Hollister City Council
January 5, 2026

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12: EXCESS OF EXPENDITURES AND TRANSFERS OVER APPROPRIATIONS The following fund had excess expenditures and/or transfers over appropriations:

Fund Excess
General Fund $5,182,641
CIP Traffic Impact Fees 1,817,527
Local Transportation 10
Road Repair & Accountability 795,666
Federal Aviation Admin Grant 94,377
4th of July Rally 397
Spay/Neuter Education 1,421
Mello Roos CFD-001 278,165
Police Special Law Enforcement 15,258
2013 CDBG 11
2020 CDBG 144,698
FEMA - COVID 19 7,790
CARES Act 8
Fire Impact Fees 4,008
Police Impact Fees 3,402
AB 1600 Santa Ana Storm Drain 11,925
Jail Juvenile Hall 483,949
City Hall/City Yard Impact Fees 835
The excess expenditures were covered by available fund balance in the fund.

NOTE 13: DEFICIT FUND BALANCE/UNRESTRICTED NET POSITION As of June 30, 2022, the following governmental funds had a fund deficit:

Fund Deficit
Local Transportation $201
Road Repair & Accountability 1,165,798
4th of July Rally 260,795
SAFER Grant 100,708
Mello Roos CFD-001 21,973
2017 CDBG 257,469
2020 CDBG 116,093
FEMA - COVID 19 741,715
As of June 30, 2022, the following proprietary funds had a negative unrestricted net position:

Fund Deficit
Airport $484,693
Street Sweeping 2,346,801
These deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues and expenditure reductions.
73

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 14: RISK MANAGEMENT
The City manages risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters by participating in the public entity risk pool described below and by retaining certain risks.

Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California which exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these risk pools are not the member's responsibility.

Risk Coverage
The City is a member of the Monterey Bay Area Self Insurance Authority (MBASIA). MBASIA provides coverage against risks under terms of joint-powers agreement with the City and several other cities and governmental agencies. MBASIA covers losses in excess of $10,000 for members of the liability group and carries excess insurance for losses between $1,000,000 and $20,000,000. Members of the workers' compensation group pay temporary disability claims, while MBASIA pays for permanent disability claims, medical costs, rehabilitation costs, and legal costs and carries excess workers' compensation coverage for between $500,000 and statutory.

Audited financial statements for MBASIA can be obtained from their management at 100 Pine Street, 11th Floor, San Francisco, CA 94111.

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

The City's deposits with MBASIA are in accordance with formulas established by MBASIA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

NOTE 15: COMMITMENTS AND CONTINGENCIES
Litigation
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are adequately covered by insurance and not expected to result in a material adverse financial impact on the City.

Grant Awards
Under the terms of Federal and State grants, audits may be required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to requests for reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial. 74

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 15: COMMITMENTS AND CONTINGENCIES (CONTINUED)
Hollister Urban Area Agreement for Operation and Maintenance Services In August 2013, SSCW D and SBCW D each approved the Hollister Urban Area Agreement for Operation and Maitenance Services. This agreement establishes SSCW D as the contract operator for the Lessalt W ater Treatment Plant. This agreement was established for a term of 5 years with options to renew for subsequent terms of 5 years.

SSCW D began operating the Lessalt plant in September 2013 under this agreement. The operation of the W est Hills Water Treatment Plant was added to the agreement prior to completion of the plant construction in 2017. The operation and Maitenance Agreement covering the operation of both the Lessalt and West Hills Water Treatment Plant was extended in May 2018.

For the year ended June 30, 2022, SBCW D was billed for actual operations and maitenance costs of the Lessalt Water Treatment Plant of $1,050,845 and of the West Hills Water Treatment Plant of $1,688,896, including labor and benefits. One-half of these amounts were charged to the City for its 50% share of the cost to operate the plants.

Postclosure
The City has postclosure responsibilities for one landfill site. State and federal laws and regulations required that the City place a final cover over its closed landfill and perform certain maintenance and monitoring functions at the landfill site for 30 years following its closure. The landfill was closed in 1984. Closure procedures have been performed and post-closure activity is recorded in the general fund. The City is required by state and federal laws and regulations to make annual contributions to finance postclosure care costs. At June 30, 2022, the City holds funds in the amount of $751,586 for this purpose.

NOTE 16: RELATED PARTIES
During the fiscal year, the City engaged in transactions with entities that have affiliations with members of the City’s Airport Advisory Commission. These transactions meet the criteria for related party disclosures under GASB standards.
During the fiscal year, the City recognized $104,348 in lease revenue from lease agreements with Wisk Aero, an entity affiliated with a member of the Airport Advisory Commission. The City also incurred $4,742,514 in expenses under a contract with 4Leaf Engineering, and entity affiliated with a member of the Airport Advisory Commission.

These transactions were conducted in accordance with applicable laws and regulations and were approved through the City's standard procurement and contracting processes. Members of the Aiport Advisory Commission did not participate in decisions related to these agreements.
75

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17: TAX ABATEMENT
The City of Hollister has entered into two hotel incentive agreements under the City’s Hotel Incentive Program (HIP), established to encourage the development and operation of high-quality lodging facilities within the City. These incentives are authorized under Resolution 2017-223 and governed by the Operations Covenant Agreements with each hotel operator. The purpose of the HIP is to promote tourism, expand visitor-serving amenities, and stimulate economic development by reimbursing a portion of Transient Occupancy Taxes (TOT) generated by qualifying hotels.

A. Marriott Fairfield Inn & Suites - Hollister Hotel LP (390 Gateway Drive) In 2014, the City Council approved an Impact Fee Deferral Program and directed staff to develop a Transient Occupancy Tax Incentive Program to support the financing of a new three-diamond quality hotel. The Council subsequently approved the Hotel Incentive Program (HIP) and executed an Operations Covenant Agreement with Hollister Hotel LP, developer of the 77-room Fairfield Inn & Suites by Marriott.

Under the agreement, the City remits 70% of annual TOT generated by the hotel until the operator receives a maximum of $2,000,000, or for 15 years, whichever occurs first.

As of June 30, 2022, the City has rebated $914,130 in TOT to the hotel operator under the HIP.

B. Holiday Inn Express & Suites - Hollister Gateway Hotel LP (391 Gateway Drive) In 2020, the City entered into a second Operations Covenant Agreement with Hollister Gateway Hotel LP, developer of the 93-room Holiday Inn Express & Suites, which also qualified as a Quality Service Hotel under the HIP. The program terms mirror those granted to the Marriott project, providing the operator with reimbursement of 70% of annual TOT, a maximum subsidy of $2,000,000, a term of 10 years, with the potential for a 5-year extension at 33% reimbursement.

Payments commence after the hotel begins operations and submits TOT to the City in accordance with Chapter 3.32 of the Hollister Municipal Code.

As of June 30, 2022, the Holiday Inn project remained within the early stages of program eligibility, and total TOT reimbursements to date is $3,590.

NOTE 18: PRIOR PERIOD ADJUSTMENTS
Change in Accounting Principle
For June 30, 2022, the City implemented GASB Statement No. 87, Leases. These changes were incorporated in the financial statements, but had no effect on the beginning net position of the governmental activities, business-type activities or the beginning fund balance of the governmental funds, since the value of the right-to-use asset equaled the amount of the lease liability and deferred inflows equal the amount of the lease receivable. 76

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 18: PRIOR PERIOD ADJUSTMENTS (CONTINUED)
As a result of a grant reconciliation, the City recorded the following prior period adjustment related to matching of grant funds and recognition of grant revenue in the governmental funds:

Beginning Fund
Balance
Increase
(Decrease) to Fund
Balance
Beginning Fund
Balance Restated
Governmental Funds - Fund Balance
Federal Aviation Admin Grant $-$150,000 $150,000
2013 CDBG $4,426 142,604 $147,030
Total Governmental Funds Restatement $292,604
In addition, as a result of recalculation of accrued interest on notes receivables, the governmental net position has been adjusted as follows:

Governmental
Activities Net
Position
Beginning Net Position $86,297,896
Fund restatements above 292,604
Accrued interest on notes receivable (471,986)
Beginning Net Position, Restated $86,118,514
As a result of a W ater Fund reconciliation, the City recorded the following prior period adjustments related to an over payment to San Benito County W ater District and a water asset and related debt from a 2013 agreement:

Business-type
Activities Net
Position
Beginning Net Position $86,517,230
Record reimbursment 106,344
Record water rights asset and contract payable 123,277
Beginning Net Position, Restated $86,746,851
NOTE 19: SUBSEQUENT EVENTS
Defeasance & Redemption of the 2016 W astewater Revenue Refunding Bonds On October 5, 2022, the City deposited approximately $5.16 million into an escrow account to defease the $5 million 2016 Wastewater Revenue Refunding Bonds maturing June 1, 2037. This escrow was funded with U.S. Treasury State and Local Government Series Securities and was independently verified as sufficient to pay all remaining scheduled debt service on the bonds. The bonds were subsequently redeemed on June 1, 2023, which removed the related long-term liability from the City’s books and reduced future interest obligations. 77

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 19: SUBSEQUENT EVENTS (CONTINUED)
Acquisition of 190 Maple Street
On May 15, 2023, the City Council approved the purchase of the property located at 190 Maple Street (APN 051- 090-027) for a price of $1,625,000, plus approximately $1,574 in closing and escrow costs. The acquisition was intended to expand the City’s operational space and accommodate future staffing and service needs. Because the transaction took place after June 30, 2022, it is reported as a subsequent event. The property was successfully acquired and title transferred to the City following closing. 190 Maple Street Declared Surplus Land
On June 16, 2025, the City Council adopted a resolution declaring the property at 190 Maple Street to be surplus land under the California Surplus Land Act. This action directed staff to begin mandatory noticing procedures to affordable housing developers, public agencies, and other qualified entities. Although the City previously purchased this property for operational needs, subsequent analysis determined it was no longer required for City use. The financial effect of the eventual disposition will depend on future negotiations and has not yet been determined.

CDBG Grant Award – W est Gateway Improvement Project
Following the close of FY2021–22, the City was awarded approximately $3 million under the State Community Development Block Grant Program for the West Gateway Improvement Project. The project includes roadway, pedestrian, streetscape, and safety enhancements along the City’s western entry corridor. On February 21, 2023, the City Council authorized staff to advertise construction bids, initiating the project delivery phase. This award represents a significant outside funding source for capital improvements and is reported as a subsequent event.

Proposition 68 Grant – Fire Station #2 New Park
The City was awarded a Statewide Park Development and Community Revitalization Program (Proposition 68) grant in the amount of $1,826,125 for the development of Fire Station #2 New Park. Although the Council initially approved acceptance in 2021, the final State grant contract was not fully executed until October–November 2023. The agreement establishes a multi-year project window through June 30, 2028, allowing for land improvements, community amenities, and recreational features. Execution of this grant agreement occurred after FY2021–22.

Airport Runway 6 Safety Improvements – Federal & State Funded Project Beginning in June 2023, the City received approval for substantial Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding to complete the Runway 6 Safety Improvements Project at the Hollister Municipal Airport. The FAA grant covers approximately 90% of eligible costs, with State Caltrans funding covering an additional 5%, and the remaining 5% funded by Airport revenues. A construction contract valued at approximately $3.32 million was awarded to Granite rock in June 2023. Updated project appropriations in FY2024–25 reflect a total estimated project cost of $3.8 million. These actions occurred after FY2021–22 and represent significant capital commitments.

IW TP / Bridge Road Stormwater Improvements – Environmental Compliance Project In February 2025, the City awarded an $8.44 million construction contract for the IW TP and Bridge Road Stormwater Improvements Project. The project is required to comply with the State’s Trash Amendment to the stormwater permit, which mandates full capture of trash in priority drainage areas. This large-scale infrastructure project is supported in part by a State stormwater grant under Agreement D2112167 and includes design, construction, and environmental compliance elements. The substantial cost and regulatory nature of the project make it a significant subsequent event.
78

CITY OF HOLLISTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 19: SUBSEQUENT EVENTS (CONTINUED)
Increase to the Transient Occupancy Tax (TOT)
On April 2, 2024, the City Council placed a measure on the November 5, 2024, ballot proposing to increase the City’s Transient Occupancy Tax from 8% to 12%, with revenues directed to the General Fund. The measure was approved by voters, and the City subsequently adopted an ordinance implementing the new rate. The TOT increase is expected to generate approximately $300,000 in additional annual revenue, beginning upon implementation. The ballot measure, voter approval, and ordinance adoption all occurred after FY2021–22. The new TOT rate of 12% went into effect on July 1, 2025.

Fire Services Restructuring – Terminations and New 2025–2029 Contracts In June 2024, the City issued formal 270-day termination notices for its fire protection service agreements with the County of San Benito and the City of San Juan Bautista, citing a persistent funding shortfall. The agreements were formally set to end on March 15, 2025, with the City continuing to provide services through that date. Following these terminations, the City executed new 2025–2029 fire protection and emergency services agreements with both jurisdictions. These new agreements establish updated service levels, staffing requirements, response protocols, and cost-sharing terms. Together, the termination of legacy contracts and adoption of new multi-year agreements represent a significant operational and intergovernmental service restructuring. 79

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF HOLLISTER

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $20,728,500 $20,728,500 $23,303,905 $2,575,405
License and permits 2,442,000 2,442,000 7,334,609 4,892,609 Intergovernmental 963,450 909,450 1,245,412 335,962
Charges for services 6,004,250 6,004,250 8,002,095 1,997,845 Fines and forfeitures 210,200 210,200 171,725 (38,475)
Investment earnings 167,300 167,300 473,731 306,431
Other 994,375 994,375 676,532 (317,843)
Total Revenues 31,510,075 31,456,075 41,208,009 9,751,934

EXPENDITURES
General Government
Non-Departmental
Personnel 14,300 14,300 7,019 7,281
Services & Supplies 131,800 206,800 507,302 (300,502)
Contractual 774,100 774,100 720,110 53,990
Total Non-Departmental 920,200 995,200 1,234,431 (239,231) City Council
Personnel 83,119 83,119 106,926 (23,807)
Services & Supplies 113,181 113,181 94,678 18,503
Contractual 385,000 385,000 277,260 107,740
Total City Council 581,300 581,300 478,864 102,436
City Clerk
Personnel 335,422 335,422 386,253 (50,831)
Services & Supplies 37,100 93,600 32,387 61,213
Contractual 66,610 71,610 156,931 (85,321)
Total City Clerk 439,132 500,632 575,571 (74,939)
City Manager
Personnel 503,665 503,665 509,855 (6,190)
Services & Supplies 38,506 38,506 87,290 (48,784)
Contractual 2,500 2,500 5,210 (2,710)
Total City Manager 544,671 544,671 602,355 (57,684)
City Treasurer
Personnel 34,823 34,823 37,135 (2,312)
Total City Treasurer 34,823 34,823 37,135 (2,312)
Finance
Personnel 624,515 624,515 729,695 (105,180)
Services & Supplies 58,023 58,023 76,695 (18,672)
Contractual 39,800 39,800 31,883 7,917
Capital 8,500 8,500 -8,500
Total Finance 730,838 730,838 838,273 (107,435)
80

CITY OF HOLLISTER

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
General Government (continued)
Information Systems
Personnel 367,430 367,430 253,957 113,473
Services & Supplies 68,800 68,800 52,732 16,068
Contractual 187,570 187,570 145,007 42,563
Total Information Systems 623,800 623,800 451,696 172,104 Human Resources
Personnel 544,875 544,875 359,374 185,501
Services & Supplies 57,050 57,050 148,810 (91,760)
Contractual 11,500 11,500 9,801 1,699
Total Human Resources 613,425 613,425 517,985 95,440
Redevelopment
Personnel 172,651 172,651 20,960 151,691
Services & Supplies 43,900 43,900 12,116 31,784
Contractual 33,449 33,449 10,596 22,853
Total Redevelopment 250,000 250,000 43,672 206,328
Planning
Personnel 1,114,196 1,114,196 795,211 318,985
Services & Supplies 472,379 536,379 1,253,226 (716,847) Contractual 269,500 269,500 4,139,670 (3,870,170)
Total Planning 1,856,075 1,920,075 6,188,107 (4,268,032) Risk Management
Personnel 20,000 20,000 2,461 17,539
Services & Supplies 31,450 31,450 133,534 (102,084)
Total Risk Management 51,450 51,450 135,995 (84,545)
Total General Government 6,645,714 6,846,214 11,104,084 (4,257,870) Public Safety
Animal Control
Personnel 670,679 670,679 545,683 124,996
Services & Supplies 156,590 210,590 223,558 (12,968)
Contractual 32,300 32,300 43,482 (11,182)
Total Animal Control 859,569 913,569 812,723 100,846
Fire
Personnel 7,620,714 7,620,714 7,059,029 561,685
Services & Supplies 643,706 643,706 814,788 (171,082)
Contractual 591,754 591,754 532,080 59,674
Total Fire 8,856,174 8,856,174 8,405,897 450,277
81

CITY OF HOLLISTER

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Public Safety (continued)
Police
Personnel 8,275,371 8,275,371 5,192,811 3,082,560
Services & Supplies 678,971 678,971 926,844 (247,873)
Contractual 584,274 584,274 607,618 (23,344)
Total Police 9,538,616 9,538,616 6,727,273 2,811,343
Total Public Safety 19,254,359 19,308,359 15,945,893 3,362,466 Public Works
Solid W aste
Personnel 11,193 11,193 8,028 3,165
Services & Supplies 21,100 21,100 15,964 5,136
Contractual 250,000 250,000 215,808 34,192
Total Solid W aste 282,293 282,293 239,800 42,493
Engineering
Personnel 491,658 491,658 614,065 (122,407)
Services & Supplies 66,944 84,640 618,639 (533,999)
Contractual 122,500 122,500 909,919 (787,419)
Total Engineering 681,102 698,798 2,142,623 (1,443,825) Building
Services & Supplies 1,700 1,700 2,608 (908)
Total Building 1,700 1,700 2,608 (908)
Code Enforcement
Personnel 305,416 305,416 270,147 35,269
Services & Supplies 14,250 14,250 27,826 (13,576)
Contractual 300 300 327 (27)
Total Code Enforcement 319,966 319,966 298,300 21,666
Vehicle Maintenance
Personnel 250,678 237,498 259,817 (22,319)
Services & Supplies 233,911 247,091 457,584 (210,493)
Contractual 16,300 16,300 18,062 (1,762)
Total Vehicle Maintenance 500,889 500,889 735,463 (234,574) Street Maintenance
Personnel 61,214 142,578 178,417 (35,839)
Supplies & Services 442,743 361,379 364,208 (2,829)
Contractual 2,000 2,000 28,026 (26,026)
Total Street Maintenance 505,957 505,957 570,651 (64,694) Total Public W orks 2,291,907 2,309,603 3,989,445 (1,679,842) 82

CITY OF HOLLISTER

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Recreation
Parks
Personnel 388,897 388,897 534,171 (145,274)
Services & Supplies 228,461 228,461 384,187 (155,726)
Contractual 350,600 350,600 352,041 (1,441)
Total Parks 967,958 967,958 1,270,399 (302,441)
Veteran's Building
Services & Supplies 24,302 24,302 36,541 (12,239)
Contractual 110,000 110,000 110,000 -
Total Veteran's Building 134,302 134,302 146,541 (12,239) Recreation
Personnel 645,072 645,072 722,701 (77,629)
Services & Supplies 279,353 313,353 319,535 (6,182)
Contractual 47,200 47,200 42,792 4,408
Total Recreation 971,625 1,005,625 1,085,028 (79,403)
Total Recreation 2,073,885 2,107,885 2,501,968 (394,083) Capital outlay 769,950 1,232,350 3,102,137 (1,869,787)
Debt Service:

Principal 178,156 178,156 470,514 (292,358)
Interest 30,407 30,407 81,574 (51,167)
Total Debt Service 208,563 208,563 552,088 (343,525)
Total Expenditures 31,244,378 32,012,974 37,195,615 (5,182,641) Excess (deficiency) of revenues over
expenditures 265,697 (556,899)4,012,394 4,569,293

OTHER FINANCING SOURCES (USES)
Proceeds from financed purchase 254,000 254,000 2,396,236 2,142,236 Transfers in --517,053 517,053
Transfers out (524,697)(524,697)-524,697
Total Other Financing Sources
(Uses)(270,697)(270,697)2,913,289 3,183,986
Net change in fund balance $(5,000)$(827,596)6,925,683 $7,753,279 Fund balance - July 1, 2021 9,027,657
Fund balance - June 30, 2022 $15,953,340
83

CITY OF HOLLISTER

HOUSING SUCCESSOR AGENCY FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $3,000 $3,000 $49,118 $46,118
Other revenues --148,382 148,382
Total Revenues 3,000 3,000 197,500 194,500

EXPENDITURES
General Government
Non-Departmental
Contractual 3,000 3,000 96 2,904
Housing
Personnel 162,373 162,373 112,466 49,907
Services & Supplies 17,050 17,050 5,025 12,025
Contractual 9,000 9,000 9,608 (608)
Capital 2,000 2,000 14,197 (12,197)
Total Housing 190,423 190,423 141,296 49,127
Finance
Personnel 20,557 20,557 22,149 (1,592)
Total General Government 213,980 213,980 163,541 50,439 Debt Service:

Principal --7,091 (7,091)
Interest --23 (23)
Total Debt Service --7,114 (7,114)
Total Expenditures 213,980 213,980 170,655 43,325
Net change in fund balance $(210,980)$(210,980)26,845 $237,825 Fund balance - July 1, 2021 1,313,162
Fund balance - June 30, 2022 $1,340,007
84

CITY OF HOLLISTER

CIP TRAFFIC IMPACT FEES

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
License and permits $200,000 $200,000 $6,640,442 $6,440,442 Investment earnings 15,000 15,000 35,145 20,145
Total Revenues 215,000 215,000 6,675,587 6,460,587

EXPENDITURES
General Government
Non-Departmental
Contractual 10,000 10,000 1,746 8,254
Total General Government 10,000 10,000 1,746 8,254
Public Works
Engineering
Supplies & Services 80,000 80,000 132,162 (52,162)
Capital --1,541,243 (1,541,243)
Total Engineering 80,000 80,000 1,673,405 (1,593,405)
Total Public W orks 80,000 80,000 1,673,405 (1,593,405) Total Expenditures 90,000 90,000 1,675,151 (1,585,151)
Excess (deficiency) of revenues over
expenditures 125,000 125,000 5,000,436 4,875,436

OTHER FINANCING SOURCES (USES)
Transfers out --(232,376)(232,376)
Total Other Financing Sources
(Uses)--(232,376)(232,376)
Net change in fund balance $125,000 $125,000 4,768,060 $4,643,060 Fund balance - July 1, 2021 23,727,703
Fund balance - June 30, 2022 $28,495,763
85

CITY OF HOLLISTER

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments at the major object level within the general, special revenue, capital project, and debt service funds.

