Hughson City Council
May 11, 2026

City Council Agenda May 11, 2026
1 1910774-2

AMERICANS WITH DISABILITIES ACT/CALIFORNIA BROWN ACT

NOTIFICATION FOR THE CITY OF HUGHSON
This Agenda shall be made available upon request in alternative formats to persons with a disability as required by the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12132) and the Ralph M. Brown Act (California Government Code Section 54954.2).

Disabled or Special needs Accommodation: In compliance with the Americans with Disabilities Act, persons requesting a disability related modification or accommodation in order to participate in the meeting and/or if you need assistance to attend or participate in a City Council meeting, please contact the City Clerk’s office at (209) 883-4054. Notification at least 48-hours prior to the meeting will assist the City Clerk in assuring that reasonable accommodations are made to provide accessibility to the meeting.

City of Hughson

CITY COUNCIL MEETING
Hughson City Hall – 7018 Pine Street Hughson, California MONDAY, MAY 11, 2026 - 6:00 P.M.

CALL TO ORDER: Mayor George Carr
ROLL CALL: Mayor George Carr
Mayor Pro Tem Randy Crooker
Councilmember Julie Ann Strain
Councilmember Alan McFadon
Councilmember Susana Vasquez
AGENDA

HUGHSON CITY COUNCIL
How to participate in, or observe the Meeting:
• In person in the City Council Chambers and submit public comment when invited during the meeting. • Observe only via YouTube live, by accessing this link:
https://www.youtube.com/channel/UC-PwkdIrKoMmOJDzBSodu6A?view_as=subscriber If a technical issue arises with any streaming option, the City Council meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. • In addition, recorded City Council meetings are posted on the City’s website the second business day following the meeting. Recorded videos can be accessed with the following link:

Upcoming Meetings | Hughson CA

City Council Agenda May 11, 2026
2 1910774-2
FLAG SALUTE: Mayor George Carr
INVOCATION: Hughson Ministerial Association

1. PUBLIC BUSINESS FROM THE FLOOR (No Action Can Be Taken):

Please limit presentations to three minutes. If you wish to speak regarding an item on the agenda, you may be asked to defer your remarks until the Council addresses the matter. Pursuant to California Government Code Section 54954.2(a)(3), no action or discussion may be undertaken on any item not appearing on the posted agenda, except that the City Council, or its staff, may briefly respond to comments or questions from members of the public, provide a reference to staff or other resources for factual information, or direct staff to place the issue on a future agenda.

2. PRESENTATIONS:

2.1: Certificate of Recognition to Yzabella “Baya” Austin

2.2: Proclaim May 17-23, 2026, as Public Works Week

3. CONSENT CALENDAR:

All items listed on the Consent Calendar are to be acted upon by a single action of the City Council unless otherwise requested by an audience member, or individual Councilmember, for special consideration. Otherwise, the recommendation of staff will be accepted and acted upon by roll call vote.

3.1: Approve the Minutes of the Regular Meeting of April 27, 2026.

3.2: Approve the Warrants.

3.3: Approve the Treasurer’s Report for Month Ended in March 2026.

3.4: Waive the Second Reading and Adopt Ordinance No. 2026-01, Amending Municipal Code Section 10.40.020 Relating to Exceptions to Speed Limits.

3.5: Adopt Resolution No. 2026-09, Approving the Fiscal Year 2024/2025 and Fiscal Year 2025/2026 Community Development Block Grant (CDBG) Funding Agreements with Stanislaus County and authorize the City Manager to execute the agreements.

3.6: Adopt Resolution No. 2026-10, in concurrence with Stanislaus Urban County and the Stanislaus HOME Consortium Fiscal Year (FY) 2026-2027 Annual Action Plan and support of submission to the HUD.

4. UNFINISHED BUSINESS:

4.1: Introduce and Waive the First Reading of Ordinance No. 2026-02, adding Chapter 2.05 to the HMC – The Code of Conduct for Elected Officials.

City Council Agenda May 11, 2026
3 1910774-2

5. PUBLIC HEARING: NONE.

6. NEW BUSINESS:

6.1: Accept the City of Hughson’s Fiscal Year 2024-25 Audited Financial Report.

7. CORRESPONDENCE: None.

8. COMMENTS:

A brief report on notable attendance at a meeting, or conference, or other notable topics of City business shall be made. The Brown Act does not allow for discussion or action of items by the City Council during this time.

8.1: Staff Reports and Comments:

City Manager
Director of Finance
Community Development Director
Police Services
City Attorney

8.2: Council Comments:

9. CLOSED SESSION:

9.1: CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Dominique Romo, City Manager Employee Organization: Operating Engineers Local Union 3

9.2: CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One (1) potential case

10. ADJOURNMENT:

The next City Council meeting is scheduled for Tuesday, May 26, 2026, at 6:00 pm.

In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the office of the City Clerk at Hughson City Hall during normal business hours. If, however, the document

AFFIDAVIT OF POSTING
Date: May 8, 2026 Time: 4:00 PM
Name: Dominique Romo Title: City Manager

City Council Agenda May 11, 2026
4 1910774-2
or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on the agenda.

Notice Regarding Non-English Speakers
Pursuant to California Constitution Article III, Section IV, establishing English as the official language for the State of California, and in accordance with California Code of Civil Procedures Section 185, which requires proceedings before any State Court to be in English, notice is hereby given that all proceedings before the City of Hughson City Council shall be in English and anyone wishing to address the Council is required to have a translator present who will take an oath to make an accurate translation from any language not English into the English language.

UPCOMING EVENTS:

May 9 • 39th Annual Chicken BBQ, Hughson Fire Station 4PM-7PM- $20 per Ticket May 11 • City Council Meeting, City Council Chambers, 6:00PM May 12 • Parks, Recreation & Entertainment Commission, Council Chambers, 6:00PM May 16 • Household Hazardous Waste & Shredding Event, City Hall Parking Lot, 8AM12PM or Until Full May 19 • Planning Commission Meeting, City Council Chambers, 6:00PM May 25 • Memorial Day – City Hall Closed in Observance
May 26 • City Council Special Meeting (Tuesday), City Council Chambers, 6:00PM

Meeting Date: May 11, 2026
Subject: Proclaim May 17-23, 2026, Public Works Week
Presented By: George Carr, Mayor
Recommendation:

Proclaim May 17-23, 2026, as Public Works Week in the City of Hughson.

Discussion:

As the American Public Works Association (APWA) states, “There would be no community without the quality-of-life public works provides. There would be no community to police and protect, no public to lead or represent. Public works allows the world as we know it to be”.

This year's theme “Rooted in Service, Powered by Community” acknowledges that the roots of service run deep in public works. It is what has propelled public works innovations that have helped our communities evolve into places where people can lead lives of purpose and possibility. Some work- like building roads and bridges- is highly visible; while other public works contributions- like maintaining water and sewer systems- are sometimes hidden from view. Together, these efforts form the foundation of thriving communities, reminding us that every project, seen or unseen, powers the connection between service and the people it supports.

The Public Works staff, including Utilities staff, includes Jose Vasquez, Eduardo “Lalo” Ruiz, Sam Luna, Robert “Bobby” Delarm, Adrian Luna, Leeroy Garcia, Javier Ortiz-Hernandez, Sam Fullen, Angel Romero, Gilberto Flores, and Alejandro Bustos-Martinez.

Recognition and appreciation of our Public Works staff will take place during this week.

Fiscal Impact:

Costs associated with the recognition of the City of Hughson Public Works staff will be covered with the approved budget for the City Employee Appreciation and Recognition Program.

CITY COUNCIL AGENDA ITEM NO. 2.2
SECTION 2: PRESENTATIONS

Proclamation 66th Annual National Public Works Week May 17-23, 2026 “Rooted in Service, Powered by Community”
WHEREAS, public works professionals focus on infrastructure, facilities, and services that are of vital importance to sustainable and resilient communities and to public health, high quality of life, and well-being of the people of the City of Hughson; and,

WHEREAS, these infrastructure, facilities, and services could not be provided without the dedicated efforts of public works professionals, who are engineers, managers, and employees at all levels of government and the private sector, who are responsible for rebuilding, improving, and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and other structures and facilities essential for our citizens; and,

WHEREAS, it is in the public interest for the citizens, civic leaders, and children in the City of Hughson to gain knowledge of and maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities; and,

RESOLVED, I, George Carr, Mayor of Hughson, do hereby designate the week of May 17–23, 2026, as National Public Works Week. I urge all citizens to join with representatives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees, and to recognize the substantial contributions they make to protecting our national health, safety, and advancing quality of life for all

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the State,

DONE at the City of Hughson, California, this 11th day of May 2026.

______________________________

GEORGE CARR

MAYOR OF THE CITY OF HUGHSON
May 11, 2026

CITY COUNCIL AGENDA ITEM NO. 3.1
SECTION 3: CONSENT CALENDAR
Meeting Date: May 11, 2026
Subject: Approval of the City Council Minutes
Presented By: Dominique Romo, City Manager
Approved By:
____________________________
City Manager
______________________________________________________________________________ Recommendation:

Approve the Minutes of the Regular Meeting of April 27, 2026.

City Council Minutes April 27, 2026
1 1910774-2
City of Hughson

CITY COUNCIL MEETING
Hughson City Hall – 7018 Pine Street Hughson, California MONDAY, APRIL 27, 2026 - 6:00 P.M.

CALL TO ORDER: Mayor George Carr
ROLL CALL:

Present: Mayor George Carr
Mayor Pro Tem Randy Crooker
Councilmember Julie Ann Strain
Councilmember Alan McFadon
Councilmember Susana Vasquez
Staff Present: Dominique Romo, City Manager
Andy Pinasco, City Attorney
Kim Weimer, Director of Finance and Admin Services
Carla Jauregui, Community Development Director
FLAG SALUTE: Mayor George Carr
INVOCATION: Hughson Ministerial Association

1. PUBLIC BUSINESS FROM THE FLOOR (No Action Can Be Taken):

Kelly Montgomery Ceglio spoke to the City Council and shared her concerns and requests regarding the Stanislaus Animal Services Agency (SASA).

MINUTES

HUGHSON CITY COUNCIL

City Council Minutes April 27, 2026
2 1910774-2

2. PRESENTATIONS:

2.1: Turlock Mosquito Abatement District Update from Board of Trustee Vice President and Hughson Representative Michael Mitchel.

Hughson Representative Michael Mitchel provided a PowerPoint presentation reviewing the ongoing operations and updates at the Turlock Mosquito Abatement District.

Mayor Carr then presented Certificates of Recognition to Grace Curry , Kate Cooper, Pearl Bunch, and Travis Harkrader on their accomplishments in the FFA.

3. CONSENT CALENDAR:

All items listed on the Consent Calendar are to be acted upon by a single action of the City Council unless otherwise requested by an audience member, or individual Councilmember, for special consideration. Otherwise, the recommendation of staff will be accepted and acted upon by roll call vote.

3.1: Approve the Minutes of the Regular Meeting of April 13, 2026.

3.2: Approve the Warrants.

3.3: Adopt Resolution No. 2026-08, accepting the Hughson Avenue Sidewalk Repair Project as complete and Authorizing the City Manager to file a Notice of Completion with the Stanislas County Clerk-Recorder.

STRAIN/CROOKER (5-0) motion passed unanimously to approve the Consent Calendar as presented.

4. UNFINISHED BUSINESS:

4.1: Introduce and Waive the First Reading of Ordinance No. 2026-01, Amending Municipal Code Section 10.40.020 Relating to Exceptions to Speed Limits.

CDD Jauregui presented the staff report on this item. Staff was directed at the April 27th meeting to make some modifications and then bring it back for its first reading.

MCFADON/STRAIN (5-0) motion passed unanimously to Introduce and Waive the First Reading of Ordinance No. 2026-01, Amending Municipal Code Section 10.40.020 Relating to Exceptions to Speed Limits.

5. PUBLIC HEARING: None.

6. NEW BUSINESS:

City Council Minutes April 27, 2026
3 1910774-2

6.1: Discuss the Draft Code of Conduct for Elected Officials and Provide Direction to Staff on Potential Modifications and Additional Updates.

City Attorney Pinasco presented the staff report on this item and answered questions of the Council.

No edits or modifications were made by Council to the presented policy. Staff received direction to bring this item back to Council for introduction and the first reading at the May 11th meeting.

No action was taken.

7. CORRESPONDENCE: None.

8. COMMENTS:

A brief report on notable attendance at a meeting, or conference, or other notable topics of City business shall be made. The Brown Act does not allow for discussion or action of items by the City Council during this time.

8.1: Staff Reports and Comments:

City Manager Romo updated Council on her attendance at the 2+2 City/Fire, Leadership Breakfast, County Election Workshop and Career Day and Senior Interviews at Hughson High School. She provided reminders for the State of the District, Bicycle Rodeo, and the City of Riverbank State of the City Address.

Director of Finance Weimer updated Council on the Audit and preparation of the FY 2026-27 Budget.

Community Development Director Jauregui updated Council on the Hughson Avenue Lighting and the 7th Street Improvements Projects. She also spoke to the Park After Dark events coming this summer.

Chief of Police Services Brock Dias updated Council on the Bicycle Rodeo Event scheduled for April 29th at Lebright Park.

8.2: Council Comments:

Councilmember Vasquez updated Council on her attendance at the Special City Selection Committee Mtg, the Hughson Market, and the Fruit & Nut Festival. She thanked Abel Morin, President of the Hughson Chamber of Commerce, Chamber staff, and the high school teachers and students for their volunteer work at the Festival.

Councilmember Vasquez then provided a follow-up response to the statement Mayor Carr made at the April 11th City Council Meeting regarding the allegations of his conduct from Councilmember Vasquez and the resulting sustained findings.

City Council Minutes April 27, 2026
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Councilmember Strain updated the Council on her attendance at the Leadership Breakfast, the Fruit & Nut Festival, and the Hughson Market.

Mayor Pro Tem Crooker updated Council on his attendance at the 2+2 City/Fire meeting, where the Public Safety/Civic Center Project was discussed and staff continue to work on obtaining grant funding to cover the project costs.

Mayor Carr updated the Council on his attendance at the 2+2 City/Fire meeting, the Turlock Business Conference, and the Fruit & Nut Festival, where he had the privilege of opening for the Festival on Saturday. He also thanked Amber Peavey and Melissa Worley for their hard work on making the Festival a success; and then thanked Kathryn Casey with the Hughson Chronicle as well, for her work on covering the Festival.

9. CLOSED SESSION: The Council adjourned into Closed Session at 7:31pm.

9.1: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Souza, et al. v. CalPERS; OAH Case No. 2025040541; Agency Case No. 2024-0999

9.2: CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One (1) potential case
City Council returned from closed session at 8:11 PM. All members were present for the duration of Item 9.1. Council Members authorized settlement with CalPERS.

Mayor Carr recused himself from Item 9.2. The remaining City Council Members authorized the City’s rejection of the claim submitted by Ms. Gose.

10. ADJOURNMENT:

STRAIN/CROOKER (5-0) motion passed unanimously to adjourn the meeting at 8:12 PM.

APPROVED:

ATTEST: ______________________________
GEORGE CARR, Mayor
__________________________________
DOMINIQUE ROMO, City Manager

Meeting Date: May 11, 2026
Subject: Approval of Warrants Register
Presented By: Kim Weimer, Director of Finance
Approved By: _________________________
Dominique Romo, City Manager
Recommended Council Action:

Approve the Warrants Register as presented.

Background and Overview:

The warrants register presented to the City Council is a listing of all expenditures paid from April 23, 2026, through May 5, 2026.

Fiscal Impact:

There are reductions in various funds for payment of expenses.

CITY COUNCIL AGENDA ITEM NO. 3.2
SECTION 3: CONSENT CALENDAR

5/5/2026 12:04:54 PM Page 1 of 3
Check Report
Hughson By Check Number
Date Range: 04/23/2026 - 05/05/2026
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount Bank Code: Payable Bank-Payable Bank
01420 CALIFORNIA STATE DISBURSEMENT UNIT 04/24/2026 Regular 0.00 40.12 60780 INV0015764 Invoice 04/22/2026 INCOME WITHHOLDING FOR CHILD SUPP… 0.00 40.12 00016 ABS DIRECT INC 04/29/2026 Regular 0.00 1,964.15 60781 142795 Invoice 04/14/2026 BILL PRINTING- April 0.00 1,964.15 01603 Amazon Capital Services, Inc. 04/29/2026 Regular 0.00 955.70 60782 131H-P1XQ-HJGL Invoice 04/27/2026 Office Supplies- Eraser and Letter Openers 0.00 7.49 13HW-6CQP-LJCL Invoice 04/15/2026 Office Supplies- Coffee 0.00 21.78 1DTR-CYPY-QV7X Invoice 03/16/2026 sprayer and diesel cans 0.00 182.74 1JXV-3KGK-9K31 Invoice 04/28/2026 Office Supplies- Staple remover and faste… 0.00 15.41 1MYY-N3RT-TQC1 Invoice 03/16/2026 office supplies 0.00 127.12 1TWX-LF4D-64M3 Invoice 03/10/2026 stop paddles 0.00 122.97 1XQX-3DCV-KKCY Invoice 03/07/2026 charles back flow part 0.00 17.55 1YC9-9K7M-WTQJ Invoice 03/15/2026 stop paddles/ safety supplies 0.00 460.64 00822 BlueTriton Brands Inc 04/29/2026 Regular 0.00 257.68 60783 06D6703905050 Invoice 04/05/2026 Water for City Hall 0.00 123.54 26D0025664277 Invoice 04/21/2026 WWTP waters Blanket PO 0.00 134.14 01536 California Landscape Supply, Inc. 04/29/2026 Regular 0.00 211.33 60784 118047 Invoice 03/23/2026 concrete for 4th st 0.00 211.33 00258 CENTRAL SANITARY SUPPLY 04/29/2026 Regular 0.00 475.22 60785 10933523 Credit Memo 11/25/2025 RETURN- trashcans 0.00 -274.63 11488126 Invoice 03/27/2026 sanitary supplies 0.00 749.85 02046 Clayton K. Casey MD Inc. A Professional Medical Corp. 04/29/2026 Regular 0.00 214.00 60786 EM002759 Invoice 04/20/2026 Non DOT - Bustos - DOT - Luna, A. 0.00 214.00 00324 CODE PUBLISHING COMPANY 04/29/2026 Regular 0.00 564.00 60787 PG000045656 Invoice 03/09/2026 Building Code Ordinance Update 0.00 564.00 01538 Colonial Life 04/29/2026 Regular 0.00 190.98 60788 54059070401299 Invoice 04/01/2026 Colonial Life 0.00 190.98 00387 DEHART PLUMBING HEATING 04/29/2026 Regular 0.00 267.00 60789 150126401 Invoice 03/26/2026 senior center freezer repair 0.00 267.00 00462 EWING IRRIGATION PRODUCTS 04/29/2026 Regular 0.00 1,670.22 60790 29558119 Invoice 03/25/2026 Ewing Blanket PO 0.00 1,670.22 00464 EZ NETWORK SYSTEMS, INC. 04/29/2026 Regular 0.00 42.27 60791 47960 Invoice 03/11/2026 WWTP IT 0.00 42.27
00475 FGL ENVIRONMENTAL 04/29/2026 Regular 0.00 134.00 60792 634997A Invoice 04/22/2026 DW FGL Blanket PO 0.00 134.00 00498 FRANTZ WHOLESALE NURSERY 04/29/2026 Regular 0.00 566.13 60793 649624 Invoice 03/26/2026 landscaping supplies 0.00 550.49 650371 Invoice 03/30/2026 plats for varni corners 0.00 15.64 00528 GILTON SOLID WASTE MANAGE 04/29/2026 Regular 0.00 86,611.40 60794 March 2026 Invoice 04/27/2026 GARBAGE SERVICE- MARCH 0.00 86,611.40 01612 GreatAmerica Financial Svcs. 04/29/2026 Regular 0.00 424.39 60795 2984214 Invoice 04/27/2026 LEASE- Return 0.00 424.39

