.35. 1.37.

1.40. 1.42. Parties. Parties mean the City and the Company.

1.43. PRC. PRC has the meaning provided in Section 1.1.

Private Drive(s). Private Drive(s) shall mean a privately owned or maintained

1.45.

Private Road(s). Private Road(s) shall mean a privately owned or maintained way that allows for access by a small wheel base service truck and which serves four or more Residences.

Inaccessible Area. Inaccessible Area shall mean any road, alley or property that does not allow safe access, turn-around, or clearance for standard collection vehicles.

Multiple-Family Dwellings. Multiple-Family Dwellings means any building or structure, or portion thereof used for residential purposes and having four (4) or more distinct living units. Multiple-Family Dwellings, at the Owner’s request, may be provided with Residential Service using Carts or Commercial Service using Bins.

1.44. way.

Hazardous Waste. Hazardous Waste has the meaning provided in PRC Section 40141 or successor laws and regulations as may be amended from time to time.

1.39. Mobile Home Parks. Mobile Home Parks means a site at which mobile home spaces are rented for residential use. Mobile Home Parks, at the Owner's request, may be provided with Residential Service using Carts or Commercial Service using Bins.

1.38. Medical and Infectious Waste. Medical and Infectious Waste means biomedical waste generated at residences in excess of legal limits or at hospitals, public or private medical clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, veterinary facilities and other similar establishments.

1.36. Household Hazardous Waste (or HHW). I lousehold I lazardous Waste shall have the meaning set forth in California Health and Safety Code Section 25218 and in Title 14, CCR, Section 18502 or successor laws and regulations as may be amended from time to time, but not including any Excluded Waste.

1.41. Owner. Owner shall mean the person, organization or corporation holding legal title to the real property constituting the Residential Premises to which Collection Service for Franchise Materials is provided. For the purposes of provisions in this Agreement pertaining to the sending of notices, billings or other communications by Company to an Owner, Company may regard as Owner the person, organization, corporation or other entity shown in the records ofthe assessor of Nevada County or as may be indicated by documents recorded in the Nevada County Clerk-Recorder's Office.

1.46. 1.47. Public Street(s). Public Strect(s) shall mean a public way used for public travel.

Recyclable Construction and Demolition Debris or Recyclable C&D.

1.50. 1.53.

Recycling Carts. Recycling Carts shall mean a Recycling Cart or other wheeled Cart owned by the Company, suitable for on-site collection, storage, and set-out of Recyclables.

Recycling Program. Recycling Program shall mean an effort by the City to offer convenient and affordable recycling opportunities to all residents of City.

Processing or Process. Processing or Process shall mean treatment, sorting, or other activities intended to improve the market value of a Recyclable.

1.48. “Recyclable Construction and Demolition Debris” or “Recyclable C&D” means Construction and Demolition Debris or C&D that is disposed ofin a Cart or Debris Box or other receptacle that contains no more than 5% non-Recyclables.

1.55. Residential Customer. Residential Customer is a Customer that receives Residential Service including those Multiple-Family Dwellings and Mobile Home Park Customers that use Solid Waste Cart Service.

1.49. Recycle, Recycling. Recycle, Recycling has the meaning provided in PRC Section 40180 or successor laws and regulations as may be amended from time to time.

1.51. Recyclable Materials, Recyclables. Recyclable Materials or Recyclables means that portion of Solid Waste which is material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace, but not including Excluded Waste. Recyclable means that portion of Franchise Materials which may be separated on a commercially reasonable basis from other Franchise Materials and returned to the economic mainstream in the form ofraw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. As ofthe Effective Date, the Recyclable Materials are as provided in Exhibit 1.

1.52. Recyclables Processing Facility. Recyclables Processing Facility means the facility(ies) used by the Company for handling, processing, and preparing collected Recyclable Materials for marketing.