During the period December through February of each fiscal year, department heads prepare estimates of required appropriations for the following fiscal year. These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and financial resources and historical data for the preceding fiscal year. The operating budget is presented by the City Manager to the City Council for review. Public hearings are conducted to obtain citizen comments. The City Council generally adopts the budget during one of its June meetings. The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department. Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the departmental level within a fund. All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered.
86

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

PREPARED FOR THE CITY'S MISCELLANEOUS AND SAFETY PLAN, COST SHARING DEFINED BENEFIT

PENSION PLAN
AS OF JUNE 30, 2021 (MEASUREMENT DATE)
LAST 10 YEARS *
Measurement Date
2021 2020 2019 2018
Proportion of the net pension liability %0.35283 %0.31306 %0.30202 %0.29525 Proportionate share of the net pension
liability $19,082,199 $34,061,952 $30,947,803 $28,451,236 Covered payroll $15,935,909 $15,644,085 $14,875,106 $12,196,775 Proportionate share of the net pension
liability as a percentage of covered
payroll %119.74 %217.73 %208.05 %233.27
Plan fiduciary net position as a percentage
of the total pension liability %75.10 %75.10 %75.30 %73.69 Notes to Schedule:

Changes in assumptions: In 2021, 2020 and 2019, there were no changes in assumptions. In 2018, assumptions for individual salary increases and overall payroll growth are reduced from 3.00 percent to 2.75 percent.In 2017, amounts reported reflect an adjustment of the discount rate from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.50 percent discount rate. * Schedule is intended to show information for ten years. Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. Additional years' information will be displayed as it becomes available. 87

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

PREPARED FOR THE CITY'S MISCELLANEOUS AND SAFETY PLAN, COST SHARING DEFINED BENEFIT

PENSION PLAN (CONTINUED)
AS OF JUNE 30, 2027 (MEASUREMENT DATE)
LAST 10 YEARS *
Measurement Period
2017 2016 2015 2014
Proportion of the net pension liability %0.31467 %0.35227 %0.40408 %0.40699 Proportionate share of the net pension
liability $31,206,329 $30,481,960 $27,735,606 $25,324,873 Covered payroll $13,320,993 $11,471,107 $10,170,308 $8,638,146 Proportionate share of the net pension
liability as a percentage of covered
payroll %234.26 %265.73 %272.71 %293.17
Plan fiduciary net position as a percentage
of the total pension liability %73.30 %74.06 %78.40 %79.82 88

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS TO THE DEFINED BENEFIT PENSION PLAN

PREPARED FOR THE CITY'S MISCELLANEOUS AND SAFETY PLAN,

COST SHARING DEFINED BENEFIT PENSION PLAN
AS OF JUNE 30, 2022
LAST 10 YEARS *
Fiscal Year-End
2022 2021 2020 2019
Contractually required contribution
(actuarially determined)$4,843,460 $4,433,918 $3,987,986 $3,320,549 Contributions in relation to the actuarially
determined contributions 4,843,460 4,433,918 3,987,986 3,320,549 Contribution deficiency (excess)$-$-$-$-
Covered payroll $16,609,771 $15,935,909 $15,644,085 $14,875,106 Contributions as a percentage of covered
payroll %29.16 %27.82 %25.49 %22.32
* Schedule is intended to show information for ten years. Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. Additional years' information will be displayed as it becomes available. 89

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS TO THE DEFINED BENEFIT PENSION PLAN

PREPARED FOR THE CITY'S MISCELLANEOUS AND SAFETY PLAN,

COST SHARING DEFINED BENEFIT PENSION PLAN (CONTINUED)
AS OF JUNE 30, 2022
LAST 10 YEARS *
Fiscal Year-End
2018 2017 2016 2015
Contractually required contribution
(actuarially determined)$3,046,562 $2,937,927 $3,069,884 $2,119,208 Contributions in relation to the actuarially
determined contributions 5,230,370 5,692,674 5,330,246 2,949,208 Contribution deficiency (excess)$(2,183,808)$(2,754,747)$(2,260,362)$(830,000) Covered payroll $12,196,775 $13,320,993 $11,471,107 $10,170,308 Contributions as a percentage of covered
payroll %42.88 %42.73 %46.47 %29.00
90

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, 2021 (MEASUREMENT DATE)
LAST 10 YEARS*
Measurement Period
2021 2020 2019 2018 2017
Total OPEB liability
Service cost $430,746 $311,298 $303,940 $319,491 $362,207 Interest 128,130 157,460 190,760 170,204 139,325
Difference between expected and actual
experience (350,868)-(655,107)--
Changes in assumptions 1,739,530 869,227 (152,087)(224,924)(434,756) Benefit payments (156,978)(134,485)(141,531)(141,825)(40,162) Net change in total OPEB liability 1,790,560 1,203,500 (454,025)122,946 26,614 Total OPEB liability, beginning 5,445,496 4,241,996 4,696,021 4,573,075 4,546,461 Total OPEB liability, ending $7,236,056 $5,445,496 $4,241,996 $4,696,021 $4,573,075 Plan fiduciary net position as a percentage of
the total OPEB liability %-%-%-%-%-
Covered-employee payroll $19,071,905 $14,378,254 $13,591,192 $14,387,356 $13,320,993 City's total OPEB liability as a percentage of
covered-employee payroll %37.94 %37.87 %31.21 %32.64 %34.33 Notes to Schedule:

Changes in assumption:

For the measurement period ended June 30, 2021, the discount rate changed from 2.21% to 2.16%, and the healthcare trend rate changed from 5.4% to 5.6%. For the measurement period ended June 30, 2020, the discount rate changed from 3.51% to 2.21%.

For the measurement period ended June 30, 2019, the discount rate changed from 3.87% at June 30, 2018 to 3.51%. Assumed mortality, termination, and retirement rates were updated to the rates in the most recent available experience study (2017) of the CalPERS program. Future rates of mortality were projected to improve on a generational basis using MacLeod Watts Scale 2018, rather than SOA MP-2017. The salary scale decreased from 3.25% per year to 3.0% per year. The general inflation rate decreased from 2.75% to 2.5% per year.

For the measurement period ended June 30, 2018, the discount rate was changed from 3.53 percent to 3.87 percent. * Schedule is intended to show information for ten years. Fiscal year 2018 was the first year of implementation, therefore only five years are shown. Additional years' information will be displayed as it becomes available. 91

CITY OF HOLLISTER

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS TO THE OPEB PLAN
AS OF JUNE 30, 2022
LAST 10 YEARS *
Fiscal Year
2022 2021 2020 2019 2018
Actuarially Determined Contribution (ADC)$118,676 $156,978 $134,485 $141,531 $141,825 Contributions in relation to the ADC (118,676)(156,978)(134,485)(141,531)(141,825) Contribution deficiency (excess)$-$-$-$-$-
Covered-employee payroll $19,965,239 $19,071,905 $14,378,254 $13,591,152 $14,387,356 Contributions as a percentage of covered-
employee payroll %0.59 %0.82 %0.94 %1.04 %0.99
* Schedule is intended to show information for ten years. Fiscal year 2018 was the first year of implementation, therefore only five years are shown. Additional years' information will be displayed as it becomes available. 92

COMBINING FINANCIAL STATEMENTS AND OTHER SUPPLEMENTARY INFORMATION

NON-MAJOR GOVERNMENTAL FUNDS
The following funds are reported in total in the Governmental Fund Financial Statements under the column "Other Governmental Funds."
SPECIAL REVENUE FUNDS: 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 and capital projects. Such funds are authorized by statutory provisions to pay for certain activities of a continuing nature.

The nonmajor special revenue funds are listed below:

CDBG Low Income Housing Rehab - This fund accounts for revenues and expenditures relating to community development block grant.

Gas Tax - This fund provides for planning, design, construction, maintenance, and administration of City transportation activities. Revenues consist primarily of the City’s share of state highway user.

Park Dedication - This fund was established to provide financing for parks.

Local Transportation - This fund accounts for the receipt and distribution of the City's local funding provided by State funds.

Road Repair & Accountability - This fund provides for planning, design, construction, maintenance, and administration for the City's share of the Road Repair and Accountability Act funds from the State of California.

Federal Aviation Admin Grant - This fund is used to account for receipt and disbursement of the federal aviation funding provided by Federal funding.
4th of July Rally - This fund was established to account for the receipt and disbursement of the annual 4th of July rally.

SAFER Grant - This fund was established to provide funding directly to fire departments and volunteer firefighter interest organizations to help them increase or maintain the number of trained, "front line" fighters available in their communities.

Transportation Development Act - This fund was established to account for the activities of the Transportation Development Act funding from the State of California.

Spay/Neuter Education - This fund was established to account for the receipt and disbursement of the City's spay and neuter grant and donation funds.

Mello Roos CFD-001 - This fund was established to account for the receipt and disbursement of the CFD-1 funding.

Police Special Law Enforcement Safety - This fund was established to account for the receipt and disbursement of the state funding provided by Police Special Law Enforcement Safety grant.

Office of Traffic Safety - This fund was established to account for the receipt and disbursement of the City's traffic safety funding provided by State funding.

Animal W elfare - This fund was established to account for the receipt and disbursement of the local funding provided by animal welfare grant.

SB 1186 - This fund was established to account for the receipts and disbursements of the State's ADA mandate.

Off Street Parking - This fund was established to account for the maintenance and reconstruction of City off-street parking.
2013 CDBG - This fund was established to account for revenues and expenditures of the 2013 community development block grant.
2017 CDBG - This fund was established to account for revenues and expenditures for the 2017 community development block grant.
93

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS (CONTINUED)
2020 CDBG - This fund was established to account for revenues and expenditures for the 2020 community development block grant.

FEMA- COVID 19 - This fund is used to account for all revenues and expenditures necessary to carry out the requirements of FEMA contributions to the City.

CARES Act - This fund is used to account for all revenues and expenditures necessary to carry out the requirements of the CARES Act grant.

ARPA - This fund accounts for funds received through the American Rescue Plan Act (ARPA) via the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program.

Signal Improvement Fee on Flynn - This fund was established to account for the fees collected for the Flynn Road Signal Improvement.

Traffic Impact Fees - This fund was established to track the inflows and outflows for traffic impact related to new development.

AFG Grant - This fund was established to account for activities of the AFG program which uses funds for fire equipment.

Home Program Revolving Loans - This fund was established to account for the receipt and disbursement of the City's Federal HOME grant funds.

CAPITAL PROJECT FUNDS: Capital project funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition of land or acquisition or construction of capital facilities and other capital assets.

Fire Impact Fees - This fund was established as depositories for fire development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of fire facilities as a result of City growth.

Police Impact Fees - This fund was established as depositories for police development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of police facilities as a result of City growth.

Storm Drain Fees - This fund was established as depositories for storm drain development fees. The fees are levied against development in the City in order to pay for the construction or improvement of storm drains.

Storm Drain Impact Fees - This fund was established as depositories for storm drain development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of storm drains as a result of City growth.

AB 1600 Santa Ana Storm Drain - This fund was established as depositories for Santa Ana storm drain development impact fees. The fees are levied against all new development in the Santa Ana Road area in order to pay for the construction or improvement of storm drains as a result of City growth.

Jail Juvenile Hall - This fund was established as depositories for Juvenile Hall development impact fees. The fees are levied against all new development in the City in order to pay for Juvenile Hall construction or improvements as a result of City growth.

City Hall/City Yard Impact Fees - This fund was established as depositories for City Hall/City Yard development impact fees. The fees are levied against all new developments in the City in order to pay for the construction or improvement of City Hall or City Yard facilities as a result of City growth. 94

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2022

SPECIAL REVENUE FUNDS
CDBG Low
Income
Housing
Rehab
Gas
Tax
Park
Dedication
Local
Transportation
Road Repair &
Accountability
Federal
Aviation
Admin Grant
ASSETS
Cash and investments $158,818 $67,411 $6,511,573 $-$-$127,914 Accounts receivable -176,603 --145,879 -
Interest receivable 87 -3,600 (201)(458)-
Notes receivable 224,892 -----
Total Assets $383,797 $244,014 $6,515,173 $(201)$145,421 $127,914

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $-$34,132 $1,243 $-$112,144 $-
Accrued payroll and benefits -16,958 ----
Deposits --179,000 ---
Due to other funds ----1,199,075 -
Unearned revenue ------
Total Liabilities -51,090 180,243 -1,311,219 -
DEFERRED INFLOW OF RESOURCES:

Unavailable revenues 224,891 -----
FUND BALANCES (DEFICITS):

Restricted 158,906 192,924 6,334,930 --127,914
Unassigned ---(201)(1,165,798)-
Total Fund Balance (Deficits)158,906 192,924 6,334,930 (201)(1,165,798)127,914

TOTAL LIABILITIES, DEFERRED INFLOW OF
RESOURCES, AND FUND BALANCES (DEFICIT)$383,797 $244,014 $6,515,173 $(201)$145,421 $127,914 95

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2022

SPECIAL REVENUE FUNDS
4th of July
Rally SAFER Grant
Transportation
Development
Act
Spay/
Neuter
Education
Mello Roos
CFD-001
Police Special
Law
Enforcement
Safety
ASSETS
Cash and investments $-$-$7,984,444 $21,668 $-$113,946
Accounts receivable --930,608 -13,279 -
Interest receivable --4,388 12 -63
Notes receivable ------
Total Assets $-$-$8,919,440 $21,680 $13,279 $114,009

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $38 $-$379,498 $935 $194 $-
Accrued payroll and benefits 143 144 (8)-16,502 -
Deposits ---1,034 --
Due to other funds 260,614 548,371 --18,556 -
Unearned revenue ------
Total Liabilities 260,795 548,515 379,490 1,969 35,252 - DEFERRED INFLOW OF RESOURCES:

Unavailable revenues ------
FUND BALANCES (DEFICITS):

Restricted --8,539,950 19,711 -114,009
Unassigned (260,795)(548,515)--(21,973)-
Total Fund Balance (Deficits)(260,795)(548,515)8,539,950 19,711 (21,973)114,009

TOTAL LIABILITIES, DEFERRED INFLOW OF
RESOURCES, AND FUND BALANCES (DEFICIT)$-$-$8,919,440 $21,680 $13,279 $114,009 96

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2022

SPECIAL REVENUE FUNDS
Office of
Traffic Safety
Animal
Welfare SB 1186
Off Street
Parking 2013 CDBG 2017 CDBG
ASSETS
Cash and investments $57,849 $24,585 $45,955 $91,866 $147,095 $- Accounts receivable -----209,620
Interest receivable 31 14 25 50 --
Notes receivable ----573,025 -
Total Assets $57,880 $24,599 $45,980 $91,916 $720,120 $209,620

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $-$-$574 $-$-$22,000
Accrued payroll and benefits -----337
Deposits --(2)---
Due to other funds -----235,132
Unearned revenue 26,461 -----
Total Liabilities 26,461 -572 --257,469
DEFERRED INFLOW OF RESOURCES:

Unavailable revenues ----573,025 209,620
FUND BALANCES (DEFICITS):

Restricted 31,419 24,599 45,408 91,916 147,095 -
Unassigned -----(257,469)
Total Fund Balance (Deficits)31,419 24,599 45,408 91,916 147,095 (257,469)

TOTAL LIABILITIES, DEFERRED INFLOW OF
RESOURCES, AND FUND BALANCES (DEFICIT)$57,880 $24,599 $45,980 $91,916 $720,120 $209,620 97

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2022

SPECIAL REVENUE FUNDS
2020 CDBG

FEMA - COVID
19 CARES Act ARPA
Signal
Improvement
Fee on Flynn
Traffic Impact
Fees
ASSETS
Cash and investments $-$-$111,269 $417 $14,159 $48,392
Accounts receivable 116,091 -----
Interest receivable ----8 27
Notes receivable ------
Total Assets $116,091 $-$111,269 $417 $14,167 $48,419

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $9,789 $-$-$-$-$-
Accrued payroll and benefits ------
Deposits ------
Due to other funds 106,304 741,715 ----
Unearned revenue --111,180 ---
Total Liabilities 116,093 741,715 111,180 ---
DEFERRED INFLOW OF RESOURCES:

Unavailable revenues 116,091 -----
FUND BALANCES (DEFICITS):

Restricted --89 417 14,167 48,419
Unassigned (116,093)(741,715)----
Total Fund Balance (Deficits)(116,093)(741,715)89 417 14,167 48,419

TOTAL LIABILITIES, DEFERRED INFLOW OF
RESOURCES, AND FUND BALANCES (DEFICIT)$116,091 $-$111,269 $417 $14,167 $48,419 98

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2022

SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS
AFG Grant
Home Program
Revolving
Loans
Fire Impact
Fees
Police Impact
Fees
Storm Drain
Fees
ASSETS
Cash and investments $1,810 $251,299 $1,650,110 $1,276,403 $240,168 Accounts receivable -----
Interest receivable -138 909 703 132
Notes receivable -2,140,537 ---
Total Assets $1,810 $2,391,974 $1,651,019 $1,277,106 $240,300

LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND

BALANCES
LIABILITIES:

Accounts payable $-$-$-$-$-
Accrued payroll and benefits -----
Deposits -----
Due to other funds -----
Unearned revenue 1,810 ----
Total Liabilities 1,810 ----
DEFERRED INFLOW OF RESOURCES:

Unavailable revenues -2,140,537 ---
FUND BALANCES (DEFICITS):

Restricted -251,437 1,651,019 1,277,106 240,300
Unassigned -----
Total Fund Balance (Deficits)-251,437 1,651,019 1,277,106 240,300

TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND
FUND BALANCES (DEFICIT)$1,810 $2,391,974 $1,651,019 $1,277,106 $240,300 99

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2022

CAPITAL PROJECT FUNDS
Storm Drain
Impact Fees
AB 1600 Santa
Ana Storm
Drain
Jail Juvenile
Hall
City Hall/City
Yard Impact
Fees
Total Non-
Major
Governmental
Funds
ASSETS
Cash and investments $6,136,789 $2,000,548 $597,958 $341,680 $28,024,126 Accounts receivable ----1,592,080
Interest receivable 3,331 1,099 329 189 14,476
Notes receivable ----2,938,454
Total Assets $6,140,120 $2,001,647 $598,287 $341,869 $32,569,136

LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND

BALANCES
LIABILITIES:

Accounts payable $14,886 $-$576,449 $-$1,151,882
Accrued payroll and benefits 9,485 ---43,561
Deposits ----180,032
Due to other funds ----3,109,767
Unearned revenue ----139,451
Total Liabilities 24,371 -576,449 -4,624,693
DEFERRED INFLOW OF RESOURCES:

Unavailable revenues ----3,264,164
FUND BALANCES (DEFICITS):

Restricted 6,115,749 2,001,647 21,838 341,869 27,792,838 Unassigned ----(3,112,559)
Total Fund Balance (Deficits)6,115,749 2,001,647 21,838 341,869 24,680,279

TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND
FUND BALANCES (DEFICIT)$6,140,120 $2,001,647 $598,287 $341,869 $32,569,136 100

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
CDBG Low
Income
Housing
Rehab
Gas
Tax
Park
Dedication
Local
Transportati
on
Road Repair &
Accountability
Federal
Aviation
Admin Grant

REVENUES
Taxes $-$972,036 $-$-$836,402 $-
Licenses and permits ------
Intergovernmental -----72,291
Charges for service --2,608,312 ---
Investment earnings (loss)762 148 7,518 (191)85 -
Other revenues 7,554 126 ----
Total Revenues 8,316 972,310 2,615,830 (191)836,487 72,291

EXPENDITURES
Current:

General government 11 18 312 -72 -
Public safety ------
Public works -975,346 ----
Capital Outlay --183,515 10 3,105,433 94,377
Total Expenditures 11 975,364 183,827 10 3,105,505 94,377 Excess (deficiency) of revenues over expenditures 8,305 (3,054)2,432,003 (201)(2,269,018)(22,086)

OTHER FINANCING SOURCES (USES)
Transfers out --(117,374)---
Total Other Financing Sources (Uses)--(117,374)---
Net change in fund balances 8,305 (3,054)2,314,629 (201)(2,269,018)(22,086) Fund balances (deficits) - July 1, 2021 150,601 195,978 4,020,301 -1,103,220 - Prior period adjustment (Note 18)-----150,000
Fund balances (deficits) - July 1, 2021, restated 150,601 195,978 4,020,301 -1,103,220 150,000 Fund balances (deficits) - June 30, 2022 $158,906 $192,924 $6,334,930 $(201)$(1,165,798)$127,914 101

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
4th of July
Rally SAFER Grant
Transportation
Development
Act
Spay/
Neuter
Education
Mello Roos
CFD-001
Police Special
Law
Enforcement
Safety

REVENUES
Taxes $-$-$3,451,815 $-$1,278,255 $-
Licenses and permits ------
Intergovernmental -1,396,622 ---109,959
Charges for service ---7,519 --
Investment earnings (loss)(340)-8,800 32 108 144
Other revenues 165 -850,399 ---
Total Revenues (175)1,396,622 4,311,014 7,551 1,278,363 110,103

EXPENDITURES
Current:

General government 53 -(11)3 757 9
Public safety 344 789,642 -11,443 1,284,228 -
Public works --564,720 ---
Capital Outlay --1,001,913 --115,324
Total Expenditures 397 789,642 1,566,622 11,446 1,284,985 115,333 Excess (deficiency) of revenues over expenditures (572)606,980 2,744,392 (3,895)(6,622)(5,230)

OTHER FINANCING SOURCES (USES)
Transfers out ----(18,809)-
Total Other Financing Sources (Uses)----(18,809)-
Net change in fund balances (572)606,980 2,744,392 (3,895)(25,431)(5,230) Fund balances (deficits) - July 1, 2021 (260,223)(1,155,495)5,795,558 23,606 3,458 119,239 Prior period adjustment (Note 18)------
Fund balances (deficits) - July 1, 2021, restated (260,223)(1,155,495)5,795,558 23,606 3,458 119,239 Fund balances (deficits) - June 30, 2022 $(260,795)$(548,515)$8,539,950 $19,711 $(21,973)$114,009 102

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
Office of
Traffic Safety
Animal
Welfare SB 1186
Off Street
Parking 2013 CDBG 2017 CDBG

REVENUES
Taxes $-$-$-$-$-$-
Licenses and permits --7,387 ---
Intergovernmental 24,869 ----15,814
Charges for service ------
Investment earnings (loss)68 31 54 120 76 -
Other revenues -3,356 ----
Total Revenues 24,937 3,387 7,441 120 76 15,814

EXPENDITURES
Current:

General government 2 2 -8 11 94,226
Public safety 28,537 2,200 ----
Public works ------
Capital Outlay 2,998 ----79,125
Total Expenditures 31,537 2,202 -8 11 173,351
Excess (deficiency) of revenues over expenditures (6,600)1,185 7,441 112 65 (157,537)

OTHER FINANCING SOURCES (USES)
Transfers out ------
Total Other Financing Sources (Uses)------
Net change in fund balances (6,600)1,185 7,441 112 65 (157,537) Fund balances (deficits) - July 1, 2021 38,019 23,414 37,967 91,804 4,426 (99,932) Prior period adjustment (Note 18)----142,604 -
Fund balances (deficits) - July 1, 2021, restated 38,019 23,414 37,967 91,804 147,030 (99,932) Fund balances (deficits) - June 30, 2022 $31,419 $24,599 $45,408 $91,916 $147,095 $(257,469) 103

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
2020 CDBG

FEMA - COVID
19 CARES Act ARPA
Signal
Improvement
Fee on Flynn
Traffic Impact
Fees

REVENUES
Taxes $-$-$-$-$-$-
Licenses and permits ------
Intergovernmental 103,837 --4,872,937 --
Charges for service ------
Investment earnings (loss)(2)(379)57 417 18 64
Other revenues ------
Total Revenues 103,835 (379)57 4,873,354 18 64

EXPENDITURES
Current:

General government 144,698 (54)8 -1 4
Public safety -7,844 -4,872,937 --
Public works ------
Capital Outlay ------
Total Expenditures 144,698 7,790 8 4,872,937 1 4
Excess (deficiency) of revenues over expenditures (40,863)(8,169)49 417 17 60

OTHER FINANCING SOURCES (USES)
Transfers out ------
Total Other Financing Sources (Uses)------
Net change in fund balances (40,863)(8,169)49 417 17 60 Fund balances (deficits) - July 1, 2021 (75,230)(733,546)40 -14,150 48,359 Prior period adjustment (Note 18)------
Fund balances (deficits) - July 1, 2021, restated (75,230)(733,546)40 -14,150 48,359 Fund balances (deficits) - June 30, 2022 $(116,093)$(741,715)$89 $417 $14,167 $48,419 104

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS
AFG Grant
Home Program
Revolving
Loans
Fire Impact
Fees
Police Impact
Fees
Storm Drain
Fees

REVENUES
Taxes $-$-$-$-$-
Licenses and permits --287,283 --
Intergovernmental -----
Charges for service ---248,451 -
Investment earnings (loss)-1,944 2,063 1,581 314
Other revenues -150,444 ---
Total Revenues -152,388 289,346 250,032 314

EXPENDITURES
Current:

General government -7 99 75 18
Public safety -----
Public works -----
Capital Outlay -----
Total Expenditures -7 99 75 18
Excess (deficiency) of revenues over expenditures -152,381 289,247 249,957 296

OTHER FINANCING SOURCES (USES)
Transfers out --(4,309)(3,727)-
Total Other Financing Sources (Uses)--(4,309)(3,727)-
Net change in fund balances -152,381 284,938 246,230 296 Fund balances (deficits) - July 1, 2021 -99,056 1,366,081 1,030,876 240,004 Prior period adjustment (Note 18)-----
Fund balances (deficits) - July 1, 2021, restated -99,056 1,366,081 1,030,876 240,004 Fund balances (deficits) - June 30, 2022 $-$251,437 $1,651,019 $1,277,106 $240,300 105

CITY OF HOLLISTER

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022

CAPITAL PROJECT FUNDS
Storm Drain
Impact Fees
AB 1600 Santa
Ana Storm
Drain
Jail Juvenile
Hall
City Hall/City
Yard Impact
Fees
Total Non-
major
Governmental
Funds

REVENUES
Taxes $-$-$-$-$6,538,508
Licenses and permits --576,449 121,148 992,267
Intergovernmental ----6,596,329
Charges for service 1,068,837 ---3,933,119
Investment earnings (loss)7,706 2,622 511 401 34,732
Other revenues ----1,012,044
Total Revenues 1,076,543 2,622 576,960 121,549 19,106,999

EXPENDITURES
Current:

General government 1,001 150 576,449 18 817,947
Public safety ----6,997,175
Public works 295,970 ---1,836,036
Capital Outlay -14,275 --4,596,970
Total Expenditures 296,971 14,425 576,449 18 14,248,128 Excess (deficiency) of revenues over expenditures 779,572 (11,803)511 121,531 4,858,871

OTHER FINANCING SOURCES (USES)
Transfers out ---(1,817)(146,036)
Total Other Financing Sources (Uses)---(1,817)(146,036) Net change in fund balances 779,572 (11,803)511 119,714 4,712,835 Fund balances (deficits) - July 1, 2021 5,336,177 2,013,450 21,327 222,155 19,674,840 Prior period adjustment (Note 18)----292,604
Fund balances (deficits) - July 1, 2021, restated 5,336,177 2,013,450 21,327 222,155 19,967,444 Fund balances (deficits) - June 30, 2022 $6,115,749 $2,001,647 $21,838 $341,869 $24,680,279 106

CITY OF HOLLISTER

CDBG LOW INCOME HOUSING REHAB - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $600 $600 $762 $162
Other revenues --7,554 7,554
Total Revenues 600 600 8,316 7,716

EXPENDITURES
General Government
Non-Departmental
Contractual 600 600 11 589
Total General Government 600 600 11 589
Total Expenditures 600 600 11 589
Excess (deficiency) of revenues over
expenditures --8,305 8,305

OTHER FINANCING SOURCES (USES)
Transfers out (25,000)(25,000)-25,000
Total other financing sources
(uses)(25,000)(25,000)-25,000
Net change in fund balance $(25,000)$(25,000)8,305 $33,305 Fund balance - July 1, 2021 150,601
Fund balance - June 30, 2022 $158,906
107

CITY OF HOLLISTER

GAS TAX - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $1,057,659 $1,057,659 $972,036 $(85,623)
Investment earnings 800 800 148 (652)
Other revenues --126 126
Total Revenues 1,058,459 1,058,459 972,310 (86,149)

EXPENDITURES
General Government
Non-Departmental
Contractual 800 800 18 782
Total General Government 800 800 18 782
Public Works
Street Maintenance
Personnel 610,504 603,268 478,071 125,197
Services & Supplies 372,155 379,391 392,947 (13,556)
Contractual 5,000 5,000 4,567 433
Total Street Maintenance 987,659 987,659 875,585 112,074 Engineering
Services & Supplies 70,000 70,000 99,761 (29,761)
Total Public W orks 1,057,659 1,057,659 975,346 82,313
Total Expenditures 1,058,459 1,058,459 975,364 83,095
Net change in fund balance $-$-(3,054)$(3,054)
Fund balance - July 1, 2021 195,978
Fund balance - June 30, 2022 $192,924
108

CITY OF HOLLISTER

PARK DEDICATION - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for services $400,000 $400,000 $2,608,312 $2,208,312 Investment earnings 6,000 6,000 7,518 1,518
Total Revenues 406,000 406,000 2,615,830 2,209,830

EXPENDITURES
General Government
Non-Departmental
Contractual 4,000 4,000 312 3,688
Total General Government 4,000 4,000 312 3,688
Recreation
Parks
Capital 440,559 440,559 183,515 257,044
Total Recreation 440,559 440,559 183,515 257,044
Total Expenditures 444,559 444,559 183,827 260,732
Excess (deficiency) of revenues over
expenditures (38,559)(38,559)2,432,003 2,470,562

OTHER FINANCING SOURCES (USES)
Transfers out --(117,374)(117,374)
Total Other Financing Sources
(Uses)--(117,374)(117,374)
Net change in fund balance $(38,559)$(38,559)2,314,629 $2,353,188 Fund balance - July 1, 2021 4,020,301
Fund balance - June 30, 2022 $6,334,930
109

CITY OF HOLLISTER

LOCAL TRANSPORTATION - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings (loss)--(191)(191)
Total Revenues --(191)(191)

EXPENDITURES
General Government
Non-Departmental
Capital --10 (10)
Total General Government --10 (10)
Total Expenditures --10 (10)
Net change in fund balance $-$-(201)$(201)
Fund balance - July 1, 2021 -
Fund balance (deficit) - June 30, 2022 $(201)
* The City did not adopt a budget for the Local Transportation fund for the fiscal year ended June 30, 2022. 110

CITY OF HOLLISTER

ROAD REPAIR & ACCOUNTABILITY - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $784,700 $784,700 $836,402 $51,702
Investment earnings 2,500 2,500 85 (2,415)
Total Revenues 787,200 787,200 836,487 49,287

EXPENDITURES
General Government
Non-Departmental
Contractual --72 (72)
Total General Government --72 (72)
Capital outlay -2,309,839 3,105,433 (795,594)
Total Expenditures -2,309,839 3,105,505 (795,666)
Net change in fund balance $787,200 $(1,522,639)(2,269,018)$(746,379) Fund balance - July 1, 2021 1,103,220
Fund balance (deficit) - June 30, 2022 $(1,165,798)
111

CITY OF HOLLISTER

FEDERAL AVIATION ADMIN GRANT - MAJOR SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $-$-$72,291 $72,291
Total Revenues --72,291 72,291

EXPENDITURES
Public Works
Airport Runway
Capital --94,377 (94,377)
Total Expenditures --94,377 (94,377)
Net change in fund balance $-$-(22,086)$(22,086)
Fund balance - July 1, 2021 -
Prior period adjustment 150,000
Fund balance - July 1, 2021, restated 150,000
Fund balance - June 30, 2022 $127,914
* The City did not adopt a budget for the Federal Aviation Admin fund for the fiscal year ended June 30, 2022. 112

CITY OF HOLLISTER
4th OF JULY RALLY - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings (loss)$-$-$(340)$(340)
Other revenues --165 165
Total Revenues --(175)(175)

EXPENDITURES
General Government
Non-Departmental
Services & Supplies --72 (72)
Contractual --(19)19
Total General Government --53 (53)
Public Safety
Police
Service & Supplies --344 (344)
Total Public Safety --344 (344)
Total Expenditures --397 (397)
Net change in fund balance $-$-(572)$(572)
Fund balance (deficit) - July 1, 2021 (260,223)
Fund balance (deficit) - June 30, 2022 $(260,795)
*The City did not adopt a budget for the 4th of July Rally Fund for the year ended June 30, 2022. 113

CITY OF HOLLISTER

SAFER GRANT - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $734,577 $734,577 $1,396,622 $662,045 Total Revenues 734,577 734,577 1,396,622 662,045

EXPENDITURES
Public Safety
Fire
Personnel 1,259,274 1,259,274 789,642 469,632
Total Public Safety 1,259,274 1,259,274 789,642 469,632 Total Expenditures 1,259,274 1,259,274 789,642 469,632
Excess (deficiency) of revenues over
expenditures (524,697)(524,697)606,980 1,131,677

OTHER FINANCING SOURCES (USES)
Transfers in 524,697 524,697 -(524,697)
Total Other Financing Sources
(Uses)524,697 524,697 -(524,697)
Net change in fund balance $-$-606,980 $606,980
Fund balance (deficit) - July 1, 2021 (1,155,495)
Fund balance (deficit) - June 30, 2022 $(548,515)
114

CITY OF HOLLISTER

TRANSPORTATION DEVELOPMENT ACT - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $-$-$3,451,815 $3,451,815
Intergovernmental 10,636 10,636 -(10,636)
Investment earnings --8,800 8,800
Other --850,399 850,399
Total Revenues 10,636 10,636 4,311,014 4,300,378

EXPENDITURES
General Government
Non-Departmental
Contractual --(11)11
Total General Government --(11)11
Public Works
Engineering
Personnel 10,636 10,636 811 9,825
Services & Supplies -2,921,812 563,909 2,357,903
Capital 35,483 720,820 1,001,913 (281,093)
Total Engineering 46,119 3,653,268 1,566,633 2,086,635
Total Public W orks 46,119 3,653,268 1,566,633 2,086,635 Total Expenditures 46,119 3,653,268 1,566,622 2,086,646 Net change in fund balance $(35,483)$(3,642,632)2,744,392 $6,387,024 Fund balance - July 1, 2021 5,795,558
Fund balance - June 30, 2022 $8,539,950
115

CITY OF HOLLISTER

SPAY/NEUTER EDUCATION - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for services $8,000 $8,000 $7,519 $(481)
Investment earnings --32 32
Total Revenues 8,000 8,000 7,551 (449)

EXPENDITURES
General Government
Non-Departmental
Contractual 25 25 3 22
Total General Government 25 25 3 22
Public Safety
Animal Control
Services & Supplies 10,000 10,000 11,443 (1,443)
Total Public Safety 10,000 10,000 11,443 (1,443)
Total Expenditures 10,025 10,025 11,446 (1,421)
Net change in fund balance $(2,025)$(2,025)(3,895)$(1,870) Fund balance - July 1, 2021 23,606
Fund balance - June 30, 2022 $19,711
116

CITY OF HOLLISTER
MELLO ROOS CFD-001 - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $1,020,000 $1,020,000 $1,278,255 $258,255
Investment earnings 2,170 2,170 108 (2,062)
Total Revenues 1,022,170 1,022,170 1,278,363 256,193

EXPENDITURES
General Government
Non-Departmental
Contractual 1,025 1,025 757 268
Total General Government 1,025 1,025 757 268
Public Safety
Fire
Personnel 476,199 476,199 606,919 (130,720)
Police
Personnel 548,405 548,405 677,309 (128,904)
Total Public Safety 1,024,604 1,024,604 1,284,228 (259,624) Total Expenditures 1,025,629 1,025,629 1,284,985 (259,356) Excess (deficiency) of revenues over
expenditures (3,459)(3,459)(6,622)(3,163)

OTHER FINANCING SOURCES (USES)
Transfers out --(18,809)(18,809)
Total Other Financing Sources
(Uses)--(18,809)(18,809)
Net change in fund balance $(3,459)$(3,459)(25,431)$(21,972) Fund balance - July 1, 2021 3,458
Fund balance (deficit) - June 30, 2022 $(21,973)
117

CITY OF HOLLISTER

POLICE SPECIAL LAW ENFORCEMENT SAFETY - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $100,000 $100,000 $109,959 $9,959
Investment earnings --144 144
Total Revenues 100,000 100,000 110,103 10,103

EXPENDITURES
General Government
Non-Departmental
Contractual 75 75 9 66
Total General Government 75 75 9 66
Public Safety
Police
Capital 100,000 100,000 115,324 (15,324)
Total Public Safety 100,000 100,000 115,324 (15,324)
Total Expenditures 100,075 100,075 115,333 (15,258)
Net change in fund balance $(75)$(75)(5,230)$(5,155)
Fund balance - July 1, 2021 119,239
Fund balance - June 30, 2022 $114,009
118

CITY OF HOLLISTER

OFFICE OF TRAFFIC SAFETY - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $22,990 $114,190 $24,869 $(89,321)
Investment earnings --68 68
Total Revenues 22,990 114,190 24,937 (89,253)

EXPENDITURES
General Government
Non-Departmental
Contractual 50 50 2 48
Total General Government 50 50 2 48
Public Safety
Fire
Capital -114,000 -114,000
Police
Personnel 61,000 61,000 28,537 32,463
Capital --2,998 (2,998)
Total Police 61,000 61,000 31,535 29,465
Total Public Safety 61,000 175,000 31,535 143,465
Total Expenditures 61,050 175,050 31,537 143,513
Net change in fund balance $(38,060)$(60,860)(6,600)$54,260 Fund balance - July 1, 2021 38,019
Fund balance - June 30, 2022 $31,419
119

CITY OF HOLLISTER

ANIMAL WELFARE - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $40 $40 $31 $(9)
Other revenues 3,500 3,500 3,356 (144)
Total Revenues 3,540 3,540 3,387 (153)

EXPENDITURES
General Government
Non-Departmental
Contractual 40 40 2 38
Total General Government 40 40 2 38
Public Safety
Animal Control
Services & Supplies 23,600 23,600 2,200 21,400
Total Public Safety 23,600 23,600 2,200 21,400
Total Expenditures 23,640 23,640 2,202 21,438
Net change in fund balance $(20,100)$(20,100)1,185 $21,285 Fund balance - July 1, 2021 23,414
Fund balance - June 30, 2022 $24,599
120

CITY OF HOLLISTER
SB 1186 - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
License and permits $9,000 $9,000 $7,387 $(1,613)
Investment earnings 250 250 54 (196)
Total Revenues 9,250 9,250 7,441 (1,809)

EXPENDITURES
Total Expenditures ----
Net change in fund balance $9,250 $9,250 7,441 $(1,809) Fund balance - July 1, 2021 37,967
Fund balance - June 30, 2022 $45,408
121

CITY OF HOLLISTER

OFFSTREET PARKING - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $500 $500 $120 $(380)
Total Revenues 500 500 120 (380)

EXPENDITURES
General Government
Non-Departmental
Contractual 200 200 8 192
Total General Government 200 200 8 192
Total Expenditures 200 200 8 192
Net change in fund balance $300 $300 112 $(188)
Fund balance - July 1, 2021 91,804
Fund balance - June 30, 2022 $91,916
122

CITY OF HOLLISTER
2013 CDBG - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $-$-$76 $76
Total Revenues --76 76

EXPENDITURES
General Government
Planning
Contractual --11 (11)
Total General Government --11 (11)
Total Expenditures --11 (11)
Net change in fund balance $-$-65 $65
Fund balance - July 1, 2021 4,426
Fund balance - June 30, 2022 $4,491
* The City did not adopt a budget for the 2013 CDBG fund for the fiscal year ended June 30, 2022. 123

CITY OF HOLLISTER
2017 CDBG - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $339,331 $339,331 $15,814 $(323,517)
Total Revenues 339,331 339,331 15,814 (323,517)

EXPENDITURES
General Government
Planning
Personnel --1,583 (1,583)
Services & Supplies 129,000 129,000 4,464 124,536
Contractual 109,000 109,000 88,179 20,821
Total Planning 238,000 238,000 94,226 143,774
Total General Government 238,000 238,000 94,226 143,774 Recreation
Engineering
Capital 1,400 1,400 79,125 (77,725)
Total Recreation 1,400 1,400 79,125 (77,725)
Total Expenditures 239,400 239,400 173,351 66,049
Net change in fund balance $99,931 $99,931 (157,537)$(257,468) Fund balance (deficit) - July 1, 2021 (99,932)
Fund balance (deficit) - June 30, 2022 $(257,469)
124

CITY OF HOLLISTER
2020 CDBG - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $-$-$103,837 $103,837
Investment earnings (loss)--(2)(2)
Total Revenues $-$-$103,835 $103,835

EXPENDITURES
General Government
Planning
Services & Supplies --6,088 (6,088)
Contractual --138,610 (138,610)
Total Planning --144,698 (144,698)
Total General Government --144,698 (144,698)
Total Expenditures --144,698 (144,698)
Net change in fund balance $-$-(40,863)$(40,863)
Fund balance (deficit) - July 1, 2021 (75,230)
Fund balance (deficit) - June 30, 2022 $(116,093)
* The City did not adopt a budget for the 2020 CDBG fund for the fiscal year ended June 30, 2022. 125

CITY OF HOLLISTER
FEMA - COVID 19 - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings (loss)$-$-$(379)$(379)
Total Revenues --(379)(379)

EXPENDITURES
General Government
Non-Departmental
Contractual --(54)54
Total General Government --(54)54
Public Safety
Fire
Services & Supplies --7,844 (7,844)
Total Public Safety --7,844 (7,844)
Total Expenditures --7,790 (7,790)
Net change in fund balance $-$-(8,169)$(8,169)
Fund balance (deficit) - July 1, 2021 (733,546)
Fund balance (deficit) - June 30, 2022 $(741,715)
* The City did not adopt a budget for the FEMA - COVID 19 fund for the fiscal year ended June 30, 2022. 126

CITY OF HOLLISTER

CARES ACT - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $-$-$57 $57
Total Revenues --57 57

EXPENDITURES
General Government
Non-Departmental
Contractual --8 (8)
Total General Government --8 (8)
Total Expenditures --8 (8)
Net change in fund balance $-$-49 $49
Fund balance - July 1, 2021 40
Fund balance - June 30, 2022 $89
* The City did not adopt a budget for the CARES Act fund for the fiscal year ended June 30, 2022. 127

CITY OF HOLLISTER

ARPA - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $-$9,745,874 $4,872,937 $(4,872,937)
Investment earnings --417 417
Total Revenues -9,745,874 4,873,354 (4,872,520)

EXPENDITURES
General Government
Non-Departmental
Contractual -9,745,874 -9,745,874
Total General Government -9,745,874 -19,491,748
Public Safety
Fire
Personnel --2,328,902 (2,328,902)
Police
Personnel --2,544,035 (2,544,035)
Total Public Safety --4,872,937 (4,872,937)
Total Expenditures -9,745,874 4,872,937 4,872,937
Net change in fund balance $-$-417 $417
Fund balance - July 1, 2021 -
Fund balance - June 30, 2022 $417
128

CITY OF HOLLISTER

SIGNAL IMPROVEMENT FEE ON FLYNN - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $50 $50 $18 $(32)
Total Revenues 50 50 18 (32)

EXPENDITURES
General Government
Non-Departmental
Contractual 50 50 1 49
Total General Government 50 50 1 49
Total Expenditures 50 50 1 49
Net change in fund balance $-$-17 $17
Fund balance - July 1, 2021 14,150
Fund balance - June 30, 2022 $14,167
129

CITY OF HOLLISTER

TRAFFIC IMPACT FEES - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $200 $200 $64 $(136)
Total Revenues 200 200 64 (136)

EXPENDITURES
General Government
Non-Departmental
Contractual 200 200 4 196
Total General Government 200 200 4 196
Total Expenditures 200 200 4 196
Net change in fund balance $-$-60 $60
Fund balance - July 1, 2021 48,359
Fund balance - June 30, 2022 $48,419
130

CITY OF HOLLISTER

AFG GRANT - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original*Final*
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Total Revenues $-$-$-$-

EXPENDITURES
Total Expenditures ----
Net change in fund balance $-$--$-
Fund balance - July 1, 2021 -
Fund balance - June 30, 2022 $-
* The City did not adopt a budget for the AFG Grant fund for the fiscal year ended June 30, 2022. 131

CITY OF HOLLISTER

HOME PROGRAM REVOLVING LOANS - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $3,000 $3,000 $1,944 $(1,056)
Other revenues --150,444 150,444
Total Revenues 3,000 3,000 152,388 149,388

EXPENDITURES
General Government
Non-Departmental
Contractual 3,000 3,000 7 2,993
Planning
Total General Government 3,000 3,000 7 2,993
Total Expenditures 3,000 3,000 7 2,993
Net change in fund balance $-$-152,381 $152,381
Fund balance - July 1, 2021 99,056
Fund balance - June 30, 2022 $251,437
132

CITY OF HOLLISTER

FIRE IMPACT FEES - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
License and permits $280,000 $280,000 $287,283 $7,283
Investment earnings 1,500 1,500 2,063 563
Total Revenues 281,500 281,500 289,346 7,846

EXPENDITURES
General Government
Non-Departmental
Contractual 400 400 99 301
Total General Government 400 400 99 301
Total Expenditures 400 400 99 301

OTHER FINANCING SOURCES (USES)
Transfers out --(4,309)(4,309)
Total Other Financing Sources
(Uses)--(4,309)(4,309)
Net change in fund balance $281,100 $281,100 284,938 $3,838 Fund balance - July 1, 2021 1,366,081
Fund balance - June 30, 2022 $1,651,019
133

CITY OF HOLLISTER

POLICE IMPACT FEES - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for services $175,000 $175,000 $248,451 $73,451 Investment earnings 1,200 1,200 1,581 381
Total Revenues 176,200 176,200 250,032 73,832

EXPENDITURES
General Government
Non-Departmental
Contractual 400 400 75 325
Total General Government 400 400 75 325
Total Expenditures 400 400 75 325
Excess (deficiency) of revenues over
expenditures 175,800 175,800 249,957 74,157

OTHER FINANCING SOURCES (USES)
Transfers out --(3,727)(3,727)
Total Other Financing Sources
(Uses)--(3,727)(3,727)
Net change in fund balance $175,800 $175,800 246,230 $70,430 Fund balance - July 1, 2021 1,030,876
Fund balance - June 30, 2022 $1,277,106
134

CITY OF HOLLISTER

STORM DRAIN FEES - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $-$-$314 $314
Total Revenues --314 314

EXPENDITURES
General Government
Non-Departmental
Contractual 400 400 18 382
Total General Government 400 400 18 382
Public Works
Engineering
Services & Supplies -166,655 -166,655
Total Public W orks -166,655 -166,655
Total Expenditures 400 167,055 18 167,037
Net change in fund balance $(400)$(167,055)296 $167,351 Fund balance - July 1, 2021 240,004
Fund balance - June 30, 2022 $240,300
135

CITY OF HOLLISTER

STORM DRAIN IMPACT FEES - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for services $500,000 $500,000 $1,068,837 $568,837 Investment earnings 6,000 6,000 7,706 1,706
Total Revenues 506,000 506,000 1,076,543 570,543

EXPENDITURES
General Government
Non-Departmental
Services & Supplies --600 (600)
Contractual 19,000 19,000 401 18,599
Total Non-Departmental 19,000 19,000 1,001 17,999
Total General Government 19,000 19,000 1,001 17,999
Public Works
Engineering
Personnel 163,241 163,241 -163,241
Supplies & Services 349,066 349,066 243,921 105,145
Contractual 15,000 15,000 10,731 4,269
Total Engineering 527,307 527,307 254,652 272,655
Sewer Collection
Supplies & Services 47,300 47,300 39,570 7,730
Total Sewer Collection 47,300 47,300 39,570 7,730
Storm Drain Maintenance
Supplies & Services 2,000 2,000 1,748 252
Total Public W orks 576,607 576,607 295,970 272,655
Total Expenditures 595,607 595,607 296,971 298,636
Net change in fund balance $(89,607)$(89,607)779,572 $869,179 Fund balance - July 1, 2021 5,336,177
Fund balance - June 30, 2022 $6,115,749
136

CITY OF HOLLISTER
AB 1600 SANTA ANA STORM DRAIN - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Investment earnings $2,500 $2,500 $2,622 $122
Total Revenues 2,500 2,500 2,622 122

EXPENDITURES
General Government
Non-Departmental
Contractual 2,500 2,500 150 2,350
Total General Government 2,500 2,500 150 2,350
Public Safety
Police
Capital outlay --14,275 (14,275)
Total Public Safety --14,275 (14,275)
Total Expenditures 2,500 2,500 14,425 (11,925)
Net change in fund balance $-$-(11,803)$(11,803)
Fund balance - July 1, 2021 2,013,450
Fund balance - June 30, 2022 $2,001,647
137

CITY OF HOLLISTER

JAIL JUVENILE HALL - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
License and permits $90,000 $90,000 $576,449 $486,449
Investment earnings 2,500 2,500 511 (1,989)
Total Revenues 92,500 92,500 576,960 484,460

EXPENDITURES
General Governmental
Non-Departmental
Contractual 92,500 92,500 576,449 (483,949)
Total General Government 92,500 92,500 576,449 (483,949) Total Expenditures 92,500 92,500 576,449 (483,949)
Net change in fund balance $-$-511 $511
Fund balance - July 1, 2021 21,327
Fund balance - June 30, 2022 $21,838
138

CITY OF HOLLISTER

CITY HALL/CITY YARD IMPACT FEES - CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes $50,000 $50,000 $121,148 $71,148
Investment earnings 1,000 1,000 401 (599)
Total Revenues 51,000 51,000 121,549 70,549

EXPENDITURES
General Governmental
Non-Departmental
Contractual 1,000 1,000 18 982
Total General Government 1,000 1,000 18 982
Total Expenditures 1,000 1,000 18 982
Excess (deficiency) of revenues over
expenditures 50,000 50,000 121,531 71,531

OTHER FINANCING SOURCES (USES)
Transfers out --(1,817)(1,817)
Total Other Financing Sources
(Uses)--(1,817)(1,817)
Net change in fund balance $50,000 $50,000 119,714 $69,714 Fund balance - July 1, 2021 222,155
Fund balance - June 30, 2022 $341,869
139

CUSTODIAL FUNDS
Fiduciary Funds account for assets held by the City in a trustee capacity, or as an agent for private organizations, other governmental units, or other funds. The following are the City’s Fiduciary Funds:

Tricentennial - This fund accounts for assets held for the Tri-Centennial in a custodial capacity.

