In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
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To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue fund, and the required pension and OPEB schedules on pages 5-16 and 101-110 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are presented for purposes of additional analysis and are not required parts of the basic financial statements.
The budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, The budgetary comparison schedule for the streets capital project fund, the combining and individual nonmajor governmental fund statements, the budgetary comparison schedules for the nonmajor governmental funds and the combining General Fund Activities, Water Fund Activities, Sewer Fund Activities, Electric Fund Activities, Internal Service Funds, and Fiduciary Funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 Item 6.c
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To the Honorable Mayor and Members of the City Council
of the City of Healdsburg
Healdsburg, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 5, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Badawi & Associates, CPAs
Emeryville, California
February 5, 2026
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
As management of the City of Healdsburg (“City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the accompanying Independent Auditor’s Report, the financial statements, and the accompanying notes to the financial statements.
Financial Highlights
Total City assets exceeded liabilities by $279.82 million (net position) at June 30, 2025, an increase of $25.64 million, or 10.09% over the prior fiscal year net position. The City’s current fiscal year change in net position of $25.64 million was 69.79% greater than the prior fiscal year change in net position of $15.10 million. Citywide revenues increased $17.78 million from the previous fiscal year while expenses increased $6.20 million.
The revenue increases were driven by an $8.18 million increase in charges for services, $7.81 million increase in capital grants and contributions, $1.34 million increase in use of money and property largely related to interest earnings, $753 thousand increase in sales and use taxes, $575 thousand increase in property and other taxes, $485 thousand increase in transient occupancy taxes offset by a $1.17 million decrease in operating grants and contributions. The increase in charges for services was largely associated with the scheduled utility rate increases for Electric, Water and Sewer Services. Charges for services increased for Electric, Water and Sewer by $4.33 million, $4.55 million, and $1.02 million respectively. The utility increases were offset by decreases in Airport and Governmental charges for services of $778 thousand and $934 thousand respectively.
The apparent decline in Airport charges for services reflects that the prior year included capital projects that were completed and no projects were completed in the current year. The decline in Governmental activities was due to small declines in community development and community service revenue.
Capital grants and contributions during the current fiscal year totaled $16.75 million, compared to $8.94 million in the prior year, representing an increase of $7.81 million.
The major contributors to the current-year total include $4.40 million in donations toward the construction of the Foley Family Community Pavilion, $6.03 million in newly constructed public improvements contributed from the Mill District Subdivision, $1.15 million in developer contributions for Phase 1 of the Saggio Hills affordable housing project, $1.50 million in vehicles largely associated with the purchase of a new Fire Truck, and $1.09 million in new Electric infrastructure predominantly at the Mill District and North Village developments. Additional smaller contributions from grants and developers supported various capital projects that were predominant in the prior year through completion in the current year including the Fitch Mountain Park and Open Space Preserve and Fire Substation. Operating grants and contributions during the current fiscal year totaled $2.09 million, compared to $3.26 million in the prior year, representing a decrease of $1.17 million. The decline was primarily attributable to one-time revenues received in the prior fiscal year.
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
The expense increase of $6.20 million was comprised of governmental activities totaling $5.39 million and business type activities totaling $814 thousand. The increase in governmental activity expenses was driven by $4.24 million in public safety activity and $1.45 million in community service activity, offset by a $308 thousand decrease in general government activity. The increase in business type activity expenses was driven by $1.41 million in electric fund activity and $435 thousand in water fund activity, offset by a $935 thousand decrease in airport fund activity. The increases in both governmental and businesstype expenses were primarily the result of large project expenditures completed during the current year, most notably the Fire Substation and Fitch Mountain Open Space Preserve, as well as ongoing projects, such as the Foley Community Pavilion and the Municipal Recycled Water Pipeline.
At the close of fiscal year 2024-25, City governmental funds reported combined ending fund balance of $37.98 million, an increase of $3.04 million or 8.69% from the prior fiscal year.
Overview of the Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information in addition to the basic financial statements themselves.
REQUIRED COMPONENTS OF THE ANNUAL FINANCIAL REPORT
0 Summary Detail
Government-wide Financial Statements. The government-wide financial statements are comprised of the Statement of Net Position and Statement of Activities. These two statements are designed to provide readers with a broad overview of the City’s finances utilizing the full accrual method of accounting, in a manner similar to a private-sector business. Under the full accrual method of accounting, transactions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g. uncollected revenues and accrued but unpaid interest expense).
The Statement of Net Position presents information on all of the City’s assets and liabilities, including capital assets and long-term liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of 6 Item 6.c
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
whether the financial position of the City as a whole is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. Functional activities are highlighted in this statement, whereby direct and indirect functional costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support.
Both the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development and housing, community services and streets capital projects. The business-type activities of the City include the water, sewer and electric utilities, and other programs.
Fund Financial Statements. The fund financial statements focus on current available resources and are organized and operated on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
The City adopts an annual appropriated budget for all governmental and proprietary funds.
Budgetary comparison statements for the General Fund and all major special revenue funds are required and included in the basic financial statements. The Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – General Fund on page 101, reflect both the original and final budget figures for the General Fund. Additionally, budgetary schedules for the other governmental funds have been provided as required to demonstrate compliance with the budget.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, the governmental funds financial statements utilize the modified accrual method of accounting, which focuses on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.
The City maintains twenty-three individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Community Services, and Capital Projects as they are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of supplementary combining statements.
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges outside customers, or internal departments of the City. Proprietary funds provide the same type of information as shown in the government-wide statements, only in more detail. The City maintains the following two types of proprietary funds:
Enterprise Funds. These funds are used to report the same functions presented as businesstype activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of water, sewer, electric, and airport. Internal Service Funds. These funds are used to report activities that provide internal services for the City. The City uses internal service funds to account for its insurance and benefits, vehicle maintenance, information systems, and building maintenance. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the government-wide and fund financial statements.
Other Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents combining statements referred to earlier in connection with other governmental funds and the internal service funds. Also included are the budgetary comparison Statement of Revenues, Expenditures, and Changes in Fund Balances for all other special revenue funds, capital project funds and all debt service funds.
Government-Wide Financial Analysis. Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed net position for both governmental and business-type activities.
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
By far the largest portion of the City’s net position (78.33%) reflects its net investment in capital assets (e.g. land, buildings, utility plants, machinery, equipment, vehicles, and infrastructure), net of any related outstanding debt used to acquire those assets. The City uses these assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves are not normally used to liquidate these liabilities.
Another portion of the City’s net position ($37.39 million or 13.36%) represents resources that are subject to external restrictions on how they may be used, noted above as restricted.
The following table reflects the change in net position for both governmental and business-type activities.
ASSETS 2025 2024 2025 2024 2025 2024
Current and other assets $ 66,974,104 $ 59,383,660 $ 53,186,597 $ 45,302,937 $ 120,160,701 $ 104,686,597 Capital assets 132,692,888 122,445,549 106,938,013 103,103,093 239,630,901 225,548,642 Total assets 199,666,992 181,829,209 160,124,610 148,406,030 359,791,602 330,235,239
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts on Refundings - - 547,397 602,136 547,397 602,136 Deferred Pension Related Items 10,232,261 13,634,088 3,259,809 5,295,785 13,492,070 18,929,873 Deferred OPEB Related Items 101,487 104,889 45,292 70,995 146,779 175,884 Total deferred outflows 10,333,748 13,738,977 3,852,498 5,968,916 14,186,246 19,707,893
LIABILITIES
Current Liabilities 14,354,393 13,672,228 4,842,129 5,239,071 19,196,522 18,911,299 Long-term liabilities 41,582,743 38,469,879 31,337,976 35,636,212 72,920,719 74,106,091 Total liabilities 55,937,136 52,142,107 36,180,105 40,875,283 92,117,241 93,017,390
DEFERRED INFLOWS OF RESOURCES
Lease 450,818 286,420 - - 450,818 286,420
Deferred Pension Related Items 762,772 1,332,265 344,142 749,374 1,106,914 2,081,639 Deferred OPEB Related Items 331,438 224,971 147,915 152,281 479,353 377,252 Total deferred inflows 1,545,028 1,843,656 492,057 901,655 2,037,085 2,745,311
NET POSITION
Net Investment
in Capital Assets 132,179,216 122,297,964 87,012,968 81,619,006 219,192,184 203,916,970 Restricted 19,947,857 18,150,194 17,446,901 17,792,791 37,394,758 35,942,985 Unrestricted 391,503 1,134,255 22,845,077 13,186,211 23,236,580 14,320,466 Total net position $ 152,518,576 $ 141,582,413 $ 127,304,946 $ 112,598,008 $ 279,823,522 $ 254,180,421
NET POSITION
June 30, 2025 and 2024
Governmental Activities Business-type Activities Total Government 9 Item 6.c
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
The Change in Net Position shows how the government’s net position changed during fiscal year 2024-25 as compared to fiscal year 2023-24. The City’s current fiscal year change in net position of $25.64 million, compared to the prior fiscal year change in net position of $15.10 million, resulting in an increase of $10.54 million (69.79%).
Governmental Activities. Net Governmental activities (before transfers) increased $1.46 million during the fiscal year ended June 30, 2025. Revenue increased $6.84 million or 15.50%, and expenses increased $5.36 million or 16.08%. Factors contributing to the current fiscal year increase in revenue include:
Capital grants and contributions increased $6.67 million Sales and use tax increased $753 thousand
Use of money and property increased $655 thousand
2025 2024 2025 2024 2025 2024 PROGRAM REVENUES
Charges for Services $ 3,886,695 $ 4,820,219 $ 43,972,476 $ 34,854,058 $ 47,859,171 $ 39,674,277 Operating Grants and Contributions 2,088,860 3,263,373 - 2,088,860 - 3,263,373 Capital Grants and Contributions 13,583,654 6,915,053 3,167,006 2,026,319 16,750,660 8,941,372
GENERAL REVENUES
Property and Other Taxes 4,094,856 3,520,106 - 4,094,856 - 3,520,106 Sales and Use Taxes 9,879,349 9,126,222 - 9,879,349 - 9,126,222 Motor Vehicle in Lieu 2,115,417 2,011,172 - 2,115,417 - 2,011,172 Franchise Fees 822,899 846,932 - - 822,899 846,932
Business License Taxes 388,674 314,129 - - 388,674 314,129 Transient Occupancy Taxes 9,852,248 9,367,408 - 9,852,248 - 9,367,408 Cannabis Business Tax 73,192 - - - 73,192 - Use of Money and Property 2,928,803 2,273,836 2,088,268 1,404,420 5,017,071 3,678,256 Other Revenues (Misc) 1,273,219 1,688,068 - 1,273,219 - 1,688,068 TOTAL REVENUES $ 50,987,866 $ 44,146,518 $ 49,227,750 $ 38,284,797 $ 100,215,616 $ 82,431,315
EXPENSES
Governmental Activities
General Government $ 5,658,052 $ 6,348,178 $ - $ 5,658,052 - $ $ 6,348,178 Public Safety 18,402,061 14,158,629 - 18,402,061 - 14,158,629 Community Development 2,371,229 2,250,564 - 2,371,229 - 2,250,564 Community Services 8,956,079 7,505,885 - 8,956,079 - 7,505,885 Streets and Roads 3,479,437 3,224,688 - 3,479,437 - 3,224,688 Interest on Long Term Debt 9,941 3,560 - - 9,941 3,560
Business Type Activities Water - 6,383,646 - 5,948,010 6,383,646 5,948,010 Sewer - 10,409,779 - 10,506,689 10,409,779 10,506,689
Electric - 17,362,787 - 15,951,109 17,362,787 15,951,109 Non-Major Enterprise Funds (Airport) - - 495,227 1,431,216 495,227 1,431,216 TOTAL EXPENSES $ 38,876,799 $ 33,491,504 $ 34,651,439 $ 33,837,024 $ 73,528,238 $ 67,328,528
EXCESS (DEFICIENCY)OF REVENUES
OVER EXPENSES BEFORE TRANSFERS $ 12,111,067 $ 10,655,014 $ 14,576,311 $ 4,447,773 $ 26,687,378 $ 15,102,787 Transfers
Transfers In (Out) $ (130,627) $ 141,459 $ 130,627 $ (141,459) $ - $ - TOTAL TRANSFERS $ (130,627) $ 141,459 $ 130,627 $ (141,459) $ - $ - CHANGE IN NET POSITION $ 11,980,440 $ 10,796,473 $ 14,706,938 $ 4,306,314 $ 26,687,378 $ 15,102,787 NET POSITION JULY 1 141,582,413 130,785,940 112,598,008 108,291,694 254,180,421 239,077,634 RESTATEMENT OF NET POSITION (1,044,277) - - - (1,044,277) - NET POSITION JUNE 30 $ 152,518,576 $ 141,582,413 $ 127,304,946 $ 112,598,008 $ 279,823,522 $ 254,180,421
CHANGE IN NET POSITION
FOR THE FISCAL YEARS ENDED JUNE 30, 2025 and 2024
Government Activities Business-Type Activities Totals
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Property and other taxes increased $575 thousand
Transient occupancy tax increased $485 thousand
Other revenue decreased $415 thousand
Charges for services decreased $933 thousand
Operating grants and contributions decreased $1.17 million The chart below reflects information from the Statement of Activities, page 11 of the Financial Statements. The 2 largest revenue sources for governmental activities are capital grants & contributions (26.64%), and transient occupancy tax (19.32%), followed by sales and uses taxes (19.38%) and property taxes (12.18%).
REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2025
As for expenditures, public safety expenses including both police and fire services are the most significant (47.33%) of all governmental activity expenses, followed by community services (23.04%), general government (14.45%), streets and roads (8.95%) and community development (6.10%). Interest on long term debt is 0.03% of the total expenses for governmental activities. The chart below reflects information from the Financial Statements, Statement of Activities on page
22. Property Taxes
12.18%
Franchise Fees
1.61%
Sales & Use Taxes
19.38%
Transient
Occupancy Taxes
19.32%
Business License
Taxes
0.76%
Cannabis
BusinessTax
0.14%
Use of Money and
Property
5.74%
Capital Grants &
Contributions
26.64%
Other Revenues
(Misc.)
2.51%
Charges for Services
7.62% Operating Grants &
Contributions
4.10%
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
EXPENSES BY FUNCTION/PROGRAM – GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2025
The chart below is a side-by-side comparison of program expenses and revenue for governmental activities. For the fiscal year 2024-2025, program expenses exceeded program revenues for all governmental activity programs except for Community Development and Streets and Roads.
Community Development revenue exceeded expense by $108k and Streets and Roads revenue exceeded expense by $219k.
COMPARISON OF EXPENSES AND PROGRAM REVENUES
GOVERNMENTAL ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2025
General
Government
14.55%
Public Safety
47.33%
Community
Development
6.10%
Community
Services
23.04%
Streets and Roads
8.95%
Interest on LongTerm Debt
0.03%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
General
Government
Public Safety Community
Development
Community
Services
Streets and
Roads
Interest on
Long-Term Debt
Program Revenues Expenses
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Business-Type Activities. As of June 30, 2025, the total net position of business-type activities was $127.30 million.
Total revenue of $49.23 million is mainly comprised of charges for services of $43.97 million, capital grants and contributions of $3.17 million, and use of money and property of $ 2.09 million representing interest earnings on investments. The capital grants and contributions are associated largely with the Mill District Subdivision contributed capital ($1.71 million), Mill District Electric Development ($704 thousand), as well as various smaller development projects ($751 thousand). Revenue exceeded operating expenses of $34.65 million, resulting in a current fiscal year net position increase of $14.71 million.
REVENUES BY SOURCE – BUSINESS-TYPE ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2025
The chart below is a side-by-side comparison of program expense and revenue for business-type activities. For the fiscal year 2024-25, program revenue exceeded program expenses for Water, Sewer, and Electric Fund.
EXPENSES AND PROGRAM REVENUES
BUSINESS-TYPE ACTIVITIES
FOR FISCAL YEAR ENDED JUNE 30, 2025
Charges for Service
89.32%
Capital Grants &
Contributions
6.44%
Investment
Earnings
2.20%
$-
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Water Sewer Electric Non-major
Enterprise Funds
Program Revenues Expenses
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Governmental Funds. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of June 30, 2025, the City’s governmental funds balance sheet on page 27, reported total ending fund balances of $37.98 million, an increase of $3.04 million from the prior fiscal year.
Approximately 25.64% of the total ending fund balances ($9.74 million) is unassigned and available for spending in the future at the government’s discretion. It is important to note that in the General Fund a significant portion of the unassigned fund balance is specifically held as an operating reserve to support essential services programs during periods of economic downturn or unforeseen catastrophic events. The remaining fund balance is classified as non-spendable, restricted, committed, or assigned. The most significant of these reserved fund balances are restricted for affordable housing ($10.33 million), pension stabilization ($6.11 million), community services ($4.40 million), and streets and roads ($3.39 million).
General Fund revenues were $1.86 million (6.98%) less than in the prior fiscal year, and while expenditures remained relatively consistent, decreasing by only $178 thousand (0.78%). The decrease in revenues was primarily attributable to a $2.55 million reduction in other revenues, donations and reimbursements, partially offset by increases in property tax of $525 thousand and use of money and property of $251 thousand. In the prior fiscal year other revenues, donations and reimbursements were higher than usual due to a one-time developer contribution of $3.4 million for the construction of the Fire Substation.
Proprietary Funds. The City’s proprietary funds Revenues, Expenses, and Changes in Net Position, page 34, provide the same type of information found in the government-wide financial statements, but in more detail. The City’s major enterprise funds are Water, Sewer, and Electric.
The major changes in enterprise net position are an increase in the Water Fund of $6.73 million to $30.85 million, an increase in the Sewer Fund of $2.23 million to $48.87 million and an increase in the Electric Fund of $5.83 million to $43.31 million.
The Internal Service Funds had an increase in net position of $2.20 million during the fiscal year, ending with a net position of $11.55 million. This increase is attributable to contributions and transfers of $1.50 million and an operating gain of $698 thousand, largely driven by investment income and the sale of fixed assets. The operating revenue is made up of the service fees charged to each operating fund.
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities at June 30, 2025, amounted to $239.63 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment, vehicles, infrastructure, and construction in progress. Depreciation expenses for the fiscal year 2024-2025 14 Item 6.c
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Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
totaled $8.83 million.
Additional information on the City’s capital assets can be found in Note 8 of the basic financial statements.
Long-Term Liabilities. The City’s outstanding long-term liabilities, including bonds, loans payable, net pension liability, claims, capital leases, OPEB, and compensated absences totaled $72.92 million at June 30, 2025. Of this total, $41.58 million (57.02%) was in governmental activities and $31.34 million (42.98%) was in business-type activities.
Additional information on the City’s long-term liabilities can be found in Notes 10-14 of the basic financial statements.
2025 2024 2025 2024
Land and Land Rights $ 20,193,298 $ 20,193,298 $ 1,245,877 $ 1,245,877 Right of Way 6,681,379 6,681,379 - - Construction in Progress 9,572,935 9,941,579 8,516,131 4,000,830 Land Improvements 10,118,621 5,110,696 - - Streets 80,605,907 78,256,928 - - Buildings 48,145,245 40,852,249 3,040,870 3,040,870 Machinery and Equipment 13,356,586 13,080,894 3,974,362 3,675,410 Infrastructure 1,515,614 1,515,614 - - Utility Systems - - 145,580,466 142,776,154 Drainage - - 12,426,958 12,064,263
Operations - - 4,866,912 4,866,913
Lease Assets 261,242 151,864 - - Total $ 190,450,827 $ 175,784,500 $ 179,651,576 $ 171,670,317 Less Accumulated Depreciation (58,097,330) (53,566,563) (72,713,563) (68,567,223) Net Capital Assets $ 132,353,497 $ 122,217,937 $ 106,938,013 $ 103,103,094 Governmental Activities Business-type Activities
Long-Term Liabilities
Footnote 10
2025 2024 2025 2024
Net Pension Liability 36,499,421 34,807,395 11,628,038 13,756,857 Certificates of Participation - - 910,000 1,070,000
HUSD Capital Lease Payable - - - - Equipment Finance Purchase - - - - Revenue Bonds - - 17,406,836 19,157,219 Compensated Absences 3,083,939 1,706,698 - - Successor Agency Payable 957,988 1,063,108 1,092,565 1,212,452 Capital Leases 172,689 24,225 - - Claims Payable 195,145 218,319 - - OPEB 673,561 650,134 300,537 439,684 Total 41,582,743 $ 38,469,879 $ 31,337,976 $ 35,636,212 Governmental Activities Business-type Activities
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CITY OF HEALDSBURG
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The financial outlook of the City is cautiously optimistic as it continues to operate in an uncertain economic environment. Although inflation in the San Francisco Bay Area had eased to 1.5% in June 2025, the federal funds target rate remained elevated at 4.25%–4.50%, continuing to place upward pressure on borrowing costs and constraining both public financing and private investment activity.
Sales tax, transient occupancy tax, and property tax all increased from the prior year. Of the three, property tax is considerably more stable and is projected to continue increasing with anticipated development. Interest earnings are expected to remain meaningful due to strong market performance and a sound investment strategy.
In the prior year, City Council approved a series of rate increases for Water, Sewer, and Electric utilities, providing an ongoing path forward toward meaningful investment in capital infrastructure and long-term operating stability. The upcoming budget includes several large capital projects, funded in large part by grants and developer contributions. The City remains committed to evaluating its governmental practices, identifying opportunities for greater operational efficiencies, and ensuring the best possible utilization of taxpayer-provided resources.
The City prepares a biennial budget focused on long-term financial viability, allowing decisionmakers to understand the ongoing impacts of current policy decisions. Through the budget process, the City Council sets the direction of the City by allocating resources and establishing priorities.