1.54. Recycling Revenues. Recycling Revenues means all revenues, net of transportation or processing costs, resulting from the sale of Recyclable Materials, Construction and Demolition Debris and Green Waste collected through provision of Franchise Services.

1.56. 1.58.

1.59. 1.60.

1.61. 1.62.

1.63.

Signature Date. Signature Date means the date of execution ofthis Agreement by both Parties.

Single-Family Residence(s). Single-Family Residencc(s) shall mean all one unit houses and mobile homes, any building or structure, or portion thereof, that is used for residential housing purposes and has two (2) or fewer distinct living units.

Self Haul. Self Haul means the transport of Franchise Materials from a residence or Commercial Premises, where the materials being generated are taken directly to an authorized landfill or transfer station. The transport must be accomplished by the resident. Owner or commercial/busincss/industrial entity that generates the Franchise Materials and may not be transported by a company, agent or other third-party hired for such use except as provided in Section 2.3 ofthis Agreement.

Service Area. Service Area shall mean the jurisdictional boundary ofthe City including all areas hereafter annexed or otherwise added to the territorial limits ofthe City.

Service Rates. Service Rates means the Company fees for providing the Franchise Services, as initially set forth in Exhibit 2. The Service Rates include the Franchise Fee.

SB 1383 Regulations. SB 1383 Regulations means to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR., as they may be amended.

Residential Recycling. Residential Recycling means the collection, processing and marketing ofthose Recyclable Materials that are collected from Residential Customers under this Franchise on an exclusive basis.

1.57. Residential Service. Residential Service means Collection Service for Franchise Materials normally provided under this Franchise to all Single-Family Residences and those Multiple-Family Dwellings and Mobile Home Parks that receive Solid Waste Cart Service.

1.64. Solid Waste. Solid Waste shall mean and include all Solid Waste as defined in PRC Section 40191 and regulations or successor laws and regulations as may be amended from time to time generated within the Service Area that can be disposed of in Class III landfills. Excluded from the definition of Solid Waste are Excluded Waste, Bulky Wastes, Special Wastes, Recyclable Materials, Green Waste, and Construction and Demolition Debris. Notwithstanding any provision to the contrary. “Solid Waste" may include de minimis volumes or concentrations ofwaste of a type and amount normally found in residential solid waste after implementation of programs for the safe collection, recycling, treatment and disposal of batteries and paint in compliance with PRC Sections 41500 and 41802.

1.65. 1.66.

1.67. State. State means the State of California.

1.68. Ton. Ton means a “short ton” of 2.000 pounds.

Transfer Station Operations/Transfer Station Operation Services. Transfer Transport. Transport means the hauling of Franchise Materials to a Disposal Uncontrollable Circumstances. Uncontrollable Circumstances are any acts of 2 GRANT OF EXCLUSIVE AGREEMENT.

2.1. SCOPE OF EXCLUSIVE FRANCHISE.

Special Services. Special Services are specific service-related activities, including without limitation lock, gate, and long walk services, or other services for which no Service Rate is established by the City, that is provided by the Company to Customers for which the Company may charge an additional fee.

1.70. Site.

Special Waste. Special Wastes include flammable waste, waste transported in a bulk tanker, liquid waste, sewage sludge, pollution control process waste, residue and debris from the cleanup of a hazardous material spill or release of chemical substances, commercial products or any other Special Wastes; contaminated soil, waste, residue, debris and articles from the cleanup of a site or facility formerly used for the generation, storage, treatment. Recycling, reclamation, or Disposal of any other Special Wastes; dead animals, manure, waste water, explosive substances, and radioactive substances.

1.69. Station Operations/Transfer Station Operation Services means all ofthe services associated with the operation ofthe Ord Ranch Road Transfer Station, as provided in this Agreement.