Check Report Date Range: 04/23/2026 - 05/05/2026
5/5/2026 12:04:54 PM Page 2 of 3
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 01794 HdL Coren & Cone 04/29/2026 Regular 0.00 1,585.58 60796 SIN062585 Invoice 04/28/2026 Contract Services Property Tax - 2nd QTR … 0.00 1,585.58 02107 Health Net of California, Inc. 04/29/2026 Regular 0.00 20,633.26 60797 INV0015783 Invoice 05/01/2026 Medical Services - MAY 0.00 20,633.26 00638 INDUSTRIAL ELECTRICAL CO 04/29/2026 Regular 0.00 7.47 60798 PI-090659CR Credit Memo 03/16/2026 Duplicate payment 0.00 -652.53 PI-091734 Invoice 04/21/2026 well 9 motor troubleshoot 0.00 660.00 02134 Laura Villa 04/29/2026 Regular 0.00 470.00 60799
INV0015779 Invoice 04/20/2026 Damage Deposit - Viila - Ice Shield was Re… 0.00 470.00 00762 MHK CONSTRUCTION 04/29/2026 Regular 0.00 14,485.60 60800 0346 Invoice 12/05/2025 Hughson Ave. Sidewalk Replacement Proj… 0.00 4,255.60 0424 Invoice 03/30/2026 downtown side walk project 0.00 9,718.50 0425 Invoice 04/22/2025 Hughson Ave. Sidewalk Replacement Proj.… 0.00 511.50 02097 REV Capital 04/29/2026 Regular 0.00 1,959.20 60801 320 Invoice 04/21/2026 Extra Help - PW 04.18.2026 0.00 1,959.20 01049 STANISLAUS COUNTY 04/29/2026 Regular 0.00 130,264.20 60802 INV0015777 Invoice 04/27/2026 County Public Facilities Fees - 1st QTR 2026 0.00 130,264.20 01709 The Lincoln National Life Insurance Company 04/29/2026 Regular 0.00 541.86 60803 4960000150 Invoice 05/01/2026 Life Insurance- MAY 0.00 541.86 01149 TURLOCK IRRIGATION DIST. 04/29/2026 Regular 0.00 33,210.72 60804 INV0015802 Invoice 04/28/2026 ELECTRIC 0.00 33,210.72
02078 UniFirst Corporation 04/29/2026 Regular 0.00 143.86 60805 2360239700 Invoice 04/06/2026 unifirst Blanket PO 0.00 20.11 2360239704 Invoice 04/06/2026 unifirst Blanket PO 0.00 77.11 2360239710 Invoice 04/06/2026 unifirst Blanket PO 0.00 46.64 01176 USA BLUE BOOK 04/29/2026 Regular 0.00 84.14 60806 INV00783909 Invoice 07/31/2025 USA Bluebook WW Blanket 0.00 84.14 01192 VISION SERVICE PLAN 04/29/2026 Regular 0.00 642.10 60807 825062886 Invoice 05/01/2026 MEDICAL INSURANCE WITHHELD- MAY 0.00 616.31 825062893 Invoice 05/01/2026 MEDICAL INSURANCE WITHHELD - MAY C… 0.00 25.79 01225 WILLDAN ENGINEERING 04/29/2026 Regular 0.00 2,670.00 60808 010-65763 Invoice 04/23/2026 User Fee Study and Development Impact … 0.00 2,670.00 02047 Yvette Trevino 04/29/2026 Regular 0.00 100.00 60809 INV0015778 Invoice 04/20/2026 Damage Deposit - Trevino 0.00 100.00 02135 Grant Management Associates 04/30/2026 Regular 0.00 1,600.00 60810 24133 Invoice 04/29/2026 Client Retainer 0.00 1,600.00
Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code Payable Bank Summary
Bank Drafts
EFT's
31 0
0 0
0 0.00

0.00 0.00

0.00 0.00
31 0.00
Payment
302,986.58

0.00 0.00

0.00 0.00
302,986.58
Payable
Count
47 0
0 0
0 47

Check Report Date Range: 04/23/2026 - 05/05/2026
5/5/2026 12:04:54 PM Page 3 of 3
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
31 0
0 0
0 0.00

0.00 0.00

0.00 0.00
31 0.00
302,986.58

0.00 0.00

0.00 0.00
302,986.58
47 0
0 0
0 47
Fund Name Period Amount
Fund Summary
999 POOLED CASH/CONSOLIDATED CASH 4/2026 302,986.58
302,986.58

Meeting Date: May 11, 2026
Subject: Approval of the Treasurer’s Report for March 2026 Enclosure: Treasurer Report – March 2026
Presented By: Kim Weimer, Director of Finance & Administrative Services Approved By: __________________________
City Manager
Recommendation:

Approve the Treasurer’s Report for the Month Ended of March 2026.

Background and Overview:

Treasurer’s Reports are an important and necessary document for cities and local agencies and are one of the simplest but most important financial controls. Treasurer’s Reports demonstrate strong stewardship of public funds, support clean audits, provide transparency to a close‑knit community, help Council understand the City’s financial position, and reduce risk in a lean‑staff environment.

The attached Treasurer’s Reportsummarizesthe City’s cash balances, investment holdings, and fund activity for the reporting period. Key elements include:
• Cash and Investment Balances: A consolidated view of all City funds held in bank accounts, LAIF, and other permitted investment vehicles. • Interest Earnings: Monthly interest accrued and posted to applicable funds. • Fund Balances: Beginning and ending balancesfor each fund, reflecting receipts and disbursements.
• Investment Compliance: A statement confirming that all investments comply with the City’s adopted Investment Policy and the California Government Code. • Cash‑Flow Sufficiency: Certification that the City has adequate liquidity to meet its financial obligations for the next six months.

CITY COUNCIL AGENDA ITEM NO. 3.3
SECTION 3: CONSENT CALENDAR

Thisreport providesthe City Council and the public with a transparentsnapshot ofthe City’s financial position and supports ongoing fiscal stewardship.

Discussion:

As of March 2026, the City of Hughson has a cash and investment balance total of $44,080,683 with $3,546,321 invested. All investment actions executed since the last report have been made in full compliance with the City of Hughson’s Investment Policy. The City of Hughson will meet its expenditure obligations for the next six months as required by California Government Code Section 53646 (b) (2) and (3) respectively.

The Treasurer Report for March 2026 reflects the most current representation of the City’s funds and investments and provides a necessary outlook for both past, and present investment and spending habits. While investments and funds differ from time to time, it is the goal of the City to maintain safety and stability with its funds, while additionally promoting prudence and growth.

Included with the Treasurer’s Report for March 2026 are supplementary graphs depicting the percentage of the City’s total funds, a breakdown of the Developer Impact Fees, and an additional line plot graph further demonstrating the Developer Impact Fees. This graph depicts the Developer Impact Fees’ actual balance for the past five years.

After review and evaluation of the report, City staff has researched funds with a significant deficit balance and submits the following detailed explanation for March 2026:
• The Transportation Capital Project Fund 420 currently reflects a negative balance of ($238,477). As the City continues to produce transportation projects, the transportation fund will likely continue to show a negative balance. City staff will continue to monitor and report the status of these reimbursements as the funds become available.
• The CDBG Street Project Fund 425 currently reflects a negative balance of ($533,402) reflecting a negative difference of $517,317 from the previous year. We have not yet received the budgeted reimbursement for the monies spent on the 2nd Street Sidewalk project of $572,411.
• The Park Development Impact Fund 453 currently reflects a negative balance of ($199,995), reflecting a negative difference of $1,600 from the previous year. We are expecting $182,536 to be reimbursed from the Parks Per Capita Grant. This grant is contributing to the Lebright Improvements, namely the Fiscal Impact:

As of March 2026, the City’s cash and investments total $44,080,683. This compares to a March 2025 balance of $41,731,203 and represents an increase of $2,349,429. There is no fiscal impact associated with receiving and filing this report. The Treasurer’s Report reflects financial activity already recorded in the City’s accounting system.

MONEY MARKET GENERAL REDEVELOPMENT
**
TOTAL
Bank Statement Totals $ 40,348,248 $ 575,547 $ - $ 40,923,796 Adjustment $ 311 $ 226
Outstanding Deposits + $ 62,483 $ 87,040 $ - $ 149,523
Outstanding Checks/transfers - $ (5,737) $ (533,219) $ - $ (538,956) ADJUSTED TOTAL $ 40,405,305 $ 129,594 $ - $ 40,534,362
Investments: Value @ purchase price $ 1,216,044
Investments: Change in Market Value & interest received $ 267 Multi-Bank WWTP Value at purchase price $ 1,743,094
Multi-Bank WWTP Change in Market Value & interest received $ 489,690 Investments: L.A.I.F. $ 48,535 $ 48,690 $ 97,225
General Ledger Adjustments
Wages Payable
TOTAL CASH & INVESTMENTS $ 44,080,683
Books - All Funds March-25 March-26 Difference % of Variance GENERAL FUND $ 5,103,095 $ 5,542,407 $ 439,312 8.61%
GENERAL FUND CONTINGENCY RESERVE $ 1,369,188 $ 1,451,123 $ 81,936 5.98% FIXED ASSESTS $ 12,426 $ 12,426 $ - n/a
SEWER $ 4,018,334 $ 4,145,361 $ 127,027 3.16%
SEWER FIXED ASSET REPLACEMENT $ 4,775,247 $ 4,451,747 $ (323,500) -6.77% SEWER DEV IMPACT FEE $ 1,796,500 $ 2,675,202 $ 878,702 48.91% WWTP Expansion 2008 $ 443,637 $ 523,425 $ 79,788 17.98% WATER $ 4,458,969 $ 4,519,352 $ 60,383 1.35%
Water TCP123 $ 5,567,811 $ 5,565,706 $ (2,105) -0.04%
WATER DEV IMPACT FEE $ 1,572,942 $ 2,238,700 $ 665,758 42.33% Water Fixed Asset Replacement $ 1,762,262 $ 1,794,818 $ 32,556 1.85% COMMUNITY/SENIOR CENTER $ 20,509 $ 20,925 $ 417 2.03%
U.S.F. Resource Com. Center $ (25,146) $ (43,495) $ (18,349) -72.97% Garbage/Refuse $ 132,124 $ 223,892 $ 91,768 69.46%
GAS TAX 2103 $ 201,480 $ 202,406 $ 926 0.46%
GAS TAX 2105 $ 51,008 $ 67,814 $ 16,807 32.95%
GAS TAX 2106 $ (62,015) $ (62,641) $ (626) -1.01%
GAS TAX 2107 $ 94,749 $ 112,475 $ 17,726 18.71%
GAS TAX 2107.5 $ 6,922 $ 7,922 $ 1,000 14.45%
Measure L SALES TAX-ROADS $ 1,355,418 $ 1,228,809 $ (126,609) -9.34% SB-1 ROADS MAINTENANCE REHABILITATION $ 752,940 $ 964,547 $ 211,607 28.10% LANDSCAPE LIGHTING DISTRICT $ (1,146) $ (1,146) $ - 0.00% BENEFIT ASSESMENT DISTRICT $ (127) $ (127) $ - 0.00%
COMMUNITY FACILITIES DISTRICT $ 7,255 $ 7,255 $ - 0.00% COMMUNITY ENHANCEMENT DEV IMPACT FEE $ 500,438 $ 645,422 $ 144,983 28.97% TRENCH CUT FUND $ 222,094 $ 222,094 $ - 0.00%
IT RESERVE $ 54,937 $ 64,944 $ 10,006 18.21%
SELF-INSURANCE $ 73,303 $ 73,303 $ - 0.00%
DIABILITY ACCESS AND EDUCATION $ 7,539 $ 9,456 $ 1,917 25.43% CLAIM ON CASH-CLFRF/ARPA $ 524,610 $ 315,645 $ (208,965) -39.83% AB109 PUBLIC SAFETY $ 35,722 $ 35,722 $ - 0.00%
ASSET FORFEITURE $ 1,660 $ 1,660 $ - 0.00%
VEHICLE ABATEMENT $ 66,077 $ 2,512 $ (63,565) -96.20%
SUPPLEMENTAL LAW ENFORCEMENT SERVICE $ 675,556 $ 696,259 $ 20,703 3.06% FEDERAL FUNDED OFFICER FUND $ 6,620 $ 6,620 $ - 0.00%
98-EDBG-605 BUSINESS ASSISTANCE $ 93,596 $ 93,596 $ - 0.00% 96-EDBG-438 Grant $ 403 $ 403 $ - 0.00%
94-STBG-799 HOUSING REHAB $ 232,788 $ 233,118 $ 330 0.14% HOME Program Grant (FTHB) $ 104,077 $ 174,077 $ 70,000 67.26% 96-STBG-1013 Grant $ 211,462 $ 211,762 $ 300 0.14%
CALHOME REHAB $ 117,910 $ 117,910 $ - 0.00%
LOCAL TRANSPORTATION $ 51,671 $ 51,671 $ - 0.00%
LOCAL TRANSPORTATION NON MOTORIZED $ 13,219 $ 13,219 $ - 0.00% TRANSPORTATION STREET PROJECTS $ (238,477) $ (238,477) $ - 0.00% PUBLIC WORKS STREET PROJECTS-CDBG $ (16,029) $ (533,402) $ (517,374) -3227.77% STORM DRAIN DEV IMPACT FEE $ 1,010,378 $ 1,242,748 $ 232,369 23.00% PUBLIC FACILITY DEV IMPACT FEE $ 2,150,565 $ 2,362,511 $ 211,946 9.86% PUBLIC FACILITY STREET DEV IMPACT FEE $ 872,723 $ 1,040,864 $ 168,141 19.27% PARK DEV IMPACT FEE $ (198,395) $ (199,995) $ (1,600) -0.81% PARKLAND IN LIEU $ 647,793 $ 646,718 $ (1,075) -0.17%
WATER/SEWER DEPOSIT $ 113,649 $ 125,344 $ 11,695 10.29% RDA SUCCESSOR AGENCY $ 411,745 $ 409,071 $ (2,674) -0.65% RDA FIXED ASSETS $ - $ - $ - n/a
LANDSCAPE LIGHTING DISTRICT $ (12,115) $ (18,934) $ (6,819) n/a LANDSCAPE LIGHTING DISTRICT $ 50,433 $ 47,649 $ (2,783) n/a LANDSCAPE LIGHTING DISTRICT $ 2,811 $ (9,680) $ (12,491) n/a LANDSCAPE LIGHTING DISTRICT $ 54,978 $ 60,244 $ 5,266 n/a LANDSCAPE LIGHTING DISTRICT $ (17,522) $ (9,964) $ 7,558 n/a LANDSCAPE LIGHTING DISTRICT $ 1,547 $ (823) $ (2,370) n/a LANDSCAPE LIGHTING DISTRICT $ 48,506 $ 55,858 $ 7,352 n/a LANDSCAPE LIGHTING DISTRICT $ (117,021) $ (133,213) $ (16,192) n/a LANDSCAPE LIGHTING DISTRICT $ (77,906) $ (88,281) $ (10,375) n/a LANDSCAPE LIGHTING DISTRICT $ 22,020 $ 20,839 $ (1,181) n/a LANDSCAPE LIGHTING DISTRICT $ 51,350 $ 52,412 $ 1,063 n/a LANDSCAPE LIGHTING DISTRICT $ 14,394 $ 9,220 $ (5,174) n/a LANDSCAPE LIGHTING DISTRICT $ (8,270) $ (10,142) $ (1,872) n/a LANDSCAPE LIGHTING DISTRICT $ 49,760 $ 57,551 $ 7,791 n/a LANDSCAPE LIGHTING DISTRICT $ 22,821 $ 29,564 $ 6,744 n/a BENEFIT ASSESMENT DISTRICT $ 62,297 $ 56,349 $ (5,947) n/a BENEFIT ASSESMENT DISTRICT $ 8,585 $ 5,732 $ (2,854) n/a BENEFIT ASSESMENT DISTRICT $ 168,271 $ 176,117 $ 7,845 n/a BENEFIT ASSESMENT DISTRICT $ (5,662) $ (6,690) $ (1,028) n/a BENEFIT ASSESMENT DISTRICT $ 75,758 $ 83,774 $ 8,017 n/a BENEFIT ASSESMENT DISTRICT $ 67,278 $ 79,667 $ 12,390 n/a BENEFIT ASSESMENT DISTRICT $ 24,448 $ 32,582 $ 8,134 n/a COMMUNITY FACILITIES DISTRICT $ 67,119 $ 87,371 $ 20,252 n/a COMMUNITY FACILITIES DISTRICT $ 15,309 $ 29,751 $ 14,442 Developer Impact Fees *** $ 7,705,151 $ 10,005,451 $ 2,300,300 TOTAL ALL FUNDS: $ 41,731,203 $ 44,080,633 $ 2,349,429
Break Down of Impact Fees ***
SEWER DEV IMPACT FEE $ 1,796,500 $ 2,675,202 $ 878,702 48.91% WATER DEV IMPACT FEE $ 1,572,942 $ 2,238,700 $ 665,758 42.33% COMMUNITY ENHANCEMENT DEV IMPACT FEE $ 500,438 $ 645,422 $ 144,983 28.97% STORM DRAIN DEV IMPACT FEE $ 1,010,378 $ 1,242,748 $ 232,369 23.00% PUBLIC FACILITY DEV IMPACT FEE $ 2,150,565 $ 2,362,511 $ 211,946 9.86% PUBLIC FACILITY STREET DEV IMPACT FEE $ 872,723 $ 1,040,864 $ 168,141 19.27% PARK DEV IMPACT FEE $ (198,395) $ (199,995) $ (1,600) -0.81% Break Down of Impact Fees *** $ 7,705,151 $ 10,005,451 $ 2,300,300 29.85% Reviewed By: Sopheap Dong-Carreon Date
City of Hughson
Treasurer's Report
March 2026
I hereby certify that the investment activity for
this reporting period conforms with the
Investment Policy adopted by the Hughson City
Council, and the California Government Code
Section 53601. I also certify that there are
adequate funds available to meet the City of
Hughson's budgeted and actual expenditures
for the next six months.
05/06/2026

Treasurer's Report - Charts and Graphs
March 2026
Storm Drain
Community Enhancement
Public Facilities Development
Public Facilities Development-Streets
Parks Development Impact Fees
Sewer Developer Impact Fees
Water Developer Impact Fees
$2,675,202
$2,238,700
$645,422
$1,242,748
$2,362,511
$1,040,864
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
March 2026 Breakdown of Developer Impact Fees
220 SEWER DEV IMPACT FEE
250 WATER DEV IMPACT FEE
370 COMMUNITY ENHANCEMENT DEV IMPACT FEE
450 STORM DRAIN DEV IMPACT FEE
451 PUBLIC FACILITY DEV IMPACT FEE
452 PUBLIC FACILITY STREET DEV IMPACT FEE
2022 2023 2024 2025 2026
Storm Drain 774,746.07 862,441.11 769,720.28 1,010,378.36 1,242,747.73 Community Enhancement 243,785.71 280,679.72 354,183.26 500,438.29 645,421.71 Public Facilities Development 1,681,447.93 1,767,087.02 1,894,806.16 2,150,564.86 2,362,511.32 Public Facilities Development-Streets 462,716.92 601,709.51 689,880.01 872,722.51 1,040,863.51 Parks Development Impact Fees 780,087.97 581,224.01 (73,498.38) (198,395.30) (199,995.30) Sewer Developer Impact Fees 8,613.12 509,037.49 911,889.34 1,796,499.99 2,675,201.64 Water Developer Impact Fees 380,587.32 556,462.45 896,947.45 1,572,942.12 2,238,700.12 -500,000.00

0.00 500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
5 Year Trend for Developer Impact Fees for the Month of March GENERAL FUND, 15.87%
SEWER, 9.40%

SEWER FIXED ASSET REPLACEMENT,

10.10% STORM DRAIN DEC IMPACT FEE,

2.82%
PARK DEV IMPACT FEE, -0.45%
WATER , 10.25%
WATER TCP123, 12.63%
CLAIM ON CASH-CLFRF/ARPA, 0.72%

PUBLIC FACILITY DEV IMPACT FEE,

5.36%
Measure L SALES TAX-ROADS, 2.79%
Percentage of Fund - March 2026

GENERAL FUND
SEWER

SEWER FIXED ASSET REPLACEMENT

STORM DRAIN DEC IMPACT FEE

PARK DEV IMPACT FEE
WATER
WATER TCP123

CLAIM ON CASH-CLFRF/ARPA

PUBLIC FACILITY DEV IMPACT FEE
Measure L SALES TAX-ROADS
Note:

Data displayed represents
largest percentage of City
funds. All other funds
represent less than 20%
of the City's total Cash
and Investments.

Meeting Date: May 11, 2026
Subject: Adopt an Ordinance Amending Municipal Code Section 10.40.020 Relating to Exceptions to Speed Limits
Enclosure: 2023 Engineering and Traffic Survey & Documents Presented By: Carla C. Jauregui, Community Development Director Approved By: ____________________________
City Manager
Recommendation:

Waive the Second Reading and Adopt Ordinance No. 2026-01, Amending Municipal Code Section 10.40.020 Relating to Exceptions to Speed Limits.

Background and Overview:

At the April 27, 2026 meeting, the City Council reviewed the Ordinance, confirming that the directions provided to staff at the April 13 meeting were implemented. Council then approved the Introduction of the Ordinance and waived the first reading of it. Once the second reading and adoption of the Ordinance is approved, the Ordinance will become effective after 30 days.

Fiscal Impact:

Costs associated with this action require publication and updating of the Hughson Municipal Code costs estimated at $750.00. Gas Tax funding to replace regulatory signs including speed limit signs will be included in the FY 2026-27 Final Budget.

