Hanford City Council
January 20, 2026

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-66-
NOTE 7 - PENSION PLAN (Continued)
Benefits Provided (Continued)
The Plan’s provisions and benefits in effect as of June 30, 2025, are summarized as follows:

PEPRA
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 52
Monthly benefits as a % of eligible compensation 2.000% - 3.000% 1.000% - 2.500% Required employee contribution rates 8.00% 7.50%
Required employer contribution rates 13.94% 8.25%
PEPRA
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 50
Monthly benefits as a % of eligible compensation 2.400%-3.000% 2.000% - 2.700% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 26.29% 14.72%
PEPRA
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 50
Monthly benefits as a % of eligible compensation 2.400%-3.000% 2.000% - 2.700% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 26.29% 14.72%
Miscellaneous
Safety Police
Safety Fire

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-67-
NOTE 7 - PENSION PLAN (Continued)
As of the June 30, 2023 actuarial valuation, the following current and former City employees were covered by the agent-multiple employer miscellaneous plan:

Inactive employees or beneficiaries
currently receiving benefits 237
Inactive employees entitled to but
not yet receiving benefits 237
Active employees 199
Total 673
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2025, were $2,317,545 for the Miscellaneous plan and $2,496,401 for the Safety plan.

Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-68-
NOTE 7 - PENSION PLAN (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:

Valuation date June 30, 2023
Measurement date June 30, 2024
Actuarial cost method Entry Age Actuarial Cost Method
Asset valuation method Fair value of assets
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Mortality rate table (1) Derived using CalPERS' membership data for all funds Post retirement benefit The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 Experience Study report from November 2021 that can be found on the CalPERS website.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a buildingblock approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-69-
NOTE 7 - PENSION PLAN (Continued)
The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation Real Return1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%) 2
Figures are based on the 2021-22 Asset Liability M anagement study. 1 An expected inflation of 2.30% used for this period.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-70-
NOTE 7 - PENSION PLAN (Continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

Proportionate Share of Net Pension Liability
The following table shows the Safety Plan’s proportionate share of the net pension liability over the measurement period.

Miscellaneous Safety
Proportion - June 30, 2023 N/A 0.15592%
Proportion - June 30, 2024 N/A 0.14964%
Change - Increase (Decrease) N/A -0.00628%
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City's proportionate share of the net pension liability/(asset) for the Safety Plan as of June 30, 2023 and 2024 measurement dates was as follows:

Total Fiduciary Net Pension
Pension Liability Net Position Liability
Safety
Balance at: 6/30/23 (Valuation date) 116,617,770 $ 104,962,766 $ 11,655,004 $ Balance at: 6/30/24 (Measurement date) 125,137,878 114,228,224 10,909,654 Net changes during 2023-2024 8,520,108 $ 9,265,458 $ (745,350) $ Increase(Decrease)

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-71-
NOTE 7 - PENSION PLAN (Continued)
Change in agent-multiple employer plan
The following table shows the changes in net pension liability of the Miscellaneous Plan over the measurement period:

Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability /
(Asset)
(c) = (a) - (b)
Balance at: 6/30/2023 (VD) 127,755,342 $ 114,855,862 $ 12,899,480 $ Changes recognized for the
measurement period:

Service cost 2,781,409 - 2,781,409
Interest on the Total
Pension Liability 9,014,897 - 9,014,897
Differences between expected and
actual experience 5,067,278 - 5,067,278
Contributions from the employer - 1,897,514 (1,897,514) Contributions from employees - 1,103,577 (1,103,577) Net investment income - 10,794,112 (10,794,112) Benefit payments, including refunds of employee contributions (7,125,290) (7,125,290) - Administrative expense - (93,459) 93,459 Net Changes during 2023-24 9,738,294 6,576,454 3,161,840 Balance at: 6/30/2024 (MD) 137,493,636 $ 121,432,316 $ 16,061,320 $ 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-72-
NOTE 7 - PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s net pension liabilities as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 34,601,031 $ 28,003,368 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 16,061,320 $ 10,909,654 $
1% Increase 7.90% 7.90%
Net Pension Liability/(Asset) 838,561 $ (3,070,601) $
Amortization of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs.

The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-73-
NOTE 7 - PENSION PLAN (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2023), the City’s net pension liabilities were $12,899,480 and $11,655,004, for the Miscellaneous and Safety plans, respectively. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $4,886,317 and $1,484,807 for the Miscellaneous and Safety Plans, respectively. The pension expense of the Miscellaneous Plan was as follows:

Description Amount
Service cost 2,781,409 $
Interest on total pension liability 9,014,897 Recognized changes of assumptions 483,691 Recognized differences between expected and actual experience 974,192
Employee contributions (1,103,577) Projected earnings on pension plan investments (7,775,322)
Recognized difference between projected
and actual earnings on plan investments 417,568 Administrative expense 93,459 Total pension expense 4,886,317 $ As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
Changes of assumptions 435,320 $ - $
Differences between expected and actual experiences 3,659,701 305,322 Net differences between projected and actual earnings on investments 1,818,159 - Pension contributions subsequent to measurement date 2,317,545 - Total 8,230,725 $ 305,322 $ Deferred Outflows Deferred Inflows
Changes in assumptions 268,791 $ - $
Differences between expected and actual experience 890,325 28,948 Net differences between projected and actual earnings on investments 527,323 - Adjustment due to differences in proportions 3,078,996 2,455,558 Change in employer's proportion 1,029,487 4,267,476 Pension contributions subsequent to measurement date 2,496,401 - Total 8,291,323 $ 6,751,982 $ Safety Plan
Miscellaneous Plan

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-74-
NOTE 7 - PENSION PLAN (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $2,317,545 and $2,496,401, for the Miscellaneous and Safety Plans, respectively reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year.

Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal year
ended June 30 Miscellaneous Plan Safety Plan
2026 1,593,538 $ (1,014,507) $
2027 4,211,412 420,788
2028 406,666 (182,914)
2029 (603,758) (180,427)
Total 5,607,858 $ (957,060) $
Deferred Outflows (Inflows) of Resources
Payable to the Pension Plan
The City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2025.

NOTE 8 - OTHER POST EMPLOYMENT HEALTH CARE BENEFITS
Plan Description: the City participates in the CalPERS medical program under the Public Employees’ Medical and Hospital Care Act (PEMHCA). As such, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. The City has selected the equal contribution method, where it resolves to contribute the same amount for retirees as is contributed toward active employee medical plan coverage. The City currently pays the minimum employer contribution (MEC) for both active and retired employees as well as their survivors, if covered at the time of the employees’ death. The MEC is $119 per month for 2025. The plan does not issue separate standalone financial statements.

Dental insurance is available to retired employees as well, though the cost of coverage is paid entirely by the retiree. Once the retiree reaches age 65 the City no longer allows the retiree to stay on the dental plan.

The above coverage is available for employees who satisfy the requirements for retirement under CalPERS (attained age 50 with 5 years of State or public agency service or approved disability retirement). An employee cannot terminate employment before meeting the age condition and be entitled to receive benefits. As of January 1, 2016, the City terminated its healthcare contract with CalPERS. No future retirees are eligible for healthcare coverage or benefits from the City toward the cost of retiree medical coverage.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-75-
NOTE 8 - OTHER POST EMPLOYMENT HEALTH CARE BENEFITS (Continued) Employees Covered
As of the June 30, 2025 actuarial valuation, the following current and former City employees were covered by the OPEB plan membership:

Inactive employees or beneficiaries currently receiving benefit payments 42 Inactive employees entitled to, but not yet receiving benefits 13 Active employees 297
Total employees covered by the OPEB plan membership 352 Contributions
Currently the City funds retiree healthcare benefits on a pay-as-you-go basis, paying a maximum of $119 per month for retiree benefits from the City funds as they are due with no prefunding for future years. The City recognizes expenditures for its share of the annual premiums as these benefits become due. For fiscal year 2024-2025, the City paid approximately $47,600 for benefits of 34 retirees or their beneficiaries receiving benefits.

Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2025 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2025, based on the following actuarial methods and assumptions.

Valuation Date June 30, 2025
Funding Method Entry Age Normal Cost, level percent of pay Asset Valuation Method Market value of assets
Discount Rate 5.20% as of June 30, 2025

3.97% as of June 30, 2024
Participants Valued
Salary Increase
General Inflation Rate 2.5% per year
Mortality CalPERS 2021 Experience Study
Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2017 Healthcare Trend 6.0% in 2026, step down to 3.9% by 2075 Only current active employees, retired participants and covered dependents are valued. No future entrants are
included.

3.0% per year. Since benefits do not depend on salary, this is used to allocate the cost of benefits between service years.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-76-
NOTE 8 - OTHER POST EMPLOYMENT HEALTH CARE BENEFITS (Continued) Discount Rate
The discount rate used to measure the total OPEB liability was 5.20 percent. The projection of the cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB City’s net position was projected to be available to make all projected OPEB payments for inactive employees and beneficiaries based on the “pay as you go” annual contributions.

Changes in the total OPEB Liability
The change in the total OPEB liability for the year ended June 30, 2025 is as follows:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30, 2024 4,169,018 $ - $ 4,169,018 $
(6/30/24 measurement date)
Changes in the year:

Service cost 291,017 - 291,017
Interest 174,096 - 174,096
Employer contribution - 149,503 (149,503) Benefit payments (149,503) (149,503) - Changes in assumptions (834,291) - (834,291) Plan experience (759,886) - (759,886) Net change (1,278,567) - (1,278,567) Balance at June 30, 2025 (6/30/25 measurement date) 2,890,451 $ - $ 2,890,451 $
Increase (Decrease)
Sensitivity of the total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Plan as of the measurement date, calculated using the discount rate of 5.20%, if it were calculated using a discount rate that is 1 percentage-point lower (4.20%) or 1 percentage-point higher (6.20%) than the current rate:

Discount Rate
-1% (4.20%)
Current
Discount Rate

5.20%
Discount Rate
+1% (6.20%)
Total OPEB Liability 3,153,174 $ 2,890,451 $ 2,652,853 $

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-77-
NOTE 8 - OTHER POST EMPLOYMENT HEALTH CARE BENEFITS (Continued) Change in Assumptions
The discount rate changed from a rate of 3.97% on June 30, 2024, to a rate of 5.20% on June 30, 2025.

Sensitivity of the total OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the total OPEB liability of the Plan if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1 percentage-point higher than the current rate:
1% Decrease
Current Trend
Rate 1% Increase
Total OPEB Liability 2,612,867 $ 2,890,451 $ 3,220,531 $ OPEB Expense
As of the start of the measurement period (July 1, 2025), the total OPEB liability was $4,169,018.

For the measurement period ended June 30, 2025 (the measurement date), the City incurred an OPEB expense of $501,021. The OPEB expense was as follows:

Description Amount
Service cost 291,017 $
Interest cost 174,096 Assumption changes 1,331 Plan experience 34,577 Total OPEB expense 501,021 $ As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to the total OPEB liability as follows:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 551,299 $ 791,631 $ Changes in assumptions or other inputs 937,593 1,316,860 Total 1,488,892 $ 2,108,491 $

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-78-
NOTE 8 - OTHER POST EMPLOYMENT HEALTH CARE BENEFITS (Continued) Other amounts reported as deferred inflows of resources related to OPEB will be recognized in the future OPEB expense as follows:

Fiscal Year ended
June 30,
Recognized Net Deferred
Outflows (Inflows) of
Resources
2026 35,908 $
2027 35,908 2028 35,908
2029 35,908
2030 (30,612) Thereafter (732,619) $ (619,599)
NOTE 9 - RISK MANAGEMENT
The City participates in a public entity risk pool for workers’ compensation and general liability insurance above our self-insured retention limits. For workers’ compensation, the City is individually liable for claims up to $250,000 per occurrence. Coverage in excess of the City’s self-insured retention is then obtained through Public Risk Innovation, Solutions, and Management (PRISM) excess workers’ compensation program up to the statutory limits. The City participates in a risk pool for general liability claims through PRISM above the City’s self-insured retention of $100,000 up to $25,000,000 per occurrence, subject to certain exclusions. For both excess workers’ compensation and general liability covered occurrences, PRISM coordinates reimbursement of costs incurred for covered actions in excess of each member’s self-insured retention. While there were no reductions in excess coverage from the prior year and there were no settlements that exceeded excess pool layer of coverage for the past three fiscal years, given marketing challenges in California, additional coverage exclusions continue to apply.

The City participates in a number of supplemental insurance programs through Alliant. Alliant Property Insurance Program (APIP) is for city owned buildings and structures. In 2022 a city-wide site inspection was conducted to appraise city owned buildings and structures. The APIP deductible is $10,000 per covered occurrence. APIP insurance includes elected coverage for Boiler & Machinery, Cyber Security, and Pollution Coverage. Claim reporting timeframe limitations apply to both Cyber Coverage and Pollution Coverage policies.

Also, the City participates in Alliant’s Motor Vehicle Program (AMVP) in an effort to reduce the cost of replacement values for approximately 90 City owned vehicles and equipment.

Worker’s compensation and general liability claims incurred prior to July 1, 2012 were covered through the City’s participation in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-79-
NOTE 10 - INTERFUND TRANSACTIONS
Interfund transactions are reported as either loans, service provided, reimbursements, or transfers.

Loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

As of June 30, 2025 the City interfund due from/to other funds were as follows:

Due From
Other Funds
Due To
Other Funds
Governmental Funds
General Fund 3,144,260 $ - $
Non-major funds - 96,199 Proprietary Funds
Refuse - 3,012,361 Non-major funds - 35,700 Total 3,144,260 $ 3,144,260 $ These balances are to cover deficit cash balances and for short-term loans.

As of June 30, 2025 the City’s interfund advances to/from other funds were as follows:

Advances To
Other Funds
Advances From
Other Funds
Governmental Funds
Capital Projects Fund 636,692 $ - $
Proprietary Funds
Non-major enterprise funds
Airport fund - 375,468
Intermodal fund - 261,224
Total 636,692 $ 636,692 $
These balances are for long-term financing between funds.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-80-
NOTE 10 - INTERFUND TRANSACTIONS (Continued)
Interfund transfers consist of operating transfers from funds receiving resources to funds through which the resources are to be expended. Interfund transfers for the year-ended June 30, 2025 were as follows:

Transfers In Transfers Out
Major Governmental Funds
General Fund 5,431,606 $ 1,719,428 $
CDBG Home/Housing Fund - 191,073 ARPA Fund - 3,299,497 Measure H Fund - 143,750 Non-major Governmental Funds 299,805 688,123 Proprietary Funds
Water System Fund 5,385,557 5,050,424 Wastewater Fund 3,503,910 3,520,649 Storm Drain Fund 1,391,918 1,045,798
Refuse Fund 11,924 11,924 Non-major enterprise fund types Airport Fund - 109,918 Courthouse Fund 1,250,706 -
Internal Service Funds
Building Fund 22,705 749,451 Fleet Management Fund 4,486,964 5,255,060 Total 21,785,095 $ 21,785,095 $ These balances are for funding of capital projects, operating expenses and debt service payments.

NOTE 11 - DEFICIT FUND BALANCE/NET POSITION
The American Rescue Plan Act Fund has a fund balance deficit of $23,693, mainly attributable to the unearned revenues. The deficient will be recovered as the City continues to spend and earn the revenue.

The Courthouse Square Fund has a fund balance deficit of $36,683, mainly attributable to the due to other funds balance. The deficit will be written off and absorbed by General Fund in FY26 once property has closed escrow.

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-81-
NOTE 12 - EXCESS EXPENDITURES OVER APPROPRIATIONS
For the fiscal year ended June 30, 2025, expenditures exceeded appropriations as follows:

Major Funds:

General Fund
General government (17,526,807) $
Public safety (1,388,562) Public works (345,510) Debt service - principal (382,810) Debt service - interest (6,151) Transportation Development Act Fund General government (5,114)
Measure H Fund
General government (86) Non-major Funds:

Park Impact Fees
General government (3,037) Parking Fund
General government (335) Central Parking and Business Improvement Fund General government (29) Capital outlay (45,000) Fire Protection Impact Fees General government (6,479) Traffic Safety
General government (143) State Gas Tax Fund
General government (6,679) Transportation Impact Fees
General government (44,442) Capital Projects
General government (707) Landscaping Assessment District General government (1,757) Police Protection Impact Fees General government (3,648)

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-82-
NOTE 13 - NET POSITION
Net Investment in Capital Assets
Net position for governmental activities and business-type activities is classified as 1) net investments in capital assets, 2) restricted or 3) unrestricted. Net position that was classified as net investments in capital assets as of June 30, 2025, was determined as follows:

Governmental
Activities
Capital assets, net of accumulated depreciation 167,503,722 $ Less: Lease liability (1,160,951) Subscription liability (929,308) Internal service fund capital assets, net (4,622,802)
Net investment in capital assets 160,790,661 $
Non-major Total
Water System Wastewater Storm Drain Refuse Enterprise Enterprise Fund Fund Fund Fund Funds Funds
Capital assets, net of
accumulated depreciation 55,536,130 $ 52,487,766 $ 23,490,092 $ 6,034,515 $ 6,779,840 $ 144,328,343 $ Less capital related debt balances:

Outstanding principal balance of:

Bonds payable (3,155,000) (7,690,000) - - - (10,845,000) Finance lease (3,686,134) (696,906) - - - (4,383,040) Note payable - (3,460,993) - - - (3,460,993) Bond premiums (72,595) (263,909) - - - (336,504) Lease payable (15,758) - - - - (15,758) Net investment in capital assets 48,606,643 $ 40,375,958 $ 23,490,092 $ 6,034,515 $ 6,779,840 $ 125,287,048 $ Business-type Activities

City of Hanford
Notes to the Financial Statements
For the Year Ended June 30, 2025
-83-
NOTE 14 - PRIOR PERIOD RESTATEMENT
The City recorded a prior period restatement to the reallocation of pension bond obligation allocation as detailed in the table below.

Governmental Activities
Governmental Activities
Net Position, beginning of year, as previously reported 213,331,121 $ Correction for reallocation of pension bond obligations 311,550 Net Position, beginning of year, as restated 213,642,671 $ Business-type Activities
Business-Type Activities
Net position, beginning of year, as previously reported 16,734,081 $ Correction for reallocation of pension bond obligations (311,550) Net position, beginning of year, as restated 16,422,531 $ Business-type Fund Activities
Fund Financials
Building Safety Fund
Net position, beginning of year, as previously reported 803,227 $ Correction for reallocation of pension bond obligations (311,550) Net position, beginning of year, as restated 491,677 $

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REQUIRED SUPPLEMENTARY

INFORMATION

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City of Hanford
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years
-84-
Miscellaneous Plan Measurement Period 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost 2,781,409 $ 2,525,214 $ 2,629,757 $ 2,307,283 $ 2,151,214 $ 2,064,352 $ 2,105,925 $ 2,090,309 $ 1,914,877 $ 1,859,399 $ Interest 9,014,897 8,376,796 8,080,540 8,011,156 7,725,010 7,440,145 7,031,320 7,021,932 6,976,069 6,689,193 Change in benefit terms - 133,790 - - - - - - - - Differences between expected and actual experience 5,067,278 (34,421) (1,259,145) (436,335) (410,579) 1,398,071 (1,511,015) (3,768,183) (831,190) (443,007) Changes in assumptions - - 1,886,393 - - - (3,087,527) 6,006,913 - (1,698,571) Benefit payments, including refunds of employees contributions (7,125,290) (6,573,779) (6,353,883) (5,729,725) (5,302,018) (5,004,441) (4,588,971) (4,191,413) (4,206,587) (3,783,672) Net change in total pension liability 9,738,294 4,427,600 4,983,662 4,152,379 4,163,627 5,898,127 (50,268) 7,159,558 3,853,169 2,623,342 Total pension liability- beginning 127,755,342 123,327,742 118,344,080 114,191,701 110,028,074 104,129,947 104,180,215 97,020,657 93,167,488 90,544,146 Total pension liability-ending (a) 137,493,636 127,755,342 123,327,742 118,344,080 114,191,701 110,028,074 104,129,947 104,180,215 97,020,657 93,167,488 Plan Fiduciary Net Position Contributions-employer 1,897,514 2,415,486 15,804,838 4,300,785 4,072,920 3,791,023 3,415,348 3,213,198 295,917 2,937,484 Contributions-employees 1,103,577 1,006,834 903,798 908,516 852,662 874,603 796,926 760,087 709,460 712,929 Net plan to plan resource movement - 52,804 (52,804) - - - (188) - - - Net investment income 10,794,112 6,736,220 (8,335,831) 20,183,976 4,294,558 5,316,832 6,405,074 7,625,528 366,113 1,494,371 Benefit payments (7,125,290) (6,573,779) (6,353,883) (5,729,725) (5,302,018) (5,004,441) (4,588,971) (4,191,413) (4,206,587) (3,783,672) Administrative expense (93,459) (81,845) (68,151) (89,733) (121,281) (57,883) (340,724) (100,570) (41,645) (76,906) Other miscellaneous income/(expense) - - - - - 186 - - - - Net change in plan fiduciary net position 6,576,454 3,555,720 1,897,967 19,573,819 3,796,841 4,920,320 5,687,465 7,306,830 (2,876,742) 1,284,206 Total plan fiduciary net position-beginning 114,855,862 111,300,142 109,402,175 89,828,356 86,031,515 81,111,195 75,423,730 68,116,900 68,331,642 67,147,436 Total plan fiduciary net position-ending (b) 121,432,316 114,855,862 111,300,142 109,402,175 89,828,356 86,031,515 81,111,195 75,423,730 65,454,900 68,431,642 Net pension liability-ending (a)-(b) 16,061,320 $ 12,899,480 $ 12,027,600 $ 8,941,905 $ 24,363,345 $ 23,996,559 $ 23,018,752 $ 28,756,485 $ 31,565,757 $ 24,735,846 $ Plan fiduciary net position as a percentage of the total pension liability 88.32% 89.90% 90.25% 92.44% 78.66% 78.19% 77.39% 72.40% 70.21% 73.34% City's covered-employee payroll 13,207,072 $ 11,717,932 $ 12,146,682 $ 11,735,924 $ 10,586,681 $ 10,064,610 $ 10,080,535 $ 9,434,933 $ 9,643,787 $ 9,090,194 $ Net pension liability as a percentage of covered-employee payroll 121.61% 97.84% 99.02% 76.19% 230.13% 238.43% 228.35% 304.79% 299.71% 273.22% 1 Net of administrative expenses. Notes to Schedule: Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

City of Hanford
Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability Last Ten Fiscal Years
-85-
Safety Plan
Employer's
Proportionate Pension's Plan
Employer's Share of the Fiduciary Net
Employer's Proportion Collection Net Position as a
Proportion of Share of the Pension Percentage of
the Collective Collective Net Liability (Asset) the Total Measurement Net Pension Pension as a Percentage Pension Date Liability (Asset)1Liability (Asset) Covered Payroll of Covered Payroll Liability (Asset) 6/30/2015 0.2194% 14,547,172 $ 6,602,409 $ 220.33% 74.99% 6/30/2016 0.2137% 18,487,608 6,897,272 268.04% 70.87%
6/30/2017 0.2115% 20,972,245 6,409,767 327.19% 70.93%
6/30/2018 0.2153% 20,744,090 6,692,475 309.96% 72.39%
6/30/2019 0.2161% 22,146,339 6,673,847 331.84% 73.25%
6/30/2020 0.2249% 24,469,454 6,889,321 355.18% 72.59%
6/30/2021 0.3957% 13,888,402 9,140,252 151.95% 86.61%
6/30/2022 0.1643% 11,290,136 8,109,211 139.23% 75.52%
6/30/2023 0.1559% 11,655,004 8,109,211 143.73% 74.87%
6/30/2024 0.1496% 10,909,654 8,835,591 123.47% 76.66%
*The pension schedules are required to show ten years of data and the additional years' information will be displayed as it becomes available
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

City of Hanford
Required Supplementary Information
Schedule of Plan Contributions - Pension Plan
Last Ten Years
-86-
Miscellaneous Plan
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contribution 2,317,545 $ 2,415,486 $ 4,261,698 $ 4,300,785 $ 4,072,920 $ 3,791,023 $ 3,415,348 $ 3,213,198 $ 2,957,917 $ 2,837,484 $ Contributions in relation to the actuarially
determined contribution (2,317,545) (2,415,486) (15,804,838) (4,300,785) (4,072,920) (3,791,023) (3,415,348) (3,213,198) (2,957,917) (2,837,484) Contribution deficiency (excess) - $ - $ (11,543,140) $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 13,988,809 $ 13,207,072 $ 11,717,932 $ 12,146,682 $ 11,735,924 $ 10,586,681 $ 10,064,610 $ 10,080,535 $ 9,434,933 $ 9,643,787 $ Contributions as a percentage of
covered-employee payroll 14.37% 20.61% 130.12% 36.65% 38.47% 37.67% 33.88% 34.06% 30.67% 31.21% Safety Plan
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contribution 2,496,401 $ 2,004,715 $ 2,422,956 $ 22,748,720 $ 4,062,968 $ 3,451,832 $ 3,067,990 $ 3,064,625 $ 3,728,697 $ 2,859,367 $ Contributions in relation to the actuarially
determined contribution (2,496,401) (2,004,715) (2,422,956) (22,748,720) (4,062,968) (3,451,832) (3,067,990) (3,064,625) (3,728,697) (2,859,367) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 9,254,159 $ 8,835,591 $ 8,109,211 $ 8,109,211 $ 9,140,252 $ 6,889,321 $ 6,673,847 $ 6,692,475 $ 6,409,767 $ 6,897,272 $ Contributions as a percentage of
covered-employee payroll 26.98% 22.69% 29.88% 280.53% 44.45% 50.10% 45.97% 45.79% 58.17% 41.46% Notes to Schedule:

Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

City of Hanford
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios Last Ten Fiscal Years*
-87-
2025 2024 2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 291,017 $ 288,001 $ 235,139 $ 310,994 $ 120,203 $ 105,251 $ - $ - $ Interest on total OPEB liability 174,096 159,742 151,238 88,810 63,027 74,534 47,002 50,391 Differences between expected and actual experience (759,886) - (131,402) 283,719 (1,034,539) 1,034,539 - Changes in assumptions (834,291) (41,334) (100,260) (699,772) 1,541,087 141,650 39,397 (6,734) Benefit payments, including refunds of employee contributions (149,503) (175,583) (159,927) (142,193) (149,569) (136,950) (153,422) (168,043) Net change in total OPEB liability (1,278,567) 230,826 (5,212) (442,161) 1,858,467 (850,054) 967,516 (124,386) Total Net OPEB liability - beginning 4,169,018 3,938,192 3,943,404 4,385,565 2,527,098 2,342,613 1,375,097 1,499,483 Total Net OPEB liability- ending (a) 2,890,451 4,169,018 3,938,192 3,943,404 4,385,565 1,492,559 2,342,613 1,375,097 Plan Fiduciary Net Position Contributions- employer 149,503 175,583 154,219 142,193 149,569 136,950 153,422 168,043 Benefit payments (149,503) (175,583) (154,219) (142,193) (149,569) (136,950) (153,422) (168,043) Net change in plan fiduciary net position - - - - - - - - Total plan fiduciary net position - beginning - - - - - - - - Total plan fiduciary net position - ending (b) - - - - - - - - Net OPEB liability - ending (a)-(b) 2,890,451 $ 4,169,018 $ 3,938,192 $ 3,943,404 $ 4,385,565 $ 1,492,559 $ 2,342,613 $ 1,375,097 $ Plan fiduciary net position as a percentage of the total OPEB liability 0% 0% 0% 0% 0% 0% 0% 0% City's covered-employee payroll 28,692,258 $ 26,822,825 $ 26,307,809 $ 18,572,290 $ 19,345,356 $ 18,420,461 $ 19,211,409 $ - $ Net OPEB liability as a percentage of covered-employee payroll 10.07% 15.54% 14.97% 21.23% 22.67% 13.72% 12.19% 0% Notes to Schedule:
*Historical information is required only for measurement periods for which GASB 75 applicable. Future years' information will be displayed up to ten years as information becomes available.