1.71. God, such as landslides, lightning, fires, storms, Hoods, pestilence, freezing, and earthquakes; explosions, sabotage, civil disturbances, acts of a public enemy, wars, blockades, riots, labor unrest, eminent domain, condemnation or other taking, or other events of a similar nature, not caused or maintained by the City or Company, which event is not reasonably within the control ofthe party claiming the excuse from its obligations due to such event, to the extent such event has a material adverse effect on the ability or costs of a Party to perform its obligations thereunder. Events which could have been prevented by reasonable precautions, including compliance with agreements and applicable laws, shall not be considered an Uncontrollable Circumstance. Labor unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other concerted job action lawfully conducted by the Company’s employees or lawfully directed at the Company, or a subsidiary, are not considered Uncontrollable Circumstances, but shall excuse performance to the extent provided in Section 9.5.

2.2. COMPANY RESPONSIBILITY. The Company hereby accepts and assumes responsibility to perform and fulfill all the terms, covenants, conditions, and obligations required under this Agreement. Company agrees to perfomi all ofits obligations under this Agreement for the term hereof. Company shall furnish all the labor and equipment necessary for the Collection, Processing, Transport and Disposal of all Franchise Materials, subject to the terms, conditions and provisions ofthis Agreement.

2.3.1. Compactors for Rccyclables. Rental, lease or sale of Compactors, provided that the Company shall have the exclusive right to provide hauling services for Compactors unless used exclusively for the collection of Recyclable Materials, including Recyclable C&D, in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment.

2.1.3. The Company shall dispose of all Solid Waste collected under this Agreement at the designated Disposal Site. The Disposal Site the Company has designated shall be the Neal Road Landfill owned by the County of Butte. The Company reserves the right to direct the Company to dispose of Solid Waste at a particular licensed Disposal Site (which must be a Class III disposal site) suitable for municipal waste.

2.1.1. City hereby grants to Company, for the term hereinafter set forth, the exclusive right and privilege to collect and transport Franchise Materials to any legally authorized Disposal Site, Green Waste Processing Facility, or Recyclablcs Processing Facility, unless otherwise exempt from Collection pursuant to the terms and conditions of Section 2.3 ofthis Agreement. Participation in the Company’s Solid Waste, Recycling and Green Waste programs shall be mandatory for Residential and Commercial Customers.

2.3. EXCEPTIONS TO FRANCHISE. The following services and materials are expressly excluded from this Agreement. However, the granting ofthis Franchise shall not preclude an Owner or Customer from contracting for the categories ofservices and materials described below to be delivered to, collected and/or transported by the Company or others, provided that nothing in this Franchise is intended to or shall be construed to excuse any person from any authorization from the City which is otherwise required by law.

2.1.2. The Company shall have the exclusive right and responsibility for the operation of the Ord Ranch Road Transfer Station, in accordance with the provisions ofthis Agreement, for the term ofthis Agreement and any extensions thereof.

2.3.2. Self-Hauling. Self-I laul materials, which are delivered by a person or entity directly to a disposal facility. Persons or entities cannot subcontract any portion of the Self-Haul to any entity other than the Company. This provision does not allow persons or entities to purchase, borrow or rent Bins or Carts or other containers and have them collected by a third-party.

2.4. TERM OF AGREEMENT. The initial tenn ofthis Agreement shall commence January 1, 2024 and end at the close of business on December 31,2028. Thereafter, the parties may agree in writing to extend the term for up to two five-year periods.

2.3.8. Governmental Entities. The Company's exclusive Franchise in this Agreement shall not include governmental entities if and to the extent the City has no legal power to include them in the exclusive Franchise.

2.5. TITLE TO FRANCHISE MATERIALS. It is expressly understood that all Franchise Materials collected under this Franchise shall remain the property ofthe resident or commercial Owner until such time as they arc collected for Disposal, Transport or Recycling. That ownership shall transfer to Company once the Franchise Materials are collected. The Company is hereby granted the right to retain, dispose of, and otherwise use such Franchise Materials, or any part thereof, in any fashion or for any lawful purpose desired by the Company, and to retain any benefit or profit resulting therefrom.