CITY COUNCIL AGENDA ITEM NO. 3.4
SECTION 3.4: CONSENT CALENDAR

1861004-3

CITY OF HUGHSON

CITY COUNCIL
ORDINANCE NO. 2026-01

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUGHSON AMENDING MUNICIPAL CODE SECTION 10.40.020 RELATING TO EXCEPTIONS TO SPEED LIMITS WHEREAS, the City Council of the City of Hughson has established and desires to establish maximum speed limits for certain streets located within the City of Hughson; WHEREAS, pursuant to California Vehicle Code Section 21, the State of California has preempted the field of traffic regulation, and local authorities may establish or alter speed limits only when expressly authorized by statute; and
WHEREAS, California Vehicle Code Section 22357 authorizes a local authority to declare a prima facie speed limit higher than 25 miles per hour on certain streets, other than state highways, if such speed limit is determined to be reasonable and safe based on an engineering and traffic survey; and
WHEREAS, the City of Hughson, through its retained traffic engineering consultant, MPB Design, Inc., conducted a valid Engineering and Traffic Survey dated October 8, 2024, under the supervision of a licensed Traffic Engineer, Mike Becker, and WHEREAS, based on data, the Traffic Survey recommended the speed limit increases as appropriate, reasonable, and safe to facilitate the orderly movement of traffic; and WHEREAS, these speed limit increases will become effective upon erection of signs giving notice thereof in accordance with section 22357; and

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF HUGHSON DOES ORDAIN AS FOLLOWS:

Section 1. Findings. The Recitals set forth above are hereby incorporated into this Ordinance as findings of the City Council of the City of Hughson and shall be considered an integral part of this Ordinance.

Section 2. Section 10.40.020 of the Hughson Municipal Code is amended to read in full as follows:

10.40.020 Exceptions. It is determined upon the basis of an engineering and traffic survey that a prima facie speed limit greater than twenty-five miles per hour (mph) is necessary to facilitate the orderly, safe and reasonable movement of vehicle traffic upon the streets or parts of streets within the city designated in this section; and it is declared that the prima facie speed limit for each of those

1861004-3
streets or parts of streets shall be as set forth in this section. The prima facie speed limits established by this section shall be effective when appropriate signs giving notice thereof are erected upon the street.

Name of Street or Part Declared Prima Facie
of Street Speed Limit
A. Santa Fe Avenue, northbound and
southbound, between Hatch Road and Los Alamos Drive 50 mph B. Sante Fe Avenue, northbound and southbound,
between Los Alamos Drive and Whitmore Avenue 50 mph
C. Santa Fe Avenue, northbound and southbound,
between Whitmore Avenue and 7th Street 50 mph
D. Hatch Road, eastbound and westbound,
between the westerly city limits and the easterly city limits 55 mph E. Whitmore Avenue, eastbound and westbound,
between Euclid Avenue and Tully Road 30 mph; 25 in school zones when children
are present
F. Tully Road, northbound and southbound,
from Fox Road to Hatch Road 25 mph
Section 3. This ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the city or any officer or employee thereof a mandatory duty of care toward persons and property within or without the city so as to provide a basis of civil liability for damages, except as otherwise imposed by law.

Section 4. If any provision of this ordinance or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The city council hereby declares that it would have adopted this ordinance irrespective of the validity of any particular portion thereof.

Section 5. This ordinance shall become effective thirty (30) days after its final passage.

1861004-3
Section 6. Within fifteen (15) days after its final passage, the City Clerk shall cause a summary of this ordinance to be published in accordance with Section 36933 of the Government Code.

The foregoing ordinance was introduced, and the title thereof read at the regular meeting of the City Council of the City of Hughson held on, April 13, 2026, and by a vote of the council members present, further reading was waived.

On motion of councilperson , seconded by councilperson
, the foregoing ordinance was duly passed by the City Council of the Hughson City Council at a regular meeting thereof held on May 11, 2026, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

GEORGE CARR, Mayor
ATTEST:

DOMINIQUE ROMO, City Manager

Meeting Date: May 11, 2026
Subject: Approving the Fiscal Year 2024/2025 and 2025/2026 Community Development Block Grant (CDBG) Funding Agreements with
Stanislaus County
Enclosures: FY 2024-2025 CDBG Allocation Agreement
FY 2025-2026 CDBG Allocation Agreement
Presented By: Carla C. Jauregui, Community Development Director Approved By: ___________________________
City Manager
Staff Recommendation:

Adopt Resolution No. 2026-09, Approving the Fiscal Year 2024/2025 and Fiscal Year 2025/2026 Community Development Block Grant (CDBG) Funding Agreements with Stanislaus County and authorize the City Manager to execute the agreements.

Background and Discussion:

The City of Hughson, in partnership with Stanislaus County and the cities of Ceres, Newman, Oakdale, Patterson, Riverbank, and Waterford, participates in the Stanislaus Urban County for the purpose of receiving U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funding. Stanislaus County serves as the lead entity responsible for the administration and implementation of CDBG funding on behalf of all member jurisdictions.

As part of this partnership, Stanislaus County prepares and submits required planning documents to HUD, including the Consolidated Plan and Annual Action Plans (AAPs), which identify community needs and allocate funding to eligible activities.

The City was allocated CDBG funding for Fiscal Years 2024 and 2025 through the approved Annual Action Plans. These funds are intended to support eligible activities that benefit lowand moderate-income residents and address community development needs, including public services, public infrastructure improvements, and housing-related activities.

CITY COUNCIL AGENDA ITEM NO. 3.5
SECTION 3: CONSENT CALENDAR

The execution of the FY 2024 and FY 2025 funding agreements was delayed due to extended processing and approval timelines at the U.S. Department of Housing and Urban Development (HUD). As a result, both funding agreements are being presented together for Council consideration at this time.

The agreements outline the terms and conditions for the use of CDBG funds, including compliance with federal regulations, eligible use requirements, reporting obligations, and expenditure deadlines.

CDBG
For Fiscal Year 2024, the City of Hughson was allocated approximately $160,000.75 in CDBG funding.

For Fiscal Year 2025, the City of Hughson was allocated approximately $154,744.00 in CDBG funding.

The City intends to utilize these funds for the following activities:
• FY 2024: Second Street Improvement Project
• FY 2025: Second Street Improvement Project
All CDBG-funded activities must meet one of the national objectives established by HUD, which include:

1. Benefit to low- and moderate-income persons

2. Prevention or elimination of slums or blight

3. Meeting urgent community development needs
PUBLIC PARTICIPATION:

The projects and programs funded through CDBG were included in the Stanislaus Urban County Annual Action Plans, which were subject to public review and comment in accordance with HUD’s Citizen Participation requirements.

Fiscal Impact:

The City will receive approximately $160,000.75 in FY 2024 CDBG funds and $154,744.00 in FY 2025 CDBG funds. These funds are federal pass-through funds administered by Stanislaus County and will be incorporated into the City’s budget for eligible activities.

There is no impact to the City’s General Fund associated with acceptance of these funds.

CITY OF HUGHSON

CITY COUNCIL
RESOLUTION NO. 2026-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUGHSON APPROVING THE FISCAL YEAR 2024/2025 AND FISCAL YEAR 2025/2026 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING AGREEMENTS WITH STANISLAUS COUNTY AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENTS
WHEREAS, the City of Hughson participates as a member jurisdiction in the Stanislaus Urban County Consortium along with Stanislaus County and the cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, and Waterford for the purpose of receiving Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, Stanislaus County serves as the lead entity responsible for administration and implementation of the CDBG Program on behalf of the participating jurisdictions; and WHEREAS, Stanislaus County prepares and submits required planning documents to HUD, including the Consolidated Plan and Annual Action Plans, which identify eligible projects and allocate funding to participating jurisdictions; and
WHEREAS, the City of Hughson has been allocated approximately One Hundred Sixty Thousand Dollars and Seventy-Five Cents ($160,000.75) in Fiscal Year 2024 CDBG funding and approximately One Hundred Fifty-Four Thousand Seven Hundred Forty-Four Dollars ($154,744.00) in Fiscal Year 2025 CDBG funding; and
WHEREAS, the City intends to utilize the FY 2024 and FY 2025 CDBG allocations for the Second Street Improvement Project; and
WHEREAS, all CDBG-funded activities must meet one of HUD’s national objectives, including benefiting low- and moderate-income persons, preventing or eliminating slums or blight, or meeting urgent community development needs; and WHEREAS, the execution of the FY 2024 and FY 2025 funding agreements was delayed due to extended processing and approval timelines at HUD, resulting in both agreements being presented concurrently for City Council consideration; and WHEREAS, the proposed agreements establish the terms and conditions governing the use of CDBG funds, including compliance with applicable federal regulations, reporting requirements, and expenditure deadlines; and

WHEREAS, the projects and programs funded through the CDBG Program were included in the Stanislaus Urban County Annual Action Plans and were subject to public review and comment in accordance with HUD Citizen Participation requirements; and WHEREAS, acceptance of these federal pass-through funds will not impact the City’s General Fund and the funds will be incorporated into the City’s budget for eligible activities.

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

1. The City Council hereby approves the Fiscal Year 2024/2025 and Fiscal Year 2025/2026 Community Development Block Grant (CDBG) Funding Agreements with Stanislaus County.

2. The City Council hereby authorizes the City Manager, or designee, to execute the agreements and any related documents necessary to implement the agreements and administer the CDBG-funded activities.

PASSED AND ADOPTED by the City Council of the City of Hughson at its regularly scheduled meeting on this 11th day of May 2026, by the following roll call vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

APPROVED:

_____________________
GEORGE CARR, Mayor
ATTEST:
_____________________________
DOMINIQUE ROMO, City Manager

Meeting Date: May 11, 2026
Subject: Adopting Resolution No. 2026-10, in Concurrence with the Stanislaus Urban County and Stanislaus HOME Consortium Fiscal Year (FY) 2026-2027 Annual Action Plan and Support of Submission to the U.S. Department of Housing and Urban Development (HUD) Presented By: Carla C. Jauregui, Community Development Director Approved By: __________________________________
City Manager
Recommendation:

Adopt Resolution No. 2026-10, in concurrence with Stanislaus Urban County and the Stanislaus HOME Consortium Fiscal Year (FY) 2026-2027 Annual Action Plan and support of submission to the HUD.

Background and Overview:

The City in partnership with Stanislaus County that together with the cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, and Waterford form the Stanislaus Urban County for purposes of receiving U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program (CDBG) and Emergency Solutions Grants (ESG) Program funding. Stanislaus County is the lead entity with responsibility for implementing and administering CDBG and ESG funding.

Stanislaus County, in partnership with the cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, and Waterford form the Stanislaus Urban County for purposes of receiving U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program (CDBG) and Emergency Solutions Grants (ESG) Program funding. The Stanislaus Urban County along with the City of Turlock form the Stanislaus HOME Consortium for the purpose of receiving HUD HOME Investment Partnership (HOME) funding. Stanislaus County, as the lead entity for the Stanislaus Urban County and Stanislaus HOME Consortium, is required to submit a Consolidated Plan (Con Plan) every 5 years and an AAP every year. The City of Turlock, as a member of the HOME Consortium, must approve and submit a separate AAP to HUD for its Community Development Block CITY COUNCIL AGENDA ITEM NO. 3.6
SECTION 3: CONSENT CALENDAR

CDBG funding. Approval of an AAP is necessary to remain in compliance with program regulations and retain HUD funding.

The current Con Plan was adopted on May 13, 2025, by the Board of Supervisors, and covers Fiscal Years 2025-2026 to 2029-2030. The Con Plan is a strategic planning document that helps HUD Entitlement jurisdictions assess their affordable housing and community development needs, as well as market conditions. The plan serves as a framework to identify priorities and align funding from HUD’s Community Planning and Development (CPD) formula block grant programs, such as the CDBG, HOME, and ESG Programs.

The draft AAP is the second AAP of the adopted Con Plan and describes projects and activities, with assigned goals and accomplishments, that will be undertaken during Fiscal Year 2026-2027. The final funding allocation amounts are pending release by HUD before the end of April.

In accordance with Federal regulations, the County’s Citizen Participation Plan (CPP) for HUD funding requires a minimum 30-day public review period prior to Board of Supervisors consideration to approve the AAP. The draft AAP will be made available to the public and a notice of the public hearing and document availability will be published in The Modesto Bee to provide for the required 30-day public review period. The draft AAP will also be made available to the public online at: http://www.stancounty.com/planning/cdbg/plans-andreports.shtm.

The Annual Action Plan covers CDBG, ESG and HOME projects and funded programs for the upcoming fiscal year. As of the date of this staff report the final HUD allocations for the CDBG, ESG and HOME programs had not been released, once released the funding allocations for all members of the Urban County and Consortium will be adjusted proportionally. The estimated funding allocations in the draft AAP are based on the Fiscal Year 2025-2026 HUD funding and are only used as projections per HUD guidance.

CDBG
For Fiscal Year 2026-2027, it is anticipated that the City of Hughson will be allocated approximately $113,331.69 under the Community Development Block Grant (CDBG) Program. The goals of the CDBG program as established under the federal CDBG programs guidelines are as follows: 1) to provide decent housing; 2) to provide a suitable living environment; and 3) to expand economic opportunities.

The City of Hughson CDBG allocation for FY 2026 -2027 will be utilized for the 7th Street Improvement Project.

HOME
For Fiscal Year 2026-2027, it is anticipated that the City of Hughson will be allocated approximately $82,887.59 under the Home Investment Partnership (HOME) Program (see attached allocation chart). The goals of the Consortium as established under the federal HOME program guidelinesisto further affordable housing activities benefiting low-income households. The City’s HOME funds must be committed to an approved project within six (6) months of July 1, unless the deadline is extended by the County. An approved project is one that has been included in a HUD-approved Annual Action Plan, authorized by the County, and has completed the required environmental review process. If the City does not have an approved project within this timeframe, the funds will be made available to all Consortium members through a County-administered Request for Proposals (RFP) process.

PUBLIC PARTICIPATION
The Stanislaus County Planning and Community Development Department, as the Consortium administrator, has the lead role in the preparation of the Annual Action Plan, which includes the public participation requirement under HUD guidelines.

A series of public meetings were held in each of the Urban County and Consortium member’s jurisdiction. For the City of [City Name], the community meeting on the Annual Action Plan (AAP) and Consolidated Plan was held on April 27, 2026], at 5:15pm at the City Hall Council Chambers and via Zoom.

In addition, the Draft Annual Action Plan for Fiscal Years 2026-2027 has been available for public review in the Stanislaus County Planning and Community Development Department, as well as various locations throughout the County, since April 8, 2026. To date, the city has not received any verbal or written comments regarding the Annual Action Plan.

FISCAL IMPACT:

The City will receive approximately $113,331.69 in CDBG funds and $82,887.59 in HOME funds from the Stanislaus Urban County Consortium funds, which will be included in the Fiscal Year (FY) 2025-2026 City Budget.

CITY OF HUGHSON

CITY COUNCIL
RESOLUTION NO. 2026-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUGHSON OF CONCURRENCE AND SUPPORT OF THE ANNUAL ACTION PLAN (AAP) FOR FISCAL YEAR (FY) 2026-2027 PREPARED

FOR THE STANISLAUS URBAN COUNTY AND STANISLAUS HOME CONSORTIUM WHEREAS, the Stanislaus Urban County is a recognized U.S. Department of Housing and Urban Development (HUD) Entitlement jurisdiction that is comprised of the Cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, Waterford and the unincorporated areas of Stanislaus County that is eligible to receive Community Development Block Grant (CDBG) funds and Emergency Solutions Grants (ESG) funds for FY 2026-2027; and WHEREAS, the Stanislaus HOME Consortium which includes the Stanislaus Urban County and the City of Turlock and the unincorporated areas of Stanislaus County have received Home Investment Partnership (HOME) funds from the U.S. Department of Housing and Urban Development (HUD) for FY 2026-2027; and
WHEREAS, An Annual Action Plan is required by HUD to remain in compliance for federal funding; and
WHEREAS, the City as a member of the Stanislaus Urban County and the HOME Consortium is required to assist the County in the Consolidated Plan and Annual Action Plan planning process to set community priorities, objectives and proposed projects; and WHEREAS, the Draft Annual Action Plan were made available for public review period for the minimum 30 days requirement to allow the public the opportunity to review and provide comments prior to the public hearing by the Stanislaus County Board of Supervisors on May 12, 2026; and
WHEREAS, the City hosted a Community Meeting on April 27, 2026 in order to receive comments from the public on the proposed Annual Action Plan.

NOW, THEREFORE BE IT RESOLVED AND ORDERED, by the City Council of the City of Hughson as follows:

The City Council hereby adopts a resolution of concurrence and support of the Stanislaus Urban County and the Stanislaus HOME Consortium to prepare the Consolidated Plan and the AAP for Fiscal Year 2026-2027.

PASSED AND ADOPTED by the City Council of the City of Hughson at its regularly scheduled meeting on this 11th day of May 2026 by the following roll call vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

APPROVED:

_____________________
GEORGE CARR, Mayor
ATTEST:
______________________________
DOMINIQUE ROMO, City Manager

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Meeting Date: May 11, 2026
Subject: Code of Conduct Ordinance for Elected Officials Enclosures: Attachment A: Ordinance No. 2026-02
Attachment B: Acknowledgement Form (Exhibit A to Ordinance) Presented By: Andy Pinasco, City Attorney
Approved By:
____________________________
City Manager
Recommendation:

Introduce and Waive the First Reading of Ordinance No. 2026-02, adding Chapter 2.05 to the HMC – The Code of Conduct for Elected Officials.

Background and Overview:

This item was brought to the City Council at its April 27th meeting for discussion and consideration of potential modifications and updates. Following that discussion, the Council directed staff to proceed with moving the ordinance forward for adoption. This meeting constitutes the first reading of the Ordinance. The second reading and adoption are scheduled for the May 26th Council meeting. Once adopted, the Ordinance will become effective 30 days after adoption, consistent with standard municipal procedures and state law.

Discussion:

I. The Existing Code of Conduct: Resolution No. 04-19 (2004) The City Clerk has provided a copy of an existing City of Hughson Code of Conduct for Elected Officials, adopted by the City Council on February 9, 2004, as Resolution No. 04-19 (the "2004 Code of Conduct"). This document is a policy-based code adopted by resolution and is not codified in the Hughson Municipal Code.

The 2004 Code of Conduct is a substantive document whose contents include: an overview of roles and responsibilities for the Mayor, Vice Mayor, Council members, Meeting Chair, and former Council members; policies and protocols related to conduct at meetings; standards for Council conduct with one another, City staff, the public, other public agencies, Commissions, and the media; a Sanctions section addressing censure, loss of committee assignments, and CITY OF HUGHSON AGENDA ITEM NO. 4.1
SECTION 4: UNFINISHED BUSINESS

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travel restrictions; a Principles of Proper Conduct statement and Checklist for Monitoring Conduct; and a Glossary of Terms.

While the 2004 Code of Conduct reflects sound aspirational principles, and a number of its substantive provisions are carried forward in refined form in the proposed ordinance, it has four significant limitations from a governance and legal standpoint:

Adopted by Resolution, Not Ordinance. A resolution requires only a majority vote at a single meeting to adopt, amend, or repeal. A code of conduct codified as a municipal ordinance is more stable, more visible in the official code, and requires a higher procedural threshold to alter, providing a stronger and more durable governance foundation.

Lacks Structured Complaint and Review Procedures. The 2004 Code's Sanctions section describes a role for the Mayor in initiating action but does not establish a structured complaint intake process, notice requirements, respondent rights, City Attorney screening, or closed session procedures. These procedural gaps create legal vulnerability when the code is invoked.

Enforcement Measures Are Legally Imprecise. The 2004 Code references "loss of seniority," "restricted official travel," and "other sanctions as deemed appropriate by Council." These terms are undefined, and some of the implied authority is legally uncertain under current California law for a general law city. The proposed ordinance replaces this language with precisely defined measures tied to the City's actual lawful authority.

Does Not Address Harassment, Social Media, or Modern Governance Concerns. The 2004 Code predates the FEHA training requirements applicable to local elected officials (AB 2053, 2014; SB 1343, 2018), the development of social media as a primary channel of public communication, and the controlling Supreme Court authority on official social media accounts (Lindke v. Freed, 601 U.S. 187 (2024)).

Staff Recommendation on the 2004 Code: Staff recommends that the proposed ordinance, upon adoption, expressly supersede Resolution No. 04-19 in its entirety as to Council member conduct. Proposed Section 3 of the ordinance and Section 2.05.010(e) of the proposed Chapter contain the operative supersession language. The 2004 Code's aspirational principles are substantively preserved and improved upon in the proposed ordinance; the proposed ordinance is a comprehensive replacement, not merely an amendment.