City of Hanford
Required Supplementary Information
Schedule of Contributions – OPEB
Last Ten Fiscal Years*
-88-
2025 2024 2023 2022 2021 2020 2019 2018
Actuarially determined contribution 149,503 $ 175,583 $ 154,219 $ 142,193 $ 149,569 $ 136,950 $ 153,422 $ 168,043 $ Contributions in relation to the (149,503) (175,583) (154,219) (142,193) (149,569) (136,950) (153,422) (168,043) actuarially determined contribution
Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ City's covered-employee payroll 28,692,258 $ 26,822,825 $ 26,307,809 $ 18,572,290 $ 19,345,356 $ 18,420,461 $ 19,211,409 $ - $ Contributions as a percentage of
covered-employee payroll 0.52% 0.65% 0.59% 0.77% 0.77% 0.74% 0.80% - Notes to Schedule:

Valuation Date June 30, 2025
Funding Method Entry Age Normal Cost, level percent of pay Asset Valuation Fair value of assets
Discount Rate 5.20% as of June 30, 2025

3.97% as of June 30, 2024
Participants Valued
Salary Increase 3.00% per year, since benefits do not depend on salary, this is used only to allocate the cost of benefits between service years.

General Inflation Rate 2.50% per year.

Mortality CalPERS 2021 Experience Study
Mortality Improvement MacLeod Watts 2022 Scale Generationally Healthcare Trend 6.0% in 2026, fluctuating down to 3.9%% by 2075 *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to ten years as information becomes available.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-2025 were as follows for the June 30, 2025 measurement date actuarial valuations.

Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation.

City of Hanford
Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) General Fund For the Year Ended June 30, 2025
-89-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 34,452,230 $ 34,452,230 $ 35,878,197 $ 1,425,967 $ Aid from other government agencies 1,125,300 3,778,621 3,151,749 (626,872) Licenses and permits 47,700 47,700 63,690 15,990
Fines and forfeitures 118,500 118,500 144,373 25,873
Charges for services 2,464,410 2,564,068 2,733,388 169,320 Lease revenue 43,200.00 43,200.00 163,635 120,435
Revenue from use of money and property 62,800 62,800 413,348 350,548 Miscellaneous 8,500 8,500 17,589,996 17,581,496
Total revenues 38,322,640 41,075,619 60,138,376 19,062,757

EXPENDITURES
Current:

General government 4,105,968 4,459,243 21,986,050 (17,526,807) Public safety 24,524,465 25,184,406 26,572,968 (1,388,562) Public works 2,568,983 2,522,934 2,868,444 (345,510)
Recreation 4,603,208 6,397,114 6,323,733 73,381
Community development 1,024,401 1,119,401 895,219 224,182 Debt service:

Principal 1,458,815 1,458,815 1,841,625 (382,810)
Interest 1,006,097 1,006,097 1,012,248 (6,151)
Capital outlay - 5,918,530 3,089,492 2,829,038
Total expenditures 39,291,937 48,066,540 64,589,779 (16,523,239) Excess (deficiency) of revenues
Over (under) expenditures (969,297) (6,990,921) (4,451,403) 2,539,518 OTHER FINANCING SOURCES (USES) Transfers in 1,346,000 5,066,799 5,431,606 364,807 Transfers out (336,393) (336,393) (1,719,428) (1,383,035) Lease and other financing proceeds - - 1,755,501 1,755,501 Proceeds from sale of assets - - 24,896 24,896 Total other financing sources (uses) 1,009,607 4,730,406 5,492,575 762,169 Net change in fund balance 40,310 (2,260,515) 1,041,172 3,301,687

FUND BALANCE
Beginning of year 12,942,192 12,942,192 12,942,192 - End of year 12,982,502 $ 10,681,677 $ 13,983,364 $ 3,301,687 $ General Fund

City of Hanford
Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) CDBG Home/Housing Fund For the Year Ended June 30, 2025
-90-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies 1,095,000 $ 1,095,000 $ 531,855 $ (563,145) $ Revenue from use of money and property 83,150 83,150 309,955 226,805 Miscellaneous 360,000 360,000 148 (359,852) Total revenues 1,538,150 1,538,150 841,958 (696,192)

EXPENDITURES
Current:

Community development 1,381,440 1,423,688 608,065 815,623 Total expenditures 1,381,440 1,423,688 608,065 815,623 Excess (deficiency) of revenues
Over (under) expenditures 156,710 114,462 233,893 119,431 OTHER FINANCING SOURCES (USES) Transfers out (400,000) (400,000) (191,073) 208,927 Proceeds from sale of assets - - 34,342 34,342 Total other financing sources (uses) (400,000) (400,000) (156,731) 208,927 Net change in fund balance (243,290) (285,538) 77,162 328,358

FUND BALANCE
Beginning of year 20,339,965 20,339,965 20,339,965 - End of year 20,096,675 $ 20,054,427 $ 20,417,127 $ 362,700 $ CDBG/Home/Housing Fund

City of Hanford
Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) Transportation Development Act Fund For the Year Ended June 30, 2025
-91-
Original Final Actual Amount
Variance with
Final Budget

REVENUES
Taxes and special assessments 821,000 $ 821,000 $ 1,355,009 $ 534,009 $ Revenue from use of money and property 39,000 39,000 445,506 406,506 Total revenues 860,000 860,000 1,800,515 940,515

EXPENDITURES
Current:

General government 4,000 4,000 9,114 (5,114) Capital outlay - 1,421,350 50,420 1,370,930 Total expenditures 4,000 1,425,350 59,534 1,365,816 Net change in fund balance 856,000 (565,350) 1,740,981 2,306,331

FUND BALANCE
Beginning of year 8,950,478 8,950,478 8,950,478 - End of year 9,806,478 $ 8,385,128 $ 10,691,459 $ 2,306,331 $ Transportation Development Act Fund

City of Hanford
Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) American Rescue Plan Act Fund For the Year Ended June 30, 2025
-92-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies - $ - $ 3,802,527 $ 3,802,527 $ Total revenues - - 3,802,527 3,802,527 EXPENDITURES
Capital outlay - 1,641,260 380,011 1,261,249 Total expenditures - 1,641,260 380,011 1,261,249 Excess (deficiency) of revenues
Over (under) expenditures - (1,641,260) 3,422,516 5,063,776 OTHER FINANCING SOURCES (USES) Transfers out - (3,299,497) (3,299,497) - Total other financing sources (uses) - (3,299,497) (3,299,497) - Net change in fund balance - (4,940,757) 123,019 5,063,776 FUND BALANCE (DEFICIT) Beginning of year (146,712) (146,712) (146,712) - End of year (146,712) $ (5,087,469) $ (23,693) $ 5,063,776 $ American Rescue Plan Act

City of Hanford
Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) Measure H Fund For the Year Ended June 30, 2025
-93-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments - $ - $ 3,388,557 $ 3,388,557 $ Revenue from use of money and property - - 9,184 9,184 Total revenues - - 3,397,741 3,397,741 EXPENDITURES Current:

General government - - 86 (86) Total expenditures - - 86 (86) Excess (deficiency) of revenues
Over (under) expenditures - - 3,397,655 3,397,655 OTHER FINANCING SOURCES (USES) Transfers out - (143,750) (143,750) - Total other financing sources (uses) - (143,750) (143,750) - Net change in fund balance - (143,750) 3,253,905 3,397,655 FUND BALANCE Beginning of year - - - - End of year - $ (143,750) $ 3,253,905 $ 3,397,655 $ Measure H Fund

City of Hanford
Notes to Budgetary Comparison Required Supplementary Information For the Year Ended June 30, 2025
-94-
Budget and Budgetary Accounting
The procedures established by the City Council in adopting the budgetary data are as follows:

On or before the second meeting in May, the City Manager submits to the City Council a proposed operating and capital projects budget for the fiscal year commencing the following July 1.

Following publication and public hearings, the budget is legally enacted by resolution with a copy available on the City’s website.

The City Manager is authorized to transfer funds appropriated with respect to all classifications within the same department. The City Manager may transfer appropriated funds from any classification within other expenditure categories to existing capital outlay and capital projects classifications within the same department only; however, any revisions that alter the total expenditures of any department or create additional projects must be approved by the City Council.

Supplemental budgetary appropriations were negligible for the fiscal year ended June 30, 2025.

All unencumbered appropriations lapse at year-end. Budgets were legally adopted for all governmental funds with the exception of the Special Aviation Fund and Street Tree Committee Fund.

See note 1 for more information regarding the City’s budgetary process.

Excess of expenditures over appropriations for major funds Major Funds:

General Fund
General government (17,526,807) $
Public safety (1,388,562) Public works (345,510) Debt service - principal (382,810) Debt service - interest (6,151) Transportation Development Act Fund General government (5,114)
Measure H Fund
General government (86)

SUPPLEMENTARY INFORMATION

City of Hanford
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2025
-95-
CMAQ
Transportation
Fund
Park Impact
Fees Parking Fund
Downtown
Reinvestment
Fund
Landscaping
Assessment
District
ASSETS
Cash and investments 138,803 $ 7,537,271 $ 503,719 $ 166,987 $ 2,548,920 $ Receivables:

Accounts 31,176 9,577 - - 15,038 Taxes - - - - - Loans - - - - - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 169,979 $ 7,546,848 $ 503,719 $ 166,987 $ 2,563,958 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 5,850 $ 1,504 $ - $ - $ 110,609 $
Accrued wages payable - - - - - Due to other funds - - - - 96,199 Total Liabilities 5,850 1,504 - - 206,808 Fund Balances (deficit):

Nonspendable:

Loan receivable - - - - - Prepaid expenses - - - - - Restricted for:

Streets and roads 164,129 - - - - Recreation - 7,545,344 - - - Landscape maintenance - - - - 2,357,150 Public safety - - - - - Committed for:

Parking and business improvement - - 503,719 166,987 - Community development - - - - - Cannabis - - - - - Total Fund Balances 164,129 7,545,344 503,719 166,987 2,357,150 Total Liabilities and Fund Balances 169,979 $ 7,546,848 $ 503,719 $ 166,987 $ 2,563,958 $ Special Revenue

City of Hanford
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2025 (continued)
-96-
City Housing
Fund
Central Parking
and Business
Improvement
Fire Protection
Impact Fees
Police
Protection
Impact Fees Special Aviation
ASSETS
Cash and investments 646,527 $ 123,791 $ 1,185,845 $ 152,745 $ 19,311 $ Receivables:

Accounts - 5,288 1,910 1,036 - Taxes - - - - - Loans 1,807,093 - - - - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 2,453,620 $ 129,079 $ 1,187,755 $ 153,781 $ 19,311 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ 1,600 $ 1,504 $ 1,504 $ - $
Accrued wages payable - - - - - Due to other funds - - - - - Total Liabilities - 1,600 1,504 1,504 - Fund Balances (deficit):

Nonspendable:

Loan receivable 1,807,093 - - - - Prepaid expenses - - - - - Restricted for:

Streets and roads - - - - 19,311 Recreation - - - - - Landscape maintenance - - - - - Public safety - - 1,186,251 152,277 - Committed for:

Parking and business improvement - 127,479 - - - Community development 646,527 - - - - Cannabis - - - - - Total Fund Balances 2,453,620 127,479 1,186,251 152,277 19,311 Total Liabilities and Fund Balances 2,453,620 $ 129,079 $ 1,187,755 $ 153,781 $ 19,311 $ Special Revenue

City of Hanford
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2025 (continued)
-97-
Traffic Safety
Street Tree
Committee
State Gas Tax
Fund
Public Housing
Authority
Transportation
Impact Fees
ASSETS
Cash and investments 191,322 $ 1,218 $ 11,137,556 $ 162,379 $ 10,610,244 $ Receivables:

Accounts 6,360 - - - 31,013 Taxes - - 421,116 - - Loans - - - - - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 197,682 $ 1,218 $ 11,558,672 $ 162,379 $ 10,641,257 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 10,800 $ 639 $ 54,777 $
Accrued wages payable - - - 3,838 - Due to other funds - - - - - Total Liabilities - - 10,800 4,477 54,777 Fund Balances (deficit):

Nonspendable:

Loan receivable - - - - - Prepaid expenses - - - - - Restricted for:

Streets and roads - - 11,547,872 - - Recreation - - - - - Landscape maintenance - 1,218 - - - Public safety 197,682 - - - - Committed for:

Parking and business improvement - - - - - Community development - - - 157,902 10,586,480 Cannabis - - - - - Total Fund Balances 197,682 1,218 11,547,872 157,902 10,586,480 Total Liabilities and Fund Balances 197,682 $ 1,218 $ 11,558,672 $ 162,379 $ 10,641,257 $ Special Revenue

City of Hanford
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2025 (concluded)
-98-
Cannabis
Operations
Capital Projects
Fund
Total Non-Major
Special
Revenue Funds
ASSETS
Cash and investments 17,259 $ 1,590,618 $ 36,734,515 $
Receivables:

Accounts 207,188 - 308,586 Taxes 40,844 - 461,960
Loans - - 1,807,093 Prepaid expenses - 1,100 1,100 Advances to other funds - 636,692 636,692 Total Assets 265,291 $ 2,228,410 $ 39,949,946 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 188,787 $
Accrued wages payable - - 3,838 Due to other funds - - 96,199 Total Liabilities - - 288,824 Fund Balances (deficit):

Nonspendable:

Loan receivable - - 1,807,093 Prepaid expenses - 1,100 1,100 Restricted for:

Streets and roads - - 11,731,312 Recreation - - 7,545,344 Landscape maintenance - - 2,358,368 Public safety - - 1,536,210
Committed for:

Parking and business improvement - 2,227,310 3,025,495
Community development - - 11,390,909 Cannabis 265,291 - 265,291 Total Fund Balances 265,291 2,228,410 39,661,122 Total Liabilities and Fund Balances 265,291 $ 2,228,410 $ 39,949,946 $ Special Revenue

City of Hanford
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2025
-99-
CMAQ
Transportation
Fund
Park Impact
Fees Parking Fund
Downtown
Reinvestment
Fund
Landscaping
Assessment
District

REVENUES
Taxes and special assessments - $ 1,241,466 $ - $ - $ 1,158,740 $ Aid from other government agencies 121,654 - - - - Fines and forfeitures - - - - - Revenue from use of money and property - 338,465 24,005 455 103,639 Miscellaneous 1,608 - - - - Total revenues 123,262 1,579,931 24,005 455 1,262,379 EXPENDITURES Current:

General government - 6,837 485 - 1,757 Public works - - - - 948,711 Community development - - - - 64 Capital outlay 126,654 2,927 - - - Total expenditures 126,654 9,764 485 - 950,532 Excess (deficiency) of revenues over expenditures (3,392) 1,570,167 23,520 455 311,847 OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers out - - - - - Proceeds from sale of assets - - - - - Total other financing sources (uses) - - - - - Net change in fund balance (3,392) 1,570,167 23,520 455 311,847 FUND BALANCE (DEFICIT) Beginning of year 167,521 5,975,177 480,199 166,532 2,045,303 End of year 164,129 $ 7,545,344 $ 503,719 $ 166,987 $ 2,357,150 $ Special Revenue

City of Hanford
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2025 (continued)
-100-
City Housing
Fund
Central Parking
and Business
Improvement
Fire Protection
Impact Fees
Police
Protection
Impact Fees Special Aviation

REVENUES
Taxes and special assessments - $ 110,418 $ 223,038 $ 127,321 $ - $ Aid from other government agencies - - - - - Fines and forfeitures - - - - - Revenue from use of money and property 19,538 6,312 50,924 3,517 792 Miscellaneous 45 - 1,751 1,902 - Total revenues 19,583 116,730 275,713 132,740 792 EXPENDITURES Current:

General government - 129 6,829 3,728 17 Public works - 60,818 - - - Community development 70,622 16,397 - - - Capital outlay - 45,000 2,927 2,927 - Total expenditures 70,622 122,344 9,756 6,655 17 Excess (deficiency) of revenues over expenditures (51,039) (5,614) 265,957 126,085 775 OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers out - - - - - Proceeds from sale of assets 72,172 - - - - Total other financing sources (uses) 72,172 - - - - Net change in fund balance 21,133 (5,614) 265,957 126,085 775 FUND BALANCE (DEFICIT) Beginning of year 2,432,487 133,093 920,294 26,192 18,536 End of year 2,453,620 $ 127,479 $ 1,186,251 $ 152,277 $ 19,311 $ Special Revenue

City of Hanford
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2025 (continued)
-101-
Traffic Safety
Street Tree
Committee
State Gas Tax
Fund
Public Housing
Authority
Transportation
Impact Fees

REVENUES
Taxes and special assessments - $ - $ 3,615,893 $ - $ 1,589,005 $ Aid from other government agencies - - - - - Fines and forfeitures 29,463 - - - - Revenue from use of money and property 8,583 - 464,504 - 493,643 Miscellaneous - - - 615 - Total revenues 38,046 - 4,080,397 615 2,082,648 EXPENDITURES Current:

General government 173 - 9,279 - 48,542 Public works - - - - - Community development - - - 300,420 - Capital outlay - - 822,127 - 816,451 Total expenditures 173 - 831,406 300,420 864,993 Excess (deficiency) of revenues over expenditures 37,873 - 3,248,991 (299,805) 1,217,655 OTHER FINANCING SOURCES (USES) Transfers in - - - 299,805 - Transfers out - - - - - Proceeds from sale of assets - - - - - Total other financing sources (uses) - - - 299,805 - Net change in fund balance 37,873 - 3,248,991 - 1,217,655 FUND BALANCE (DEFICIT) Beginning of year 159,809 1,218 8,298,881 157,902 9,368,825 End of year 197,682 $ 1,218 $ 11,547,872 $ 157,902 $ 10,586,480 $ Special Revenue

City of Hanford
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2025 (concluded)
-102-
Special Revenue
Cannabis
Operations
Capital Projects
Fund
Total Non-Major
Special
Revenue Funds

REVENUES
Taxes and special assessments 593,562 $ - $ 8,659,443 $ Aid from other government agencies - - 121,654 Fines and forfeitures - - 29,463 Revenue from use of money and property 2,246 42,347 1,558,970 Miscellaneous 160,000 - 165,921 Total revenues 755,808 42,347 10,535,451 EXPENDITURES Current:

General government - 707 78,483 Public works - - 1,009,529 Community development - - 387,503 Capital outlay - 20,514 1,839,527 Total expenditures - 21,221 3,315,042 Excess (deficiency) of revenues over expenditures 755,808 21,126 7,220,409

OTHER FINANCING SOURCES (USES)
Transfers in - - 299,805 Transfers out (688,123) - (688,123) Proceeds from sale of assets - - 72,172 Total other financing sources (uses) (688,123) - (316,146) Net change in fund balance 67,685 21,126 6,904,263 FUND BALANCE (DEFICIT) Beginning of year 197,606 2,207,284 32,756,859 End of year 265,291 $ 2,228,410 $ 39,661,122 $

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual CMAQ Transportation Fund
For the Year Ended June 30, 2025
-103-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies 839 $ (839) $ 121,654 $ 122,493 $ Miscellaneous - - 1,608 1,608 Total revenues 839 (839) 123,262 124,101 EXPENDITURES Capital outlay - 949,244 126,654 822,590 Total expenditures - 949,244 126,654 822,590 Net change in fund balance 839 (950,083) (3,392) 946,691

FUND BALANCE
Beginning of year 167,521 167,521 167,521 - End of year 168,360 $ (782,562) $ 164,129 $ 946,691 $ CMAQ Transportation Fund

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Park Impact Fees Fund
For the Year Ended June 30, 2025
-104-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 750,000 $ 750,000 $ 1,241,466 $ 491,466 $ Revenue from use of money and property 38,000 38,000 338,465 300,465 Total revenues 788,000 788,000 1,579,931 791,931 EXPENDITURES Current:

General government 3,800 3,800 6,837 (3,037) Capital outlay - 2,344,708 2,927 2,341,781 Total expenditures 3,800 2,348,508 9,764 2,338,744
Net change in fund balance 784,200 (1,560,508) 1,570,167 3,130,675

FUND BALANCE
Beginning of year 5,975,177 5,975,177 5,975,177 - End of year 6,759,377 $ 4,414,669 $ 7,545,344 $ 3,130,675 $ Park Impact Fees

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Parking Fund
For the Year Ended June 30, 2025
-105-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property 1,100 $ 1,100 $ 24,005 $ 22,905 $ Total revenues 1,100 1,100 24,005 22,905

EXPENDITURES
Current:

General government 150 150 485 (335) Total expenditures 150 150 485 (335) Excess (deficiency) of revenues over (under) expenditures 950 950 23,520 22,570 OTHER FINANCING SOURCES (USES) Lease acquisition 19,496 19,496 - (19,496) Total other financing sources (uses) 19,496 19,496 - (19,496) Net change in fund balance 20,446 20,446 23,520 3,074 FUND BALANCE Beginning of year 480,199 480,199 480,199 - End of year 500,645 $ 500,645 $ 503,719 $ 3,074 $ Parking Fund

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Downtown Reinvestment Fund
For the Year Ended June 30, 2025
-106-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property 1,300 $ 1,300 $ 455 $ (845) $ Miscellaneous 2,500 2,500 - (2,500) Total revenues 3,800 3,800 455 (3,345)

EXPENDITURES
Current:

General government 100 100 - 100 Total expenditures 100 100 - 100 Net change in fund balance 3,700 3,700 455 (3,245)

FUND BALANCE
Beginning of year 166,532 166,532 166,532 - End of year 170,232 $ 170,232 $ 166,987 $ (3,245) $ Downtown Reinvestment Fund

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Central Parking and Business Improvement Fund
For the Year Ended June 30, 2025
-107-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 105,000 $ 105,000 $ 110,418 $ 5,418 $ Revenue from use of money and property 1,000 1,000 6,312 5,312 Total revenues 106,000 106,000 116,730 10,730 EXPENDITURES Current:

General government 100 100 129 (29) Public works 81,090 81,090 60,818 20,272 Community development 15,000 28,400 16,397 12,003 Capital outlay - - 45,000 (45,000) Total expenditures 96,190 109,590 122,344 (12,754) Net change in fund balance 9,810 (3,590) (5,614) (2,024)

FUND BALANCE
Beginning of year 133,093 133,093 133,093 - End of year 142,903 $ 129,503 $ 127,479 $ (2,024) $ Central Parking and Business Improvement Fund

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Fire Protection Impact Fees Fund
For the Year Ended June 30, 2025
-108-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 170,000 $ 170,000 $ 223,038 $ 53,038 $ Revenue from use of money and property 3,400 3,400 50,924 47,524 Miscellaneous - - 1,751 1,751 Total revenues 173,400 173,400 275,713 102,313 EXPENDITURES Current:

General government 350 350 6,829 (6,479) Capital outlay - 13,200 2,927 10,273 Total expenditures 350 13,550 9,756 3,794 Net change in fund balance 173,050 159,850 265,957 106,107 FUND BALANCE Beginning of year 920,294 920,294 920,294 - End of year 1,093,344 $ 1,080,144 $ 1,186,251 $ 106,107 $ Fire Protection Impact Fees

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Police Protection Impact Fees Fund
For the Year Ended June 30, 2025
-109-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 103,000 $ 103,000 $ 127,321 $ 24,321 $ Revenue from use of money and property 1,000 1,000 3,517 2,517 Miscellaneous - - 1,902 1,902 Total revenues 104,000 104,000 132,740 28,740 EXPENDITURES Current:

General government 80 80 3,728 (3,648) Capital outlay - 13,200 2,927 10,273 Total expenditures 80 13,280 6,655 6,625 Net change in fund balance 103,920 90,720 126,085 35,365

FUND BALANCE
Beginning of year 26,192 26,192 26,192 - End of year 130,112 $ 116,912 $ 152,277 $ 35,365 $ Police Protection Impact Fees

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Traffic Safety Fund
For the Year Ended June 30, 2025
-110-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Fines and forfeitures 36,200 $ 36,200 $ 29,463 $ (6,737) $ Revenue from use of money and property 300 300 8,583 8,283 Total revenues 36,500 36,500 38,046 1,546

EXPENDITURES
Current:

General government 30 30 173 (143) Total expenditures 30 30 173 (143) Net change in fund balance 36,470 36,470 37,873 1,403 FUND BALANCE Beginning of year 159,809 159,809 159,809 - End of year 196,279 $ 196,279 $ 197,682 $ 1,403 $ Traffic Safety

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual State Gas Tax Fund
For the Year Ended June 30, 2025
-111-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 3,410,200 $ 3,410,200 $ 3,615,893 $ 205,693 $ Revenue from use of money and property 24,800 24,800 464,504 439,704 Total revenues 3,435,000 3,435,000 4,080,397 645,397

EXPENDITURES
Current:

General government 2,600 2,600 9,279 (6,679) Capital outlay 425,000 6,521,098 822,127 5,698,971 Total expenditures 427,600 6,523,698 831,406 5,692,292 Net change in fund balance 3,007,400 (3,088,698) 3,248,991 6,337,689