The biennial budget process for fiscal years 2026–27 and 2027–28 will begin in February 2026.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Katie Edgar, Finance Director, City of Healdsburg, [email protected] or at 401 Grove Street, Healdsburg, CA 95448-4723. 16 Item 6.c
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BASIC
FINANCIAL STATEMENTS
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GOVERNMENT-WIDE
FINANCIAL STATEMENTS
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City of Healdsburg
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 39,425,147 $ 32,471,493 $ 71,896,640 Cash and investments with fiscal agent 344,200 290 344,490 Pension stabilization investments 6,113,865 2,581,222 8,695,087 Investment in NCPA Reserves 5,982,662 - 5,982,662
Accounts receivable 5,989,848 5,332,556 11,322,404
Loans and notes receivable 11,835,748 11,835,748 -
Interest receivable 180,850 179,679 360,529
Intergovernmental receivable 3,127,808 2,336,963 5,464,771 Lease receivable 123,062 - 123,062
Internal balances (1,509,258) 1,509,258 -
Inventory 24,953 2,792,474 2,817,427
Prepaid items 1,317,881 1,317,881 -
Total current assets 66,974,104 53,186,597 120,160,701
Noncurrent assets:
Lease receivable 339,391 - 339,391
Capital assets:
Nondepreciable 36,447,612 9,762,008 46,209,620
Depreciable 154,003,215 169,889,568 323,892,783
Less accumulated depreciation (58,097,330) (72,713,563) (130,810,893) Total noncurrent assets 132,692,888 106,938,013 239,630,901 Total assets 199,666,992 160,124,610 359,791,602
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 547,397 547,397
Pension related 10,232,261 3,259,809 13,492,070
OPEB related 101,487 45,292 146,779
Total deferred outflows of resources 10,333,748 3,852,498 14,186,246 Primary Government
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
Primary Government
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 4,857,135 1,124,488 5,981,623 Retentions payable 291,998 276,606 568,604
Interest payable - 186,909 186,909
Unearned revenue 7,554,109 907,814 8,461,923
Deposits payable 571,437 334,405 905,842
Compensated absences - due within one year 818,768 - 818,768 Claims and judgements - due within one year 77,802 - 77,802 Other post-employment benefits liability - due within one year 29,039 13,020 42,059 Other long-term liabilities - due within one year 154,105 1,998,887 2,152,992 Total current liabilities 14,354,393 4,842,129 19,196,522 Noncurrent liabilities:
Compensated absences, due in more than one year 3,083,939 3,083,939 - Claims payable, due in more than one year 195,145 - 195,145 Net pension liability 36,499,421 11,628,038 48,127,459
Other long-term liabilities, due in more than one year 1,130,677 19,409,403 20,540,080 Other post-employment benefits liability 673,561 300,537 974,098 Total noncurrent liabilities 41,582,743 31,337,978 72,920,721 Total liabilities 55,937,136 36,180,107 92,117,243
DEFERRED INFLOWS OF RESOURCES
Lease 450,818 - 450,818
Pension related 762,772 344,142 1,106,914
OPEB related 331,438 147,915 479,353
Total deferred inflows of resources 1,545,028 492,057 2,037,085
NET POSITION
Net investment in capital assets 132,179,216 87,012,966 219,192,182 Restricted for:
Lighting and landscaping 620,027 - 620,027
Capital projects 455,969 17,446,901 17,902,870
Community services 4,392,719 4,392,719 -
Nonexpendable permanent endowments 344,200 - 344,200
Debt service 168,623 - 168,623
Streets and roads 3,388,446 3,388,446 -
Public safety 252,516 - 252,516
Housing 10,325,357 10,325,357 -
-
Total restricted 19,947,857 17,446,901 37,394,758
Unrestricted 391,503 22,845,077 23,236,580
Total net position $ 152,518,576 $ 127,304,944 $ 279,823,520 21 Item 6.c
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City of Healdsburg
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:
General government $ 5,658,052 $ 317,738 $ 2,655,315 - $ Public safety 18,402,061 751,878 569,753 665,725
Streets and roads 3,479,437 436,499 324,250 2,938,088
Community development 2,371,229 1,634,874 844,520 -
Community services 8,956,079 745,706 350,337 7,324,526
Interest and fiscal charges 9,941 - - -
Total governmental activities 38,876,799 3,886,695 2,088,860 13,583,654 Business-type Activities:
Water 6,383,646 12,287,588 546,792 -
Sewer 10,409,779 10,502,555 1,187,368 -
Electric 17,362,787 20,789,872 1,432,846 -
Airport 495,227 392,459 - -
Total business-type activities 34,651,439 43,972,474 3,167,006 - Total primary government $ 73,528,238 $ 47,859,169 $ 2,088,860 $ 16,750,660 General Revenues:
Taxes:
Transient occupancy taxes
Sales taxes
Property taxes
Franchise taxes
Business license taxes
Cannabis business tax
Motor vehicle in lieu, unrestricted
Use of money and property
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Restatements
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
Net position - beginning of year, as
previously presented
See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Total Activities Activities Total
$ 2,973,053 $ (2,684,999) $ (2,684,999) - $
1,987,356 (16,414,705) (16,414,705) -
3,698,837 219,400 219,400 -
2,479,394 108,165 108,165 -
8,420,569 (535,510) (535,510) -
- (9,941) - (9,941)
19,559,209 (19,317,590) (19,317,590) -
12,834,380 6,450,734 - 6,450,734
11,689,923 1,280,144 - 1,280,144
22,222,718 4,859,931 - 4,859,931
392,459 (102,768) - (102,768)
47,139,480 12,488,041 - 12,488,041
$ 66,698,689 (19,317,590) 12,488,041 (6,829,549)
9,852,248 9,852,248 -
9,879,349 9,879,349 -
4,094,856 4,094,856 -
822,899 822,899 -
388,674 388,674 -
73,192 - 73,192
2,115,417 2,115,417 -
2,928,803 2,088,268 5,017,071
1,273,219 1,273,219 -
(130,627) 130,627 -
31,298,030 2,218,895 33,516,925
11,980,440 14,706,936 26,687,376
141,582,413 112,598,008 254,180,421
(1,044,277) (1,044,277) -
140,538,136 112,598,008 253,136,144
$ 152,518,576 $ 127,304,944 $ 279,823,520
and Changes in Net Position
Net (Expense) Revenue
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FUND
FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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City of Healdsburg
Balance Sheet
Governmental Funds
June 30, 2025
Special
Revenue
Fund
Capital
Projects Fund Nonmajor Total
Community Governmental Governmental
Services Streets Funds Funds
ASSETS
Cash and investments $ 9,715,133 $ 11,956,343 $ 1,911,731 $ 4,705,907 $ 28,289,114 Cash and investments with fiscal agents - - 344,200 - 344,200 Pension stabilization investments 5,380,324 527,987 205,554 6,113,865 - Accounts receivable 1,199,812 4,372,480 19,158 315,333 5,906,783 Loans and notes receivable 1,199,779 - 10,632,389 - 11,832,168 Interest receivable 57,631 66,361 10,197 17,999 152,188 Intergovernmental receivable 2,248,166 111,806 280,014 487,821 3,127,807 Lease receivable 386,468 75,985 - 462,453 -
Due from other funds 531,579 - 471,064 - 1,002,643
Inventory - 10,585 - 10,585 -
Prepaid items 9,073 12,360 - 21,433 -
Total assets $ 20,727,965 $ 17,123,322 $ 2,437,239 $ 16,974,713 $ 57,263,239
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 671,976 $ $ 2,693,609 $ 176,831 $ 69,864 $ 3,612,280 Due to other funds 471,065 108,552 - 119,275 698,892
Deposits payable 512,253 47,264 6,264 5,656 571,437
Retention payable 290,080 - 1,918 291,998 -
Unearned revenue 6,867,960 711 182,365 503,073 7,554,109 Advances from other funds 1,813,008 - - 1,813,008 -
Total liabilities 3,469,013 9,898,913 475,930 697,868 14,541,724 Deferred Inflows of Resources
Lease 375,437 75,381 - 450,818 -
Unavailable revenue - others 2,218,036 - - 2,218,036 -
Unavailable revenue - interest - - 2,070,641 - 2,070,641 Total deferred inflows of resources 375,437 2,293,417 2,070,641 - 4,739,495 Fund Balances:
Nonspendable 1,208,852 12,360 10,585 344,200 1,575,997
Restricted 5,380,324 4,918,632 1,950,724 13,975,288 26,224,968 Committed 41,717 - - 41,717 -
Assigned 399,042 - - 399,042 -
Unassigned 9,853,580 - (113,284) - 9,740,296
Total fund balances 16,883,515 4,930,992 1,961,309 14,206,204 37,982,020 Total liabilities, deferred inflows of
resources and fund balances $ 20,727,965 $ 17,123,322 $ 2,437,239 $ 16,974,713 $ 57,263,239 General
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 37,982,020 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:
GovernmentWide
Statement of
Net Position
Internal
Service
Funds Total
Nondepreciable $ 36,447,612 $ (91,686) $ 36,355,926
Depreciable, net 95,905,885 (4,539,281) 91,366,604
Total capital assets $ 132,353,497 $ (4,630,967) 127,722,530 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 11,550,940
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 4,288,677
In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.
GovernmentWide
Statement of
Net Position
Internal
Service
Funds
Deferred outflows of resources related to pension $ 10,232,261 $ - 10,232,261 Deferred outflows of resources related to OPEB 101,487 - 101,487 Deferred inflows of resources related to pension (762,772) - (762,772) Deferred inflows of resources related to OPEB (331,438) - (331,438) Long-term liabilities were not due and payable in the current period.
Therefore, they were not reported in the Governmental Funds Balance Sheet.
GovernmentWide
Statement of
Net Position
Internal
Service
Funds Total
Compensated absences - due within one year $ (818,768) $ 818,768 $ - Compensated absences - due in more than one year (3,083,939) 3,083,939 - Long-term debt - due within one year (154,105) 48,985 (105,120) Long-term debt - due in more than one year (1,130,677) 172,689 (957,988) Net pension liability (36,499,421) (36,499,421) -
OPEB liability - due within one year (29,039) (29,039) - OPEB liability - due in more than one year (673,561) (673,561) - Total long-term liabilities $ (42,389,510) $ 4,124,381 (38,265,129)
Net Position of Governmental Activities $ 152,518,576
Amounts reported for governmental activities in the statement of net position are different because:
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Special
Revenue
Fund
Capital
Projects Fund Nonmajor Total
Community Governmental Governmental
Services Streets Funds Funds
REVENUES:
Property taxes $ 5,800,927 $ - $ 409,346 - $ $ 6,210,273 Sales and other taxes 10,969,378 7,201,740 218,649 2,164,730 20,554,497 Development fees 79,858 95,734 195,849 8,299 379,740
Intergovernmental 2,028,084 973,348 276,394 632,835 3,910,661 Fines and forfeitures 69,274 - - - 69,274
Licenses and permits 1,986,090 - - - 1,986,090
Use of money and property 1,211,297 690,102 119,035 252,399 2,272,833 Charges for services 1,076,679 675,019 13,155 - 1,764,853 Other, donations, and reimbursements 1,562,719 4,739,798 236,892 223,786 6,763,195 Total revenues 24,784,306 14,375,741 1,059,974 3,691,395 43,911,416 EXPENDITURES:
Current:
General government 7,205,246 - - - 7,205,246
Public safety 14,653,492 - - 339,360 14,992,852
Streets and roads - - 2,416,511 2,700 2,419,211
Community development 799,591 - - 1,069,202 1,868,793
Community services - 14,148,804 - - 14,148,804
Debt service:
Principal retirement - - - 104,858 104,858
Interest and fiscal charges - - - 2,920 2,920
Total expenditures 22,658,329 14,148,804 2,416,511 1,519,040 40,742,684
REVENUES OVER (UNDER)
EXPENDITURES 2,125,977 226,937 (1,356,537) 2,172,355 3,168,732 OTHER FINANCING SOURCES (USES):
Transfers in 287,270 - 1,911,367 122,647 2,321,284
Transfers out (1,756,045) (122,647) (573,219) - (2,451,911) Total other financing sources (uses) (1,468,775) (122,647) 1,911,367 (450,572) (130,627) Net change in fund balances 657,202 104,290 554,830 1,721,783 3,038,105 FUND BALANCES:
Beginning of year 16,226,313 4,826,702 1,406,479 12,484,421 34,943,915 End of year $ 16,883,515 $ 4,930,992 $ 1,961,309 $ 14,206,204 $ 37,982,020 General
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ 3,038,105 Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 7,753,375 Donated capital assets was reported in the Government-Wide Statement of Activities as revenues, whereas, donated capital assets was not reported as revenues in the governmental funds 6,030,857
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (3,268,160) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position.
Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Long-term debt repayments 104,858
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 3,623,795 Pension income/(expense) is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (8,148,156)
OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (143,635)
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 786,832
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 2,202,569
Change in Net Position of Governmental Activities $ 11,980,440 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities -
Non-major Internal Service
Airport Fund Totals Funds
ASSETS
Current Assets:
Cash and investments $ 4,219,970 $ 10,619,641 $ 17,183,805 $ 448,077 $ 32,471,493 $ 11,136,033 Cash and investments
with fiscal agents 46 244 - - 290 -
Pension stabilization investments 616,635 904,020 1,060,567 2,581,222 - - Investment in NCPA reserves - 5,982,662 - 5,982,662 - - Accounts receivable 1,367,927 1,521,054 2,422,709 20,866 5,332,556 83,065 Loans and notes receivable - - - - - 3,580
Interest receivable 23,903 58,693 94,736 2,347 179,679 28,662 Intergovernmental receivable 2,273,984 - - 62,979 2,336,963 - Due from other funds 1,926,810 255,435 15,000 2,197,245 - - Inventory 90,658 19,538 2,649,318 32,960 2,792,474 14,368 Total current assets 10,519,933 13,378,625 29,408,797 567,229 53,874,584 12,562,156 Noncurrent:
Advances to other funds 906,504 - 906,504 1,813,008 - - Capital assets:
Land 310,781 766,902 48,360 119,834 1,245,877 -
Construction in progress 7,398,331 416,251 638,567 62,982 8,516,131 91,686 Depreciable buildings and
improvements 1,443,869 258,359 447,835 890,807 3,040,870 405,339 Depreciable utility systems 37,233,504 87,658,259 33,115,662 158,007,425 - - Depreciable operations - - 4,866,909 - 4,866,909 -
Depreciable equipment 719,216 2,044,039 1,001,599 209,510 3,974,364 15,817,874 Accumulated depreciation (17,261,263) (36,777,599) (16,350,079) (2,324,622) (72,713,563) (11,683,932) Net capital assets 29,844,438 54,366,211 18,901,944 3,825,420 106,938,013 4,630,967 Total noncurrent assets 29,844,438 55,272,715 19,808,448 3,825,420 108,751,021 4,630,967 Total assets 40,364,371 68,651,340 49,217,245 4,392,649 162,625,605 17,193,123
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding 547,397 - - 547,397 - - Pension related 943,629 1,029,413 1,286,767 3,259,809 - - OPEB related 14,363 17,509 13,420 - 45,292 -
Total deferred outflows
of resources 957,992 1,594,319 1,300,187 3,852,498 - -
Business-Type Activities
Water Fund Sewer Fund Electric Fund
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities -
Non-major Internal Service
Airport Fund Totals Funds
Business-Type Activities
Water Fund Sewer Fund Electric Fund
LIABILITIES
Current liabilities:
Accounts payable and
accrued liabilities 191,865 66,388 828,604 37,631 1,124,488 1,244,855 Due to other funds 1,926,810 574,185 - 2,500,995 - -
Deposits payable 10,776 2,142 301,476 20,011 334,405 -
Retention payable 276,606 - - 276,606 - -
Interest payable 38,640 145,238 3,031 186,909 - -
Unearned revenue 840,816 - 4,019 62,979 907,814 -
Bonds payable - current 644,000 1,235,000 - 1,879,000 - - Loans payable - current - - 119,887 119,887 - -
Lease liabilities - current - - - - - 48,985
Compensated absences - current - - - - - 818,768
OPEB liability - current 4,422 6,173 2,425 - 13,020 -
Claims payable - current - - - - - 77,802
Total current liabilities 3,933,935 2,029,126 1,259,442 120,621 7,343,124 2,190,410 Noncurrent liabilities:
Bonds payable 2,928,000 15,388,838 - 18,316,838 - -
Loan payable - 1,092,565 - 1,092,565 - -
Lease liabilities - - - - - 172,689
Compensated absences - - - - - 3,083,939
Claims payable - - - - - 195,145
Net pension liability 3,366,011 3,672,012 4,590,015 11,628,038 - - Net OPEB liability 95,016 115,040 90,481 300,537 - -
Total noncurrent liabilities 6,389,027 19,175,890 5,773,061 31,337,978 - 3,451,773 Total liabilities 10,322,962 21,205,016 7,032,503 120,621 38,681,102 5,642,183
DEFERRED INFLOWS OF RESOURCES
Pension related 99,620 108,676 135,846 344,142 - -
OPEB related 46,908 57,180 43,827 147,915 - -
Total deferred inflows
of resources 146,528 165,856 179,673 492,057 - -
NET POSITION
Net investment in capital assets 25,995,832 38,289,770 18,901,944 3,825,420 87,012,966 4,409,293 Restricted 2,191,628 8,588,093 6,667,180 17,446,901 - - Unrestricted 2,665,413 1,996,924 17,736,132 446,608 22,845,077 7,141,647 Total net position $ 30,852,873 $ 48,874,787 $ 43,305,256 $ 4,272,028 $ 127,304,944 $ 11,550,940 33 Item 6.c
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City of Healdsburg
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Non-major Internal Service
Airport Fund Totals Funds
OPERATING REVENUES:
Charges for services $ 8,146,449 $ 10,191,394 $ 18,085,119 $ 171,451 $ 36,594,413 $ 9,457,127 Development fees 176,961 290,284 9,988 6,973 484,206 -
Rental income - - 213,875 - 213,875 -
Intergovernmental 3,926,349 - 68 3,926,417 - 2,043
Other 37,829 20,877 2,694,697 2,753,563 160 47,992
Total operating revenues 12,287,588 10,502,555 20,789,872 392,459 43,972,474 9,507,162 OPERATING EXPENSES:
Purchase of power - - 4,360,317 - 4,360,317 -
Salaries and benefits 2,547,835 3,369,761 2,923,577 17,052 8,858,225 2,589,923 Maintenance and operations 1,520,584 2,432,216 7,462,478 312,968 11,728,246 4,832,803 Administration 1,270,734 1,545,847 1,936,172 23,070 4,775,823 474,681 Amortization - - - - - 49,455
Depreciation 881,242 2,445,749 677,212 142,137 4,146,340 1,413,883 Total operating expenses 6,220,395 9,793,573 17,359,756 495,227 33,868,951 9,360,745 Operating income (loss) 6,067,193 708,982 3,430,116 (102,768) 10,103,523 146,417 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 281,854 628,384 1,153,790 24,240 2,088,268 517,107 Interest expense (163,251) (616,206) (3,031) (782,488) - (7,021) Gain (loss) on sale of fixed assets - - - - - 41,921
Total nonoperating revenues (expenses) 118,603 12,178 1,150,759 24,240 1,305,780 552,007 Income before contributions
and transfers 6,185,796 721,160 4,580,875 (78,528) 11,409,303 698,424 CONTRIBUTIONS AND TRANSFERS:
Transfers in 317,065 - - 317,065 - -
Transfers out - (186,438) - (186,438) - -
Capital contributions 546,792 1,187,368 1,432,846 3,167,006 - 1,504,145 Total contributions and transfers 546,792 1,504,433 1,246,408 3,297,633 - 1,504,145 Change in net position 6,732,588 2,225,593 5,827,283 (78,528) 14,706,936 2,202,569 NET POSITION:
Beginning of year, as previously presented 24,120,285 46,649,194 37,477,973 4,350,556 112,598,008 10,392,648 Restatements - - - - (1,044,277) -
Beginning of year, as restated 24,120,285 46,649,194 37,477,973 4,350,556 112,598,008 9,348,371 End of year $ 30,852,873 $ 48,874,787 $ 43,305,256 $ 4,272,028 $ 127,304,944 $ 11,550,940 Business-Type Activities
Water Fund Sewer Fund Electric Fund
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Non-major
Internal
Service
Airport Fund Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 7,630,949 $ 10,250,903 $ 17,604,430 $ 274,928 $ 35,761,210 $ 9,499,055 Receipts from other operating activities 3,964,178 20,877 2,698,784 214,035 6,897,874 47,992 Payments to suppliers (3,612,581) (4,033,959) (13,812,246) (384,205) (21,842,991) (6,421,853) Payments to employees (2,796,462) (3,432,057) (3,228,539) (17,052) (9,474,110) (2,785,696) Net cash provided (used)
by operating activities 5,186,084 2,805,764 3,262,429 87,706 11,341,983 339,498 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund borrowing - 113,313 - 113,313 - -
Transfers in 317,065 - - 317,065 - -
Transfers out - (186,438) - (186,438) - -
Due to other funds (106,250) - - (106,250) - -
Net cash provided (used) by
non-capital financing activities 210,815 - (73,125) 137,690 - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Interest paid (169,919) (628,106) (3,330) (801,355) - (7,021) Principal payment on debt (612,000) (1,221,381) (119,588) (1,952,969) - 165,293 Cash received from sale of capital assets - - - - 41,921 - Acquisition and construction of capital assets (4,946,802) (74,412) 437,992 (62,980) (4,646,202) 421,317 Net cash provided (used) by
capital and related financing activities (5,728,721) (1,923,899) 315,074 (62,980) (7,400,526) 621,510 CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 284,835 621,459 882,058 24,291 1,812,643 514,600 Net cash provided (used) by
investing activities 284,835 621,459 882,058 24,291 1,812,643 514,600 Increase (Decrease) in cash and
cash equivalents (257,802) 1,714,139 4,386,436 49,017 5,891,790 1,475,608
CASH AND INVESTMENTS -
Beginning of Fiscal Year 5,094,453 9,809,766 13,857,936 399,060 29,161,215 9,660,425
CASH AND INVESTMENTS -
End of Fiscal Year $ 4,836,651 $ 11,523,905 $ 18,244,372 $ 448,077 $ 35,053,005 $ 11,136,033
RECONCILIATION OF CASH & CASH EQUIVALENTS
Cash and investments $ 4,219,970 $ 10,619,641 $ 17,183,805 $ 448,077 $ 32,471,493 $ 11,136,033 Cash and investments with fiscal agents 46 244 - - 290 - Pension stabilization investments 616,635 904,020 1,060,567 2,581,222 - - $ 4,836,651 $ 11,523,905 $ 18,244,372 $ 448,077 $ 35,053,005 $ 11,136,033 Business-Type Activities
Water Fund Sewer Fund Electric Fund
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City of Healdsburg
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Non-major
Internal
Service
Airport Fund Totals Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED)BY OPERATING ACTIVITIES:
Operating income (loss) 6,067,193 708,982 3,430,116 (102,768) 10,103,523 146,417 Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating) operating activities:
Depreciation and amortization 881,242 2,445,749 677,212 142,137 4,146,340 1,463,338 Changes in assets and liabilities:
(Increase) decrease in receivable (1,529,920) (232,767) (81,449) 32,232 (1,811,904) 39,885 (Increase) decrease in inventories 13,272 551 (50,523) 11,983 (24,717) 1,272 Increase (decrease) in prepaid items - - - - (1,296,448) - Increase (decrease) in deferred outflows of
resources - OPEB related 9,747 16,153 (197) 25,703 - -
Increase (decrease) in deferred outflows of
resources - pension related 621,035 535,251 879,690 2,035,976 - - Increase (decrease) in accounts payable and
accrued liabilities (1,051,917) (56,447) (2,756) (60,150) (1,171,270) 180,807 Increase (decrease) in in deposits payable (3,357) 1,992 (409,228) 1,293 (409,300) - Increase (decrease) in retention payable 217,382 - - 217,382 - - Increase (decrease) in claims payable - - - - (41,498) - Increase (decrease) in unearned revenue 840,816 - 4,019 62,979 907,814 Increase (decrease) in OPEB (54,301) (93,433) 8,587 (139,147) - - Increase (decrease) in net pension liabilitity (698,515) (392,514) (1,037,790) (2,128,819) - - Increase (decrease) in compensated absences - - - - (154,275) - Increase (decrease) in deferred inflows of
resources - OPEB related (4,807) (15,023) 15,464 - (4,366) - Increase (decrease) in deferred inflows of
resources - pension related (121,786) (112,730) (170,716) (405,232) - - Net cash provided by operating activities $ 5,186,084 $ 2,805,764 $ 3,262,429 $ 87,706 $ 11,341,983 $ 339,498
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contribution $ 546,792 $ 1,187,368 $ 1,432,846 $ 3,167,006 - $ $ 1,504,145 Amortization related to deferred loss on debt
refunding $ 54,739 - $ $ - $ 54,739 - $ $ -
Water Fund Sewer Fund Electric Fund
Business-Type Activities
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Private Purpose Custodial Fund
Trust Fund Cultural Center
ASSETS
Cash and investments $ 3,976,405 $ 87,338
Cash and investments with fiscal agents 2,679,457 -
Loans and notes receivable 2,387,756 -
Interest receivable 26,048 475
Nondepreciable capital assets 528,300 -
Total assets 9,597,966 87,813
LIABILITIES
Interest payable 491,578 -
Long-term liabilities: -
Long-term debt - due within one year 2,600,100 -
Long-term debt - due in more than one year 26,789,009 - Total liabilities 29,882,687 -
NET POSITION
Net position held for private purposes (20,284,721) -
Net position held for Individuals, organizations, and other governments - 87,813 Total Net Position $ (20,284,721) $ 87,813
See accompanying Notes to Basic Financial Statements.
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City of Healdsburg
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Private Purpose Custodial Fund
Trust Fund Cultural Center
ADDITIONS:
Property taxes $ 3,682,854 $ -
Use of money and property 323,390 4,897
Other 103 -
Total additions 4,006,347 4,897
DEDUCTIONS:
Community development 7,800 -
Interest expense 1,031,923 -
Administrative expense 250,000 -
Total deductions 1,289,723 -
Change in net position 2,716,624 4,897
NET POSITION:
Beginning of year (23,001,345) 82,916
End of year $ (20,284,721) $ 87,813
See accompanying Notes to Basic Financial Statements.
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NOTES TO BASIC
FINANCIAL STATEMENTS
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Healdsburg (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The more significant of the government’s accounting policies are described below.
A. Reporting Entity
The basic financial statements of the City of Healdsburg (City) include the financial activities of the City and its component unit: the Healdsburg Public Financing Authority (HPFA).
The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board Statement (GASB) No.14 as amended by GASB No. 39, No. 61 and No. 80. The City of Healdsburg is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component units’ Board or because the component unit will provide a financial benefit or impose a financial burden on the City.
The component unit has been accounted for as a “blended” component unit of the City. Despite being legally separate, the HPFA is so intertwined with the City that it is, in substance, part of the City’s operations. Accordingly, the balances and transactions of this component unit are reported within the funds of the City. HPFA transactions are recorded in the Sewer Enterprise Fund. The following criteria were used in determining that the component unit was blended:
The members of the City Council or other members appointed by the City Council act as governing body of the HPFA. In addition, the HPFA provide services, which benefit the City. No separate financial statements are issued for HPFA.
The City participates in one joint power activity and one pooled arrangement through formally organized and separate entities. The financial activities of the Northern California Power Agency and the Redwood Empire Municipal Insurance Fund are not included in the accompanying basic financial statements as they are administered by boards separate from and independent of the City.
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Certain eliminations have been made as prescribed by GASB Statement No. 34 regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and grant and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 41 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Government-wide and Fund Financial Statement
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
Separate financial statements are provided for governmental funds, the proprietary fund, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole except for its fiduciary activities.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units. For the most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds.
Internal service funds are also presented in these statements. Internal service balances and activities have been allocated between governmental activities and business-type activities in the government-wide financial statements. These internal service funds account for charges to other funds and departments for insurance, maintenance, and information services.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements and fiduciary fund statements. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, entitlements, and donations.
On the accrual basis, revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all the eligibility requirements have been satisfied.
Proprietary funds distinguish operating revenues from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources, as they are needed.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus.
However, special reporting treatments are used to indicate that they should not be considered available spendable resources” since they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables is deferred until they become current receivables. 43 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued Under the modified accrual basis of accounting, revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims payable, and compensated absences which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds and proceeds of long-term liabilities are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is susceptible to accrual as revenue of the current period. All other revenue items are measurable and available only when cash is received by the government.
Fiduciary funds focus on net position and changes in net position. Trust funds use the flow of economic resources measurement focus and the accrual basis of accounting, except for the recognition of certain liabilities of defined benefit pension plans. Custodial funds also use the accrual basis of accounting, but, since they are custodial in nature and do not involve the measurement of results of operations, they do not have a measurement focus.
Fund Classifications - The funds designated as major funds are determined by a mathematical calculation consistent with GASB Statement No. 34.
Major Governmental Funds
The General Fund is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.
The Community Services Special Revenue Fund accounts for Transient Occupancy Tax funds received that are restricted for community services.
The Street Capital Project Fund accounts for the acquisition and construction of major streets and roads capital projects throughout the City.
Major Enterprise Funds
The Water Fund accounts for the activities of providing water utilities to the residents of the City.
The Sewer Fund accounts for the activities of providing sewer utilities to the residents of the City.
The Electric Fund accounts for the activities of the electric distribution operations. 44 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, Continued The City’s fund structure includes the following fund types:
Governmental Fund Types
Special Revenue Funds are used to account for, and report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
These funds are required by statute or ordinance to finance particular functions or activities of government.