II. Key Substantive Provisions of the 2004 Code Carried Forward The key substantive commitments of the 2004 Code are carried forward in refined, legally grounded form in the proposed Chapter 2.05:

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2004 Code Subject Proposed Ordinance Counterpart
Council conduct with one another (civility,
decorum)
§§ 2.05.040(b), (c) - Standards of Conduct
Council conduct with City staff (professional
treatment, no interference)
§§ 2.05.040(b), (h); § 2.05.050 (harassment
prohibition)
Council conduct with the public (meeting
decorum, unofficial settings)
§§ 2.05.040(b), (c); § 2.05.130 - Rules of
Decorum
Council conduct with other public agencies
and correspondence
§§ 2.05.040(f), (g)
Council conduct with Commissions §§ 2.05.040(c), (g)
Council conduct with the media § 2.05.060 - Social Media and Electronic Communications (updated)
Sanctions (censure, committee assignments,
travel)
§ 2.05.090 - Governance-Based Measures; §

2.05.110 - Formal Censure
Complaint initiation (Mayor's role) §§ 2.05.070, 2.05.080 - Structured procedures replacing informal Mayorinitiated process
III. Why This Ordinance Is Being Proposed Now
The City Council has directed staff to develop a revised and codified code of conduct in connection with a governance concern involving Council member conduct. The proposed ordinance replaces the 2004 Code of Conduct with a legally updated, procedurally complete, and HMC-codified framework. It is designed as a forward-looking governance and riskmanagement tool. It is not intended to, and may not lawfully, impose retroactive consequences for conduct that fully predates its effective date. The Council should present and apply this ordinance as a prospective governance framework, not as a targeted response to any specific prior incident.

This distinction is legally significant. A court reviewing a challenge to the ordinance's application will examine whether it was applied in a targeted or retaliatory manner against a specific individual for prior protected conduct. A consistent, prospective, and documented application of the ordinance is the strongest protection against such a challenge.

LEGAL FRAMEWORK AND AUTHORITY:

IV. What Enforcement Tools Are Available Under California Law? This is the most critical legal issue the Council must understand before adopting a code of conduct. Hughson is a general law city. Under California law, a general law city's authority to

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discipline, suspend, remove, or compel action by an elected official is strictly limited. The following framework governs:

Available Measures
Formal Censure. A city council may formally censure a member by majority vote as a governance-based, expressive measure. Censure is symbolic, it carries no legal consequence, imposes no disability, and does not compel any action by the censured member. However, it creates a public record and is generally recognized as within a council's inherent authority. It is the most reliable enforcement tool available under current law.

Referral to External Authorities. The Council may refer conduct to the Stanislaus County District Attorney, the California Fair Political Practices Commission (FPPC), the California Civil Rights Department, or other competent authorities. This is within the Council's authority and may be the most practically effective tool in serious cases, including cases involving potential criminal conduct or civil rights violations.

Removal from Committee Assignments. The Council may, by majority vote, remove a member from committee or advisory board assignments to which that member was appointed by the Council. This does not extend to positions established by state law.

Written Administrative Admonition. The Council may issue a written admonition documenting a finding of misconduct and setting expectations for future conduct. This creates a record without imposing legal consequences.

Removal from Meetings (In-Meeting Conduct Only). A presiding officer may remove a disruptive council member from the meeting room under applicable decorum rules. This authority is limited to in-meeting conduct at the specific meeting at which the disruption occurs.

Measures Not Available to a General Law City
The Council should understand clearly what it cannot do. A general law city council may not:
• Suspend a council member from office;
• Dock or withhold a council member's compensation;
• Bar a council member from City Hall in a manner that prevents fulfillment of statutory duties;
• Impose employment-style progressive discipline on an elected official; or • Remove a sitting council member from office.

Removal from office requires either a court proceeding under California Government Code Section 3060 et seq. (initiated by the district attorney or grand jury for willful misconduct, corruption, or similar grounds) or a voter recall under the California Elections Code. The City Council has no direct authority over either process.

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Calibrating Expectations: The most meaningful enforcement tools for serious misconduct, including the type of conduct that gave rise to this proposal, are referral to the District Attorney and/or the FPPC, a well-documented governance record supporting any civil action by an aggrieved party, and formal censure to create a permanent public record. An ordinance that purports to authorize measures beyond what California law permits will either be unenforceable or expose the City to legal liability. The draft ordinance is deliberately calibrated to what the law allows.

V. Non-Employee Status of Council Members
City Council members are elected officials, not employees of the City. This distinction has significant legal consequences. The Council may not impose employment discipline, require submission to employment investigations, or treat misconduct proceedings as personnel matters in the same way it would for City employees. The proposed ordinance expressly recognizes this distinction throughout and includes an operative savings provision that renders inoperative any measure that would exceed the City's lawful authority.

VI. California Fair Employment and Housing Act and Harassment Prevention Section 2.05.050 of the proposed ordinance is the provision most directly responsive to the circumstances giving rise to this proposal. It expressly prohibits sexual harassment and other forms of unlawful harassment and discrimination by Council members in connection with City Business.

The FEHA's application to harassment by elected officials is a complex and evolving area of law. Several points are particularly relevant to the Council:
• AB 2053 (2014) and SB 1343 (2018) impose harassment prevention training requirements on local elected officials. All current Council members should confirm completion of AB 1825/SB 1343-compliant training. The City Clerk should maintain records of completion.
• The California Civil Rights Department (formerly the Department of Fair Employment and Housing) is the appropriate external agency for harassment complaints involving elected officials. The proposed ordinance includes referral to the CRD as an available governance response.

Training Requirement Action Item: Before or concurrent with adoption of this ordinance, staff recommends the Council verify that all current members have completed required harassment prevention training under AB 1825 and SB 1343. Completion records should be filed with the City Clerk. The City Attorney can assist in identifying a compliant training provider if needed.

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VII. Social Media and the First Amendment
Section 2.05.060 of the proposed ordinance addresses social media and electronic communications. This is among the most legally constrained areas of any code of conduct for elected officials, and the Council should understand both what the City can lawfully regulate and, equally important, what it cannot.

The Controlling Legal Framework
Lindke v. Freed, 601 U.S. 187 (2024), and O'Connor-Ratcliff v. Garnier, 601 U.S. 205 (2024), are the controlling Supreme Court decisions on public officials' social media conduct. They establish a two-part test for determining when a public official's social media activity constitutes state action: the official must have (1) actual authority to speak on behalf of the government, and (2) must have purported to exercise that authority in the specific posts at issue.

These decisions address one specific legal question: when can a constituent bring a First Amendment claim against a public official based on the official's social media conduct, such as being blocked from an account? They do not address, and do not resolve, the separate question of what authority a municipality has to regulate social media accounts through a code of conduct.

The Critical Distinction: State Action vs. City Regulatory Authority These are not the same question, and conflating them produces legally unsound results.

The state action analysis in Lindke governs the constitutional relationship between the official and a third-party user who claims injury. It does not create or expand municipal authority to regulate how Council members manage their own accounts. A finding that a given account might constitute state action for purposes of a constituent's claim does not mean the City may impose binding governance obligations on that account.

The City's regulatory authority over a Council member's social media account depends on a different and logically prior question: does the City own, fund, operate, or control the account? If the City does not, its authority to regulate the account's management is significantly constrained by the First Amendment, which protects the Council member's own expressive choices on privately-owned platforms.

The Ownership and Control Problem
In practice, the vast majority of social media accounts used by elected officials to communicate about City Business are created and controlled by the officials themselves, on platforms they access with personal credentials, at their own expense. The City has no ownership interest, no contractual interest, and no property stake in those accounts.

Imposing binding platform management obligations on a privately-owned account as a condition of holding elected office raises serious constitutional concerns under the

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unconstitutional conditions doctrine, which prohibits the government from conditioning a benefit on the waiver of a constitutional right. A Council member's right to manage their own social media account, including decisions about what to post and whom to block, is an expressive right the City may not freely regulate simply because the official also uses that account to discuss City Business.

The Honest Legal Assessment: The City's regulatory reach over a Council member's independently-owned social media account is narrow. Overclaiming that authority in a code of conduct creates more legal risk than it mitigates. A provision that purports to prohibit viewpoint-based blocking on a privately-owned account, or to require a Council member to keep a personal account open to public engagement, would be constitutionally vulnerable even if a court would separately find that account constitutes state action under Lindke. The state action determination is for courts, not for the City to make by ordinance.

What the Proposed Ordinance Does and Does Not Regulate
City-Owned Social Media Accounts
Where the City itself creates, owns, operates, and controls an account as an institutional City asset, Council members authorized to use that account in an official capacity are subject to conduct standards in that limited role. The City is the publisher and can set standards for authorized users. This is unambiguously within the City's authority.

Independently Unlawful Conduct on Any Account
Conduct that is independently unlawful regardless of the medium used remains addressable under the Code. A Council member who sexually harasses a City employee through a personal social media account in connection with City Business has not escaped the prohibition in Section 2.05.050 by choosing that channel. Similarly, disclosing closed session information through a personal account remains a violation of the confidentiality obligations in Section

2.05.040.

What the Ordinance Expressly Does Not Do
The proposed ordinance does not require Council members to create or maintain any social media account. It does not regulate the content, tone, or viewpoint of a Council member's personal communications. It does not impose blocking or access obligations on privatelyowned accounts. It does not purport to determine whether any given account constitutes state action under Lindke.

The Blocking Question
Even if a court were to find that a particular Council member's personal account constitutes state action under Lindke, the consequence of that finding runs between the official and the

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affected constituent in federal litigation. The City cannot use a code of conduct to enforce a no-blocking rule on a privately-owned account without raising its own separate First Amendment concerns about compelling the official's expressive choices on a platform the City does not own. The proposed ordinance therefore omits any blocking prohibition as applied to Council Member Social Media Accounts. This is a deliberate legal judgment that the City should not assert regulatory authority in this area.

Public Records
City of San Jose v. Superior Court (2017) 2 Cal.5th 608 established that communications about City Business made through personal devices and personal accounts may constitute public records subject to disclosure under the California Public Records Act. This obligation arises from state law and is independent of this ordinance. The proposed Section 2.05.060(g) includes a notice provision directing Council members to consult the City Attorney regarding their public records obligations. This is informational, not regulatory.

VIII. Brown Act Considerations
The Ralph M. Brown Act (Government Code Section 54950 et seq.) significantly constrains the procedures available for reviewing and responding to Council member misconduct. Key limitations include:
• Closed session authority for personnel matters (Government Code Section 54957) has limited application to elected officials, who are not employees. Whether a given complaint proceeding may be discussed in closed session requires case-by-case legal analysis. The City Attorney will advise the Council before each matter. • Censure proceedings must be conducted in open session at a duly noticed public meeting with an agenda item describing the subject matter. • The Council may not take action on matters not appearing on the posted agenda, subject to limited exceptions.

The draft ordinance is designed to operate within these constraints. However, the Brown Act landscape for elected official misconduct proceedings is not fully settled, and the City Attorney's real-time guidance will be essential as any specific matter progresses.

DISCUSSION:

IX. Structure and Organization of the Proposed Ordinance The proposed Chapter 2.05 is organized as follows, in the order that best-practice legislative drafting convention requires, with foundational provisions first, substantive standards second, process provisions third, and remedies last:

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Section Title Description

2.05.010 Purpose and Scope States the Council's reasons for adoption; establishes the governance-only framework; confirms prospective
application.

2.05.020 Definitions Defines key terms used throughout the chapter.

2.05.030 Non-Employee
Status; Limits on
Authority
Expressly acknowledges that Council members are not
employees and that the City's authority is limited to
measures authorized by law. Includes a savings clause.

2.05.040 Standards of
Conduct
General behavioral standards applicable to all Council
members in Official Capacity, including compliance with law, dignity in treatment of others, resource use, and
non-interference with City operations.

2.05.050 Harassment and
Discrimination
Prohibited
Specific prohibition on sexual harassment, harassment,
and discrimination in connection with City Business.

Preserves FEHA and other external remedies.

2.05.060 Social Media and
Electronic
Communications
Standards for City-owned accounts; limited conduct
standards for privately-owned accounts based on
independently unlawful conduct; express statement of
what the ordinance does not regulate.

2.05.070 Reporting Alleged
Misconduct
Written complaint process; routing to City Attorney and City Manager; records preservation.

2.05.080 Review and
Response
Procedures
City Attorney preliminary review; notice to respondent; Council consideration in closed session (where
permitted); optional independent investigator.

2.05.090 Governance-Based
Measures
Available responses: written admonition, required
training, committee reassignment, resource limitation.

Proportionality requirement.

2.05.100 Referral to External
Authorities
DA, FPPC, CRD, and other referral options.

2.05.110 Formal Censure Procedure, notice requirements, content of censure resolution, First Amendment limitations.

2.05.120 Safeguards and
Limitations
Anti-retaliation, good faith requirement, due process,
respondent recusal, no private right of action.

2.05.130 Relationship to
Rules of Decorum
Preserves presiding officer authority; supplements (and where applicable supersedes) existing decorum
provisions as to Council member conduct.

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2.05.140 Acknowledgement Requires written acknowledgement by each Council member within 30 days; filed with City Clerk.

2.05.150 Severability Standard severability clause.

X. Key Provisions Requiring Council Discussion
Staff identifies the following provisions as the most likely subjects for Council discussion and direction:

Review Timeline (Section 2.05.080(f))
The draft ordinance states that the Council should "endeavor to" complete review within 90 days. This timeline is aspirational. Staff recommends retaining it as aspirational rather than mandatory, because a mandatory timeline would create procedural grounds for legal challenge if the City fails to meet it, particularly where a matter has been referred externally or where an independent investigation is underway. The Council should confirm whether it is comfortable with an aspirational standard.

Required Training as a Condition (Section 2.05.090(b))
The draft includes required training as an available governance-based measure. The legal authority to compel training by an elected official is uncertain. As a practical matter, this provision operates primarily as a matter of public accountability rather than legal compulsion.

The Council should understand that a Council member who refuses to complete required training cannot be suspended or penalized in a legally enforceable way under current California law, though the refusal itself becomes part of the public record.

Independent Investigator (Section 2.05.080(e))
The draft authorizes the City Attorney to retain an independent investigator upon Council approval. Any investigation of an elected official must be conducted on a voluntary and noncoercive basis. The Council should consider whether it wants the City Attorney to have authority to retain an investigator unilaterally, or whether full Council approval should be required in each instance. The current draft requires Council approval by majority vote.

Respondent Recusal (Section 2.05.120(e))
The draft provides that a Council member who is the subject of a complaint shall not participate in any vote on that complaint. The authority to require recusal on a censure vote is well-established. Requiring recusal on other procedural votes (such as a vote to hire an investigator) is less settled. The City Attorney will advise on a case-by-case basis.

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Drafting Note on Simplification: This draft is intentionally leaner than comparable ordinances adopted by larger general law cities. Staff is prepared to simplify further if the Council determines that certain provisions exceed what Hughson's staff resources and governance context can practically sustain.

PROPOSED ADOPTION ROADMAP:

XI. Recommended Process
Staff recommended the following adoption roadmap for the City Council's consideration and have updated it accordingly:

Step Action Notes
1 Council Discussion
and Direction
(April 27)
Council reviews this staff report and the draft ordinance. Goal is not adoption but direction on scope, specific provisions, and whether there is consensus to proceed. No formal action required. COMPLETED
2 Staff Confirmation
of Existing Policies
(April 27)
Before ordinance introduction, City Manager and City
Attorney confirm whether any outside-the-HMC conduct
policies exist that must be superseded or amended.

COMPLETED
3 Revised Draft
Circulation
(April 27)
City Attorney incorporates Council direction into a revised draft. Revised draft circulated to City Manager for review before reintroduction to Council. COMPLETED
4 Ordinance
Introduction
(First Reading)
May 11, 2026
Revised draft placed on Council agenda for first reading at a duly noticed regular meeting. Brown Act noticing
requirements apply.
5 Ordinance
Adoption
(Second Reading)
May 26, 2026
Second reading and adoption at a subsequent regular
meeting. Adoption requires a majority vote. Ordinance takes effect 30 days after adoption per Government Code Section 36937.
6 Post-Adoption
Implementation
City Clerk obtains signed acknowledgements from all Council members within 30 days. City Clerk coordinates publication per Government Code Section 36933. City Attorney confirms completion of harassment prevention training.

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FISCAL IMPACT:

Adoption of this ordinance is not anticipated to have a direct fiscal impact on the City's operating budget, outside of publication costs and updating of the City’s Municipal Code on the City’s website (estimated at $1,000). Potential indirect costs include:
• City Attorney time for complaint review, Council consultation, and any independent investigator coordination, which would be billed at the City's existing contract rate. • Costs of retaining an independent investigator, if authorized by the Council in a specific matter. These costs are not predictable in advance and would be subject to Council authorization.
• Harassment prevention training costs for Council members, if not already current.

These costs are typically modest and may be available through the League of California Cities or similar resources.

ENVIRONMENTAL REVIEW:

Adoption of this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3). Adoption of governance standards for elected officials has no possibility of a significant effect on the physical environment.

City of Hughson | Ordinance No. 2026-02

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CITY OF HUGHSON

STANISLAUS COUNTY, CALIFORNIA
ORDINANCE NO. 2026-02

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUGHSON, CALIFORNIA, AMENDING TITLE 2 OF THE HUGHSON MUNICIPAL CODE TO ADD CHAPTER 2.05, ENTITLED "CITY COUNCIL CODE OF CONDUCT"

RECITALS
The City Council of the City of Hughson hereby finds and declares as follows:

WHEREAS, the City of Hughson is a general law city organized and operating under the laws of the State of California; and
WHEREAS, the members of the City Council are elected officials entrusted with legislative authority and public responsibilities, and are not employees of the City; and WHEREAS, the City Council previously adopted a Code of Conduct for Elected Officials on February 9, 2004, by Resolution No. 04-19 (the "2004 Code of Conduct"), which established behavioral guidelines for Council members in a policy document format; and WHEREAS, the 2004 Code of Conduct was adopted by resolution and is not codified in the Hughson Municipal Code; and
WHEREAS, the City Council has determined that the 2004 Code of Conduct, while reflective of sound aspirational principles, does not provide an enforceable governance framework, does not contain structured procedures for receiving and reviewing complaints, does not establish governance-based response measures grounded in and limited to the City's lawful authority under California law, and does not address harassment, social media, or other areas of contemporary governance concern; and

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WHEREAS, the City Council has further determined that a codified ordinance is the appropriate and more legally defensible vehicle for a Council Code of Conduct because, unlike a resolution, an ordinance requires two readings, public notice, a waiting period before it takes effect, and a higher procedural threshold to amend or repeal, thereby providing greater stability and enforceability; and
WHEREAS, the City Council intends that this Ordinance, upon taking effect, shall supersede Resolution No. 04-19 in its entirety, render it of no further force and effect as to Council member conduct, and constitute the sole and exclusive governance-based code of conduct applicable to City Council members; and
WHEREAS, the City Council has determined that adoption of this Ordinance is reasonably necessary to promote lawful, effective, and respectful governance; to establish clear and enforceable standards of conduct applicable to Council members; to protect persons who participate in City governance from misconduct by Council members; to provide a structured and transparent framework for responding to alleged misconduct within the limits of California law; and to protect the City from legal, financial, and reputational risk; and WHEREAS, the City Council recognizes that its authority to discipline, suspend, remove, or compel action by an elected official is strictly limited under California law, and that this Code of Conduct is adopted as a governance and risk-management framework, not as an employment policy or criminal enforcement mechanism; and
WHEREAS, all legal prerequisites to adoption of this Ordinance have been satisfied.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUGHSON, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Findings.

The City Council hereby adopts the foregoing recitals as its findings in support of this Ordinance.

Section 2. Amendment to Title 2 of the Hughson Municipal Code.

Title 2 (Administration and Personnel) of the Hughson Municipal Code is hereby amended to add a new Chapter 2.05, entitled "City Council Code of Conduct," to read in its entirety as follows:

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CHAPTER 2.05

CITY COUNCIL CODE OF CONDUCT
Sections:

2.05.010 Purpose and Scope

2.05.020 Definitions

2.05.030 Non-Employee Status; Limits on Authority

2.05.040 Standards of Conduct

2.05.050 Harassment and Discrimination Prohibited

2.05.060 Social Media and Electronic Communications

2.05.070 Reporting Alleged Misconduct

2.05.080 Review and Response Procedures

2.05.090 Governance-Based Measures

2.05.100 Referral to External Authorities

2.05.110 Formal Censure

2.05.120 Safeguards and Limitations

2.05.130 Relationship to Rules of Decorum

2.05.140 Acknowledgement

2.05.150 Severability
§ 2.05.010. Purpose and Scope.
(a) Purpose. The City Council of the City of Hughson adopts this Chapter to:
• Establish clear, written standards of conduct applicable to City Council members in their official capacity;
• Protect individuals who participate in City governance, including fellow Council members, City staff, contractors, and members of the public, from misconduct by Council members; • Provide a structured, transparent, and legally sound framework for receiving information about, reviewing, and responding to alleged Council member misconduct; • Promote accountability, public trust, and the effective functioning of City government; and

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• Reduce legal, financial, and reputational risk to the City. (b) Scope. This Chapter applies to all persons serving as members of the Hughson City Council, including the Mayor, on and after the effective date of this Ordinance. (c) Governance Framework Only. This Chapter is a governance and risk-management framework.