FUND BALANCE
Beginning of year 8,298,881 8,298,881 8,298,881 - End of year 11,306,281 $ 5,210,183 $ 11,547,872 $ 6,337,689 $ State Gas Tax Fund

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Public Housing Authority Fund
For the Year Ended June 30, 2025
-112-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Miscellaneous - $ - $ 615 $ 615 $
Total revenues - - 615 615 EXPENDITURES
Current:

Community development 302,306 309,320 300,420 8,900 Debt service:

Principal 836 836 - 836
Interest 6 6 - 6 Total expenditures 303,148 310,162 300,420 9,742 Excess (deficiency) of revenues over (under) expenditures (303,148) (310,162) (299,805) 10,357 OTHER FINANCING SOURCES (USES) Transfers in 303,148 303,148 299,805 (3,343) Lease acquisition 3,844 3,844 - (3,844) Total other financing sources (uses) 306,992 306,992 299,805 (7,187) Net change in fund balance 3,844 (3,170) - 3,170 FUND BALANCE Beginning of year 157,902 157,902 157,902 - End of year 161,746 $ 154,732 $ 157,902 $ 3,170 $ Public Housing Authority

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Transportation Impact Fees Fund
For the Year Ended June 30, 2025
-113-
Original Final Actual Amount
Variance with
Final Budget

REVENUES
Taxes and special assessments 1,430,000 $ 1,430,000 $ 1,589,005 $ 159,005 $ Revenue from use of money and property 41,000 41,000 493,643 452,643 Total revenues 1,471,000 1,471,000 2,082,648 611,648

EXPENDITURES
Current:

General government 4,100 4,100 48,542 (44,442) Capital outlay - 6,817,248 816,451 6,000,797 Total expenditures 4,100 6,821,348 864,993 5,956,355 Net change in fund balance 1,466,900 (5,350,348) 1,217,655 6,568,003

FUND BALANCE
Beginning of year 9,368,825 9,368,825 9,368,825 - End of year 10,835,725 $ 4,018,477 $ 10,586,480 $ 6,568,003 $ Transportation Impact Fees

City of Hanford
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Cannabis Operations Fund
For the Year Ended June 30, 2025
-114-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 1,250,000 $ 1,250,000 $ 593,562 $ (656,438) $ Revenue from use of money and property 2,700 2,700 2,246 (454) Miscellaneous 96,000 96,000 160,000 64,000 Total revenues 1,348,700 1,348,700 755,808 (592,892) EXPENDITURES Current:

General government 300 300 - 300 Total expenditures 300 300 - 300 Excess (deficiency) of revenues
over (under) expenditures 1,348,400 1,348,400 755,808 (592,592) OTHER FINANCING SOURCES (USES) Transfers out (1,346,000) (1,346,000) (688,123) 657,877 Total other financing sources (uses) (1,346,000) (1,346,000) (688,123) 657,877 Net change in fund balance 2,400 2,400 67,685 65,285 FUND BALANCE Beginning of year 197,606 197,606 197,606 - End of year 200,006 $ 200,006 $ 265,291 $ 65,285 $ Cannabis Operations

City of Hanford
Combining Statement of Net Position
Non-major Enterprise Funds
June 30, 2025
-115-
Airport Intermodal Courthouse Building Safety
Fund Fund Square Fund Totals
ASSETS
Current assets
Cash and investments 5,398 $ 59,900 $ - $ 1,130,254 $ 1,195,552 $ Receivables:

Accounts 4,728 39,528 2,869 238,354 285,479 Leases 379,684 125,336 - - 505,020 Interest 3,689 250 - - 3,939 Prepaid expenses - - - 1,050 1,050 Total current assets 393,499 225,014 2,869 1,369,658 1,991,040 Noncurrent assets Capital assets:

Land 2,596,623 278,884 - - 2,875,507 Construction in progress 128,226 - - 975 129,201 Building and improvements 10,190,006 1,305,817 - - 11,495,823 Machinery and equipment 81,851 - - 320,100 401,951 Accumulated depreciation/amortization (7,267,558) (769,315) - (85,769) (8,122,642) Total capital assets (net of accumulated depreciation) 5,729,148 815,386 - 235,306 6,779,840 Total noncurrent assets 5,729,148 815,386 - 235,306 6,779,840 Total assets 6,122,647 1,040,400 2,869 1,604,964 8,770,880 LIABILITIES Current Liabilities
Accounts payable 14,562 1,066 3,852 48,567 68,047 Salaries and benefits payable 874 - - 17,621 18,495 Due to other funds - - 35,700 - 35,700 Advances to other funds 375,468 261,224 - - 636,692 Interest payable - - - 534 534 Compensated absences - current portion - - - 44,740 44,740 Bonds and notes payable - current portion 19,622 19,622 Total current liabilities 390,904 262,290 39,552 131,084 823,830 Noncurrent Liabilities Compensated absences payable - - - 43,560 43,560 Bonds and notes payable, net - - - 272,373 272,373 Total noncurrent liabilities - - - 315,933 315,933 Total liabilities 390,904 262,290 39,552 447,017 1,139,763 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to leases 354,157 118,054 - - 472,211 Total deferred inflows of resources 354,157 118,054 - - 472,211 NET POSITION (DEFICIT) Net investment in capital assets 5,729,148 815,386 - 235,306 6,779,840 Unrestricted (351,562) (155,330) (36,683) 922,641 379,066 Total net position 5,377,586 $ 660,056 $ (36,683) $ 1,157,947 $ 7,158,906 $ Non-major Funds

City of Hanford
Combining Statement of Revenues, Expenses and Changes in Net Position Non-major Enterprise Funds
For the Year Ended June 30, 2025
-116-
Airport Intermodal Courthouse Building Safety
Fund Fund Square Fund Totals

OPERATING REVENUES
Charges for services 120,938 $ - $ 36,954 $ 2,328,202 $ 2,486,094 $ Other revenues 147,631 221 - 87,119 234,971 Total operating revenues 268,569 221 36,954 2,415,321 2,721,065 OPERATING EXPENSES Personnel services 55,156 - - 1,029,951 1,085,107 Services and supplies 327,032 27,652 89,576 724,928 1,169,188 Depreciation and amortization 319,509 26,116 - 24,898 370,523 Total operating expenses 701,697 53,768 89,576 1,779,777 2,624,818 Operating income (loss) (433,128) (53,547) (52,622) 635,544 96,247 NON-OPERATING REVENUES (EXPENSES) Interest income 17,883 2,874 - 44,937 65,694
Interest expense - - - (14,211) (14,211) Unrealized gain (loss) on investments 889 640 - - 1,529 Lease revenue 71,154 39,351 - - 110,505 Total non-operating revenue (expenses) 89,926 42,865 - 30,726 163,517 Income (loss) before capital contributions and transfers (343,202) (10,682) (52,622) 666,270 259,764 Transfers in - - 1,250,706 - 1,250,706 Transfers out (109,918) - - - (109,918) Total Capital Contributions and Transfers (109,918) - 1,250,706 - 1,140,788 Change in net position (453,120) (10,682) 1,198,084 666,270 1,400,552 NET POSITION (DEFICIT) Beginning of year, as previously reported 5,830,706 670,738 (1,234,767) 803,227 6,069,904 Correction of an error - - - (311,550) (311,550) Beginning of year, as restated 5,830,706 670,738 (1,234,767) 491,677 5,758,354 End of year 5,377,586 $ 660,056 $ (36,683) $ 1,157,947 $ 7,158,906 $ Non-major Funds

City of Hanford
Combining Statement of Cash Flows
Non-major Enterprise Funds
For the Year Ended June 30, 2025
-117-
Airport Intermodal Courthouse Building Safety
Fund Fund Square Fund Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received for current services 138,905 $ - $ 39,432 $ 2,139,470 $ 2,317,807 $ Cash received for other operating revenues 147,631 221 - 87,119 234,971 Cash paid for services and supplies (318,046) (28,693) (89,387) (711,323) (1,147,449) Cash paid for salaries and benefits (54,282) - - (973,134) (1,027,416) Net cash provided (used) by operating activities (85,792) (28,472) (49,955) 542,132 377,913 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers (to)/from other funds (109,918) - 1,250,706 - 1,140,788 Loans from/(to) other funds - - (1,200,751) - (1,200,751) Net cash provided (used) by non-capital financing activities (109,918) - 49,955 - (59,963)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal payments on long-term debt - - - (19,555) (19,555) Interest payments on long-term debt - - - (13,677) (13,677) Payments for capital asset acquisition (128,260) - - (975) (129,235) Lease income 45,627 39,200 - - 84,827 Net cash provided (used) by capital and related financing activities (82,633) 39,200 - (34,207) (77,640) CASH FLOWS FORM INVESTING ACTIVITIES Unrealized gain (loss) on investments 889 640 - - 1,529 Interest received 14,194 2,953 - 44,937 62,084 Net cash provided (used) by investing activities 15,083 3,593 - 44,937 63,613 Net increase (decrease) in cash and investments (263,260) 14,321 - 552,862 303,923 Cash and investments, beginning of year 268,658 45,579 - 577,392 891,629 Cash and investments, end of year 5,398 $ 59,900 $ - $ 1,130,254 $ 1,195,552 $ Reconciliation to Statement of Net Position:

Cash and investments 5,398 $ 59,900 $ - $ 1,130,254 $ 1,195,552 $ Total cash and investments 5,398 $ 59,900 $ - $ 1,130,254 $ 1,195,552 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (433,128) $ (53,547) $ (52,622) $ 635,544 $ 96,247 $ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 319,509 26,116 - 24,898 370,523 (Increase) decrease in:

Receivables 17,967 - 2,478 (188,732) (168,287) Prepaids - - - (1,050) (1,050) Accounts payable 8,986 (1,041) 189 14,655 22,789 Salaries and benefits payable 874 - - 6,053 6,927 Compensated absences - - - 50,764 50,764 Total Adjustments 347,336 25,075 2,667 (93,412) 281,666 Net cash provided (used) by operating activities (85,792) $ (28,472) $ (49,955) $ 542,132 $ 377,913 $ Noncash from Capital and Related Financing Activities
Capital Contributions - $ - $ - $ - $ - $
Non-major Funds

City of Hanford
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
-118-
City Payroll
Fund
Risk Management
Fund
Computer
Maintenance
Fund
ASSETS
Current assets
Cash and investments 480,346 $ 8,344,010 $ 538,209 $
Receivables - - 408 Deposits - 185,000 - Prepaid expenses - - - Inventory - - - Total current assets 480,346 8,529,010 538,617 Noncurrent assets Capital assets:

Building and improvements - - - Machinery and equipment - - 1,771,281 Right to use assets - - 237,867 Accumulated depreciation/amortization - - (1,500,023) Total capital assets (net of accumulated depreciation) - - 509,125 Total noncurrent assets - - 509,125 Total assets 480,346 8,529,010 1,047,742 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - - 82,307 Total deferred outflows of resources - - 82,307

LIABILITIES
Current Liabilities
Accounts payable 388,050 177,782 15,141 Salaries and benefits payable 3,060 - 7,384 Interest payable - - 2,080
Compensated absences - current portion - - 6,818
Bonds and notes payable - current portion - - 9,421
SBITA payable - current portion - - 79,275 Total current liabilities 391,110 177,782 120,119 Noncurrent Liabilities Compensated absences payable - - 40,922 Claims payable - 7,566,000 - Bonds and notes payable - - 130,780 Net pension liability - - 160,613 Total noncurrent liabilities - 7,566,000 332,315
Total liabilities 391,110 7,743,782 452,434

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - - 3,053 Total deferred inflows of resources - - 3,053

NET POSITION
Net investment in capital assets - - 509,125 Unrestricted 89,236 785,228 165,437 Total net position 89,236 $ 785,228 $ 674,562 $

(concluded)
-119-
Building Fund
Fleet
Management
Fund Medical Fund Totals
$ 20,269,108 1,865,477 $ 1,588,109 $ 33,085,259 $
- 1,943 - 2,351
- - - 185,000
30,375 - - 30,375
295,796 - - 295,796
20,595,279 1,867,420 1,588,109 33,598,781
26,191 - - 26,191
13,495,084 35,348 - 15,301,713
- - - 237,867
(9,428,462) (14,484) - (10,942,969)
4,092,813 20,864 - 4,622,802
4,092,813 20,864 - 4,622,802
24,688,092 1,888,284 1,588,109 38,221,583
164,614 164,614 - 411,535
164,614 164,614 - 411,535
159,164 55,774 114,905 910,816
16,725 8,446 (3,197) 32,418
1,724 1,218 - 5,022
2,348 2,940 - 12,106
31,673 22,369 - 63,463
- - - 79,275
211,634 90,747 111,708 1,103,100
70,672 34,595 - 146,189
- - - 7,566,000
439,653 310,511 - 880,944
321,226 321,226 - 803,065
831,551 666,332 - 9,396,198
1,043,185 757,079 111,708 10,499,298
6,106 6,106 - 15,265
6,106 6,106 - 15,265
4,092,813 20,864 - 4,622,802
19,710,602 1,268,849 1,476,401 23,495,753 $ 23,803,415 1,289,713 $ 1,476,401 $ 28,118,555 $

City of Hanford
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
-120-
City Payroll
Fund
Risk
Management
Fund
Computer
Maintenance
Fund

OPERATING REVENUES
Charges for services - $ 2,176,745 $ 1,021,566 $
Other revenues - 2,607 30,408 Total operating revenues - 2,179,352 1,051,974 OPERATING EXPENSES Personnel services - - 464,771 Services and supplies 217 2,823,418 414,728 Depreciation and amortization - - 313,339
Total operating expenses 217 2,823,418 1,192,838 Operating income (loss) (217) (644,066) (140,864) NON-OPERATING REVENUES (EXPENSES) Interest income 8,027 262,883 17,124
Interest expense - - (9,719)
Unrealized gain (loss) on investments 5,114 95,948 5,807 Gain/(loss) on disposals - - - Total non-operating revenue (expenses) 13,141 358,831 13,212 Income (loss) before capital contributions and transfers 12,924 (285,235) (127,652) Transfers in - - - Transfers out - - - Change in net position 12,924 (285,235) (127,652) NET POSITION Beginning of year 76,312 1,070,463 802,214 End of year 89,236 $ 785,228 $ 674,562 $

(concluded)
-121-
Building Fund
Fleet
Management
Fund Medical Fund Totals
$ 5,624,258 1,452,530 $ 3,485,900 $ 13,760,999 $
25,319 2,103 3,689 64,126
5,649,577 1,454,633 3,489,589 13,825,125
1,083,709 678,821 - 2,227,301
2,477,604 507,228 2,913,424 9,136,619
710,545 1,841 - 1,025,725
4,271,858 1,187,890 2,913,424 12,389,645
1,377,719 266,743 576,165 1,435,480
737,462 52,386 59,222 1,137,104
(23,801) (16,810) - (50,330)
230,953 17,056 - 354,878
(9,469) - - (9,469)
935,145 52,632 59,222 1,432,183
2,312,864 319,375 635,387 2,867,663
22,705 4,486,964 - 4,509,669
(749,451) (5,255,060) - (6,004,511)
1,544,768 (407,371) 635,387 1,372,821
22,258,647 1,697,084 841,014 26,745,734 $ 23,803,415 1,289,713 $ 1,476,401 $ 28,118,555 $

City of Hanford
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
-122-
City Payroll
Fund
Risk Management
Fund
Computer
Maintenance
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received for current services - $ 2,189,959 $ 1,021,215 $ Cash received for other operating revenues - 2,607 30,408 Cash paid for services and supplies 151,977 (2,273,660) (409,684) Cash paid for salaries and benefits (22,529) - (410,702) Net cash provided (used) by operating activities 129,448 (81,094) 231,237 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers (to)/from other funds - - - Net cash provided (used) by non-capital financing activities - - -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on long-term debt - - (9,389)
Interest payments on long-term debt - - (10,744) Payments for capital asset acquisition - - - SBITA payments - - (77,207) Proceeds from the sale of capital assets - - - Net cash provided (used) by capital and related financing activities - - (97,340) CASH FLOWS FORM INVESTING ACTIVITIES Unrealized gain (loss) on investments 5,114 95,948 5,807 Interest received 8,027 262,883 17,124 Net cash provided (used) by investing activities 13,141 358,831 22,931 Net increase (decrease) in cash and investments 142,589 277,737 156,828 Cash and investments, beginning of year 337,757 8,066,273 381,381 Cash and investments, end of year 480,346 $ 8,344,010 $ 538,209 $ Reconciliation to Statement of Net Position:

Cash and investments 480,346 $ 8,344,010 $ 538,209 $
Total cash and investments 480,346 $ 8,344,010 $ 538,209 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (217) $ (644,066) $ (140,864) $ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation - - 313,339 (Increase) decrease in:

Receivables - 13,214 (351)
Inventory - - - Deferred outflow of resources - - (1,594) Accounts payable 152,194 (17,242) 5,044 Salaries and benefits payable (22,529) - 1,422 Compensated absences - - 26,957 Claims payable - 567,000 - Net pension liability - - 31,618 Deferred inflow of resources - - (4,334) Total Adjustments 129,665 562,972 372,101 Net cash provided (used) by operating activities 129,448 $ (81,094) $ 231,237 $

(concluded)
-123-
Building Fund
Fleet
Management
Fund Medical Fund Totals
$ 5,624,481 1,451,856 $ 3,486,202 $ 13,773,713 $
25,319 2,103 3,689 64,126
(2,344,956) (513,398) (2,898,025) (8,287,746)
(987,902) (604,598) (3,197) (2,028,928)
2,316,942 335,963 588,669 3,521,165
(768,096) (726,746) - (1,494,842)
(768,096) (726,746) - (1,494,842)
(31,564) (22,293) - (63,246)
(22,077) (15,592) - (48,413)
(341,693) (11,264) - (352,957)
- - - (77,207)
6,405 644,111 - 650,516
(388,929) 594,962 - 108,693
230,953 17,056 - 354,878
737,462 52,386 59,222 1,137,104
968,415 69,442 59,222 1,491,982
2,128,332 273,621 647,891 3,626,998
18,140,776 1,591,856 940,218 29,458,261 $ 20,269,108 1,865,477 $ 1,588,109 $ 33,085,259 $ $ 20,269,108 1,865,477 $ 1,588,109 $ 33,085,259 $
$ 20,269,108 1,865,477 $ 1,588,109 $ 33,085,259 $
$ 1,377,719 266,743 $ 576,165 $ 1,435,480 $
710,545 1,841 - 1,025,725
223 (674) 302 12,714
13,926 - - 13,926
(3,188) (3,188) - (7,970)
118,722 (6,170) 15,399 267,947
4,031 (286) (3,197) (20,559)
40,396 23,129 - 90,482
- - - 567,000
63,236 63,236 - 158,090
(8,668) (8,668) - (21,670)
939,223 69,220 12,504 2,085,685 $ 2,316,942 335,963 $ 588,669 $ 3,521,165 $

City of Hanford
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
-124-
Renters' Miscellaneous
Civil Insurance COE Park Deposits
Subpoena Deposits Deposits Trust Total
ASSETS
Cash and investments 75,448 $ 4,034 $ 488 $ 1,886,060 $ 1,966,030 $ Accounts receivable - - - 29,823 29,823 Total Assets 75,448 4,034 488 1,915,883 1,995,853 LIABILITIES Accounts payable 2,082 - - 1,281,603 1,283,685 Deposits held for others 143,449 835 - 554,027 698,311 Total Liabilities 145,531 835 - 1,835,630 1,981,996 NET POSITION (DEFICIT) Restricted (70,083) 3,199 488 80,253 13,857 Total Net Position (70,083) $ 3,199 $ 488 $ 80,253 $ 13,857 $

City of Hanford
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2025
-125-
Renters' Miscellaneous
Civil Insurance COE Park Deposits
Subpoena Deposits Deposits Trust Total

ADDITIONS
Other additions - $ - $ - $ - $ - $
Total Additions - - - - - DEDUCTIONS
General government - - - - - Total Deductions - - - - - Change in Fiduciary Net Position - - - - - NET POSITION (DEFICIT) Beginning of year (70,083) 3,199 488 80,253 13,857 End of year (70,083) $ 3,199 $ 488 $ 80,253 $ 13,857 $

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STATISTICAL SECTION

City of Hanford
Net Position by Component
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-126-
2016 2017 2018 2019
Governmental activities
Net investment in capital assets 138,153,691 $ 143,053,747 $ 147,136,482 $ 152,623,126 $ Restricted 44,303,261 40,033,008 37,759,964 36,912,718 Unrestricted (4,230,067) (11,322,040) (11,446,292) (10,241,262) Total governmental activities net position 178,226,885 $ 171,764,715 $ 173,450,154 $ 179,294,582 $ Business-type activities
Net investment in capital assets 79,775,875 $ 80,951,839 $ 86,648,028 $ 92,471,031 $ Restricted 324 2,420 2,419 2,419 Unrestricted 17,620,112 21,659,423 28,437,335 32,334,598 Total business-type activities net position 97,396,311 $ 102,613,682 $ 115,087,782 $ 124,808,048 $ Primary government
Net investment in capital assets 217,929,566 $ 224,005,586 $ 233,784,510 $ 245,094,157 $ Restricted 44,303,585 40,035,428 37,762,383 36,915,137 Unrestricted 13,390,045 10,337,383 16,991,043 22,093,336 Total primary government net position 275,623,196 $ 274,378,397 $ 288,537,936 $ 304,102,630 $ Fiscal Year
Source: City of Hanford Finance Department

City of Hanford
Net Position by Component, (Continued)
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-127-
2020 2021 2022 2023 2024 2025
$ 157,116,548 158,401,312 $ 153,865,284 $ 155,203,294 $ 165,368,191 $ 160,790,661 $ 39,517,385 31,543,209 44,531,429 23,285,547 29,207,622 36,440,081 (16,865,455) (13,031,815) (20,739,018) 16,776,297 18,755,308 23,999,624 $ 179,768,478 176,912,706 $ 177,657,695 $ 195,265,138 $ 213,331,121 $ 221,230,366 $ $ 108,641,344 96,648,645 $ 104,136,670 $ 141,608,046 $ 121,203,106 $ 125,287,048 $ 2,379 2,379 2,379 4,743 - -
36,037,365 37,049,575 46,369,374 13,013,309 46,530,975 55,290,832 $ 144,681,088 133,700,599 $ 150,508,423 $ 154,626,098 $ 167,734,081 $ 180,577,880 $ $ 265,757,892 255,049,957 $ 258,001,954 $ 296,811,340 $ 286,571,297 $ 286,077,709 $ 39,519,764 31,545,588 44,533,808 23,290,290 29,207,622 36,440,081 19,171,910 24,017,760 25,630,356 29,789,606 65,286,283 79,290,456 $ 324,449,566 310,613,305 $ 328,166,118 $ 349,891,236 $ 381,065,202 $ 401,808,246 $

City of Hanford
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-128-
2016 2017 2018 2019
Expenses
Governmental activities:

General government 1,985,661 $ 1,834,286 $ 2,411,345 $ 1,818,009 $ Public safety 14,331,789 16,605,006 17,908,901 20,415,070 Public works 8,587,563 7,970,040 9,665,063 8,608,632 Parks and recreation 2,992,500 3,577,165 2,986,101 2,681,282 Community development 3,602,920 9,419,387 5,255,402 4,140,104 Interest expense - - - - Total governmental activities expenses 31,500,433 39,405,884 38,226,812 37,663,097 Business-type activities:

Water system 6,416,603 7,038,650 6,897,804 6,097,140 Wastewater system 5,104,626 5,543,929 5,917,049 4,738,256 Storm drain 1,087,813 1,109,392 415,192 (112,831) Refuse 6,524,554 7,116,048 8,488,643 8,281,902 Airport 401,980 366,610 408,718 429,455 Intermodal 107,976 111,455 68,237 50,808 Courthouse square 266,876 238,637 111,060 177,774 Building Safety - - - - Total business-type activities expenses 19,910,428 21,524,721 22,306,703 19,662,504 Total primary government expenses 51,410,861 $ 60,930,605 $ 60,533,515 $ 57,325,601 $ Program Revenues
Governmental activities:

Charges for services 8,174,050 $ 7,378,383 $ 5,117,638 $ 8,160,049 $ Operating grants and contributions 981,843 1,244,656 474,195 1,402,082 Capital grants and contributions 1,435,941 754,175 1,745,470 710,585 8,606,753 10,591,834 $ 8,107,764 $ 10,272,716 Business-type activities:

Charges for services 20,332,313 23,361,084 25,347,121 24,277,814 Capital grants and contributions 1,096,236 763,709 - - 24,124,793 21,428,549 25,347,121 24,277,814 Total primary government revenues 32,020,383 $ 32,731,546 $ 33,454,885 $ 34,550,530 $ Net (expense)/revenue
Governmental activities (20,908,599) $ (30,799,131) $ (30,119,048) $ (27,390,381) $ Business-type activities 1,518,121 2,600,072 3,040,418 4,615,310 $ (28,199,059) (19,390,478) $ (27,078,630) $ (22,775,071) $ Fiscal Year
Total governmental activities program revenues
Total business-type activities program revenues
Total primary government net (expense)/revenue
Source: City of Hanford Finance Department

City of Hanford
Changes in Net Position, (Continued)
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-129-
2020 2021 2022 2023 2024 2025
$ 7,777,169 7,424,876 $ 6,839,279 $ 8,647,803 $ 7,755,643 $ 26,361,639 $ 21,878,581 22,348,294 21,556,505 36,761,886 26,472,385 25,850,371 4,310,762 5,328,310 4,644,058 4,151,802 10,096,705 10,121,963 3,290,716 3,628,645 3,280,139 4,163,652 5,483,946 7,038,008 2,636,159 2,780,857 2,248,980 2,468,828 2,890,465 2,362,734 - - - 1,140,021 1,086,925 1,012,248
39,893,387 41,510,982 38,568,961 57,333,992 53,786,069 72,746,963 7,613,367 7,430,096 8,418,232 10,805,234 7,711,131 10,570,388 5,830,921 5,375,459 5,776,311 7,127,609 7,506,365 8,199,461 1,082,412 747,116 945,288 1,624,217 1,680,905 1,208,294 8,173,990 8,478,104 9,019,863 10,388,974 10,852,999 12,416,109 645,131 505,212 769,767 671,372 558,304 707,402
57,818 57,761 49,616 56,589 56,256 53,768
102,750 79,642 97,270 63,436 107,624 92,428
- - - - 1,649,670 1,793,988
23,506,389 22,673,390 25,076,347 30,737,431 30,123,254 35,041,838 $ 63,399,776 64,184,372 $ 63,645,308 $ 88,071,423 $ 83,909,323 $ 107,788,801 $ $ 5,962,037 7,235,394 $ 6,970,563 $ 6,491,551 $ 4,544,558 $ 4,366,807 $ 1,908,465 1,606,323 4,897,714 8,160,718 12,658,886 10,460,453 780,926 416,429 531,131 15,030,908 16,354,756 6,085,235 8,651,428 9,258,146 12,399,408 29,683,177 33,558,200 20,912,495 26,671,382 25,726,945 27,232,541 26,733,436 32,097,134 39,903,211 - - - 5,154,104 4,431,308 624,700
26,671,382 25,726,945 27,232,541 31,887,540 36,528,442 40,527,911 $ 35,322,810 34,985,091 $ 39,631,949 $ 61,570,717 $ 70,086,642 $ 61,440,406 $ $ (31,241,959) (32,252,836) $ (26,169,553) $ (27,650,815) $ (20,227,869) $ (51,834,468) $ 3,164,993 3,053,555 2,156,194 1,150,109 6,405,188 5,486,073 $ (28,076,966) (29,199,281) $ (24,013,359) $ (26,500,706) $ (13,822,681) $ (46,348,395) $