Veteran's Building Pavers - This fund accounts for assets held for the Veteran’s Building Pavers in a custodial capacity.

Helen Ross Memorial Donations - This fund accounts for the assets from the contributions from Helen Ross for the support of Animal W elfare activities.

Meridian Street - This fund accounts for assets held for the Meridian Street Assessment District in a custodial capacity.

San Benito Estates - This fund accounts for assets held for the San Benito Estates Assessment District in a custodial capacity.

Hollister Business Park - This fund accounts for assets held for the Hollister Business Park Assessment District in a custodial capacity.

Landscaping and Lighting - This fund accounts for assets held for the Landscaping and Lighting Assessment District in a custodial capacity.

Sunnyslope Village - This fund accounts for assets held for the Landscaping and Lighting Assessment District in a custodial capacity.

Gateway Auto Mall - This fund accounts for assets held for the Gateway Auto Mall Assessment District in a custodial capacity.

CFD#4 - This fund accounts for the inflows and outflows related to Community Facilities District #4.

CFD#5 Public Safety - This fund accounts for the inflows and outflows related to Community Facilities District #5.

Santana Ranch CFD - This fund accounts for the inflows and outflows related to the Santana Ranch Community Facilities District.
140

CITY OF HOLLISTER

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2022
Tri-
centennial
Veteran's
Building
Pavers
Helen Ross
Memorial
Donations
Meridian
Street
San Benito
Estates
ASSETS
Cash and investments $15 $3,333 $464,119 $144,467 $144,671 Restricted cash and
investments ---198,374 -
Accounts receivable -----
Interest receivable -2 255 79 79
Total Assets 15 3,335 464,374 342,920 144,750

LIABILITIES
Accounts payable -----
Accrued liabilities -----
Total Liabilities -----

NET POSITION
Restricted for
Individuals, organizations,
and other governments 15 3,335 464,374 342,920 144,750
Total Net Position $15 $3,335 $464,374 $342,920 $144,750 141

CITY OF HOLLISTER

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION (CONTINUED)

CUSTODIAL FUNDS
JUNE 30, 2022
Hollister
Business
Park
Landscaping
and Lighting
Sunnyslope
Village
Gateway Auto
Mall CFD#4
ASSETS
Cash and investments $166,885 $-$957 $112,357 $1,098,514 Restricted cash and
investments -----
Accounts receivable -2,721 --10,852
Interest receivable 92 (13)-62 612
Total Assets 166,977 2,708 957 112,419 1,109,978

LIABILITIES
Accounts payable -51,578 --20,404
Accrued liabilities -1,909 --638
Total Liabilities -53,487 --21,042

NET POSITION
Restricted for
Individuals, organizations,
and other governments 166,977 (50,779)957 112,419 1,088,936 Total Net Position $166,977 $(50,779)$957 $112,419 $1,088,936 142

CITY OF HOLLISTER

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION (CONTINUED)

CUSTODIAL FUNDS
JUNE 30, 2022
CFD#5 Public
Safety
Santana
Ranch CFD Total
ASSETS
Cash and investments $370,153 $37,758 $2,543,229
Restricted cash and investments
--198,374
Accounts receivable --13,573
Interest receivable 206 21 1,395
Total Assets 370,359 37,779 2,756,571

LIABILITIES
Accounts payable --71,982
Accrued liabilities --2,547
Total Liabilities --74,529

NET POSITION
Restricted for
Individuals, organizations, and other governments
370,359 37,779 2,682,042
Total Net Position $370,359 $37,779 $2,682,042
143

CITY OF HOLLISTER

COMBINING STATEMENT OF CHANGES FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Tri-
centennial
Veteran's
Building
Pavers
Helen Ross
Memorial
Donations
Meridian
Street
San Benito
Estates

ADDITIONS
Property taxes $-$-$-$-$-
Investment earnings (loss)-4 600 387 189
Other revenues -1,651 17,908 --
Total Additions -1,655 18,508 387 189

DELETIONS
Contract services $-$-$-$3,025 $11
Operating costs -2,250 ---
Debt service:

Principal ---170,000 -
Interest ---19,238 -
Total Deletions -2,250 -192,263 11
Change in Fiduciary Net
Position -(595)18,508 (191,876)178
Fiduciary Net Position-
Beginning 15 3,930 445,866 534,796 144,572
Fiduciary Net Position -
Ending $15 $3,335 $464,374 $342,920 $144,750
144

CITY OF HOLLISTER

COMBINING STATEMENT OF CHANGES FIDUCIARY NET POSITION (CONTINUED)

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Hollister
Business
Park
Landscaping
and Lighting
Sunnyslope
Village
Gateway Auto
Mall CFD#4

ADDITIONS
Property taxes $-$217,715 $-$-$1,003,605
Investment earnings (loss)218 (63)1 147 971
Other revenues -2 ---
Total Additions 218 217,654 1 147 1,004,576

DELETIONS
Contract services $11 $1,296 $-$9 $586
Operating costs -306,209 --303,989
Debt service:

Principal -----
Interest -----
Total Deletions 11 307,505 -9 304,575
Change in Fiduciary Net
Position 207 (89,851)1 138 700,001
Fiduciary Net Position-
Beginning 166,770 39,072 956 112,281 388,935
Fiduciary Net Position -
Ending $166,977 $(50,779)$957 $112,419 $1,088,936
145

CITY OF HOLLISTER

COMBINING STATEMENT OF CHANGES FIDUCIARY NET POSITION (CONTINUED)

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
CFD#5 Public
Safety
CFD#5 Public
Safety Total

ADDITIONS
Property taxes $320,960 $-$1,542,280
Investment earnings (loss)297 50 2,801
Other revenues --19,561
Total Additions 321,257 50 1,564,642

DELETIONS
Contract services $107 $3 $5,048
Operating costs 4,814 -617,262
Debt service:

Principal --170,000
Interest --19,238
Total Deletions 4,921 3 811,548
Change in Fiduciary Net Position
316,336 47 753,094
Fiduciary Net Position- Beginning
54,023 37,732 1,928,948
Fiduciary Net Position - Ending
$370,359 $37,779 $2,682,042
146

SEWER FUNDS
The following funds are reported in the Statement of Net Position - Business Type funds under the column "Sewer Funds."
Sewer Enterprise - This fund was established to account for the City’s costs of providing sewer services to the citizens of the City of Hollister.

Sewer Expansion - This fund is used to track the inflows and outflows for sewer impact related to new development.

Sewer Industrial - This fund is used to track the inflow and outflows for activities at the City's Industrial Wastewater facility.
147

CITY OF HOLLISTER

COMBINING SCHEDULE OF NET POSITION

SEWER FUNDS
JUNE 30, 2022
Sewer
Enterprise
Sewer
Expansion Sewer Industrial Total
ASSETS
Current Assets
Cash and investments $2,787,950 $25,291,122 $-$28,079,072 Accounts receivable, net of allowance 2,411,900 20,349 987,299 3,419,548 Interest receivable 3,674 13,933 (2,103)15,504
Due from other funds 3,826,564 --3,826,564
Deferred charges, net 128,054 --128,054
Total Current Assets 9,158,142 25,325,404 985,196 35,468,742 Non-Current Assets
Restricted cash and investments 407 --407
Capital assets
Nondepreciable 5,300,970 --5,300,970
Depreciable, net of accumulated
depreciation 88,574,785 --88,574,785
Total Non-Current Assets 93,876,162 --93,876,162
Total Assets 103,034,304 25,325,404 985,196 129,344,904

DEFERRED OUTFLOWS OF RESOURCES
2022 Pension contributions 294,790 --294,790
Changes in total OPEB liability 167,743 --167,743
Changes in the net pension liability 259,382 --259,382
Total Deferred Outflows of Resources 721,915 --721,915

LIABILITIES
Current Liabilities
Accounts payable $367,643 $-$53,650 $421,293
Accrued payroll & benefits 84,337 1 -84,338
Interest payable 182,871 --182,871
Due to other funds --3,826,564 3,826,564
Deposits 301,446 --301,446
Compensated absences - current 109,882 --109,882
Bonds & finance purchases - current portion 2,833,570 --2,833,570 Total Current Liabilities 3,879,749 1 3,880,214 7,759,964 Non-Current Liabilities
Compensated absences - noncurrent 19,280 --19,280
Bonds & finance purchases - noncurrent 53,570,950 --53,570,950 Total OPEB obligation 555,763 --555,763
Net pension liability 781,154 --781,154
Total Non-Current Liabilities 54,927,147 --54,927,147
Total Liabilities 58,806,896 1 3,880,214 62,687,111

DEFERRED INFLOWS OF RESOURCES
Changes in the net pension liability 713,777 --713,777
Changes in the total OPEB liability 93,038 --93,038
Total Deferred Inflows of Resources 806,815 --806,815

NET POSITION
Net investment in capital assets 37,471,235 --37,471,235 Restricted for debt services 407 --407
Unrestricted 6,670,866 25,325,403 (2,895,018)29,101,251 Total Net Position $44,142,508 $25,325,403 $(2,895,018)$66,572,893 148

CITY OF HOLLISTER

COMBINING SCHEDULE OF REVENUE, EXPENSES AND CHANGES IN NET POSITION

SEWER FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Sewer
Enterprise
Sewer
Expansion Sewer Industrial Total

OPERATING REVENUES
Charges for services $15,963,843 $4,214,522 $1,549,714 $21,728,079 Total Operating Revenue 15,963,843 4,214,522 1,549,714 21,728,079

OPERATING EXPENSES
Personnel services 2,196,161 272 2,028 2,198,461
Contractual and professional services 2,131,538 343,220 49,506 2,524,264 Supplies and operating costs 2,321,993 1,577 877,537 3,201,107 Utilities 1,086,584 -619,656 1,706,240
Depreciation 3,876,666 --3,876,666
Total Operating Expenses 11,612,942 345,069 1,548,727 13,506,738 Operating Income (Loss)4,350,901 3,869,453 987 8,221,341

NON-OPERATING REVENUES (EXPENSES)
Investment income (loss)9,280 32,036 (4,584)36,732
Interest expense (1,913,172)--(1,913,172)
Total Non-Operating Revenues
(Expenses)(1,903,892)32,036 (4,584)(1,876,440)
Income (Loss) Before Transfers 2,447,009 3,901,489 (3,597)6,344,901

TRANSFERS
Transfers out -(129,260)-(129,260)
Total Transfers -(129,260)-(129,260)
Change in Net Position 2,447,009 3,772,229 (3,597)6,215,641 Total Net Position - July 1, 2021 41,695,499 21,553,174 (2,891,421)60,357,252 Total Net Position - June 30, 2022 $44,142,508 $25,325,403 $(2,895,018)$66,572,893 149

CITY OF HOLLISTER

COMBINING SCHEDULE OF CASH FLOWS

SEWER FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Sewer
Enterprise
Sewer
Expansion Sewer Industrial Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash receipts from customers $15,024,226 $4,214,522 $562,415 $19,801,163 Cash paid to suppliers for goods and
services (5,463,679)(344,797)(1,913,100)(7,721,576)
Cash paid to employees (2,017,969)(272)(2,028)(2,020,269) Net Cash Provided by (Used for) Operating
Activities 7,542,578 3,869,453 (1,352,713)10,059,318

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfer out -(129,260)-(129,260)
Interfund receipts - reimbursements --1,356,010 1,356,010 Interfund loans made (1,356,010)--(1,356,010)
Net Cash Provided by (Used for) Noncapital
Financing Activities (1,356,010)(129,260)1,356,010 (129,260)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal paid on capital debt (2,321,269)--(2,321,269) Interest paid on capital debt (1,922,776)--(1,922,776)
Bond issuance costs (388,095)--(388,095)
Acquisition and construction of capital assets (703,064)--(703,064) Net Cash Used for Capital and Related
Financing Activities (5,335,204)--(5,335,204)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends received 7,136 25,780 (3,297)29,619 Net Cash Provided by (Used for) Investing
Activities 7,136 25,780 (3,297)29,619
Net Increase in Cash and Cash Equivalents 858,500 3,765,973 -4,624,473 Cash and Cash Equivalents - July 1, 2021 1,929,857 21,525,149 -23,455,006 Cash and Cash Equivalents - June 30, 2022 $2,788,357 $25,291,122 $-$28,079,479

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF

NET POSITION
Cash and investments $2,787,950 $25,291,122 $-$28,079,072 Restricted cash and investments 407 --407
Total Cash and Investments $2,788,357 $25,291,122 $-$28,079,479 150

CITY OF HOLLISTER

COMBINING SCHEDULE OF CASH FLOWS (CONTINUED)

SEWER FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Sewer
Enterprise
Sewer
Expansion Sewer Industrial Total

RECONCILIATION OF OPERATING INCOME

TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES:

Operating Income $4,350,901 $3,869,453 $987 $8,221,341
Adjustments to reconcile operating income to
net cash provided by (used for) operating
activities:

Depreciation expense 3,876,666 --3,876,666
Pension and OPEB expense 151,551 --151,551
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (975,608)-(987,299)(1,962,907) Increase (decrease) in accounts payable 76,436 -(366,401)(289,965) Increase (decrease) in deposits payable 35,991 --35,991 Increase (decrease) in accrued payroll and
benefits 50,074 --50,074
Increase (decrease) in compensated
absences (23,433)--(23,433)
Net Cash Provided by (Used for) Operating
Activities $7,542,578 $3,869,453 $(1,352,713)$10,059,318 151

December 10, 2025

To City Council
City of Hollister
375 Fifth Street
Hollister, California 95023

We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Hollister (the City) for the year ended June 30, 2022.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 10, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices,
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City adopted Statement of Governmental Accounting Standards (GASB Statement) No. 8 7, Leases, in 2022. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Depreciation: Management’s estimate of depreciation is based on the City’s capitalization policy.

Allowance for uncollectible accounts: Management’s estimate of uncollectible accounts is based on the City’s analysis of current and historical collections and write-offs.

Allowance for notes receivable: Management’s allowance for notes receivable is based on management’s specific identification of loans with long-term deferrals and non-current payments.

Net pension liability and other post-employment benefits (OPEB) liability: Management’s estimates for the net OPEB and net pension liabilities are based on actuarial valuations.

Lease receivable, deferred inflows of resources, and lease right -to-use asset and liabilities: Management’s estimate of leases is based on the present value of payments to be received or made.

We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

The financial statements disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
The completion of the audit was delayed due to personnel turnover and the fact that processes utilized for closing and financial reporting of financial activity for the fiscal year were not effective. It should be noted the fiscal year June 30, 2021 audit was completed in May 2024. The City attempted to close the books for fiscal year 2022 by the end of calendar 2024. There were some delays in getting the auditors the trial balance and requested audit schedules by the agreed upon timeline. The year-end audit for June 30, 2022 fiscal year-end began in January 2025. Audit schedules and reconciliations received were either lacking or not prepared accurately resulting in numerous journal entries proposed.

Approximately 50 journal entries were posted to the final trial balance for audit.

U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Attachment A summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. The material misstatements in Attachment B were detected as a result of audit procedures and were corrected by management.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. W e are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 10, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other significant matters discussed with management include the material weaknesses and significant deficiencies issued for the year ended June 30, 2022, which were reported in the Schedule of Findings and Questioned Costs included in the Single Audit and Related Reports package. The material weaknesses and significant deficiencies indicate there is a high risk that potential errors may not be prevented, or detected and corrected, on a timely basis.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, the schedule of proportionate share of the net pension liability, the schedule of contributions to the pension plan, the schedule of changes in the new OPEB liability and relates ratios, and the schedule of contributions to the OPEB plan, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund financial statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

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

Very truly yours,

MUN CPAs, LLP
MUN CPAsLLP

Description
Assets &
Deferred
Outflows
Liabilities &
Deferred
Inflows Equity Revenue Expenses
Current Year Differences
Gas tax revenue 6,574$ -$ -$ 6,574$ -$ Projected unrecorded liabilities - 34,940$ - - 34,940$ To true-up pension contributions 63,397$ -$ -$ -$ (63,397)$ Total Income Statement Effect 6,574$ (28,457)$
Balance Sheet Effect 69,971$ 34,940$ -$ Effect - Increase (Decrease)
Attachment A

CITY OF HOLLISTER

SUMMARY OF PASSED AUDIT ADJUSTMENTS
June 30, 2022

City of Hollister
Year End: June 30, 2022 Attachment B
Adj usting j ournal entries
Date: 07/1/2021 To 06/30/2022
Number Account Name Account No. Debit Credit
1 CHISPA BUENA VISTA L.P. LOAN 160010 809 3,468.00
1 VISTA MEADOWS_DBA MIDPEN HOUSING 160026 851 115,848.00 1 CSDC EAST STREET LOAN 160204 851 157.00
1 CSDC 7TH STREET LOAN 160206 851 165.00
1 CSDC RUSTIC ST ACQUISITION 160210 851 2,804.00
1 CDBG/D. & L. Allen--950 PEACH CT 160212 201 2,173.00
1 RUSTIC STREET PURCHASE 160404 851 900.00
1 PALM COURT PROJECT 160412 851 112,729.00
1 CSDC E. ST. LOAN DUE 6/1/51 + 1% INTEREST 160509 809 506.00 1 CSDC 7TH. ST LOAN DUE 6/1/51 + 1% INTEREST 160510 809 797.00 1 CSDC EAST ST LOAN_1% INT. AMORITIZED_30 YRS 160512 809 269.00 1 CSDC 7TH ST LOAN_1% INT AMORTIZED_30 YRS 160514 809 367.00 1 CHISPA-SENIOR SUNRISE APARTMENTS 160519 101 16,463.00 1 CHISPA-SENIOR SUNRISE APARTMENTS 160519 851 32,925.00 1 DEFERRED REVENUE 275005 101 (16,463.00)
1 DEFERRED REVENUE 275005 851 (232,603.00)
1 DEFERRED REVENUE 275005 851 (32,925.00)
1 DEFERRED REVENUE 275005 201 (2,173.00)
1 DEFERRED REVENUE 275005 809 (5,407.00)
To record interest related to loans receivable
3 AMT TO BE PROVIDED 140001 950 2,263,016.00
Fund 950 is out of balance per the originall trial balance provided. This difference relates to 2021 pension & OPEB expense. 4 07WW-PPD BOND ISSUANCE COSTS 135002 660 (8,585.00)
4 AMT TO BE PROVIDED 140001 950 1,870,332.00
4 John Deere Tractors Lease 260004 601 1,861.00
4 John Deere Tractors Lease 260004 620 16,269.00
4 John Deere Tractors Lease 260004 660 16,269.00
4 John Deere Tractors Lease 260004 950 42,091.00
4 BOND ISSUANCE PREMIUM 290032 660 396,680.00
4 BOND PREMIUM 290032 850 232,477.00
4 Energy Savings Loan 290812 950 2,797.00
4 Fire Engine Lease 290814 950 (2,260,597.00)
4 Fire Engine Lease 290814 950 204,793.00
4 FIRE TRUCK LEASE (4 VEHICLES) 290815 950 140,584.00
4 INTEREST PAYMENTS 1100-747000 101 (41.00)
4 INTEREST PAYMENTS 1100-747000 850 (232,477.00)
4 PREMIUM/ DEF CHGS AMORTIZATION 1100-747002 660 (388,095.00) 4 PRINCIPAL PAYMENTS 1100-748000 101 41.00
4 INTEREST PAYMENTS 4200-747000 601 (6.00)
4 PRINCIPAL PAYMENTS 4200-748000 601 (1,861.00)
4 PRINCIPAL PAYMENTS 4200-748000 601 6.00
4 INTEREST PAYMENTS 4995-747000 660 (50.00)
4 PRINCIPAL PAYMENTS 4995-748000 660 (16,269.00)
4 PRINCIPAL PAYMENTS 4995-748000 660 50.00
4 INTEREST PAYMENTS 5010-747000 101 (51.00)
4 PRINCIPAL PAYMENTS 5010-748000 101 51.00
4 INTEREST PAYMENTS 5035-747000 620 (50.00)
4 PRINCIPAL PAYMENTS 5035-748000 620 (16,269.00)
4 PRINCIPAL PAYMENTS 5035-748000 620 50.00
4 INTEREST PAYMENTS 7000-747000 101 (49.00)
4 PRINCIPAL PAYMENTS 7000-748000 101 49.00
To record changes in long-term debt.