It does not create an employment relationship, impose employment discipline, create criminal liability, or establish a private right of action. Nothing in this Chapter supersedes, limits, or displaces any right, remedy, or obligation established by applicable state or federal law, including without limitation the California Fair Employment and Housing Act (Gov. Code §§ 12900 et seq.) and the Ralph M. Brown Act (Gov. Code §§ 54950 et seq.). (d) Prospective Application. This Chapter applies prospectively to conduct occurring on or after its effective date.
(e) Supersession. This Chapter supersedes Resolution No. 04-19 (Code of Conduct for Elected Officials, adopted February 9, 2004) in its entirety as to Council member conduct upon the effective date of this Ordinance, as further provided in Section 3 of this Ordinance. The aspirational principles reflected in the 2004 Code of Conduct remain informative as background but shall not serve as an independent basis for any governance-based measure, censure, or other consequence under this Chapter.
§ 2.05.020. Definitions.

For purposes of this Chapter, the following terms have the meanings set forth below:
"City Business" means any matter within the legislative authority, oversight responsibility, or public duties of a City Council member, including but not limited to City meetings, official proceedings, interactions with City staff or contractors, use of City resources, and actions taken in one's official capacity.
"City Council member" means any person serving as a member of the Hughson City Council, including the Mayor.
"Complainant" means a person who submits a written complaint or report alleging Misconduct under this Chapter.
"Misconduct" means conduct by a City Council member, in connection with City Business or the exercise of official duties, that violates an applicable standard of conduct set forth in this Chapter. "Official Capacity" means action taken or purportedly taken by a City Council member by reason of that person's status as a Council member or the Mayor. "Respondent" means a City Council member who is the subject of a complaint or review under this Chapter.

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§ 2.05.030. Non-Employee Status; Limits on City Council Authority. (a) City Council members are elected officials of the City of Hughson. They are not employees of the City and are not subject to employment discipline, suspension, or termination by the City Council or any City official.
(b) The City Council's authority to respond to Misconduct by a Council member is limited to the Governance-Based Measures described in Section 2.05.090, referral to external authorities under Section 2.05.100, and formal censure under Section 2.05.110. The City Council does not have authority under California law to suspend, remove, dock the compensation of, or impose employment-style discipline upon an elected City Council member absent express statutory or constitutional authority not currently conferred on general law cities. (c) Nothing in this Chapter shall be construed to create any authority not conferred by applicable law. Any provision of this Chapter that, if applied, would exceed the City's lawful authority shall be deemed inoperative to the extent of such excess.
§ 2.05.040. Standards of Conduct.

City Council members shall conduct themselves in a manner that upholds the integrity and lawful functioning of City government. In connection with City Business or Official Capacity, City Council members shall:
(a) Comply with all applicable laws, including but not limited to the Ralph M. Brown Act, the Political Reform Act, the California Fair Employment and Housing Act, and all applicable conflict-of-interest laws;
(b) Treat all persons with dignity and respect, including fellow Council members, City staff, contractors, volunteers, and members of the public;
(c) Refrain from using the authority, platform, or resources of City office to intimidate, threaten, demean, or retaliate against any person for that person's lawful participation in City governance or protected activity;
(d) Disclose and recuse from matters in which they have a financial interest or other legally disqualifying conflict, as required by the Political Reform Act and applicable law; (e) Refrain from using City resources, including staff time, City equipment, City facilities, and City letterhead, for personal, campaign, or political purposes, except as authorized by law; (f) Refrain from making material misrepresentations of fact in connection with City Business; (g) Refrain from taking or attempting to take any action in Official Capacity that is intended to confer improper personal benefit on the Council member or another person, or to cause improper harm to any person, in connection with City Business; and (h) Conduct themselves, in Official Capacity, in a manner that does not materially obstruct or interfere with the lawful ability of City staff to carry out their duties.

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Nothing in this section shall be construed to limit any Council member's rights under the First Amendment, including the right to express dissent, criticize City policy, or cast votes in accordance with personal or constituent views.
§ 2.05.050. Harassment and Discrimination Prohibited.
(a) Policy. It is the policy of the City of Hughson that all persons who interact with the City Council in connection with City Business, including fellow Council members, City employees, contractors, and members of the public, are entitled to do so in an environment free from harassment, sexual harassment, and unlawful discrimination.
(b) Prohibited Conduct. No City Council member shall, in connection with City Business or in Official Capacity:
• Engage in sexual harassment, as defined under the California Fair Employment and Housing Act (Government Code § 12940), toward any person in connection with City Business, regardless of whether a formal employment relationship exists between the Council member and the person affected;
• Engage in harassment on the basis of race, sex, gender, gender identity or expression, sexual orientation, national origin, religion, age, disability, marital status, or any other characteristic protected by applicable law;
• Make unwelcome sexual advances, requests for sexual favors, or engage in other verbal, visual, or physical conduct of a sexual nature when such conduct creates a hostile, intimidating, or offensive environment for the person subjected to it; or • Engage in conduct that a reasonable person would consider severely or pervasively offensive, intimidating, or hostile toward another Council member or City employee. (c) Complaints. Any person who believes they have been subjected to harassment or discrimination in violation of this section by a City Council member may file a complaint pursuant to Section

2.05.070.
(d) No Retaliation. No City Council member shall take or attempt to take any adverse action, in Official Capacity, against any person because that person filed a complaint, reported concerns, provided information, or participated in any review or proceeding under this Chapter. (e) Preservation of Other Remedies. This section does not limit, replace, or supersede any right, claim, or remedy available under state or federal law, including without limitation the right to file a complaint with the California Civil Rights Department or to pursue civil litigation. Nothing in this section creates an independent private right of action against the City. § 2.05.060. Social Media and Electronic Communications. (a) Purpose and Scope. This section establishes standards governing the use of social media and electronic communications by City Council members. It is adopted with express recognition of the complex and unsettled constitutional law applicable to public officials' social media conduct and with acknowledgement of the significant limits on the City's authority to regulate social media

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accounts that the City does not own or control. Nothing in this section shall be construed to exceed the City's lawful authority or to regulate protected speech beyond what is permitted by applicable law.
(b) Definitions. For purposes of this section:
• "City-Owned Social Media Account" means a social media account, page, or profile that is created, owned, operated, funded, and controlled by the City of Hughson as an institutional account, maintained by City staff or under City authority, and held out to the public as an official channel of City communications. A City-Owned Social Media Account does not include any account created, owned, or independently operated by an individual Council member, regardless of how that account is used or labeled. • "Council Member Social Media Account" means any social media account created, owned, and independently operated by a City Council member in their individual capacity, whether used for personal, political, or City Business-related communications, or any combination thereof. This includes any account the Council member uses to communicate about City Business but which is not a City-Owned Social Media Account as defined above. • "Social Media" means any internet-based platform used for social networking, content sharing, or public communication, including but not limited to Facebook, X (formerly Twitter), Instagram, Nextdoor, YouTube, LinkedIn, and TikTok. (c) City-Owned Social Media Accounts. To the extent the City operates City-Owned Social Media Accounts, City Council members who are authorized to post on or administer such accounts shall comply with the following standards in that capacity:
• Shall not post, share, or amplify content that constitutes harassment, sexual harassment, threats, or unlawful discrimination toward any identifiable individual in violation of Section 2.05.050;
• Shall not disclose nonpublic, confidential, or legally privileged City information, including closed session communications; and
• Shall not use City-Owned Social Media Accounts for personal campaign or political purposes unrelated to City Business, except as permitted by applicable law. (d) Council Member Social Media Accounts, Conduct Standards. A Council member’s independently owned and operated social media account is not subject to City ownership, City control, or City regulation as a City asset. The City's authority to regulate a Council member's conduct on such an account is therefore significantly limited by the First Amendment. The following standards apply only to the narrow extent consistent with the City's lawful governance authority:
• A Council member shall not use a Council Member Social Media Account to post, share, or amplify content that constitutes sexual harassment or other unlawful harassment toward a City employee, fellow Council member, or other person in connection with City Business, in violation of Section 2.05.050 of this Chapter. This standard applies based on the independently unlawful nature of the underlying conduct, not based on the medium through which it occurs.

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• A Council member shall not use a Council Member Social Media Account to disclose nonpublic, confidential, or legally privileged City information, including closed session communications, in violation of Sections 2.05.040(f) or 2.05.040(g). This standard applies because the obligation to protect confidential City information arises from the member's official duties, not from the platform used.
(e) What This Section Does Not Regulate. To avoid any ambiguity, this section does not:
• Require or prohibit any Council member from creating, maintaining, or using any social media account;
• Regulate the content, tone, or viewpoint of any Council member's personal or political speech on any account the Council member owns and controls; • Require any Council member to allow public access to, or prohibit any Council member from managing, a Council Member Social Media Account, including decisions about blocking, muting, or restricting other users, except as may be required by applicable law independent of this Chapter;
• Impose any obligation based solely on the label, title, or appearance of a Council Member Social Media Account; or
• Purport to determine or establish that any particular Council Member Social Media Account constitutes a public forum or is subject to First Amendment constraints as against third parties. That question is governed by applicable constitutional law and is not within the City's authority to resolve by ordinance.
(f) The State Action Question. Whether a Council member's social media conduct on a personallyowned account constitutes state action subject to First Amendment constraints as to third parties is a fact-specific legal question governed by federal constitutional law, as addressed by the United States Supreme Court. That determination is made by courts, not by the City. Nothing in this section shall be construed as a City determination that any Council member's account does or does not constitute state action for purposes of any constitutional claim. (g) Public Records Notice. Council members are advised that communications made or received in connection with City Business, including communications through social media or personal electronic devices, may constitute public records subject to disclosure under the California Public Records Act (Gov. Code § 7920 et seq.). Council members should consult the City Attorney regarding public records obligations as applied to their specific communications. § 2.05.070. Reporting Alleged Misconduct.
(a) Submission of Complaints. Any person may submit a written complaint alleging that a City Council member has engaged in conduct in violation of this Chapter. Complaints shall be submitted to the City Clerk.
(b) Contents of Complaint. A complaint should, to the extent reasonably practicable, include:
• The name of the Complainant and contact information;
• The name of the Respondent;

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• A description of the conduct alleged, including dates, locations, and persons present, to the extent known;
• Any supporting documentation or evidence the Complainant wishes to submit; and • A statement describing the impact of the alleged conduct on City Business, City governance, or the Complainant's ability to participate in City governance. (c) Anonymous Complaints. Anonymous complaints may be accepted and considered, but the City's ability to investigate or respond may be limited by the absence of identifying information. (d) Routing.

The City Clerk shall promptly transmit complaints received under this section to the City Attorney and the City Manager. If the complaint involves the City Manager, the Clerk shall transmit to the City Attorney only. If the complaint involves the City Attorney, the Clerk shall transmit to the full City Council.
(e) Preservation. The City Clerk shall preserve all complaints and related records received under this Chapter in accordance with the City's document retention schedule and applicable law. § 2.05.080. Review and Response Procedures.
(a) City Attorney Review. Upon receipt of a complaint under Section 2.05.070, the City Attorney shall conduct a preliminary review to determine whether the complaint, if true, would constitute Misconduct under this Chapter, and whether the matter falls within the scope of this Chapter. (b) Preliminary Findings. The City Attorney shall prepare a written summary of the complaint and the City Attorney's preliminary assessment and transmit it to the City Council (in closed session where authorized by law) within thirty (30) calendar days of receipt. (c) Notice to Respondent. Upon determination that a complaint is within scope, the City Attorney shall provide written notice to the Respondent that a complaint has been submitted, a general description of the nature of the concern, and an opportunity to respond in writing within fourteen (14) calendar days.
(d) Council Consideration. The City Council shall consider the complaint, the City Attorney's summary, and the Respondent's written response (if any) in closed session to the extent permitted by the Brown Act. The City Council shall then determine, by majority vote of the members present (excluding the Respondent if the Council determines recusal is appropriate), whether to:
• Take no further action;
• Issue a written finding that Misconduct has not been substantiated; • Issue a written administrative admonition;
• Refer the matter to an external authority pursuant to Section 2.05.100; or • Proceed to formal censure pursuant to Section 2.05.110. (e) Independent Investigator. The City Council may, by majority vote, authorize the City Attorney to retain an independent investigator or outside counsel to conduct a more detailed inquiry where

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the Council determines an independent review is warranted. Any investigation shall be conducted on a voluntary and non-coercive basis as to elected officials, consistent with applicable law. (f) Timeline. The City Council should endeavor to complete review under this section within ninety (90) days of receipt of a complaint, except where the matter has been referred to an external authority or where an independent investigation is underway. (g) Closed Session. To the extent permitted by the Ralph M. Brown Act (Gov. Code § 54957), the City Council may discuss matters involving individual Council members in closed session. The City Attorney shall advise the Council on the availability and scope of closed session for each matter as it arises.
§ 2.05.090. Governance-Based Measures.

The following governance-based measures are available to the City Council upon a finding of Misconduct under Section 2.05.080, subject to the limitations in Section 2.05.030:
(a) Written Administrative Admonition. The City Council may issue a written administrative admonition to a Council member, setting forth the conduct found to constitute Misconduct, the Council's expectations going forward, and any corrective actions recommended. An administrative admonition is not a legal sanction.
(b) Required Training. The City Council may require a Council member to complete specified training, including harassment prevention training, ethics training, or Brown Act training, as a condition of continued participation in City Business, to the extent such a requirement is lawful.

The City Attorney shall confirm the legal basis for any such requirement before imposition. (c) Removal from Committee Assignments. The City Council may, by majority vote, remove a Council member from a Council committee, subcommittee, or advisory board assignment to which that member was appointed by the Council. This authority does not extend to elected positions or to assignments established by state law.
(d) Limitation on City Resource Use. The City Council may, by majority vote, restrict a Council member's access to City resources, facilities, or staff support above the minimum necessary for the Council member to fulfill statutory duties, where the Council member has engaged in Misconduct involving the misuse of such resources.
(e) Progression. Governance-based measures need not be imposed in any particular order. The City Council shall select measures proportionate to the nature and severity of the Misconduct, the risk to City governance, and the record established.
§ 2.05.100. Referral to External Authorities.

The City Council may, by majority vote, refer alleged Misconduct by a Council member to any of the following external authorities as appropriate:

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• The Stanislaus County District Attorney's Office, where the alleged Misconduct may constitute a criminal offense;
• The California Fair Political Practices Commission (FPPC), where the alleged Misconduct may involve a violation of the Political Reform Act;
• The California Civil Rights Department (formerly the Department of Fair Employment and Housing), where the alleged Misconduct may constitute harassment, discrimination, or retaliation in violation of the California Fair Employment and Housing Act; • The State Controller's Office or other applicable agency, where the alleged Misconduct involves misuse of public funds; or
• Any other federal, state, or local authority with jurisdiction over the alleged conduct.

Referral to an external authority does not preclude the City Council from simultaneously imposing Governance-Based Measures or formal censure within its lawful authority. § 2.05.110. Formal Censure.
(a) Authority. The City Council may formally censure a Council member by majority vote of the members present at a duly noticed public meeting. Formal censure is an expressive, governancebased measure. It carries no legal consequence, does not impose any disability, and does not compel any action by the censured member.
(b) Procedure.
• A motion to censure may be introduced by any Council member. The motion shall identify the specific conduct alleged to constitute Misconduct and the provision of this Chapter alleged to have been violated.
• Prior to a vote, the Respondent shall be provided written notice of the proposed censure and the specific conduct at issue at least fourteen (14) days before the meeting at which the vote will be taken, except in cases of urgent necessity as determined by the City Attorney. • The Respondent shall be afforded an opportunity to address the Council at the meeting, subject to applicable time limits.
• The vote on censure shall be conducted at a public meeting, by roll call, and the result shall be recorded in the minutes.
(c) Contents of Censure Resolution. A resolution of censure shall set forth: the specific conduct found by the Council to constitute Misconduct; the provision(s) of this Chapter violated; the Council's findings; and, if applicable, any corrective actions requested of the Respondent. (d) First Amendment. The City Council recognizes that censure involves expressive conduct by the Council as a body and implicates First Amendment interests of the Respondent. A resolution of censure shall not be used to punish protected political speech, lawful dissent, or the casting of votes in accordance with a Council member's judgment.

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§ 2.05.120. Safeguards and Limitations.
(a) No Retaliation. No City Council member shall take or attempt to take any adverse action, in Official Capacity, against any person for filing a good-faith complaint, reporting concerns, providing information, or participating in any review or proceeding under this Chapter. (b) Good Faith Requirement. Complaints submitted under this Chapter should be made in good faith and to the best of the Complainant's knowledge. Submission of a complaint known to be materially false may itself constitute Misconduct under Section 2.05.040(f). (c) No Prejudgment. Nothing in this Chapter shall be construed to require or permit any Council member to prejudge any complaint or to take any action premised on a finding of Misconduct before the procedures in Section 2.05.080 have been followed. (d) Due Process. Prior to the imposition of any Governance-Based Measure or formal censure, the Respondent shall be afforded notice and an opportunity to be heard as described in this Chapter. (e) Conflict of Interest in Proceedings. A Council member who is the subject of a complaint under this Chapter shall not participate in any vote on that complaint, except that the Council member may address the Council during the public comment period applicable to the matter. (f) No Private Right of Action. Nothing in this Chapter creates a private right of action against the City, any City official, or any City Council member. This Chapter does not limit any right of action arising under applicable state or federal law.
§ 2.05.130. Relationship to Rules of Decorum.

Nothing in this Chapter limits the authority of the presiding officer to maintain order and decorum during City Council meetings pursuant to the applicable provisions of the Hughson Municipal Code and state law. Rules of decorum applicable to members of the public remain fully in effect and are not modified by this Chapter.

As applied to City Council members, the standards of conduct and response procedures in this Chapter govern Misconduct occurring inside or outside City Council meetings and supplement, and where applicable supersede, decorum provisions addressing Council member conduct during meetings.
§ 2.05.140. Acknowledgement.

Within thirty (30) days of the effective date of this Ordinance, and within thirty (30) days of assuming office following any election or appointment, each City Council member shall execute a written acknowledgement confirming receipt of, understanding of, and responsibility to comply with this Chapter. Executed acknowledgements shall be filed with the City Clerk and maintained as public records.

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Failure to execute an acknowledgement does not relieve a Council member of the obligations of this Chapter.
§ 2.05.150. Severability.

If any provision of this Chapter, or its application to any person or circumstance, is held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the remaining provisions or applications. The City Council declares that it would have adopted this Chapter and each provision thereof irrespective of the invalidity of any other provision.

Section 3. Supersession of Resolution No. 04-19.

Upon the effective date of this Ordinance, Resolution No. 04-19 (City of Hughson Code of Conduct for Elected Officials, adopted February 9, 2004) is hereby superseded in its entirety and shall be of no further force or effect as to the conduct of City Council members. To the extent any provision of Resolution No. 04-19 relates to the conduct of City staff, members of the public, or other non-Council participants at City meetings, that provision is not affected by this Ordinance and remains in effect only to the extent it is otherwise supported by applicable law or separate City policy.

From and after the effective date of this Ordinance, Chapter 2.05 of the Hughson Municipal Code shall constitute the sole and exclusive codified governance-based code of conduct applicable to City Council members. No provision of Resolution No. 04-19 shall be used as an independent basis for imposing any governance-based measure on a Council member, censure, admonition, or other consequence governed by this Chapter.

Section 4. California Environmental Quality Act.

The City Council finds that adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), in that it can be seen with certainty that adoption of governance standards for elected officials has no possibility of a significant effect on the physical environment.

Section 5. Effective Date.

This Ordinance shall take effect thirty (30) days after its adoption, as provided in California Government Code Section 36937.

Section 6. Certification and Publication.

The City Clerk shall certify to the adoption of this Ordinance and cause it to be published or summarized in a newspaper of general circulation within the City of Hughson, as required by California Government Code Section 36933.