City of Hanford
Changes in Net Position (Continued)
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-130-
2016 2017 2018 2019
Government activities:

Taxes
Property Taxes 10,201,145 $ 10,019,733 $ 11,369,719 $ 11,901,159 $ Sales and use tax 9,552,912 13,287,020 13,737,784 14,006,613 Franchise tax 1,030,056 952,304 1,080,031 900,895 Other taxes 2,281,349 2,164,133 1,056,995 1,183,139 Revenue from use of money and property 1,657,481 809,857 796,670 1,685,494 Impact Fees - - 2,602,398 1,876,232
Contributed capital - - 4,993,434 3,014,556
Miscellaneous/other 283,381 334,227 1,077,706 377,283 Transfers - Interfund (1,140,941) (506,048) (1,825,044) (1,039,937) Investment earnings - - - - Gain (Loss) on disposal of assets - - - - Total governmental activities 23,865,383 27,061,226 34,889,693 33,905,434 Business-type activities:

Revenue from use of money and property 153,781 186,871 169,094 863,991 Impact fees 2,676,359 1,619,558 1,543,490 1,413,423 Contributed Capital - - 1,591,676 1,447,855 Impairment loss - - - - Miscellaneous/other 566,350 304,822 1,095,274 286,931 Transfers - Interfund 1,140,941 506,048 1,825,044 1,039,937 Investment Earnings - - - - Lease Revenue - - - - Loss on lease termination - - - - Gain (Loss) on sale of capital assets - - - - Total business-type activities 4,537,431 2,617,299 6,224,578 5,052,137 Total primary government 28,402,814 $ 29,678,525 $ 41,114,271 $ 38,957,571 $ Extraordinary Items (Governmental Activities)
Settlement expenditures - - - - Total primary government - $ - $ - $ - $ Change in Net Position
Governmental activities 2,956,784 $ (3,737,905) $ 4,770,645 $ 6,515,053 $ Business-type activities 6,055,552 5,217,371 9,264,996 9,667,447 Total primary government 9,012,336 $ 1,479,466 $ 14,035,641 $ 16,182,500 $ Fiscal Year
Source: City of Hanford Finance Department

City of Hanford
Changes in Net Position, (Concluded)
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-131-
2020 2021 2022 2023 2024 2025
$ 13,414,233 12,295,760 $ 14,205,410 $ 13,988,031 $ 15,019,781 $ 16,445,724 $ 16,332,234 14,103,551 18,199,243 18,011,255 16,772,531 21,107,925 1,152,391 998,402 1,141,696 1,256,488 1,310,678 1,173,931 1,292,189 1,239,906 2,735,498 2,696,299 1,853,648 2,433,578 936,759 917,907 (1,478,136) - - -
1,098,344 1,720,516 3,372,830 - - -
2,233,673 6,196,908 - - - -
374,064 370,256 111,176 124,250 539,645 17,808,224
(1,861,652) (1,004,179) (924,456) (243,210) (1,154,605) (1,805,302) - - - 976,872 2,947,174 2,120,623
(8,936) (993,957) 21,714 279,583 18,741 137,460
34,963,299 35,845,070 37,384,975 37,089,568 37,307,593 59,422,163 243,843 714,727 (643,781) - - -
2,220,328 1,369,100 2,916,474 - - -
885,641 3,424,285 - - - -
- (974,950) - - - -
3,014,868 352,995 15,138 2,384,559 2,615,755 3,155,773
1,861,652 1,004,179 924,456 243,210 1,154,605 1,805,302 - - - 871,114 2,735,869 2,514,315
- - 610,805 193,373 111,166 188,843
- - - (724,690) - -
(134,464) - - - 85,400 5,043
8,091,868 5,890,336 3,823,092 2,967,566 6,702,795 7,669,276 $ 43,055,167 41,735,406 $ 41,208,067 $ 40,057,134 $ 44,010,388 $ 67,091,439 $ - - - (12,500,000) - - $ - - $ - $ (12,500,000) $ - $ - $ $ 3,721,340 3,592,234 $ 11,215,422 $ (3,061,247) $ 17,079,724 $ 7,587,695 $ 11,256,861 8,943,891 5,979,286 4,117,675 13,107,983 13,155,349 $ 14,978,201 12,536,125 $ 17,194,708 $ 1,056,428 $ 30,187,707 $ 20,743,044 $

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City of Hanford
Governmental Activities Tax and Assessments Revenues by Source Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-132-
Fiscal Property Sales & Use Franchise Transfer Transient Occupancy Other Year Taxes Tax Taxes Taxes Taxes Taxes Total
2016 10,147,678 $ 9,552,912 $ 1,030,056 $ 154,528 $ 380,945 $ 569,721 $ 21,835,840 $ 2017 9,968,170 13,287,020 952,304 165,387 381,106 589,580 25,343,567 2018 10,704,232 12,620,519 1,080,031 163,628 391,743 685,830 25,645,983 2019 11,217,176 12,941,563 900,896 155,791 519,663 682,518 26,417,607 2020 11,514,040 12,896,552 998,401 163,345 534,169 1,041,783 27,148,290 2021 12,565,022 15,086,391 1,152,391 214,997 506,042 813,256 30,338,099 2022 13,043,532 16,887,598 1,141,696 266,734 633,951 2,107,462 34,080,973 2023 13,755,470 18,011,255 1,256,488 232,561 770,144 1,926,155 35,952,073 2024 15,019,781 16,772,531 1,310,678 235,563 750,696 1,853,648 35,942,897 2025 16,445,724 21,107,925 1,173,931 217,043 705,508 1,511,027 41,161,158 Includes General Fund, Special Revenue, Capital Projects Funds, Source: City of Hanford Finance Department

City of Hanford
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-133-
2016 2017 2018 2019
General fund
Non Spendable:

Long-term receivables 6,551,252 $ - $ - $ - $
Land for resale 246,450 246,450 - - Prepaid expenses - - - 384,221 Deposits - - - - Insurance deposits 102,500 102,500 102,500 180,950 Committed for:

Community development - 223,841 - - Capital Projects 361,571 410,805 - - Unassigned 7,588,301 8,243,676 8,504,194 6,884,054 Total general fund 14,850,074 9,227,272 8,606,694 7,449,225 All other governmental funds
Non Spendable:

Long-term receivables 2,327,669 $ 2,308,419 $ 2,252,474 $ 2,252,416 $ Loan receivable - - - - Lease receivable - - - - Prepaid expenses - - - 1,686 Restricted for:

Community development 18,024,438 18,828,294 19,451,267 19,909,210 Streets and roads 9,235,637 3,163,348 3,150,066 6,810,336 Recreation 3,438,237 3,883,314 3,442,097 3,701,300
Landscape Maintenance 633,978 570,497 470,405 526,765
Public safety 1,860,328 1,901,468 847,555 452,490
Committed for:

Parking and business improvement 7,715,855 7,271,925 7,529,338 5,882,433 Community development 1,154,093 2,490,055 616,762 442,281 Street and roads - - - - Parks and community services - - - - Public safety - - - - Cannabis - - - - Unassigned (49,932) (1,627,279) (15,381) (16,291) Total all other governmental funds 44,340,303 38,790,041 37,744,583 39,962,626 Total fund balance all governmental funds 59,190,377 $ 48,017,313 $ 46,351,277 $ 47,411,851 $ Fiscal Year
Source: City of Hanford Finance Department

City of Hanford
Fund Balances of Governmental Funds (Continued)
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-134-
2020 2021 2022 2023 2024 2025
$ - - $ - $ - $ - $ - $
- - - - - -
6,302 92,744 144,650 199,992 226,857 282,165
- - 104,500 104,500 104,500 104,500
104,500 104,500 - - - -
- - - - - -
- - - - - -
10,926,987 5,383,628 3,031,928 10,214,594 12,610,835 13,596,699 11,037,789 5,580,872 3,281,078 10,519,086 12,942,192 13,983,364 $ 20,503,159 2,252,415 $ - $ - $ - $ - $ - - 20,346,974 20,378,274 19,501,968 19,646,832
- - 557,209 - - -
1,722 1,722 1,722 1,100 1,100 1,100
1,646,956 20,434,281 1,870,075 - - 2,577,388
6,522,042 5,744,795 10,075,783 15,276,502 20,079,629 22,422,771 4,322,904 4,204,305 5,107,894 5,705,236 5,975,177 7,545,344 731,600 581,818 968,179 1,451,419 2,046,521 2,358,368
399,646 636,174 713,464 852,390 1,106,295 1,536,210
4,931,758 5,154,829 3,902,047 3,537,705 2,986,008 3,025,495 552,161 460,475 722,548 7,550,690 10,152,998 11,488,526 - - - - - 1,041,250
- - - - - 130,156
- - - - - 1,984,882
124,305 - 121,818 126,255 197,606 265,291
(109,905) (269,568) (583,155) (317,109) (146,712) (23,693) 39,626,348 39,201,246 43,804,558 54,562,462 61,900,590 73,999,920 $ 50,664,137 44,782,118 $ 47,085,636 $ 65,081,548 $ 74,842,782 $ 87,983,284 $

City of Hanford
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-135-
2016 2017 2018 2019
Revenues
Taxes and special assessments 27,293,684 $ 29,647,843 $ 30,598,941 $ 31,610,153 $ Aid from other government agencies 3,755,254 2,896,846 4,691,907 6,078,876 Licenses and permits 1,106,359 1,038,419 844,802 938,841 Fines and forfeitures 212,736 185,641 183,604 170,956 Charges for services 1,233,071 1,171,293 1,377,615 1,275,044 Lease Revenue - - - - Revenue from use of money and property 1,723,563 866,874 865,159 1,233,994 Miscellaneous 282,591 367,111 1,641,647 439,602 Total Revenues 35,607,258 36,174,027 40,203,675 41,747,466 Expenditures General government 2,218,049 1,864,740 2,787,272 1,762,734 Public safety 16,220,588 16,880,475 17,772,608 19,357,821 Public works 4,294,423 3,454,560 4,105,399 3,337,476 Recreation 2,699,506 3,037,478 4,318,774 3,618,014 Community development 3,777,870 9,365,735 2,803,849 2,868,807 Debt service:

Principal - - - -
Interest - - - - Capital outlay 6,772,187 10,235,425 7,185,808 7,995,534 Total Expenditures 35,982,623 44,838,413 38,973,710 38,940,386 Excess of revenues over (under) expenditures (375,365) (8,664,386) 1,229,965 2,807,080 Other Financing Sources (Uses) Transfers in 304,218 2,503,606 5,172,191 1,962,967 Transfers out (1,002,360) (2,288,019) (8,095,493) (3,381,448) Proceeds from issuance of bonds - - - - Lease and SBITA acquisition - - - - Loss on lease termination - - - - Proceeds from sale of assets - - - - Total Other Financing Sources (Uses) (698,142) 215,587 (2,923,302) (1,418,481) Net Change in Fund Balances Before Extraordinary Item (1,073,507) (8,448,799) (1,693,337) 1,388,599 Extraordinary Item - - - -
Net Change in Fund Balances (1,073,507) $ (8,448,799) $ (1,693,337) $ 1,388,599 $ Debt Service as a percentage of
non-capital expenditures 0.00% 0.00% 0.00% 0.00%
Fiscal Year
Source: City of Hanford Finance Department

City of Hanford
Changes in Fund Balances of Governmental Funds (Continued) Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-136-
2020 2021 2022 2023 2024 2025
$ 34,967,879 31,981,731 $ 41,422,170 $ 43,260,146 $ 44,194,513 $ 49,281,206 $ 3,097,879 3,516,928 5,380,585 6,208,765 10,445,228 7,607,785 1,052,363 1,105,993 1,797,872 1,849,277 86,270 63,690
163,068 171,876 224,399 242,675 181,315 173,836
2,494,238 1,787,004 3,128,433 3,205,579 2,991,009 2,733,388 - - 19,496 - 137,197 163,635
761,614 1,559,423 (847,591) 1,335,944 2,660,640 2,736,963 605,185 434,160 194,405 149,569 511,397 17,756,065
43,142,226 40,557,115 51,319,769 56,251,955 61,207,569 80,516,568 2,134,148 2,666,323 4,162,723 3,042,292 3,850,724 22,073,733 20,775,293 20,484,238 42,528,787 23,465,277 23,950,549 26,572,968 3,731,386 4,753,648 6,192,054 3,770,437 3,278,704 3,877,973 3,441,612 3,510,358 5,662,458 4,670,976 4,995,392 6,323,733 2,758,705 2,790,439 3,508,200 2,716,570 2,031,415 1,890,787 - - 22,193 1,243,300 1,596,228 1,841,625
- - 513 1,140,021 1,086,925 1,012,248
3,255,771 7,643,581 4,623,507 6,362,118 10,218,712 5,359,450 36,096,915 41,848,587 66,700,435 46,410,991 51,008,649 68,952,517 7,045,311 (1,291,472) (15,380,666) 9,840,964 10,198,920 11,564,051 1,583,169 320,279 6,194,001 4,627,696 2,176,873 5,731,411 (2,767,302) (825,757) (7,508,224) (4,934,143) (3,309,157) (6,041,871) - - 25,390,437 - - -
- - 89,571 - 675,857 1,755,501
- - - (11,319) - -
- - 21,716 304,024 18,741 131,410
(1,184,133) (505,478) 24,187,501 (13,742) (437,686) 1,576,451 5,861,178 (1,796,950) 8,806,835 9,827,222 9,761,234 13,140,502 - - (12,500,000) - - - $ 5,861,178 (1,796,950) $ (3,693,165) $ 9,827,222 $ 9,761,234 $ 13,140,502 $

0.00% 0.00% 0.03% 5.07% 5.44% 4.14%

City of Hanford
General Fund Tax Revenue by Source
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-137-
Fiscal Sales & Use Property Franchise Transfer Transient Business Misc.

Year Tax Taxes Taxes Taxes Taxes Taxes Taxes Total
2016 8,140,001 $ 10,147,678 $ 1,030,056 $ 154,528 $ 380,945 $ 512,677 $ - $ 20,365,885 $ 2017 11,701,687 9,968,170 952,304 165,387 381,106 536,077 - 23,704,731 2018 11,513,314 10,704,232 1,080,031 163,628 391,743 587,200 45,303 24,485,451 2019 11,403,028 11,217,176 900,895 155,791 519,663 586,965 38,726 24,822,244 2020 12,224,645 11,514,040 998,402 163,345 534,170 631,399 64,970 26,130,971 2021 14,719,692 12,438,447 1,152,391 214,997 506,042 678,415 173,510 29,883,494 2022 16,100,599 13,043,532 1,141,696 266,734 633,951 1,156,017 83,091 32,425,620 2023 16,587,257 13,755,470 1,256,488 232,561 770,144 749,580 59,758 33,411,258 2024 15,559,418 15,019,781 1,310,678 235,563 750,696 860,490 8,572 33,745,197 2025 16,364,359 16,445,724 1,173,931 217,043 705,508 840,487 131,145 35,878,197 Source: City of Hanford Finance Department

City of Hanford
Top 25 Sales Tax Producers
As of June 30, 2025, and Ten Years Ago
-138-
Taxpayers Business Type Taxpayers Business Type
Arco AM/PM Mini Marts Service Stations AT & T Mobility Miscellaneous Retail Chevron Service Stations Service Stations Chevron Service Stations Service Stations Costco Wholesale Department Stores Crop Production Services Florist/Nursery Crop Production Services Florist/Nursery Foods Co. Food Markets First Solar Leasing Freeway Toyota Of Hanford Auto Sales - New Freeway Toyota Of Hanford Auto Sales - New Hanford Chrysler Dodge Jeep Ram Auto Sales - New Hanford Bess Green Energy Hanford Gas Service Stations
Hanford Chrysler Dodge Jeep Ram Auto Sales - New Hanford Hyundai Auto Sales - New Hanford Hyundai Auto Sales - New Helena Industries Company Chemical Products Helena Industries Company Chemical Products Home Depot Bldg.Matls-Retail Herbnjoy - Mmd Drug Stores J C Penney Company Department Stores Home Depot Bldg.Matls-Retail Keller Motors Auto Sales - New In-N-Out Burgers Restaurants Kohl's Department Stores Department Stores Keller Motors Auto Sales - New Lawrence Tractor Services Heavy Industry Kohl's Department Stores Department Stores Lowe's Home Centers Bldg.Matls-Retail Lawrence Tractor Services Heavy Industry Marshall's Stores Apparel Stores Lowe's Home Centers Bldg.Matls-Retail Quality Machinery Center Heavy Industry Marshall's Stores Apparel Stores Ross Stores Apparel Stores Mcdonald's Restaurants Restaurants Sears Roebuck & Company Department Stores Ross Stores Apparel Stores Simplot Food Processing Eqp
Sinclair Service Stations Service Stations Target Stores Department Stores Target Stores Department Stores Valero Service Stations Service Stations Ulta Miscellaneous Retail Valley Ford Lincoln Mercury Auto Sales - New Valley Ford Lincoln Mercury Auto Sales - New Viking Ready Mix Co Bldg.Matls-Whsle Wal Mart Stores Department Stores Wal Mart Stores Department Stores Source: MuniServices, LLC / Neumo
2024-25 2015-16

City of Hanford
Assessed Value and Estimated Actual Value of Taxable Property Last Ten (10) Fiscal Years
-139-
Fiscal Year End Residential Property Commercial Property Industrial PropertyOther Property
(1) Unsecured Property Less: Exemptions Assessed Value Total Direct Tax Rate (2) Actual Taxable Value (3) Taxable Assessed Value as a Percentage of 2015-16 - $ - $ - $ - $ - $ - $ - $ 1.13927 - $ - - 2016-17 - - - - - - - 1.12922 - - - 2017-18 2,783,525,089 493,114,270 269,659,726 508,752,105 N/A 363,949,952 3,691,101,238 1.12180 - - - 2018-19 2,935,804,163 618,989,482 180,727,792 544,280,676 N/A 392,514,570 3,887,287,543 1.11679 - - - 2019-20 3,105,274,399 647,007,412 164,095,505 555,146,633 173,827,008 387,715,607 4,257,635,350 1.12726 - - - 2020-21* 3,303,584,068 595,201,875 196,957,330 545,065,531 210,480,516 397,812,626 4,453,476,694 1.12388 6,179,434,682 1.387553 72.07% 2021-22 3,439,245,034 591,513,846 207,542,829 386,937,678 194,560,522 181,073,610 4,638,726,299 1.10065 5,971,265,535 1.287264 77.68% 2022-23 3,736,548,034 600,258,781 214,282,452 575,008,635 229,719,368 441,361,676 4,914,455,594 1.10284 7,111,767,664 1.447112 69.10% 2023-24 4,066,427,682 647,434,977 221,963,517 590,350,261 360,905,703 435,786,167 5,451,295,973 1.08077 6,593,766,045 1.209577 82.67% 2024-25 4,424,366,976 712,508,624 239,422,076 616,898,600 410,593,828 523,118,886 5,880,671,218 1.08252 9,202,130,365 1.564810 63.91% Table is formatted to comply with GASB No. 44 and include estimated actual value.

1.) 2024-25 Value includes state utility in the amount of $17,634,471 *2020-21 is the City's first ACFR Statistical publication, therefore, historical data is limited.

3.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

Source: County Assessor data, MuniServices, LLC / Avenu Insights & Analytics

2.) Total direct tax rate is for TRA 2-000.

City of Hanford
Direct and Overlapping Property Tax Rates
(Rate per $100 of Taxable Property)
Last Ten (10) Fiscal Years
-140-
Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Basic Levy 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Hanford EL 93 GOB 0.037628 0.035433 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Hanford EL 16C BD 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.010798 0.009860 0.007687 0.007486 Hanford EL 16B BD 0.000000 0.000000 0.000000 0.000000 0.0171 0.026207 0.003109 0.008020 0.006794 0.006168 Hanford EL 98 BD 0.022953 0.019416 0.017975 0.018392 0.017350 0.016614 0.016477 0.014979 0.000000 0.000000 Hanford EL 16 BD 0.000000 0.000000 0.021672 0.013150 0.008930 0.009275 0.009021 0.008302 0.009728 0.008905 Hanford HI 10 R 0.009540 0.008344 0.008064 0.008234 0.007731 0.007221 0.006449 0.006862 0.000000 0.000000 Hanford HI 98 B 0.013678 0.012028 0.011343 0.011780 0.011000 0.010566 0.010136 0.009644 0.008166 0.000000 Hanford HI 98 C 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Hanford HI 14 REF GOB 0.002899 0.002581 0.002460 0.002509 0.002211 0.002144 0.002009 0.001863 0.005645 0.003894 Hanford HI 04 A 0.030043 0.029459 0.028500 0.023573 0.023189 0.023042 0.023370 0.022949 0.020446 0.026335 Hanford HI 04 B 0.002224 0.001763 0.001785 0.001801 0.001564 0.001454 0.001366 0.001325 0.001137 0.001006 Hanford HI 16 A 0.000000 0.000000 0.000000 0.007351 0.008184 0.005545 0.002542 0.003053 0.002246 0.003053 Hanford HI 16 B 0.000000 0.000000 0.000000 0.000000 0.000000 0.001810 0.000369 0.000987 0.000755 0.001676 Hanford HI GOB 16-C 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.003164 0.008992 COS/ HFD 06- A&B GOB 0.020300 0.020200 0.009800 0.015600 0.015000 0.020000 0.015000 0.015000 0.015000 0.000000 COS/ HFD 06- C GOB 0.000000 0.000000 0.020200 0.014400 0.015000 0.000000 0.000000 0.000000 0.000000 0.015000 Overlapping Rates 0.139265 0.129224 0.121799 0.116790 0.127255 0.123878 0.100646 0.102844 0.080768 0.082515 Total Tax Rates 1.139265 1.129224 1.121799 1.116790 1.127255 1.123878 1.100646 1.102844 1.080768 1.082515 Source: County Auditor/Controller data, MuniServices, LLC / Neumo TRA 2-000 is represented for this report.

City of Hanford
Principal Property Taxpayers
As of June 30, 2025, and Ten Years Ago
-141-
Taxpayer
Taxable Value
($)
Percent of Total City
Taxable Value (%)
Taxable Value
($)
Percent of Total City
Taxable Value (%)
Faraday & Future Inc. 90,536,790 $ 1.54%
Hanford Mill 45,079,990 0.77%
Tessenderlo Kerley Inc. 43,171,459 0.73% 42,101,290 $ 1.32% Edgewater Isle Apartments LLC 35,453,292 0.60%
Marquez Brothers Hanford Cheese Plant 32,798,800 0.56%
545 Centennial Lp 29,346,581 0.50%
Wal-Mart Real Estate Business Trust 27,595,773 0.47% 24,533,760 0.77% Bels Poultry LLC 26,091,332 0.44% 14,881,987 0.47%
Costco Wholesale Corporation 24,575,897 0.42%
10701 Idaho Owner LLC 23,500,000 0.40%
Hood Packaging Corp 21,952,638 0.37%
Forebay Farms LLC 20,420,759 0.35%
3902 Annadale Lane Lp 20,162,594 0.34%
Marquez Investment Group LLC 18,399,789 0.31% 15,400,801 0.48% Target Corporation 18,397,962 0.31% 13,819,578 0.43%
ARHC AhhfdCA01 LLC 17,674,271 0.30% 12,299,800 0.38%
Family Healthcare Network 16,458,753 0.28%
Keller, Jon & Valerie Rev Trust 15,170,787 0.26% 12,610,316 0.39% Centennial Capital L P 14,733,148 0.25% 13,158,500 0.41% Lowes HIW Inc. 14,637,030 0.25% 17,493,802 0.55%
Berkshire Crossing LLC 14,326,797 0.24%
SNR 27 The Remington Owner LLC 14,127,670 0.24%
River Oaks Holdings LLC 13,492,106 0.23% 11,061,480 0.35% Centennial-Hanford Center II LLC 12,544,635 0.21% 10,646,523 0.33% 361 E Grangeville Blvd LLC 12,467,868 0.21%
Passco Hanford Mall LLC 36,597,143 1.14%
Wasatch Pool Holdings LLC 29,636,528 0.93%
Exopack LLC 11,782,873 0.37%
Cappo Real Estate Holdings LLC 11,406,253 0.36%
HD Development Of Maryland Inc 10,013,852 0.31%
Hanford Retirement Residence Ltd 8,882,393 0.28%
Els Properties Corporation 7,895,000 0.25%
Forever 21 Real Estate Holdings LLC 7,782,207 0.24%
Olam West Coast Inc 7,390,295 0.23%
Kings Residential Limited Partnership 7,270,225 0.23%
Calcot Ltd 6,818,022 0.21%
Realty Income Properties 23 LLC 6,814,686 0.21%
Helena Chemical Company 6,443,046 0.20%
Sears Roebuck And Co Lessee 6,425,541 0.20%
Total Top 25 Taxpayers 623,116,721 10.58% 353,165,901 11.04% Total Taxable Value 5,880,671,218 100.00% 3,200,037,314 100.00% Note: 2015-16 represents Secured data only. Unsecured data: N/A Source: County Assessor data, MuniServices, LLC / Neumo 2024-25 2015-16

City of Hanford
Property Tax Levies and Collections
Last Ten (10) Calendar Years
-142-
Fiscal Year Total Tax Current Percent of Collections
Ended Levy for Tax Current Taxes in Subsequent Percentage June 30 Fiscal Year Collections Collected Years* Amount of Levy 2016 4,582,852 $ 4,569,373 $ 99.7% 61,312 $ 4,630,685 $ 101.0% 2017 4,864,505 4,806,803 98.8% 74,190 4,880,993 100.3%
2018 5,177,210 5,060,767 97.8% 86,163 5,146,930 99.4%
2019 5,463,608 5,329,166 97.5% 72,637 5,401,803 98.9%
2020 5,796,254 5,371,270 92.7% 73,483 5,444,753 93.9%
2021 6,077,811 5,974,756 98.3% 43,620 6,018,376 99.0%
2022 6,316,730 6,307,520 99.9% 114,020 6,421,540 101.7% 2023 6,698,385 6,529,976 97.5% 168,330 6,698,306 100.0% 2024 7,503,825 6,942,300 92.5% 124,281 7,066,581 94.2%
2025 7,990,932 7,846,236 98.2% 127,558 7,973,794 99.8%
Source: Kings County Property Tax Division
* Subsequent collections may include amounts related to prior fiscal periods, as the County does not provide property tax collection detail by levy year.