5 DEFERRED OUTFLOWS - GASB 75 140102 950 (32,682.00)
5 DEFERRED OUTFLOWS - GASB 75 140102 950 1,298,788.00
5 DEFERRED OUTFLOWS - GASB 75 140102 950 (258.00)
5 Changes in the Total OPEB Liability 171002 620 (2,872.00) 5 Changes in the Total OPEB Liability 171002 620 105,715.00 5 Changes in the Total OPEB Liability 171002 620 191.00 5 Changes in the Total OPEB Liability 171002 660 (2,748.00) 5 Changes in the Total OPEB Liability 171002 660 105,715.00 5 Changes in the Total OPEB Liability 171002 660 67.00
5 DEFERRED INFLOWS - GASB 75 260102 950 (156,848.00)
5 NET OPEB OBLIGATION 260650 950 (1,539,882.00)
5 Changes in the Total OPEB Liability 295002 620 (12,767.00) 5 Changes in the Total OPEB Liability 295002 660 (12,767.00) 5 NET OPEB 296000 620 (125,339.00)
5 NET OPEB 296000 660 (125,339.00)
5 OPEB Expense -GASB 75 0000-701025 620 35,072.00
5 OPEB Expense - GASB 75 0000-701025 660 35,072.00
5 OPEB Expense - GASB 75 0000-701025 950 430,882.00
To record GASB 75 activity
6 PROCEEDS FROM THE ISSUANCE OF DEBT 1000-470004 101 (2,260,597.00) 6 VEHICLES 2205-750080 101 2,260,597.00
To record new fire engine financed purchase in the governmental funds 7 ACCOUNTS RECEIVABLE 120001 101 (9,541.00)
7 ACCOUNTS RECEIVABLE 120001 105 917.00
7 ACCOUNTS RECEIVABLE 120001 304 (15,710.00)
7 ACCOUNTS RECEIVABLE 120001 851 (737.00)
7 ACCOUNTS RECEIVABLE 120001 601 153.00
7 ACCOUNTS RECEIVABLE 120001 670 1,280.00
7 ACCOUNTS RECEIVABLE 120001 680 (184.00)
7 ACCOUNTS RECEIVABLE 120001 620 (248.00)
7 ACCOUNTS RECEIVABLE 120001 621 (2,867.00)
7 ACCOUNTS RECEIVABLE 120001 660 (3,674.00)
7 ACCOUNTS RECEIVABLE 120001 661 (13,933.00)
7 ACCOUNTS RECEIVABLE 120001 665 2,103.00
7 ACCOUNTS RECEIVABLE 120001 200 458.00
7 ACCOUNTS RECEIVABLE 120001 201 (87.00)
7 ACCOUNTS RECEIVABLE 120001 203 (37.00)
7 ACCOUNTS RECEIVABLE 120001 205 (3,600.00)
7 ACCOUNTS RECEIVABLE 120001 206 201.00
7 ACCOUNTS RECEIVABLE 120001 216 (4,388.00)
7 ACCOUNTS RECEIVABLE 120001 217 (12.00)
7 ACCOUNTS RECEIVABLE 120001 221 (63.00)
7 ACCOUNTS RECEIVABLE 120001 223 (31.00)
7 ACCOUNTS RECEIVABLE 120001 226 (14.00)
7 Accounts Receivable 120001 229 143.00
7 Accounts Receivable 120001 231 (25.00)
7 Accounts Receivable 120001 239 (50.00)
7 ACCOUNTS RECEIVABLE 120001 262 (8.00)
7 Accounts Receivable 120001 264 (27.00)
7 ACCOUNTS RECEIVABLE 120001 809 (138.00)
7 ACCOUNTS RECEIVABLE 120001 301 (909.00)
7 ACCOUNTS RECEIVABLE 120001 302 (703.00)
7 ACCOUNTS RECEIVABLE 120001 303 (132.00)
7 ACCOUNTS RECEIVABLE 120001 305 (1,099.00)
7 Accounts Receivable 120001 309 (329.00)
7 Accounts Receivable 120001 313 (189.00)
7 ACCOUNTS RECEIVABLE 120001 662 (3,331.00)
7 ACCOUNTS RECEIVABLE 120001 505 (2.00)
7 Accounts Receivable 120001 506 (255.00)
7 Accounts Receivable 120001 850 (1,338.00)
7 ACCOUNTS RECEIVABLE 120001 704 (79.00)
7 ACCOUNTS RECEIVABLE 120001 706 (79.00)
7 ACCOUNTS RECEIVABLE 120001 708 (92.00)
7 ACCOUNTS RECEIVABLE 120001 709 13.00

7 ACCOUNTS RECEIVABLE 120001 711 (62.00)
7 ACCOUNTS RECEIVABLE 120001 712 (612.00)
7 ACCOUNTS RECEIVABLE 120001 713 (206.00)
7 ACCOUNTS RECEIVABLE 120001 714 (21.00)
7 INTEREST INCOME 1000-450001 101 9,541.00
7 INTEREST INCOME 1000-450001 105 (917.00)
7 INTEREST INCOME 1000-450001 304 15,710.00
7 INTEREST INCOME 1000-450001 851 737.00
7 INTEREST INCOME 1000-450001 601 (153.00)
7 INTEREST INCOME 1000-450001 670 (1,280.00)
7 INTEREST INCOME 1000-450001 680 184.00
7 INTEREST INCOME 1000-450001 620 248.00
7 INTEREST INCOME 1000-450001 621 2,867.00
7 INTEREST INCOME 1000-450001 660 3,674.00
7 INTEREST INCOME 1000-450001 661 13,933.00
7 INTEREST INCOME 1000-450001 665 (2,103.00)
7 INTEREST INCOME 1000-450001 200 (458.00)
7 INTEREST INCOME 1000-450001 201 87.00
7 INTEREST INCOME 1000-450001 203 37.00
7 INTEREST INCOME 1000-450001 205 3,600.00
7 INTEREST INCOME 1000-450001 206 (201.00)
7 INTEREST INCOME 1000-450001 216 4,388.00
7 INTEREST INCOME 1000-450001 217 12.00
7 INTEREST INCOME 1000-450001 221 63.00
7 INTEREST INCOME 1000-450001 223 31.00
7 INTEREST INCOME 1000-450001 226 14.00
7 INTEREST INCOME 1000-450001 229 (143.00)
7 INTEREST INCOME 1000-450001 231 25.00
7 INTEREST INCOME 1000-450001 239 50.00
7 INTEREST INCOME 1000-450001 262 8.00
7 INTEREST INCOME 1000-450001 264 27.00
7 INTEREST INCOME 1000-450001 809 138.00
7 INTEREST INCOME 1000-450001 301 909.00
7 INTEREST INCOME 1000-450001 302 703.00
7 INTEREST INCOME 1000-450001 303 132.00
7 INTEREST INCOME 1000-450001 305 1,099.00
7 INTEREST INCOME 1000-450001 309 329.00
7 INTEREST INCOME 1000-450001 313 189.00
7 INTEREST INCOME 1000-450001 662 3,331.00
7 INTEREST INCOME 1000-450001 505 2.00
7 INTEREST INCOME 1000-450001 506 255.00
7 INTEREST INCOME 1000-450001 850 1,338.00
7 INTEREST INCOME 1000-450001 704 79.00
7 INTEREST INCOME 1000-450001 706 79.00
7 INTEREST INCOME 1000-450001 708 92.00
7 INTEREST INCOME 1000-450001 709 (13.00)
7 INTEREST INCOME 1000-450001 711 62.00
7 INTEREST INCOME 1000-450001 712 612.00
7 Interest Income 1000-450001 713 206.00
7 INTEREST INCOME 1000-450001 714 21.00
To reverse interest receivable
8 INTEREST RECEIVABLE 120010 101 9,541.00
8 INTEREST RECEIVABLE 120010 105 (917.00)
8 INTEREST RECEIVABLE 120010 304 15,710.00
8 INTEREST RECEIVABLE 120010 851 737.00
8 INTEREST RECEIVABLE 120010 601 (153.00)
8 INTEREST RECEIVABLE 120010 670 (1,280.00)
8 INTEREST RECEIVABLE 120010 680 184.00
8 INTEREST RECEIVABLE 120010 620 248.00
8 INTEREST RECEIVABLE 120010 621 2,867.00
8 INTEREST RECEIVABLE 120010 660 3,674.00
8 INTEREST RECEIVABLE 120010 661 13,933.00
8 INTEREST RECEIVABLE 120010 665 (2,103.00)
8 INTEREST RECEIVABLE 120010 200 (458.00)
8 INTEREST RECEIVABLE 120010 201 87.00
8 INTEREST RECEIVABLE 120010 203 37.00
8 INTEREST RECEIVABLE 120010 205 3,600.00
8 INTEREST RECEIVABLE 120010 206 (201.00)

8 INTEREST RECEIVABLE 120010 216 4,388.00
8 INTEREST RECEIVABLE 120010 217 12.00
8 INTEREST RECEIVABLE 120010 221 63.00
8 INTEREST RECEIVABLE 120010 223 31.00
8 INTEREST RECEIVABLE 120010 226 14.00
8 INTEREST RECEIVABLE 120010 229 (143.00)
8 INTEREST RECEIVABLE 120010 231 25.00
8 INTEREST RECEIVABLE 120010 239 50.00
8 INTEREST RECEIVABLE 120010 262 8.00
8 INTEREST RECEIVABLE 120010 264 27.00
8 INTEREST RECEIVABLE 120010 809 138.00
8 INTEREST RECEIVABLE 120010 301 909.00
8 INTEREST RECEIVABLE 120010 302 703.00
8 INTEREST RECEIVABLE 120010 303 132.00
8 INTEREST RECEIVABLE 120010 305 1,099.00
8 INTEREST RECEIVABLE 120010 309 329.00
8 Interest Receivable 120010 313 189.00
8 INTEREST RECEIVABLE 120010 662 3,331.00
8 INTEREST RECEIVABLE 120010 505 2.00
8 INTEREST RECEIVABLE 120010 506 255.00
8 INTEREST RECEIVABLE 120010 850 1,338.00
8 INTEREST RECEIVABLE 120010 704 79.00
8 INTEREST RECEIVABLE 120010 706 79.00
8 INTEREST RECEIVABLE 120010 708 92.00
8 INTEREST RECEIVABLE 120010 709 (13.00)
8 INTEREST RECEIVABLE 120010 711 62.00
8 INTEREST RECEIVABLE 120010 712 612.00
8 INTEREST RECEIVABLE 120010 713 206.00
8 Interest Receivable 120010 714 21.00
8 INTEREST INCOME 1000-450001 101 (9,541.00)
8 INTEREST INCOME 1000-450001 105 917.00
8 INTEREST INCOME 1000-450001 304 (15,710.00)
8 INTEREST INCOME 1000-450001 851 (737.00)
8 INTEREST INCOME 1000-450001 601 153.00
8 INTEREST INCOME 1000-450001 670 1,280.00
8 INTEREST INCOME 1000-450001 680 (184.00)
8 INTEREST INCOME 1000-450001 620 (248.00)
8 INTEREST INCOME 1000-450001 621 (2,867.00)
8 INTEREST INCOME 1000-450001 660 (3,674.00)
8 INTEREST INCOME 1000-450001 661 (13,933.00)
8 INTEREST INCOME 1000-450001 665 2,103.00
8 INTEREST INCOME 1000-450001 200 458.00
8 INTEREST INCOME 1000-450001 201 (87.00)
8 INTEREST INCOME 1000-450001 203 (37.00)
8 INTEREST INCOME 1000-450001 205 (3,600.00)
8 INTEREST INCOME 1000-450001 206 201.00
8 INTEREST INCOME 1000-450001 216 (4,388.00)
8 INTEREST INCOME 1000-450001 217 (12.00)
8 INTEREST INCOME 1000-450001 221 (63.00)
8 INTEREST INCOME 1000-450001 223 (31.00)
8 INTEREST INCOME 1000-450001 226 (14.00)
8 INTEREST INCOME 1000-450001 229 143.00
8 INTEREST INCOME 1000-450001 231 (25.00)
8 INTEREST INCOME 1000-450001 239 (50.00)
8 INTEREST INCOME 1000-450001 262 (8.00)
8 INTEREST INCOME 1000-450001 264 (27.00)
8 INTEREST INCOME 1000-450001 809 (138.00)
8 INTEREST INCOME 1000-450001 301 (909.00)
8 INTEREST INCOME 1000-450001 302 (703.00)
8 INTEREST INCOME 1000-450001 303 (132.00)
8 INTEREST INCOME 1000-450001 305 (1,099.00)
8 INTEREST INCOME 1000-450001 309 (329.00)
8 INTEREST INCOME 1000-450001 313 (189.00)
8 INTEREST INCOME 1000-450001 662 (3,331.00)
8 INTEREST INCOME 1000-450001 505 (2.00)
8 INTEREST INCOME 1000-450001 506 (255.00)
8 INTEREST INCOME 1000-450001 850 (1,338.00)
8 INTEREST INCOME 1000-450001 704 (79.00)
8 INTEREST INCOME 1000-450001 706 (79.00)
8 INTEREST INCOME 1000-450001 708 (92.00)
8 INTEREST INCOME 1000-450001 709 13.00

8 INTEREST INCOME 1000-450001 711 (62.00)
8 INTEREST INCOME 1000-450001 712 (612.00)
8 Interest Income 1000-450001 713 (206.00)
8 INTEREST INCOME 1000-450001 714 (21.00)
To reclass interest Receivable
10 PAYROLL: IRC 125 CHILD/MED R 240020 709 (1.00)
10 FUND BALANCE 300101 101 (690.00)
10 FUND BALANCE 300101 304 (1.00)
10 FUND BALANCE 300101 601 (21.00)
10 FUND BALANCE 300101 670 1.00
10 FUND BALANCE 300101 620 1.00
10 FUND BALANCE 300101 621 1.00
10 FUND BALANCE 300101 660 (1,048.00)
10 FUND BALANCE 300101 661 2.00
10 FUND BALANCE 300101 200 (1.00)
10 FUND BALANCE 300101 203 1.00
10 FUND BALANCE 300101 205 1.00
10 FUND BALANCE 300101 216 2.00
10 FUND BALANCE 300101 218 1.00
10 FUND BALANCE 300101 221 (1.00)
10 FUND BALANCE 300101 223 (1.00)
10 FUND BALANCE 300101 229 (1.00)
10 FUND BALANCE 300101 239 (1.00)
10 FUND BALANCE 300101 241 1.00
10 FUND BALANCE 300101 246 1.00
10 FUND BALANCE 300101 809 1.00
10 FUND BALANCE 300101 301 1.00
10 Fund Balance 300101 313 (1.00)
10 FUND BALANCE 300101 506 (1.00)
10 FUND BALANCE 300101 708 1.00
10 FUND BALANCE 300101 709 1.00
10 FUND BALANCE 300101 710 1.00
10 PROP. TAX_MELLO ROOS DIST #2 1000-401007 218 (1.00)
10 PARK CONSTRUCTION 1000-440093 205 (1.00)
10 INTEREST INCOME 1000-450001 620 (1.00)
10 INTEREST INCOME 1000-450001 809 (1.00)
10 INTEREST INCOME 1000-450001 710 (1.00)
10 Unrealized Gain On Investments 1000-450999 216 (2.00) 10 Unrealized Gain On Investments 1000-450999 223 1.00
10 UNREALIZED GAIN ON INVESTMENTS 1000-450999 506 1.00
10 Reimbursements 1000-490005 203 (1.00)
10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 661 (2.00) 10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 200 1.00
10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 221 1.00
10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 239 1.00
10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 301 (1.00) 10 Contracts: Bank Service Charge 1100-740025 313 1.00
10 CONTRACTS: BANK SERVICE CHARGE 1100-740025 708 (1.00) 10 WORKERS COMPENSATION 1155-701011 670 (1.00)
10 UNIFORM ALLOWANCE 2205-701015 241 (1.00)
10 OPERATING SUPPLIES 2500-710015 229 1.00
10 WORKERS COMPENSATION 4000-701011 621 (1.00)
10 CONTRACTS: CO P-THRU NON PROFIT 4010-740402 246 (1.00) 10 AIRPORT LIABILITY INSURANCE 4200-735003 601 21.00
10 PROFESSIONAL SERVICES 7000-730000 660 1,048.00
10 Operating Supplies 8050-710015 101 690.00
10 Improvements 9000-750050 304 1.00
To agree PY ending fund balance to CY beginning fund balance 11 Claim On Cash 101101 101 4,872,937.00
11 Claim on Cash 101101 256 (4,872,937.00)
11 Accounts Receivable 120001 256 (4,872,937.00)
11 FEDERAL GRANT 1000-430021 256 4,872,937.00
11 SALARIES REGULAR 2205-701001 101 (2,328,902.00)
11 SALARIES REGULAR 2205-701001 256 2,328,902.00
11 SALARIES REGULAR 2500-701001 101 (2,544,035.00)

11 SALARIES REGULAR 2500-701001 256 2,544,035.00
To correct ARPA grant revenue & expenditures
13 VISTA MEADOWS_DBA MIDPEN HOUSING 160026 851 (141,006.00) 13 VISTA MEADOWS_DBA MIDPEN HOUSING 160026 851 (133,075.00) 13 PALM COURT PROJECT 160412 851 (316,576.00)
13 CHISPA-SENIOR SUNRISE APARTMENTS 160519 101 (1,463.00) 13 CHISPA-SENIOR SUNRISE APARTMENTS 160519 851 (2,925.00) 13 DEFERRED REVENUE 275005 101 1,463.00
13 DEFERRED REVENUE 275005 851 141,006.00
13 DEFERRED REVENUE 275005 851 316,576.00
13 DEFERRED REVENUE 275005 851 2,925.00
13 DEFERRED REVENUE 275005 851 133,075.00
To properly adjust loan receivable balance as of year end 14 Claim On Cash 101101 101 (447,807.00)
14 CLAIM ON CASH 101101 241 447,807.00
14 ACCOUNTS RECEIVABLE 120001 212 (51,147.00)
14 ACCOUNTS RECEIVABLE 120001 241 (1,155,495.00)
14 ACCOUNTS RECEIVABLE 120001 246 82,606.00
14 Accounts Receivable 120001 252 (75,230.00)
14 Accounts Receivable 120001 252 115,251.00
14 POOL CASH CLEARING ACCT 250099 999 (447,807.00)
14 POOL CASH CLEARING ACCT 250099 999 447,807.00
14 DEFERRED REVENUE 275005 223 11,845.00
14 Deferred Revenue 275005 241 1,155,495.00
14 DEFERRED REVENUE 275005 252 75,230.00
14 UNEARNED REVENUE 275006 223 10,167.00
14 STATE GRANT 1000-430016 252 (75,230.00)
14 STATE GRANT 1000-430016 252 75,230.00
14 STATE GRANT 1000-430016 252 (115,251.00)
14 FEDERAL GRANT 1000-430021 212 51,147.00
14 FEDERAL GRANT 1000-430021 223 (22,012.00)
14 FEDERAL GRANT 1000-430021 241 (1,155,495.00)
14 FEDERAL GRANT 1000-430021 241 1,155,495.00
14 FEDERAL GRANT 1000-430021 246 (82,606.00)
14 TRANSFERS IN 1000-490999 241 (447,807.00)
14 TRANSFERS OUT 1100-799999 101 447,807.00
To adjust grant receivable, grant revenue, deferred revenue 15 INTEREST PAYABLE 260003 660 9,604.00
15 INTEREST PAYABLE 290030 850 20,642.00
15 INTEREST PAYMENTS 1100-747000 850 (20,642.00)
15 16-WW-INTEREST PAYMENTS 1100-747007 660 (9,604.00)
To accrue interest payable
16 AMT TO BE PROVIDED 140001 950 (25,083,021.00)
16 DEFERRED OUTFLOWS - CONTRIBUTIONS 140100 950 (3,864,235.00) 16 DEFERRED OUTFLOWS - ACTUARY 140101 950 (4,080,630.00) 16 DEFERRED INFLOWS - ACTUARY 260100 950 1,464,910.00
16 NET PENSION LIABILITY 260500 950 31,562,976.00
To reverse JN09201 that recorded beginning balances for GASB 68. This entry was not necessary. 17 AMT TO BE PROVIDED 140001 950 (243,056.00)
17 COMPENSATED ABSENCES 260600 601 63,594.00
17 COMPENSATED ABSENCES 260600 670 (3,672.00)
17 COMPENSATED ABSENCES 260600 620 48,720.00
17 COMPENSATED ABSENCES 260600 660 23,433.00
17 COMPENSATED ABSENCES 260600 950 243,056.00
17 SALARIES REGULAR 1155-701001 660 (2,728.00)

17 SALARIES REGULAR 1157-701001 660 (4,352.00)
17 SALARIES REGULAR 4200-701001 601 (63,594.00)
17 SALARIES REGULAR 4990-701001 660 (2,131.00)
17 SALARIES REGULAR 4995-701001 660 (10,133.00)
17 SALARIES REGULAR 5005-701001 670 579.00
17 SALARIES REGULAR 5005-701001 620 (377.00)
17 SALARIES REGULAR 5005-701001 660 (2,633.00)
17 SALARIES REGULAR 5015-701001 670 3,093.00
17 SALARIES REGULAR 5035-701001 620 (48,343.00)
17 SALARIES REGULAR 7000-701001 660 (1,456.00)
To correct compensated absences as of 06/30/2022
18 ACCOUNTS RECEIVABLE 120001 101 28,500.00
18 Reimbursements 1000-490005 101 (28,500.00)
To accrue reimbursement for unused City employee flexible spending account 19 DUE FROM OTHER GOVERNMENTS 120030 101 44,436.00
19 Property Transfer Tax 1000-401010 101 (44,436.00)
To accrue property transfer tax 06/01/22 - 06/30/22
20 WORK IN PROCESS 190072 901 111,303.00
20 AP POOLED 200000 200 (111,303.00)
20 Accounts Payable 220001 101 (16,500.00)
20 INVESTMENTS IN FIXED ASSETS 300201 901 (111,303.00)
20 PROFESSIONAL SERVICES 4100-730000 101 16,500.00
20 Improvements 9000-750050 200 111,303.00
To correct accounts payable and CIP
21 FUND BALANCE 300101 620 106,344.00
21 Prior Period Adjustment 399999 620 (106,344.00)
JN08114 - To record accrual for SBC WTR District
22 ACCOUNTS RECEIVABLE 120001 246 52,420.00
22 FEDERAL GRANT 1000-430021 246 (52,420.00)
To adjust PY accruals and recognize revenue for Grant17-CDBG-12098 23 REIMBURSABLE: Allendale Trail Extension Project 280033 205 179,000.00 23 Reimbursements 1000-490005 205 (179,000.00)
To reverse JN07650
24 Claim On Cash 101101 101 (6,319,592.00)
24 CLAIM ON CASH 101101 601 474,924.00
24 CLAIM ON CASH 101101 670 2,329,042.00
24 CLAIM ON CASH 101101 660 (3,826,564.00)
24 CLAIM ON CASH 101101 665 3,826,564.00
24 CLAIM ON CASH 101101 200 1,199,075.00
24 CLAIM ON CASH 101101 218 18,556.00
24 CLAIM ON CASH 101101 229 260,614.00
24 CLAIM ON CASH 101101 241 927,382.00
24 CLAIM ON CASH 101101 246 235,132.00
24 Claim on Cash 101101 249 741,715.00
24 Claim on Cash 101101 252 106,304.00

24 CLAIM ON CASH 101101 709 26,848.00
24 DUE FROM OTHER FUNDS 150001 101 6,319,592.00
24 DUE FROM OTHER FUNDS 150001 660 3,826,564.00
24 DUE TO OTHER FUNDS 250001 601 (474,924.00)
24 DUE TO OTHER FUNDS 250001 670 (2,329,042.00)
24 DUE TO OTHER FUNDS 250001 665 (3,826,564.00)
24 DUE TO OTHER FUNDS 250001 200 (1,199,075.00)
24 DUE TO OTHER FUNDS 250001 218 (18,556.00)
24 DUE TO OTHER FUNDS 250001 229 (260,614.00)
24 DUE TO OTHER FUNDS 250001 241 (927,382.00)
24 DUE TO OTHER FUNDS 250001 246 (235,132.00)
24 DUE TO OTHER FUNDS 250001 249 (741,715.00)
24 DUE TO OTHER FUNDS 250001 252 (106,304.00)
24 DUE TO OTHER FUNDS 250001 709 (26,848.00)
To record due to/from as a result of negative cash balances in the funds 25 Claim On Cash 101101 101 (733.00)
25 CLAIM ON CASH 101101 213 733.00
25 CONFERENCES/MEETINGS 4010-722005 101 449.00
25 Operating Supplies 4200-710015 101 284.00
25 OPERATING SUPPLIES 4200-710015 213 (284.00)
25 CONFERENCES/MEETINGS 4200-722005 213 (449.00)
To reclassify transactions posted to closed fund
27 FUEL INVENTORY 180001 101 (3,823.00)
27 FUEL/OIL 1125-710035 101 3,823.00
To properly record inventory as of year end.
29 STATE GRANT 1000-430016 212 (150,000.00)
29 FEDERAL GRANT 1000-430021 212 150,000.00
To reclassify state matching portion of FAA grant
30 Accounts Receivable 120001 252 840.00
30 DEFERRED REVENUE 275005 223 (11,845.00)
30 UNEARNED REVENUE 275006 223 (10,167.00)
30 STATE GRANT 1000-430016 252 (840.00)
30 FEDERAL GRANT 1000-430021 223 22,012.00
To reverse true up unearned revenue, revenue was not received. To reverse recognize deferred revenue from prior years.