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PASSED AND ADOPTED by the City Council of the City of Hughson, California, at a regular meeting held on the ___ day of ______________, 20___, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
GEORGE CARR, Mayor
ATTEST:
_________________________________
DOMINIQUE ROMO, City Manager
APPROVED AS TO FORM:
_________________________________
ANDY PINASCO, City Attorney

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EXHIBIT A

CITY COUNCIL CODE OF CONDUCT

ACKNOWLEDGEMENT OF RECEIPT AND UNDERSTANDING

CITY OF HUGHSON
I, _________________________________, a member of the Hughson City Council, acknowledge that:
• I have received and read Chapter 2.05 of the Hughson Municipal Code (City Council Code of Conduct);
• I understand the standards of conduct applicable to City Council members set forth therein;
• I understand that this Chapter establishes governance-based standards and procedures and does not create an employment relationship or constitute employment discipline; • I understand the limits of the City Council's authority under California law regarding elected officials; and
• I agree to conduct myself in my official capacity in a manner consistent with the standards set forth in Chapter 2.05.

I understand that this acknowledgement does not constitute a waiver of any legal right or remedy available to me under applicable law.

Signature: ___________________________ Date: _______________ Printed Name: ________________________
Title: ________________________________
Filed with City Clerk: ________________

Meeting Date: May 11, 2026
Subject: Acceptance of the Fiscal Year 2024-25 City of Hughson Audited Annual Financial Report
Enclosure: Annual Financial Report Fiscal Year Ended June 30, 2025 Presented By: Kim Weimer, Director of Finance & Administrative Svcs.

Approved By:
____________________________
Dominique Romo, City Manager
Recommendation:

Accept the City of Hughson’s Fiscal Year 2024-25 Audited Financial Report.

Background and Overview:

Each year, the City’s financial records are audited by an independent Certified Public Accounting firm. The firm of Moss, Levy & Hartzheim, LLP, completed the City’s audit of Fiscal Year 2024-25 and has produced the Annual Financial Report for Fiscal Year ending June 30, 2025. The opinion given by the auditors for this audit is an unmodified opinion. An unmodified opinion is given when the auditor expresses an opinion that the financial statements are presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP). This is the highest opinion that auditors can give on the financial statements. Audited Annual Financial Reports are important documents to governmental agencies. They are used by governing boards, members of the public and bond rating agencies. The audit did not produce any internal control findings that would be considered material weaknesses or significant deficiencies. There were no difficulties encountered in performing the audit and no management disagreements to report.

The Management Discussion and Analysis of the Annual Financial Report provides a detailed analysis of the financial highlights for the fiscal year ending June 30, 2024, some of which are:

1. On the government-wide governmental activities, the City’s total net position equaled $111,876,672. Of this total, $43,575,505 was attributed to government net position and $68,301,167 was attributed to business-type net position.

CITY COUNCIL AGENDA ITEM NO. 6.1
SECTION: 6 NEW BUSINESS

2. Government fund revenues and transfers totaled $8,277,741, a $75,980 increase over the previous fiscal year largely due to the increase in property tax revenue.

Government fund expenditures were $6,495,694, a $434,325 increase over the previous fiscal year. Costs for public safety accounted for $98,414 of this increase due to the increase in contract costs. Total net position increased by $1,782,047 to $43,575,505.

3. For business type activities (e.g., water, sewer), the City’s total net position equaled $68,301,167, an increase of $1,614,003 over the prior fiscal year.

4. The Sewer Fund total net position increased by $831,092 to $37,577,468 of which $27,496,021 was net investment in capital assets and $10,081,447 was unrestricted.

5. The Water Fund total net position increased by $814,498 to $30,548,929. $17,665,273 of the total net position was net investment in capital assets and $12,883,656 was unrestricted.

6. The Successor Agency continues to carry a negative fund balance due to holding the RDA (Redevelopment Agency) issued debt. Money continues to be collected on the tax roll to pay down the debt. For the Fiscal Year 2024-25 the negative balance was decreased by $141,319.

7. The City’s Net Pension Liability as of June 30, 2025, equaled $4,155,780 a. Miscellaneous: $3,200,908
b. Safety: $954,872
This is a total decrease of $45,414
The City continues to remain in a good financial position. Looking forward, operating expenses continue to rise and will be expected to do so due to supply chain issues, increasing labor costs, and the overall impacts of inflationary economic activity. Sales tax revenues are expected to remain consistent and property tax revenues are expected to increase based on current planned development and the anticipated property tax reallocation sharing agreement with the County.

Fiscal Impact:

There is no fiscal impact for the acceptance of the Annual Financial Report for Fiscal Year Ended June 30, 2025. The cost of the Audit is budgeted annually, and the completion of the work came in at budget.

CITY OF HUGHSON
Annual Financial Report
Fiscal Year Ended June 30, 2025

i

CITY OF HUGHSON

ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS
I. FINANCIAL SECTION
A. Independent Auditor’s Report ................................................................................................ 1 B. Management’s Discussion and Analysis ................................................................................ 4 C. Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................. 15 Statement of Activities ................................................................................................. 16 Fund Financial Statements:

Governmental Funds:

Balance Sheet ......................................................................................................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................... 21 Statement of Revenues, Expenditures, and Changes in Fund Balances ................ 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................... 25 Proprietary Funds:

Statement of Net Position ...................................................................................... 26 Statement of Revenues, Expenses, and Changes in Net Position .......................... 27 Statement of Cash Flows ...................................................................................... 28 Fiduciary Fund:

Statement of Fiduciary Net Position ...................................................................... 31 Statement of Changes in Fiduciary Net Position ................................................... 32 Notes to Basic Financial Statements ................................................................................. 33 D. Required Supplementary Information:

General Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual........................................................................ 57 Refuse Special Revenue Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual .............................................. 58 Schedule of the City’s Proportionate Share of the Net Pension Liability ......................... 59 Schedule of Pension Contributions ................................................................................... 60 E. Other Supplemental Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Major Governmental Funds:

Public Facilities Capital Projects Fund .................................................................. 61

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CITY OF HUGHSON

ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2025

TABLE OF CONTENTS
I. FINANCIAL SECTION (Continued)
E. Other Supplemental Information (Continued)
Nonmajor Governmental Funds
Description of Nonmajor Governmental Funds ........................................................... 63 Combining Balance Sheet ............................................................................................ 66 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................... 70 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Gas Tax Special Revenue Fund ............................................................................. 74 Vehicle Abatement Special Revenue Fund ............................................................ 75 CDBG Rehab Special Revenue Fund .................................................................... 76 Community Enhancement Special Revenue Fund ................................................. 77 Storm Drain Special Revenue Fund ....................................................................... 78 SLESF Special Revenue Fund ............................................................................... 79 Lighting and Landscaping Special Revenue Fund ................................................. 80 Benefit Assessment Special Revenue Fund ........................................................... 81 IT Reserve Special Revenue Fund ......................................................................... 82 Measure L Sales Tax Special Revenue Fund ......................................................... 83 SB-1 Roads Special Revenue Fund ....................................................................... 84 Disability Access and Education Special Revenue Fund ....................................... 85 CFD Special Revenue Fund ................................................................................... 86 Municipal Park Capital Projects Fund ................................................................... 87 Parks Development Impact Fees Capital Projects Fund ........................................ 88 Nonmajor Proprietary Funds
Description of Nonmajor Proprietary Funds ................................................................ 90 Combining Statement of Net Position .......................................................................... 91 Combining Statement of Revenues, Expenses, and Changes in Net Position .............. 92 Combining Statement of Cash Flows ........................................................................... 93

OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS 1 PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 ADAM V GUISE, CPA TEL: 310.670.2745 TEL: 310.670.2745
TRAVIS J HOLE, CPA FAX: 310.670.1689 FAX: 310.670.1689
WILSON LAM, CPA www.mlhcpas.com www.mlhcpas.com
INDEPENDENT AUDITOR’S REPORT
To the Members of the City Council
City of Hughson
Hughson, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Hughson, California as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hughson, California, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and those standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the 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 audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

2 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 14, Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund, and the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Refuse Special Revenue Fund, Schedule of Changes in the Net Pension Liability and Related Ratios, and Schedule of Pension Contributions on pages 57 through 60 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Hughson’s basic financial statements. The Budgetary Comparison Schedules for the Public Facilities Capital Projects Fund and Nonmajor Governmental Funds; the Combining Financial Statements for the Nonmajor Governmental Funds, and the Nonmajor Enterprise Funds listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements.

The Budgetary Comparison Schedules for the Public Facilities Capital Projects Fund and Nonmajor Governmental Funds; the Combining Financial Statements for the Nonmajor Governmental Funds, and the Nonmajor Enterprise Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Moss, Levy & Hartzheim, LLP
Culver City, California
March 31, 2026

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
4 This discussion and analysis provide an overview of the City of Hughson’s financial performance for the fiscal year ended June 30, 2025. This report has been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (USGAAP) as established by the Governmental Accounting Standard Board (GASB). We encourage our readers to consider this information in conjunction with the information provided in the accompanying basic financial statements and notes. The City’s fiscal highlights are presented below:

FINANCIAL HIGHLIGHTS
Financial highlights of fiscal year ended June 30, 2025, include the following:

Government-wide:
 The City’s total net position was $111,876,672 as of June 30, 2025. Of this total, $43,575,505 was governmental net position and $68,301,167 was business-type net position.  Governmental revenues include program revenues of $3,891,033 and general revenues and transfers of $4,386,708, for a total of $8,277,741.
 Governmental expenses were $6,495,694.
 Business-type program revenues, transfers, and interest were $6,568,606 while business-type expenses were $4,954,603.

Fund Level:
 Governmental fund balances increased $1,307,171 in fiscal year 2025.  Governmental fund revenues increased by $137,571 largely due to the increased property tax revenue of $78,265.
 Governmental fund expenditures increased by $434,325 primarily due to the monies spent on the Surface Improvement Project.

General Fund:
 General Fund revenues of $4,702,622 are 10% higher than 2024 largely due to increase in revenue for services in planning & building.
 General Fund expenditures of $4,106,223 increased $308,348 over the prior fiscal year largely due to the increase in salaries, police & animal services.
 General Fund balance of $6,796,714 as of June 30, 2025, increased by $874,141 from 2024 fiscal year’s fund balance of $5,922,573.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is divided into five parts:

1. Government-wide financial statements

2. Fund financial statements

3. Notes to the financial statements

4. Required supplementary information

5. Other supplemental information
Government-wide Financial Statements
The Government-wide financial statements provide a longer-term view of the City’s activities as a whole and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long-term liabilities on a full accrual basis, similar to that used by private industry.

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
5 The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in net positions for the fiscal year.

All of the City’s activities are grouped into governmental activities and business-type activities, as explained below.

The amounts in the Statement of Net Position and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a summary of these two activities for the City as a whole.

Government-wide financial statements are prepared on the accrual basis, which mean they measure the flow of all economic resources of the City as a whole.

The Statement of Net Position and the Statement of Activities present information about the following:

Governmental Activities – All of the City’s basic services are considered to be governmental activities. These services are supported by the general City revenues such as taxes, and by specific program revenues such as user fees and charges.

Business-type Activities – The City’s enterprise activities of water and wastewater are reported in this area. Unlike governmental services, these services are supported by charges paid by users based on the amount of service they use.

Governmental Fund Financial Statements
The governmental fund financial statements report on the City’s operations in more detail than the Government-wide statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The governmental fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt, and other long-term amounts.

The governmental fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. Major funds account for the major financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. The concept of major funds, and the determination of which funds are major, was established by the Governmental Accounting Standards Board (GASB) Statement No. 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present details of these non-major funds.

Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City’s activities.

In the City’s case, there are three major governmental funds in addition to the General Fund: Home Loan Special Revenue Fund, Refuse Special Revenue Fund, and Public Facilities Capital Projects Fund.

The City reports 2 major and 2 non-major enterprise funds.

Fund financial statements include governmental and proprietary funds as discussed below.

Governmental fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the governmental fund financial statements.

Proprietary fund financial statements are prepared on the full accrual basis and include all of their assets and liabilities, current and long-term.

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
6 FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
This analysis focuses on the net positions and changes in net positions of the City as a whole. Tables 1, 2, and 3 focus on the City’s Governmental Statement of Net Position and Statement of Activities, while Tables 4, 5, and 6 focus on the City’s Business-type Statement of Net Position and Statement of Activities.

The City’s governmental net position amounted to $43,575,505 as of June 30, 2025, an increase of $1,782,047 over 2024. This increase in the change in net position is reflected in the Governmental Activities column of the Statement of Activities shown in Table 2. The City’s net position as of June 30, 2025, comprised the following:

Cash and investments comprised $17,839,820. Substantially all these amounts were cash on hand or held in short-term investments, as detailed in Note 3 to the financial statements.

Receivables comprised $665,570 of accounts receivable and lease receivables; loans receivable, interest receivable and internal balances of $941,430 that is due over longer periods of time as explained in the Notes and Leases.

Capital assets of $27,426,890 net of accumulated depreciation, includes all the City’s capital assets used in governmental activities.

Current liabilities, including accounts payable, compensated absences, and other amounts due currently, totaled $1,369,628.

Long-term liabilities of $2,372,838 do not include $30,000, which is the current portion. The debt is related to the City’s Net Pension Liability and compensated absences.

Net investment in capital assets of $27,426,890 represents the City’s investment in capital assets used in governmental activities, net of accumulated depreciation and amounts borrowed to finance those investments.

Governmental Governmental
Activities Activities
2025 2024
Assets
Cash and investments $ 17,839,820 $ 16,884,214
Other assets 1,609,499 1,563,475
Capital assets, net 27,426,890 26,796,099
Total Assets 46,876,209 45,243,788
Deferred Outflows of Resources
Pension related 626,979 856,343
Total Def. Outflows 626,979 856,343
Liabilities
Long term liabilities 2,402,838 2,363,762
Other liabilities 1,339,628 1,670,784
Total Liabilities 3,742,466 4,034,546
Deferred Inflows of Resources
Leases related 94,245 98,630
Pension related 90,972 173,497
Total Def. Inflows 185,217 272,127
Net Position
Net investment in capital assets 27,426,890 26,796,099
Restricted 11,405,992 10,694,831
Unrestricted 4,742,623 4,302,528
Total Net Position $ 43,575,505 $ 41,793,458
Table 1
Governmental Activities Net Position at June 30

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
7 Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements or restrictions, was $4,742,623 as of June 30, 2025.

As the Sources of Revenue chart above shows, $3,210,135 or 38.8% of the City’s fiscal year 2025 governmental activities revenue came from taxes, while $2,519,623 or 30.4% came from charges for services, $1,194,824 or 14.4% came from capital grants and contributions, $176,586 or 2.1% came from operating grants and contributions, and the remainder came from a variety of sources.

The Functional Expenses chart above includes only current fiscal year expenses; it does not include capital outlays, which are added to the City’s capital assets. As the chart shows, general government was $1,458,759, or 22.46%, of total governmental expenses, public safety was $1,942,664, or 29.91%, public works was $2,199.977, or 33.87%, parks and recreation was $551,728 or 8.49%, and community development was $342,566 or 5.27%.

The Statements of Activities presents program revenues and expenses and general revenues in detail. All of these elements in the changes in governmental net position are summarized below.

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
8 As Table 2 above shows, $3,891,033 or 47%, of the City’s fiscal year 2025 governmental revenue, came from program revenues and $4,386,708, or 53%, came from general revenues such as taxes, interest, and transfers. Program revenues were composed of charges for services of $2,519,623, which included permit revenues, fees and charges used to fund expenses incurred in providing services; $176,586 of operating grants and contributions, which included gas tax revenues and housing and police grants; and capital grants and contributions of $1,194,284, that consisted mainly of street project grants and developer impact fees restricted to capital outlay. Revenues are up by 2% primarily due to increases in tax revenue and expenses are up 7% primarily due to rising costs for public safety.

General revenues are not allocable to programs. General revenues are used to pay for the net cost of governmental programs.

Table 3 presents the net expense or revenue of each of the City’s governmental activities. Net expense is defined as total program cost less the revenues generated by those specific activities.

Governmental Governmental
Activities Activities
2025 2024
Expenses
General government $ 1,458,759 $ 1,561,766
Public safety 1,942,664 1,844,250
Community development 342,566
Public works 2,199,977 2,097,192
Parks and recreation 551,728 558,161
Total Expenses 6,495,694 6,061,369
Revenues
Program revenues
Charges for services 2,519,623 1,745,860
Operating grants and contributions 176,586 216,169
Capital grants and contributions 1,194,824 1,956,910
Total program revenues 3,891,033 3,918,939
General revenues and transfers
Taxes 3,210,135 2,984,986
Use of money and property 51,633 88,875
Other revenue 1,114,812 1,198,841
Transfers 10,128 10,120
Total general revenues and transfers 4,386,708 4,282,822 Total Revenues and Transfers 8,277,741 8,201,761
Change in Net Position $ 1,782,047 $ 2,140,392
Table 2
Change in Governmental Net Position

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
9 BUSINESS-TYPE ACTIVITIES
The Statement of Net Position and Statement of Activities present a summary of the City’s Business-type activities that are composed of the City’s enterprise funds.

The net position of business-type activities increased by $1,614,003 in fiscal year 2025.

Net Revenue Net Revenue
(Expense) from (Expense) from
Services 2025 Services 2024
General government $ (797,710) $ (1,349,308)
Public safety (1,735,516) (1,616,173)
Community development 240,550 405,773
Public works 236,152 975,439
Parks and recreation (548,137) (558,161)
Total $ (2,604,661) $ (2,142,430)
Table 3
Governmental Activities
Business-type Business-type
Activities Activities
2025 2024
Assets
Cash and investments $ 24,584,658 $ 20,652,426
Other assets 92,883 2,022,055
Capital assets, net 57,279,320 58,334,750
Total Assets 81,956,861 81,009,231
Deferred Outflows of Resources
Pension related 533,862 729,162
Total Def. Outflows 533,862 729,162
Liabilities
Long term liabilities 13,970,965 14,702,386
Other liabilities 141,129 201,113
Total Liabilities 14,112,094 14,903,499
Deferred Inflows of Resources
Pension related 77,462 147,730
Total Def. Inflows 77,462 147,730
Net Position
Net investment in capital assets 45,350,984 45,652,515
Unrestricted 22,950,183 21,034,649
Total Net Position $ 68,301,167 $ 66,687,164
Table 4
Business-type Activities Net Position

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
10 ANALYSIS OF MAJOR FUNDS
Governmental Funds
General Fund
General Fund revenues increased $490,072 this fiscal year. Activity has largely remained the same as the prior fiscal year. Actual revenues were larger than budgeted by $241,453, largely due to higher property tax and an increase in permit income. Tax revenues increased $273,447 during the fiscal year while licenses and permits increased by $120,983.

General Fund expenditures were $4,106,223, an increase of $336,181 from the prior fiscal year. Public safety made up much of the increase.

Business-type Business-type
Activities Activities
2025 2024
Expenses
Water $ 1,999,325 $ 1,722,051
Sewer 2,905,622 2,841,705
Community Facilities 49,656 158,384
Total Expenses 4,954,603 4,722,140
Revenues
Program revenues
Charges for services 6,521,451 7,176,699
Total program revenues 6,521,451 7,176,699
General revenues and transfers
Use of money and property 57,283 53,952
Transfers (10,128) (10,120)
Total general revenues and transfers 47,155 43,832
Total Revenues and Transfers 6,568,606 7,220,531
Change in Net Position $ 1,614,003 $ 2,498,391
Table 5
Change in Business-type Net Position
Net Revenue Net Revenue
(Expense) from (Expense) from
Services 2025 Services 2024
Water $ 810,723 $ 1,789,835
Sewer 787,584 465,230
Other (31,459) 199,494
Total $ 1,566,848 $ 2,454,559
Table 6
Business-type Activities

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
11 As of June 30, 2025, the General Fund’s fund balance totaled $6,796,714. The unassigned portion, $6,794,215 of the fund balance represents available liquid resources.

Home Loan Fund
This fund is utilized to track deferred loans receivable. There was no activity during the fiscal year.

Refuse Fund
This fund accounts for the contracted refuse services within the City. Revenue increased by 6% and expenditure increased by 7%.

Public Facilities Capital Projects Fund
This fund accounts for resources and expenditures in construction of public facilities within the City. There were no major projects completed or initiated in this fund during the fiscal year.

Proprietary Funds
Water Fund
Operating revenues were down by approximately 20% primarily as FY23/24 was the final receipt of the one million payment from the TCP123 Settlement. Operating expenses increased by 12% primarily due to the increased payroll costs including an increase in headcount, redistribution of payroll expenses, and an increase in medical expenses.

As of June 30, 2025, the fund’s net position increased from $29,734,431 to $30,548,929. Of this amount, $17,665,273 was net investment in capital assets and $12,883,656 was unrestricted.

Sewer Fund
Operating revenues increased 9% primarily from an increase in sewer capacity fees from the new homes added to Parkwood. Operating expenditures remained largely the same in the fiscal year 2025. Operating income increased by 67% due to increased revenues. The fund's net position increased by $831,092 in fiscal year 2025.

As of June 30, 2025, the fund’s net position was $37,577,468, of which $27,496,021 was net investment in capital assets and $10,081,447 was unrestricted.