2.3.3. Incidental Hauling. Materials which would otherwise constitute Franchise Materials that arc removed from a premise by a company as an incidental part ot a gardening, landscaping, tree trimming, cleaning, maintenance, construction, handyman, tractor or similar service offered by that company rather than as a waste hauling service. This provision docs not allow the hauling of materials by any business hired solely for the purposes of hauling and/or removal of debris.

2.3.4. Construction and Demolition Debris. Construction and Demolition Debris materials removed from a work or construction/demolition site by a company or business generating the C&D and Self Hauled or incidentally hauled as provided in Sections 2.3.2 and 2.3.3.

2.3.7. Commercial Recyclables. Commercial Recyclable Materials in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment.

2.3.6. Residential Recyclables. Recyclable Materials donated or sold by Residential Customers from Single-Family Residences or Multiple-Family Dwellings, or from Mobile Home Parks, to any party oftheir choice, in which at least ninety-five percent (95%) of each load is actually Recycled and that the Generator donated or for which the Generator receives payment.

2.3.5. Recyclable C&D. Recyclable C&D, in which at least ninety-five percent (95%) of each load is actually Recycled and for which the Generator receives payment. 2 6 ANTI-SCAVENGING ENFORCEMENT; UNAUTHORIZED COMPACTION.

The City will cooperate with the Company in the Company’s enforcement ofthe exclusive rights granted to the Company in this Agreement and anti-scavenging laws, including without limitation the institution of civil actions against a person or entity alleged to have violated the exclusive rights created in Section 2.1 ofthis Agreement or

3. FRANCHISE FEE.
4 SERVICES OF COMPANY

3.2. UNDER AND OVER PAYMENTS. If the Company fails to pay the entire amount of compensation clue the City through error or otherwise, the difference due the City shall be paid by the Company within thirty (30) days from discovery ofthe error or determination ofthe correct amount. Any overpayment to the City through error or otherwise shall be offset against the next payment due from the Company. the anti-scavenging provisions of PRC Section 41950 (which provides for treble damages, as measured by the value ofthe material removed, or a civil penalty of not more than S2.000.00. whichever is greater, for each unauthorized removal, in accordance with PRC Section 41953). IfCity is required to take administrative, law enforcement, or other legal action against any person who infringes on the Company’s exclusive rights, the Company shall reimburse the City for all reasonable costs, stafftime and legal costs related to any such action. Nothing herein precludes the Company from taking such legal action against third parties as it deems appropriate to protect the exclusive nature of its franchise.

Customers shall not permit Franchise Materials to be compacted in Company-provided Bins or Debris Boxes, unless such compaction is provided by Company under this Agreement.

3.3. FINANCIAL REVIEW. The relevant books and records ofthe Company shall be subject to review and inspection for the purpose ofreviewing billing operations, accounts receivable and customer service, by either party, its auditors or other agents, at any reasonable time upon reasonable notice.

3.1. CITY FRANCHISE FEE. As ofthe Effective Date ofthis Agreement, five percent (5%) of all revenues collected by the Company resulting from all revenue or compensation to the Company from Service Rates established pursuant to Article 6 for Collection of Solid Waste, including for operation ofthe Ord Ranch Road Transfer Station service and without subtracting the other cost of doing business, on or after the Effective Date ofthis Agreement within the Service Area, but excluding revenue for services provided by the Company prior to the Effective Date and from services other than Collection Services, non-exclusive or excepted services, exempt materials, or sales ofrecycled materials (collectively, “Gross Revenues”), shall be paid by the Company to the City as a Franchise Fee. If the Franchise Fee is increased after the date ofthis Agreement, the Service Rates shall be adjusted in the same manner as adjustments for increases in Disposal Fees as provided in Section 6.4. The Franchise Fee shall be computed and paid on the basis ofthe Company's cash receipts from Gross Revenues after the Effective Date ofthis Agreement. Company shall make payments to City on a quarterly basis within 30 days following the completion of each calendar quarter. The Company shall remit the Franchise Fee as part ofthe quarterly remittance.