To reverse true up unearned rev, revenue was not received. To record AR/revenue for CDBG 2020 grant CY activity. 32 UNEARNED REVENUE 275006 242 142,604.00
32 PRIOR PERIOD ADJUSTMENT 300112 212 (150,000.00)
32 PRIOR PERIOD ADJUSTMENT 300112 242 (142,604.00)
32 STATE GRANT 1000-430016 212 150,000.00
To record prior year adjustments for Fund 212 and 242
33 CLAIM ON CASH 101101 200 (366,468.00)
33 CLAIM ON CASH 101101 206 366,468.00
33 POOL CASH CLEARING ACCT 250099 999 (366,468.00)
33 POOL CASH CLEARING ACCT 250099 999 366,468.00
33 Improvements 9000-750050 200 366,468.00
33 Improvements 9000-750050 206 (366,468.00)
To correct GL account for Road Rehab project 19/20

34 OPERATING SUPPLIES 2205-710015 101 132,778.00
34 IMPROVEMENTS 2205-750050 101 (132,778.00)
To correct Fire Departments operating expense by moving it out of Improvements and into Operating Supplies 38 ACCOUNTS RECEIVABLE 120001 601 30,000.00
38 ACCOUNTS RECEIVABLE 120001 601 13,000.00
38 Accounts Receivable 120001 254 (30,000.00)
38 Accounts Receivable 120001 254 (13,000.00)
38 Federal Grant 1000-430021 601 (30,000.00)
38 Federal Grant 1000-430021 601 (13,000.00)
38 Federal Grant 1000-430021 254 30,000.00
38 Federal Grant 1000-430021 254 13,000.00
To correct accrual CARES Airport to correct fund
39 REIMBURSEMENTS 1000-490005 665 (562,415.00)
39 GAS/ELECTRIC 4991-725001 665 562,415.00
To correct deposit utilities reimbursable SBF Fund 665
40 CLAIM ON CASH 101101 601 15,000.00
40 CLAIM ON CASH 101101 212 (15,000.00)
40 POOL CASH CLEARING ACCT 250099 999 (15,000.00)
40 POOL CASH CLEARING ACCT 250099 999 15,000.00
40 PROFESSIONAL SERVICES 4200-730000 601 (15,000.00)
40 IMPROVEMENTS 4200-750050 212 15,000.00
To record improvements in Fund 212
41 CLAIM ON CASH 101101 601 10,000.00
41 CLAIM ON CASH 101101 212 (10,000.00)
41 POOL CASH CLEARING ACCT 250099 999 10,000.00
41 POOL CASH CLEARING ACCT 250099 999 (10,000.00)
41 STATE GRANT 1000-430016 601 (10,000.00)
41 STATE GRANT 1000-430016 212 10,000.00
To correct GL account state grant
42 DEFERRED REVENUE 275005 252 (116,091.00)
42 UNEARNED REVENUE 275006 246 (209,620.00)
42 STATE GRANT 1000-430016 252 116,091.00
42 FEDERAL GRANT 1000-430021 246 209,620.00
To reclass unavailable revenue for long outstanding accounts receivable 43 INFRASTRUCTURE 190040 901 4,838,707.00
43 IMPROVEMENTS 190050 660 457,606.00
43 IMPROVEMENTS 190050 901 1,019,323.00
43 LAND IMPROVEMENTS 190051 601 94,377.00
43 EQUIPMENT 190070 601 33,076.00
43 EQUIPMENT 190070 620 55,975.00
43 EQUIPMENT 190070 660 146,361.00
43 EQUIPMENT 190070 901 398,394.00
43 WORK IN PROCESS 190072 680 18,233.00
43 WORK IN PROCESS 190072 620 172,987.00
43 WORK IN PROCESS 190072 660 99,097.00
43 WORK IN PROCESS 190072 901 2,294,871.00
43 ALLOWANCE FOR DEPRECIATION 195000 601 (1,155,301.00) 43 ALLOWANCE FOR DEPRECIATION 195000 680 (119,599.00)

43 ALLOWANCE FOR DEPRECIATION 195000 620 (225,602.00)
43 ALLOWANCE FOR DEPRECIATION 195000 660 (3,876,666.00) 43 ALLOWANCE FOR DEPRECIATION 195000 901 (3,665,664.00) 43 INVESTMENTS IN FIXED ASSETS 300201 901 (4,885,631.00) 43 CAPITAL CONTRIBUTIONS 1000-490350 601 (94,377.00)
43 DEPRECIATION PER GASB 34 1100-764000 601 1,155,301.00 43 DEPRECIATION PER GASB 34 1100-764000 680 119,599.00
43 DEPRECIATION PER GASB 34 1100-764000 620 225,602.00
43 DEPRECIATION PER GASB 34 1100-764000 660 3,876,666.00 43 MACHINERY/EQUIPMENT 1157-750070 601 (33,076.00)
43 MACHINERY/EQUIPMENT 1157-750070 620 (55,975.00)
43 MACHINERY/EQUIPMENT 1157-750070 660 (55,976.00)
43 ENGINEERING SERVICES 4000-730003 620 (16,410.00)
43 MACHINERY/EQUIPMENT 4995-750070 660 (90,385.00)
43 Improvements 9000-750050 680 (18,233.00)
43 Improvements 9000-750050 620 (156,577.00)
43 Improvements 9000-750050 660 (457,606.00)
43 Improvements 9000-750050 660 (99,097.00)
To book Capital Assets for FY 2022
44 Claim on Cash 101101 620 (156,577.00)
44 CLAIM ON CASH 101101 621 156,577.00
44 ENGINEERING SERVICES 4000-730003 620 11,285.00
44 ENGINEERING SERVICES 4000-730003 620 14,867.00
44 ENGINEERING SERVICES 4000-730003 620 107,894.00
44 ENGINEERING SERVICES 4000-730003 620 8,837.00
44 ENGINEERING SERVICES 4000-730003 620 13,694.00
44 ENGINEERING SERVICES 4000-730003 621 (11,285.00)
44 ENGINEERING SERVICES 4000-730003 621 (14,867.00)
44 ENGINEERING SERVICES 4000-730003 621 (107,894.00)
44 ENGINEERING SERVICES 4000-730003 621 (8,837.00)
44 ENGINEERING SERVICES 4000-730003 621 (13,694.00)
To reconcile capital assets in Fund 620
45 CLAIM ON CASH 101101 660 (75,326.00)
45 CLAIM ON CASH 101101 662 75,326.00
45 Improvements 9000-750050 660 29,775.00
45 Improvements 9000-750050 660 45,551.00
45 Improvements 9000-750050 662 (29,775.00)
45 Improvements 9000-750050 662 (45,551.00)
To reconcile capital assets in Fund 660
46 Claim On Cash 101101 101 447,807.00
46 CLAIM ON CASH 101101 241 (447,807.00)
46 POOL CASH CLEARING ACCT 250099 999 447,807.00
46 POOL CASH CLEARING ACCT 250099 999 (447,807.00)
46 TRANSFERS IN 1000-490999 241 447,807.00
46 TRANSFERS OUT 1100-799999 101 (447,807.00)
To record grants adjustment to Funds 101 and 241
47 Interest Receivable - GASB 87 120013 101 1,013.00
47 Lease Receivable - Current Portion GASB 87 120014 101 24,269.00 47 Security Deposit 150120 101 4,540.00
47 Lease Receivable - Long Term 190006 101 648,622.00
47 Deferred Inflows - GASB 87 260103 101 (3,573,076.00) 47 Unearned Revenue 275006 101 1,263,360.00

47 Interest Income - Leases GASB 87 1000-450003 101 (58,861.00) 47 PG&E (BROWN ALLEY) LEASE PMTS 1000-450006 101 241.00 47 Initial Lease Revenue - GASB 87 1000-450090 101 (366,516.00) 47 Initial Lease Revenue - GASB 87 1000-450090 101 135,639.00 47 ANTENNA SITE RENT 1000-450105 101 1,634,884.00
47 PROCEEDS FROM THE ISSUANCE OF DEBT 1000-470004 101 (135,639.00) 47 Loss on Termination 1000-764004 101 64,866.00
47 Interest Income - Leases GASB 87 1100-450003 101 (11,892.00) 47 Rental Income 1100-450201 101 6,574.00
47 RENTALS/LEASES 1160-710045 101 (2,750.00)
47 Interest Expenses - GASB 87 1160-747008 101 450.00
47 Lease Expense - GASB 87 - Capital Outlay 1160-750100 101 135,639.00 47 Contracts: SJB Lease Agreement 2205-740035 101 (968.00) 47 Interest Expenses - GASB 87 2205-747008 101 968.00
47 Lease Expense - GASB 87 - Capital Outlay 2205-750100 101 174,088.00 47 RENTALS/LEASES 4010-710045 101 (2,333.00)
47 Interest Expenses - GASB 87 4010-747008 101 93.00
47 Lease Expense - GASB 87 - Capital Outlay 4010-750100 101 56,789.00 To record GASB 87 Adjustment Fund 101
48 Security Deposit 150120 851 560.00
48 Initial Lease Revenue - GASB 87 1000-450090 851 (14,197.00) 48 Rentals/Leases 1000-710045 851 (7,674.00)
48 Rentals/Leases 1000-710045 851 7,091.00
48 Interest Expenses - GASB 87 1000-747008 851 23.00
48 Lease Expense - GASB 87 - Capital Outlay 1000-750100 851 14,197.00 To record GASB 87 Adjustment Fund 851
49 Lease Asset - Right of Use - GASB 87 190100 902 380,713.00 49 Accumulated Amortization Lease Asset GASB 87 195003 902 (90,317.00) 49 Interest Payable - GASB 87 260005 902 (109.00)
49 Lease Liability - Current Portion GASB 87 260104 902 (102,408.00) 49 Lease Liability - Long Term GASB 87 260660 902 (190,965.00) 49 Initial Lease Revenue - GASB 87 1000-450090 902 380,713.00 49 Rentals/Leases 1000-710045 902 (7,091.00)
49 Interest Expenses - Leases GASB 87 1000-747008 902 1.00 49 Lease Expense - GASB 87 - Capital Outlay 1000-750100 902 (14,197.00) 49 Amortization Expense - Right of Use Asset - GASB 8 1000-764003 902 7,099.00 49 Rentals/Leases 1160-710045 902 (15,650.00)
49 Interest Expenses - Leases GASB 87 1160-747008 902 70.00 49 Lease Expense - GASB 87 - Capital Outlay 1160-750100 902 (135,639.00) 49 Amortization Expense - Right of Use Asset - GASB 8 1160-764003 902 15,825.00 49 Rentals/Leases 2205-740035 902 (36,232.00)
49 Interest Expenses - Leases GASB 87 2205-747008 902 31.00 49 Lease Expense - GASB 87 - Capital Outlay 2205-750100 902 (174,088.00) 49 Amortization Expense - Right of Use Asset - GASB 8 2205-764003 902 38,999.00 49 Rentals/Leases 4010-710045 902 (28,366.00)
49 Interest Expenses - Leases GASB 87 4010-747008 902 6.00 49 Lease Expense - GASB 87 - Capital Outlay 4010-750100 902 (56,789.00) 49 Amortization Expense - Right of Use Asset - GASB 8 4010-764003 902 28,394.00 To record GASB 87 Adjustment Fund 902
50 Interest Receivable - GASB 87 120013 601 5,768.00
50 Lease Receivable - Current Portion GASB 87 120014 601 586,854.00 50 Lease Receivable - Long Term 190006 601 4,478,689.00 50 Deferred Inflows - GASB 87 260103 601 (5,012,677.00) 50 DEPOSITS_HANGAR/BUILDING 270006 601 (7,892.00)
50 Interest Income - Leases GASB 87 1000-450003 601 (71,120.00) 50 GROUND LEASE 1000-450104 601 7,567.00
50 AIRPORT HANGARS 1000-450200 601 2,962.00
50 BUILDING RENTS 1000-450201 601 9,849.00
To record GASB 87 Adjustment Fund 601

51 Interest Receivable - GASB 87 120013 680 746.00
51 Lease Receivable - Current Portion GASB 87 120014 680 123,654.00 51 Lease Receivable - Long Term 190006 680 294,156.00
51 Deferred Inflows - GASB 87 260103 680 (403,389.00)
51 Interest Income - Leases GASB 87 1000-450003 680 (10,108.00) 51 BRIGGS BLDG RENTAL REVENUE 1000-450111 680 (5,059.00) To record GASB 87 Adjustment Fund 680
52 PRINCIPAL PAYMENTS 1000-748000 851 7,091.00
52 RENTALS/LEASES 1100-710045 851 (7,091.00)
52 PRINCIPAL PAYMENTS 1100-748000 101 44,016.00
52 PRINCIPAL PAYMENTS 1100-748000 101 (2,537.00)
52 RENTALS/LEASES 1160-710045 101 (15,650.00)
52 RENTALS/LEASES 1160-710045 101 2,537.00
52 Contracts: SJB Lease Agreement 2205-740035 101 (36,232.00) 52 PRINCIPAL PAYMENTS 2205-748000 101 36,232.00
52 RENTALS/LEASES 4010-710045 101 (28,366.00)
To reclassify debt payments
53 400 BLOCK PROPERTY OF SAN BENITO_LAND HELD 120024 101 (494,266.00) 53 SALE OF PROPERTY 1000-490055 101 494,266.00
To record land sale
54 WATER RIGHTS ASSET 190300 620 12,000,000.00
54 WATER RIGHTS ASSET 190300 620 1,700,000.00
54 ACCUMULATED AMORTIZATION 195010 620 (3,615,295.00)
54 ACCUMULATED AMORTIZATION 195010 620 (558,336.00)
54 ACCUMULATED AMORTIZATION 195010 620 (519,444.00)
54 ACCUMULATED AMORTIZATION 195010 620 (113,333.00)
54 HOLLISTER URBAN AREA PROJECT AGREEMENT 290816 620 (12,000,000.00) 54 HOLLISTER URBAN AREA PROJECT AGREEMENT 290816 620 2,558,016.00 54 HOLLISTER URBAN AREA PROJECT AGREEMENT 290816 620 463,915.00 54 PRIOR PERIOD ADJUSTMENT 399999 620 1,057,279.00
54 PRIOR PERIOD ADJUSTMENT 399999 620 (1,180,556.00)
54 CONTRACTS: URBAN JPA 5035-740207 620 (463,915.00)
54 CONTRACTS: URBAN JPA 5035-740207 620 (378,048.00)
54 INTEREST PAYMENTS 5035-747000 620 378,048.00
54 AMORTIZATION EXPENSE 5035-764005 620 558,336.00
54 AMORTIZATION EXPENSE 5035-764005 620 113,333.00
To record water rights and contract payable to SBCWD

CITY OF HOLLISTER

APPROPRIATIONS LIMIT CALCULATION
AS OF JUNE 30, 2022
MUN CPAs, LLP
1760 CREEKSIDE OAKS DRIVE, SUITE 160
SACRAMENTO, CA 95833

INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the City Council of
the City of Hollister
Hollister, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Calculation of the City of Hollister (the City) for the year ended June 30, 2022. The City's management is responsible for the Appropriations Limit Calculation.

The City of Hollister, has agreed to and acknowledge that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution.

Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for its purpose. The report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and findings are as follows:

1.We obtained the completed internal calculations and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by a resolution of the City Council. We compared the population and inflation options included in the aforementioned calculations to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2.For the Appropriations Limit Calculation, we added June 30, 2021’s appropriations limit to the annual permitted adjustments and agreed the resulting amount to the June 30, 2022 appropriations limit.

Finding: No exceptions were noted as a result of our procedures.

3.We compared current year information presented in the appropriations limit calculation to supporting worksheets.

Finding: No exceptions were noted as a result of our procedures.

4.We compared the June 30, 2021 appropriations limit presented in the appropriations limit calculation to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI

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

No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIIIB of the California Constitution.

This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

Sacramento, California
December 10, 2025

MUN CPASLIP

CITY OF HOLLISTER

APPROPRIATIONS LIMIT CALCULATION
JUNE 30, 2022
Amount Source
A. Prior year's appropriations limit (at June 30, 2021)$21,113,591 B. Adjustment factors for the current fiscal year:

1. Population change 1.0166 * State Finance

2. Inflation (per capita personal income change)1.0573 * State Finance Total adjustment 1.0749 * B1 x B2
C. Annual adjustment 1,580,377 A x (B -1)
D. Other Adjustments
Lost responsibility (-)-
Transfer to fees (-)-
Assumed responsibility (+)-
-
E. Total adjustments 1,580,377 C + D
F. Current year's appropriations limit (at June 30, 2022)$22,693,968 A + E * Rounded to the nearest ten thousandth

MANAGEMENT LETTER

To the City Council
of the City of Hollister

In planning and performing our audit of the financial statements of the City of Hollister (the City) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

However, during our audit we became aware of deficiencies in internal control other than significant deficiencies and material weaknesses and matters that are opportunities for strengthening internal controls and operating efficiency.

The memorandum that accompanies this letter summarizes our comments and suggestions regarding those matters.

A separate letter dated December 10, 2025, contains our communication of significant deficiencies or material weaknesses in the City’s internal control. This letter does not affect our report dated December 10, 2025, on the financial statements of the City.

We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various City personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

This communication is intended solely for the information and use of management, City Council, and others within the City, and is not intended to be, and should not be, used by anyone other than those specified parties.

MUN CPAs, LLP
Sacramento, California
December 10, 2025
U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI
MUN CPAs LLP

Attachment A

City of Hollister
Summary of Current Year Findings and Recommendations
June 30, 2022

Information Technology (Repeat Finding)
Existing written policies and procedures do not include policies and objectives concerning the role of user passwords and changes in computer authorizations in securing information and promoting proper segregation of duties. We recommend that written procedures be developed concerning the assignment, modification, and deletion of user passwords, as well as procedures for changes in employee status (terminations, department changes, etc.).

Passwords should be changed at least once every six months. Written policies will help to ensure that password assignments, deletions, and employee modifications are performed in a manner consistent with management’s intentions.

Cost Allocation Plan (Repeat Finding)
The City does not have a current cost allocation plan. In current and prior years, an overhead amount has been charged to the, utility, and airport funds; however, there is no basis for this amount. We recommend the City perform and obtain a cost allocation plan to allocate overhead expenditures to different departments to ensure that expenses being charged are an accurate reflection of current activity.

Other Post-Employment Benefits Census Data (Repeat Finding) There are no formal procedures in place to review the accuracy of cen sus data provided to actuaries. We recommend the City implement processes and controls to ensure that complete and accurate information is reported to the plan actuary. In evaluating the census data file, the employer may compare the information to underlying payroll records and the prior year census data file.

Procurement Support (Repeat Finding)
When performing testing over the City’s procurement policy, we noted that departments maintain different forms for keeping track of bids and not all departments keep records of the bids that were received. We recommend that the City maintain a uniform and consistent method of tracking bidding documentation to improve organization and support for all bids received for projects as required by the City’s procurement policy.

Activity in Closed Funds (Repeat Finding)
In our review of the City’s special revenue funds we noted one fund closed in a prior year, with activity erroneously posted to the fund in the City’s general ledger system. We recommend logical controls be implemented to prevent journal entries from being posted to closed funds and that all manual journal entries be reviewed for correct general ledger coding.

Payroll Internal Controls
The City’s internal control process over payroll includes review and approval of the final payroll registers and related reports by the Director of Administrative Services. We noted this control was not consistently operating throughout the fiscal year. We recommend the City enforce current policy to ensure final payroll reports are reviewed and signed as approved. In the event of staffing turnover, the City should have documented procedures and compensating controls to ensure review is being conducted by an appropriate individual.

Pension Contributions
The pension contributions used in the calculation of the net pension liability and related deferred outflows and inflows did not reconcile to the general ledger or the confirmation of payments received by CalPERS. We recommend the City ensure that CalPERS contributions used in the calculation of the net pension liability reflect the actual amount paid to CalPERS for the fiscal year.

Attachment B

City of Hollister
Summary of Prior Year Findings and Recommendations

Information Technology (Repeat Finding)
Existing written policies and procedures do not include policies and objectives concerning the role of user passwords and changes in computer authorizations in securing information and promoting proper segregation of duties. We recommend that written procedures be developed concerning the assignment, modification, and deletion of user passwords, as well as procedures for changes in employee status (terminations, department changes, etc.).

Passwords should be changed at least once every six months. Written policies will help to ensure that password assignments, deletions, and employee modifications are performed in a manner consistent with management’s intentions.

Status: Not implemented.

Cost Allocation Plan (Repeat Finding)
The City does not have a current cost allocation plan. In current and prior years, an overhead amount has been charged to the utility, and airport funds; however, there is no basis for this amount. We recommend the City perform and obtain a cost allocation plan to allocate overhead expenditures to different departments to ensure that expenses being charged are an accurate reflection of current activity.

Status: Not implemented.

Other Post-Employment Benefits Census Data (Repeat Finding) There are no formal procedures in place to review the accuracy of census data provided to actuaries. We recommend the City implement processes and controls to ensure that complete and accurate information is reported to the plan actuary. In evaluating the census data file, the employer may compare the information to underlying payroll records and the prior year census data file.

Status: Not implemented.

Procurement Support (Repeat Finding)
When performing testing over the City’s procurement policy, we noted that departments maintain different forms for keeping track of bids and not all departments keep records of the bids that were received. We recommend that the City maintain a uniform and consistent method of tracking bidding documentation to improve organization and support for all bids received for projects as required by the City’s procurement policy.

Status: Not implemented.

Payroll Liabilities (Repeat Finding)
The City’s total accrued payroll and benefits incurred but not yet paid as of year -end from the City’s payroll system did not agree to the City’s payroll liability accrual. The difference was the result of old balances manually inputted that have been in the system for a period in excess of at least 3 years. We recommend the City clear out old balances from the system and reconcile accrual to records from payroll system.

Status: Implemented.

Activity in Closed Fund
In our review of the City’s special revenue funds we noted two funds, closed in a prior year, with activity erroneously posted to the fund in the City’s general ledger system. We recommend logical controls be implemented to prevent journal entries from being posted to closed funds and that all manual journal entries be reviewed for correct general ledger coding.

Status: Not implemented.

____________________________________________________________________________________________

CITY OF HOLLISTER

SINGLE AUDIT AND RELATED REPORTS

FOR THE YEAR ENDED
JUNE 30, 2022
____________________________________________________________________________________________ MUN CPAs, LLP
1760 Creekside Oaks Drive, Suite 160
Sacramento, California 95833

CITY OF HOLLISTER

SINGLE AUDIT AND RELATED REPORTS
FOR THE YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2
Independent Auditor's Report on Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 3 - 5 Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 - 17
Schedule of Prior Year Findings 18 - 20

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council of
the City of Hollister
Hollister, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hollister, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Hollister’s basic financial statements, and have issued our report thereon dated December 10, 2025.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.

We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001 through 2022-006 that we consider to be material weaknesses.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Hollister’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Hollister ’s Responses to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Hollister’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. City of Hollister’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI

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

Sacramento, California
December 10, 2025
MUN CPAs LLP

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the City Council of
the City of Hollister
Hollister, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Hollister’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City of Hollister’s major federal programs for the year ended June 30, 2022. City of Hollister’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, City of Hollister complied, in all material respects with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City of Hollister and to meet our ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of City of Hollister's compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statues, regulations, rules, and provisions of contracts or grant agreements applicable to the City of Hollister's federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Hollister's compliance based on our audit. 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 general accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City of Hollister's compliance with the requirements of each major federal program as a whole.

U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risk of material noncompliance, 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 City of Hollister's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City of Hollister's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City of Hollister's internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2022-007 - 2022-008. Our opinion on each major federal program is not modified with respect to these matters.

Government Auditing Standards requires the auditor to perform limited procedures on the City of Hollister's response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. City of Hollister's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified.

However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses's and significant deficiencies.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2022-006 to be a significant deficiency.