CAPITAL ASSETS
GASB Statement No. 34 required the City to record all its capital assets including infrastructure, which was not recorded prior to GASB Statement No. 34. Infrastructure includes roads, bridges, signals and similar assets used by the entire population.

In fiscal year 2025, the City reported the cost of all its infrastructure assets and computed the amounts of accumulated depreciation for these assets based on their original acquisition dates. At the end of fiscal year 2025, the cost of infrastructure and other capital assets recorded on the City’s financial statements is as shown in Table 7 on the following page.

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
12 Table 7
Balance at Balance at
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:

Capital assets, not being depreciated:

Land $ 9,497,612 $ - $ - $ 9,497,612 - $
Rights of ways 2,777,617 2,777,617
Construction in progress 753,348 1,273,514 (542,973) 1,483,889 Total capital assets, not being depreciated 13,028,577 1,273,514 (542,973) 13,759,118 Capital assets, being depreciated:

Buildings 932,528 932,528
Improvements 8,763,018 526,834 9,289,852
Equipment 632,525 16,035 648,560
Machinery 188,346 24,759 16,139 229,244
Rolling stock 597,446 597,446
Infrastructure 13,559,875 13,559,875
Total capital assets being depreciated 24,673,738 40,794 542,973 25,257,505 Less accumulated depreciation for:

Buildings (705,473) (15,592) (721,065)
Improvements (2,714,380) (299,059) (3,013,439)
Equipment (444,862) (48,837) (493,699)
Machinery (173,735) (5,589) (179,324)
Rolling stock (466,220) (35,536) (501,756)
Infrastructure (6,401,546) (278,904) (6,680,450)
Total accumulated depreciation (10,906,216) (11,589,733) (683,517) Total capital assets, being depreciated, net 13,767,522 (642,723) 542,973 13,667,772 Governmental activities capital assets, net $ 26,796,099 $ 630,791 $ - $ 27,426,890 - $ Balance at Balance at
Business-type activities: June 30, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land $ 18,108,769 $ - $ - $ 18,108,769 - $
Construction in progress 12,962,664 213,417 (39,385) 13,136,696 Total capital assets, not being depreciated 31,071,433 213,417 (39,385) 31,245,465 Capital assets, being depreciated:

Buildings 28,096,186 28,096,186
Improvements 4,288,697 4,288,697
Equipment 94,424 39,385 133,809
Machinery 170,477 170,477
Infrastructure 19,002,924 19,002,924
Rolling stock 713,614 69,306 782,920
Total capital assets, being depreciated 52,366,322 69,306 39,385 52,475,013 Less accumulated depreciation for:

Buildings (11,326,944) (924,821) (12,251,765)
Improvements (3,663,012) (42,202) (3,705,214)
Equipment (92,758) (9,545) (102,303)
Machinery (170,477) (170,477)
Infrastructure (9,500,370) (265,307) (9,765,677)
Rolling stock (337,637) (108,085) (445,722)
Total accumulated depreciation (25,091,198) (1,349,960) (26,441,158) Total capital assets, being depreciated, net 27,275,124 (1,280,654) 39,385 26,033,855 Business-type activities capital assets, net $ 58,346,557 $ (1,067,237) $ - $ 57,279,320 - $ The City depreciates all its capital assets over their estimated useful lives, as required by GASB No. 34. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users. Additional information on depreciable lives may be found in the Notes to the financial statements.

CITY OF HUGHSON

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
13 DEBT ADMINISTRATION
The City issued no new bonded debt in fiscal year 2025. The City made all scheduled repayments of existing debt.

The City’s debt issues are discussed in detail in Note 7 of the financial statements. The City's debt balances as of June 30 were as follows:

ECONOMIC CONDITION, OUTLOOK, AND ACTIVITY
The City continues to see a mixed economy, with a gradual increase in property tax revenues along with increases in operating expenses and PERS unfunded accrued liabilities. Residential building continues at a steady pace within the community. Hughson's diverse land use has helped to continue a growth pattern that has resulted in economic strength for the City and a stable housing market. Overall, the City continues to be in a favorable position to attract and maintain jobs, retail establishments, and provide highly desired housing. The City continues to reach out to prospective and current business owners to continue to strengthen the City’s tax base.

Overall, the City’s financial position remains in good condition. In the upcoming fiscal year, the City estimates the sales tax revenue will remain consistent with the current reporting year, while property taxes will continue to see a gradual increase due to new residential development and the anticipated property tax reallocation sharing agreement with the county. The City also expects increases in operating and personnel costs due to ongoing inflation, supply chain issues and residential growth. The City will continue to analyze the increasing costs with the anticipated revenues. The City continues to maintain a fiscally responsible and conservative approach to its fiscal management and will continue to monitor the economic activity of the City.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Financial Report is intended to provide citizens, taxpayers, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the City of Hughson, at PO Box 9, 7018 Pine Street, Hughson, CA 95326.
2025 2024
Governmental activities
Net pension liability $ 2,244,570 $ 2,269,099
Compensated absences 158,268 124,663
Total governmental activities $ 2,402,838 $ 2,393,762
Business‑type activities
Water
Compensated absences $ 75,654 $ 44,070
Net pension liability 798,783 807,512
Installment Note Payable 3,228,068 3,482,825
Total for water fund 4,102,505 4,334,407
Sewer
Compensated absences 55,766 43,986
Net pension liability 1,112,426 1,124,583
CSWRCB Revolving Loan 8,700,268 9,199,410
Total for sewer fund 9,868,460 10,367,979
Total business‑type activities $ 13,970,965 $ 14,702,386 Table 8
LONG‑TERM LIABILITIES

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Governmental Business-type
Activities Activities Total
Assets:

Cash and Investments $ 17,839,820 $ 24,584,658 $ 42,424,478 Accounts Receivable 568,139 113,825 681,964
Leases Receivable 97,431 97,431
Loans Receivable 708,052 708,052
Prepaid Expenditures 2,499 7,258 9,757
Interest Receivable 205,178 205,178
Internal Balances 28,200 (28,200)
Capital Assets, Not Being Depreciated 13,759,118 31,245,465 45,004,583 Capital Assets, Net of Accumulated Depreciation 13,667,772 26,033,855 39,701,627 Total Assets 46,876,209 81,956,861 128,833,070
Deferred Outflows of Resources:

Pension related 626,979 533,862 1,160,841
Total Deferred Outflows of Resources 626,979 533,862 1,160,841 Liabilities:

Accounts Payable 747,292 126,108 873,400
Interest Payable 11,473 11,473
Deposits Payable 212,047 3,548 215,595
Unearned Revenue 380,289 380,289
Noncurrent Liabilities:

Net Pension Liability 2,244,570 1,911,209 4,155,779
Due Within One Year 30,000 748,639 778,639
Due in More Than One Year 128,268 11,311,117 11,439,385 Total Liabilities 3,742,466 14,112,094 17,854,560
Deferred Inflows of Resources:

Leases related 94,245 94,245
Pension related 90,972 77,462 168,434
Total Deferred Inflows of Resources 185,217 77,462 262,679 Net Position:

Net Investment in Capital Assets 27,426,890 45,350,984 72,777,874 Restricted for:

Home Loans 835,330 835,330
Community Development 1,261,644 1,261,644
Streets and Roads 4,028,170 4,028,170
Public Safety 741,946 741,946
Public Facilities 3,115,879 3,115,879
Parks and Recreation 646,034 646,034
IT Projects 53,687 53,687
Assessment Districts 723,302 723,302
Unrestricted 4,742,623 22,950,183 27,692,806
Total Net Position $ 43,575,505 $ 68,301,167 $ 111,876,672

CITY OF HUGHSON
Statement of Net Position
June 30, 2025
The notes to the financial statements are an integral part of this statement.

15 of 214
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:

Governmental Activities:

General Government $ 1,458,759 $ 661,049 $ - $ -
Public Safety 1,942,664 30,562 176,586
Community Development 342,566 583,116
Public Works 2,199,977 1,241,305 1,194,824
Parks and Recreation 551,728 3,591
Total Governmental Activities 6,495,694 2,519,623 176,586 1,194,824

Business-type Activities:

Water 1,999,325 2,810,048
Sewer 2,905,622 3,693,206
Community Facilities 49,656 18,197
Total Business-type Activities 4,954,603 6,521,451
Total Primary Government $ 11,450,297 $ 9,041,074 $ 176,586 $ 1,194,824 Taxes:

Property Taxes
Sales and Use Taxes
Business License Taxes
Other Taxes
Licenses and Permits
Fines and Forfeitures
Special Assessments
Investment Earnings
Other Revenue
Transfers
Total General Revenues and Transfers
Change in net position
Net Position - Beginning of Fiscal Year
Net Position - End of Fiscal Year
General Revenues:

The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON
Statement of Activities
For the Fiscal Year Ended June 30, 2025
Program Revenues
Functions
16

Net (Expenses) Revenues and Changes in Net Position
BusinessGovernmental type
Activities Activities Total
$ (797,710) $ - $ (797,710)
(1,735,516) (1,735,516)
240,550 240,550
236,152 236,152
(548,137) (548,137)
(2,604,661) (2,604,661)
810,723 810,723
787,584 787,584
(31,459) (31,459)
1,566,848 1,566,848
(2,604,661) 1,566,848 (1,037,813)
1,730,555 1,730,555
1,294,593 1,294,593
33,898 33,898
151,089 151,089
482,933 482,933
10,603 10,603
409,650 409,650
51,633 57,283 108,916
211,626 211,626
10,128 (10,128)
4,386,708 47,155 4,433,863
1,782,047 1,614,003 3,396,050
41,793,458 66,687,164 108,480,622
$ 43,575,505 $ 68,301,167 $ 111,876,672
17

General Home Loan Refuse
Assets:

Cash and Investments $ 6,704,798 $ 221,987 $ 209,950
Accounts Receivable 345,054 33,055
Lease Receivable 97,431
Loans Receivable 610,844
Due from Other Funds 487,427
Prepaid Expenses 2,499
Total Assets $ 7,637,209 $ 832,831 $ 243,005
Liabilities, Deferred Inflows and Fund Balances:

Liabilities:

Accounts Payable 534,203 157,180
Deposits Payable 212,047
Unearned Revenue
Due to Other Funds
Total Liabilities 746,250 157,180
Deferred Inflows of Resources:

Unearned revenue - lease 94,245
Total Deferred Inflows of Resources 94,245
Total Liabilities and Deferred Inflows of Resources 840,495 157,180 Fund Balances:

Nonspendable 2,499
Restricted for:

Home Loans 832,831
Parks and Recreation
Public Facilities
Public Safety
Streets and Roads
Community Development 85,825
IT Projects
District Assessments
Unassigned 6,794,215
Total Fund Balances 6,796,714 832,831 85,825
Total Liabilities, Deferred Inflows, and Fund Balances $ 7,637,209 $ 832,831 $ 243,005 The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON
Balance Sheet
Governmental Funds
June 30, 2025
Special Revenue
18

Capital Projects
Nonmajor Total
Public Governmental Governmental
Facilities Funds Funds
$ 3,115,879 $ 7,513,903 $ 17,766,517
190,030 568,139
97,431
97,208 708,052
487,427
2,499
$ 3,115,879 $ 7,801,141 $ 19,630,065
55,909 747,292
212,047
380,289 380,289
459,227 459,227
895,425 1,798,855
94,245
94,245
895,425 1,893,100
2,499
832,831
646,034 646,034
3,115,879 3,115,879
741,946 741,946
4,028,170 4,028,170
1,175,819 1,261,644
53,687 53,687
723,302 723,302
(463,242) 6,330,973
3,115,879 6,905,716 17,736,965
$ 3,115,879 $ 7,801,141 $ 19,630,065
19

20 This page left intentionally blank

Total fund balances - governmental funds $ 17,736,965
In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost $ 39,016,623
Accumulated depreciation (11,589,733) 27,426,890
Deferred outflows and inflows of resources relating to pensions: In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods.

In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported. 626,979
(90,972)
In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities Net pension liability (2,244,570)
Compensated absences payable (158,268)
Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service fund must be added to the statement of net position. 73,303
In governmental funds, certain accrued interest receivable on notes receivable is not available to pay for current period expenditures and, therefore, is not reported in the governmental funds. 205,178 Total net position - governmental activities $ 43,575,505 The notes to the financial statements are an integral part of this statement.

Deferred outflows related to pension
Deferred inflows related to pension

CITY OF HUGHSON
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2025

21 of 214
General Home Loan Refuse
Revenues
Property Taxes $ 1,730,555 $ - $ -
Sales and Use Taxes 1,294,593
Business License Taxes 33,898
Other Taxes 151,089
Licenses and Permits 482,933
Fines and Forfeitures 10,603
Interest 40,644 273
Charges for Services 661,049 1,002,112
Intergovernmental 85,763
Special Assessments
Other 211,495
4,702,622 1,002,385
Expenditures
Current:

General Government 1,188,231
Public Safety 1,931,874
Public Works 470,044 1,006,094
Parks and Recreation 148,370
Community Development 342,546
Capital Outlay 25,158
4,106,223 1,006,094
Excess (Deficiency) of Revenues over
(under) Expenditures 596,399 (3,709)
Other Financing Sources (Uses):

Transfers In 393,409
Transfers Out (115,667)
Total Other Financing Sources (Uses) 277,742
Net Change in Fund Balances 874,141 (3,709)
Fund Balances - July 1, 2024 5,922,573 832,831 89,534
Fund Balances - June 30, 2025 $ 6,796,714 $ 832,831 $ 85,825 The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the Fiscal Year Ended June 30, 2025
Special Revenue

22 of 214
Capital Projects
Nonmajor Total
Governmental Governmental
Facilities Funds Funds
$ - $ 1,730,555 - $
1,294,593
33,898
151,089
482,933
10,603
3,046 7,670 51,633
435,792 420,670 2,519,623
1,285,647 1,371,410
409,650 409,650
131 211,626
438,838 2,123,768 8,267,613
1,188,231
10,790 1,942,664
427,940 1,904,078
98,021 246,391
20 342,566
1,321,482 1,346,640
1,858,253 6,970,570
438,838 265,515 1,297,043
24,815 418,224
(292,429) (408,096)
(267,614) 10,128
438,838 (2,099) 1,307,171
2,677,041 6,907,815 16,429,794
$ 3,115,879 $ 6,905,716 $ 17,736,965
Public

23 of 214
Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds $ 1,307,171 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those capital assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlay in the current period.

Capital outlay $ 1,314,308
Depreciation expense (683,517) 630,791
Compensated absence expenditures reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in a governmental fund. This is the net change in compensated absences for the current period. (33,605)
(122,310)
Change in net position of governmental activities $ 1,782,047

CITY OF HUGHSON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2025
In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis.

This fiscal year, the difference between accrual-basis pension costs and actual employer contributions was:

The notes to the financial statements are an integral part of this statement. 25

Governmental
Activities
Nonmajor Internal
Sewer Water Enterprise Service
Fund Fund Funds Total Fund
Assets
Current Assets:

Cash and Investments $ 10,979,592 $ 13,584,710 $ 20,356 $ 24,584,658 $ 73,303 Accounts Receivable, Net 83,971 29,854 113,825
Prepaid Expenses 7,258 7,258
Total Current Assets 11,070,821 13,614,564 20,356 24,705,741 73,303 Noncurrent Assets:

Capital Assets:

Land 15,075,537 2,928,159 105,073 18,108,769
Buildings 25,243,237 2,127,666 725,283 28,096,186
Machinery and Equipment 825,476 261,730 1,087,206
Improvements Other Than Buildings 114,514 4,174,183 4,288,697 Infrastructure 12,900,415 6,102,509 19,002,924
Construction in Progress 111,442 13,025,254 13,136,696
Less:

Accumulated Depreciation (18,074,332) (7,726,160) (640,666) (26,441,158) Total Noncurrent Assets 36,196,289 20,893,341 189,690 57,279,320 Deferred Outflows of Resources:

Pension related 310,736 223,126 533,862
Total Deferred Outflows of Resources 310,736 223,126 533,862 Total Assets and Deferred Outflows of Resources 47,577,846 34,731,031 210,046 82,518,923 73,303 Liabilities
Current Liabilities:

Accounts Payable 86,831 35,749 3,528 126,108
Interest Payable 11,473 11,473
Due to Other Funds 28,200 28,200
Deposits Payable 3,548 3,548
Total Current Liabilities 86,831 47,222 35,276 169,329
Noncurrent Liabilities:

Compensated Absences 40,766 60,654 101,420
Net Pension Liability 1,112,426 798,783 1,911,209
Due within One Year 519,133 229,506 748,639
Due in More Than One Year 8,196,135 3,013,562 11,209,697 Total Noncurrent Liabilities 9,868,460 4,102,505 13,970,965 Deferred Inflows of Resources:

Pension related 45,087 32,375 77,462
Total Deferred Inflows of Resources 45,087 32,375 77,462 Total Liabilities and Deferred Inflows of Resources 10,000,378 4,182,102 35,276 14,217,756 Net Position
Net Investment in Capital Assets 27,496,021 17,665,273 189,690 45,350,984 Unrestricted 10,081,447 12,883,656 (14,920) 22,950,183 73,303 Total Net Position $ 37,577,468 $ 30,548,929 $ 174,770 $ 68,301,167 $ 73,303 The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-type Activities-Enterprise Funds
26

Governmental
Activities
Nonmajor Internal
Sewer Water Enterprise Service
Fund Fund Funds Total Fund
Operating Revenues:

Charges for Services $ 3,685,231 $ 2,810,048 $ 18,197 $ 6,513,476 $ - Other 7,975 7,975
Total Operating Revenues 3,693,206 2,810,048 18,197 6,521,451

Operating Expenses:

Personnel 566,519 575,630 1,142,149
Administrative 408,226 204,096 612,322
Materials and Supplies 769,593 807,719 23,942 1,601,254 Maintenance 42,943 91,498 1,538 135,979
Depreciation 1,100,009 225,775 24,176 1,349,960
Total Operating Expenses 2,887,290 1,904,718 49,656 4,841,664 Operating Income (loss) 805,916 905,330 (31,459) 1,679,787 Non-operating Revenues (Expenses):

Interest Revenue 48,508 8,775 57,283
Interest Expense (18,332) (94,607) (112,939)
Total Non-Operating Revenue (Expenses) 30,176 (85,832) (55,656) Income (Loss) before transfers 836,092 819,498 (31,459) 1,624,131 Transfers
Transfers In 1,128,502 185,482 8,025 1,322,009
Transfers Out (1,133,502) (190,482) (8,153) (1,332,137) Net Transfers (5,000) (5,000) (128) (10,128)
Change in Net Position 831,092 814,498 (31,587) 1,614,003 Net Position - Beginning of Fiscal Year 36,746,376 29,734,431 206,357 66,687,164 73,303 Net Position - End of Fiscal Year $ 37,577,468 $ 30,548,929 $ 174,770 $ 68,301,167 $ 73,303 The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2025
Business-type Activities - Enterprise funds
27

Governmental
Activities
Nonmajor Internal
Sewer Water Enterprise Service
Fund Fund Funds Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from Users $ 3,690,945 $ 4,737,439 $ 19,213 $ 8,447,597 $ - Cash Payments to Suppliers and Contractors (1,243,559) (1,147,833) (25,457) (2,416,849) Cash Payments to Employees (494,121) (500,518) (994,639) Net Cash Provided (Used) By Operating Activities 1,953,265 3,089,088 (6,244) 5,036,109 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers In 1,128,502 185,482 8,025 1,322,009
Transfers Out (1,133,502) (190,482) (8,153) (1,332,137) Interfund Borrowing 10,336 10,336
Net Cash Provided (Used) By Noncapital Financing Activities (5,000) (5,000) 10,208 208 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received 48,508 8,775 57,283
Net Cash Provided (Used) in Investing Activities 48,508 57,283 8,775

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:

Acquisition of Property, Plant, and Equipment (135,748) (156,442) (292,190) Principal Payments on Debt Borrowings (499,142) (210,274) (709,416) Interest Paid (86,790) (141,430) (228,220)
Net Cash Provided (Used) In Capital and Related
Financing Activities (721,680) (508,146) (1,229,826)

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,275,093 2,584,717 3,964 3,863,774
CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 9,704,499 10,999,993 16,392 20,720,884 73,303 CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 10,979,592 $ 13,584,710 $ 20,356 $ 24,584,658 $ 73,303 Reconciliation to Statement of Net Position:

Cash and Investments $ 10,979,592 $ 13,584,710 $ 20,356 $ 24,584,658 $ 73,303 $ 10,979,592 $ 13,584,710 $ 20,356 $ 24,584,658 $ 73,303 CASH FLOWS FROM OPERATING ACTIVITIES:

Operating Income (Loss) $ 805,916 $ 905,330 $ (31,459) $ 1,679,787 $ - Adjustment to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by Operating
Activities:

Depreciation 1,100,009 225,775 24,176 1,349,960
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (2,261) 1,927,391 964 1,926,094 (Increase) Decrease in Prepaid Expenses (7,258) (7,258) Increase (Decrease) in Accounts Payable (15,539) (44,520) 23 (60,036) Increase (Decrease) in Compensated Absences 11,780 31,584 43,364 Increase (Decrease) in Net Pension Liability 60,618 43,528 104,146 Increase (Decrease) in Deposits Payable 52 52
Total Adjustments 1,147,349 2,183,758 25,215 3,356,322
Net Cash Provided (Used) By Operating Activities $ 1,953,265 $ 3,089,088 $ (6,244) $ 5,036,109 $ - Business-type Activities - Enterprise Funds
Totals
The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2025
28

29 FIDUCIARY FUNDS
______________________________
Agency Funds and Private Purpose Trust Funds are used to account for the receipt and disbursement of various taxes, deposits, deductions, and property collected by the City, acting in the capacity of an agent for distribution to other governmental units or other organizations. The private purpose trust fund maintained by the City is presented below. ______________________________
RDA Successor Agency - This fund accounts for the former redevelopment agency.