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal, interest, and related costs on long-term obligations.
Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets (other than those financed by proprietary funds and trust funds).
Permanent Funds are used to account for and report financial resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs.
Proprietary Fund Types
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges.
Internal Service Funds are used to account for the financing of special activities that provide services within the City. These activities include insurance and benefits, vehicle maintenance, information services, and building maintenance.
Fiduciary Fund Types
Private Purpose Trust Funds are used to report trust arrangements under which principal and income benefits to support private organizations or other governments.
Custodial Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment.
Earnings from such investments are allocated to the respective funds based on applicable cash balances of each fund.
In compliance with the applicable State statute, the Statement of Investment Policy is adopted annually by the City Council. Investments authorized under the Investment Policy include:
Local Agency Investment Fund (LAIF) – State of California Investment Pool Sonoma County Pooled Fund
U.S. Treasury Obligations
U.S. Government Agency Issues
Certificates of Deposit
Money Market Funds
Medium-term Notes
Commercial Paper
Repurchase Agreements
The City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 31, “Accounting and Financial Reporting for Certain Investments and External Pools”, which require governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred.
The City’s investments are carried at fair value which approximates cost. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of its portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value.
Changes in fair value are allocated to each participating fund.
For purposes of the statement of cash flows for the proprietary fund, all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased are considered cash equivalents.
Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as interfund receivables/interfund payables (i.e., the current portion of interfund loans) or advances to/from other funds (the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as interfund receivables or interfund payables. 46 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Encumbrances
Encumbrance accounting is employed as an extension of the budgetary process. This method records purchase orders, contracts, and other commitments for the expenditure of funds to reserve that portion of the applicable appropriation. The City Council honors encumbrances outstanding at fiscal year-end.
Receivables and Payables
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in the applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
All trade and tax receivables are shown net of an allowance for uncollectible accounts if applicable, and estimated refunds due.
Lease Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the payment is received.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.
Inventory
Inventory is valued at cost using the weighted average method. Inventory of the Enterprise Funds consists primarily of materials and supplies for utility operations.
Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. For this report, the following timeframes are used:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period July 1, 2023 through June 30, 2024 47 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date: June 30, 2025
Measurement Date: June 30, 2025
Measurement Period July 1, 2024 through June 30, 2025 Property Taxes
Property Tax Levy, Collection and Maximum Rates - The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been approved by voters.
Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be adjusted by no more than two percent per year unless the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts, and other districts.
Sonoma County assesses properties, bills for, and collects secured and unsecured property taxes as follows:
The term “unsecured” refers to taxes on personal property. These taxes are secured by liens on the property being taxed. The City accrues only those taxes, which are levied for the tax year and received within sixty days after fiscal year-end.
Property Tax Administration Fees – The State of California FY 1990-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administrative fees withheld during the fiscal year.
Prepaid Items
Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.
Secured Unsecured
Lien dates January 1 January 1
Levy dates July 1 July 1
Due dates 50% on November 1, 50% on February 1 July 1
Delinquent as of December 10 (for Nov.), April 10 (for Feb) August 1 48 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Claims Payable
The City reports its risk activities in the Insurance and Benefit Service Fund for its workers compensation and Building Maintenance Fund for its general liability. When it is probable that a claim liability has been incurred at fiscal year-end, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. Estimated claims losses, if any, include an accrual for IBNR (“incurred but not reported”) claims. Small dollar claims are recorded as expenditures when paid.
Capital Assets
Capital Assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets received prior to the implementation of GASB Statement No. 72 were recorded at fair value on the date of donation. Donated capital assets received after the implementation of GASB Statement No. 72 are recorded at acquisition value as of the date received. Generally, capital asset purchases more than $5,000 are capitalized if they have an expected useful life of 3 years or more.
Capital assets include additions to public domain (infrastructure) including certain improvements such as pavement, curb and gutter, sidewalks, traffic control devices, bridges, and right-of-way corridors within the City.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide Financial Statements and in the Fund Financial Statements of the Proprietary Funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the statement of net position. The lives used for depreciation purposes of each capital asset class are:
Right to Use Assets
The City has recorded right to use lease assets as a result of implementing GASB Statement No.87. The right to use assets are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right to use assets are amortized on a straight-line basis over the life of the related lease.
Buildings 10 -30 years
Improvements other than buildings 10 years
Water distribution lines 10 - 50 years
Vehicles 3 - 7 years
Machinery and equipment 10 years
Office furniture, computers, and equipment 3 -10 years
Leased property 5 - 10 years
Infrastructure 50 years
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Compensated Absences
Vested Vacation and Sick Leave obligations are fully funded and recorded in the Insurance and Benefit Internal Service Fund as accrued compensated absences.
Compensated absences comprise unused vacation, sick leave, and similar compensatory leave balances.
Compensated absences (unpaid vacation, sick leave, and other compensatory leave) are recorded in the statements of net position. Liabilities for leave are assumed to be accrued using the First In, First Out (FIFO) method, meaning the leave that was earned first is used or paid first. The City has recorded a liability only when it is more likely than not that the leave will be taken or paid for. All compensated absences and related costs are reported as incurred in the governmental-wide and internal service fund financial statements. The liability for compensated absences is determined annually Long-Term Obligations
In the government-wide financial statements, and proprietary type in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bonds payable are reported net of the applicable bond premium or discount. Amortization of bond premiums and discounts are included in interest expense. Debt from direct placements and direct borrowings are disclosed as such in the notes to the financial statements.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the period issued. The face amount of debt issued is reported as other financing sources.
Premiums received are reported as other financing sources, while discounts are reported as other financing uses.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted.
In the government-wide financial statements, proprietary fund financial statements, and fiduciary fund financial statements, net position is reported in three categories: net investment in capital assets, restricted, and unrestricted. Net position that is net investment in capital assets consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position represents the portion of net position that has external constraints placed on it by parties outside of the City, such as creditors, grantors, contributors, or laws and regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.
Fund Balance
Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:
Nonspendable – The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of interfund loans.
Restricted – Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation (City ordinances).
Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandates payment of resources (from external resource providers) and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the City can be compelled by an external party-such as citizens, public interest groups, or the judiciary to use resources created by enabling legislation only for the purposes specified by the legislation. 51 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Assets, Deferred Outflows, Liabilities, Deferred Inflows, Net Position, or Equity, Continued Committed – The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the City Council, as resolutions and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by City Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
Assigned – Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by City Council or a City official delegated that authority by City Charter or ordinance.
Unassigned – Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the fiscal year.
The City’s policy is to apply restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
E. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses/expenditures during the reporting period. Actual results could differ from those estimates. 52 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. New Accounting Pronouncements
In 2025, the City adopted new account standards in order to confirm with the following Government Accounting Standards Board Statements:
GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The City restated its beginning compensated absence balances and its current year accounting and disclosures as part of implementation of this Statement.
GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The implementation of this standard did not result in additional disclosures for the current fiscal year. 53 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Control and Accounting
General Budget Policies
The City Council reviews and adopts an annual budget for the General, Special Revenue, Debt Service, and Capital Projects Funds. The City Council holds public hearings and may modify the appropriations by general approval. Budgeted amounts may be transferred between departments with the City Manager’s approval. The legal level of expenditure control is at the fund level. Operating appropriations lapse at the end of each fiscal year.
The budget is reported on the same basis as the fund types and on a basis consistent with accounting principles generally accepted in the United States of America. Additional appropriations or other changes during the fiscal year may be submitted by each department for Council review and approval.
B. Excess Expenditures over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:
C. Deficit Fund Balances
The North Area Special Revenue Fund and the Fire Impact Special Revenue Fund, both classified as nonmajor governmental funds, currently have a deficit fund balance of $13,338 and $99,946 respectively.
These deficits are expected to be alleviated as additional development contributions and benefit assessments are received
These deficits are expected to be alleviated as additional development contributions and benefit assessments are received.
Final
Budget Expenditures Excess
Nonmajor Funds:
Housing Successor Agency $ 650 $ 656 $ (6)
Senior Trust Center 4,500 4,641 (141)
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2025 consist of the following:
The table below identifies the investment types that are authorized for the City of Healdsburg by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California government Code or the City’s investment policy.
Statement of net position:
Cash and investments $ 71,896,640
Restricted cash and investments with fiscal agents 344,490 Pension stabilization investments 8,695,087 Investment in NCPA Reserves 5,982,662
Fiduciary funds:
Cash investments 4,063,743
Restricted cash and investments with fiscal agents 2,679,457 Total cash and investments $ 93,662,079
Cash on hand $ 2,780
Deposits with financial institutes 8,729,421
Pension stabilization investments 8,695,087
Investment in NCPA Reserves 5,982,662
Investments 70,252,129
Total cash and investments $ 93,662,079
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
A. Investments Authorized by the California Government Code and the City’s Investment Policy The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.
B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
The table below identifies the Investment types that are authorized for investments held by bond trustee.
The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio*
Maximum
Investment in
One Issuer
Credit/Minimum
Quality
Requirements
US Treasury Bills, Bonds and Notes None 100% None N/A
Federal Agency Securities None 100% None N/A
Local Agency Bonds None 30% 5% per single issuer A or its equivalent State of California Obligations None 30% 5% per single issuer A or its equivalent CA Local Agency Obligations None 30% 5% per single issuer A or its equivalent Obligations of other 49 States None 30% 5% per single issuer A or its equivalent U.S Government Money Market Funds 90 Days 20% 10% per single issuer N/A Commercial Paper 270 Days 25% 5% per single issuer A-1, P-1 Negotiable Certificates of Deposit 5 years 30% 5% per single issuer A or its equivalent Repurchase Agreements 92 Days 20% 5% per single issuer N/A Medium-term Corporate Bonds 5 years 30% 5% per single issuer A or its equivalent Mortgage Pass-Though Securities and
Collateralized Mortgage Obligations 5 years 10% 5% per single issuer AA or its equivalent Supranationals 5 years 30% 10% per single issuer AA or its equivalent Joint Powers Authority (Local
Government Investment Pools) N/A 100% None
Multiple
requirements
Local Agency Investment Fund N/A 100% State maximum N/A Sonoma County Pooled Fund N/A 10% 10% of total portfolio N/A *Excluding amounts held by bond trustee and the Pension Stabilization trustee that are not restricted by the California Government Code.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
B. Investments Authorized by Debt Agreements, Continued C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of
Portfolio
Maximum
Investment
in
One Issuer
U.S. Treasury Obligations None None None
U.S. Government Sponsored
Enterprise Securities None None None
Bankers Acceptances 180 days 40% 10%
Commercial Paper 270 days 25% 5%
Money Market Funds N/A 20% 10%
Investment Contracts 30 years None None
Sonoma County Pooled Fund N/A 10% None
State of California Local Agency
Investment Fund (State Pool) N/A Unlimited $75,000,000
Investment Type Totals
12 Months
or Less
13 to 24
Months
25 - 60
Months
More than
60 Months
Corporate Issues 13,465,088 $ 850,276 $ 2,489,467 10,125,345 $ - Commercial Paper 692,412 692,412 - - - Municipal Bonds 660,990 554,624 - 106,366 - U.S. Treasury Securities 16,631,641 1,523,173 4,863,866 10,244,602 - Federal Agency Bonds 3,923,820 3,923,820 - - - Federal Agency Mortgage-Backed Security 8,653,425 519,070 1,801,592 6,332,763 - State Investment Pool (LAIF) 23,200,807 23,200,807 - - - Held by Fiscal Agents:
County Investment Pool 344,200 344,200 - - - Money Market Mutual Funds 2,679,746 2,679,746 - - - Total $ 70,252,129 $ 33,733,504 $ 9,709,549 $ 26,809,076 $ - (Remaining maturity in Months)
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.
F. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.
Investment Type Amount
Minimum
Legal
Rating AAA AA A
Not
Rated
Corporate Issues $ 13,465,088 A $ 1,165,978 $ 2,042,524 $ 10,256,586 $ - Commercial Paper 692,412 A1, P1 - 692,412 - - Municipal Bonds 660,990 A 285,858 268,766 106,366 - U.S. Treasury Securities 16,631,641 N/A 15,656,865 - 974,776 - Federal Agency Bonds 3,923,820 N/A 3,923,820 - - - Federal Agency Mortgage-Backed Security 8,653,425 AA 8,653,425 - - - State Investment Pool (LAIF) 23,200,807 N/A - - 23,200,807 - Held by Fiscal Agents:
County Investment Pool 344,200 N/A - - 344,200 - Money Market Mutual Funds 2,679,746 N/A - - 2,679,746 - Total $ 70,252,129 $ 1,451,836 $ 30,545,400 $ 12,030,140 $ 26,224,753 Rating as of Fiscal Year End
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits; the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the government unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
The City’s deposits with financial institutions in excess of federal depository insurance limits are legally required by the California Government Code, to be collateralized as noted above.
As of June 30, 2025, the City investments in the following investment types were held by the same brokerdealer (counterparty) that was used by the City to buy securities:
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Investment Type Amount
Corporate Issues $ 13,465,088
Commercial Paper 692,412
Municipal Bonds 660,990
Taxable Municipal Issues 660,990
U.S. Treasury Securities 16,631,641
Federal Agency Bonds 3,923,820
Federal Agency Mortgage-Backec Security 8,653,425
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
I. Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three-tiered fair value hierarchy, as follows:
Level 1: Investments reflect prices quoted in active markets; Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and, Level 3: Investments reflect prices based upon unobservable sources.
The City has the following recurring fair value measurements as of June 30, 2025:
The City investments in LAIF, money market mutual funds, and the Sonoma County Investment Pool are not required to be measured under Level 1, 2, or 3.
J. Pension Stabilization Investment Program
Investments of funds held in the Pension Stabilization Investment Program are governed by the Investment Guidelines Document for the investment account and by the agreement for administrative services with the Public Agency Retirement Services (PARS), rather than the general provisions of the California Government Code or the City’s investment policy. The Pension Stabilization Investment Program’s investment policy is established and can be modified by the City. The goal of the Pension’s investment program is to provide a reasonable level of growth which, will result in sufficient assets to pay the present and future obligations of the City’s retirement Plan. The assets in this program will eventually be used to fund Pension Plan obligations for assets managed in the CalPERS Trust. The assets are also available to mitigate the potential negative impact of future rate hikes from CalPERS. The account’s risk tolerance has been rated moderately conservative, which demonstrates that the account can accept some price fluctuations to pursue its investment objectives.
Investments by fair value Totals
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3)
Corporate Issues $ 13,465,088 $ 13,465,088 - $ $ - Commercial Paper 692,412 - 692,412 - Municipal Bonds 660,990 - 660,990 - US Treasury Securities 16,631,641 16,631,641 - - Federal Agency Bonds 3,923,820 3,923,820 - - Federal Agency Mortgage-Backed Securities 8,653,425 8,653,425 - - Total 44,027,376 $ 44,027,376 - $ $ -
Investments not subject to leveling disclosure:
Money Market Mutual Funds 2,679,746
State Investment Pool (LAIF) 23,200,807
County Investment Pool 344,200
$ 70,252,129
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
As for duration, the investment manager will maintain the portfolio duration within +/- 25% of the benchmark duration at all times. The benchmark duration is the BC Aggregate Bond benchmark. At June 30, 2025, the benchmark duration was 6.06 years, and the plan’s overall duration was 5.82. The target asset allocation of the portfolio is 20-40% to equity investments, 50-80% to fixed income investments, and 0-20% to cash. Specifically identifiable investments are recorded by the Trustee in its records. All investments are either held by the counterparty or the counterparty’s trust department or agent, but not in the City’s name directly.
Pension volatility mitigation-contributions from the Fund can be either transferred to CalPERS or the City at the City’s discretion to offset fluctuations in the required annual contributions. Assets can be accessed anytime to fund the City’s pension obligations and defray reasonable expenses associated therewith.
The table below identifies the investment types that are authorized for investments held in the pension stabilization investment program. The table also identifies certain provisions of policy that address interest rate risk, credit risk, and concentration of credit risk.
Pension stabilization investments held and the percentage of the pension investment portfolio at June 30, 2025 was as follows:
Authorized Investment Type
Maximum
Investment
Mortgage-backed Securities 80%
Asset-back Securities 80%
Colleterial Mortgage Obligations 80%
Commercial Mortgage Obligations 40%
Corporate Debt Securities - U.S. or Foreign None
Eligible Instruments Issued Pursuant
to SEC Rule 144(a) 40%
Municipal Bonds 80%
Pension Stabilization Investments Fair Value % of Portfolio Federal Agency Securities
F.H.L.M.C $ 1,089,224 12.53%
F.N.M.A 583,632 6.71%
U.S Treasury Securities 1,522,547 17.51%
Corporate Bonds 2,110,496 24.27%
Mutual Funds 2,869,476 33.00%
Foreign Issues 128,446 1.48%
Money Market Mutual Funds 391,266 4.50%
Total Pension Stabilization Investments $ 8,695,087 100% 61 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
Information about the sensitivity of the fair values of the City’s pension stabilization investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Generally, credit risk is the risk that an issuer of an investment will not fulfil its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the City’s pension stabilization investment policy and the actual rating, by Standard and Poor’s, as of fiscal year end for each investment type:
Investment Type Totals
12 Months
or Less
13 to 24
Months
26-60
Months
More Than
60 Months
Federal Agency Securities
F.H.L.M.C $ 1,089,224 $ - $ 82,675 - $ $ 1,006,549
F.N.M.A 583,632 1,827 - 581,805 - U.S Treasury Securities 1,522,547 - 215,665 - 1,306,882 Corporate Bonds 2,110,496 64,693 19,115 893,016 1,133,672 Mutual Funds 2,869,476 2,869,476 - - - Foreign Issues 128,446 - 51,228 - 77,218 Money Market Mutual Funds 391,266 391,266 - - - $ 8,695,087 $ 3,327,262 $ 19,115 $ 1,242,584 $ 4,106,126 Remaining maturity (in Months)
Investment Type Amount
Minimum
Legal
Rating AAA AA A BBB Bb
Not
Rated
Federal Agency Securities
F.H.L.M.C $ 1,089,224 BBB- $ - $ - $ - $ - $ 1,089,224 - $ F.N.M.A 583,632 BBB- - - - - - 583,632
U.S Treasury Securities 1,522,547 N/A - - - - 1,522,547 - Corporate Bonds 2,110,496 BBB- 184,592 60,652 606,654 743,112 24,462.00 491,024 Mutual Funds 2,869,476 N/A - - - - 2,869,476 - Foreign Issues 128,446 N/A - 52,013 - 50,835 25,598 - Money Market Mutual Funds 391,266 N/A - - - - 391,266 - Total $ 8,695,087 $ 184,592 $ 60,652 $ 658,667 $ 793,947 $ 24,462 $ 6,972,767 Rating as of Fiscal Year End
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
3. CASH AND INVESTMENTS, Continued
J. Pension Stabilization Investment Program, Continued
The pension stabilization investment policy of the City contains limitations on the amount that can be invested in any one issuer. Pension stabilization investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s pension stabilization investments are as follows:
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
The City’s pension stabilization investments have the following recurring fair value measurements as of June 30, 2025:
Investment Type Issuer Fair Value
Interest
Rate
Percentage of
Portfolio
Federal Agency Securities F.H.L.M.C 1,089,224 $ 2.50% - 5.50% 12.53% Federal Agency Securities F.N.M.A 583,632 2.50% - 5.00% 6.71% Totals Level 1 Level 2 Level 3
Federal Agency Securities $ 1,672,856 $ 1,672,856 - $ $ - U.S. Treasury Securities 1,522,547 1,522,547 - - Corporate Bonds 2,110,496 2,110,496 - - Mutual Funds 2,869,476 2,869,476 - - Foreign Issues 128,446 128,446 - - 8,303,821 $ 8,303,821 - $ $ -
Investments not subject to leveling disclosure:
Money Market Mutual Funds 391,266
$ 8,695,087
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
4. ACCOUNTS RECEIVABLE
The following is a list of accounts receivable at June 30, 2025:
5. LEASE RECEIVABLE
Metro PCS
In November 2007, the City entered into a lease with Metro PCS to allow a portion of their property to be utilized for a cellular tower. The lease term is 5 years and includes four additional optional 5 year terms which are exercised unless written notification of cancellation occurs within 90 days prior to the expiration of the existing lease term. Annual rent shall be adjusted as of the fifth (5th) anniversary of the Commencement date of the term and of any five (5) year renewal term by an increase of 15% of the annual rent paid during the previous term of five (5) year renewal term. Payments received during the current fiscal year were $34,853. The current 5 year term will expire in August 2027.
Verizon
In May 2023, the City entered into a lease with Metro PCS to allow a portion of their property to be utilized for a cellular tower. The lease term is for a period of 5 years. Monthly rent for the first year shall be $2,157 commencing on May 2023 and increasing by 3 percent each year thereafter.
Sonic.Net
In April 2024, the City entered into a lease with Sonic Telecom, LLC to allow a portion of their property to be utilized for installation of fiber optic cable. The lease term is for a period of 5 years. Monthly rent for the first year shall be $300 commencing on April 2024.
Bike Tour Sonoma
In February 2025, the City entered into a five-year lease agreement with Bike Tour Sonoma LLC for the use of City-owned property at 217 Healdsburg Avenue. The lease requires monthly rent payments of $1,651, due in advance on the first day of each month, with no scheduled rent escalations during the initial term. The tenant has an option to extend the lease for one additional five-year term upon mutual agreement, with rent for the extension period subject to fair market value but not less than the rent paid in the final year of the initial term.
Governmental
Activities
Business-type
Activities Total
Accounts receivable 5,989,848 $ $ 5,332,556 $ 11,322,404 Intergovernmental 3,127,808 2,336,963 5,464,771
Interest receivable 180,850 179,679 360,529 $ 9,298,506 $ 7,849,198 $ 17,147,704 64 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
5. LEASE RECEIVABLE, Continued
Alliance Medical Offices
In December 2024, the City executed a second amendment to its office lease with Alliance Medical Center for the continued use of office space at the Healdsburg Community Center. The amendment extends the lease term through December 19, 2025, with two additional one-year extension options available upon approval. Annual base rent is $32,100, subject to CPI adjustments at the start of each extension term, and Alliance Medical Center also pays a monthly utility services fee that increases annually in accordance with approved utility rate changes.
The City’s lease receivable activities for the year ended June 30, 2025 were as follows:
Deferred
Inflows of
Resources
Balance at Balance at Balance at
Governmental Activities 7/1/2024 Additions Deletions 6/30/2025 At 6/30/2025 Metro PCS $ 144,179 $ (40,815) - $ $ 103,364 $ 98,385
Verison 102,103 (24,598) - 77,505 73,181
Sonic.net 49,582 (1,358) - 48,224 47,168
Bike Tour Sonoma 163,517 - (6,142) 157,375 156,703
Alliance Medical Offices 93,577 - (17,592) 75,985 75,381 $ 295,864 $ 257,094 $ (90,505) $ 462,453 $ 450,818
Lease Receivable
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
6. NOTES AND LOANS RECEIVABLE
The following schedule summarizes notes and loans receivable as of June 30, 2025:
Notes receivable in the amount of $11,835,748 consists of the combination of the following:
Funds Amount
Major governmental funds
General Fund $ 1,199,779
Nonmajor governmental fund
Housing Successor Agency special revenue fund 8,833,142 TOT Housing Fund 1,799,247
Internal service funds
Information Services fund 3,580
$ 11,835,748
Notes Receivable Amount
Governmental Activities:
Individuals $ 2,185,923
Business Stabilization Loans 43,758
Riverfield Homes 306,130
Healdsburg Family Limited Partnership 4,794,995 Healdsburg Pacific Associates 2,299,524 Burbank Housing 1,832,699
Eden Mill District LP 264,480
Monte Vina 4,242,049
Freebird, LLC 2,151,170
Subtotal 18,120,728
Less: Allowances for uncollectible loans (6,288,560) Mutual Agreement loan Employee computer loans 3,580
Total net notes and loan receivable $ 11,835,748
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
7. INTERFUND ACTIVITY
A. Due To/ From Other Funds
Current interfund balances arise in the normal course of business and to assist funds with negative cash balance at the fiscal year end. They are expected to be repaid shortly after the end of the fiscal year. The City allocates negative interest to funds that have a negative cash balance.
The following represents the interfund activity of the City for the fiscal year ended June 30, 2025:
Fund
Due From
Other Funds
Due to
Other Funds
Major governmental funds
General fund $ 531,577 $ 471,065
Capital projects fund 108,552 - Major enterprise funds
Sewer Fund 318,750 - Nonmajor governmental funds
TOT Housing 471,065 - Media Center special revenue fund 5,956 - Fire Impact Fees Fund 98,319 - Sub-total 1,002,642 1,002,642 Major enterprise funds
Water Fund 1,926,810 1,926,810
Sewer Fund 255,435 255,435
Sub-total 2,182,245 2,182,245
Major enterprise funds
Electric Fund 15,000 - Nonmajor governmental funds
North Area special revenue fund 15,000 - Housing Successor Agency special revenue fund Misc. Projects capital projects fund
Sub-total 15,000 15,000
Totals $ 3,199,887 $ 3,199,887
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
7. INTERFUND ACTIVITY, Continued
B. Transfers
With council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund that has made expenditures on behalf of another fund.
C. Advances To/ From Other Funds
At June 30, 2025, advances to/advances from other funds were as follows:
On January 7, 2017, the Sewer Enterprise Fund and the Electric Enterprise Fund advanced each in the amounts $1,587,500 to the General Fund for the City Hall renovation. The advance bears interest rate adjusted on July 1 of each year to equal the then LAIF rate on May 31 of the prior fiscal year. The principal and interest payments are due in 15 equal installments. As of June 30, 2025, the outstanding amount of the advance was $ $1,813,008.