Our audit was designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City of Hollister's response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. City of Hollister’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hollister, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Hollister’s basic financial statements. We issued our report thereon dated December 10, 2025, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

Sacramento, California
December 10, 2025

CITY OF HOLLISTER

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
Federal Grantor/Pass-Through Grantor Program
Federal
Assistance
Listing (AL)
Pass-Through Entity
Identifying
Number/Grant Number
Federal
Expenditures
U.S Department of Treasury
Direct Programs:

COVID-19 - Coronavirus State and Local Fiscal
Recovery Funds 21.027 $4,872,937
Total U.S. Department of Treasury 4,872,937
U.S. Department of Housing and Urban Development
Pass-Through State of California Department of
Housing and Community Development
Community Development Block Grants 14.228 17-CDBG-12098 $173,014 Community Development Block Grants 14.228 20-CDBG-12015-2021 144,698 Total Community Development Block Grants 317,712
HOME Investment Partnership Program 14.239 Outstanding Loans 2,285,574 HOME Investment Partnership Program 14.239 Program Income 150,444 Total HOME Investment Partnership Program 2,436,018
Total U.S. Department of Housing and Urban Development 2,753,730 U.S. Department of Justice
Direct Programs:

Bulletproof Vest Partnership Program 16.607 7,155
Total U.S. Department of Justice 7,155
U.S. Department of Transportation
Pass-Through State of California Office of Traffic Safety:

Alcohol Impaired Driving Countermeasures Inventive
Grants 20.601 PT21027 22,600
Alcohol Impaired Driving Countermeasures Inventive
Grants 20.601 PT22152 2,269
Total Alcohol Impaired Driving Countermeasures
Inventive Grants 24,869
Direct Programs:

Airport Improvement Program 20.106 3-06-0105-21 77,405
COVID-19 Airport Improvement Program 20.106 3-016-0105-022-2020 43,000 Total Airport Improvement Program 120,405
Total U.S. Department of Transportation 145,274
U.S. Department of Homeland Security
Direct Programs:

Staffing for Adequate Fire and Emergency Response 97.083 241,127 Pass-Through State of California Office of Emergency
Safety:

Emergency Management Performance Grants 97.042 18,520
Total U.S. Department of Homeland Security 259,647
Total Expenditures of Federal Awards $8,038,743
6

CITY OF HOLLISTER

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022
NOTE 1: REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Hollister. The City of Hollister reporting entity is defined in Note 1 of the City's Annual Comprehensive Financial Report. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule. When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity.

NOTE 2: BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on accounting principles generally accepted in the United States of America. The information in this schedule is presented on the accrual basis of accounting and in accordance with requirements of Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

NOTE 3: RELATIONSHIP TO FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the City's basic financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues in the governmental funds.

NOTE 4: CLAIMS
The City of Hollister has received federal grants for specific purposes that are subject to review and audit by the Federal Government pass-through entity. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material which have not already been recorded.

NOTE 5: LOANS OUTSTANDING
The program listed below had the following aggregate federally funded loans outstanding at June 30, 2022:

AL Number Program Title
Amount
Outstanding

14.239 HOME Investment Partnership Program $2,140,537
NOTE 6: INDIRECT COSTS
The City elected not to use the 10% de minimus indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2022.
7

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022

SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:Unmodified
Internal control over financial reporting:

Material weakness(es) identified?Yes
Significant deficiency(ies) identified None noted
Noncompliance material to financial statements noted?No Federal Awards
Internal control over major programs:

Material weakness(es) identified?No
Significant deficiency(ies) identified?Yes
Type of auditor's report issued on compliance for major programs:Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516 of the Uniform Guidance Yes
Identification of Major Programs:

U.S. Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds, AL 21.027
U.S. Department of Housing and Urban Development, Home Investment Partnerships Program, AL 14.239
Dollar threshold used to distinguish between type A and type B programs:$750,000 Auditee qualified as low-risk auditee?No
8

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
SECTION II: FINANCIAL STATEMENT FINDINGS
Findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards
Finding 2022-001: Financial Close (Material Weakness - Repeat Finding) Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

Condition
During the performance of the audit, we noted that processes utilized for closing and financial reporting of financial activity for the fiscal year were not effective. Approximately 50 journal entries were proposed and posted subsequent to providing the trial balance for audit. Specific financial statement areas that required adjustment included:
Cash - See material weakness 2022-004.
Accounts receivable - Several correcting entries were proposed to true-up the receivable balance. During our testing of subsequent receipts, noted three out of thirty-five items were not properly accrued. Notes receivable - See material weakness 2022-003.
Capital assets - See material weakness 2022-005.
Leases - Due to implementation of GASB 87 in the current year, the City had not fully analyzed all of their lease agreements in a timely manner which resulted in subsequent corrections and journal entries. Accounts payable - Two out of fifty items selected for testing totaling approximately $128,000 were not properly accrued. One of the items related to capital assets in which the related asset was not recorded. Compensated absences - Clerical errors were discovered in the schedule provided by the City. In addition, the journal entries to record the balances between governmental activities and business-type activities was incorrect.
Long-term debt - The City did not record proceeds related to a financed purchase agreement. Interest payable was incorrectly calculated and recorded. In addition, a contract payable from a prior year was not recorded. Grant receivables and revenue - See material weakness at 2022-002. Various incorrect postings - There were several reclassifying adjustments proposed to correctly classify activity in funds. In addition, noted a reimbursement transaction was double posted.

In addition, we noted several funds that had negative cash balances and/or negative fund deficits that have been recurring over several years. The result of our inquiries and analysis resulted in several audit adjustments to close out funds, correct revenue and expense balances, receivables, and transfers.

Cause
Due to significant staff turnover, the City did not have adequate controls in place to ensure accounting records were closed accurately and timely.
9

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments.

Recommendation
We recommend the City revisit their closing procedures to ensure that proper accruals, cut-off, classification, and long-term items are being recorded properly. Supporting schedules should agree and reconcile to respective account balances prior to the trial balance being provided for the audit. The City should develop checklists or other guidance documents over the City's closing process to ensure all closing entries are captured.

Views of Responsible Officials
The City agrees with the finding. The City has strengthened its year-end closing procedures and continues to refine reconciliation processes to improve the accuracy of financial reporting. The City has increased staffing capacity within the Finance Division and is providing additional training to staff involved in the closing process. The City is also working with a consultant to assist in the review of prior-year balances, improve workflow, and establish more efficient closing practices. These improvements will continue as the City works toward completing outstanding audits and establishing timely year-end close cycles.
10

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-002: Grants (Material Weakness - Repeat Finding) Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

Condition
The City's grant revenues, expenditures, unavailable revenues, and receivables are not being properly reconciled for financial reporting purposes at year-end. In some instances, grant expenditures and related revenue were recorded in incorrect funds and in incorrect amounts, receivables for reimbursement grants were not recorded, and the modified accrual basis of accounting was not being followed for grants recorded in governmental funds.

In addition, the City is not timely submitting claims for reimbursement of eligible expenditures to the relevant Agency resulting in unavailable revenues in the period of expenditure causing the City's general fund to up-front the cash payments.

Cause
The City enacted a Grants Administration Policy in 2016 however the policy is not being followed. In addition, significant staff turnover has lead to inconsistencies in how transactions are recorded. It also appears there is not enough formalized communication between department heads who manage their own grants and the Administrative Services Department who is responsible for reconciling all activity.

Effect
There were numerous journal entries required to properly match grant revenues, expenditures, and receivables.

Consequently, the improper recording of grants affects the reporting of federal expenditures on the schedule of expenditures of federal awards.

Recommendation
We recommend the City review and enhance its Grants Administration Policy. With assistance from department heads/grant managers, summarized grant information and program information should be provided to the Administrative Services Department such as:
Copies of grant agreements and budgets
Copies of material expenditures with proper approval of coding and application Copies of reimbursement requests
Monitoring of grant cash flow
The Administrative Services Department should then be able to prepare a reconciliation of grant revenues and expenditures, and record receivables as needed. Claims for reimbursement should be submitted on a timely basis, within the fiscal year in which the expenditures were incurred.

Views of Responsible Officials
The City agrees with the finding. The City is updating and re-implementing its 2016 Grants Administration Policy to strengthen compliance with grant accounting and reporting requirements. The City has developed a standardized grant packet checklist that departments must complete, including agreements, budgets, and resolutions. As of May 2025, the City has hired a full-time accountant whose primary responsibility is to reconcile and track grant revenues and expenditures, monitor receivables, assist departments with reimbursement claims, and ensure compliance with grant terms. These improvements will support accurate grant activity reporting and timely submission of reimbursement claims.
11

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-003: Notes Receivable (Material Weakness - Repeat Finding) Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

Condition
Upon our review of the City's notes receivables, we noted the following:
The City is inconsistent in the recording of accrued interest on notes receivable. The allowance for uncollectible loans has not been reviewed or evaluated. The City has not performed a detailed review of their loans, noting that some loans on the books have terms which have expired.
These deficiencies have been recurring each year and recommendations have not been implemented.

Cause
The City does not appear to have proper controls surrounding the recording and monitoring of notes receivables.

Effect
Several journal entries were proposed to reconcile the notes receivable balance including true-up of balances related to revised amortization schedules, recording of accrued interest, and recording of deferred inflows of resources.

Recommendation
The City should enhance its oversight over notes receivable. Increased oversight is necessary to ensure that all activity is properly and timely recorded. The Administrative Services Department should work closely with the Development Services Department to develop procedures to ensure that all loan activity is captured in the general ledger. In addition, we recommend the City reconcile and review their listing of loans, specifically loans generated over five years ago, to determine that all loans are current, have proper documentation, and are still owed to the City (i.e. no change in ownership or foreclosure of the related property). A master loan listing should be maintained and monitored. We also recommend management update their analysis of uncollectible accounts on an annual basis after reviewing the analysis of loans and making appropriate collection efforts to ensure that the estimated loss from uncollectible loan receivables is reflected on the balance sheet.

Views of Responsible Officials
The City agrees with the finding. The City is creating a consolidated master loan listing that includes amortization schedules, accrued interest, loan status, and supporting documentation. The City will review outstanding loans, particularly older loans, to identify expired terms, foreclosures, and needed adjustments. Annual procedures will be established for interest accrual, allowance evaluation, and communication between Development Services and Finance. A consultant is assisting the City with all aspects of this corrective action, including reviewing historical loan records and implementing improved internal controls.
12

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-004: Cash and Bank Reconciliations (Material Weakness - Repeat Finding) Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

Condition
There was a failure to accurately and timely perform monthly bank reconciliations for the June 30, 2022 fiscal year. Bank reconciliations were delayed approximately 7-10 months from each month-end and were ultimately completed in October 2023.
The City had various funds with negative cash balances indicating that other funds' had paid for expenditures. See finding 2022-002.
There were approximately 154 checks outstanding greater than one year totaling approximately $60,000.

Cause
Due to personnel turnover, the overall process for cash and investment reconciliations was not being completed properly. Bank reconciliations were not being prepared or reviewed timely.

Effect
Untimely preparation and review of bank reconciliations increases the risk that errors could go undetected. Cash and investment balances as presented were not reflective of their true balances.

Recommendation
We recommend the City review their cash and investment reconciliation procedures to ensure timely and accurate completion. Cash and investment reconciliations review should include tests of mechanical accuracy and tracing of items on the reconciliation to relevant source documents. Outstanding checks should be investigated and written off or voided and reissued.

Views of Responsible Officials
The City agrees with the finding. The City has implemented revised bank reconciliation procedures to ensure timely and accurate completion of monthly reconciliations. As of September 2024, the City has hired a full-time Accountant whose primary responsibility is to complete bank and investment reconciliations monthly and ensure they are reviewed within 30 days of month-end. The City will continue researching long-outstanding checks and correcting negative cash balances through improved grant claiming, timely interfund transfers, and resolution of prior-year errors.
13

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-005: Capital Assets (Material Weakness)
Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements
Condition
The City's capital asset are not being properly reconciled for financial reporting purposes at year-end. In some instances, capital outlay expenditures were recorded in incorrect funds and in incorrect amounts, capital assets were not recorded and/or included in the capital asset schedule, and consequently depreciation expense was not properly calculated.

Cause
Due to significant staff turnover, the City did not have adequate controls in place to ensure accounting records related to capital assets were adequately reconciled.

Effect
The capital asset balances, accumulated depreciation, and related capital outlay and depreciation expense accounts as presented originally presented required several material adjustments to correct. Several versions of the capital asset schedule were presented for audit.

Recommendation
Included as part of their year-end close process, the City should establish adequate controls to ensure that all capital outlay projects are capitalized in accordance with the City's capitalization policy. Capital outlay accounts should be reconciled to total capital asset additions and depreciation expense recorded. Due to the numerous errors noted and the time spent in reconciling schedules, the City may want to consider a quarterly reconciliation process as opposed to an annual one so that discrepancies can more easily be researched and resolved.

Views of Responsible Officials
The City agrees with the finding. The City is revising its capital asset tracking procedures to ensure proper capitalization, reconciliation of capital project expenditures, and accurate depreciation reporting. The City has assigned a full-time Accountant to support the reconciliation and maintenance of capital asset schedules. Quarterly reviews will be implemented to ensure timely updates and to reduce year-end backlog. 14

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
SECTION III: FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Findings and questioned costs for Federal Awards, which includes audit findings as defined in section 200.516 of the Uniform Guidance.

Finding 2022-006: Schedule of Expenditures of Federal Awards (Significant Deficiency - Repeat Finding) Criteria
2 CFR Section 200.510 requires that auditees must prepare a schedule of expenditures of federal awards in accordance with Section 2 CFR Section 200.502.
2 CFR Section 200.303 requires an auditee to establish effective internal controls over Federal awards that provide reasonable assurance that an entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards, including but not limited to internal controls over the accuracy and completeness of the expenditure amounts reported in the schedule of expenditures of federal awards.

Condition
The initial schedule of expenditures of federal awards provided to the auditors contained numerous errors.

Cause
As described in finding 2022-002, the City was not properly reconciling grant receivables, revenues, and expenditures. In addition, amounts initially reported on the schedule of expenditures of federal awards were derived from general ledger details which do not necessarily equate to allowable costs to be claimed and reported on the schedule of expenditures of federal awards.

Effect
There were numerous journal entries and adjustments made to ensure amounts reported on the schedule of expenditures of federal awards were accurate.

Recommendation
See recommendations for finding 2022-002. In addition, the City should establish proper internal controls to ensure that amounts claimed per each Federal award are complete and accurate.

Views of Responsible Officials
The City agrees with the finding. The City will strengthen internal controls over SEFA preparation by implementing the improvements described in the corrective action for Finding 2022-002. The full-time Accountant responsible for grant reconciliation will coordinate year-end SEFA preparation with departments and Finance staff to ensure expenditures reconcile to the general ledger and represent allowable federal costs. Updated policies will reflect these strengthened processes and centralized oversight.
15

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-007: HOME Loan Compliance Monitoring (Uniform Guidance Compliance) Criteria
2 CFR Part 200, Appendix XI Compliance Supplement for HOME Investment Partnerships Program, Special Tests and Provisions, Housing Quality Standards, requires on-site inspections and/or verification of information submitted by the homeowners. In addition, the City's Homebuyer Assistance Program Guidelines along with the loan agreements specify conditions of default with the loan provisions which should be monitored on a regular basis.

Condition
For two out of five HOME loans selected for testing, the City did not have completed information for the certificate of occupancy that was provided to the homeowners. For two out of five HOME loans selected for testing, the monitoring checklist maintained by the City did not contain the signature of the Housing Program Coordinator.

Cause
The City did not follow up on missing documentation required for the monitoring of HOME loans.

Effect
The City has not fully monitored compliance with the loan provisions for single family residence loans issued and does not have complete information indicating the loan recipients are in compliance with the loan provisions.

Recommendation
We recommend the City enhance their current loan monitoring procedures to ensure that checklists are properly filled out and signed by responsible employee, and that follow up procedures are performed in the event that incomplete information is received from the loan recipient.

Views of Responsible Officials
The City agrees with the finding. The City will enhance monitoring procedures for HOME loans to ensure required documentation is obtained, checklists are fully completed, and signatures are properly recorded. Follow-up procedures will be implemented when information is missing. The Housing Program Coordinator will oversee compliance monitoring and ensure all loan files are complete. 16

CITY OF HOLLISTER

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
JUNE 30, 2022
Finding 2022-008: Financial Reporting Timeliness (Uniform Guidance Compliance - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.

Condition
The 2022 Single Audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2023.

Cause
There were various accounting issues such as personnel turnover and accounting schedules not properly reconciling to the general ledger which caused delays in the completion of the 2022 annual audit.

Effect
The filing of the Single Audit Reporting package and data collection form is past the due date.

Recommendation
As noted in recommendation 2022-001, we recommend the City strive to close the year-end with properly prepared reconciliations within 3 - 4 months after year-end in order to complete the annual financial audit timely.

Views of Responsible Officials
The City agrees with the finding. The City acknowledges that full implementation of this corrective action cannot occur until prior-year audits are completed and the City becomes fully current. In the meantime, the City is strengthening internal processes to support timely year-end closing, including improved reconciliation procedures, increased staffing within the Finance Division, and the establishment of internal deadlines for audit preparation.

These improvements will support smoother and more timely audit completion once the City is current on all outstanding audits.
17

CITY OF HOLLISTER

SCHEDULE OF PRIOR YEAR FINDINGS
JUNE 30, 2022
Finding 2021-001: Financial Close (Material Weakness - Repeat Finding) Condition
During the performance of the audit, we noted that processes utilized for closing and financial reporting of financial activity for the fiscal year were not effective. Approximately 33 journal entries were proposed and posted subsequent to providing the trial balance for audit.

Recommendation
We recommend the City revisit their closing procedures to ensure that proper accruals, cut-off, classification, and long-term items are being recorded. Supporting schedules should agree and reconcile to respective account balances prior to the trial balance being provided for the audit. The City should develop checklists or other guidance documents over the City's closing process to ensure all closing entries are captured.

Status
Not implemented. See finding 2022-001.

Finding 2021-002: Grants (Material Weakness - Repeat Finding) Condition
The City's grant revenues, expenditures, and receivables are not being properly reconciled for financial reporting purposes at year-end.

In addition, the City is not timely submitting claims for reimbursement of eligible expenditures to the relevant Agency resulting in future revenues unavailable in the period of expenditure causing the City's general fund to up-front the expenditures.

Recommendation
We recommend the City review and enhance its Grants Administration Policy. With assistance from department heads/grant managers, summarized grant information and program information should be provided to the Administrative Services Department such as:
Copies of grant agreements and budgets
Copies of material expenditures with proper approval of coding and application Copies of reimbursement requests
Monitoring of grant cash flow
The Administrative Services Department should then be able to prepare a reconciliation of grant revenues and expenditures, and record receivables as needed. Claims for reimbursement should be submitted on a timely basis, within the fiscal year in which the expenditures were incurred.

Status
Not implemented. See finding 2022-002.
18

CITY OF HOLLISTER

SCHEDULE OF PRIOR YEAR FINDINGS (CONTINUED)
JUNE 30, 2022
Finding 2021-003: Notes Receivable (Material Weakness - Repeat Finding) Condition
Upon our review of the City's notes receivables, we noted the following:
The City is inconsistent in the recording of accruing interest on notes receivable. The allowance for uncollectible loans has not been reviewed or evaluated. The City has not performed a detailed review of their loans, noting that some loans on the books have terms which have expired.
These deficiencies have been recurring each year and recommendations have not been implemented.

Recommendation
The City should enhance its oversight over notes receivable. Increased oversight is necessary to ensure that all activity is properly and timely recorded.The Administrative Services Department should work closely with the Development Services Department to develop procedures to ensure that all loan activity is captured in the general ledger. In addition, we recommend the City reconcile and review their listing of loans, specifically loans generated over five years ago, to determine that all loans are current, have proper documentation, and are still owed to the City (i.e. no change in ownership or foreclosure of the related property). A master loan listing should be maintained and monitored. We also recommend management update their analysis of uncollectible accounts on an annual basis after reviewing the analysis of loans and making appropriate collection efforts to ensure that the estimated loss from uncollectible loan receivables is reflected on the balance sheet.

Status
Not implemented. See current year finding 2022-003.

Finding 2021-004: Cash and Bank Reconciliations (Material Weakness - Repeat Finding) Condition
There was a failure to accurately and timely perform monthly bank reconciliations for the June 30, 2021 fiscal year. Bank reconciliations were delayed approximately 7-10 months from each month-end and were ultimately completed in April 2022.
Upon review of the June 30, 2021 year-end bank reconciliation, we noted approximately $1.7 million in outstanding other reconciling items that should have been recorded to accounts receivable. The City had various funds with negative cash balances indicating that other funds' had paid for expenditures. See finding 2021-002.

Recommendation
We recommend the City review their cash and investment reconciliation procedures to ensure timely and accurate completion. Cash and investment reconciliations review should include tests of mechanical accuracy and tracing of items on the reconciliation to relevant source documents.

Status
Not implemented. See current year finding 2022-004.
19

CITY OF HOLLISTER

SCHEDULE OF PRIOR YEAR FINDINGS (CONTINUED)
JUNE 30, 2022
Finding 2021-005: Schedule of Expenditures of Federal Awards (Significant Deficiency) Condition
The initial schedule of expenditures of federal awards provided to the auditors contained numerous errors.

Recommendation
See recommendation for 2021-002. In addition, the City should establish proper internal controls to ensure that amounts claimed per each Federal award are complete and accurate.

Status
Not implemented. See current year finding 2022-006.

Finding 2021-006: Financial Reporting Timeliness (Uniform Guidance Compliance) Condition
The 2021 Single Audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse by the deadline.

Recommendation
As noted in 2021-001, we recommend the City strive to close the year-end with properly prepared reconciliations within 3-4 months after year-end in order to complete the annual financial audit timely.

Status
Not implemented. See current year finding 2022-008.
20

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: January 5, 2026
REPORT # Police-2026-01

AGENDA ITEM: A RESOLUTION AUTHORIZING THE POLICE DEPARTMENT TO

DISPOSE OF EXPIRED AND OBSOLETE BALLISTIC VESTS

DEPARTMENT: Police
DEPARTMENT HEAD: Carlos Reynoso, Police Chief
STAFF CONTACT: Carlos Reynoso, Police Chief

RECOMMENDED ACTION: Adopt a resolution authoring the police department to dispose of the obsolete ballistic vests.

DISCUSSION: The Hollister Police Department maintains an inventory of ballistic vests (body armor) issued to sworn personnel. Ballistic vests have a manufacturer-specified service life, typically five years, after which their ballistic protection is no longer warranted.

Once expired, vests are removed from service to ens ure officer safety and compliance with National Institute of Justice (NIJ) standards.

The Department has identified several expired and surplus ballistic vests currently in storage. These vests are no longer suitable for field use or reissue. Continuing t o store them serves no operational purpose and occupies secure property space.

Ballistic panel manufacturers often provide return, trade-in, or recycling programs for expired vests to ensure safe and responsible disposal. However, the manufacturers of the panels in possession have currently do not have any active recycling or disposal programs.

Department proposes to render the ballistic panels permanently unusable (in accordance with safety protocols) and dispose of them through approved channels. Disp osal will be documented with certificates of destruction or receipts as appropriate, and serial numbers will be retained in Department property records. This action will ensure compliance with applicable regulations, maintain the integrity of City property records, and reduce storage of obsolete protective equipment.

A detailed list of the ballistic vests proposed for disposal, including manufacturer, serial number, and expiration date, is provided in Attachment A.