Collected within the
Fiscal Year of the Levy Total Collections to Date

City of Hanford
Assessed Value of Property by Use Code
Last Eight (8) Fiscal Years
-143-
Category 2017-18 2018-19 2019-20
Residential 2,770,795,326 $ 2,935,804,163 $ 3,105,274,399 $ Commercial 618,989,482 584,514,310 647,007,412
Institution 260,490,264 262,841,798 265,695,795
Industrial 174,965,382 180,727,792 164,095,505
Professional 143,476,958 157,209,582 164,062,839
Agricultural 39,328,210 44,504,943 54,144,413 Vacant 14,992,337 20,844,947 20,914,525 Miscellaneous 13,564,257 14,317,952 17,663,084
Unitary 37,802,543 28,502,543 17,502,543
Unknown 565,393 558,878 28,945 Recreation 6,840,139 6,948,353 7,008,610 Transportation 5,140,280 5,317,392 5,465,167 Manufacturing 2,591,251 2,558,841 2,643,076
Government 16,950 643,037 17,636 Gross Secured Value 4,055,051,190 4,279,802,113 4,471,523,949 Unsecured N/A N/A 173,827,008 Exemptions 363,949,952 392,514,570 387,715,607 Net Taxable Value 3,691,101,238 $ 3,887,287,543 $ 4,257,635,350 $ Source: County Assessor data, MuniServices, LLC / Neumo Use code categories are based on County Assessor's data

City of Hanford
Assessed Value of Property by Use Code (Continued)
Last Eight (8) Fiscal Years
-144-
2020-21 2021-22 2022-23 2023-24 2024-25
$ 3,439,245,034 3,303,584,068 $ 3,736,548,034 $ 4,066,427,682 $ 4,424,366,976 $ 591,513,846 595,201,875 600,258,781 647,434,977 712,508,624 110,839,263 270,104,292 270,904,019 248,596,282 265,216,484 207,542,829 196,957,330 214,282,452 221,963,517 239,422,076 152,716,479 171,077,019 179,659,340 190,079,979 212,770,584 53,375,249 39,038,322 55,327,923 46,591,484 40,874,014
18,955,327 16,904,742 34,327,433 45,546,300 33,383,725
15,429,051 15,088,912 100,956 17,129,784 19,698,955
14,534,471 15,602,543 - 15,834,471 17,634,471
6,819,191 451,243 17,464,896 8,830,158 9,030,228
5,518,186 7,257,204 7,387,479 7,162,119 7,344,808
6,026,595 6,845,317 7,058,248 7,129,783 7,270,121
2,723,866 2,695,937 2,778,341 3,449,901 3,675,210
- - - - -
4,625,239,387 4,640,808,804 5,126,097,902 5,526,176,437 5,993,196,276 194,560,522 210,480,516 229,719,368 360,905,703 410,593,828 181,073,610 397,812,626 441,361,676 435,786,167 523,118,886 $ 4,638,726,299 4,453,476,694 $ 4,914,455,594 $ 5,451,295,973 $ 5,880,671,218 $

City of Hanford
Ratios of Outstanding Debt by Type
Last Ten (10) Fiscal Years
-145-
Pension Pension Finance Total Percentage
Fiscal Obligation Lease SBITA Notes Obligation Revenue Notes Purchase Lease Primary of Personal Per Year Bonds Payable Payable Payable Bonds Bonds Payable Agreements Payable Government Income Capita1 2016 - $ - $ - $ 246,450 $ - $ 25,455,000 $ 6,845,590 $ 11,293,114 $ - $ 43,840,154 $ 0.81% 789 $ 2017 - - - 246,450 - 24,055,000 6,519,159 10,748,627 - 41,569,236 0.74% 739 2018 - - - - - 22,605,000 6,181,303 10,015,715 - 38,802,018 0.67% 681 2019 - - - - - 21,110,000 5,831,622 9,210,709 - 36,152,331 0.61% 626 2020 - - - - - 19,560,000 5,469,703 8,610,970 - 33,640,673 0.55% 580 2021 - - - - - 17,945,000 5,095,115 7,936,377 - 30,976,492 0.49% 527 2022 26,506,940 67,378 - - 4,439,060 16,826,425 4,707,418 7,181,833 - 59,729,054 0.92% 1,023 2023 25,460,230 34,041 353,827 - 4,263,770 15,013,118 4,306,151 6,341,947 - 55,773,084 0.84% 942 2024 23,922,715 638,867 178,371 - 4,006,284 13,134,811 3,890,840 5,411,024 20,742 51,203,654 1.05% 855 2025 22,129,180 1,160,951 929,308 - 4,046,820 11,181,504 3,460,993 4,383,040 15,758 47,307,554 0.92% 773 Details regarding the government's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics for personal income and population Source: City of Hanford Finance Department
Note:

Governmental Activities Business-Type Activities

City of Hanford
Ratios of General Bonded Debt Outstanding
Last Ten (10) Fiscal Years
-146-
Percentage of
Pension Estimated
Fiscal Obligation Revenue Actual Taxable Per
Year Bonds Bonds Total Value of Property1 Capita2
2016 - $ 26,451,303 $ 25,455,000 $ 0.80% 362.73 $
2017 - 24,977,960 24,055,000 0.72% 342.78 2018 - 23,454,653 22,605,000 0.63% 322.11 2019 - 21,886,346 21,110,000 0.56% 300.81
2020 - 20,263,039 19,560,000 0.49% 278.72
2021 - 18,574,732 17,945,000 0.43% 255.71
2022 26,506,940 21,265,485 47,216,000 1.01% 672.81
2023 25,460,230 19,276,888 44,254,000 0.89% 630.61
2024 23,922,715 13,134,811 40,654,000 0.74% 579.31
2025 22,129,180 11,181,504 33,310,684 0.56% 543.95
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 2 Population data can be found in the schedule of Demographic and Economic Statistics page Source: City of Hanford Finance Department 1
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for the property value data.

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City of Hanford
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
-147-
2024-2025 Assessed Valuation 5,927,348,946 $
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/25 Applicable (1) Debt 6/30/25 College of the Sequoias Hanford Campus Improvement District No. 1 12,272,888 $ 67.468% 8,280,272 $ Hanford Joint Union High School District 53,754,955 67.468% 36,267,393 Armona School District 11,838,712 32.950% 3,900,856 Hanford School District 28,960,000 97.871% 28,349,234
Pioneer Union School District 10,913,571 86.086% 9,395,057 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 86,192,812 $ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Kings County General Fund Obligations 5,165,000 $ 37.655% 1,944,881 $ Hanford Joint Union High School District Certificates of Participation 17,225,000 67.468% 11,621,363 Kings River Hardwick Union School District Certificates of Participation 3,780,000 21.843% 825,665 Pioneer Union School District Certificates of Participation 4,545,000 86.086% 3,912,609 City of Hanford Pension Obligations Bonds 22,129,180 100.000% 22,129,180 City of Hanford Lease payable 1,160,951 100.000% 1,160,951 City of Hanford SBITA payable 929,308 100.000% 929,308 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 42,523,957 $ OVERLAPPING TAX INCREMENT DEBT:

TOTAL DIRECT DEBT 24,219,439
TOTAL OVERLAPPING OBLIGATION DEBT 104,497,330
COMBINED TOTAL DEBT 128,716,769 $ (2)
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Debt (excluding tax increment)…….…………………………………. 1.45% Total Direct Debt ($24,219,439) …………….…………………………………………………………………..……. 0.44% Combined Total Debt (excluding tax increment)………………………………………………………………… 2.20% AB: ($600)
Source: California Municipal Statistics and City of Hanford Finance Department (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

City of Hanford
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
-148-
Fiscal Year 2016 2017 2018 2019
Assessed valuation 3,188,163,290 $ 3,353,705,246 $ 3,582,257,800 $ 3,775,010,700 $ Conversion percentage 25% 25% 25% 25%
Adjusted assessed value 797,040,823 $ 838,426,312 $ 895,564,450 $ 943,752,675 $ Debt limit percentage 15% 15% 15% 15%
Debt limit 119,556,123 $ 125,763,947 $ 134,334,668 $ 141,562,901 $ Total net debt applicable to limit:

General obligation bonds - $ - $ - $ - $
Legal debt margin 119,556,123 $ 125,763,947 $ 134,334,668 $ 141,562,901 $ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00%
Note:

Source: Kings County Auditor-Controller Property Tax Division The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership for that parcel).

The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

City of Hanford
Computation of Legal Debt Margin (Continued)
Last Ten (10) Fiscal Years
-149-
2020 2021 2022 2023 2024 2025
$ 4,203,023,242 4,005,538,197 $ 4,676,333,377 $ 4,952,642,565 $ 5,484,273,569 $ 5,913,290,523 $ 25% 25% 25% 25% 25% 25%
$ 1,050,755,811 1,001,384,549 $ 1,169,083,344 $ 1,238,160,641 $ 1,371,068,392 $ 1,478,322,631 $ 15% 15% 15% 15% 15% 15%
$ 157,613,372 150,207,682 $ 175,362,502 $ 185,724,096 $ 205,660,259 $ 221,748,395 $ $ - - $ 26,506,940 $ 25,460,230 $ 23,922,715 $ 22,421,174 $ $ 157,613,372 150,207,682 $ 148,855,562 $ 160,263,866 $ 181,737,544 $ 199,327,221 $

0.00% 0.00% 15.12% 13.71% 11.63% 10.11%

City of Hanford
Pledged Revenue Coverage
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-150-
Fiscal Year 2016 2017 2018 2019
Wastewater:

Revenues 7,061,335 $ 6,596,108 $ 7,159,145 $ 6,712,173 $ Less: Operating Expenses (2,826,302) (3,299,395) (3,616,935) (3,356,489) Net Available Revenue 4,235,033 3,296,713 3,542,210 3,355,684 Water:

Revenues 7,781,934 10,069,044 10,847,684 10,746,302
Less: Operating Expenses (4,619,316) (4,727,413) (4,421,848) (4,419,503) Net Available Revenue 3,162,618 5,341,631 6,425,836 6,326,799 Total Utility Systems Revenues 14,843,269 16,665,152 18,006,829 17,458,475 Less: Total Utility Systems Operating Expenses (7,445,618) (8,026,808) (8,038,783) (7,775,992) Total Utility Systems Net Revenue Available 7,397,651 $ 8,638,344 $ 9,968,046 $ 9,682,483 $ Debt Service Requirements 2,358,656 $ 2,355,806 $ 2,362,131 $ 2,357,406 $ Coverage 3.14 3.67 4.22 4.11
Note: Excludes depreciation and amortization

City of Hanford
Pledged Revenue Coverage (Continued)
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-151-
2020 2021 2022 2023 2024 2025
$ 6,488,656 6,592,213 $ 7,134,563 $ 6,832,219 $ 8,271,634 $ 11,355,002 $ (3,688,293) (3,337,601) (3,501,738) (4,827,492) (7,060,278) (7,917,309) 2,800,363 3,254,612 3,632,825 2,004,727 1,211,356 3,437,693 12,307,644 11,179,262 12,413,643 11,541,239 14,062,877 18,280,875 (4,983,238) (4,949,316) (5,638,433) (8,072,888) (7,446,299) (10,423,220) 7,324,406 6,229,946 6,775,210 3,468,351 6,616,578 7,857,655 18,796,300 17,771,475 19,548,206 18,373,458 22,334,511 29,635,877 (8,671,531) (8,286,917) (9,140,171) (12,900,380) (14,506,577) (18,340,529) $ 10,124,769 9,484,558 $ 10,408,035 $ 5,473,078 $ 7,827,934 $ 11,295,348 $ $ 2,354,756 2,354,131 $ 2,351,881 $ 2,351,635 $ 2,343,188 $ 2,344,363 $

4.03 4.30 4.43 2.33 3.34 4.82

City of Hanford
Demographic and Economic Statistics
Last Ten (10) Fiscal Years
-152-
Per
Capita City County
Fiscal Personal Personal Unemployment Unemployment County School Median Year Population 1Income 2Income 2 Rate 3 Rate 3 Population Enrollment Age 2016 56,192 1,764,934,528 $ 31,409 $ 8.5% 8.8% 149,042 9,662 31.5 2017 57,011 1,796,302,588 31,508 5.9% 8.1% 148,731 9,753 31.4 2018 57,915 1,840,828,275 31,785 5.0% 6.9% 150,807 9,775 31.9 2019 58,742 1,905,590,480 32,440 5.1% 6.8% 152,762 9,934 32.9 2020 58,121 1,911,192,843 32,883 14.5% 15.2% 152,486 9,944 32.9 2021 58,627 2,101,895,204 35,852 8.0% 9.7% 150,750 9,746 33.5 2022 58,312 2,295,218,632 39,361 5.0% 6.2% 151,494 9,688 33.4 2023 58,893 2,703,814,733 45,911 6.3% 8.0% 151,018 9,762 32.8 2024 59,286 3,041,599,458 51,304 6.0% 7.4% 152,327 9,748 32.5 2025 61,238 5,577,348,831 91,077 7.0% 8.6% 154,015 9,701 32.6 Sources: MuniServices, LLC / Neumo (1) State of California Department of Finance.
(2) U.S. Census Bureau, adjusted for inflation.
(3) State of California Employment Development Department. (4) Student Enrollment reflects the total number of students enrolled in the Hanford Elementary and Hanford Joint Union High School District.

City of Hanford
Principal Employers
Current Fiscal Year and Ten Years Ago
-153-
Percentage Percentage
of total City of total City
Business Name Employees Rank Employment Employees Rank Employment Adventist Health Hanford Hospital 1,713 1 6.72% 1,340 1 5.43% Central Valley Meat Co 822 2 3.22% 1,025 2 4.15%
Del Monte Foods Co (a) 750 3 2.94% 1,015 3 4.11%
Hanford Elementary School District 734 4 2.88% 563 4 2.28% Hanford Joint Union High School District 472 5 1.85% 335 5 1.36% Walmart Supercenter 412 6 1.62% 348 6 1.41%
City of Hanford 306 7 1.20% 298 7 1.21%
Costco Wholesale 255 8 1.00%
Marquez Brothers International 230 9 0.90% 225 8 0.91%
College of the Sequoias 183 10 0.72% 869 9 3.52%
Kings County Administration 716 10 2.90%
5,877 23.05% 6,734 27.28%
Total City Labor Force (1) 24,700 25,500 Source: MuniServices, LLC/ Neumo 1 Total City Labor Force provided by EDD Labor Force Data Notes:

Results based on direct correspondence with city’s local businesses. (a) Del Monte Foods Co will shut down operations as of 9/26/2025. *FY2021 is the City's first ACFR Statistical section. FY2016 historical data is unavailable. 2025 2021*

City of Hanford
Full-Time Equivalents City Government Employees by Function Last Ten (10) Fiscal Years
-154-
Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function
Administration
City Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Admin Assist - - - - 1.00 - - - - Community Relations Manager - - - - - - - 1.00 1.00 1.00 Finance 11.00 13.00 13.00 14.00 14.00 16.00 16.00 18.00 18.00 18.00 Human Resources 3.00 3.00 3.00 3.00 4.00 5.00 5.00 5.00 5.00 5.00 Information Technology 1.00 1.00 1.00 1.00 2.00 2.00 2.00 3.00 3.00 3.00 Public safety
Animal Control 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Police Officers 56.00 57.00 57.00 59.00 60.00 65.00 65.00 64.00 64.00 64.00 Police Support 23.00 21.00 21.00 25.00 26.00 25.00 25.00 25.00 25.00 25.00 Fire Admin/Suppression 31.00 31.00 31.00 34.00 34.00 34.00 34.00 32.00 32.00 32.00 Fire Prevention 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 Community Development
Planning 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Community Enhancement 2.00 1.00 1.00 1.00 1.00 2.00 2.00 4.00 4.00 4.00 Building and Safety 4.00 5.00 5.00 5.00 5.00 6.00 6.00 8.00 8.00 8.00 Public Housing 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Community Services
Parks and Recreation 17.00 17.00 17.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 Building Maintenance 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Public Works
Public Works 63.00 67.00 67.00 73.00 73.00 79.00 79.00 82.00 82.00 82.00 Street Maintenance 10.00 11.00 11.00 11.00 11.00 11.00 11.00 10.00 10.00 10.00 Wastewater 18.00 16.00 16.00 16.00 15.00 15.00 15.00 16.00 16.00 17.00 256.00 262.00 262.00 279.00 283.00 298.00 298.00 305.00 305.00 306.00 Source: City of Hanford Human Resources
Source: City of Hanford Human Resources

City of Hanford
Operating Indicators by Function
Last Ten (10) Fiscal Years
-155-
Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function
Police
Calls for service 40,982 39,921 40,924 41,885 45,613 42,938 42,971 44,989 46,975 47,298 Incidents created by Officers 191,180 19,688 17,700 17,498 17,783 17,540 15,366 23,407 15,276 17,099 Physical arrests 3,136 2,652 2,698 3,015 3,073 2,851 3,128 3,201 2,767 2,533 Citations issued by Officers 5,116 4,967 3,886 3,466 4,369 4,669 3,276 4,295 3,371 1,832 Fire Total number of calls for service 5,490 5,695 6,296 6,433 6,460 6,382 6,526 6,109 6,428 6,593 % of calls for medical aid 65.88% 63.39% 56.78% 59.26% 55.11% 61.36% 59.81% 57.59% 56.39% 56.32% Number of fires extinguished 183 166 197 171 232 250 262 247 269 395 Parks
Park shelter rentals at various citywide parks 750 787 742 689 768 105 377 514 404 364 Amount of rentals 259 226 240 277 251 150 159 186 132 468 Number of programs(Children) 6 6 6 6 7 6 6 6 6 4 Number of programs(Adults) 6 6 7 7 7 7 7 7 7 7 Building Permits Residential 1,862 1,836 1,690 1,865 2,156 2,629 3,037 3,045 3,061 2,918 Commercial 199 223 176 161 163 170 165 199 276 284 Public Works Permits Issued 454 509 441 600 777 721 494 494 468 515 Waste Collected Trash (Tons) 25,657 26,060 24,867 27,189 29,144 29,875 29,518 30,266 30,119 29,464 Recyclables (Tons) 3,459 3,763 3,557 3,927 3,764 4,200 5,445 5,445 5,317 5,387 Green Waste (Tons) 822 8,482 6,840 8,022 8,412 8,489 8,679 9,781 10,196 9,622 Miles of Street 219 222 222 225 225 225 231 231 231 231 Street Resurfacing (SF) 1,115,145 3,076,317 3,985,300 4,955,315 3,240,413 2,735,044 1,791,202 633,600 971,492 972,000 Crack Sealant Applied (Lbs) 34,475 32,795 32,235 87,150 92,058 17,640 14,366 19,740 5,600 1,310 Curb and Gutter (LF) N/A 60 157 1,684 248 60 194 80 247 1,899 Sidewalk (SF) 1,222 2,759 3,646 5,537 3,688 2,261 8,224 6,030 4,124 3,963 ADA Ramps 3 10 10 13 12 1 8 8 6 6 Deep Patching (SF) 22,080 7,266 7,416 4,150 2,089 7,663 60,177 84,194 56,091 56,091 Leaf Pick Up (Tons) 658 665 1,304 1,455 641 N/A N/A N/A N/A N/A Signal Calls 415 520 438 464 524 541 496 512 361 460 Signal PM 47 48 47 47 51 51 51 51 73 34 Signs Maintained 180 580 991 996 916 703 804 790 414 409 Sanitary Sewers (Miles) 218 220 220 220 227 227 227 227 231 237 Storm Water Drains Installed (Miles) 64.91 65.00 65.42 66.09 66.58 69.25 71.28 2.03 0.36 1.80 Water Mains Installed (Miles) 218.65 220.52 221.27 223.20 225.00 233.15 239.72 5.30 1.07 3.50 Fire Hydrants Installed 2,084 2,094 2,104 2,127 2,142 2,193 2,248 55 15 31 Water Conservation Notices Issued 2,107 2,272 398 506 376 1,260 910 510 906 567 Citations Issued 580 456 44 30 29 115 148 81 98 41 Average Daily Treatment of Wastewater 4.4 4.3 4.4 4.4 4.4 4.4 4.7 4.9 5.3 5.8 (million gallons) Average Daily Water Consumption 9,740,129 9,254,181 9,955,877 10,404,927 10,688,820 11,171,794 10,296,418 9,972,162 10,307,288 10,328,410 (gallons)

City of Hanford
Capital Asset Statistics by Function
Last Ten (10) Fiscal Years
-156-
Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function General Government: Number of general government buildings 3 3 3 3 3 3 3 3 3 3 Public Safety:

Number of police stations 1 1 1 1 1 1 1 1 1 1 Number of fire stations 2 2 2 2 3 3 3 3 3 3 Public Works: Number of public works buildings 12 12 12 13 13 13 13 13 13 16 Miles of streets 219 222 222 225 225 225 231 231 231 231 Miles of sanitary sewers 218 220 220 220 227 227 227 227 231 237 Miles of storm water drains 58 58 59 59 60 62 64 65 67 69 Recreation and Parks: Number of parks and recreation facilities* 26 26 26 26 27 27 27 28 29 29 Acres of parks* 84 84 84 84 87 87 87 90 96 116 WaterMiles of water mains 206 208 208 210 212 218 223 224 229 233 Number of fire hydrants** 2,583 2,614 * Does not include leased properties
** Data for fiscal years 2013-2021 were updated to reflect more recent information. Did not start tracking until 2024 Sources: City of Hanford Finance Department

City of Hanford
Measure H:

City of Hanford Sales and Use Tax Accountability Measures Independent Accountant’s Report
For the year ended June 30, 2025

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
- 1 -
Independent Accountant’s Report
To the City Council
City of Hanford, California
We have performed the procedures enumerated below on the revenues and expenditures associated with the City of Hanford’s Measure H Sales and Use Tax for the fiscal year ended June 30, 2025. Management of the City of Hanford is responsible for the administration of the Measure H Sales and Use Tax.

Management of the City of Hanford has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the Sales Tax Oversight Board, as established by Ordinance 2024-10 City of Hanford Sales and Use Tax Accountability Measures.

This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. Obtain and evaluate revenue reports from the City’s general ledger for the Measure H Fund for July 1 to the following June 30 of fiscal year 2025. Evaluate the supporting journal entries to ensure that the City properly recorded the receipts of the voter approved sales and use tax.

Results: Revenues appear properly recorded.

2. Obtain and evaluate expenditure reports from the City's general ledger for the Measure H fund for July 1 to the following June 30 of fiscal year 2025. Select a sample of expenditure transactions for review and determine whether the expenditures were reasonable as they relate to the applicable uses of Measure H funds and are consistent with the adopted budget.

Results: Expenditures appear reasonable in relation to the applicable uses of Measure H funds. The Measure H Fund adopted budget was established and implemented in fiscal year 2026, although some expenditures related to Measure H programs were budgeted in the General Fund in fiscal year 2025.

- 2 -
We were engaged by management of the City of Hanford to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the revenues and expenditures associated with the City of Hanford’s Measure H Sales and Use Tax for the year ended June 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of management of the City of Hanford and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council, management of the City of Hanford and the Sales Tax Oversight Board and is not intended to be and should not be used by anyone other than these specified parties. However, this limitation is not meant to limit the distribution of this report which is a matter of public record.

Very truly yours,
San Bernardino, California
December 17, 2025

See accompanying Independent Accountant’s Report
- 3 -
City of Hanford
Measure H Fund
Schedule of Revenues and Expenditures
For the year ended June 30, 2025

REVENUES
Taxes and special assessments 3,388,557 $
Revenue from use of money and property 9,184
Total revenues 3,397,741

EXPENDITURES
Current:

General government 86
Total expenditures 86
Excess (deficiency) of revenues
over (under) expenditures 3,397,655

OTHER FINANCING SOURCES (USES)
Transfers out to General Fund (143,750)
Total other financing sources (uses) (143,750)
Net change in fund balance 3,253,905

FUND BALANCE
Beginning of year -
End of year 3,253,905 $

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-
December 17, 2025
To the Honorable City Council
City of Hanford, California
We have audited the financial statements of the City of Hanford (the City) as of and for the year ended June 30, 2025, and have issued our report thereon dated December 17, 2025. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated March 19, 2025, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the City. We have identified a threat to our independence (preparation of the City’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the City’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.

-2-
Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which a City can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City adopted GASB Statement No. 101, Compensated Absence, and GASB Statement No. 102, Certain Risk Disclosures during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the City’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

-3-
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. Attachment A reflects all material misstatements that we identified as a result of our audit procedures that were brought to the attention of, and corrected by, management.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 17, 2025.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

-4-
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards, we have:

Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,

-5-
Attachment A
0340-0340-360000 FUND BALANCE AVAILABLE 311,549.89
0340-0340-945000 TRANSFERS OUT 311,549.89
Total 311,549.89 311,549.89
0001-0001-315000 INTEREST PAYABLE 77,501.00
0001-0001-796000 INTEREST EXPENSE 77,501.00
Total 77,501.00 77,501.00
Adjusting Journal Entries
PPA for POB reallocation from general fund
Adjusting Journal Entries JE # 101
Adjusting Journal Entries JE # 102
To reverse accrued interest in the General Fund

FINANCE DEPARTMENT | 315 N. DOUTY ST. HANFORD, CA 93230 559.585.2500 | WWW.HANFORD.CITY
December 17, 2025
Rogers, Anderson, Malody & Scott, LLP
This representation letter is provided in connection with your audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hanford (the entity) which compromise the statement of financial position as of June 30, 2025, and the respective change in financial position and, where applicable, cash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements of the various opinion units are presented fairly, in all material respects, in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information such that, in the light of surrounding circumstances, 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.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 17, 2025:

Financial Statements
 We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated March 19, 2025, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.  The financial statements refer to above have been fairly presented in accordance with U.S. GAAP and include all properly classified funds, required supplementary information, and noted to the basic financial statements.
 We acknowledge our responsibility for the design, implementation, and maintenance of the system of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.  We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
 The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP.
 All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.  All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed.  We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
 The effects of uncorrected misstatements summarized in the attached schedule and aggregated by you during the current engagement are immaterial, both individually and in the aggregate, to the applicable opinion units and to the financial statements as a whole.  The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.