Transfers Out General Fund Streets
Non-Major
Governmental
Funds Sewer Fund
Total
Transfers Out
Governmental Funds:
General Fund $ 1,438,980 - $ $ 317,065 - $ $ 1,756,045
Community Servuces Fund - 122,647 - 122,647 - Non-Major Governmental Funds 100,832 472,387 - 573,219 - Proprietary Funds:
Electric Fund 186,438 - - 186,438 - Total Transfers In $ 287,270 $ 1,911,367 $ 122,647 $ 317,065 $ 2,638,349 Transfers In
Governmental Funds Proprietary Funds
Advance From Other Funds
(Funds receiving loans) Sewer Fund Electric Fund Total
Governmental Funds:
General Fund $ 906,504 $ 906,504 $ 1,813,008
Total $ 906,504 $ 906,504 $ 1,813,008
Advance To Other Funds
(Funds making loans)
Proprietary Funds
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
8. CAPITAL ASSETS
The City has reported all capital assets including infrastructure in the government-wide Statement of Net Position. The City elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation have been recorded.
A summary of changes in capital assets for the City’s governmental activities for the fiscal year ended June 30, 2025 is as follows:
Depreciation and amortization were charged to functions/programs of the primary government as follows:
Balance at
July 1, 2024 Additions
Deletions &
write-offs Transfers
Balance at
June 30, 2025
Governmental Activities:
Capital assets, not being depreciated:
Land $ 20,193,298 $ - $ - $ 20,193,298 - $
Right of ways 6,681,379 - - 6,681,379 - Construction in progress 9,941,581 9,556,435 (9,925,081) - 9,572,935 Total capital assets not being depreciated 36,816,256 9,556,435 (9,925,081) - 36,447,612 Capital assets, being depreciated:
Land improvements 5,193,015 1,970,502 3,037,423 - 10,200,940 Streets 78,256,928 2,348,979 - 80,605,907 - Buildings 40,852,249 405,339 6,887,658 - 48,145,246 Machinery and equipment 12,998,574 370,240 (94,548) 13,274,266 - Infrastructure 1,515,614 - - 1,515,614 - Lease equipment 151,864 261,242 (151,864) 261,242 - Total capital assets, being depreciated 138,968,244 5,356,302 (246,412) 9,925,081 154,003,215 Less accumulated depreciation for:
Land improvements (2,031,263) (485,463) - (2,516,726) - Streets (21,541,964) (1,702,967) - (23,244,931) - Buildings (19,343,958) (1,313,185) - (20,657,143) - Machinery and equipment (10,070,299) (1,138,372) 94,548 (11,114,123) - Infrastructure (483,165) (42,056) - (525,221) - Less accumulated amortization for:
Lease equipment (95,914) (49,455) 106,183 (39,186) - Total accumulated depreciation & Amortization (53,566,563) (4,731,498) 200,731 (58,097,330) - Total capital assets, being depreciated, net 85,401,681 624,804 (45,681) 9,925,081 95,905,885 Governmental activities capital assets, net $ 122,217,937 $ 10,181,239 $ (45,681) $ 132,353,497 - $ Governmental Activities Depreciation Amortization Total General government $ 583,916 $ 583,916 - $
Public safety 83,676 83,676 - Streets and roads 1,703,150 1,703,150 - Community development 463,438 463,438 - Community services 433,980 433,980 - Internal service funds 1,413,883 49,455 1,463,338 Total $ 4,682,043 $ 49,455 $ 4,731,498
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
8. CAPITAL ASSETS, Continued
A summary of changes in property, improvements, and equipment in the Enterprise Funds for the fiscal year ended June 30, 2025 is as follows:
Depreciation expense was charged to the following functions:
Balance at
June 30, 2024 Additions Deletions Transfers
Balance at
June 30, 2025
Business-types activities:
Capital assets, not being depreciated:
Land $ 1,245,877 $ - $ - $ 1,245,877 - $
Construction in progress 4,000,830 5,975,689 (1,460,388) 8,516,131 - Total capital assets not being depreciated 5,246,707 5,975,689 (1,460,388) 9,762,008 - Capital assets, being depreciated:
Buildings and improvements 3,040,870 - - 3,040,870 - Utility systems 142,776,154 2,441,526 - 145,217,680 - Drainage 12,064,263 725,480 - 12,789,743 - Machinery & equipment 3,675,410 298,952 - 3,974,362 - Operations 4,866,913 - - 4,866,913 - Total capital assets, being depreciated 166,423,610 3,465,958 - 169,889,568 - Less accumulated depreciation for:
Buildings and improvements (2,440,612) (73,012) - (2,513,624) - Utility systems (56,131,734) (3,479,275) - (59,611,009) - Drainage (5,978,156) (265,559) - (6,243,715) - Machinery & equipment (2,527,625) (217,009) - (2,744,634) - Operations (1,489,096) (111,485) - (1,600,581) - Total accumulated depreciation (68,567,223) (4,146,340) - (72,713,563) - Total capital assets, being depreciated, net 97,856,387 (680,382) - 97,176,005 - Business-type activities capital assets, net $ 103,103,094 $ 5,295,307 $ (1,460,388) $ 106,938,013 - $ Business-type activities Amount
Water $ 881,242
Sewer 2,445,749
Electric 677,212
Airport 142,137
$ 4,146,340
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
9. RIGHT TO USE LEASE ASSETS
The City has recorded one right to use leased asset. The asset is right to use asset for leased equipment.
The related lease is discussed in the Leases subsection of the Liabilities section of this note. The right to use lease asset is reported in the capital assets schedule and is amortized on a straight-line basis over the term of the related lease.
10. LONG-TERM LIABILITY
A. Changes in Long-term Liability
Summary of changes in long-term liabilities for governmental activities is as follows:
Summary of changes in long-term liabilities for business-type activities is as follows:
Balance at
July 1, 2024 Additions Deletions
Balance at
June 30, 2025
Due Within
One Year
Governmental activities:
Other debt
Lease liabilities $ 56,381 $ 221,674 $ (56,381) $ 221,674 $ 48,985 Successor Agency payable 1,167,966 (104,858) - 1,063,108 105,120 Total governmental long-term debt $ 1,224,347 $ 221,674 $ (161,239) $ 1,284,782 $ 154,105 Balance at
July 1, 2024 Additions Deletions
Balance at
June 30, 2025
Due Within
One Year
Business-type activities:
Direct borrowings and direct placements
2005D - CSCDA Water/Sewer $ 1,220,000 $ (150,000) - $ $ 1,070,000 $ 160,000 2014 Water Refunding Bonds 2,964,000 (462,000) - 2,502,000 484,000 2015 Wastewater Refunding Bonds 17,500,000 (1,190,000) - 16,310,000 1,235,000 Premium on Bonds 345,219 (31,381) - 313,838 - Total direct borrowings and direct placements 22,029,219 (1,833,381) - 20,195,838 1,879,000 Other debt
Successor Agency payable 1,332,040 (119,588) - 1,212,452 119,887 Total other debt 1,332,040 (119,588) - 1,212,452 119,887 Total business-type long-term debt $ 23,361,259 $ (1,952,969) - $ $ 21,408,290 $ 1,998,887 71 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
10. LONG-TERM LIABILITY, Continued
B. Payable to the Successor Agency
In 2008, the former Redevelopment Agency of the City of Healdsburg (RDA) loaned the City of Healdsburg $4,495,000 ($2,395,000 to the Electric Fund for upgrades to Badger Substation and $2,100,000 to the Community Services Fund for long-term lease of a school facility) in accordance with executed loan agreements. In January 2012, the Board of Directors for the RDA adopted a resolution forgiving the loans between the RDA and the City. In June 2015, the California Department of Finance disallowed the forgiveness of the loans. The Successor Agency to the former RDA is now responsible for the collection of this loan payment. The loans are payable annually over a period of 20 years at an interest rate of .25%.
As of June 30, 2025, the amount due from Governmental Activities and the Electric Fund was $1,063,108 and 1,212,452, respectively. The Community Services Special Revenue fund is expected to be responsible for principal and interest payments for the portion related to Governmental Activities.
Fiscal Year Principal Interest Total
2026 $ 225,007 $ 5,689 $ 230,696
2027 225,570 5,126 230,696
2028 226,133 4,563 230,696
2029 226,699 3,997 230,696
2030 227,265 3,431 230,696
2031-2035 1,144,886 1,153,487 8,601 Totals $ 2,275,560 $ 31,407 $ 2,306,967 Reported as:
Governmental activities 1,063,108 $
Business-type activities 1,212,452 $ 2,275,560
Successor Agency Payable
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
10. LONG-TERM LIABILITY, Continued
C. Leases
On September 30, 2024, the City entered into lease agreements with Xerox Financial Services to lease various equipment. The agreements qualify as other-than-short-term leases under GASB Statement No. 87 and have been recorded at the present value of future minimum lease payments at inception. The 60- month agreements require fixed monthly payments totaling $4,717, plus a one-time implementation fee of $4,000. There are no variable payment components.
As a result of these leases, the City recognized a lease liability and a corresponding right-to-use asset, which will be amortized over the five-year term ending September 30, 2029. The right-to-use asset is further described in Note 1.D.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2025, were as follows:
Business-type Activities:
D. 2005 Series D CSCDA Water/Sewer Revenue Bonds
In October 2005, the City, through the California Statewide Communities Development Authority, issued $6,505,000 in bonds to provide funds to defease the 1996 Sewer Improvement Certificates and the 2000 Series B Water and Sewer CSDA Certificates, which were originally issued to finance sewer improvements. Interest on the 2005 bonds is payable semiannually, on April 1 and October 1, with the principal payments due annually on October 1 of each year. Net revenues of the water and wastewater utilities are pledged as security for the bonds. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
In July 2015, the City issued the 2015 Wastewater Revenue Refunding Bonds, which defeased the remaining Sewer Bonds of the 2005 CSDA Bonds of $2,440,000. The 2005 CSDA Sewer Bonds are considered to be defeased and the liability has been removed from long-term debt. See the 2015 Wastewater Revenue Refunding Bonds, Series A for more information on the refunding.
Fiscal Year Principal Interest Total
2026 48,985 $ $ 7,616 $ 56,601
2027 50,889 5,712 56,601
2028 52,867 3,734 56,601
2029 54,922 1,678 56,600
2030 14,011 14,100 89
Totals 221,674 $ $ 18,829 $ 240,503
Lease Liabilities
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
10. LONG-TERM LIABILITY, Continued
D. 2005 Series D CSCDA Water/Sewer Revenue Bonds, Continued The following represents the future debt service requirements for the 2005 Series D CSCDA Water Revenue Bonds:
E. 2014 Water Refunding Bonds
In February 2014, the City issued $7,965,000 in Water Revenue Refunding Bonds, to refund the 2001 A and 2002 C outstanding bonds (current refunding). Proceeds from the 2014 bonds were placed in escrow to refund in full the 2001 A and 2002 C bonds, and to pay costs of issuance. The bonds carry interest rates in the range from 4.30% to 5%. The final maturity is October 1, 2032. Semi-annual payments of principal and interest are due each April 1 and October 1. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
The following represents the future debt service requirements:
Fiscal Year Principal Interest Total
2026 160,000 $ $ 46,725 $ 206,725
2027 170,000 38,475 208,475
2028 170,000 30,294 200,294
2029 180,000 22,200 202,200
2030 190,000 13,644 203,644
2031 200,000 4,625 204,625
Totals 1,070,000 $ $ 155,963 $ 1,225,963
2005 Series D CSCDA Water/Sewer Revenue Bonds
Fiscal Year Principal Interest Total
2026 484,000 $ $ 93,790 $ 577,790
2027 347,000 76,547 423,547
2028 253,000 64,097 317,097
2029 262,000 53,411 315,411
2030 270,000 42,372 312,372
2031-2033 886,000 56,025 942,025
Totals 2,502,000 $ $ 386,242 $ 2,888,242
2014 Water Refunding Bonds
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
10. LONG-TERM LIABILITY, Continued
F. 2015 Wastewater Revenue Refunding Bonds, Series A
In July 2015, the City issued $26,625,000 in Wastewater Revenue Refunding Bonds, Series A, to refund the 2005 and 2006 Wastewater Revenue bonds (current refunding). Proceeds from the 2015 bonds were placed in escrow to refund in full the 2005 and 2006 bonds, and to pay costs of issuance. The bonds carry interest rates in the range from 2.0% to 3.75%. The final maturity is October 1, 2035. Semi-annual payments of principal and interest are due each April 1 and October 1. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately. The following represents the future minimum debt service requirements for the 2015 Wastewater Revenue Refunding Bonds:
G. Compensated Absences:
Compensated absences are liquidated by the Insurance and Benefit Internal Service Fund and are reported as a liability of the governmental activities. As of June 30, 2025, the City’s compensated absences activity was as follows:
11. PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Pension liabilities are typically liquidated in the General Fund for governmental activities or in the respective enterprise fund.
Fiscal Year Principal Interest Total
2026 1,235,000 $ $ 556,250 $ 1,791,250
2027 1,290,000 505,750 1,795,750
2028 1,335,000 459,925 1,794,925
2029 1,375,000 418,416 1,793,416
2030 1,420,000 373,856 1,793,856
2031-2035 7,895,000 1,077,966 8,972,966
2036 1,760,000 33,000 1,793,000
Totals 16,310,000 $ $ 3,425,163 $ 19,735,163
2015 Wastewater Revenue Refunding Bond, Series A
Balance as of
June 30, 2024
(restated)
Net increase/
(decrease)
Balance as of
June 30, 2025 Due in one year
Compensated Absences 4,056,982 $ $ (154,275) $ 3,902,707 $ 818,768 Totals $ 4,056,982 $ (154,275) $ 3,902,707 $ 818,768
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
11. PENSION PLAN, Continued
A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s Miscellaneous (all other) Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is the Basic Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:
Miscellaneous
Classic Member
Miscellaneous
2nd Tier
Miscellaneous
PEPRA
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
On or after
January 1,
2013
Benefit Formula 2.5% @ 55 2% @ 62 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 60 62
Monthly benefits, as a % of eligible compensation 2.5% 2% 2% Required employee contribution rates 8% 7% 6.5%
Required employer contribution rates 14.99% 10.93% 8.18% Unfunded liability $2,483,878 $11,106 $20,073
Safety Safety PEPRA
Hire Date
Prior to January 1,
2013
On and after
January 1, 2013
Benefit Formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 57
Monthly benefits, as a % of eligible compensation 3% 2.7% Required employee contribution rates 9% 11.5%
Required employer contribution rates 27.32% 13.76%
Unfunded liability $1,472,357 $12,040
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
11. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the measurement period June 30, 2024, the City’s contribution for the plan was as follows:
B. Pension Liability, Pension Expenses, and Deferred Outflow/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Plan as follows:
C. Net Pension Liability
The City’s net pension liability of the Plan is measured as the proportionate share of net pension liability.
The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:
Miscellaneous Safety Total
Contributions - employer $ 3,451,738 $ 1,944,214 $ 5,395,952 Proportionate
Share of Net
Pension Liability
Cost sharing plan $ 48,127,459
Proportion - June 30, 2023 0.38928%
Proportion - June 30, 2024 0.39685%
Change - Increase (Decrease) 0.00757%
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
For the fiscal year ended June 30, 2025, the City recognized pension expense/(income) of $8,792,754, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred outflows of resources reported as $4,766,470 related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and will be recognized as pension expense as follows:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions $ 1,218,824 $ - Differences between Expected and Actual Experience 4,078,326 150,078 Net differences between projected and actual
earnings on plan investments 2,613,141 - Difference between employer's contributions and the employer's proportionate share on contributions 815,309 259,117 Change in Employer's Proportion - 697,719
Pension Contributions Made Subsequent to Measurement Date 4,766,470 - Total $ 13,492,070 $ 1,106,914 Fiscal Year
Ended
June 30
Deferred
Outflows/(Inflows)
of Resources
2026 $ 2,438,242
2027 5,998,999
2028 76,499
2029 (895,054)
Total $ 7,618,686
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
The mortality rate was developed based on CalPERS specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, refer to the 2021 experience study report 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 as well as the expected pension cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
The expected real rates of return by asset class are on the next page:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Methods Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate
Derived using CalPERS' Membership
Data for all Funda
Post Retirement Benefit Increase
The Lesser of Contract COLA or 2.30% until
Purchasing Power Proection Allowance floor
on purchasing power applies, 2.30% thereafter
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
11. PENSION PLAN, Continued
C. Net Pension Liability, Continued
Discount Rate
The discount rate used to measure the total pension liability as of the measurement date of June 30, 2024 for the Plan 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. A detailed report testing these projections can be obtained from the CalPERS website.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS’ financial reports.
Asset Class (1)
Assumed Asset
Allocation Real Return (1,2)
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%
100.00%
(2) Figures are based on the 2021 Asset Liability Management study. (1) An expected inflation of 2.30% used for this period.
Discount Rate - 1%
5.90%
Current Discount Rate
6.90%
Discount Rate +1%
7.90%
Net Pension Liability $ 71,112,588 $ 48,127,459 $ 29,249,538 80 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
12. RISK MANAGEMENT (CIRA)
Risk Management
The City is exposed to various risk of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City currently reports all of its risk management activities in its Insurance and Benefit internal service fund.
Risk Pool Arrangements
The City is an associate member of the California Intergovernmental Risk Authority (CIRA), a public entity pool comprised of forty-nine northern California member cities/towns and one fire district. CIRA is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of CIRA is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage and provide risk management services.
For each of its insurance programs, CIRA has a multilevel risk-sharing arrangement. Each individual member participating in a program initially assumes its own losses up to a predetermined deductible/retention level. Losses and claims in excess of the deductibles and within CIRA’s stated retention limits are paid out of a central pool maintained by CIRA. This central pool is funded by all of the participating members in that program through premiums and contributions. CIRA purchases excess loss insurance policies (reinsurance) to provide coverage for losses and claims in excess of CIRA’s stated retention limits up to specified amounts. Losses and claims ceded to reinsurers would represent a contingent liability to CIRA if the reinsurers were unable to meet their existing obligations under the reinsurance agreements. Losses and claims which surpass the limits of the excess of loss insurance policies are the responsibility of the individual City in which the loss or claim originates.
CIRA programs do not insure the losses resulting from events that occurred prior to July 1, 2021. Losses from March 1, 1993, the date on which the City became an associate member of REMIF, through June 30, 2021, are covered by the Redwood Empire Municipal Fund (REMIF).
Effective July 1, 2021, REMIF merged with the Public Agency Risk Sharing Authority of California (PARSAC) to form CIRA.
The City of Healdsburg participates in the following CIRA programs:
General Liability Insurance – Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Healdsburg self-insures for the first $5,000 of each loss and pays 100% of all losses incurred under $5,000. The City does not share or pay for the losses of other members within their deductible/retention levels. Participating members share in losses above their deductible/retention levels up to the pool retention level. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. CIRA is a member of the Public Risk Innovation, Solution, and Management (PRISM) pool, which provides CIRA with an additional $39,000,000 liability insurance coverage over and above CIRA’s retention level of $1,000,000.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
12. RISK MANAGEMENT (CIRA), Continued
Worker’s Compensation – Contributions are paid by members and are adjusted retrospectively to cover costs. The City of Healdsburg is self-insured for the first $25,000 of each loss and pays 100% of all losses incurred under $25,000.
Losses about the member’s deductible/retention levels are shared among all members. Losses in excess of $1,000,000 are covered by excess insurance purchased by participating cities, as part of the pool, to State statutory limits.
Property Insurance – The City participates in CIRA’s property insurance program. The annual premiums paid by participating member cities are based on deductible levels and are not subject to retroactive adjustments. The City of Healdsburg has a deductible level of $10,000. The City purchases additional earthquake coverage.
The City participates in Cyber Liability, Pollution Liability, Crime/Fidelity, and Deadly Weapons Response Coverage pass-through programs. Members are charged a premium for coverage, and each loss is subject to a member deductible. There is no risk-sharing component to these coverages.
The year-end financial statements and audit for CIRA are currently in process and once complete will be available online at www.cira-jpa.org.
The June 30, 2025 financial statements for REMIF are available online at www.remif.com. The assets of each pool remain separate from CIRA and those assets will be used to pay any liabilities of the respective organizations.
Changes in the Internal Service Funds claims liabilities amounts in fiscal year 2025, 2024, 2023, and 2022 were as follows:
The total claims liability of $272,947 includes the assessments of $142,500 and $130,447, Liability and Worker’s Compensation programs, respectively.
2025 2024 2023 2022
Balance, beginning of fiscal year 314,445 $ $ 297,985 $ 390,404 $ 441,634 Claims and adjustments 16,460 - 817,809 1,812,088
Claims payments (41,498) (910,228) - (1,863,318)
Balance, end of fiscal year 272,947 $ $ 314,445 $ 297,985 $ 390,404 Due within one year $ 77,802 $ 96,126 $ 91,082 $ 137,942 Due in more than one year 195,145 $ $ 218,319 $ 206,903 $ 252,462 82 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
13. NORTHERN CALIFORNIA POWER AGENCY
Background
The City is a member of the Northern California Power Agency (NCPA), headquartered in Roseville, California. NCPA is a joint exercise of powers agency formed in 1968 under the Joint Exercise of Powers Act, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”).
NCPA’s Members currently consist of twelve cities with publicly owned electric utility distribution systems, a public utility district, a city port department, a transit district and a rural electric cooperative as Members. Under the terms of the NCPA Joint Powers Agreement entered into by all Members, NCPA possesses the general powers to acquire, purchase, generate, transmit, distribute and sell electrical capacity and energy. Specific powers include the power to enter into contracts, acquire and construct electric generating facilities, issue revenue bonds and notes and acquire property by eminent domain.
The member Services Agreements, dated as of February 12, 1981, and the Facilities Agreement, dated as of September 22, 1993, provide for the development of projects undertaken by NCPA in three separate phases: (i) the initial phase of general investigation funded by NCPA’s general fund; (ii) the second phase whereby Members of NCPA electing to participate in the project execute a project agreement to provide for the cost of development of the project (now referred to as an “NCPA Project”); and (iii) the third phase during which all remaining aspects, including financing, construction and operation of the NCPA Project are undertaken.
Organization and Management
NCPA’s governing body (the “Commission”) is composed of one representative from each Member, each such representative being designated a Commissioner. The Commission is given the general management of the affairs, property and business of NCPA and is vested with all powers of NCPA.
The management of NCPA is responsible for various areas of administration and planning of NCPA’s operations and affairs. The overall management is under the direction of NCPA’s General Manager, who serves at the discretion of the Commission. NCPA is organized into four separate divisions: (i) generation services, (ii) power management, (iii) legislative and regulatory, and (iv) administrative services.
Today, the organization is guided by an ethic of environmental stewardship, fiscal responsibility, and community service, coupled with a strong sense of mission to advance the state of the art in renewable energy. Each NCPA Member has agreed to fund a pro rata share of certain assessments by NCPA and enter into power supply contract with NCPA to purchase power in support of bearing the costs of NCPA operations, energy and facilities. While governed by its Members, none of NCPA’s obligations are those of its Members unless expressly assumed by them. As computed by NCPA amounts paid by the City to NCPA during the fiscal year ending June 30, 2025 were $4.4 million for electric power acquisition charges and are reported as an expense of the Electric Utility Fund. 83 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
13. NORTHERN CALIFORNIA POWER AGENCY, Continued
Organization and Management, Continued
Additionally, the NCPA Commission identified and approved the funding of specific reserves for working capital, accumulated employee’s post-retirement medical benefits, and billed property taxes for the geothermal project. The Commission also identified a number of contingent liabilities that may or may not be realized, the cost of which in most cases is difficult to estimate at this time. One such contingent liability is the steam filed depletion which will require funding to cover debt service and operational cost in excess of the expected value of the electric power. The General Operating Reserve (the “GOR”) is intended to minimize the number and amount of individual reserves needed for each project, protect NCPA’s financial condition and maintain its credit worthiness. These funds are available on demand, but the City has left them with NCPA as a reserve against these contingencies identified by NCPA. The City’s GOR balance as computed by NCPA was $5,982,662 as of June 30, 2025. The most recent estimated funding recommended by NCPA equaled $1,738,705.
NCPA Power Pool
The City is a member of a power pool operated by NCPA that also includes the following Members:
Alameda, Biggs, Gridley, Lodi, Lompoc, Palo Alto, Plumas Sierra Rural Electric Cooperative, the Port of Oakland and Ukiah (each, an “NCPA Pool Member”). The ten NCPA Pool Members’ service areas are connected to the CAISO-controlled grid. NCPA operates a central dispatch facility at NCPA’s headquarters. The Central Dispatch Center balances loads and resources pursuant to CAISO tariff rules, for the ten NCPA Pool Members, and Santa Clara.
NCPA Geothermal Project
NCPA has developed a geothermal project (the “Geothermal Project”) located on federal land in certain areas of Sonoma and Lake Counties, California (the “Geysers Area”). NCPA formed two not-for-profit corporations controlled by its Members to own the generating plants of the Geothermal Project. NCPA manages the Geothermal Project for the corporations and is entitled to all the capacity and energy generated by the Geothermal Project.
Combustion Turbine Project
The original project consisted of five combustion turbine units, each nominally rated at approximately 25 megawatts. Concurrent with the final project bond maturity, two units located in Roseville were acquired by an NCPA member. The remaining project consists of two units in Alameda and one in Lodi. The project provides capacity during peak load periods and emergency capacity reserves. Excess capacity and energy from the project are also sold to other entities from time to time. The City is obligated to pay 3.5% of the debt service and operating costs.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
13. NORTHERN CALIFORNIA POWER AGENCY, Continued
Lodi Energy Center
The project is a 296 MW base load, combined cycle, natural gas-fired combustion turbine generating station (one gas turbine and one steam turbine) located in Lodi, California, next to the Capital Facilities Project discussed above. Pursuant to the Lodi Energy Center Power Sales Agreement, the NCPA agreed to operate the LEC and has sold all of the capacity and energy of the LEC to thirteen participants (including four non-members) in accordance with their respective Generation Entitlements Share (GES).