FISCAL IMPACT: The disposal will be conducted by city staff during regular working hours and covered by existing operating funds.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: NA

ATTACHMENTS:

1. Resolution

2. List of Obsolete Ballistic Panels

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY OF HOLLISTER AUTHORIZING THE POLICE

DEPARTMENT TO DISPOSE OF EXPIRED AND OBSOLETE BALLISTIC VESTS

WHEREAS, the Hollister Police Department purchases ballistic vests for the safety of their personnel to be used in the performance of their duties; and

WHEREAS, the ballistic vests have a manufacturer-specified service life, typically five years, after which their ballistic protection is no longer warranted; and

WHEREAS, once expired, vests are removed from service to ensure officer safety and compliance with National Institute of Justice (NIJ) standards; and

WHEREAS, the police department currently has several vests in the inventory that are expired, obsolete, and cannot be recycled; and

WHEREAS, the department has a requirement to render the ballistic panels permanently unusable and dispose of them; and

WHEREAS, a detailed list of the serial numbers of those panels destroyed and disposed of will be retained.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorizes the police department to properly dispose of the expired and obsolete ballistic vests listed in Attachment A.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on January 5, 2026 by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

Resolution No. 2026-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on January 5, 2026 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on January 5, 2026.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

Expired Vests

Serial number Expiration Brand
10180059464 Exp 2013 Safariland
08064092 Exp 2013 ABA
30382238 Exp 2024 Angel Armor
130000254201 Exp 2018 Protective Products
150000146331 Exp 2020 Point Blank
08107217 Exp 2013 ABA
1504217817 Exp 2017 Survival Armor
140000069942 Exp 2019 Protective Products
21117837 Exp 2022 Safariland
130000071268 Exp 2018 Protective Products
PPE-225629 Exp 2017 Protective Products
1703276505 Exp 2022 Survival Armor
11317056 Exp 2016 Safariland
21117838 Exp 2022 Safariland
150000418850 Exp 2020 Point Blank
R0008781B Exp 2024 Angel Armor
130003625601 Exp 2018 Protective Products
1709180931 Exp 2022 Survival Armor
1504217818 Exp 2020 Survival Armor
R0002453F Exp 2024 Angel Armor
130000071250 Exp 2018 Protective Armor
100000199905 Exp 2015 Point Blank
100000198132 Exp 2015 Point Blank
1602110837 Exp 2021 Survival Armor
10180119031 Exp 2023 Safariland

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: January 5, 2026
REPORT # City Attorney-2026-01

AGENDA ITEM: A RESOLUTION APPROVING A CITY MANAGER EMPLOYMENT

AGREEMENT WITH ANA CORTEZ

DEPARTMENT: City Attorney
DEPARTMENT HEAD: Jennifer Thompson, City Attorney
STAFF CONTACT: Roxanne Stephens, Mayor

RECOMMENDED ACTION: Adopt a resolution approving the City Manager Employment Agreement with Ana Cortez.

DISCUSSION: Following an extensive recruitment effort, including interviews with numerous qualified candidates, the City Council has selected Ana Cortez as City Manager. The attached employment agreement sets forth the terms and conditions of Ms. Cortez’s employment as City Manager. The City Manager employment agreement requires approval of the City Council.

The key material terms of the employment agreement are as follows:

1. The term is for four (4) years from February 2, 2026.

2. The City Manager’s annual base salary will be $265,000. In addition to the City Manager’s base salary, the City Manager shall be entitled to an additional retirement contribution of $2,200.00 annually.

3. The City Manager shall participate in the City’s Executive Management Unit Salary and Benefits Program on the same terms and conditions adopted or approved by the City Council, except the City Manager is ineligible for the Cost- of-Living-Adjustment.

4. The City will pay the City Manager’s dues to participate in professional associations and conferences.

FISCAL IMPACT: There are sufficient funds available in the Administration budget to accommodate the salary and benefit package recommended in the City Manager Employment Agreement.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A. Not a project

ATTACHMENTS:

1. Resolution

2. City Manager Employment Agreement

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING AN EMPLOYMENT AGREEMENT TO APPOINT ANA CORTEZ AS THE

CITY OF HOLLISTER CITY MANAGER

WHEREAS, on January 5, 2026, after careful review, consideration, including after conducting City Manager candidate interviews on December 8, 12 and 13, 2025 in closed session, the City Council has approved an employment contract with Ana Cortez for the position of City Manager with the City of Hollister; and

WHEREAS, on January 5, 2026, after careful review and consideration, the City Council determined that it is in the best interest of the citizens of Hollister to approve a four -year contract with Ana Cortez for employment with the City of Hollister for the position of City Manager; and

WHEREAS, Ana Cortez has proven the ability to perform duties of the City Manager position in a professional and competent manner; and

WHEREAS, Ana Cortez has agreed to serve and be employed as City Manager of the City of Hollister on the terms and conditions set forth in the attached agreement.

NOW, THEREFORE BE IT RESOLVED that the Mayor of the City of Hollister is hereby authorized and directed, for and on behalf of the City Council, to execute the employment agreement for City Manager Services between the City of Hollister and Ana Cortez.

PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held January 5, 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

Resolution No. 2026-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting of said Council held on January 5, 2026, at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on January, 5 2026.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

1 EMPLOYMENT AGREEMENT

CITY MANAGER, CITY OF HOLLISTER
This Employment Agreement (“Agreement”) is entered into on _________ ____, 202__, by and between the City of Hollister (“City”) and Ana Cortez (“Employee”) (each a “Party,” collectively the “Parties”), with respect to the following Recitals, which are a substantive part of this Agreement:

RECITALS
A. Employee has been selected by the City Council to serve as the new City Manager.

B. Employee desires to become the new City Manager and City desires to appoint Employee to the City Manager position, subject to the terms of this Agreement.

NOW, THEREFORE, City and Employee agree as follows:

1. Employment. City employs Employee as the City Manager effective beginning on February 2, 2026. Employee serves at the pleasure of the City Council subject to the terms and conditions set forth below. Employee’s employment with the City as City Manager is at the mutual consent of both Employee and the City. There are no express or implied agreements contrary to the foregoing.

2. Term. This Agreement shall be in effect for a period of four (4) years beginning on February 2, 2026, unless terminated in accordance with Section 7 below. In the event of termination pursuant to Section 7, Employee shall not be entitled to any add itional compensation except as provided in Section 7. This Agreement shall automatically rollover each year following the initial term of four (4) years unless Employee receives a written notice of termination one hundred eighty (180) days before the expiration of any extension.

3. Salary. Employee shall receive an annual base salary of Two Hundred Sixty-Five Thousand Dollars and Zero Cents ($265,000.00). Employee may request a salary increase tied to positive performance as part of the annual evaluation process outlined in paragraph 6. Any such salary increase shall be approved by City Council pursuant to this Agreement and shall not require an amendment to this Agreement to be effective.

4. Duties and Professional Conduct of the City Manager. Employee shall have the powers and shall perform the duties prescribed in the Hollister Municipal Code for the City Manager.

Employee shall also perform such additional responsibilities as may be assigned by the City Council.

Employee shall adhere to the professional standards of conduct as prescribed by the International City Management Association, which is attached hereto and incorporated herein by reference as Attachment A.

5. Hours of Work. The City Manager is an exempt employee but is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager’s position. The City Manager does not have set hours of work as the City Manager is expected to be available at all times. It is recognized that the City Manager must devote a great deal of time to the business of the City outside of the City’s customary office hours, and, to that

2 end, the City Manager’s schedule of work each day and week shall vary in accordance with the work required to be performed. The City Manager shall spend sufficient hours on site to perform the City Manager’s duties; however, the City Manager has discretion over the City Manager ’s work schedule and work location. After July 1, 2026, City Manager shall not spend more than 12 hours per month in teaching, consulting, speaking, or other non-City connected business for which compensation is paid without the express prior consent of the City Council. From the first day of the contract, City Manager shall make City business the priority over all teaching, consulting, speaking, or other non-City connected business.

6. Evaluation. Employee shall receive a performance evaluation in February of each year, beginning in 2027, during the Term of this Agreement, or more often as may be requested by the City Council. It shall be the responsibility of Employee to schedule those evaluations. Failure to evaluate shall have no effect on the rights, duties, and obligations of the Parties herein.

7. Termination and Severance.
a. Termination Without Cause. A three-fifths (3/5) majority of the entire City Council may terminate this Agreement at any time without cause by providing at least thirty (30) days’ written notice to Employee. In the event of termination without cause, Employee shall be entitled to six (6) months’ severance compensation. The severance will include the payout of all accrued vacation time, all accrued sick time, all accrued administrative leave time, the cash value of six (6) months long-term disability and six (6) months cash value of employer share of health benefits. Severance shall be paid in one lump sum or on the payroll schedule (Employee’s preference) and in the same manner as the customary payout of earned benefits.
b. Termination for Cause. A three-fifths (3/5) majority of the entire City Council may terminate this Agreement immediately for cause. If Employee is terminated for cause, Employee shall not be entitled to severance compensation under this Section. c. For Cause Defined. Cause shall be defined to include, but shall not be limited to, any of the following:
1) failure of the City Manager to observe or perform any of her duties and obligations, or failure to carry out a directive of the City Council, if that failure continues for a period of thirty (30) days from the date of her receipt of notice from the City Council specifying the acts or omissions deemed to amount to that failure; 2) repeated unexcused absences from the City Manager’s office and duties;
3) conviction of a felony or a misdemeanor crime involving acts of moral turpitude under California law;

3 4) continued abuse of non-prescription drugs or alcohol that materially affects the performance of Employee’s duties; and
5) breach of this Agreement.
d. Termination Defined. Termination shall mean removal from office or a request that the City Manager resign. Termination shall not mean a reduction of benefits generally applicable to all management employees.
e. Joint Statement. Upon either termination for cause, termination without cause, or resignation, an agreed joint statement shall be issued by the Parties. The City and the Employee agree that no member of the City Council, the City Management staff, nor the Employee, shall make any written, oral, or electronic statement to any member of the public, the press, or any City employee concerning the Employee’s termination, except in the form of a joint press release or statement, the content of which is mutually agreeable to the City and the Employee. The joint press release or statement shall not contain any text or information that is disparaging to either Party. Either Party may verbally repeat the substance of the joint press release or statement in response to any inquiry. The sole remedy to any aggrieved Party for a violation of this Section shall be the payment to aggrieved Party by the other Party of One Thousand Dollars ($1,000.00) per occurrence.
f. Resignation. Employee may choose to resign her office instead of being terminated if a decision by the City Council to terminate has been made in closed session.

In such an event, the Joint Statement as provided for in paragraph 7e will note that the Employee has resigned and paragraph 7a will remain applicable. g. Citywide Reduction in Salaries. The City Council may reduce the City Manager’s Base Salary as part of a City-wide reduction in City employee salaries. If the City reduces the Base Salary or any other financial benefit of the City Manager at a percentage that is greater than the average reduction of all employees, such action shall constitute a termination of this Agreement without cause under paragraph 7a of this Agreement, and City Manager shall be entitled to severance.

8. Notice of Resignation. Employee shall provide to City at least thirty (30) days’ written notice of her intent to voluntarily resign as the City Manager.

9. Conviction of Crime Involving Abuse of Office. Regardless of the term of this Agreement, if this Agreement is terminated, any cash settlement related to the termination shall be fully reimbursable to City if Employee is convicted of a crime involving an abuse of her office.

10. Benefits and Allowances. During the Term of this Agreement, Employee shall receive the City of Hollister Executive Management Unit Salary and Benefits for PERS retirement, annuities, deferred compensation, life and other insurance, expense and reimbursement allowances, medical, dental and vision plans, sick leave, compensatory time off, workers’ compensation, and similar subsequent or replacement benefits, all in accordance with the terms and conditions thereof as adopted or approved by the City Council. The Employee is ineligible for the Cost-of-Living

4 Adjustment included as part of the City of Hollister Executive Management Unit Salary and Benefits.

In addition, Employee shall also receive the following:

a. Employee will be provided with an additional retirement contribution up to two thousand two hundred dollars ($2,200.00) annually to the Employee’s eligible 457/401K account of their choosing. This additional retirement contribution will be the difference between five thousand nine hundred dollars ($5,900.00) and Employee’s surplus Flex Credits pursuant to Section 7C of the City of Hollister Executive Management Unit Salary and Benefits Plan.

b. Vacation will be accrued based on the following years of service:

1st through completion of 2rd year: 10 days of vacation accrued annually 3rd through completion of 5th year: 15 days of vacation accrued annually 6th through completion of 9th year: 20 days of vacation accrued annually Beginning of the 10th year: 25 days of vacation accrued annually

11. Professional Development. The City agrees to budget for and to pay membership fees/dues, conference/meeting registrations, and travel and subsistence expenses of Employee for professional development and official travel, meetings, and occasions adequate to continue her professional development and to adequately pursue necessary official and other functions of the City, including, but not limited to, the annual Conference of the League of California Cities (“LCC”), the LCC Spring City Manager’s Department meeting, and annual ICMA Conference. Travel and conference expenses shall be reimbursed for reasonable expenses only and in accordance with the City’s policies governing travel and conference expense reimbursement.

12. Expense Reimbursement. City shall reimburse Employee for actual and necessary expenses incurred within the scope of employment in accordance with City’s reimbursement schedules and policies.

13. Duties and Professional Conduct of Members of the City Council . The City Council shall abide by the Hollister Municipal Code Chapter 2.04 and shall not unduly interfere with the City Manager’s responsibilities as set forth in Municipal Code Chapter 2.08. Failure of any member of the City Council to follow the foregoing shall result in Employee’s ability to immediately terminate this Agreement. Upon Employee terminating this Agreement, she shall be entitled to the same severance pay as set forth in paragraph 7a.

14. Indemnification. The City agrees to defend, hold harmless, and indemnify Employee, subject to the provisions and limitations set forth in Government Code section 825 et seq., against any and all claims, liabilities, expenses, or damages of any nature, including reasonable attorney’s fees, arising out of or in connection with Employee’s performance of the course and scope of this Agreement. The City may decline to defend Employee as permitted in the California Government Code. At its sole discretion, the City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered therefrom. The provisions of this Section shall survive the termination of this Agreement.

5 15. Notices. Any notices required or permitted by this Agreement shall be in writing and shall be personally served or shall be sufficiently given and deemed served upon the other Party if sent by United State Postal Service, first class postage prepaid, and addressed as follows:

TO CITY:

TO EMPLOYEE:

City Council
c/o City Attorney
Lozano Smith
733 Marsh Street, Suite 200
San Luis Obispo, CA 93401
Ana Cortz
City Manager
City of Hollister
375 Fifth Street
Hollister, CA 95023
Notices shall be deemed given as of the date of personal service or upon the date of deposit in the course of transmission with the United States Postal Service.

16. General Provisions.
a. Governing Law and Venue. This Agreement and the rights and obligations of the Parties shall be governed by and construed in accordance with the laws of the State of California. The Parties also agree that, in the event of litigation, venue shall be the state courts located in San Benito County, California.

b. Entire Agreement. This Agreement contains the entire agreement and understanding between Employee and City with respect Employee’s employment as City Manager. There are no oral understandings, terms, or conditions, and neither Party has relied upon any representation, express or implied, not contained in this Agreement.

c. No Assignment. Employee may not assign or transfer any rights granted or obligations assumed under this Agreement.

d. Modification. This Agreement cannot be changed or supplemented orally.

It may be modified or superseded only by a written instrument executed by both of the Parties.

e. Effect of Waiver. The failure of the other Party to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement by the other Party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

///
///
///
///

6 f. Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of the Agreement shall continue in full force and effect.

CITY CITY MANAGER

________________________________ ____________________________ Roxanne Stephens, Mayor Ana Cortez

APPROVED AS TO FORM

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: January 5, 2026
REPORT # City Manager-2026-02

AGENDA ITEM: A RESOLUTION DIRECTING CITY STAFF TO BRING BACK

OPTIONS, INCLUDING POLICIES AND A POSSIBLE ORDINANCE THAT CAN

ADDRESS COMMERCIAL BUILDINGS THAT ARE VACANT

DEPARTMENT: City Manager
DEPARTMENT HEAD: Jim Pia, Interim City Manager
STAFF CONTACT: Jim Pia, Interim City Manager

RECOMMENDED ACTION: Discuss options for addressing the effects of closed commercial buildings, and authorize staff to work to bring back options, including policies and a possible ordinance that can address commercial buildings that have been closed.

DISCUSSION: At the City Council meeting of June 2, 2025, Councilmember Morales requested a future Council agenda item so that Council could direct staff to establish policies or develop an ordinance to address vacant commercial buildings. Following this request, an analysis showed that Hollister Municipal Code Chapter 8.32, also referred to as the Property Maintenance Law, states that “any condition constituting a public nuisance, as defined herein, is injurious and inimical to the public health, safety and general welfare, diminishes property values and degrades the quality-of-life within the city.” In short, the Property Maintenance Law provides the City with the authority to require property owners to abate a public nuisance and to bring enforcement action if the nuisance is not abated.

In terms of policy or ordinance development, other Bay Area cities have used mandatory vacant storefront registration, including fees, and security standards, with the goal toward reducing blight and encouraging building reuse.

It is important to note, while the City has adequate ordinances in place to abate nuisance properties, such enforcement efforts always depend upon the availability of adequate staff and available staff time. Should Council choose to explore policies on vacant commercial buildings, it would be helpful to provide proposed areas that staff can focus on to bring back to the City Council in the coming weeks.

FISCAL IMPACT: None

CEQA: N/A

ATTACHMENTS:

1. Resolution

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

DIRECTING CITY STAFF TO BRING BACK OPTIONS, INCLUDING POLICY

AND A POSSIBLE ORDINANCE THAT CAN ADDRESS COMMERCIAL BUILDINGS

THAT ARE VACANT

WHEREAS, at its June 2, 2025, City Council meeting, Councilmember Morales requested a future Council agenda item on the subject of vacant commercial buildings; and

WHEREAS, following the request, staff reviewed the Hollister Municipal Code Chapter

8.32, also referred to as the Property Maintenance Law; and

WHEREAS, the Hollister City Council further discussed this item at its January 5, 2026 Council meeting.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hollister as follows:

The City Council hereby directs City staff to bring back options, including policies and a possible ordinance that can address commercial buildings that are vacant.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on January 5, 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Roxanne Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney

Resolution No. 2025-XX

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a reg ular meeting held on January 5, 2026 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on January 5, 2026.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: January 5, 2026
REPORT # City Clerk-2026-02

AGENDA ITEM: DISCUSSION OF SPECIAL EVENT AND BANNER PERMIT FEES

DEPARTMENT: City Clerk
DEPARTMENT HEAD: Jennifer Woodworth, City Clerk
STAFF CONTACT: Jennifer Woodworth, City Clerk

RECOMMENDED ACTION: Discuss and provide direction regarding the City’s current and proposed fees for special events and banners. Staff recommends an update to the City’s fee schedule to include reimbursement of actual costs related to special event and banner permit fees with a 50% discount for non -profit organizations and governmental agencies. Fees are recommended to be implemented on a phased approach with a 10% increase per year until the fee reaches the City’s actual costs.

DISCUSSION:

The City of Hollister has established a special event procedure to coordinate approvals and logistics required for holding events on outdoor public and private property. The City Clerk Department currently manages the special event permit process and serves as liaison between City departments and the event organizer. Special event permits are required for various public and private gatherings such as parades, block parties, farmers markets, and other temporary outdoor events or gatherings that require street closures, block public property, include the sale of merchandise, etc.

The requirements and procedures for special event permits are outlined in Hollister Municipal Code (HMC) Section 12.36 (Parades and Public Assemblies), which also states the City shall charge a nonrefundable permit application fee and shall charge departmental service charges, which are defined as “the actual costs which a department of the city incurs in connection with activities for which a permit is required” under this section of the municipal costs. The permit application fee and departmental services charges are to be set by resolution of the City Council.

The City charges a permit application fee, but it has not previously billed applicants for departmental services charges as authorized by the HMC. Staff compiled the costs to hold various types of events common to the City and researched special events in nearby and similar cities and their associated fees. All cities surveyed charge either higher application fees and/or additional fees related to the type of event. Most nearby agencies charge costs based on the size and location of the event with additional fees for street sweeping, amplified sound, etc.

In recent years the frequency of events and level of staff time needed to prepare for and staff public events have increased. This has increased costs to departments and the City in the form of staff overtime and other resources. Additionally, events in the downtown area typically require road closures using K-rails to protect pedestrian safety.

Public Works Department staff set up detour and road closure signs, barricades, and may also be required to staff vehicles when used as barriers.

When event organizers have used volunteers to manage traffic barricades for the protection of event participants in the roadways, the volunteers often provide either an inadequate level of barricading of streets or have been observed leaving their areas of assignment, which may lead to others removing the barricades to pass through a closed area.

Additionally, with the increase in violent incidents at public events, the need for greater law enforcement presence and security preparation also increases. With the events becoming larger in attendance, they can also become more tempting targets for such threats as well as a higher potential for violence and property crimes with the higher density of people in a particular area. As a result, the City has opted to utilize K-rail barriers for events in the downtown area.

As mentioned above, the City has not previously charged departmental service fees, which would reimburse the City for services provided by staff and use of City equipment. As a result in Fiscal Year 2024-25, the City took in $1,554 in special event application fees and utilized approximately $125,000 of General Fund budget to fully subsidize costs related to staff time and City resources. Using the actual costs of staff time and other resources, staff recommends charging the unadjusted actual costs for departmental services charges.

The fees for each type of event would be based on the actual resources needed to support public safety and access, rather than a one-size-fits-all approach. For example, a downtown event during business hours would cost approximately $1,011 in addition to the application fee. A weekend parade through the downtown, which requires staff overtime, would cost $7,075.96. However, an event in a park or closed parking lot, which require no street closure would only incur the application fee.

In order to continue to promote community events, staff recommends subsidizing the costs to non-profit organizations and governmental agencies by 50%. Staff additionally recommends phasing in the fee adjustments with a 10% increase per year until the fee reaches the actual costs to the City to provide staff time and resources.

The City also allows non-profits and government agencies to hang banners in two locations over San Benito Street in the Downtown Area. Currently the application fee for this is $169 for the banners over San Benito Street, which covers costs to review and process the application. To hang each San Benito Street banner costs the City approximately $315.50 in staff time and other resources.

For Fiscal Year 2024-25, the City took in $1,503 in banner fees and subsidized another $2,839 in staff time and other resources using General Fund budget. According to the HMC, permits for San Benito Street banners are only granted for non -profit organizations and government agencies. Staff recommends charging 50% of the unadjusted actual costs for departmental services charges to hang street banners, which is $156.75, in addition to the application fee , for a total of $325.75.

FISCAL IMPACT: Potential increase in revenue to offset the costs to the General Fund will depend on the number of special event permits and banner permits issued each year.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS: None.

HOLLISTER CITY COUNCIL

REQUEST FOR FUTURE AGENDA ITEM
Council member(s) requesting item
(no more than two):

Topic to be Discussed:

Recommended City Council Action:

Background information, such as reasoning for recommended Council action, justification for placing on the agenda, etc.:

Requested date of discussion (minimum of four weeks from the date of the request):
☐Mayor Stephens
☐Councilmember Picha, District 1
☐Councilmember Resendiz, District 2
☐Councilmember Morales, District 3
☐Councilmember De Anda, District 4
4 City Council Meeting change from 1st and 3rd Monday to 2nd and 4th Monday.

Recommendation to modify the HMC Section that sets the regular meeting days for the City Council is Section

2.04.050, which reads:

2.04.050 - Meetings—Time and place—Held in conformity with state law.

The city council shall hold regular meetings on the first and third Mondays of each month at the hour of 6:30 p.m. in the council chambers in city hall. If that Monday falls on a city observed holiday, the meeting will fall to the Tuesday after the holiday. Regular, adjourned, special and closed meetings shall be held in conformity with the provisions of Government Code, § 54950, et seq., and shall terminate at 10:00 p.m. unless the meeting is extended by the city council.

To read: 2.04.050 - Meetings—Time and place—Held in conformity with state law.

The city council shall hold regular meetings on the second and fourth Mondays of each month at the hour of 6:30 p.m. in the council chambers in city hall. If that Monday falls on a city observed holiday, the meeting will fall to the Tuesday after the holiday. Regular, adjourned, special and closed meetings shall be held in conformity with the provisions of Government Code, § 54950, et seq., and shall terminate at 10:00 p.m. unless the meeting is extended by the city council.

There are no meeting conflicts 2nd and 4th Monday of the month. 1/5/2026

Select the Applicable Strategic Goal(s) and list any Applicable Objective(s) City Council Goal: ☐ Infrastructure
Applicable Objective(s):

City Council Goal: ☐ Budget, Finances & Economic Development Applicable Objective(s):

City Council Goal: ☐ Quality of Life and Public Safety
Applicable Objective(s):

City Council Goal: ☐ Community Engagement, Education, and Transparency Applicable Objective(s):