Rogers, Anderson, Malody & Scott, LLP
All component units, as well as joint ventures with an equity interest, if any, are included and other joint ventures and related organizations are properly disclosed.

All funds and activities are properly classified.

All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.

All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved.

Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.

All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.

All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis.

All interfund and intra-entity transactions and balances have been properly classified and reported.

Special items and extraordinary items have been properly classified and reported.

Deposit and investment risks have been properly and fully disclosed.

Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.

Nonexchange and exchange financial guarantees, either written or oral, under which it is more likely than not that a liability exists have been properly recorded, or if we are obligated in any manner, are disclosed
We have reviewed, approved, and taken responsibility for the financial statements and related notes.

We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements and the effects of material adjustments are summarized in the attached schedule.

We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements.

With regard to investments and other instruments reported at fair value:

The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action.

The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied.

The disclosures related to fair values are complete, adequate, and in accordance with U.S.

GAAP.

There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.

With regard to pensions and OPEB:

We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances.

Rogers, Anderson, Malody & Scott, LLP
Increases in benefits, elimination of benefits and all similar amendments have been disclosed in accordance with U.S. GAAP and are included in the most recent actuarial valuation, or disclosed as a subsequent event.

We have conducted a comprehensive risk assessment and disclosed all material concentrations and constraints in accordance with GASB Statement No. 102, Certain Risk Disclosures. These disclosures provide 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 associated with the concentration or constraint, if applicable.

We have evaluated the concentrations and constraints, including those that occur subsequent to the statement of net position date but before the financial statements are issued and have been properly disclosed in the financial statements as subsequent events.

With respect to preparation of the financial statements, we have performed the following:

Made all management decisions and performed all management functions; Assigned a competent individual to oversee the services; Evaluated the adequacy of the services performed;
Evaluated and accepted responsibility for the result of the service performed; and Established and maintained internal controls, a process to monitor the system of internal controls.

There have been no changes or updates to legal information disclosed to you by our attorney(s) since the date of such legal response and now.

Information Provided
We have provided you with:

Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; Additional information that you have requested from us for the purpose of the audit; and Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.

A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report; The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements.

All information provided in electronic form are true representations of the original documents.

All transactions have been recorded in the accounting records and are reflected in the financial statements.

We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.

We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, concentrations and constraints, and we believe that our use of the going concern basis of accounting is appropriate.

We have no knowledge of any fraud or suspected fraud that affects the entity and involves:

Management;
Employees who have significant roles in internal control; or Others where the fraud could have a material effect on the financial statements.

We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any other

Rogers, Anderson, Malody & Scott, LLP
instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors (contractors), analysts, regulators, or others.

We have no knowledge of any instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives.

We have no knowledge of any instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives.

We have a process to track the status of audit findings and recommendations.

We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.

We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements.

We have disclosed to you the identity of all the entity’s related parties and the nature of all the related party relationships and transactions of which we are aware.

There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices.

The entity has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range.

We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.

We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.

We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee.

There are no:

Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.

Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.

Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62

Rogers, Anderson, Malody & Scott, LLP
Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).

The entity has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.

We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.

Use of a Specialist
We agree with the findings of specialists in evaluating the entity’s net pension and net other postemployment benefit liabilities and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.

Cybersecurity
There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.

Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:

We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America.

We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America.

The methods of measurement or presentation have not changed from those used in the prior period.

We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.

We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.

We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.

Rogers, Anderson, Malody & Scott, LLP
Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:

We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.

We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP.

The methods of measurement or presentation have not changed from those used in the prior period.

We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

Accounting Estimates and Related Disclosures
The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.

We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.

The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.

The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.

We have obtained and applied appropriate specialized skills and expertise in making accounting estimates, if needed.

We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.

Destiny Borba, Acting Finance Director

Attachment A
0340-0340-360000 FUND BALANCE AVAILABLE 311,549.89
0340-0340-945000 TRANSFERS OUT 311,549.89
Total 311,549.89 311,549.89
0001-0001-315000 INTEREST PAYABLE 77,501.00
0001-0001-796000 INTEREST EXPENSE 77,501.00
Total 77,501.00 77,501.00
PPA for POB reallocation from general fund
Adjusting Journal Entries JE # 101
Adjusting Journal Entries JE # 102
To reverse accrued interest in the General Fund

Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Hanford, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hanford (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 17, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses or significant deficiencies may exist that were not identified.

-2-
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
December 17, 2025

11.B.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Approval of the Minutes of the October 21, 2025 Meeting RECOMMENDATION:

Recommended: Approve the minutes of the October 21, 2025 meeting.

BACKGROUND:

FISCAL IMPACT:

ATTACHMENTS:

1. October 21, 2025 Meeting Minutes

11.C.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Approval of the Minutes of the November 4, 2025 Meeting RECOMMENDATION:

Recommendation: Approve the minutes of the November 4, 2025 meeting.

BACKGROUND:

FISCAL IMPACT:

ATTACHMENTS:

1. November 4, 2025 Meeting Minutes

11.D.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Approval of the Minutes of the November 18, 2025 Meeting RECOMMENDATION:

Recommendation: Approve the minutes of the November 18, 2025 meeting.

BACKGROUND:

FISCAL IMPACT:

ATTACHMENTS:

1. November 18, 2025 Meeting Minutes

11.E.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Approval of the Minutes of the December 2, 2025 Meeting RECOMMENDATION:

Recommendation: Motion to approve the minutes of the December 2, 2025 meeting.

BACKGROUND:

FISCAL IMPACT:

ATTACHMENTS:

1. December 2, 2025 Meeting Minutes

11.F.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Waiver of second reading and adoption of Ordinance 2025-07, approving Zone Text Amendment No. 2025-10, a request to amend Title 17, Section 17.56.230, Wall mural placement and design criteria: in order to comply with free speech requirements.

RECOMMENDATION:

Recommendation: Waive second reading of Ordinance No. 2025-07 and adopt Zone Text Amendment 2025-10.

Recommended Motion: I move to waive the second reading of and adopt Ordinance No. 2025-24, approving Zone Text Amendment 2025-10.

BACKGROUND:

Following approval and adoption of Ordinance No. 25-07 on December 2, 2025, staff determined that the ordinance was not properly noticed in accordance with applicable noticing requirements.

To correct this procedural issue, staff is requesting that the City Council waive the second reading of and adopt Ordinance No. 2025-07, approving Zone Text Amendment 2025-10, so that the ordinance may be properly noticed and brought into full compliance with legal requirements.

In 2024, the Hanford City Council directed staff to review the current mural ordinance and evaluate whether changes were necessary to comply with free speech requirements and to create a new application process. Staff review of the ordinance at that time revealed that several design guidelines in HMC 17.56 related to murals are not enforceable, due to content-based restrictions. Except for obscene content and commercial advertisements, the City is not able to deny a mural permit based on the content of the mural.

Zoning Text Amendment 2024-01 removed the content-based requirements from the City's mural ordinance and replaced it with criteria that outline the application process but, due to a procedural issue, it is necessary to readopt the ordinance language.

Since content-based restrictions are unenforceable, the mural policy has been revised to eliminate discretionary approval and allow for staff-level approval. Staff will review each application to ensure that the necessary information has been provided, as well as ensure that the application does not propose a mural which is obscene in nature, or proposes commercial speech/depictions.

The Hanford Planning Commission has recommended adoption of the updated ordinance but has requested that the City expand the zones so that murals may be placed in all zones within the City

instead of limiting their locations to the MX-D zone.

In taking action on a Zone Text Amendment, the City Council must make the appropriate findings, in accordance with Section 17.86.030 of the Hanford Municipal Code:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy E8, the City of Hanford shall support local arts and cultural activities that can contribute to the local economy, enrich residents’ lives, and strengthen a sense of community. The revision of Section 17.56.230 of the Hanford Municipal Code is consistent with the policies of the General Plan, as it continues the support of local arts activities that may enrich residents’ lives and strengthen a sense of community.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community;
ANALYSIS: That the revision of Section 17.56.230 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford.

The zone text amendment pertains to mural regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;
ANALYSIS: That the zone text amendment applies to wall murals and will not propose a change in land uses.

The proposed mural policy and mural ordinance are attached. Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines, the project is exempt from environmental review.

FISCAL IMPACT:

None
ATTACHMENTS:

1. Notice of Exemption

2. Ordinance 25-07

3. Proposed Mural Ordinance

Notice of Exemption 2025-XX
To: Office of Planning and Research
P.O. Box 3044, Room 212
Sacramento, CA 95812-3044
County Clerk
County of Kings
Kings County Government Center
Hanford, CA 93230
From: City of Hanford
317 North Douty Street
Hanford, CA 93230
Project Title: Zone Text Amendment No. 2024-01
Project Location – City of Hanford
Project Location – City: Hanford Project Location – County: Kings County Description of Nature, Purpose and Beneficiaries of Project: Zone Text Amendment No. 2024-01: a request to amend Title 17, Section 17.56.230 of the Hanford Municipal Code in order to remove content-based restrictions on murals and establish a policy for reviewing and approving murals in the City of Hanford Name of Public Agency Approving Project: City of Hanford, Planning Division Name of Person or Agency Carrying Out Project: City of Hanford Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1); 152698);
Declared Emergency (Sec. 21080(b)(3); 15269 (a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption: State type and section number:

Statutory Exemption. State code number: 15061(b)(3) General Rule Reasons why project is exempt:

The proposed ordinance is exempt under Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed project is a text amendment that is not associated with a physical development; therefore, there are no physical impacts that will result from the project.

Lead Agency
Contact Person: Jason Waters Area Code/ Telephone: (559) 585-2590 Signature: Date: September 9, 2025 Title: Deputy City Manager

Signed by Lead Agency Date received for filing at OPR:

Signed by Applicant

ORDINANCE NO. 25-07
AN ORDINANCE APPROVING ZONE TEXT AMENDMENT NO. 2025-10, A REQUEST BY THE CITY OF HANFORD TO APPROVE ZONE TEXT AMENDMENT NO. 2025-10 AND AMEND TITLE 17, SECTION TITLE 17, SECTION 17.56.230 WALL MURAL PLACEMENT AND DESIGN CRITERIA.

The City Council of the City of Hanford does ordain as follows:

SECTION 1: The Hanford Municipal Code Title 17, the Zoning Ordinance contains regulations to ensure the public health, safety, peace, comfort, convenience, prosperity and general welfare of the citizens of Hanford, including zoning categories, allowed uses and development standards.

SECTION 2: The City Council has held a public hearing on the amendment to Title 17, to amend Title 17, Section 17.56.230 – Wall mural placement and design criteria of the Hanford Municipal Code by adding sections in order to remove the content-based requirements from the City's mural ordinance and replace it with criteria that outlines the application process, allows the City to adopt a mural policy, and prohibits murals that are obscene or classified as commercial advertisements. The proposed ordinance changes are attached as Exhibit A.

SECTION 3: The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the following section of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3. a) The ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 4: The proposed amendment was evaluated for consistency with the General Plan and the Zoning Ordinance in accordance with Sections 17.86.030 and based on the following findings:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy E8, the City of Hanford shall support local arts and cultural activities that can contribute to the local economy, enrich residents’ lives, and strengthen a sense of community. The revision of Section 17.56.230 of the Hanford Municipal Code is consistent with the policies of the General Plan, as it continues the support of local arts activities that may enrich residents’ lives and strengthen a sense of community.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community; ANALYSIS: That the revision of Section 17.56.230 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford.

The zone text amendment pertains to mural regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;

ANALYSIS: That the zone text amendment applies to wall murals and will not propose a change in land uses.

SECTION 5: The City Council of the City of Hanford does ordain that Title 17 is hereby amended, as shown in Exhibit A.

SECTION 6: That the ordinance shall take effect thirty (30) days after its passage, and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.

Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on November 2, 2025, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED
____________________________
Travis Paden
MAYOR of the City of Hanford
ATTEST:
________________________
Natalie Corral

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )

I, NATALIE CORRAL, City Clerk of the City of Hanford, do hereby certify the foregoing ordinance was duly introduced at a regular meeting of the City Council of the City of Hanford on the 7th day of October, 2025, and it was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ____ day of ____, 2025.

NATALIE CORRAL

CITY CLERK

17.56.230 Wall mural placement and design criteria.

The Community Development Director is authorized to implement and administer a city mural policy and application process for private structures, as adopted by the city council by resolution, which establishes requirements for murals on private structures.

A. Allowed Murals. An application which meets all of the following criteria, and which is not otherwise prohibited by this Chapter, will be allowed:

1. Submission of a complete mural application;

2. Compliance with all the requirements of the adopted mural policy and all requirements of this Code;

3. Located within the City’s MX-D zone;

4. Payment of any fees required for a mural permit.

B. Prohibited Murals. The following murals are prohibited:

1. Murals containing statements, words, symbols, or characters of an obscene nature.

2. Murals that contain commercial advertisements or contain words and/or images which specifically identify or reflect the business, products and/or services provided by any business service or economic activity.

C. This ordinance shall not apply to spaces not visible from the street or other public or private property;

11.G.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Waiver of second reading and adoption of Ordinance 2025-08, approving Zone Text Amendment No. 2025-12, a request to amend Title 17, Section 17.56.200, Property maintenance and add Chapter

9.12 – Graffiti: in order to establish regulations for abatement of graffiti on public and private property.

RECOMMENDATION:

Recommendation: That the City Council, by motion, waive the second reading and adopt Ordinance No. 2025-08, approving Zone Text Amendment 2025-12.

BACKGROUND:

Following approval and adoption of Ordinance No. 25-08 on December 2, 2025, staff determined that the ordinance was not properly noticed in accordance with applicable noticing requirements.

To correct this procedural issue, staff is requesting that the City Council waive the second reading of and adopt Ordinance No. 2025-08, approving Zone Text Amendment 2025-12, so that the ordinance may be properly noticed and brought into full compliance with legal requirements.

The proposed ordinance incorporates provisions from State Law concerning the sale and possession of graffiti implements. The notice and removal process requires the City to issue two notices before the City enforces the ordinance against a landowner. The first notice directs the property owner to remove graffiti within 10 business days. If the graffiti is not removed within that period, a second and final notice is issued, providing an additional 20 business days before the City may abate the graffiti.

The ordinance also authorizes the City Manager, or designee, to enter into an agreement with a property owner or lessee to remove graffiti using City crews or contractors, subject to reimbursement or waiver conditions. If the City initiates abatement, the associated costs may be recovered through a lien or special assessment against the property.

The Hanford Planning Commission recommended approval of the Ordinance with a proposed changed to require graffiti to be removed from public property within the same timeframe as removal requirements for private property (30 business days) and that has been incorporated into the Ordinance.

In taking action on a Zone Text Amendment, the City Council must make the appropriate findings, in accordance with the Hanford Municipal Code:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy L121, Encourage the maintenance of private

property within the city’s neighborhoods, and actively enforce the City’s codes related to blight. The revision of the Hanford Municipal Code is consistent with the policies of the General Plan, as it encourages the maintenance of private property.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community;
ANALYSIS: That the revision of Section 17.56.200 and the addition of CHAPTER 9.12 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community as it encourages the maintenance of private property within the City's neighborhoods.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford.

The zone text amendment pertains to graffiti regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;
ANALYSIS: That the zone text amendment applies to graffiti and will not propose a change in land uses.

FISCAL IMPACT:

None with this action. Graffiti abatement performed by the city could be recovered.

ATTACHMENTS:

1. Notice of Exemption 2025

2. Ordinance 25-08

3. Graffiti Ordinance

Notice of Exemption 2025-XX
To: Office of Planning and Research
P.O. Box 3044, Room 212
Sacramento, CA 95812-3044
County Clerk
County of Kings
Kings County Government Center
Hanford, CA 93230
From: City of Hanford
317 North Douty Street
Hanford, CA 93230
Project Title: Zone Text Amendment No. 2025-12
Project Location – City of Hanford
Project Location – City: Hanford Project Location – County: Kings County Description of Nature, Purpose and Beneficiaries of Project: Zone Text Amendment No. 2025-12: 17.50.200 and 19.12:
in order to establish graffiti abatement procedures on public and private property.

Name of Public Agency Approving Project: City of Hanford, Planning Division Name of Person or Agency Carrying Out Project: City of Hanford Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1); 152698);
Declared Emergency (Sec. 21080(b)(3); 15269 (a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption: State type and section number:

Statutory Exemption. State code number: 15061(b)(3) General Rule Reasons why project is exempt:

The proposed ordinance is exempt under Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed project is a text amendment that is not associated with a physical development; therefore, there are no physical impacts that will result from the project.

Lead Agency
Contact Person: Jason Waters Area Code/ Telephone: (559) 585-2590 Signature: Date: September 9, 2025 Title: Deputy City Manager

Signed by Lead Agency Date received for filing at OPR:

Signed by Applicant

ORDINANCE NO. 25-08
AN ORDINANCE APPROVING ZONE TEXT AMENDMENT NO. 2025-12, A REQUEST BY THE CITY OF HANFORD TO APPROVE ZONE TEXT AMENDMENT NO. 2025-12 AND AMEND TITLE 17, SECTION TITLE 17, 17.56.200 PROPERTY MAINTENANCE AND CHAPTER 9.12 GRAFFITI
The City Council of the City of Hanford does ordain as follows:

SECTION 1: The Hanford Municipal Code Title 17 the Zoning Ordinance and Code Title 9 contain regulations to ensure the public health, safety, peace, comfort, convenience, prosperity and general welfare of the citizens of Hanford, including zoning categories, allowed uses and development standards.

SECTION 2: The City Council has held a public hearing on the amendment to Title 17, to amend Title 17,

17.56.200 Property maintenance and add Chapter 9.12 – Graffiti in order to establish regulations for abatement of graffiti on public and private property. The proposed ordinance changes are attached as Exhibit A.

SECTION 3: The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the following section of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3. a) The ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 4: The proposed amendment was evaluated for consistency with the General Plan and the Zoning Ordinance in accordance with Sections 17.86.030 and based on the following findings:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy L121, Encourage the maintenance of private property within the city’s neighborhoods, and actively enforce the City’s codes related to blight. The revision of the Hanford Municipal Code is consistent with the policies of the General Plan, as it encourages the maintenance of private property.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community; ANALYSIS: That the revision of Section 17.56.200 and the addition of CHAPTER 9.12 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford.

The zone text amendment pertains to graffiti regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;
ANALYSIS: That the zone text amendment applies to graffiti and will not propose a change in land uses.

SECTION 5: The City Council of the City of Hanford does ordain that Title 17 is hereby amended, as shown in Exhibit A.

SECTION 6: That the ordinance shall take effect thirty (30) days after its passage, and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.

Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on October 7, 2025, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED
____________________________
Travis Paden
MAYOR of the City of Hanford
ATTEST:
________________________
Natalie Corral

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )

I, NATALIE CORRAL, City Clerk of the City of Hanford, do hereby certify the foregoing ordinance was duly introduced at a regular meeting of the City Council of the City of Hanford on the 7th day of October, 2025, and it was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ____ day of ____, 2025.

NATALIE CORRAL

CITY CLERK

17.50.200 Property maintenance.

L. Failure to address graffiti for longer than 48 hours from the time that graffiti is placed on a surface;
Chapter 9.12 – Graffiti

9.12.010 Purpose
A. The purpose of this chapter isto provide for the prompt abatement of graffiti from public and private properties in the city; to provide for methods of controlling the sale to and the unauthorized use of aerosol paint containers and wide tipped marker pens by minors; and to encourage citizens to report occurrences of graffiti vandalism within the city.

B. Due to the increase of graffiti vandalism on both public and private property, a condition has arisen within the city which has resulted in a deterioration of property values and concern for the quality of life of the city’s citizens. The city council finds and determines that graffiti constitutes a public nuisance which, left unabated, adversely affects the city’s image, business development, retail sales, and residential housing costs. Allowing graffiti to remain on public or private property encourages additional occurrences of graffiti, fuels fear among the community, and depreciates the value of the affected property and surrounding properties.

C. The purpose of this chapter is, therefore, to minimize the impact graffiti has on the city’s quality of life, economic stability, environmental image, and sense of safety and security.

Because the existence of graffiti tends to breed community discontent and criminal or gang-related activities, this chapter will mitigate these problems through timely removal and control of graffiti vandalism.

9.12.020 Definitions.
“Abatement and related administrative costs” includes, but is not limited to, court costs, attorney’s fees, cost of removal of the graffiti or other inscribed material and costs of repair and replacement of defaced property, and the enforcement costs incurred by the City. “Graffiti” is defined as, but not limited to, an unauthorized inscription, word, figure, design, writing, or picture marked, etched, scratched, drawn, or painted upon any public or private property or any structure, wall, fence, sidewalk, sign, public utility box, or any structural component of any building, bridge, structure, or facility in public view within the city.

9.12.030 Sale of aerosol paint containers or wide tipped marker pens to minors

It is unlawful for any person to sell, offer to sell, or cause to be sold any aerosol or pressurized container of paint and/or any wide tipped marker pens exceeding four millimeters in width, containing anything other than a water-soluble solution, to any person under the age of eighteen (18) years who is not accompanied by a responsible adult.

9.12.040 Possession by minors
It is unlawful for any person under eighteen (18) years of age, in a public place or on private property without consent of the owner or operator and not accompanied by a responsible adult, to possess (1) an aerosol or pressurized container of paint, and/or (2) wide tipped marker pens with tips exceeding four millimeters in width that contain other than a watersoluble solution.

9.12.050 Control
Any retail commercial establishment selling aerosol containers or wide tipped marker pens exceeding four millimeters in width containing non-water-soluble substances shall store such items in an area viewable by but not directly accessible to the public without employee assistance.

9.12.060 Signs required
Retailers engaged in the sale of such aerosol containers or wide tipped marker pens shall display at the point of sale a clearly visible and legible sign stating:
“It is unlawful for any person to sell, lend, or give to any individual under the age of eighteen (18) years, who is not accompanied by a responsible adult, an aerosol or pressurized container of paint or wide tipped marker pens exceeding four (4) millimeters in width, containing anything other than a water-soluble solution.”

9.12.070 Removal
A. General. It is unlawful for any person to apply graffiti to any public or private property located within the city. Any person applying graffiti within the city shall remove it within twenty-four (24) hours after notice by the city or property owner.

Failure to do so constitutes an additional violation of this chapter. Consistent with Cal.

Civil Code § 1714.1 where graffiti is applied by minors, the parent or guardian shall be responsible forsuch removal or payment of costs thereof.

B. Public Property. Graffiti on city property shall be removed within 30 business days.

Graffiti on property of another public entity may only be removed by the city with written consent and waiver from that entity.

C. Private Property – Notice and Removal.

1. Where graffiti is located on private property visible from a public right-of-way, it is the property owner’s duty to remove it. If not promptly removed, the city shall serve written notice of the location and description of graffiti and the owner’s obligation to remove it.

2. First Notice: Property owner shall commence removal within 10 business days of service by mail or personal delivery.

3. Second Notice: If graffiti remains after the first period, a 20-business-day final notice shall be issued, requiring complete removal within that period.

4. Notices shall be served by one of the following methods:
a. Personal service;
b. First class mail, postage prepaid, to each person identified at the address as it appears on the last equalized assessment roll of the county, or as otherwise known to the Code Enforcement Officer. The address of the property owner shown on the assessment roll shall be conclusively deemed to be the property address for the purpose of service of the administrative citation. Service by mail in the manner described above shall be effective on the date of mailing.

The failure of the person with an interest in the property to receive any notice in accordance with this section shall not affect the validity of any proceedings taken under this chapter. If the owner of record, after diligent search cannot be found, the notice may be served by posting a copy thereof in a conspicuous place upon the property for a period of ten (10) calendar days.

5. Proof of service of a notice served pursuant to this chapter shall be documented at the time of service by a declaration under penalty of perjury executed by the person effecting service, declaring the date and manner in which service was made.

6. If the owner failsto act after both notices, the city may abate graffiti and recover abatement and related administrative costs.

7. Alternative Abatement Agreement. The City Manager or designee may enterinto an agreement with the property owner to abate graffiti using city crews or contractors, subject to reimbursement or waiver conditions.

8. City’s Release From Liability. Any abatement by the City at an owner’s consent requires a release of liability signed by the property owner.

9. Failure to Remove. If the owner failsto remove graffiti after both notices or failsto request abatement assistance, the City may abate the graffiti and assess abatement and administrative costs as a lien or special assessment against the affected property. Abatement and administrative costs not paid by a landowner

within thirty (30) calendar days of receipt of a request for payment from City shall be deemed delinquent and will be subject to a ten percent (10%) late fee and interest on delinquent abatement and administrative costs will incur interest at the rate of ten percent (10%) per annum.

10. The Code Enforcement Officer shall keep an itemized account of the expenses and costs incurred by the City in the work and abatement of any graffiti on private property. Upon completion of the work and abatement, the Code Enforcement Officer shall prepare a report specifying the work and abatement performed, the itemized costs of the work on the property, including direct and indirect costs, a description of the property, and the names and addresses of the persons entitled to service pursuant to this Chapter 9.12. Each person named in the notice shall be jointly and severally liable for such work and abatement costs and administrative expenses, and the amount of such costs and expenses shall be a debt owed to the city. Such report shall be served upon the responsible persons identified therein, together with a demand that the amount identified therein be paid within thirty (30) calendar days of receipt of the report.