Each participant has agreed to unconditionally provide for its share of the operation and maintenance expenses and all capital improvements based on its GES.
Hydroelectric Project
The NCPA contracted to finance, manage, construct, and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In exchange, the Agency has the right to the electric output of the project for 50 years from February 1982. The Agency also has an option to purchase power from the project in excess of the District's requirements for the subsequent Federal Energy Regulatory Commission project license term of 30 to 50 years.
As part of a refinancing plan in November 2004, the Agency entered into two forward starting interest rate swaps in an initial notional amount of $85,160,000 and $1,574,000. Payments under the swap agreements with Citigroup Financial Products, Inc. began on April 2, 2008. To complete the refinancing transaction and realize the debt service savings under the 2004 swap agreement, on April 2, 2008 the Agency completed a bond refunding of 2023 to 2032 maturities of the 1998 Hydroelectric Refunding Series A bonds. These fixed rate bonds were refinanced through the issuance of tax-exempt 2008 Hydroelectric Refunding Series A ($85,160,000) bonds and taxable 2008 Hydroelectric Refunding Series B ($3,165,000) bonds. Both issues were variable interest rate bonds bearing interest at weekly interest rates, payable semi‐annually on July 1 and January 1 each year.
To support this financing, the NCPA entered into two irrevocable direct pay letter of credit agreements with Citibank that have since expired, being substituted with letters of credit with the Bank of Montreal in 2014. On April 30, 2019, the NCPA terminated the 2008 Hydroelectric, Series B swap with Citigroup, and on May 14, the outstanding principal of $910,000 on the 2008 Hydroelectric, Series B bonds was called for redemption. On June 24, 2019 the NCPA completed a Letter of Credit substitution for the 2008 Hydroelectric, Series A bonds replacing the Bank of Montreal with Bank of America. The Letter of Credit expires on June 21, 2024.
The remaining swap for the 2008 Hydroelectric Refunding Series A ($85,160,000) was a separate pay‐ fixed, receive-variable interest rate swap to produce savings or to result in lower costs over the life of the transaction than what the Agency would have paid using fixed‐rate debt. While the swap was a derivative instrument and carried additional risks, the Agency’s swap policy and favorable negotiations helped to reduce such risks.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
13. NORTHERN CALIFORNIA POWER AGENCY, Continued
Hydroelectric Project, Continued
On May 5, 2022, the Agency redeemed the outstanding 2008 Hydroelectric Refunding Series A variable rate bonds with proceeds from the 2022 Hydroelectric Refunding Series A fixed rate bonds. In conjunction with this redemption, NCPA terminated the remaining 2008 Hydroelectric Refunding Series A swap with Citigroup and made a swap termination payment fee of $11,928,000. The termination fee payment was funded with proceeds from the 2022 Hydroelectric Refunding Series B fixed rate bonds in addition to $630,322 paid directly by NCPA from the Hydroelectric Project revenue account. Concurrently, NCPA terminated the Letter of Credit with Bank of America.
The payment of principal and interest on the outstanding 2008 Hydroelectric Refunding Series A ($85,160,000) bonds are not covered by any financial guaranty insurance policies. This 2008 Hydroelectric Refunding and the associated interest rate swaps are estimated to have reduced project debt service by $11.8 million over the life of the debt providing the NCPA with an estimated economic gain (difference between the present values of the old and new debt service payments) of approximately $5.9 million. The actual total savings at the time of the variable rate bond redemption and the termination of the swap and letter of credit was $14,300,000.
The NCPA deferred the loss on the swap termination and recorded $11,928,000 in deferred outflows that will be amortized over the ten‐year life of the 2022 Hydroelectric Refunding Series B fixed rate bonds when the amounts will be recovered through rates.
As noted, the swap was terminated on May 5, 2022 and as a result, there was no remaining notional value or fair value due from (to) the counterparty at June 30, 2022.
NCPA Financial Information
NCPA’s financial statements are available on their website at www.ncpa.com. 86 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
14. OTHER POST-RETIREMENT PLAN
The City reports the following total OPEB liability as of the June 30, 2025 measurement date:
Description
The City’s defined benefit OPEB plan, (the Plan), provides OPEB for all eligible miscellaneous and public safety employees of the City. The plan is a single-employer defined benefit OPEB plan administered by the City. The benefit terms are defined in the applicable Memorandum’s of Understanding for each bargaining unit and may be amended by City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust.
At retirement, employees can elect to receive Blue Cross, Sutter, or Kaiser medical coverage through the City medical plan at the retiree’s expense. Retirees (service or disability retiring through CalPERS directly through the City who are age 50 or over and who have a minimum of 10 years of service) are eligible to obtain medical coverage. While the City does not directly contribute towards the cost of insurance premiums for retirees, the ability to obtain coverage at an active employee rate constitutes a significant economic benefit to the retirees, called an ‘implicit subsidy” under GASB Statement No. 75. Medical coverage is provided for the surviving spouse of retired employees and the surviving spouse of active employees who upon death had attained age 50 and who had a minimum of 10 years of service with a City. The Plan does not provide a publicly available financial report.
As of measurement date June 30, 2025, the following current and former employees were covered by the benefit terms under the Plan:
Contributions
The City’s adopted policy is to contribute an amount sufficient to pay the current fiscal year’s premium.
See above section “Description” for more information.
Governmental
Activities
Business-type
Activities Total
OPEB liability $ 702,600 $ 313,557 $ 1,016,157
Deferred outflows of resources 101,487 45,292 146,779
Deferred inflows of resources 331,438 147,915 479,353
Active employees 139
Inactive employees or beneficiaries currently receiving benefits 15 154 87 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
14. OTHER POST-RETIREMENT PLAN, Continued
Total OPEB Liability
The City’s total OPEB liability was measured and determined based on the following dates, actuarial methods, and assumptions:
Discount Rate
The discount rate estimates investment earnings for assets earmarked to cover retiree health benefit liabilities. The discount rate depends on the nature of underlying assets for funded plans. The rate used for a funded plan is the real rate of return expected for plan assets plus long-term inflation assumption.
For an unfunded plan, the discount rate is based on an index of 20-year General Obligation municipal bonds. For partially funded plans, the discount rate is a blend of the funded and unfunded rates. The discount rate used to measure the total OPEB liability was 3.93 percent.
Changes in Total OPEB Liability
The Changes in the total OPEB liability were as follows:
Actuarial Assumptions:
Valuation Date June 30, 2024
Measurement Date June 30, 2025
Contribution Policy No pre-funding
Discount Rate
3.93% at June 30, 2024 (Bond Buyer 20-Bond Index)
5.20% at June 30, 2025(Bond Buyer 20-Bond Index)
Inflation 2.50% annually
Salary Increases 2.75% per annum, in aggregate
Mortality Rate CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected full generational with Scale MP-2021 Medical Trent 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Healthecare Participation at Retirement Currently covered - 50% Currently waived - 0%
Total OPEB
Liability
Balance at June 30, 2024 (Measurement date) $ 1,121,528 Service Cost 53,261
Interest 45,546
Assumption Changes (172,468)
Actual vs. expected experience - Benefit Payments (31,710) Net Change during 2024-25 (105,371)
Balance at June 30, 2025 (Measurement date) $ 1,016,157 88 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
14. OTHER POST-RETIREMENT PLAN, Continued
Sensitivity to the total OPEB Liability to Changes in the Discount Rate and Healthcare Trend Rate The following presents the total OPEB liability of the City if it were calculated using discount rate that is one percentage point lower or one percentage point higher than the current rate:
The following presents the total OPEB liability of the City if it were calculated using healthecare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:
Recognition of Deferred Outflows and Deferred Inflows of Resources and OPEB expense For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $57,536. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
1% Lower
Current
Trend Rate 1% Higher
$ 878,333 $ 1,016,157 $ 1,182,611
Total OPEB Liability
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes in assumption $ 126,627 $ 341,189
Differences between expected
and actual experience 20,152 138,164
Total $ 146,779 $ 479,353
1% Lower
(4.20%)
Current
Discount Rate
(5.20%)
1% Higher
(6.20%)
$ 1,149,015 $ 1,016,157 $ 902,313
Total OPEB Liability
89 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
14. OTHER POST-RETIREMENT PLAN, Continued
Recognition of Deferred Outflows and Deferred Inflows of Resources and OPEB expense, Continued Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB and will be recognized as pension expense as follows:
15. COMMITMENTS AND CONTINGENCIES
There are pending claims and litigation against the City, which are considered normal to the City’s operation. City management is of the opinion that potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City beyond funded reserves.
The City has entered into long-term electric power purchase generation assets and electric transmission contracts. These contracts were entered into by NCPA on behalf of various members (see Note 13) including the City. Under the terms of its NCPA joint venture agreement, the City is contingently liable for a portion of the bonded indebtedness issued by these agencies under take-or-pay or similar agreements. The City’s estimated share of such debt outstanding at June 30, 2025 was $7.4 million.
Under certain circumstances, such as default or bankruptcy of other participants, the City may also be liable to pay a portion of the debt of these joint ventures on behalf of the other participants.
California-Oregon Transmission Project
The City is a member of the Transmission Agency of Northern California (TANC), a California joint powers agency. TANC, a combination of cities, Western Area Power Administration, and four other California Districts and authorities are participants in the California-Oregon Transmission Project (COTP). The COTP is a transmission project between southern Oregon and Central California. COTP provides a transmission path between the electric systems of the Pacific Northwest and those in California. The City’s share is 0.2456%. Each member of TANC is responsible for developing its own uses for its share of the COTP transfer capability
For the
Fiscal Year
Ending June 30
Recognized Net
Deferred Outflows
(Inflows) of Resources
2026 $ (41,271)
2027 (40,271)
2028 (37,271)
2029 (39,271)
2030 (44,005)
Thereafter (130,485)
Total $ (332,574)
90 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
15. COMMITMENTS AND CONTINGENCIES, Continued
Western Area Power Administration
In addition to commitments for power acquisitions through NCPA, the City has entered into a contract with the Western Area Power Administration (Western). Western is a federal Power Management Agency of the U.S. Department of Energy, which among other things is responsible for marketing electricity generated by the Central Valley Project. The contract with Western was renewed for the period January 1, 2005, through December 31, 2025. The City further renewed the contract with Western to acquire power from 2025 through 2054.
Construction Commitments
The estimated amount of remaining construction contract obligations at fiscal year-end is $4,281,275.
16. NET POSITION AND FUND BALANCES
GASB Statement No. 34, modified by GASB Statement No. 63, adds the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis.
Net Position
Net position is divided into three captions under GASB Statement No. 34. These captions apply only to net position as determined at the government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of net assets which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements, and redevelopment funds restricted to low and moderate income housing purposes.
Unrestricted describes the portion of net position which is not restricted as to use. 91 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
16. NET POSITION AND FUND BALANCES, Continued
Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned, and/or unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows:
Fund Balances General
Community
Services
Streets
Capital
Project Fund
Nonmajor
Governmental
Funds Total
Nonspendable:
Prepaid expenditures $ 9,073 $ 12,360 $ - $ 21,433 - $
Inventory - 10,585 - 10,585 - Legally Contractually required to be maintained intact 1,199,779 - 344,200 - 1,543,979 Total Nonspendable 1,208,852 12,360 10,585 344,200 1,575,997 Restricted for:
Lighting and landscaping - - 620,027 - 620,027
Community services 4,390,645 - - 4,390,645 - Affordable housing - - 10,325,357 - 10,325,357 Parking expansion - - 455,969 - 455,969
Public safety - - 750,848 - 750,848
Pension rate stabilization 5,380,324 527,987 205,554 6,113,865 - Streets and roads - 1,745,170 - 1,643,276 3,388,446 Strong motion - - - 9,114 9,114
Media Center - - - 2,074 2,074
Debt service - - 168,623 - 168,623
Total Restricted 5,380,324 4,918,632 1,950,724 13,975,288 26,224,968 Committed for:
Community benefit grant 41,717 - - 41,717 - Total Committed 41,717 - - 41,717 - Assigned for:
Plaza Flowers 3,035 - - 3,035 - Long Range Planning 396,007 - - 396,007 - Total Assigned 399,042 - - 399,042 - Unassigned 9,853,580 - (113,284) - 9,740,296 Total Fund Balances $ 16,883,515 $ 4,930,992 $ 1,961,309 $ 14,206,204 $ 37,982,020 92 Item 6.c
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Healdsburg that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 12.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the state Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
Prior to that date, the final seven months of activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
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City of Healdsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss).
Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.
Capital asset activities for the fiscal year ended June 30, 2025 were as follows:
The following is a schedule of long-term liabilities for the fiscal year ended June 30, 2025:
Fiduciary Activities:
Balance at
July 1, 2024 Additions Deletions
Balance at
June 30, 2025
Capital assets, not being depreciated:
Land $ 528,300 $ - $ 528,300 - $
Total Capital Assets, not being depreciated 528,300 - 528,300 - Fiduciary activities capital assets, net $ 528,300 $ - $ 528,300 - $ Balance at
July 1, 2024 Additions Reductions
Balance at
June 30, 2025
Due Within
One Year
2022 Series B $ 780,000 $ (80,000) - $ $ 700,000 $ 85,000 2014 Series A 5,588,100 (619,400) - 4,968,700 639,000
2014 Series B 2,196,300 (241,600) - 1,954,700 252,500
2015 Series A 5,708,800 (481,300) - 5,227,500 493,800
2015 Series B 2,606,500 (289,500) - 2,317,000 294,800
2017 Refunding 13,440,000 (785,000) - 12,655,000 835,000 Unamortized bond premium 1,722,830 (156,621) - 1,566,209 - Total other Long-term debt $ 32,042,530 $ (2,653,421) - $ $ 29,389,109 $ 2,600,100 94 Item 6.c
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Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued A. 2002 Series B
In August 2004, the Agency issued $1,800,000 Series B 2002 Tax Allocation Bonds. The Bonds were issued for the purpose of providing funds to finance the construction of the Alliance Medical Clinic, which the Agency determined is a benefit to the Sotoyome Project Area. Interest on the bonds is at 4.75% with semiannual debt service payments due February 1 and August 1, with principal maturing annually August 1, 2005 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately. Debt service payments will be made from tax increment revenue received by the Trust. Future debt service on these bonds is as follows:
B. 2014 Series A and B
In May 2014, the Successor Agency issued $10,876,000 in 2014 Tax Allocation Refunding Bonds, Series A, to refund the outstanding 2002 Tax Allocation Bonds, Series A (current refunding). Proceeds from the 2014 Series A bonds were used to refund in full the 2002 Series A bonds, to establish a reserve fund, and to pay costs of issuance. As a result, the 2002 Series A bonds are considered defeased and the liability has been removed from these financial statements.
In May 2014, the Successor Agency issued $4,279,400 in 2014 Tax Allocation Refunding Bonds, Series B, to refund the outstanding 2002 Tax Allocation Bonds, Series C (current refunding). Proceeds from the 2014 Series B bonds were used to refund in full the 2002 Series C bonds, to establish a reserve fund, and to pay costs of issuance. As a result, the 2002 Series C bonds are considered defeased. Interest on the bonds is set at 3.4% with semi-annual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2014 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
Fiscal Year Principal Interest Total
2026 85,000 $ $ 31,231 $ 116,231
2027 90,000 27,075 117,075
2028 95,000 22,681 117,681
2029 100,000 18,050 118,050
2030-2032 330,000 23,988 353,988
Totals 700,000 $ $ 123,025 $ 823,025
2002 Tax Allocation Bond Series B
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Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued B. 2014 Series A and B, Continued
Debt service payments will be made from tax increment revenue received by the Trust. The following represents the future minimum debt service requirements:
Fiscal Year Principal Interest Total
2026 639,000 $ $ 158,073 $ 797,073
2027 662,600 135,946 798,546
2028 685,300 113,031 798,331
2029 707,000 89,362 796,362
2030-2033 2,274,800 117,803 2,392,603
Totals 4,968,700 $ $ 614,215 $ 5,582,915
Fiscal Year Principal Interest Total
2026 252,500 $ $ 62,167 $ 314,667
2027 263,100 53,402 316,502
2028 268,200 44,370 312,570
2029 277,900 35,086 312,986
2030-2032 893,000 46,302 939,302
Totals 1,954,700 $ $ 241,327 $ 2,196,027
2014 Tax Allocation Bond Series A
2014 Tax Allocation Bond Series B
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Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued C. 2015 Series A and B
In January 2015, the Successor Agency issued $9,568,200 in 2015 Tax Allocation Refunding Bonds, Series A, and $4,750,800 in 2015 Tax Allocation Refunding Bonds, Series B, to refund the outstanding 2003 Tax Allocation Bonds, Series A and B (current refunding). Interest on the 2015 bonds is 4.25% with semiannual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2015 through 2031. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
Future debt service payments will be made from tax increment revenue received by the Trust, and is as follows:
D. 2017 Tax Allocation Refunding Bonds
In December 2017, the Successor Agency issued $17,150,000 in 2017 Tax Allocation Refunding Bonds to refund the outstanding 2010 Tax Allocation Bonds (advanced refunding). Proceeds from the 2017 Bonds were used to refund in full the 2010 Bonds and to pay issuance costs. As a result, the 2010 bonds are considered defeased and the liability has been removed from these financial statements. As of June 30, 2018, $21,103,793 was held in escrow to refund the 2010 Bonds. Interest on the 2017 bonds ranges from 2% to 5% with semi-annual debt service payments due on February 1 and August 1 of each year, with principal maturing annually August 1, 2018 through 2034.
Fiscal Year Principal Interest Total
2026 493,800 $ $ 211,676 $ 705,476
2027 740,500 185,447 925,947
2028 762,600 153,506 916,106
2029 788,200 120,551 908,751
2030-2032 2,442,400 155,588 2,597,988
Totals 5,227,500 $ $ 826,768 $ 6,054,268
Fiscal Year Principal Interest Total
2026 294,800 $ $ 92,208 $ 387,008
2027 304,800 79,467 384,267
2028 319,200 66,207 385,407
2029 328,000 52,454 380,454
2030-2032 1,070,200 1,139,869 69,669 Totals 2,317,000 $ $ 360,005 $ 2,677,005 2015 Tax Allocation Bond Series A
2015 Tax Allocation Bond Series B
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Notes to Basic Financial Statements
For the year ended June 30, 2025
17. SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, Continued D. 2017 Tax Allocation Refunding Bonds, Continued
The Successor Agency refunded the 2010 Bonds to reduce total debt service by approximately $3.6 million, and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $3 million. Upon and during the continuance of an event of default, the principal of and interest accrued on all bonds may be declared to be due and payable immediately.
Future debt service payments will be made from tax increment revenue received by the Trust, and is as follows:
18. RESTATEMENTS
In accordance with the provisions of GASB Statement No. 100, the City has restated its financial statement for the prior period due to changes in the classification of the following funds:
Internal Service Fund - Change in accounting principles due to implementation of the requirements of GASB 101 – Compensated Absences.
Summary of the restatements are as follows:
Fiscal Year Principal Interest Total
2026 835,000 $ $ 569,625 $ 1,404,625
2027 645,000 532,625 1,177,625
2028 685,000 499,375 1,184,375
2029 730,000 464,000 1,194,000
2030-2034 8,495,000 1,554,250 10,049,250
2035 1,265,000 18,975 1,283,975
Totals 12,655,000 $ $ 3,638,850 $ 16,293,850
2017 Tax Allocation Refunding Bond
Government-Wide
Internal Service
Funds
Governmental
Activities
Fund balance/net position as previously
reported at June 30, 2024 $ 10,392,648 $ 141,582,413
Change in accounting estimate due to
implementation of GASB 101 (1,044,277) (1,044,277)
Fund balance/net position as restated
at June 30, 2024 $ 9,348,371 $ 140,538,136
Reporting Units
Funds
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REQUIRED
SUPPLEMENTARY INFORMATION
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 5,467,392 $ 5,525,687 $ 5,800,927 $ 275,240 Sales and other taxes 11,088,012 10,873,384 10,969,378 95,994 Development fees 67,850 67,850 79,858 12,008
Intergovernmental 673,100 1,546,485 2,028,084 481,599
Fines and forfeitures 47,000 47,000 69,274 22,274
Licenses and permits 1,423,688 1,423,688 1,986,090 562,402 Use of money and property 573,704 1,241,983 1,211,297 (30,686) Charges for services 925,569 925,569 1,076,679 151,110
Other, donations, and reimbursements 244,267 494,267 1,562,719 1,068,452 Total revenues 20,510,582 22,145,913 24,784,306 2,638,393 EXPENDITURES:
Current:
General government 4,783,917 8,430,039 7,205,246 1,224,793 Public safety 13,871,183 14,774,117 14,653,492 120,625
Community development 840,131 840,131 799,591 40,540
Total expenditures 19,495,231 24,044,287 22,658,329 1,385,958
REVENUES OVER (UNDER)
EXPENDITURES 1,015,351 (1,898,374) 2,125,977 4,024,351
OTHER FINANCING SOURCES (USES):
Transfers in 2,095,600 4,804,469 287,270 (4,517,199)
Transfers out (3,111,269) (7,485,215) (1,756,045) 5,729,170 Total other financing sources (uses) (1,015,669) (2,680,746) (1,468,775) 1,211,971 Net change in fund balances $ (318) $ (4,579,120) 657,202 $ 5,236,322 FUND BALANCES:
Beginning of year 16,226,313
-
End of year $ 16,883,515
Budgeted Amounts
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Services
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Sales and other taxes $ 7,055,353 $ 7,055,353 $ 7,201,740 $ 146,387 Development fees - - 95,734 95,734
Intergovernmental 470,000 1,237,500 973,348 (264,152)
Use of money and property 263,669 329,249 690,102 360,853 Charges for services 668,600 668,600 675,019 6,419
Other, donations, and reimbursements 754,500 8,016,435 4,739,798 (3,276,637) Total revenues 9,212,122 17,307,137 14,375,741 (2,931,396) EXPENDITURES:
Current:
Community services 9,473,666 20,945,389 14,148,804 6,796,585 Total expenditures 9,473,666 20,945,389 14,148,804 6,796,585
REVENUES OVER (UNDER)
EXPENDITURES (261,544) (3,638,252) 226,937 3,865,189
OTHER FINANCING SOURCES (USES):
Transfers in 590,000 3,489,903 - (3,489,903)
Transfers out (712,647) (3,202,550) (122,647) 3,079,903 Total other financing sources (uses) (122,647) 287,353 (122,647) (410,000) Net change in fund balances $ (384,191) $ (3,350,899) 104,290 $ 3,455,189 FUND BALANCES:
Beginning of year 4,826,702
-
End of year $ 4,930,992
Budgeted Amounts
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Required Supplementary Information
For the year ended June 30, 2025
Schedule of the Local Government’s Proportionate Share of the Net Pension Liability – Last 10 Years
Miscellaneous
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 proportion of the Net pension liability 0.28460% 0.33530% 0.33897% 0.33985% proportionate share of the net pension liability 17,713,031 $ $ 23,014,464 $ 29,331,189 $ 33,703,985 Plan's covered payroll $ 7,808,757 $ 8,299,645 $ 9,243,834 $ 9,958,349 Plan's proportionate share of
the net pension liability as percentage
of its covered payroll 226.84% 277.29% 317.31% 338.45%
Fiduciary net position as a percentage of the
total pension liability 82.46% 77.62% 72.92% 71.61%
Notes to the schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, decreased from 7.65% to 7:15% in fiscal year 2018, and then decreased from 7.15% to 6.9% in fiscal year 2023 The CalPERS mortality assumptions were adjusted in fiscal year 2019 104
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6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
0.34843% 0.35464% 0.36105% 0.46138% 0.39349% 0.38928% 0.39685% $ 33,575,940 $ 36,340,001 $ 39,284,228 $ 24,952,824 $ 45,450,854 $ 48,564,252 $ 48,127,459 $ 10,170,288 $ 11,027,420 $ 14,438,000 $ 16,188,697 $ 16,715,521 $ 17,847,293 $ 17,080,482 330.14% 329.54% 272.09% 154.14% 271.91% 272.11% 281.77%
72.96% 72.41% 71.82% 69.89% 76.68% 76.21% 76.21%
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Required Supplementary Information
For the year ended June 30, 2025
Schedule of Pension Plan Contributions - Last 10 Fiscal Years Miscellaneous
Fiscal Year Ended 2016 2017 2018 2019
Contractually Required Contributions $ 2,208,239 $ 2,494,953 $ 2,791,313 $ 3,263,776 Contributions in relation to actuarially
Determined contributions (2,208,239) (2,494,953) (2,791,313) (3,263,776) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 9,243,834 $ 9,958,349 $ 10,170,288 $ 11,027,420 Contributions as a percentage of
covered payroll 23.89% 25.05% 27.45% 29.60%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Valuation date 6/30/2021
Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Asset valuation method Market value
Inflation 2.50%
Salary increase Depending on age, service, and type of employment Investment rate of return 7.00%
Retirement age Depending on age, service, and type of employment Mortality Based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board
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2020 2021 2022 2023 2024 2025
$ 3,824,645 $ 3,321,038 $ 4,808,270 $ 5,068,606 $ 5,395,952 $ 4,766,470 (3,824,645) (3,321,038) (4,808,270) (5,068,606) (5,395,952) (4,766,470) $ - $ - $ - $ - $ -
$ 14,438,000 $ 16,188,697 $ 16,715,521 $ 17,847,293 $ 17,080,482 $ 17,015,369
26.49% 20.51% 28.77% 28.40% 31.59% 28.01%
CalPERS
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Required Supplementary Information
For the year ended June 30, 2025
Schedule of the Change in Total OPEB Liability and Related Ratios - Last 10 Fiscal Years Measruement Date 6/30/2018 6/30/2019 6/30/2020 6/30/2021
TOTAL OPEB LIABILITY
Service cost $ 52,000 $ 51,000 $ 56,673 $ 70,471
Interest on the Total OPEB Liability 33,000 36,000 37,159 29,725 Difference between Expected and Actual
Experience - (31,683) - -
Changes of Assumptions (39,000) 53,000 220,458 10,405
Benefit payments (15,000) (16,000) (16,000) (10,000)
Net change in the total OPEB liability 31,000 124,000 266,607 100,601 Total OPEB liability - beginning 858,000 889,000 1,013,000 1,279,607 Total OPEB liability - ending (a) $ 889,000 $ 1,013,000 $ 1,279,607 $ 1,380,208 Plan Fiduciary Net Position as
a Percentage of the Total OPEB Liability n/a n/a n/a n/a Covered employee payroll1 $ 10,170,288 $ 11,027,420 $ 14,438,000 $ 16,188,697 Total OPEB liability as a percentage of covered
payroll 8.74% 9.19% 8.86% 8.53%
Notes to the Schedule:
Changes in Assumptions:
For fiscal year ended June 30, 2018, the discount rate changed from 3.58% to 3.87% For fiscal year ended June 30, 2020, the discount rate changed from 3.50% to 2.21% For fiscal year ended June 30, 2019, the discount rate changed from 3.87% to 3.50% For fiscal year ended June 30, 2021, the discount rate changed from 2.21% to 2.16% For fiscal year ended June 30, 2022, the discount rate changed from 2.16% to 3.54% For fiscal year ended June 30, 2022, the discount rate changed from 2.16% to 3.54% For fiscal year ended June 30, 2024, the discount rate changed from 3.54% to 3.65% For fiscal year ended June 30, 2025, the discount rate changed from 3.65% to 5.20% Mortality improvement scale was updated to Scale MP-2021 *Fiscal year 2018 was the first year of implementation, therefore only five years are shown. 108
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6/30/2022 6/30/2023 6/30/2024 6/30/2025
$ 73,355 $ 44,669 $ 44,822 $ 53,261
31,288 36,570 39,070 45,546
(201,375) - 25,008 -
(273,231) (14,231) 4,939 (172,468)
(10,000) (23,743) (35,821) (31,710)
(379,963) 43,265 78,018 (105,371)
1,380,208 1,000,245 1,043,510 1,121,528
$ 1,000,245 $ 1,043,510 $ 1,121,528 $ 1,016,157
n/a n/a n/a n/a
$ 16,715,251 $ 17,847,293 $ 18,913,932 $ 19,208,577
5.98% 5.85% 5.93% 5.30%
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Notes to Required Supplementary Information
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Budgetary Data
• Governmental Activities
• Business-Type Activities
Budgets and Budgetary Accounting
1. Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted at the City Hall to obtain citizen input.