4.3. SOLID WASTE COLLECTION.

4.1. SB 1383. City has received a low-population waiver from CaIRccycle pursuant to 14 CCR Section 18984,12(a) and. unless expressly provided in this Agreement, Company is not providing services required by SB 1383 Regulations.

4.3.2. Curbside Single-Family Residence. Company shall, once per week, collect the Solid Waste that has been placed, kept or accumulated in a Cart (other than a Bin) at Single-Family Residences within the Service Area and placed at curbside or roadside prior to Company’s normal weekly collection time, provided that in no event shall Company be required to collect any additional Solid Waste placed at curbside which is not placed in the Cart. The standard service level for a SingleFamily Residence shall be a 64-gallon Cart. The Company may also collect Solid Waste at Single-Family Residences within the Service Area at additional times or in excess volumes for an additional fee as agreed upon in separate contracts between Company and each customer requesting such service.

4.3.3. City Facilities’ Collection. The Company shall collect, transport and dispose of all Solid Waste generated at public facilities identified in Exhibit 3 according to the specified service levels and collection frequency. The Company shall make collections from containers Monday through Friday or on Saturdays following nonworking holidays. Collections from bins and debris boxes shall be scheduled at a time mutually agreed upon by the Company and City. The Company shall provide, at City’s direction, additional Solid Waste services entailing:

4.3.1. Bin Service. Company shall furnish or provide Carts to all Residences and Bins or Carts for collection use, as appropriate, to all Multiple-Family Dwellings that receive Bin service and Commercial Premises that generate Solid Waste within City. The size ofthe Bins and the frequency oftheir collection (which shall not be less than once a week) shall be determined between the Customer and Company.

Bins shall be placed on hard surface locations which are accessible to Company and consistent with applicable municipal code and development approvals. Bins supplied by Company shall, at all times, be maintained by Company in a well-kept appearance. Front load bins must be maintained with lids. Customers shall be responsible for sanitation and deodorizing ofsuch Bins; provided, however.

Company shall provide in its Bin rental contracts for a Bin cleaning service to be performed at the request ofthe Customer for a fee specified in such contract. The initial delivery ofsuch Bins and Carts shall occur as provided in accordance with the implementation schedule agreed upon by the Parties.

4.2. SERVICES PROVIDED BY COMPANY. The Company shall, in accordance with the terms ofthis Agreement, Applicable Law and best industry practices, provide all labor, materials, facilities, services and equipment necessary to Collect, Process, Recycle or Dispose of(as appropriate), market and transport all set out Franchise Materials.

Services not within the scope ofthis Agreement will be provided upon terms and pricing determined by Company.

4.3.3.I.

4.3.3.2. Provision of debris box service as directed by City; and,

4.3.3.3.

4.3.4. Pennanent Containers/Debris Box Service. Company shall provide permanent /debris box Containers for the purpose of Collection of Solid Waste. Company shall deliver to and Collect debris boxes from the location identified by the service recipient. Containers shall be free of graffiti and in good repair. Containers must be clearly marked and identifiable as belonging to Company. Special consideration shall be given when determining the pick-up area for temporary Containers to ensure that the flow oftraffic is not impeded and that it does not result in aesthetic degradation of an area. The designated pick up area, if disputed by service recipient or Company, shall be determined by City. Additionally, if in City's opinion the location of an existing pick-up area is inappropriate, City may require the service recipient or Company to relocate the pick-up area.

At the option ofthe City, exercised in writing, these additional services may be provided at no charge to the City but shall be reimbursed to the Company through the Service Rates charged other service recipients.