9.12.080 Notice of Lien and Collection of Confirmed Assessment A. If an owner failsto pay the city’s costs of graffiti abatement within ten (10) calendar days of the owner’sreceipt of the city’s written request for payment or within ten (10) calendar days after the date of the decision of the hearing officershould the hearing officer affirm the costs of abatement, the city’s Code Enforcement Officer may execute and file in the office of the county recorder a notice of lien ofsubstantially the following form:

NOTICE OF LIEN
Pursuant to the authority vested in the Code Enforcement Officer by the City of Hanford Municipal Code,said Code Enforcement Officer, by the provisions of the City of Hanford Municipal Code, and on or about __________,said Code Enforcement Officer did assess an amount comprised of administrative expenses and abatement costs upon that certain real property commonly known as __________ Hanford, California, and more particularly described in Exhibit "A", which is attached hereto and made a part hereof ("Real Property"), and the assessed amount has not been paid. The City of Hanford hereby claims a lien on the Real Property forsaid administrative expenses and abatement costsin the amount of $ __________.

This amountshall be a lien upon the Real Property until the sum has been paid in full and discharged of record.

Dated: This _____ day of __________, 20__.

CODE ENFORCEMENT OFFICER OF THE CITY OF HANFORD (ACKNOWLEDGMENT) B. Immediately upon the recording of the notice of lien, the assessmentshall constitute a lien on the real property assessed. Such lien shall, for all purposes, be upon a parity with the lien ofstate and local taxes.

C. The notice of lien, after recording,shall be delivered to the tax assessor of Kings County, who shall enter the amount on the county assessment book opposite the description of the real

property, and the amountshall be collected together with all other taxeslevied thereon against the real property.

D. Thereafter, the amountset forth in the notice of lien shall be collected at the same time and in the same manner as ordinary county real property taxes are collected and shall be subject to the same penalties and interest and to the same procedure under foreclosure and sale in case of delinquency as provided for ordinary county taxes. All laws applicable to the levy, collection and enforcement of county taxes are made applicable to such assessment. The amountset forth in the notice of lien shall be returned to the City to the fund designated for code enforcement activities.

9.12.090 Appeals
A. Any person receiving a notice pursuant to this Chapter 9.12 may appeal to the City Manager. A notice of appeal must be submitted on an appeal form provided by the City’s Community Development Director, must specify the basis for the appeal in detail, and must be filed with the Community Development Director within ten (10) calendar days after the date of service of the notice that the party wishes to appeal. If the deadline falls on a weekend or city holiday, then the deadline shall be extended until the next regular business day. Except as otherwise provided herein, no appeal hearing shall be held unless the appealing party pays the required appeal fee established by resolution of the City Council. Notwithstanding such requirement, the payment of an appeal fee shall be waived if the City Manager determines that the appealing party is financially unable to pay such amount. A waiver request must be submitted to the Community Development Director with the person's request for appeal, along with a sworn declaration and other supporting documents and materials showing the person's actual financial inability to pay the appeal fee. The appealing party bears the burden of demonstrating financial hardship to the satisfaction of the City Manager. If the City Manager determines that a waiver is warranted, the appeal fee will be waived or partially waived. If the City Manager finds that a waiver is not warranted, the appealing party must, within three (3) business days of the party's receipt of the City Manager's written decision, pay the appeal fee to the City for the person's appeal to be processed.

B. When an appeal is filed, unless the Code Enforcement Officer determines that the violation identified in the notice constitutes an immediate threat to the health or safety of any person, the enforcement of the violations identified in the notice of violation shall be stayed until the date that the appeal hearing is held.

C. As soon as practicable after receiving the written notice of appeal, the City Manager shall fix a date, time, and place for the hearing. Written notice of the date, time, and place for the hearing shall be served at least ten (10) calendar days prior to the date of the hearing to the appealing party by any one of the following means:

1. Personal service; or

2. First class mail and posting the notice of hearing conspicuously on or in front of

the property on which the violation is located.

D. The failure of any person with an interest in the property to receive such notice of hearing shall not affect the validity of any proceedings taken under this chapter. Service by mail in the manner described above shall be deemed effective on the date of mailing.

E. Failure of any person to file an appeal in accordance with the provisions of this section shall constitute a failure to exhaust administrative remedies and will be waiver of that person's rights to administrative determination of the merits of the notice of violation and any amount assessed for the City’s abatement and administrative costs.

F. The City Council shall designate or appoint a hearing officer, and in no event shall the Code Enforcement Officer, nor any other officer or employee in his or her department, be the hearing officer for appeals occurring under this Chapter 9.12.

G. Hearing Procedure.

1. Except as otherwise provided herein, no hearing to contest a notice of violation or an amount assessed for the City’s abatement and administrative costs shall be held unless the appealing party pays the applicable appeal fee to the City.

2. A hearing shall be set for a date that is not less than fifteen (15) calendar days and not more than sixty (60) calendar days from the date that the request for hearing is filed in accordance with the provisions of this chapter.

3. At the hearing, the party contesting the notice of violation or the abatement and related administrative costs levied by the city shall be given the opportunity to testify and to present evidence supporting his/her/their appeal.

4. The failure of an appealing party to appear at the appeal hearing shall constitute a failure to exhaust his/her/their administrative remedies.

5. The notice of violation and any additional report submitted by the Code Enforcement Officer shall constitute prima facie evidence of the respective facts contained in those documents.

6. The hearing officer may continue the hearing and request additional information from the Code Enforcement Officer or the appealing party prior to issuing a written decision.

H. After considering all of the testimony and evidence submitted at the hearing, the hearing officer shall issue a written decision to uphold, modify, or cancel the notice of violation and/or the amount levied for abatement and related administrative costs and shall list in the decision the reasons for the decision. The decision of the hearing officer shall be final.

9.12.100 Violation and Responsibility
A. It is unlawful for a person to violate any provision or to fail to comply with any of the

requirements of this chapter.

B. Violations of this chapter are hereby declared a public nuisance and are subject to abatement by the city.

C. Any individual guilty of violating §9.12.070.A.shall pay restitution to the property owner in addition to penalties to the city. Parents or guardians of minors shall be liable.

D. The city may assess abatement and administrative costs as a special assessment or lien per § 9.12.080 against the violator’s property or against the property of the parent/guardian of a minor violator.

E. The remedies under this chapter are cumulative and in addition to other civil or criminal actions available at law or in equity.

9.12.110 Penalties
A. It is unlawful to apply graffiti on any premises.

B. It is unlawful and an infraction for a minor to unlawfully possess aerosol paint or wide tipped markers.

C. Penalties:

1. Misdemeanor: Up to $500 fine and/or 30 daysjail (first offense); up to $1,000 fine and/or 90 days jail (second offense within one year); up to $2,500 fine and/or 6 months jail (subsequent within one year).

2. Infraction: $50 (first offense); $100 (second offense within one year); $250 (subsequent within one year).

9.12.110 Alternatives
Nothing in this chapter prevents the city from commencing alternative civil or criminal nuisance abatement proceedings.

9.12.120 Severability
If any provision of this chapter is found invalid or unenforceable, such determination shall not affect remaining provisions, which shall remain in full force and effect.

11.H.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Waiver of second reading and adoption of Ordinance 2025-09, approving Zone Text Amendment No. 2025-11, a request to amend Title 17.56.050, 17.56.150, 17.56.155, and 17.56.310 Temporary and Portable Signs: in order to establish the placement, size and materials for portable signs.

RECOMMENDATION:

Recommendation: That the City Council, by motion, waive the second reading of and adopt Ordinance No. 2025-09, approving Zone Text Amendment 2025-11.

BACKGROUND:

Following approval and adoption of Ordinance No. 25-09 on December 2, 2025, staff determined that the ordinance was not properly noticed in accordance with applicable noticing requirements.

To correct this procedural issue, staff is requesting that the City Council waive the second reading of and adopt Ordinance No. 2025-09, approving Zone Text Amendment 2025-11, so that the ordinance may be properly noticed and brought into full compliance with legal requirements.

The proposed ordinance provides an alternative approach that would allow feather flags under specified restrictions to balance business visibility needs with community aesthetics and safety.

A summary of the proposed changes is provided below:

Location Restrictions
• Prohibited in rights-of-way, drive aisles/parking spaces, multiuse trails, or sidewalks that block a 4-foot pedestrian path.
• Cannot block pedestrian access or be placed within:
o 10 feet of a permanent freestanding sign,
o 10 feet of another portable/temporary freestanding sign, o 30 feet of a street intersection.

Placement & Size Standards
• Must be located on the same private property as the business using the sign. • Maximum size: 16 sq. ft.; Maximum height: 10 ft.
• Must be at least 7 ft. from the curb or pavement edge. • Cannot obstruct sight distance or view corridors
Design & Materials
• Constructed of durable, professional-quality materials (vinyl, polyethylene, fabric, etc.). • Must be well-maintained, free of fading, damage, and wear.

Quantity & Timing
• Minimum of 1 portable sign per parcel is allowed.
• Maximum of 1 sign per 30 linear feet of street frontage. • May only be displayed during business hours (½ hour before opening to ½ hour after closing).

Special Restrictions
• Feather flags are prohibited in the Downtown Mixed Use (MX-D) zone.

The Hanford Planning Commission recommended approval of the Ordinance.

In taking action on a Zone Text Amendment, the City Council must make the appropriate findings, in accordance with the Hanford Municipal Code:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy E11, the City of Hanford shall Strengthen the reputation of Hanford’s city government as one that is service-oriented and business friendly. The revision of Section 17.56.230 of the Hanford Municipal Code is consistent with the policies of the General Plan, as it continues the support of local businesses to advertise on their property.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community;
ANALYSIS: That the revision of Section 17.56.050, 17.56.150, 17.56.155, AND 17.56.310 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford.

The zone text amendment pertains to sign regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future

surrounding uses;
ANALYSIS: That the zone text amendment applies to signs and does not propose a change in land uses.

FISCAL IMPACT:

Not applicable
ATTACHMENTS:

1. Notice of Exemption

2. Ordinance 25-09

3. Temporary Sign Ordinance

Notice of Exemption 2025-XX
To: Office of Planning and Research
P.O. Box 3044, Room 212
Sacramento, CA 95812-3044
County Clerk
County of Kings
Kings County Government Center
Hanford, CA 93230
From: City of Hanford
317 North Douty Street
Hanford, CA 93230
Project Title: Zone Text Amendment No. 2025-11
Project Location – City of Hanford
Project Location – City: Hanford Project Location – County: Kings County Description of Nature, Purpose and Beneficiaries of Project: Zone Text Amendment No. 2025-11: 17.56.050, 17.56.150,

17.56.155, and 17.56.310 Temporary and Portable Signs: in order to establish the placement, size and materials for portable signs.

Name of Public Agency Approving Project: City of Hanford, Planning Division Name of Person or Agency Carrying Out Project: City of Hanford Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1); 152698);
Declared Emergency (Sec. 21080(b)(3); 15269 (a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption: State type and section number:

Statutory Exemption. State code number: 15061(b)(3) General Rule Reasons why project is exempt:

The proposed ordinance is exempt under Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed project is a text amendment that is not associated with a physical development; therefore, there are no physical impacts that will result from the project.

Lead Agency
Contact Person: Jason Waters Area Code/ Telephone: (559) 585-2590 Signature: Date: September 9, 2025 Title: Deputy City Manager

Signed by Lead Agency Date received for filing at OPR:

Signed by Applicant

ORDINANCE NO. 25-09
AN ORDINANCE APPROVING ZONE TEXT AMENDMENT NO. 2025-11, A REQUEST BY THE CITY OF HANFORD TO APPROVE ZONE TEXT AMENDMENT NO. 2025-11, 17.56.050,

17.56.150, 17.56.155, AND 17.56.310 TEMPORARY AND PORTABLE SIGNS The City Council of the City of Hanford does ordain as follows:

SECTION 1: The Hanford Municipal Code Title 17 the Zoning Ordinance contain regulations to ensure the public health, safety, peace, comfort, convenience, prosperity and general welfare of the citizens of Hanford, including zoning categories, allowed uses and development standards.

SECTION 2: The City Council has held a public hearing on the amendment 17.56.050, 17.56.150,

17.56.155, and 17.56.310 Temporary and Portable Signs by adding sections in order to establish the placement, size and materials for portable signs. The proposed ordinance changes are attached as Exhibit A.

SECTION 3: The City Council finds that the adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the following section of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3. a) The ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 4: The proposed amendment was evaluated for consistency with the General Plan and the Zoning Ordinance in accordance with Sections 17.86.030 and based on the following findings:

1. The amendment is internally consistent with the goals, objectives, and policies of the General Plan and this title;
ANALYSIS: That according to General Plan Policy E11, the City of Hanford shall Strengthen the reputation of Hanford’s city government as one that is service-oriented and business friendly. The revision of Section 17.56.230 of the Hanford Municipal Code is consistent with the policies of the General Plan, as it continues the support of local businesses to advertise on their property.

2. The amendment would not be detrimental to the public health, safety, or welfare of the community; ANALYSIS: That the revision of Section 17.56.050, 17.56.150, 17.56.155, AND 17.56.310 of the Hanford Municipal Code is not detrimental to the public health, safety, or welfare of the community.

3. The amendment would maintain the appropriate balance of land uses within the City; ANALYSIS: That the amendment will not affect the balance of land uses within the City of Hanford. The zone text amendment pertains to sign regulations, only.

4. The anticipated land uses on the subject site would be compatible with existing and future surrounding uses;
ANALYSIS: That the zone text amendment applies signs in all zone districts and will not propose a change in land uses.

SECTION 5: The City Council of the City of Hanford does ordain that Title 17 is hereby amended, as shown in Exhibit A.

SECTION 6: That the ordinance shall take effect thirty (30) days after its passage, and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.

Passed and adopted at a regular meeting of the City Council of the City of Hanford duly called and held on December 2, 2025, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED
____________________________
Travis Paden
MAYOR of the City of Hanford
ATTEST:
________________________
Natalie Corral

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )

I, NATALIE CORRAL, City Clerk of the City of Hanford, do hereby certify the foregoing ordinance was duly introduced at a regular meeting of the City Council of the City of Hanford on the 7th day of October, 2025, and it was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ____ day of ____, 2025.

NATALIE CORRAL

CITY CLERK

17.56.050 Prohibited signs.

S. Feather signs.

17.56.150 Temporary sign standards.

E. Temporary freestanding signs shall be affixed to supporting structures made of a durable, rigid material such as, without limitation, wood, plastic or metal. Feather banners must be secured and stabilized so as to withstand wind gusts, or be removed during windy conditions. Freestanding signs placed on sidewalks in conformance with this chapter are exempt from this subsection if they have a weight and mass that makes them not inadvertently movable.

17.56.155 Portable signs
A. Portable Signs in nonresidential zones shall not be located:

1. In any public right-of-way;

2. In parking lot driving lanes, aisles or spaces;

3. On multiuse trails or sidewalks if they would block a four-foot wide pedestrian path of travel;

4. At any location where they would block pedestrian access;

5. Within 10 feet on either side, or in front of, a permanent freestanding sign, portable sign, or temporary sign;

6. Within 30 feet from an intersection of two streets.

B. Portable signs are subject to the following standards:

1. Portable signs shall be placed on private property on the same lot or development site as the establishment that qualifies for such sign.

2. The total sign area for a portable sign may not exceed 16 square feet.

3. Portable signs must not exceed a height of 10 feet above the ground level.

4. Portable signs must be a minimum of seven feet from the back of the curb, or edge of pavement where no curb exists.

5. Portable signs shall not interfere with either pedestrian or vehicular sight distance, any view corridor, obstruct views to any existing business or existing permanent sign.

6. Portable signs shall be constructed of acceptable materials such as vinyl, nylon reinforced vinyl, polyethylene or polyester-like materials, durable fabric, or similar materials.

7. A minimum of one portable sign shall be allowed per parcel, regardless of frontage length.

8. The number of portable signs allowed on a site shall not exceed one (1) for every thirty (30) lineal feet of frontage along the adjacent public street.

9. Portable signs are permitted during the hours a business is open for business and one-half hour before opening and one-half hour after closing. They must be removed during hours when the establishment is not open to the public

10. Feather flags are prohibited in the Downtown Mixed Use (MX-D) zone.

11. Portable signs shall be constructed of durable materials, not subject to rapid deterioration or fading, and shall be professional in appearance. Signs must be maintained in good condition, free from damage, fading, or wear that impairs legibility or aesthetic quality.

17.56.310 Definitions.
"Temporary sign" means a sign that is easily moveable and which is not attached to a building, structure, or the ground in such a manner as to be rendered a permanent sign. "Temporary sign" means a sign or advertising display constructed of fabric, cardboard, plywood, or other light material, with or without a frame that is not designed for permanent display. Temporary signs do not include portable signs such as A-frame signs or feather flags that are required to be removed during non-business hours. “Portable Sign” means a freestanding sign that is not permanently affixed, anchored or secured to either the ground or a structure on the property it occupies including A-frame signs and feather flags.

11.I.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Youth Athletic Complex (YAC) Facility Use Agreement with Hanford Youth Baseball, pending modifications, which are approved by the City Attorney, that are consistent with provisions contained in the draft.

RECOMMENDATION:

Recommendation: Council approves this Facility Use Agreement with Hanford Youth Baseball (HYB) for the use of the Youth Athletic Complex (YAC) pending modifications, which are approved by the City Attorney, that are consistent with provisions contained in the draft.

Recommended Motion: I motion to approve this Facility Use Agreement with Hanford Youth Baseball (HYB) for the use of the Youth Athletic Complex (YAC) pending modifications, which are approved by the City Attorney, that are consistent with provisions contained in the draft.

BACKGROUND:

During the June 3, 2025 City Council meeting, the Council created an ad-hoc committee to develop an agreement between the City of Hanford and Hanford Youth Baseball (HYB) for the use of the Youth Athletic Complex (YAC). The ad-hoc committee consisted of two City Council members, the City Manager, and the Parks and Community Services Director. From August through December 2025, the ad hoc committee met with HYB leadership to negotiate a Facility Use Agreement that benefits both parties.

The overriding goal is to provide safe, clean, and well-managed youth baseball opportunities for the community. Both parties recognize the importance of well-maintained sports fields and ongoing reinvestment in the YAC, while assisting the City in improving cost recovery.

The Summary of the Final Agreement Principles are as follows:

1. Length of the Agreement: Three years with 2 one-year extensions

2. Field Maintenance — HYB will maintain the four Bob Hill baseball fields year-round. The City will maintain the internal common areas, Rotary Field, and the Basin year-round

3. The year is divided into two timeframes: in-season (1/1 to 5/31) and off-season (6/1 to 11/30).

December will be reserved for field recovery.

4. The annual field permit fee will be waived in lieu of year-round maintenance of the Bob Hill baseball fields

5. HYB will pay the City $50 per day of use of the concession stand

6. The City will provide the minor and major repairs to the YAC

7. During the off-season, the City may manage two baseball tournaments per month. All tournament and concession revenue is retained by the City FISCAL IMPACT:

The City will receive the lighting fee to be established in the future. The City will also generate revenue from the off-season from tournaments and concessions.

ATTACHMENTS:

1. Draft Agreement

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FACILITY USE AGREEMENT BETWEEN THE CITY OF HANFORD AND

HANFORD YOUTH BASEBALL (HYB)
THIS LEASE AGREEMENT made and entered into as of the _______________ by and between the CITY OF HANFORD, a Municipal Corporation, hereinafter referred to as "CITY" and HANFORD YOUTH BASEBALL, hereinafter referred to as "HYB"; WITNESSETH:

For and in consideration of the covenants and agreements hereinafter contained on the part of HYB to be kept and performed, and in consideration of the usage costs to be paid to CITY as hereinafter set forth, CITY hereby agrees to enter into a Facility Use Agreement with HYB for priority use of Hanford Youth Athletic Complex (YAC), including the use of four (4) baseball fields (Bob Hill Baseball Complex), Rotary Field, the basin, and the shared use of the concession stand and restroom facilities. (See Attachment A for facility map)

DEFINITION OF TERMS
Within the agreement, the following date period and terminology are defined as follows:

In-Season – January 1 to May 31 (Annually). HYB has exclusive use of the YAC.

Off-Season – June 1 to November 30 (Annually)
Field Recovery – The month of December

1.TERM
The term of this FACILITY USE AGREEMENT is three (3) years with two (2) one (1) year extensions, inclusive only of years in which HYB commences its game season, beginning on January 1, 2026, and ending on June 30, 2029.

2. FEES AND CHARGES
Field Permit Fees
The CITY will waive the established field permit fees, and, in exchange, HYB shall provide in-kind maintenance and improvements to the four Bob Hill baseball fields and provide other services described in this AGREEMENT.

Field Light Fees
Field light use shall be charged at the Council-approved established light fee per field, per hour, plus a $0.50 annual escalator.

Concession Stand Usage
Concession stand usage shall be charged at $50 per day of use.

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Payment of Fees
The City shall invoice HYB monthly for all fees as described above. Payment is due within thirty (30) days of the invoice date. All payments not received by the due date shall be subject to a two percent (2%) late fee penalty of the amount owing.

3. FACILITY USE
For this Agreement, facility use will be designated during two time periods:

HYB In-Season January 1 to May 31 annually. (All-Star teams may practice during July and August, if needed)
HYB Off-Season June 1 to November 30 annually
In-Season Roles and Responsibilities
Hanford Youth Baseball (HYB) will:

1. Acquire field permits for the four Bob Hill baseball fields, Rotary Field, and the Basin fields for practices and games. The field permitting process includes completion of a field permit application, submission of the insurance documentation identified below, and payment of a $250 deposit.

2. Pay $0 per field per hour without lights.

3. Pay the established light usage fee, per hour, when the lights are turned on, as recorded by the Musco Lighting program.

4. Stock and operate concessions at a rental fee of $50 per day of use (approximately 60 days)

5. Retain all revenue from concession operations.

6. Be responsible for restroom janitorial services and supplies.

7. Be responsible for litter cleanup of the entire facility (Bob Hill, Rotary Field, Basin, and the parking lot.

8. Maintain and repair the batting cages

9. Be responsible for the maintenance, mowing, and game preparation of the four Bob Hill diamonds.

10. Pay 50% of the concession equipment repair/replacement costs

11. Be able to host Cal Ripken-sanctioned tournaments and keep 100% of the revenue

12. Not to sub-permit any field.

13. Be able to host Cal Ripken-sanctioned tournaments and keep 100% of the revenue and expenses.

14. Reinvest into the facility to ensure continued operation, extend the asset’s service life, and protect prior public investments. May include capital improvements, deferred maintenance, operational upgrades, and technology enhancements.

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City of Hanford will:

1. Maintain the Rotary Field, the Basin, and the Bob Hill internal common areas.

2. Provide minor and major repairs to all areas of the YAC

3. Provide the concession equipment

4. Pay 50% of the concession repair/replacement costs

5. Provide electrical, water, and sewer utilities to the entire YAC

6. Ensure proper operation of the lighting

7. Reinvest into the facility to ensure continued operation, extend the asset’s service life, and protect prior public investments. May include capital improvements, deferred maintenance, operational upgrades, and technology enhancements Off-Season Roles and Responsibilities
Hanford Youth Baseball will:

1. Be responsible for the maintenance and mowing of the four Bob Hill diamonds.

2. Maintain and repair batting cages

3. Pay 50% of the concession equipment repair/replacement

4. Reinvest into the facility to ensure continued operation, extend the asset’s service life, and protect prior public investments. May include capital improvements, deferred maintenance, operational upgrades, and technology enhancements City of Hanford will:

1. Permit Rotary Field and the Basin

2. Provide minor and major repairs to all areas of the YAC

3. Be responsible for restroom janitorial services and supplies.

4. Be responsible for litter cleanup of the entire facility (Bob Hill, Rotary Field, Basin, and the parking lot.

5. Retain all revenue from the concession operations

6. Host up to two baseball tournaments per month (July through November)

7. Retain all tournament revenue

8. Supply all equipment and prepare the fields for play

9. Waive tournament entry fees to three HYB travel-ball teams per tournament.

10. Reinvest into the facility to ensure continued operation, extend the asset’s service life, and protect prior public investments. May include capital improvements, deferred maintenance, operational upgrades, and technology enhancements HYB shall submit a request for field use in accordance with the City's field permit application process. HYB may request only the field space necessary to accommodate regular-season games. Any time and/or field not being utilized by HYB shall be allocated to other facility users, provided that said use does not conflict with HYB's use of the premises. CITY shall have the right of access to the subject premises at all times. HYB agrees to use the premises and property which is the subject of this FACILITY USE AGREEMENT, exclusively in

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connection with the operation of HYB's recreational league.

CITY agrees that HYB shall have exclusive use of the YAC and concession stand during the in-season timeframe (January 1 to May 31, annually).

4. CITY reserves the right to cancel any scheduled use by HYB in the case of excessive rain before or during the event. CITY has a vested interest in protecting the park turf from damage and in protecting the public interest by preventing potential injuries arising from excessive moisture on the park grounds. Representatives from CITY and HYB will, if feasible, meet before an event to assess the park's condition and determine measures to protect the turf and/or the public interest. The final decision to cancel an event will be determined by the City's Director of Community Services or their designee. Game schedules shall be provided to the City of Hanford before the start of each season (Spring and Fall). CONCESSION STAND
During the In-Season, HYB is exclusively responsible for the operation of the Bob Hill Complex concession stand and for the direction and control of all volunteers and employees employed in such concession operations during HYB's in-season dates. Both HYB and CITY shall ensure that the concession stand is left clean and in good repair after each use. In the operation of said concession stand, HYB shall comply with all applicable permits and requirements set forth by the Kings County Health and Human Services Agency, City of Hanford, and State of California, including a valid Business Tax Certificate and Health permits.

The CITY shall not be responsible for damage and/or theft of personal property of HYB.

HYB shall remove all perishable items no later than one week from the conclusion of their inseason permit.

5. ADDITIONAL SERVICES
Due to the size and nature of HYB's program, additional services, in addition to regular operational services provided by the City, are required. a. Refuse – D u ri n g t h e I n - S e a s o n HYB shall be responsible for collecting any trash/litter and dumping the trash cans throughout the YAC, including spectator areas, bleachers, dugouts, restrooms, playing fields, and parking lot adjacent to the YAC during the in-season time period.

During the off-season, the City shall be responsible for collecting trash/litter and for dumping trash cans throughout the YAC, including spectator areas, bleachers, dugouts, restrooms, playing fields, and the parking lot adjacent to the YAC.

6.INSTALLATION OF SIGNS AND/OR BANNERS
During the term of this FACILITY USE AGREEMENT, HYB shall, subject to the City’s sign regulations contained in Hanford Municipal Code Chapter 17.56, have the following rights regarding installation and removal of signs and/or banners:

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Signs and/or banners must be placed upon designated areas within the Bob Hill fields only and must face the interior of the premises. No signage shall be permitted to be displayed outside the facility.