3. Prior to July 1, the budget is adopted through passage of a resolution and is not included herein but is published separately.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations of any fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and department.
5. Formal budgetary integration is employed as a management control device during the fiscal year for all funds.
6. Budgets for General, Special Revenue, Debt Service, and Capital Projects Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America.
7. The City does not formally adopt budgets for the North Area, Park Development fees, Parking Impact Fees, and Misc. Projects non-major governmental funds.
8. The City does not formally adopt budgets for the permanent fund.
The City uses the following procedures in establishing the budgetary data reflected in the financial statements:
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities.
The Annual Budget assures the efficient and effective uses of the City’s economic resources, as well as establishing that the highest priority objectives are accomplished.
The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees, and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City’s performance.
The City collects and records revenue and expenditures within the following categories:
The Governmental Funds include the General Fund, Special Revenue, Debt Service, and Capital Projects funds. All funding sources are kept separate for both reporting and the use of money. The General Fund is where most City services are funded that are not required to be segregated. 110
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Sales and other taxes $ 134,672 $ 134,672 $ 218,649 $ 83,977 Development fees 21,000 21,000 195,849 174,849
Intergovernmental 3,205,000 4,138,809 276,394 (3,862,415) Use of money and property 40,662 66,193 119,035 52,842
Charges for services - - 13,155 13,155
Other, donations, and reimbursements 305,000 424,461 236,892 (187,569) Total revenues 3,706,334 4,785,135 1,059,974 (3,725,161) EXPENDITURES:
Current:
Streets and roads 6,800,359 9,198,371 2,416,511 6,781,860 Total expenditures 6,800,359 9,198,371 2,416,511 6,781,860
REVENUES OVER (UNDER)
EXPENDITURES (3,094,025) (4,413,236) (1,356,537) 3,056,699 OTHER FINANCING SOURCES (USES):
Transfers in 3,434,737 4,729,776 1,911,367 (2,818,409)
Total other financing sources (uses) 3,434,737 4,729,776 1,911,367 (2,818,409) Net change in fund balances $ 340,712 $ 316,540 554,830 $ 238,290 FUND BALANCES:
Beginning of year 1,406,479
-
End of year $ 1,961,309
Budgeted Amounts
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Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments $ 1,542,629 $ 1,662 $ 8,734 $ 79,502 Cash and investments with fiscal agents - - - -
Accounts receivable 53,300 - - -
Loans and notes receivable - - - -
Interest receivable 10,008 - 47 -
Intergovernmental receivable 81,858 - 5,437 -
Total assets $ 1,634,495 $ 54,962 $ 8,781 $ 84,939
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ - $ - Due to other funds 15,000 - - -
Deposits payable - - 5,656 -
Unearned revenue 53,300 - - -
Total liabilities 68,300 - 5,656 -
Deferred Inflows of Resources
Unavailable revenue - interest - - - -
Total deferred inflows of resources - - - -
Fund Balances:
Nonspendable - - - -
Restricted 1,634,495 8,781 - 79,283
Unassigned (13,338) - - -
Total fund balances 1,634,495 (13,338) 8,781 79,283
Total liabilities, deferred inflows of
resources and fund balances $ 1,634,495 $ 54,962 $ 8,781 $ 84,939 Gas Tax North Area
Benjamin
Way
Maintenance
District
Special Revenue Funds
Public Safety
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$ 9,065 $ 578,119 $ - $ 453,504 - $ $ 238,679 $ 164,616 - - - - - - -
44,185 - 8,030 - - - -
- - - - 8,833,142 - -
49 3,119 - 2,465 - - -
- - - - - - -
$ 9,114 $ 625,423 $ 8,030 $ 455,969 - $ $ 9,071,821 $ 164,616 $ 5,396 - $ $ - $ - $ - $ - $ 497
- 5,956 - - - - -
- - - - - - -
- - - - - - -
5,396 - 5,956 - - - 497
- - - - 2,070,641 - -
- - - - 2,070,641 - -
- - - - - - -
9,114 620,027 2,074 455,969 - 7,001,180 164,119
- - - - - - -
9,114 620,027 2,074 - 455,969 7,001,180 164,119
$ 9,114 $ 625,423 $ 8,030 $ 455,969 - $ $ 9,071,821 $ 164,616 Area A
Lighting and
Landscaping Media Center
Park
Development
Fees
Parking
Impact Fees
Housing
Successor
Agency
Opioid
Settlement
Strong
Motion
Education
and Data
Special Revenue Funds
115
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City of Healdsburg
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments $ 949,181 $ (1,087) $ 516,005 $ -
Cash and investments with fiscal agents - - 344,200 -
Accounts receivable 206,493 - - -
Loans and notes receivable 1,799,247 - - -
Interest receivable 2 (540) 2,849 -
Intergovernmental receivable - 400,526 - -
Total assets $ 3,425,987 $ (1,627) $ 919,380 $ 344,200
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 52,563 $ 11,408 - $ $ - Due to other funds 98,319 - - -
Deposits payable - - - -
Unearned revenue 49,247 400,526 - -
Total liabilities 101,810 98,319 411,934 -
Deferred Inflows of Resources
Unavailable revenue - interest - - - -
Total deferred inflows of resources - - - -
Fund Balances:
Nonspendable - 344,200
Restricted 3,324,177 507,446 - -
Unassigned (99,946) - - -
Total fund balances 3,324,177 (99,946) 507,446 344,200
Total liabilities, deferred inflows of
resources and fund balances $ 3,425,987 $ (1,627) $ 919,380 $ 344,200 Permanent
Fund
Senior Trust
Center
Enhanced
Fire
Protection
Fund
(Measure H)
TOT Housing
Fund
Special Revenue Funds
Fire Impact
Fees
116
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Total Nonmajor
Governmental
Funds
$ 165,298 - $ $ 4,705,907
- - 344,200
3,325 - 315,333
- 10,632,389 -
- - 17,999
- - 487,821
$ 168,623 - $ $ 16,974,713
$ - $ - $ 69,864
- - 119,275
- - 5,656
- - 503,073
- - 697,868
- 2,070,641 -
- 2,070,641 -
- - 344,200
168,623 - 13,975,288
- (113,284) -
- 168,623 14,206,204
$ 168,623 - $ $ 16,974,713
General Debt
Service
Capital
Projects Fund
Debt Service
Fund
Misc. Projects
117
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City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
REVENUES:
Property taxes $ - $ - $ - $ -
Sales and other taxes - - - -
Development fees - - - -
Intergovernmental 632,835 - - -
Use of money and property 95,143 - 489 -
Other, donations, and reimbursements - - - 23,130
Total revenues 727,978 - 489 23,130
EXPENDITURES:
Current:
Public safety - - - 63,833
Streets and roads 2,700 - - -
Community development - - - -
Debt service:
Principal retirement - - - -
interest and fiscal charges - - - -
Total expenditures 2,700 - 63,833 -
REVENUES OVER (UNDER)
EXPENDITURES 725,278 - 489 (40,703)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (472,387) - - -
Total other financing sources (uses) (472,387) - - -
Net change in fund balances 252,891 - 489 (40,703)
FUND BALANCES:
Beginning of year 1,381,604 (13,338) 8,292 119,986
End of year $ 1,634,495 $ (13,338) $ 8,781 $ 79,283
Special Revenue Funds
Gas Tax North Area
Benjamin
Way
Maintenance
District Public Safety
118
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$ 406,022 - $ $ - $ - $ - $ - $ -
- - - - - - -
- - - - - - -
- - - - - - -
495 27,476 - - 25,433 62,100 -
454 225 33,035 - - - 163,850
949 433,723 33,035 25,433 - 62,100 163,850
- - - - - - 15,355
- - - - - - -
- 225,563 - - - 656 -
- - - - - - -
- - - - - - -
225,563 - - - - 656 15,355
949 208,160 33,035 25,433 - 61,444 148,495
- 14,869 - - - - -
- (35,000) - - - (40,242) -
14,869 - (35,000) - - (40,242) -
949 223,029 (1,965) 25,433 - 61,444 108,253
8,165 396,998 4,039 - 430,536 6,939,736 55,866
$ 9,114 $ 620,027 $ 2,074 $ - $ 455,969 $ 7,001,180 $ 164,119 Media Center
Park
Development
Fees
Parking
Impact Fees
Housing
Successor
Agency
Opioid
Settlement
Special Revenue Funds
Strong
Motion
Education
and Data
Area A
Lighting and
Landscaping
119
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City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
REVENUES:
Property taxes $ - $ - $ - $ -
Sales and other taxes 1,407,464 - 757,266 -
Development fees - 8,299 - -
Intergovernmental - - - -
Use of money and property 31 (5,714) 10,352 36,594
Other, donations, and reimbursements 2,736 - - -
Total revenues 1,410,231 2,585 767,618 36,594
EXPENDITURES:
Current:
Public safety - - 260,172 -
Streets and roads - - - -
Community development 838,342 - - 4,641
Debt service:
Principal retirement - - - -
interest and fiscal charges - - - -
Total expenditures 838,342 260,172 - 4,641
REVENUES OVER (UNDER)
EXPENDITURES 571,889 2,585 507,446 31,953
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (25,590) - - -
Total other financing sources (uses) (25,590) - - -
Net change in fund balances 546,299 2,585 507,446 31,953 FUND BALANCES:
Beginning of year 2,777,878 (102,531) - 312,247
End of year $ 3,324,177 $ (99,946) $ 507,446 $ 344,200
Permanent
Fund
Senior Trust
Center
TOT Housing
Fund
Special Revenue Funds
Enhanced
Fire
Protection
Fund
(Measure H)
Fire Impact
Fees
120
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Total Nonmajor
Governmental
Funds
$ 3,324 - $ $ 409,346
- - 2,164,730
- - 8,299
- - 632,835
- - 252,399
- 356 223,786
3,680 - 3,691,395
- - 339,360
- - 2,700
- - 1,069,202
- 104,858 104,858
- 2,920 2,920
107,778 - 1,519,040
(104,098) - 2,172,355
- 107,778 122,647
- (573,219) -
107,778 - (450,572)
3,680 - 1,721,783
- 164,943 12,484,421
$ - $ 168,623 $ 14,206,204
Debt Service
Fund
General Debt
Service
Capital
Projects Fund
Misc. Projects
121
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122
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 610,550 $ 610,550 $ 632,835 $ 22,285 Use of money and property 31,427 31,427 95,143 63,716
Total revenues 641,977 641,977 727,978 86,001
EXPENDITURES:
Current:
Streets and roads 2,900 2,900 2,700 200
Total expenditures 2,900 2,900 2,700 200
REVENUES OVER (UNDER)
EXPENDITURES 639,077 639,077 725,278 86,201
OTHER FINANCING SOURCES (USES):
Transfers out (1,734,000) (1,777,615) (472,387) 1,305,228 Total other financing sources (uses) (1,734,000) (1,777,615) (472,387) 1,305,228 Net change in fund balances $ (1,094,923) $ (1,138,538) 252,891 $ 1,391,429 FUND BALANCES:
Beginning of year 1,381,604
End of year $ 1,634,495
Budgeted Amounts
123
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual North Area
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - $ - - $ -
FUND BALANCES:
Beginning of year (13,338)
End of year $ (13,338)
Budgeted Amounts
124
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Benjamin Way Maintenance District
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 200 $ 200 $ 489 $ 289
Total revenues 200 200 489 289
Net change in fund balances $ 200 $ 200 489 $ 289
FUND BALANCES:
Beginning of year 8,292
End of year $ 8,781
Budgeted Amounts
125
Item 6.c
255 of 465
City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 40,833 $ 40,833 $ - $ (40,833)
Other, donations, and reimbursements - - 23,130 23,130
Total revenues 40,833 40,833 23,130 (17,703)
EXPENDITURES:
Current:
Public safety 102,701 102,701 63,833 38,868
Total expenditures 102,701 102,701 63,833 38,868
REVENUES OVER (UNDER)
EXPENDITURES (61,868) (61,868) (40,703) 21,165
Net change in fund balances $ (61,868) $ (61,868) (40,703) $ 21,165 FUND BALANCES:
Beginning of year 119,986
End of year $ 79,283
Budgeted Amounts
126
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Strong Motion Education and Data
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 179 $ 179 $ 495 $ 316
Other, donations, and reimbursements 200 200 454 254
Total revenues 379 379 949 570
Net change in fund balances $ 379 $ 379 949 $ 570
FUND BALANCES:
Beginning of year 8,165
End of year $ 9,114
Budgeted Amounts
127
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Area A Lighting and Landscaping
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 410,895 $ 410,895 $ 406,022 $ (4,873)
Use of money and property 7,433 7,433 27,476 20,043
Other, donations, and reimbursements - - 225 225
Total revenues 418,328 418,328 433,723 15,395
EXPENDITURES:
Current:
Community development 266,379 266,379 225,563 40,816
Total expenditures 266,379 266,379 225,563 40,816
REVENUES OVER (UNDER)
EXPENDITURES 151,949 151,949 208,160 56,211
OTHER FINANCING SOURCES (USES):
Transfers in 14,869 14,869 14,869 -
Total other financing sources (uses) 14,869 14,869 14,869 - Net change in fund balances $ 166,818 $ 166,818 223,029 $ 56,211 FUND BALANCES:
Beginning of year 396,998
End of year $ 620,027
Budgeted Amounts
128
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Media Center
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Other, donations, and reimbursements $ 35,000 $ 35,000 $ 33,035 $ (1,965) Total revenues 35,000 35,000 33,035 (1,965)
OTHER FINANCING SOURCES (USES):
Transfers out (35,000) (35,000) (35,000) -
Total other financing sources (uses) (35,000) (35,000) (35,000) - Net change in fund balances $ - $ - (1,965) $ (1,965)
FUND BALANCES:
Beginning of year 4,039
End of year $ 2,074
Budgeted Amounts
129
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parking Impact Fees
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 10,396 $ 10,396 $ 25,433 $ 15,037 Total revenues 10,396 10,396 25,433 15,037
OTHER FINANCING SOURCES (USES):
Transfers out (410,000) - 410,000 -
Total other financing sources (uses) (410,000) - 410,000 - Net change in fund balances $ 10,396 $ (399,604) 25,433 $ 425,037 FUND BALANCES:
Beginning of year 430,536
End of year $ 455,969
Budgeted Amounts
130
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Successor Agency
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ - $ 62,100 $ 62,100
Total revenues - - 62,100 62,100
EXPENDITURES:
Current:
Community development 650 650 656 (6)
Total expenditures 650 650 656 (6)
REVENUES OVER (UNDER)
EXPENDITURES (650) (650) 61,444 62,094
Net change in fund balances $ (650) $ (650) 61,444 $ 62,094 FUND BALANCES:
Beginning of year 6,939,736
End of year $ 7,001,180
Budgeted Amounts
131
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Opioid Settlement
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Other, donations, and reimbursements $ 39,455 $ 39,455 $ 163,850 $ 124,395 Total revenues 39,455 39,455 163,850 124,395
EXPENDITURES:
Current:
Public safety 50,000 50,000 15,355 34,645
Total expenditures 50,000 50,000 15,355 34,645
REVENUES OVER (UNDER)
EXPENDITURES (10,545) (10,545) 148,495 159,040
OTHER FINANCING SOURCES (USES):
Transfers out - (40,242) (40,242) -
Total other financing sources (uses) (40,242) - (40,242) - Net change in fund balances $ (10,545) $ (50,787) 108,253 $ 159,040 FUND BALANCES:
Beginning of year 55,866
End of year $ 164,119
Budgeted Amounts
132
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual TOT Housing
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Sales and other taxes $ 1,379,071 $ 1,379,071 $ 1,407,464 $ 28,393 Use of money and property - - 31 31
Other, donations, and reimbursements - - 2,736 2,736
Total revenues 1,379,071 1,379,071 1,410,231 31,160
EXPENDITURES:
Current:
Community development 971,906 1,939,331 838,342 1,100,989 Total expenditures 971,906 1,939,331 838,342 1,100,989
REVENUES OVER (UNDER)
EXPENDITURES 407,165 (560,260) 571,889 1,132,149
OTHER FINANCING SOURCES (USES):
Transfers out (513,631) (513,631) (25,590) 488,041
Total other financing sources (uses) (513,631) (513,631) (25,590) 488,041 Net change in fund balances $ (106,466) $ (1,073,891) 546,299 $ 1,620,190 FUND BALANCES:
Beginning of year 2,777,878
End of year $ 3,324,177
Budgeted Amounts
133
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Impact Fees
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Development fees $ - $ - $ 8,299 $ 8,299
Use of money and property - - (5,714) (5,714)
Total revenues - - 2,585 2,585
EXPENDITURES:
Current:
Public safety - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 2,585 $ 2,585
FUND BALANCES:
Beginning of year (102,531)
End of year $ (99,946)
Budgeted Amounts
134
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Enhanced Fire Protection Fund (Measure H)
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Sales and other taxes $ 753,000 $ 753,000 $ 757,266 $ 4,266 Use of money and property - - 10,352 10,352
Total revenues 753,000 753,000 767,618 14,618
EXPENDITURES:
Current:
Public safety 341,150 389,125 260,172 128,953
Total expenditures 341,150 389,125 260,172 128,953
Net change in fund balances $ 411,850 $ 363,875 507,446 $ 143,571 FUND BALANCES:
Beginning of year -
End of year $ 507,446
Budgeted Amounts
135
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Senior Trust Center
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 15,000 $ 15,000 $ 36,594 $ 21,594 Total revenues 15,000 15,000 36,594 21,594
EXPENDITURES:
Current:
Community development 4,500 4,500 4,641 (141)
Total expenditures 4,500 4,500 4,641 (141)
REVENUES OVER (UNDER)
EXPENDITURES 10,500 10,500 31,953 21,453
Net change in fund balances $ 10,500 $ 10,500 31,953 $ 21,453 FUND BALANCES:
Beginning of year 312,247
End of year $ 344,200
Budgeted Amounts
136
Item 6.c
266 of 465
City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Misc. Projects
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Net change in fund balances $ - $ - - $ -
FUND BALANCES:
Beginning of year -
End of year $ -
Budgeted Amounts
137
Item 6.c
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City of Healdsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Debt Service
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ - $ - $ 3,324 $ 3,324
Other, donations, and reimbursements - - 356 356
Total revenues - - 3,680 3,680
EXPENDITURES:
Debt service:
Principal retirement 119,588 119,588 104,858 14,730
interest and fiscal charges 3,330 3,330 2,920 410
Total expenditures 122,918 122,918 107,778 15,140
REVENUES OVER (UNDER)
EXPENDITURES (122,918) (122,918) (104,098) 18,820
OTHER FINANCING SOURCES (USES):
Transfers in 107,778 107,778 107,778 -
Total other financing sources (uses) 107,778 107,778 107,778 - Net change in fund balances $ (15,140) $ (15,140) 3,680 $ 18,820 FUND BALANCES:
Beginning of year 164,943
End of year $ 168,623
Budgeted Amounts
138
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City of Healdsburg
Combining Balance Sheet
General Fund Activities
June 30, 2025
ASSETS
Cash and investments $ 5,539,617 $ 351,475 $ 3,329,496 $ 54,012 $ - Pension stabilization investments 5,380,324 - - - -
Accounts receivable 1,165,308 34,504 - - -
Loans and notes receivable 1,151,170 48,609 - - -
Interest receivable 33,040 24,071 - 294 -
Intergovernmental receivable 1,223,771 553,331 - 471,064 - Lease receivable 386,468 - - - -
Due from other funds 531,579 - - - -
Prepaid items 9,073 - - - -
Total assets $ 15,420,350 $ 351,475 $ 3,990,011 $ 54,306 $ 471,064
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 580,795 $ $ 29,224 $ 62,474 $ - $ (517) Due to other funds - - - - 471,065
Deposits payable 512,253 - - - -
Unearned revenue 711 - - - -
Advances from other funds - 1,813,008 - - -
Total liabilities 1,093,759 1,842,232 62,474 470,548 -
Deferred Inflows of Resources
Lease related 375,437 - - - -
Total deferred inflows of resources 375,437 - - - -
Fund Balances:
Nonspendable 1,160,243 48,609 - - -
Restricted 5,380,324 - - -
Committed - - - - -
Assigned - - - - -
Unassigned 7,410,587 (1,490,757) 3,878,928 54,306 516
Total fund balances 13,951,154 (1,490,757) 3,927,537 54,306 516 Total liabilities, deferred inflows of
resources and fund balances $ 15,420,350 $ 351,475 $ 3,990,011 $ 54,306 $ 471,064 L&M
General Village
Capital
Replacement
Transaction
& Use Tax
Economic
Development
140
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Total General
Funds
$ 3,035 $ 41,491 $ 396,007 $ 9,715,133
- - 5,380,324 -
- - 1,199,812 -
- - 1,199,779 -
- 226 - 57,631
- - 2,248,166 -
- - 386,468 -
- - 531,579 -
- - - 9,073
$ 3,035 $ 41,717 $ 396,007 $ 20,727,965
$ - $ - $ 671,976 - $
- - - 471,065
- - 512,253 -
- - - 711
- - - 1,813,008
- - 3,469,013 -
- - 375,437 -
- - 375,437 -
- - 1,208,852 -
- - 5,380,324 -
41,717 - - 41,717
3,035 396,007 399,042
- - 9,853,580 -
3,035 41,717 396,007 16,883,515
$ 3,035 $ 41,717 $ 396,007 $ 20,727,965
Long Range
Planning
Fund
Community
Benefit
Plaza
Flowers
Veterans
141
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City of Healdsburg
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Activities
For the year ended June 30, 2025
REVENUES:
Property taxes $ 5,800,927 $ - $ - $ - $ -
Sales and other taxes 8,187,004 - 2,782,374 - -
Development fees 79,858 - - - -
Intergovernmental 1,217,055 - - - 811,029
Fines and forfeitures 69,274 - - - -
Licenses and permits 1,986,090 - - - -
Use of money and property 945,470 - 260,470 3,029 -
Charges for services 1,049,122 - 864 - -
Other, donations, and reimbursements 1,562,719 - - - -
Total revenues 20,897,519 3,043,708 - 3,029 811,029
EXPENDITURES:
Current:
General government 4,425,981 2,573,566 205,699 - -
Public safety 14,653,492 - - - -
Community development - - - - 798,154
Total expenditures 19,079,473 2,573,566 205,699 798,154 -
REVENUES OVER (UNDER)
EXPENDITURES 1,818,046 (2,573,566) 2,838,009 3,029 12,875 OTHER FINANCING SOURCES (USES):
Transfers in 1,094,268 2,864,788 - - 25,591
Transfers out (1,108,384) (4,345,038) - - -
Total other financing sources (uses) (14,116) 2,864,788 (4,345,038) 25,591 - Net change in fund balances 1,803,930 291,222 (1,507,029) 3,029 38,466 FUND BALANCES:
Beginning of year 12,147,224 (1,781,979) 5,434,566 51,277 (37,950) End of year $ 13,951,154 $ (1,490,757) $ 3,927,537 $ 54,306 $ 516 General
Capital
Replacement
Transaction
& Use Tax
Economic
Development
L&M
Village
142
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Total General
Funds
$ - $ - $ 5,800,927 - $
- - - 10,969,378
- - - 79,858
- - - 2,028,084
- - - 69,274
- - - 1,986,090
- 2,328 - 1,211,297
- - 26,693 1,076,679
- - - 1,562,719
2,328 - 24,784,306 26,693
- - - 7,205,246
- - - 14,653,492
1,437 - - 799,591
1,437 - 22,658,329 -
(1,437) 2,328 26,693 2,125,977