4.3.6. Hours ofCollection. Collection Service of all Bins and Cails shall not start before 5:00 a.m. for commercial and 6:00 a.m. for residential or continue after 6:00 p.m., subject to change by action ofthe City Council.

Collection of Solid Waste, Recyclable Materials and Green Waste from City facilities and parks;
Review of plans for land use or property developments with regard to Solid Waste service issues.

4.3.5. Roll-Off Boxes. The Company will provide 10 roll-off box hauls to the City at no additional charge for the purpose of code enforcement and blight abatement within the City. The Company will deliver the boxes within the City as requested by the City. The Company will provide information for code enforcement to discourage the placement of hazardous materials in these abatement boxes; City will be responsible for any hazardous materials placed in the abatement boxes. Should the City decide not to implement this program, it may use the 10 roll-off box hauls for other cleanup programs or for the City's use.

4.3.7. Multiple-Family Dwellings. Multiple-Family Dwellings shall be provided with Solid Waste Service as frequently as negotiated with the Customer but in no event less that once per week, to collect the Solid Waste that has been placed, kept or accumulated in Bins; an exception is where the facility self-hauls and provides proof to the City that all waste materials arc being properly disposed or diverted according to applicable law. Waste Management will work with each complex to customize the appropriate level ofservice. Multiple-Family Dwellings will have the option to

4.4 RECYCLING.

4.3.11. Senior Residential Service. Senior citizens may receive a 35-gallon Solid Waste Cart at the Service Rate provided in Exhibit 2. In order to qualify for the reduced senior Service Rate all inhabitants at the property, shown by driver's license or other identification acceptable to Company, must be sixty-five (65) years of age and older.
select the appropriate cart size or 2, 3, 4, and 6-cubic yard bins for Solid Waste collection. The 6-cubic yard bins will not have wheels.

4.3.10. Clean-Up Event. The Company shall hold one clean-up event per year for the collection of Solid Waste, which shall be open to Residential Customers ofthe Company in the Service Area (one load per Customer). The actual date and time will be set by the Company in coordination with the City at least ninety (90) days in advance. The Company shall reasonably infonn Residential Customers within the Service Area, at least two weeks in advance ofthe clean-up event, ofthe date, time, location and other information pertinent to the clean-up event.

4.4.1. Residential Recycling. The Company shall, once every other week. Collect, Process, Recycle, and Transport all Recyclables from all Residential Customers.

Recycling Carts shall be collected using an automated collection system. The

4.3.8. Commercial Customers. Commercial Customers shall be provided with Solid Waste Service as frequently as negotiated with the Commercial Customer but in no event less that once per week, to collect the Solid Waste that has been placed, kept or accumulated in Bins; an exception is where the facility self-hauls and provides proofto the City that all waste materials are being properly disposed or diverted according to applicable law. Waste Management will work with each Commercial Customer to customize the appropriate level ofservice. Commercial Customers will have the option to select the appropriate cart size or 2, 3, 4, and 6-cubic yard bins for Solid Waste collection. The 6-cubic yard bins will not have wheels.

4.3.9. Cart Replacement. The Company, without expense to the City or Customer, and within seventy-two hours after notice, shall replace Solid Waste Carts that are lost, stolen or damaged, unless due to customer neglect such as putting hot ashes in the Cart in which case the Company may charge the Customer for the retail costs ofthe replacement Cart. In addition, the Company will replace Solid Waste Carts damaged due to normal wear and tear and provide free replacements for graffiti on Solid Waste Carts without charge within 14 days ofthe Customer's or City's request.

Customers will be able to make a change in Cart size or number ofCarts once every twelve months at no additional replacement cost. The Company, without expense to the City or the Customer, and within five working days after notice, shall provide a Solid Waste Cart to a new Residential Customer that has no such Cart or to a new Multi-Family Customer who elects Cart service. The Company shall own and maintain all Solid Waste Carts at its expense, except as provided in this paragraph.