HYB shall be allowed to display signs and/or banners within the Bob Hill fields. The signs and/or banners must be placed in designated areas only and must face the interior of the Bob Hill fields. No signage shall be permitted to be displaced facing outward from the complex.

Any sign and/or banner installed, operated, and maintained by HYB will be HYB's total financial responsibility.

Before installation of any signs and/or banners, HYB shall obtain written approval of the CITY as to the banner size, design, and location. Signs and/or flags may be displayed seasonally, and may be installed on the first day of each season and removed by the last day of each season. Signs and/or banners may be installed for scheduled tournaments. They may be installed on the first day of the tournament and removed by the last day of the tournament.

HYB shall obtain all necessary permits from the City Planning Division in compliance with the City of Hanford Municipal Code.

7. FACILITY AND GROUNDS MAINTENANCE AND IMPROVEMENTS
HYB shall maintain and make specific improvements to the premises and property which is the subject of this FACILITY USE AGREEMENT, provided that HYB obtains the prior written approval of CITY for any such improvements. Upon the expiration of this FACILITY USE AGREEMENT, and any extension thereof, all such improvements shall automatically transfer to the CITY'S ownership. Should the CITY elect to require the HYB to remove said improvements, HYB shall do so and return the property to its original condition, subject to reasonable and normal wear and tear.

City shall, except as otherwise provided herein, assume responsibility for all minor maintenance, damage, repair, and upkeep of the premises as mentioned earlier during inseason HYB use. HYB agrees to immediately notify CITY (within 48 hours) of any damage to the premises including such items as the concession stand, restrooms, fixtures, equipment, grounds, landscaping, sprinklers and irrigation, to allow the CITY the ability to determine who shall be held responsible for the repair and/or replacement and determine the manner in which the repair and/or replacement is to be completed. Furthermore, CITY shall have the sole discretion in determining whether the damage or destruction mentioned above resulted from or in connection with HYB.

HYB shall assume responsibility for the preparation of playing fields (field lines, bases, dragging of fields, etc.) before games. Throughout the duration of this FACILITY USE AGREEMENT, HYB shall maintain its personal property (portable equipment, storage units, etc.) in a manner agreeable to CITY. HYB shall be responsible for picking up and disposing of trash and litter after each use as outlined in section 5. HYB shall also be responsible for any repair and/or maintenance resulting from vandalism and/or graffiti on equipment or structures that HYB owns. Said graffiti removal shall be completed in accordance with the

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City of Hanford Municipal Code Chapter 9.16, sections 9.16.070 Removal.

CITY shall, except as otherwise provided herein, also be responsible for minor and major structural repairs and/or capital improvements to the premises which are the subject of this FACILITY USE AGREEMENT. CITY shall have the sole discretion of determining what constitutes significant structural and/or capital improvements.

HYB will be responsible for the mowing, detailed trimming, grooming, field prep, and filling of holes of the four infield areas of the Bob Hill fields during the in-season time period Examples of in-kind maintenance include, but are not limited to:
• Mowing and edging
• Infield grading
• Fertilizer
• Gasoline
• Chalk
Examples of facility improvements include, but are not limited to:
• Bleacher repair/replacement
• Batting cages
• Safety netting
• Hardscape
• Fencing repair/replacement
• Bases
Repairs - Any facilities that are subject to this AGREEMENT that are damaged by HYB, or in any way as a result of work performed by HYB, must be repaired or replaced in kind and in a City-approved manner by HYB. Repairs must be made immediately after damage occurs, unless otherwise directed by the City.

Vandalism - If the City deems it appropriate, reimbursement for materials utilized by HYB to fix the vandalism may be provided. Vandalism of the YAC, as identified by HYB, will be documented by HYB using digital photographs or video and submitted to the Community Services Department as evidence of the vandalism. The preferred method of transmitting photos is email.

Failure to provide such documentation may result in no reimbursement of corrective expenses to HYB. HYB shall keep an itemized list of materials used to repair vandalism damage and submit it to the Community Services Department for reimbursement of materials only.

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8. STORAGE
HYB shall be allowed to maintain storage containers (seatrains) subject to CITY approval in an area designated by the CITY for such use within the YAC. Containers may not exceed 20'x8' and must comply with CITY standards as to size, location, maintenance/condition, and color of such storage container(s). The CITY is not responsible for any damage to or theft of HYB property while stored at the facility.

HYB shall be allowed to store infield mix within the designated areas of the YAC. The area must be kept clear of debris.

The City shall secure an on-site storage unit for off-season equipment and maintenance.

9. PARKING/ USE OF MOTORIZED VEHICLES
Vehicles must be parked in designated parking areas. HYB may not charge for parking without the CITY's written consent. HYB may not reserve parking spots without written consent from the CITY. Overnight camping is not allowed.

The use of motorized utility vehicles, including but not limited to golf carts, GEM cars, and Gator vehicles, is restricted to licensed drivers, and use of vehicles must be in conjunction with program functions and/or duties.

10.OUTSIDE VENDORS
Only HYB is permitted to provide goods and/or services under the Agreement. If HYB desires an outside vendor to provide food, entertainment, goods, or other services, such vendor must be pre-approved in writing by the City of Hanford. Only vendors with a valid City of Hanford Business Tax Certificate and other permits as required by Kings County and/or the State of California will be considered. Authorized vendors shall satisfy the insurance requirements identified below.

11.SECURITY
HYB shall provide security and supervision at all scheduled in-season activities, including crowd control, at a level satisfactory to CITY, sufficient to ensure adequate protection of the premises that are the subject of this FACILITY USE AGREEMENT. This shall include the presence of HYB Board Members while games are in progress.

12.ASSIGNMENT
HYB shall not assign, mortgage, sublet, or otherwise transfer any interest in this FACILITY USE AGREEMENT to any person, firm, or corporation during the term of this FACILITY USE AGREEMENT or any extension thereof without the written consent of CITY first had and obtained.

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INSURANCE REQUIREMENTS.
a. HYB and other parties required to maintain insurance under this AGREEMENT will, during the term of this Agreement, maintain insurance coverage which shall be at least as broad as:
(1) Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per accident for bodily injury or disease.
(2) Commercial General Liability (CGL) – Insurance Services Office (ISO) Form CG 0001, including products and completed operations, property damage, bodily injury, and personal & advertising injury with a limit of no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, and a general aggregate limit of no less than FOUR MILLION AND NO/100 DOLLARS ($4,000,000).
(3) Automobile Liability Coverage. If HYB will utilize one or more automobiles in association with HYB's use or occupation of the facility, HYB will maintain automobile liability coverage written on ISO Form Number CA 0001 covering any auto (Code 1), or if HYB has no owned autos, Code 8 (hired) and 9 (non-owned), with a limit no less than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per accident for bodily injury and property damage.

If an insured maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the insured.

Insurance policies shall be "occurrence" policies and not "claims-made." An insured may use Umbrella or Excess Policies to provide the liability limits as required in this Agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, deductibles and self-insured retentions, indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a proper "following form" or broader coverage basis, with coverage at least as wide as provided on the underlying insurance. No insurance policies maintained by any additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the insured’s primary and excess liability policies are exhausted.

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b. Any deductibles or self-insured retentions must be declared to and approved by the City.
c. The policies are to contain, or be endorsed to contain, the following provisions:
(1) City and its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL and automobile liability policies.

General liability coverage can be provided in the form of an endorsement to Consultant's insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33 or CG 20 38 and CG 20 37 if a later edition is used. The coverage shall contain no special limitations on the scope of protection afforded to the City and its officers, officials, employees, or volunteers. (2) For any claims related to this Agreement, the insured’s insurance coverage shall be primary insurance as to the City and its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City or its officers, officials, employees, or volunteers shall be in excess of the insured’s insurance and shall be non-contributory. (3) Each insurance policy required above shall provide that coverage shall not be canceled, except upon thirty days' prior written notice to the City. d. insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII.
e. HYB shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language affecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before HYB's use of the facility. However, failure to obtain the required documents before HYB's use of the facility shall not constitute a waiver of HYB's obligation to provide them. The City reserves the right to require complete, certified copies of all the necessary insurance policies, including endorsements required by these specifications, at any time.
f. HYB and other parties required to maintain insurance under this Agreement shall grant to City and its officers, officials, employees, and volunteers a waiver of any right to subrogation which any insurer may acquire against the City or its officers, officials, employees, or volunteers by virtue of the payment of any loss under such insurance. Insured parties shall obtain the endorsements necessary to effect this waiver of subrogation. Still, this provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer.

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13. INDEMNIFICATION
a. The City and its officers, officials, employees, and volunteers shall not be liable to HYB for any injury or damage that may result to any person or property by or from any cause whatsoever, including, without limitation, the condition of the facility; provided however, such waiver and release will not apply to any condition arising from the gross negligence or willful misconduct of the City or its officials, officers, employees or volunteers.
b. HYB shall indemnify, defend and hold the City and its officers, officials, employees, and volunteers harmless from and against any liability, injuries, claims, losses, costs, damages, attorney's fees, and other amounts in any way associated with, related to, or arising from: (i) HYB's use or occupancy of the facility, including, without limitation, any HYB activity, or thing done, permitted or suffered to be done in, about or around the facility; (ii) any breach or default in the performance of any obligation on HYB's part to be performed under the terms and conditions of this Agreement; or (iii) any act, negligence, fault, or omission of HYB or of HYB's directors, officers, agents, representatives, employees, volunteers, invitees, participants, spectators, or contractors. HYB shall also indemnify, defend, and hold the City and its officers, officials, employees, and volunteers harmless from and against any injuries, losses, costs, and damages incurred by HYB or its directors, officers, agents, representatives, employees, volunteers, invitees, participants, spectators, or contractors as a result of the condition of the facility or surrounding area.
c. In case any action or proceeding is brought against the City or its officers, officials, employees, or volunteers for which HYB is obligated to defend hereunder, HYB, upon demand from the City, shall defend the same at HYB's sole cost by counsel satisfactory to the City.
d. Notwithstanding the foregoing, the City and its officers, officials, employees, and volunteers shall not be liable to HYB for loss or damage to any property by theft or otherwise, nor for any injury or damage to persons or property occurring at the facility or resulting from any condition affecting the facility.

14.DISCRIMINATION
HYB as an organization, including personal representatives, successors in interest, and assignors, as a part of the consideration hereof, does hereby covenant and agree that no person on the grounds of race, color, sex, handicap, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said premises.

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15.TERMINATION
In addition to any other provision in this FACILITY USE AGREEMENT, this AGREEMENT may be canceled or terminated upon the following:
a. This AGREEMENT and the tenancy hereby granted may be terminated or canceled at any time by either party hereto by giving to the other party not less than sixty (60) days' written notice.
b. This AGREEMENT shall terminate automatically if either party hereto fails to remedy any breach or any term or condition of this AGREEMENT within thirty (30) days after receiving written demand from the other party to do so. If, however, either party is diligently proceeding in good faith to eliminate such default, which does not involve the payment of money hereunder, then the period for correction shall be extended for such length of time as is reasonably necessary to complete such correction.
c. HYB agrees at the end of the AGREEMENT term or in the event of an early termination, as provided for herein, to quit and deliver up said premises in as good condition as they are now, ordinary wear and tear excepted.

16.Good Neighbor Practices
The City and HYB agree to:
• Adhere to the noise regulations established in the Hanford Municipal Code, Chapter

9.10. Refrain from excessive noise or the use of whistles before 7:00 am and after 10:00 pm.
• Playing fields are to be used for the purposes identified in this agreement • Tobacco and alcohol use are not allowed on the premises • All participants must adhere to the City of Hanford’s parking laws and regulations, including, without limitation, not blocking residential driveways, public alleys, or sidewalks.

17. AMENDMENT
This AGREEMENT may be amended at any time by mutual Agreement of the parties in writing.

18.NOTICE
All notices to be given to CITY pursuant to this FACILITY USE AGREEMENT shall be mailed to City of Hanford, Community Services Department, 321 North Douty, Hanford, California 93230. All notices to be given to HYB pursuant to this FACILITY USE AGREEMENT shall be mailed to HYB c/o League President at P.0 Box 1968, Hanford, CA 93230.

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ENTIRE AGREEMENT
This FACILITY USE AGREEMENT contains the entire AGREEMENT between the parties.

No promise, representation, warranty, or covenant not included in this AGREEMENT has been or is relied on by either party. Each party has relied on his/her own examination of this AGREEMENT, counsel of its own advisors, and warranties, representations, or covenants in the AGREEMENT itself. The failure or refusal of either party to inspect the premises or improvements, to read the AGREEMENT or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice.

If there is litigation between the parties, the prevailing party will be entitled to its reasonable attorney’s fees and costs.

IN WITNESS WHEREOF, the parties have executed this FACILITY USE AGREEMENT as of the date first above written.

CITY OF HANFORD
_____________________________________________ __________________________ City Manager Date

HANFORD YOUTH BASEBALL
____________________________________________ _________________________ Hanford Youth Baseball League President Date

11.J.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Authorization for the City to accept and appropriate funding for an FAA Airport Improvement Program grant (AIP), once the grant offer is received, for the Hanford Municipal Airport, in the amount of $857,000 for reconstruction of the south transient ramp, phase 1 and removal of Taxiway B and a segment of Taxiway D and authorization for the City Manager to execute the Grant Agreement. A total appropriation in the Airport Fund of $857,000. $96,907 of local matching funds will be required contingent on the grant award.

RECOMMENDATION:

Recommendation:

That the City Council, authorize the acceptance and appropriation of an FAA Airport Improvement Program (AIP), once a grant offer is received for the Hanford Municipal Airport for the Hanford Municipal Airport, in the amount of $857,000 for reconstruction of the south transient ramp, phase 1 and removal of Taxiway B and a segment of Taxiway D and authorization for the City Manager to execute the Grant Agreement. A total appropriation in the Airport Fund of $857,000 ($724,850 FAA AIP, $36,243 State AIP, $95,907 local match) is required, contingent on the grant award.

Recommended Motion:

That the City Council, by motion, authorize the acceptance and appropriation of an FAA Airport Improvement Program (AIP), once a grant offer is received for the Hanford Municipal Airport for the Hanford Municipal Airport, in the amount of $857,000 for reconstruction of the south transient ramp, phase 1 and removal of Taxiway B and a segment of Taxiway D and authorization for the City Manager to execute the Grant Agreement. A total appropriation in the Airport Fund of $857,000 ($724,850 FAA AIP, $36,243 State AIP, $95,907 local match) is required, contingent on the grant award.

BACKGROUND:

An Application for Federal Aviation Administration Airport Improvement Program has been prepared for the construction of the Phase 1 Reconstruct South Transient Ramp and Remove Taxiway B and Segment of Taxiway D, proposed to be included in the 2026 Airport Improvement Program (AIP) at the Hanford Municipal Airport. The project description is as follows:

The pavements on the existing South Transient Ramp are highly degraded with severe cracking and are over 20 years old. The PCI of the pavements on this ramp is 36. It is considered important to rehabilitate these pavements as soon as possible so that the surface does not deteriorate further and create surface failure.

It is proposed that the South Transient Ramp Phase 1 (3,500 sq. yd. eligible, 550 sq. yd. ineligible) reconstruction will consist of pulverizing and recompacting existing AC and AB as ASB, placing a new aggregate base course, and placing a new asphalt surface course. New drainage will be installed for the ramp. New markings and tie downs will be installed.

Remove Taxiway B (75’ x 200’) – The existing Taxiway B will be removed to eliminate direct access from the apron to the runway. The existing taxiway pavement will be pulverized and removed and reused as aggregate subbase course in the new South Transient Ramp pavement section. The existing taxiway lights, light cans, signs and sign pads will be removed. The area will be graded to drain and match existing topography.

Remove Taxiway D (55’ x 43’) – The existing segment of Taxiway D will be removed to eliminate direct access from the apron to the runway. The segment of Taxiway D between Taxiway A and the apron will be pulverized and removed and reused as an aggregate subbase course in the new South Transient Ramp pavement section. The existing taxiway light cans would be removed. The area would be graded to drain and match existing topography.

This project consists of the construction of the project and engineering support during bidding and contract award, engineering design services during construction and project closeout, and construction management including resident engineering, testing and inspection.

FISCAL IMPACT:

At this time, there is no fiscal impact. If awarded the AIP grant, the City will be required to match a total of $95,907 ouf of the Airport Fund, contingent on grant approval.

ATTACHMENTS:

1. 2026 AIP Application

11.K.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Affirm approval and appropriation from the General Fund reserve for emergency repairs on Fire Engine #164 in the amount of $63,712.72 from Betts Truck Parts and Service of Fresno CA.

RECOMMENDATION:

Recommendation:

That the City Council, by motion, affirm approval and appropriate from the General Fund reserve $63,712.72 for the sole source repair of Fire Engine #164 from Betts Truck Parts and Service of Fresno, CA.

Recommended Motion:

I move, to affirm approval and appropriate from the General Fund reserve $63,712.72 for the sole source repair of Fire Engine #164 from Betts Truck Parts and Service of Fresno, CA.

BACKGROUND:

Fire Engine #164 was purchased in 2014 and has a current life cost of $233,443 and has accumulated 103,286 miles as of the date of this report. In 2024, the engine required an emergency engine replacement due to failure. The City Manager authorized to begin this repair under emergency powers authorization in alignment with the City's Purchasing Policy to get the Fire Engine in service as soon as possible for the City's Health and Safety of the public. As this is over a $50,000 cost, it is being brought to City Council for affirmation and appropriation of funds.

Recently, Fire Engine #164 has developed severe issues with the steering function on the vehicle.

City staff investigated the issue and determined that both lower and upper control arms are in need of immediate replacement, along with the front suspension on the vehicle.

Although City staff has received fire-specific training on equipment, this is not a task that City staff is either equipped for nor have the qualified experience for such an endeavor. Staff then reached out to Betts Truck and Service to obtain a quote on parts and labor for repairs. Staff is recommended a sole source procurement for the repairs of Fire Engine #164 due to the size of the vehicles, repairs needed, availability of parts and expertise working on large-scale fire vehicles.

Fire Engine #164 has a replacement truck ordered. However, that vehicle will not be complete until 2027. Once the replacement truck arrives and is put into service, the existing truck #164 will be placed in the City's Reserve Fleet and be available on an as-needed basis.

FISCAL IMPACT:

As these are emergency repairs, they were not budgeted for nor currently offset and therefore, would be funded by the General Fund Reserve balance.

ATTACHMENTS:

1. Betts Quote

2. Bett's Sole Source Justification

PUBLIC WORKS DEPARTMENT | 900 SOUTH 10TH AVENUE HANFORD, CA 93230 559.585.2500 | WWW.HANFORD.CITY
December 17, 2025
To: Finance Department
This form must be used as justification for a purchase from a single or sole source provider without open competition when the purchase is $2,500 or above.

The following statements, in my professional judgement, are correct. I have researched my requirements to support these findings. I also certify that no personal advantage, gain or privilege has (or will) accrued to me through the purchase from this vendor. I have reviewed the vendor’s proposed costs and find those costs fair and reasonable for the item proposed.

Explanation for Single/Sole Source:

Betts Truck Parts & Service is a specialized vendor that provides replacement parts and repair services for heavy-duty diesel vehicles. They maintain an inventory of new and refurbished components and can quickly source, deliver, and install parts not currently in stock. Betts Truck Parts & Service is the only vendor in our area with the capability to disassemble and reinstall heavy-duty suspension components on fire apparatus, including Fire Truck #164. The front upper and lower control arms, along with related suspension components, require replacement and must be serviced by a vendor with this specialized expertise. Due to the unique nature of the parts and services required, competitive bidding is not applicable.

Reuben Vallejo
Fleet Superintendent
City of Hanford, Public Works Department
900 S. 10th St., Hanford CA 93230

11.L.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Approval of the Notice of Completion for the FY 24-25 Pavement Resurfacing Treatment (Single and Double Fiberized Slurry Overlay) Project, with a final sub-project cost of $936,588.01, and Authorization for the Mayor to execute and the City Clerk to file the Notice with the Kings County Recorder's Office.

RECOMMENDATION:

Recommendation:

That the City Council, by motion:

1. Approve the Notice of Completion for the FY 2024–25 Pavement Resurfacing Treatment (Single and Double Fiberized Slurry Overlay) Project, with a final sub-project cost of $936,588.01; and

2. 3. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion with the Kings County Recorder’s Office.

BACKGROUND:

On June 17, 2025, the City Council authorized the City Manager to award and execute the construction contract for the FY 2024–25 Pavement Resurfacing Treatment Project. The bid opening was held on June 10, 2025, at which time five (5) bids were received. Following review, staff determined that DRYCO Construction, of Sacramento, California, was the lowest responsive and responsible bidder with demonstrated experience in municipal paving projects. The contract was awarded in the amount of $883,883.00.

The Capital Improvement Project consisted of two (2) phases of construction. • Phase One included pavement resurfacing using single and double fiberized slurry seal treatments along approximately 11 linear miles of arterial and residential roadways to protect and preserve City streets.
• Phase Two included the adjustment of approximately 29 manholes and 41 gate valve covers.

The resurfacing work was funded through Measure H allocations and was designed to restore surface integrity, address pavement deterioration caused by natural oil loss and vehicular traffic, and

extend the overall service life of the City’s roadway network. Slurry seal treatments were selected based on pavement condition assessments to maximize roadway longevity and reduce long-term maintenance costs.

Construction began on September 2, 2025. During construction, Contract Change Order No. 1 was issued in the amount of $42,429.10 to account for additional quantities of Type II and Type III microfiber slurry resulting from a miscalculation of bid quantities, particularly along 11th Avenue between Hume Street and Houston Avenue, adding 8,659 square yards to Contract Line Item No. 3 (Double Fiber Micro Surfacing – Type II over Type III Aggregate). Maps of the re-surfaced roadways are attached in this report.

The project has been completed in accordance with the contract documents, and staff recommends acceptance of the work and approval of the Notice of Completion.

FISCAL IMPACT:

Design, staff management, inspection, and construction costs for this project were funded through Measure H funds appropriated in the FY 2025–26 Capital Improvement Plan.

The FY 2024–25 Pavement Resurfacing Treatment Project consisted of two related sub-projects sharing a combined budget, as summarized below:
• FY 2024–25 Pavement Resurfacing Treatment (Manhole and Valve Cover Adjustment) - NOC Authorized on December 16, 2025.

Project No. 0011-826601 | PO 22600376
Budget AMount: $321,510
Final Cost: $205,373.87
• FY 2024–25 Pavement Resurfacing Treatment (Single and Double Fiberized Slurry Overlay)
Project No. 0011-826601 | PO 22600375
Budget Amount: $978,554.00
Final Cost: $936,588.01
Single and Double Fiberized Slurry Overlay – Final Cost Breakdown Contractor: DRYCO Construction, Inc.

Address: 9390 Elder Creek Rd., Sacramento, CA 95829
Sub-Project Budget Total:....................................................................................$978,554.00 • Contract Amount:................................................................................................$883,883.00 • Contract Change Order No. 1:............................................................................$42,429.10 • Materials Testing:................................................................................................$6,270.00 • City Construction Management & Inspection:.....................................................$3,500.00 • Misc. Expenses (Postage/Media/Clerical):..........................................................$506.01 Sub-Project Final Cost:.........................................................................................$936,588.01 Sub-Project Budget Surplus:...............................................................................$43,965.99 Total FY 2024–25 Pavement Resurfacing Treatment Project Budget:..............$1,300,064.00 Total Project Budget Surplus:..............................................................................$158,102.12

Any remaining project budget surplus funds will be unencumbered and returned to the originating Measure H Funds.

ATTACHMENTS:

1. Fiber Slurry Seal Project - Aerial Map

2. DRYCO's NOC - Recording Original (Word)

RECORDING REQUESTED BY:

CITY OF HANFORD

When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION
TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: Various Locations within the City of Hanford City limits.

2. The Improvement is particularly described as: FY 24-25 Pavement Resurfacing Treatment (Single and Double Fiberized Slurry Overlay) Project

3. The date of completion of the work of Improvement: December 19, 2025.

4. The Owner of the work of Improvement: City of Hanford.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: DRYCO Construction

7. The surety for the work of Improvement: Travelers Casualty and Surety Company of America; Bond #108218627

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of the City of Hanford on: January 20, 2026.

I certify under penalty of perjury that the foregoing is true and correct.

Dated this 20th day of January 2026.

BY: ________________________________________
Mark Kairis, Mayor
City of Hanford, County of Kings, State of California
I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Hanford, California, this ______ day of _____________, 2026.

BY: ________________________________________
Mark Kairis, Mayor
City of Hanford, County of Kings, State of California
Authority: Section 1181 Civil Code

11.M.

AGENDA

STAFF REPORT
MEETING DATE: 1/20/2026 AGENDA SECTION:

CONSENT CALENDAR
SUBJECT:

Intent to Form Community Facilities District No. 2026-3 (Public Maintenance Services) RECOMMENDATION:

Recommendation:

Adopt Resolution No. 2026-03-R Declaring its intention to establish City of Hanford Community Facilities District No. 2026-3 (Public Maintenance Services) and to authorize the levy of a special tax therein to finance certain services.

Recommended Motion:

I motion that Council adopt Resolution No. 2026-03-R Declaring its intention to establish City of Hanford Community Facilities District No. 2026-3 (Public Maintenance Services) and to authorize the levy of a special tax therein to finance certain services.

BACKGROUND:

The project Lunaria (the “Project”) is a planned residential development within the City of Hanford (the “City”) that includes 457 single-family residential lots, internal roads, a drainage retention basin, and a 5.82-acre park.

The attached resolution will begin the proceedings to form Community Facilities District 2026-3 (Public Maintenance Services) (“CFD 2026-3”). The conditions of development of the Project require it to be part of a CFD to provide funding to offset the increased cost of public services created due to new development for landscaping maintenance, lighting maintenance, drainage maintenance, citywide street maintenance, and citywide park maintenance.

To fund the impact of new development on the City’s public services, staff recommends that the City Council consider establishing CFD 2026-3 (Public Maintenance Services), a Mello-Roos Community Facilities District, by adopting a Resolution of Intent to form the district, with the intention that future development within the City may annex into this district, at the City’s discretion. The special taxes collected from the property owners within the proposed CFD 2026-3 are to be used for the funding of landscaping maintenance, lighting maintenance, drainage maintenance, citywide street maintenance, and citywide park maintenance.

The Project proposed for inclusion in the CFD 2026-3 is currently Phase 1A and Phase 1B owned by