- - - 3,984,647
- - (5,453,422) -
- - (1,468,775) -
(1,437) 2,328 26,693 657,202
4,472 39,389 369,314 16,226,313
$ 3,035 $ 41,717 $ 396,007 $ 16,883,515
Long Range
Planning
Fund
Community
Benefit
Plaza
Flowers
Veterans
143
Item 6.c
273 of 465
City of Healdsburg
Combining Statement of Net Position
Water Fund Activities
June 30, 2025
Totals
ASSETS
Current Assets:
Cash and investments $ 1,550,781 $ 24,320 $ - $ 2,644,869 $ 4,219,970 Cash and investments with fiscal agents 46 - - - 46
Pension stabilization investments 616,635 - - - 616,635 Accounts receivable 1,354,785 - - 13,142 1,367,927
Interest receivable 9,358 - - 14,545 23,903
Intergovernmental receivable 1,686 2,272,298 - - 2,273,984 Inventory 90,658 - - - 90,658
Total current assets 5,550,759 2,296,618 - 2,672,556 10,519,933 Noncurrent:
Capital assets:
Land 310,781 - - - 310,781
Construction in progress - 7,398,331 - - 7,398,331
Depreciable buildings and improvements 1,443,869 - - - 1,443,869 Depreciable utility systems 37,233,504 - - - 37,233,504 Depreciable equipment 719,216 - - - 719,216
Accumulated depreciation (17,261,263) - - - (17,261,263) Net capital assets 22,446,107 7,398,331 - - 29,844,438
Total noncurrent assets 22,446,107 7,398,331 - - 29,844,438 Total assets 27,996,866 9,694,949 - 2,672,556 40,364,371
DEFERRED OUTFLOWS OF RESOURCES
Pension related 943,629 - - - 943,629
OPEB related 14,363 - - - 14,363
Total deferred outflows of resources 957,992 - - - 957,992
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 122,767 69,098 - - 191,865 Deposits payable 10,776 - - - 10,776
Retention payable 276,606 - - 276,606 -
Interest payable 38,640 - - - 38,640
Bonds payable - current 644,000 - - - 644,000
OPEB liability - current 4,422 - - - 4,422
Total current liabilities 820,605 3,113,330 - - 3,933,935 Noncurrent liabilities:
Bonds payable 2,928,000 - - - 2,928,000
Net pension liability 3,366,011 - - - 3,366,011
Net OPEB liability 95,016 - - - 95,016
Total noncurrent liabilities 6,389,027 - - - 6,389,027
Total liabilities 7,209,632 3,113,330 - - 10,322,962
DEFERRED INFLOWS OF RESOURCES
Pension related 99,620 - - - 99,620
OPEB related 46,908 - - - 46,908
Total deferred inflows of resources 146,528 - - - 146,528
NET POSITION
Net investment in capital assets 18,874,107 7,121,725 - - 25,995,832 Restricted 46 742,397 - 1,449,185 2,191,628
Unrestricted 2,724,545 (1,282,503) - 1,223,371 2,665,413 Total net position $ 21,598,698 $ 6,581,619 $ - $ 2,672,556 $ 30,852,873 Water
Operations
Water Capital
Replacement
Water Debt
Service
Water
Capacity
144
Item 6.c
274 of 465
City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Water Fund Activities
For the year ended June 30, 2025
Totals
OPERATING REVENUES:
Charges for services $ 8,146,449 $ - $ - $ - $ 8,146,449 Development fees 43,066 - - 133,895 176,961
Intergovernmental 71,282 3,855,067 - - 3,926,349
Other 37,829 - - - 37,829
Total operating revenues 8,298,626 3,855,067 - 133,895 12,287,588 OPERATING EXPENSES:
Salaries and benefits 2,547,835 - - - 2,547,835
Maintenance and operations 1,520,584 - - - 1,520,584
Administration 1,270,734 - - - 1,270,734
Depreciation 881,242 - - - 881,242
Total operating expenses 6,220,395 - - - 6,220,395
Operating income (loss) 2,078,231 3,855,067 - 133,895 6,067,193 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 153,888 - - 127,966 281,854
Interest expense (163,251) - - - (163,251)
Total nonoperating revenues (expenses) (9,363) - 127,966 - 118,603 Income before contributions and transfers 2,068,868 3,855,067 261,861 - 6,185,796 CONTRIBUTIONS AND TRANSFERS:
Transfers in 468,890 - 1,000,000 - 1,468,890
Transfers out (430,400) (1,000,000) (38,490) - (1,468,890) Capital contributions 546,792 - - 546,792 -
Total contributions and transfers 116,392 (531,110) 961,510 - 546,792 Change in net position 2,185,260 3,323,957 1,223,371 - 6,732,588 NET POSITION:
Beginning of year 19,413,438 3,257,662 - 1,449,185 24,120,285 End of year $ 21,598,698 $ 6,581,619 $ - $ 2,672,556 $ 30,852,873 Water
Operations
Water Capital
Replacement
Water Debt
Service
Water
Capacity
145
Item 6.c
275 of 465
City of Healdsburg
Combining Statement of Net Position
Sewer Fund Activities
June 30, 2025
Sewer
Operations Drainage
Sewer
Capital
Replacement
Sewer
Capacity
Drainage
Capacity Totals
ASSETS
Current Assets:
Cash and investments $ 3,409,831 $ (12,933) $ 1,084,992 $ 4,453,606 $ 1,684,145 $ 10,619,641 Cash and investments with
fiscal agents 244 - - - - 244
Pension stabilization investments 742,603 161,417 - - - 904,020 Accounts receivable 1,398,173 94,641 - 21,796 6,444 1,521,054 Interest receivable 25,269 - - 24,227 9,197 58,693
Due from other funds 255,435 - - - - 255,435
Inventory 19,538 - - - - 19,538
Total current assets 5,851,093 243,125 1,084,992 4,499,629 1,699,786 13,378,625 Noncurrent:
Advances to other funds - - 906,504 - - 906,504
Capital assets:
Land 682,880 84,022 - - - 766,902
Construction in progress - - 416,251 - - 416,251
Depreciable buildings and 258,359 - - - - 258,359
Depreciable utility systems 74,868,517 12,789,742 - - - 87,658,259 Depreciable equipment 2,044,039 - - - - 2,044,039
Accumulated depreciation (30,533,902) (6,243,697) - - - (36,777,599) Net capital assets 47,319,893 6,630,067 416,251 - - 54,366,211 Total noncurrent assets 47,319,893 6,630,067 1,322,755 - - 55,272,715 Total assets 53,170,986 6,873,192 2,407,747 4,499,629 1,699,786 68,651,340
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding 547,397 - - - - 547,397 Pension related 1,029,413 - - - - 1,029,413
OPEB related 17,509 - - - - 17,509
Total deferred outflows 1,594,319 - - - - 1,594,319
LIABILITIES
Current liabilities:
Accounts payable and 29,919 30,009 6,460 - - 66,388
Due to other funds 318,750 255,435 - - - 574,185
Deposits payable 2,142 - - - - 2,142
Interest payable 145,238 - - - - 145,238
Bonds payable - current 1,235,000 - - - - 1,235,000
OPEB liability - current 6,173 - - - - 6,173
Total current liabilities 1,737,222 285,444 6,460 - - 2,029,126 Noncurrent liabilities:
Bonds payable 15,388,838 - - - - 15,388,838
Net pension liability 3,672,012 - - - - 3,672,012
Net OPEB liability 115,040 - - - - 115,040
Total noncurrent liabilities 19,175,890 - - - - 19,175,890 Total liabilities 20,913,112 285,444 6,460 - - 21,205,016
DEFERRED INFLOWS OF RESOURCES
Pension related 108,676 - - - - 108,676
OPEB related 57,180 - - - - 57,180
Total deferred inflows 165,856 - - - - 165,856
NET POSITION
Net investment in capital assets 31,243,452 6,630,067 416,251 - - 38,289,770 Restricted 244 - 3,417,983 3,656,006 1,513,860 8,588,093 Unrestricted 2,442,641 (42,319) (1,432,947) 843,623 185,926 1,996,924 Total net position $ 33,686,337 $ 6,587,748 $ 2,401,287 $ 4,499,629 $ 1,699,786 $ 48,874,787 146
Item 6.c
276 of 465
City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Sewer Fund Activities
For the year ended June 30, 2025
Sewer
Operations Drainage
Sewer
Capital
Replacement
Sewer
Capacity
Drainage
Capacity Totals
OPERATING REVENUES:
Charges for services $ 9,379,050 $ 812,344 $ - $ - $ - $ 10,191,394 Development fees 43,195 21,861 - 114,082 111,146 290,284 Other 17,708 3,169 - - - 20,877
Total operating revenues 9,439,953 837,374 - 114,082 111,146 10,502,555 OPERATING EXPENSES:
Salaries and benefits 2,937,891 431,870 - - - 3,369,761 Maintenance and operations 1,893,188 174,541 364,487 - - 2,432,216 Administration 1,349,813 196,034 - - - 1,545,847
Depreciation 2,180,190 265,559 - - - 2,445,749
Total operating expenses 8,361,082 1,068,004 364,487 - 9,793,573 - Operating income (loss) 1,078,871 (230,630) (364,487) 114,082 111,146 708,982 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 283,525 13,052 - 237,998 93,809 628,384 Interest expense (616,206) - - - - (616,206)
Total nonoperating
revenues (expenses) (332,681) 13,052 237,998 - 93,809 12,178 Income before contributions
and transfers 746,190 (217,578) (364,487) 352,080 204,955 721,160 CONTRIBUTIONS AND TRANSFERS:
Transfers in - 345,292 - 500,000 845,292 -
Transfers out (741) - (500,000) (8,457) (19,029) (528,227) Capital contributions 461,888 725,480 - - 1,187,368 -
Total contributions and transfers 461,888 724,739 (154,708) 491,543 (19,029) 1,504,433 Change in net position 1,208,078 507,161 (519,195) 843,623 185,926 2,225,593 NET POSITION:
Beginning of year 32,478,259 6,080,587 2,920,482 3,656,006 1,513,860 46,649,194 End of year $ 33,686,337 $ 6,587,748 $ 2,401,287 $ 4,499,629 $ 1,699,786 $ 48,874,787 147
Item 6.c
277 of 465
City of Healdsburg
Combining Statement of Net Position
Electric Fund Activities
June 30, 2025
Electric
Operations
Capital
Replacement
Electric
Public Benefit
Electric Cap &
Trade
Electric
Capacity Totals
ASSETS
Current Assets:
Cash and investments $ 11,611,512 $ 361,587 $ 1,652,870 $ 3,337,883 $ 219,953 $ 17,183,805 Pension stabilization investments 1,060,567 - - - - 1,060,567 Investment in NCPA reserves 5,982,662 - - - - 5,982,662 Accounts receivable 2,415,577 4,019 - 3,113 - 2,422,709 Interest receivable 65,263 - 10,124 18,153 1,196 94,736 Due from other funds 15,000 - - - - 15,000
Inventory 2,649,318 - - - - 2,649,318
Total current assets 23,799,899 365,606 1,662,994 3,359,149 221,149 29,408,797 Noncurrent:
Advances to other funds - 906,504 - - - 906,504
Capital assets:
Land 48,360 - - - - 48,360
Construction in progress - 638,567 - - - 638,567
Depreciable buildings and improvements 447,835 - - - - 447,835 Depreciable utility systems 33,115,662 - - - - 33,115,662 Depreciable equipment 1,001,599 - - - - 1,001,599
Accumulated depreciation (16,350,079) - - - - (16,350,079) Net capital assets 18,263,377 638,567 - - - 18,901,944
Total noncurrent assets 18,263,377 1,545,071 - - - 19,808,448 Total assets 42,063,276 1,910,677 1,662,994 3,359,149 221,149 49,217,245
DEFERRED OUTFLOWS OF RESOURCES
Pension related 1,286,767 - - - - 1,286,767
OPEB related 13,420 - - - - 13,420
Total deferred outflows of resources 1,300,187 - - - 1,300,187 -
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 740,247 4,316 1,208 82,833 - 828,604 Deposits payable 138,475 163,001 - - - 301,476
Interest payable 3,031 - - - - 3,031
Loans payable - current 119,887 - - - - 119,887
OPEB liability - current 2,425 - - - - 2,425
Total current liabilities 1,004,065 171,336 1,208 82,833 - 1,259,442 Noncurrent liabilities:
Loan payable 1,092,565 - - - - 1,092,565
Net pension liability 4,590,015 - - - - 4,590,015
Net OPEB liability 90,481 - - - - 90,481
Total noncurrent liabilities 5,773,061 - - - - 5,773,061 Total liabilities 6,777,126 171,336 1,208 82,833 7,032,503 -
DEFERRED INFLOWS OF RESOURCES
Pension related 135,846 - - - - 135,846
OPEB related 43,827 - - - - 43,827
Total deferred inflows of resources 179,673 - - - 179,673 -
NET POSITION
Net investment in capital assets 18,263,377 638,567 - - 18,901,944 - Restricted 2,007,278 - 1,623,041 2,830,448 206,413 6,667,180 Unrestricted 18,143,287 (906,504) 38,745 445,868 14,736 17,736,132 Total net position $ 36,406,664 $ 1,739,341 $ 1,661,786 $ 3,276,316 $ 221,149 $ 43,305,256 148
Item 6.c
278 of 465
City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Electric Fund Activities
For the year ended June 30, 2025
Electric
Operations
Capital
Replacement
Electric
Public Benefit
Electric Cap &
Trade
Electric
Capacity Totals
OPERATING REVENUES:
Charges for services $ 17,591,540 $ 493,579 - $ $ - $ 18,085,119 - $ Development fees 7,540 - - 2,447 1 9,988
Other 1,743,143 220,782 730,771 1 2,694,697 -
Total operating revenues 19,342,223 220,782 493,580 730,840 2,447 20,789,872 OPERATING EXPENSES:
Purchase of power 4,360,317 - - - - 4,360,317
Salaries and benefits 2,770,864 99,202 - 53,511 2,923,577 - Maintenance and operations 5,794,025 1,095,901 170,414 402,138 7,462,478 - Administration 1,936,172 - - - 1,936,172 -
Depreciation 677,212 - - - - 677,212
Total operating expenses 15,538,590 1,095,901 269,616 455,649 17,359,756 - Operating income (loss) 3,803,633 (875,119) 223,964 275,191 2,447 3,430,116 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 857,896 112,928 - 170,677 12,289 1,153,790 Interest expense (3,031) - - - - (3,031)
Total nonoperating revenues (expenses) 854,865 112,928 - 170,677 12,289 1,150,759 Income before contributions and transfers 4,658,498 (875,119) 336,892 445,868 14,736 4,580,875 CONTRIBUTIONS AND TRANSFERS:
Transfers in 319,793 - - - - 319,793
Transfers out (208,084) (298,147) - - (506,231) -
Capital contributions 1,432,846 - - - 1,432,846 -
Total contributions and transfers 1,224,762 319,793 (298,147) - 1,246,408 - Change in net position 5,883,260 (555,326) 38,745 445,868 14,736 5,827,283 NET POSITION:
Beginning of year 30,523,404 2,294,667 1,623,041 2,830,448 206,413 37,477,973 End of year $ 36,406,664 $ 1,739,341 $ 1,661,786 $ 3,276,316 $ 221,149 $ 43,305,256 149
Item 6.c
279 of 465
City of Healdsburg
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
ASSETS
Current Assets:
Cash and investments $ 5,967,494 $ 116,923 $ 1,606,415 $ 934,037 $ 2,511,164 $ 11,136,033 Accounts receivable 28,088 - 1,339 53,638 - 83,065
Loans and notes receivable - - 3,580 - - 3,580
Interest receivable - 783 9,034 5,209 13,636 28,662
Inventory - 14,368 - - - 14,368
Prepaid items 1,296,448 - - - 1,296,448 -
Total current assets 5,995,582 1,428,522 1,620,368 992,884 2,524,800 12,562,156 Noncurrent:
Capital assets:
Construction in progress - - 91,686 - - 91,686
Depreciable buildings and improvements - - 405,339 - - 405,339 Depreciable equipment 9,364,667 - 2,684,675 3,768,532 - 15,817,874 Accumulated depreciation (6,973,836) - (2,267,291) (2,442,805) (11,683,932) - Net capital assets 2,390,831 - 509,070 1,731,066 4,630,967 - Total noncurrent assets 2,390,831 - 509,070 1,731,066 4,630,967 - Total assets 5,995,582 3,819,353 2,129,438 2,723,950 2,524,800 17,193,123
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 953,079 29,497 197,225 65,054 1,244,855 - Lease liabilities - current - - 48,985 - - 48,985
Compensated absences - current 818,768 - - - 818,768 -
Claims payable - current 77,802 - - - - 77,802
Total current liabilities 1,849,649 29,497 246,210 65,054 2,190,410 - Noncurrent liabilities:
Lease liabilities - 172,689 - - 172,689 -
Compensated absences 3,083,939 - - - 3,083,939 -
Claims payable 195,145 - - - 195,145 -
Total noncurrent liabilities 3,279,084 172,689 - - 3,451,773 - Total liabilities 5,128,733 29,497 418,899 65,054 5,642,183 -
NET POSITION
Net investment in capital assets 2,390,831 - 287,396 1,731,066 4,409,293 - Unrestricted 866,849 1,399,025 1,423,143 927,830 2,524,800 7,141,647 Total net position $ 866,849 $ 3,789,856 $ 1,710,539 $ 2,658,896 $ 2,524,800 $ 11,550,940 150
Item 6.c
280 of 465
City of Healdsburg
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2025
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
OPERATING REVENUES:
Charges for services $ 1,733,764 $ 1,089,292 $ 3,402,160 $ 1,595,958 $ 1,635,953 $ 9,457,127 Intergovernmental - - - 2,043 - 2,043
Other - 7,542 450 40,000 - 47,992
Total operating revenues 1,733,764 1,096,834 3,402,610 1,638,001 1,635,953 9,507,162 OPERATING EXPENSES:
Salaries and benefits 789,325 480,476 921,749 398,373 2,589,923 - Maintenance and operations 13,827 441,780 2,294,180 578,871 1,504,145 4,832,803 Administration 153,693 - 230,241 90,747 474,681 -
Amortization - - 49,455 - - 49,455
Depreciation 955,874 - 109,887 348,122 1,413,883 -
Total operating expenses 803,152 2,031,823 3,605,512 1,416,113 1,504,145 9,360,745 Operating income (loss) 930,612 (934,989) (202,902) 221,888 131,808 146,417 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) - 7,206 95,926 291,311 122,664 517,107 Interest expense - - (7,021) - - (7,021)
Gain (loss) on sale of fixed assets - - - 41,921 - 41,921 Total nonoperating revenues (expenses) - 7,206 88,905 291,311 164,585 552,007 Income before contributions and transfers
930,612 (927,783) (113,997) 513,199 296,393 698,424
CONTRIBUTIONS AND TRANSFERS:
Capital contributions 1,504,145 - - - 1,504,145 -
Total contributions and transfers 1,504,145 - - - 1,504,145 - Change in net position 930,612 576,362 (113,997) 513,199 296,393 2,202,569 NET POSITION:
Beginning of year, as previously presented 980,514 3,213,494 1,824,536 2,145,697 2,228,407 10,392,648 Restatements (1,044,277) - - - (1,044,277) -
Beginning of year, as restated (63,763) 3,213,494 1,824,536 2,145,697 2,228,407 9,348,371 End of year $ 866,849 $ 3,789,856 $ 1,710,539 $ 2,658,896 $ 2,524,800 $ 11,550,940 151
Item 6.c
281 of 465
City of Healdsburg
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2025
Insurance
and Benefit
Vehicle
Maintenance
Information
Services
Building
Maintenance
Vehicle
Replacement Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 1,726,376 $ 1,093,045 $ 3,403,589 $ 1,640,092 $ 1,635,953 $ 9,499,055 Receipts from other operating activities - 7,542 450 40,000 - 47,992 Payments to suppliers 27,746 (1,901,141) (2,385,695) (634,562) (1,528,201) (6,421,853) Payments to employees (985,098) (480,476) (921,749) (398,373) (2,785,696) - Net cash provided by (used) by operating
activities 769,024 (1,281,030) 96,595 647,157 107,752 339,498 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Principal payment on debt - 165,293 - - - 165,293
Net cash provided (used) by
noncapital financing activities - 165,293 - - - 165,293 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Interest paid - - (7,021) - - (7,021)
Cash received (loss) from sale of capital assets - - - - 41,921 41,921 Acquisition and construction of capital assets 1,296,447 - (404,818) (470,312) - 421,317 Net cash provided (used) by
capital and related financing activities 1,296,447 - (411,839) (470,312) 41,921 456,217 CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) - 7,121 96,773 288,880 121,826 514,600 Net cash provided by (used in) investing
activities - 7,121 96,773 288,880 121,826 514,600
Net cash flows 769,024 22,538 (53,178) 465,725 271,499 1,475,608 CASH AND INVESTMENTS - Beginning of
year 5,198,470 94,385 1,659,593 468,312 2,239,665 9,660,425 CASH AND INVESTMENTS - End of year $ 5,967,494 $ 116,923 $ 1,606,415 $ 934,037 $ 2,511,164 $ 11,136,033
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) $ 930,612 $ (934,989) $ (202,902) $ 221,888 $ 131,808 $ 146,417 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization - 955,874 159,342 348,122 1,463,338 - Changes in assets and liabilities:
(Increase) decrease in accounts receivables (7,388) 3,753 1,429 42,091 - 39,885 (Increase) decrease in inventory - 1,272 - - - 1,272
Increase (decrease) in prepaid items (1,296,448) - - - (1,296,448) - Increase (decrease) in accounts payable and
accrued liabilities 41,573 (10,492) 138,726 35,056 (24,056) 180,807 Increase (decrease) in claims payable (41,498) - - - - (41,498) Increase (decrease) in compensated absences (154,275) - - - (154,275) - Net cash provided by (used in) operating
activities $ 769,024 $ (1,281,030) $ 96,595 $ 647,157 $ 107,752 $ 339,498
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contribution $ 1,504,145 - $ $ - $ - $ 1,504,145 - $ 152
Item 6.c
282 of 465
City of Healdsburg
Combining Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2025
ASSETS
Cash and investments $ 3,971,251 $ 5,154 $ 3,976,405
Cash and investments with fiscal agents 2,679,457 - 2,679,457 Interest receivable 26,048 - 26,048
Loans and notes receivable 2,387,756 2,387,756 -
Nondepreciable capital assets 528,300 528,300 -
Total assets 6,913,355 2,684,611 9,597,966
LIABILITIES
Accounts payable and accrued liabilities 2,000 - 2,000
Interest payable 491,578 - 491,578
Long-term liabilities:
Long-term debt - due within one year 2,600,100 - 2,600,100 Long-term debt - due in more than one year 26,789,009 - 26,789,009 Total liabilities 2,000 29,880,687 29,882,687
NET POSITION
Net position held for private purposes 6,911,355 (27,196,076) (20,284,721) Total Net Position $ 6,911,355 $ (27,196,076) $ (20,284,721) Total
Private Purpose Trust Funds
Post RDA
Successor
Agency
Post RDA Debt
Retirement
Fund
153
Item 6.c
283 of 465
City of Healdsburg
Combining Statement of Changes in Fiduciary Net Position Private-Purpose Trust Funds
For the year ended June 30, 2025
ADDITIONS:
Property taxes $ 3,682,854 $ - $ 3,682,854
Use of money and property 142,566 180,824 323,390
Other - 103 103
Transfers in 3,613,978 - 3,613,978
Total additions 3,825,420 3,794,905 7,620,325
DEDUCTIONS:
Community development 7,800 - 7,800
Interest expense 1,031,923 - 1,031,923
Administrative expense 250,000 250,000 -
Transfers out 3,613,978 3,613,978 -
Total deductions 3,871,778 1,031,923 4,903,701
Change in net position (46,358) 2,762,982 2,716,624
NET POSITION:
Beginning of year 6,957,713 (29,959,058) (23,001,345)
End of year $ 6,911,355 $ (27,196,076) $ (20,284,721)
Total
Private Purpose Trust Funds
Post RDA
Successor
Agency
Post RDA Debt
Retirement
Fund
154
Item 6.c
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: March 2, 2026
SUBJECT: Acceptance of General Fund Grant Funds from the State of California for the Villa Chanticleer Modernization Project
PREPARED BY: Tom Campbell, Project Manager
STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
Adopt a Resolution approving the acceptance of General Fund Grant funds from the State of California Natural Resources Agency for the Villa Chanticleer Modernization Project, approving the associated Project Information Package required by the State for said grant funds, authorizing the City Manager to execute a Grant Agreement and all grant related documents on behalf of the City, and amending the Fiscal Year 2025-2026 budget.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
In December 2024, staff from California Senate President Pro Tempore Mike McGuire’s office requested information from City staff on capital improvement needs at Villa Chanticleer. Senator McGuire was successful in securing $1.5 million in State funding, which was allocated as part of the State’s 2025 budget process. City staff received notification in Fall 2025 that the funding will be administered as a General Fund Grant through the California Natural Resources Agency (CNRA).
DISCUSSION/ANALYSIS:
With this agenda item, staff seeks City Council’s approval to move ahead with the grant process.
The State’s expectations for the proposed project are improvements to the Villa’s kitchen and bar.
ADA access compliance improvements at the building’s main entrance will also be required. Staff are exploring additional elements that could be included in the project if funding allows. This work may include exterior siding repair and repainting, floor refinishing, etc.
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The grant includes a land tenure term requirement, which stipulates that the Villa Chanticleer must operate as a community event center for 25 years, during which time the City shall not use or allow the use of any portion of the property as security for any debt or for mitigation (i.e., to compensate for adverse changes to the environment elsewhere) without the written approval of the State. The State recognizes that specific activities on the project property may change over time; however, all uses on the property must remain consistent with the authorizing legislation, and a deed of restriction may be required. The grant agreement must be executed no later than May 1, 2026, and funds must be fully expended and all invoices for reimbursement be submitted to the State by March 1, 2028.
Staff is working with Milestone Events Group to coordinate the grant work around the Villa’s event bookings. Currently, Milestone has a hold on booking any events from January 1, 2027 through April 9, 2027, to accommodate the proposed work. Staff acknowledges that completing the project scoping, design and construction drawings, bidding, and contracting to meet this timeline is aggressive and may require reprioritizing other planned projects.
Staff also requests City Council’s approval of a budget amendment to appropriate funding in the Capital Improvement Program for expenditures and grant appropriations related the Villa Chanticleer Modernization Project.
ENVIRONMENTAL STEWARDSHIP:
New kitchen and bar appliances to be energy efficient.
ALTERNATIVES:
City Council could choose not to accept the funding from the State of California and provide direction to staff.
FISCAL IMPACT:
The proposed grant agreement with the State of California is for a total of $1.5 million. The reimbursable grant requires no matching funds from the City, and project implementation would be scoped so that the work does not exceed the available grant funding.
To accommodate the proposed improvements to the Villa Chanticleer, staff propose amending the adopted budget to appropriate the grant revenue and establish a new project. The proposed Villa Chanticleer Modernization Project CS007 will be funded on a reimbursement basis. Expenses are anticipated to begin immediately after execution of the grant agreement.
ENVIRONMENTAL ANALYSIS:
Approving a grant agreement is not subject to the provisions of the California Environmental Quality Act (CEQA) because approving a grant agreement is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment. In addition, potential improvements to the Villa Chanticleer as a result of the grant agreement are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA 6 14 CCR 15061(b). Guidelines Section 15301 (exemption for existing facilities) because the improvements consist of the maintenance and minor alteration of existing an existing public facility, involving negligible or no expansion of existing or former use.
ATTACHMENT(S):
Resolution
Exhibit A
Villa Chanticleer Modernization Project Information Package Item 6.d
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CITY OF HEALDSBURG
RESOLUTION NO. -2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG APPROVING THE ACCEPTANCE OF
GENERAL FUND GRANT FUNDS FROM THE STATE OF
CALIFORNIA NATURAL RESOURCES AGENCY FOR THE
VILLA CHANTICLEER MODERNIZATION PROJECT,
APPROVING THE ASSOCIATED PROJECT INFORMATION
PACKAGE REQUIRED BY THE STATE FOR SAID GRANT
FUNDS, AUTHORIZING THE CITY MANAGER TO EXECUTE
THE GRANT AGREEMENT AND ALL GRANT RELATED
DOCUMENTS ON BEHALF OF THE CITY, AND AMENDING
THE FISCAL YEAR 2025-2026 BUDGET
WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and
WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require the grantee to certify by resolution the approval of a Project Information Package before submission of said Package to the State; and
WHEREAS, the Grantee will enter into an Agreement with the State of California for the above project; and
WHEREAS, staff has reviewed the State’s Procedural Guide for the General Fund Specified Grants – development and acquisition projects and concurs with the terms and conditions; and
WHEREAS, City Council has determined that approving a Grant Agreement is not subject to the provisions of the California Environmental Quality Act (CEQA) because approving a grant agreement is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment. In addition, potential improvements to the Abel De Luna Community Center as a result of the grant agreement are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA 6 14 CCR 15061(b). Guidelines section 15301 (exemption for existing facilities) because the improvements consist of the maintenance and minor alteration of existing an existing public facility, involving negligible or no expansion of existing or former use.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
1. Approves the acceptance of a general fund allocation for local assistance for the above project; and
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Resolution No. -2026
2. Certifies the grantee understands the assurances and certification in the project information form; and
3. Certifies the grantee will have sufficient funds to acquire and/or develop, operate and maintain the project consistent with the land tenure requirements of the grant agreement; or will secure the resources to do so; and
4. Certifies the grantee will comply with the prevailing wage provisions of the California Labor Code; and
5. If applicable, certifies the project will comply with any laws and regulation including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, disabled access laws, environmental laws and, that prior to commencement of construction, all applicable licenses and permits will have been obtained; and
6. Appoints the City Manager as agent to conduct all negotiations, execute and submit all documents including, but not limited to the project information form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project; and
7. Authorizes the City Manager to execute the grant agreement and all grant related documents on behalf of the city; and
8. Amends the fiscal year 2025-2026 adopted budget as depicted on the attached Exhibit A; and
9. Finds that approving a grant agreement is not subject to the provisions of the California Environmental Quality Act (CEQA) because approving a grant agreement is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.
In addition, potential improvements to the villa chanticleer as a result of the grant agreement are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA 6 14 CCR 15061(b). Guidelines section 15301 (exemption for existing facilities) because the improvements consist of the maintenance and minor alteration of an existing public facility, involving negligible or no expansion of existing or former use.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Healdsburg this 2nd day of March 2026, by the following vote:
SO ORDERED: ATTEST:
__________________________________ _________________________________ J. Chris Herrod, Mayor Raina Allan, City Clerk
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Resolution No.
Exhibit A
Account Number Increase Amount Decrease Amount Description 582-3001-45000-CS007 $ 1,500,000 Establish Budget for Villa Chanticleer Modernization Project CS007 582-1000-34103-00000 $ 1,500,000 Establish California Natural Resources Agency Grant Revenue for Project CS007 FY 25-26 Budget Amendment
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PROJECT INFORMATION FORM
Project Name Estimated Date of Completion: 6/15/2027
Villa Chanticleer Modernization Project Grant Amount: $1,500,000.00 Estimated Total Project Cost: $1,500,000.00
(State grant, other funds, and in-kind)
Grantee Name (with mailing address) County Nearest City/Town City of Healdsburg Check one: Sonoma Healdsburg
401 Grove Street ☐ Nonprofit Project Address (or nearest cross street) Healdsburg, CA 95448 ☒ Local Agency 900 Chanticleer Way ☐ State Agency Healdsburg, CA 95448
Senate Dist. Assembly Dist. US Congressional Dist.
02 02 CA 02
Grantee’s Representative Authorized in Resolution (Signature required at bottom of this page) Name: Jeff Kay Title: City Manager
Phone: 707-431-3452 Email: [email protected]
Project Manager – Person with day-to-day responsibility for project (if different from authorized representative) Name: Tom Campbell Title: Project Manager
Phone: 707-431-3152 Email: [email protected]
Brief Description of Project Latitude Longitude
(Summarize major activities to be funded by this Grant) 38.621704 -122.848694 Villa Chanticleer is an historic property owned by the City of Healdsburg and managed by Milestone Events Group. The
property is cherished by the Healdsburg community but in need of major reinvestment due to its age. Grant funding will be used for as-built services (measured existing condition drawings), design and construction of kitchen and bar
improvements and accessibility compliance (barrier
removal), and food facility permitting. Additional
improvements, as funding allows, include fire sprinkler repairs and HVAC upgrades.
Site Control/Land Tenure (check the box that applies)
☒ Grantee owns the property
☐ Grantee leases the property –
Term End: Enter date
☐ Grantee owns an easement on the property.
☐ Grantee has an MOU with the property owner.
☐ Not applicable – Project is a plan or program.
I certify that the information in this Project Information Form, including all attachments, is complete and accurate.
Signed: Enter date
Grantee’s Authorized Representative as shown in Resolution Date Jeff Kay City Manager Designee? ☐ Yes ☒ No
Print Name Title (If yes, attach letter of designation from authorized representative.)
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Total Cost*
General Fund
Grant
Other Funding
Source
(Name)
Other Funding
Source
(Name)
Other Funding
Source
(Name)
1.0 1.1 $ -
1.2 $ -
2.0 2.1 275,000.00 $ 275,000.00
2.2 275,000.00 275,000.00 - - -
3.0 3.1 510,000.00 $ 510,000.00
3.2 100,000.00 $ 100,000.00
3.3 200,000.00 $ 200,000.00
4.0 4.1 35,000.00 $ 35,000.00
4.2 100,000.00 $ 100,000.00
4.3 $ -4.4 $ -
5.0 5.0 55,000.00 $ 55,000.00
5.1 $ -
1,000,000.00 1,000,000.00 - - -
$ - 225,000.00 225,000.00 1,500,000.00 1,500,000.00 - - -
COST ESTIMATE FOR VILLA CHANTICLEER MODERNIZATION PROJECT
TOTAL NON-CONSTRUCTION
Bar ImprovementsConstruction ActivityKitchen Improvements
PROJECT ELEMENTS
Project AdministrationNon-Construction ActivityAs-Built Services, Design & Cost Estimating Contingency
PROJECT GRAND TOTAL
*All invoices and receipts for project expenditures from all funding sources will be retained and made available for state audit. **Grantee’s staff labor must be computed on actual time spent on the project and evidenced by time and attendance records describing work performed. Only salary plus benefits are eligible. No indirect rates or overhead costs may be folded into the hourly rate. No billable rates may be used. ***Indirect costs are allowable and generally limited to 15% of total direct costs of the grant.
Access ComplianceConstruction ActivityHVAC UpgradesConstruction ActivityConstruction Administration Indirect Costs***
TOTAL CONSTRUCTION
Fire Sprinkler Repairs
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State of California
Financial Information System for California (FI$Cal)
GOVERNMENT AGENCY TAXPAYER ID FORM
2000 Evergreen Street, Suite 215
Sacramento, CA 95815
www.fiscal.ca.gov
1-855-347-2250
The principal purpose of the information provided is to establish the unique identification of the government entity.
Instructions: You may submit one form for the principal government agency and all subsidiaries sharing the same TIN. Subsidiaries with a different TIN must submit a separate form. Fields marked with an asterisk (*) are required. Hover over fields to view help information. Please print the form to sign prior to submittal. You may email the form to: [email protected], or fax it to (916) 576-5200, or mail it to the address above.
Principal
Government
Agency Name*
Remit-To
Address (Street
or PO Box)*
City* State * Zip Code*+4
Government Type: City County
Special District Federal
Other (Specify)
Federal
Employer
Identification
Number
(FEIN)*
List other subsidiary Departments, Divisions or Units under your principal agency's jurisdiction who share the same FEIN and receives payment from the State of California.
Dept/Division/Unit Complete
Name Address
Dept/Division/Unit
Name
Complete
Address
Dept/Division/Unit
Name
Complete
Address
Dept/Division/Unit
Name
Complete
Address
Title
E-mail address
Contact Person*
Phone number*
Signature* Date
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PROJECT INFORMATION PACKAGE CHECKLIST
Before a Grant Agreement can be developed, Grantee must send a completed Project Information Package (“Package”) to Agency. Grantee should keep a complete copy of the Package for future use and reference.
All applicable documents must be submitted to Agency along with the checklist below.
Grantee should check the appropriate box indicating a document is included in the Package or is not applicable to the project.
Required for All Projects
Project Information Form (Section G) ☒
Project Summary ☒
Authorizing Resolution (Section I) ☒
Cost Estimate (Section J or K) ☒
Development Project Timeline (Section L) ☒
Property Data Sheet (Section M) ☒
Proof of Ownership ☒
Photos of the Project Site ☒
Payee Data Form (Std. 204 for nonprofits; Gov. TIN Form for government entities) (Section O) ☒
Additional Documents for Development Projects
Site Control/Land Tenure ☒
Site Plan ☒
Additional Documents for Acquisition Projects
Willing Seller Letter(s) (Section P) ☐
Appraisal, Preliminary Title Report, if available ☐ If Conservation Easement, provide description of restrictions, reservations, and funding mechanism for long term stewardship ☐ Item 6.d
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PROJECT SUMMARY
Villa Chanticleer Modernization Project (Healdsburg, CA) Established in 1910 on Healdsburg’s Fitch Mountain, Villa Chanticleer began as a Frenchthemed resort for San Francisco residents known for its scenic and secluded atmosphere.
The City of Healdsburg purchased the property in the late 1950s, transforming it into a popular, historic community center for weddings and events. In 2022, the City entered into an agreement with Milestone Events Group for management and operation of the Villa Chanticleer on the City’s behalf. The historic property remains an important part of Healdsburg and is cherished by the community.
Villa Chanticleer needs major reinvestment to keep the historic building and property operational. The catering kitchen and bar areas are outdated with obsolete equipment, inefficient workspaces, compromised flooring, and misaligned window frames. In addition, the building’s main entrance has access deficiencies including ADA parking spaces and a pedestrian ramp that are not up to code. There are leaks in the fire sprinkler system, and the HVAC system is rapidly aging. The Modernization Project will include the following:
As-Built Services
• Measured drawings and existing condition drawings of the historic facility to assist with current and future projects
Design and Cost Estimating Services
• Schematic design and cost estimates to refine scope of work • Design development and construction drawings for bidding Construction
• Kitchen renovation with new appliances, prep tables, sinks, flooring, and windows • Bar renovation with new appliances, improved circulation, and accessible seating • Front entry improvements for access compliance including barrier removal at ADA parking, building entry ramp, and front porch
• Fire sprinkler repairs
• HVAC improvements and upgrades
Permitting
• Food facility plan check and operating permit from Sonoma County Department of Environmental Health
The project will serve the Healdsburg community and visitors to Villa Chanticleer. The project will take approximately 15 months to complete from grant agreement execution through project close out and final payment request.
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VILLA CHANTICLEER MODERNIZATION PROJECT TIMELINE
Activity Description Timeline
Preliminary project work April 2026 – May 2026
Design Completed May 2026 - August 2026
CEQA completed August 2026
Construction contract awarded October 2026
Construction period January 2027 - April 2027
Submit Project Closeout Package with final Payment Request June 2027 Item 6.d
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APPENDIX H – PROPERTY DATA SHEET
Complete the Property Data Sheet listing each parcel included in the proposed project, as well as the owner(s) of each parcel. Include any clarifying comments below. Attach additional sheets if necessary.
No Owner Name
Assessor Parcel
Number(s) Acreage
If parcel(s)
owned by
applicant(s),
indicate type of
ownership
For all parcels, indicate
document used to
demonstrate ownership
If parcel(s) not owned by
applicant(s), indicate
document verifying
long-term permission to
develop and maintain
Fee SimpleEasementOther(describe)
Entity to perform O&M
# of years O&M to beperformed
Proof of Ownership (tax
bill, grant deed, etc.)
O&MAgreementLeaseJPALetter fromOwnerOther(describe)
1 2
3 4
5 6
7 8
9 10
Comments:
Total Number of Parcels: Total Number of Acres:
Complete the Property Data Sheet listing each parcel included in the proposed project, as well as the owner(s) of each parcel. Include any clarifying comments below. Attach additional sheets if necessary.
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Villa Chanticleer, 900 Chanticleer Way, Healdsburg
Sonoma County, Bureau of Land Management, Esri, HERE,
Garmin, INCREMENT P, USGS, EPA, USDA
Building Footprints
Built
Proposed
Parcels
2/11/2026, 2:31:33 PM
0 110 220 440 ft
0 30 60 120 m
1:2,257
Tom Campbell
Sonoma County, Bureau of Land Management, Esri, HERE, Garmin, INCREMENT P, USGS, EPA, USDA | Item 6.d
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Villa Chanticleer, 900 Chanticleer Way, Healdsburg
Sonoma County, Bureau of Land Management, Esri, HERE,
Garmin, INCREMENT P, USGS, EPA, USDA
Parcels
Healds2019.tif
2/11/2026, 2:32:55 PM
0 110 220 440 ft
0 30 60 120 m
1:2,257
Tom Campbell
Sonoma County, Bureau of Land Management, Esri, HERE, Garmin, INCREMENT P, USGS, EPA, USDA | Item 6.d
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VILLA CHANTICLEER
MODERNIZATION PROJECT
– SITE PHOTOS
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SITE PHOTOS
Building Entry
Catering Kitchen
Bar
Dining Rooms
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BUILDING ENTRY
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CATERING
KITCHEN
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5 CATERING KITCHEN
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6 BAR
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DINING ROOMS
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Contractor/Consultant Name: __________________________________________________________ Description of Services: _______________________________________________________________ Department: ________________________ Project Manager __________________Phone: ____________ Initial Contract Amount: _______________ (if over $50,000 must also complete Section 1 below) Initial Contract ____ Begin Date __________________ End date_________________ If contract has multiple years, then encumbrance should be applied in the following manner:
Year 1_________ Year 2 __________ Year 3__________ Year 4___________ Year 5___________ CPI increase per year: Yes ____ No ____
List all Amended amounts: _____Amendment #1- Amount $ _____________ End Date____________ _____Amendment #2- Amount $ _____________ End Date____________ _____Amendment #3- Amount $ _____________ End Date____________ _____Amendment #4- Amount $ _____________ End Date____________ _____Other Amount $______________ End Date_____________ Total Contract Amount: _______________________
Funding Source: _________________________________________ Budgeted: Yes _______ No _______ (Include Acct# and Project #) (If no, explain on attached sheet) Is applicant reimbursing the City for cost? Yes_____ No_____ If yes, attach Reimbursement Agreement.
Andrew Sturmfels, Administrative Services Director/Risk Manager: ____________________________ Check all that apply: Certificate(s) of Insurance attached: GL____ Auto ___ Excess ____ W/C* ____ Prof (E&O) ____ *Workers’ Comp Declaration _____ Other __________________________ Business License No.: __________________ Expiration Date: _______________ ____W-9 (if new vendor) _________________________________________
Department Head Signature
Section 1 - Only applicable for agreements in excess of $50,000 City Council approval date____________________________ Resolution No. ___________ Section 2 –
DocuSign will deliver a fully executed copy of the agreement to the Consultant, City Clerk, Central Services, Project Manager, and Finance Department.
Central Services will place PDF agreement in Tommy Library, index agreement information, place insurance in electronic folder, and enter insurance information into Fastrack.
AGREEMENT CHECK LIST
DocuSign Envelope ID: 3EA58DC2-C507-4AE1-85CC-2875356E9D44 June 30, 2027
X
431-3116
June 21, 2022
N/A
X
July 1, 2022
Mark Themig
Milestone Events Group, LLC
X
X
Events Management Agreement- Villa Chanticleer
Community Services
X
X X
Liquor Liability
X X
94-2022
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EVENTS MANAGEMENT AGREEMENT
THIS EVENTS MANAGEMENT AGREEMENT (the “Agreement”) is entered into as of July 1, 2022 (the “Effective Date”) by and between Milestone Events Group LLC, a California limited liability company (“Milestone”) and CITY OF HEALDSBURG, a California municipal corporation (“City”) (each a “Party” and collectively the “Parties”).
RECITALS
A. City is the owner and operator of real estate and improvements thereon, located at 860-900 Chanticleer Way, Healdsburg, CA 95448 and depicted on Exhibit 1 attached hereto (the “Property”). The Property is improved with an event center known as Villa Chanticleer (the “Villa”), a garden with a gazebo, a storage shed, a gravel picnic area with picnic tables and a barbeque (“Picnic Area”), a City-owned building called the “Villa Annex”, a building known as the “Caretaker’s Cottage,” two other stand-alone buildings (“Outbuildings”), landscaping, trees, walkways, parking areas, drive aisles, fences, and gates. The Villa Chanticleer, Caretaker’s Cottage, the Outbuildings, Picnic Area, garden, gazebo, and storage shed are hereinafter referred to as the “Premises.” The Villa, Villa Annex, Caretaker’s Cottage, Outbuildings, and storage shed are each referred to as a “Building.” The parking areas, other drive aisles, walkways, fences, gates, trees, landscaping, fire hydrants, storm drains, irrigation lines and utility lines located outside of a Building are hereinafter referred to as “Common Areas.” B. Milestone is in the business of marketing, booking, organizing, hosting and managing events including, without limitation, banquets, weddings, fundraisers, parties, corporate gatherings, and community meetings (each an “Event” and collectively “Events”).
C. On the terms, conditions set forth herein, City wishes to engage Milestone to manage Events on the Premises and, on some occasions, the Villa Annex, and allow Milestone to use the Premises, Villa Annex, and Common Areas in connection therewith.
AGREEMENT
In consideration of the foregoing and other consideration, the adequacy of which is hereby agreed, the Parties agree as follows:
1. Engagement and Use Rights. City grants Milestone the rights pertaining to Event Planning Services described in Section 7 and, in connection therewith, the following use rights on the terms and conditions set forth in this Agreement:
1.1 The exclusive right to use the Premises;
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1.2 The exclusive right to use those certain parking spaces in the area outlined in red as shown on Exhibit 1;
1.3 The non-exclusive right to use other Common Areas;
1.4 The right to use the Villa Annex subject to the Legion Lease (as defined in Section 8).
2. Consideration. In consideration for the rights granted herein, Milestone will waive certain Event rental fees and offer discounts for certain other Event rental fees as set forth in Section 7.4.
3. Use. The Property will be used solely for Events and for no other use or purpose whatsoever, except as provided in Section 4 or with City’s prior written consent.
4. Caretaker’s Cottage. The Caretaker’s Cottage shall be used as a private dwelling for the person designated as caretaker for the Villa Chanticleer by Milestone and approved in writing by the City (“Caretaker”). No one other than the Caretaker and his or her immediate family (spouse, domestic partner, and/or children) may inhabit the Caretaker’s Cottage without the prior written consent of the City. Milestone shall enter into an agreement, subject to City’s approval, with Caretaker on the following terms:
4.1 Caretaker shall have the right to use the Caretaker Cottage so long as Caretaker is an employee of Milestone and shall comply with all laws, statutes, ordinances and requirements of city county, state and federal authorities now or later in force pertaining to the use of Caretaker Cottage.
4.2 Caretaker shall be responsible for monitoring the Property and calling 911 and notifying the City of any emergencies.
4.3 Caretaker shall not have pets at the Property other than one (1) domestic pet, such as a dog, cat, or bird without the prior written consent of the City.
4.4 The Caretaker’s Cottage and surrounding area must be kept free of outdoor storage, litter, etc. and must be maintained in a clean and orderly manner at all times.
4.5 The Caretaker may keep a maximum of two vehicles at the Property on an ongoing basis. Any additional vehicles kept at the Property on an ongoing basis must be approved in writing by the City. Caretaker may not repair any automobiles or any other motor vehicles, heavy machinery, or equipment on the Property without prior written consent of the City.
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4.6 Caretaker shall not renovate, paint, paper or otherwise redecorate or make alterations to the Cottage without the prior written consent of the City.
4.7 Caretaker shall not commit or allow any person to commit any act resulting in the destruction, defacement, damage, impairment, or removal of any part of the Cottage, including wall, ceiling, and floor coverings, and the furniture, fixtures, and furnishings.
4.8 Caretaker shall be responsible for damages caused by Caretaker’s negligence and that of the Caretaker’s family, invitees and guests.
5. Term.
5.1 Initial Term. Unless sooner terminated pursuant to Sections 24 or 27, the initial term of this Agreement shall commence on the Effective Date and expire five (5) years thereafter (“Initial Term”). The term “Year” as used in this Agreement shall mean the time period commencing on July 1 in a given year and ending on June 30 of the following calendar year.
The first Year shall start on July 1, 2022 and end on June 30, 2023 (“First Year”).
5.2 Extension Options. Provided (i) Milestone is not in default under the terms of this Agreement at the time each renewal option is exercised or at the commencement of the applicable Extension Term (as hereinafter defined) and (ii) Milestone has not been in default more than twice in any twelve (12) month period, Milestone shall have the option to extend the Term for one (1) successive period of five (5) year(s) (the "Extension Term"). The Extension Term shall be on all the terms and conditions of this Agreement. There shall be no additional extension terms beyond the Extension Term set forth herein. Milestone must exercise its option to extend this Agreement as to the Extension Term by giving City twelve (12) months written notice prior to the end of the Term of Milestone’s election to exercise its extension option. Any notice not given in a timely manner shall be void at City's election, and Milestone shall be deemed to have waived its extension rights. The extension option set forth herein is personal to Milestone and shall not be included in any assignment of this Agreement. The Initial Term and any Extension Term shall hereinafter be referred to as the “Term.”
6. Utilities. Milestone, at its sole cost and expense, shall be responsible and directly contract and pay for any and all utilities and services required or desired by Milestone in connection with its use or occupancy of the Property, including: (ii) water; (iii) gas, if applicable; (iv) electricity; (vi) telephone, computer, internet, communications; and (viii) any other utilities (individually and collectively “Utility Services”).
7. Events. Milestone shall have the exclusive right to market, book, organize, host and manage, pursuant to this Agreement, Events at the Property, including Events for third parties, DocuSign Envelope ID: 3EA58DC2-C507-4AE1-85CC-2875356E9D44 Item 6.d
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