30 This page left intentionally blank

Private Purpose
Trust Fund
RDA
Successor
Agency
ASSETS
Cash and investments $ 383,087
Accounts receivable 47,358
Capital assets, net of accumulated depreciation 410,027 Total Assets 840,472

LIABILITIES
Interest payable 21,738
Long-term debt, due within one year 117,628
Long-term debt, due in more than one year 1,593,908
Total Liabilities 1,733,274

NET POSITION
Held in trust for others (892,802)
Total Net Position $ (892,802)
The notes to the financial statements are an integral part of this statement. 31 CITY OF HUGHSON

FIDUCIARY FUND

STATEMENT OF NET POSITION
June 30, 2025

Private Purpose
Trust Fund
RDA
Successor
Agency
Additions:

Intergovernmental $ 339,983
Interest 2,845
Total additions 342,828
Deductions:

Community Development 8,424
Depreciation 27,490
Interest Expense 73,240
Contribution to City 97,100
Total deductions 206,254
Change in net position 136,574
Net Position - July 1, 2024 (1,029,376)
Net Position - June 30, 2025 $ (892,802)
32 The notes to the financial statements are an integral part of this statement.

CITY OF HUGHSON

FIDUCIARY FUND

STATEMENT OF CHANGES IN NET POSITION
For the Fiscal Year Ended June 30, 2025

NOTES TO BASIC FINANCIAL STATEMENTS

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
33 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Hughson (City) was incorporated in December 1972. The City is a general law city operating under the Council-Manager form of government, with a five member City Council elected for four-year overlapping terms. The City Manager is appointed by the City Council to serve as administrator of the staff and to carry out the Council’s policies.

As required by accounting principles generally accepted in the United States of America (USGAAP), these basic financial statements present the City of Hughson (the primary government) and any component units.

Individual Component Unit Disclosures
There are no entities which meet the Governmental Accounting Standards Board (GASB) Statement No.14 as amended by GASB Statement No. 39, GASB Statement No. 61, and GASB Statement No. 80 criteria for disclosure within these financial statements.

B. Basis of Presentation
Government-wide Financial Statements
The statement of net position and statement of activities display information about the primary government (the City). These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.

Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

When both restricted and unrestricted net positions are available, unrestricted resources are used only after the restricted resources are depleted.

Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds; each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
34 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Proprietary funds distinguish operating revenues, such as charges for services, and result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports four major governmental funds:
 The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes activities such as public protection, public works and facilities, parks and recreation, and community development.
 The Home Loan Special Revenue Fund was established to account for all proceeds of grant revenues from the federal government under the First Time Home Buyer federal grant program and from the State of California’s CalHome grant program. The expenditures relate to payments made to eligible recipients for buying homes subject to fulfillment of conditions.
 The Refuse Special Revenue Fund was established to account for monies collected on behalf of a franchise garbage collection company.
 The Public Facilities Capital Projects Fund was established to account for all proceeds from traffic mitigation fees, whose purpose is to defray the actual costs of constructing improvements to mitigate traffic and circulation impacts resulting from proposed new development.

The City reports the following two major enterprise funds:
 The Sewer Fund was established to account for the financial activity for the purpose of operation and maintenance of the City’s sewer system including the wastewater treatment plant. The costs of providing these services to the general public are financed or recovered through user charges.  The Water Fund was established to account for the financial activity for the purpose of operation and maintenance of City’s water utility. The costs of providing these services to the general public are financed or recovered through user charges.

The City reports the following additional fund types:

Internal Service Fund account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis for insurance.

Fiduciary Funds
Private Purpose Trust Fund accounts for the operations of the former redevelopment agency.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
35 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting and Measurement Focus
The government-wide, proprietary, and fiduciary funds financial statements except for Agency Funds (that have no measurement focus) are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after fiscal year-end. Expenditures are recorded when the related fund liability is incurred, except for debt service expenditures which are recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long-term debt and capital leases are reported as other financing sources.

Property taxes, transient occupancy taxes, and interest are susceptible to accrual. Sales taxes collected and held by the state at fiscal year-end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time.

Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

D. Assets, Liabilities, and Equity

1. Deposits and Investments
In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures.

The cash and investments balance in each fund represents that fund’s equity share of the City’s cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund’s equity in the pool, the pool operates like a demand deposit account for the participating funds.

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

In accordance with the State of California Government Code, the City adopts an investment policy annually that, among other things, authorizes types and concentrations of investments and maximum investment terms.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
36 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

1. Deposits and Investments (Continued)
The City’s investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of its portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. Changes in fair value are allocated to each participating fund.

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

Investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Short-term investments are reported at cost, which approximates fair value. The fair values are based on quoted market prices, if available, or estimated using quoted market prices for similar securities. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Interest, dividends, and realized and unrealized gains and losses, based on the specific identification method, are included in interest revenue when earned.

2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

The City's property taxes are levied on the first day of January by the County assessor, and are payable to the County tax collector in two installments. The first installment is due November 1st, and is delinquent after December 10th; the second installment is due February 1st and is delinquent after April 10th. Taxes become a lien on the property on January 1st, and on the date of the transfer of the title, and the date of new construction.

Article 13A of the California Constitution states: “The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent tax is to be collected by the Counties and apportioned according to law to the districts within the counties.” The City has elected under State law (TEETER) to receive all of the annual property assessments in three installments as follows:
55% in December, 40% in April and 5% in June.

GASB issued Statement No. 87 “Leases” to better meet the information needs of financial statements users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease asset and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
37 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

2. Receivables and Payables (Continued)
It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement a lessee is required to recognize a lease liability and an intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

3. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

4. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. As a phase 3 government under GASB Statement 34, the City has elected to restate its capital assets as of July 1, 2008, to report infrastructure assets acquired prior to June 30, 2003. The City has determined that it is preferable to report all City infrastructure to provide for more accurate reporting. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are valued at the fair value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’ lives are not capitalized. The City utilizes a capitalization threshold of $5,000.

Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Buildings and improvements 30 years
Vehicles 5 years
Machinery and equipment 5 to 15 years
Infrastructure 50 to 80 years

5. Compensated Absences
Depending upon length of employment, City employees earn vacation leave, sick leave, accrued holiday and compensated time which may be either used or accumulated until paid upon termination or retirement. Upon termination, the City is obligated to compensate employees for all earned but unused vacation days. Unused sick leave may be accumulated to 125 days. The earned but unused sick leave benefits are not payable in the event of employee termination but 25% of the unused accumulated sick leave is paid upon retirement of employees with more than twenty years of continued service.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
38 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

5. Compensated Absences (Continued)
A liability is accrued for all earned but unused leave benefits in the government-wide and enterprise fund statements. This liability will be liquidated as either additional cash payments in the event of employee termination or as part of budgeted salary expenditures if used by employees as compensated leave time while still employed by the City. In the fund financial statements governmental funds accrue current liabilities for material vacation leave benefits due on demand to governmental fund employees that have terminated prior to fiscal year-end. Non-current amounts will be recorded as fund expenditures in the year in which they are paid or become due on demand to terminated employees.

6. Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has deferred outflows from net pension liability In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City recognizes deferred inflow and outflows of resources pursuant to GASB Statement No. 68 and 71 regarding Pension. The City also recognizes deferred inflow of resources pursuant to GASB Statement No. 87 regarding leases receivable. The City also recognizes unavailable revenue, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from sources such as: property taxes, grant revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statements of net position. Debt premiums and discounts are deferred and amortized over the life of the indebtedness using the straight line method. Notes payable are reported net of the applicable bond premium or discount.

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

GASB Statement No. 88 defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. Additional essential information related to debt required to be disclosed includes unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
39 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued)

8. Net Position
The government-wide financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

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

Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

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

When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the City’s policy is to apply restricted resources first.

E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

F. Fund Balance
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent. The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. • Nonspendable fund balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact. • Restricted fund balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. • Committed fund balance – amounts that can only be used for specific purposes determined by formal action of the City’s highest level of decision-making authority (the City Council) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.
• Assigned fund balance – amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, or by a body or an official designated for that purpose.
• Unassigned fund balance – the residual classification for the City’s funds that include amounts not contained in the other classifications.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
40 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. New GASB Accounting Pronouncements
Implementation of New Accounting Pronouncements
GASB Statement No. 101, Compensated Absences - This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave.The implementation of this Statement did not have a financial impact on the City for the fiscal year ended June 30, 2025.

The provisions of Statement Number 102 “Certain Risk Disclosures” are effective for fiscal year ended June 30, 2025. The implementation of this Statement did not have a financial impact on the City for the fiscal year ended June 30, 2025.

Upcoming Accounting and Reporting Changes
GASB Statements listed below will be implemented in future financial statements.

The provisions of Statement Number 103 “Financial Reporting Model Improvements” are effective for fiscal years beginning after June 15, 2025.

The provisions of Statement No. 104 “Disclosure of Certain Capital Assets” are effective for fiscal years beginning after June 15, 2025.

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
The City Council adopts an Annual Budget no later than the second meeting of June of each year for the fiscal year commencing the following July 1. The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. During May of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the next following fiscal year. The operating budget includes proposed revenues and expenditures.

2. After a review by the City Council, a public hearing is conducted and further comment is received from the City Council and the general public.

3. Upon completion of the hearings and modifications, if any, to the proposed budget, it is adopted by the City Council through passage of an appropriate resolution.

4. Generally, the budget is amended in the middle of the year and at the end of the fiscal year. All approved additional appropriations are added to the adopted budget and an amended budget is presented to the City Council, which adopts it after due review.

5. The City Manager is authorized to make transfers between operational expenditure categories within certain departments and funds.

6. City Council approval is required for all fund to fund transfers, department to department transfers, fund reserve to appropriations transfers, transfers for new revenue sources with offsetting appropriations, and for transfer to/from the capital expenditure category.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
41 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) B. Budget/USGAAP Reconciliation
No funds adopted project-length or budgetary basis budgets and, therefore, no schedule reconciling the amounts on the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget to Actual to the amounts on the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances has been prepared.

C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2025, the following funds had an excess of expenditures over appropriations.

Final Actual
Fund Budget Amount Excess
Major Governmental Fund:

Refuse Special Revenue Fund $ 930,000 $ 1,006,094 $ 76,094 Nonmajor Governmental Funds:

Gas Tax Special Revenue Fund 115,000 115,408 408
Lighting and Landscaping Special Revenue Fund 218,384 233,980 15,596 IT Reserve Special Revenue Fund 20,000 83,022 63,022
The Home Loan, Local Transportation, Asset Forfeiture, CDBG Grants, Public Safety Augmentation, Trench Cut, Transportation, and Covid Recovery funds did not adopt a budget.

D. Deficit Fund Equity
At June 30, 2025, the following funds had an accumulated deficit:

Fund Amount
Nonmajor Governmental Fund:

Transportation Capital Projects Fund (Fund 420, 425) $ 263,247 Parks Development Impact Fees Capital Projects Fund 199,995 Nonmajor Proprietary Fund:

USF Community Center Fund (Fund 280) 28,465
Private Purpose Trust Fund:

RDA Successor Agency (Fund 520) 892,801

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
42 NOTE 3 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 42,424,478
Fiduciary funds:

Cash and investments 383,087
Total cash and investments $ 42,807,565
Cash and investments as of June 30, 2025 consist of the following:

Cash on hand $ 425
Deposits with financial institutions 39,841,328
Investments 2,965,812
Total cash and investments $ 42,807,565
A. Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City of Hughson (City) by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Bonds issued by the City N/A None None
US Treasury Obligations 5 years None None
Federal Agency Issues 5 years None None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Bankers' Acceptances 180 days 40% 30%
Medium Term Notes 5 years 30% None
Money Market Mutual Funds N/A None 10%
Commercial Paper 270 days 25% None
County Pool Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 Million Collateralized Bank Deposits N/A None None
Mortgage Pass-through Securities 5 years 20% None
Shares of Beneficial Interest by a JPA N/A None None
Authorized Investment Type
The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
43 NOTE 3 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the Investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Local Agency Bonds N/A None None
U.S. Treasury Obligations N/A None None
State Obligations N/A None None
U.S. Government Agency Issues N/A None None
Money Market Mutual Fund N/A None None
Bankers Acceptances N/A None None
Commercial Paper 270 days None None
Certificates of Deposit N/A None None
Repurchase Agreements N/A None None
Investment Agreements N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Authorized Investment Type
The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

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

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25-60 More Than 60
Totals or Less Months Months Months
State Investment Pool (LAIF) 94,137 $ $ 94,137 $ - $ - $ - Certificates of Deposit 2,546,217 776,276 924,853 845,088 Medium Term Notes 325,458 325,458
$ 2,965,812 $ 1,195,871 $ 924,853 $ 845,088 $ -
Remaining maturity (in Months)
Investment Type
D. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
44 NOTE 3 – CASH AND INVESTMENTS (Continued)
Minimum Exempt
Legal From Not
Investment Type Amount Rating Disclosure AAA AA A Rated State Investment Pool $ N/A - 94,137 $ - $ - $ $ - $ 94,137 Certificates of Deposit 2,546,217 N/A 2,546,217
Medium Term Notes N/A 325,458 325,458
Total $ 2,965,812 $ - $ - $ - $ 325,458 $ 2,640,354
Rating as of Fiscal Year End
E. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City investments.

F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2025, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

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

H. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy establish by generally accepted accounting principles. These principles recognize a three tiered fair value hierarchy as follows: Level 1 – Investments reflect prices quoted in active markets; Level 2 – Investments reflect prices that are based on similar observable asset either directly or indirectly, which may include inputs in markets that are not considered active; and Level 3 – Investments reflect prices based upon unobservable sources. The City did not have any investments applicable to recurring fair value measurements as of June 30, 2025.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
45 NOTE 4 – INTERFUND TRANSACTIONS
A. Interfund Receivables and Payables
During the course of normal operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds”. The following presents a summary of current interfund balances at June 30, 2025:

Amount Amount
Major Governmental Fund: Nonmajor Governmental Fund:

General Fund $ 487,427 Transportation Capital Projects Fund $ 259,232 Parks Development Impact Fees Capital Projects Fund 199,995 Nonmajor Enterprise Fund:

USF Community Center Fund 28,200
Totals $ 487,427 Totals $ 487,427
Receivable Fund Payable Fund
B. Transfers between Funds
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, and re-allocations of special revenues. All interfund transfers between individual governmental funds have been eliminated on the government-wide statements. The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2025:

Transfers-in Transfers-out
Major Governmental Funds:

General Fund $ 393,409 $ 115,667
Major Enterprise Funds:

Water Fund 185,482 190,482
Sewer Fund 1,128,502 1,133,502
Nonmajor Governmental Funds:

Gas Tax Special Revenue Fund 9,815 49,792
Vehicle Abatement Special Revenue Fund 37,000
SLESF Special Revenue Fund 160,500
Lighting and Landscaping Special Revenue Fund 28,295
Benefit Assessment Special Revenue Fund 13,204
IT Reserve Special Revenue Fund 15,000
CFD Special Revenue Fund 3,638
Nonmajor Enterprise Funds:

Community Center Operations Fund 8,025 8,153
Totals $ 1,740,233 $ 1,740,233
Fund

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
46 NOTE 5 – CAPITAL ASSETS
Capital Asset activity for the fiscal year ended June 30, 2025 was as follows:

Balance at Balance at
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:

Capital assets, not being depreciated:

Land $ 9,497,612 $ - $ - $ 9,497,612 - $
Rights of ways 2,777,617 2,777,617
Construction in progress 753,348 1,273,514 (542,973) 1,483,889 Total capital assets, not being depreciated 13,028,577 1,273,514 (542,973) 13,759,118 Capital assets, being depreciated:

Buildings 932,528 932,528
Improvements 8,763,018 526,834 9,289,852
Equipment 632,525 16,035 648,560
Machinery 188,346 24,759 16,139 229,244
Rolling stock 597,446 597,446
Infrastructure 13,559,875 13,559,875
Total capital assets being depreciated 24,673,738 40,794 542,973 25,257,505 Less accumulated depreciation for:

Buildings (705,473) (15,592) (721,065)
Improvements (2,714,380) (299,059) (3,013,439)
Equipment (444,862) (48,837) (493,699)
Machinery (173,735) (5,589) (179,324)
Rolling stock (466,220) (35,536) (501,756)
Infrastructure (6,401,546) (278,904) (6,680,450)
Total accumulated depreciation (10,906,216) (11,589,733) (683,517) Total capital assets, being depreciated, net 13,767,522 (642,723) 542,973 13,667,772 Governmental activities capital assets, net $ 26,796,099 $ 630,791 $ - $ 27,426,890 - $ Balance at Balance at
Business-type activities: June 30, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land $ 18,108,769 $ - $ - $ 18,108,769 - $
Construction in progress 12,962,664 213,417 (39,385) 13,136,696 Total capital assets, not being depreciated 31,071,433 213,417 (39,385) 31,245,465 Capital assets, being depreciated:

Buildings 28,096,186 28,096,186
Improvements 4,288,697 4,288,697
Equipment 94,424 39,385 133,809
Machinery 170,477 170,477
Infrastructure 19,002,924 19,002,924
Rolling stock 713,614 69,306 782,920
Total capital assets, being depreciated 52,366,322 69,306 39,385 52,475,013 Less accumulated depreciation for:

Buildings (11,326,944) (924,821) (12,251,765)
Improvements (3,663,012) (42,202) (3,705,214)
Equipment (92,758) (9,545) (102,303)
Machinery (170,477) (170,477)
Infrastructure (9,500,370) (265,307) (9,765,677)
Rolling stock (337,637) (108,085) (445,722)
Total accumulated depreciation (25,091,198) (1,349,960) (26,441,158) Total capital assets, being depreciated, net 27,275,124 (1,280,654) 39,385 26,033,855 Business-type activities capital assets, net $ 58,346,557 $ (1,067,237) $ - $ 57,279,320 - $

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
47 NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation
Depreciation expense was charged to governmental functions as follows:

General Government $ 131,415
Public Works 246,765
Parks and Recreation 305,337
Total depreciation expense – governmental functions $ 683,517 Depreciation expense was charged to business-type functions as follows:

Sewer $ 1,100,009
Water 225,775
Community Facilities 24,176
Total depreciation expense – business-type functions $ 1,349,960 NOTE 6 – NOTES RECEIVABLE
The City has established a number of housing assistance loan programs using HOME Investment Partnerships Program grant funds. These loans consist of several loans for first-time home buyers assistance and home rehabilitation assistance loans for qualified persons. The City also utilizes Community Development Block Grant (CDBG) funds to provide business assistance loans and home rehabilitation loans to qualified persons.

NOTE 7 – LONG-TERM LIABILITIES
The following is a schedule of long-term liabilities for Governmental Activities and Business-type Activities for the fiscal year ended June 30, 2025:

Balance at Balance at Due Within
June 30, 2024 Additions Repayments June 30, 2025 One Year Governmental Activities:

Compensated absences $ 124,663 $ 58,856 $ (25,251) $ 158,268 $ 30,000 Total $ 127,746 $ 58,856 $ (25,251) $ 158,268 $ 30,000
Business-type Activities:

Compensated absences $ 88,056 $ 88,615 $ (45,251) $ 131,420 $ 30,000 Debt from direct borrowings and direct placements
Installment note payable - Water 333,250 (163,539) 169,711 169,711 Installment sale agreement - Water 3,149,575 (91,218) 3,058,357 44,795 CSWRCB Revolving Loan 9,199,410 (499,142) 8,700,268 504,133 Total $ 12,770,291 $ 88,615 $ (799,150) $ 12,059,756 $ 748,639

1. Compensated Absences
The City’s policy relating to compensated absences is described in Note (1). Compensated absences are liquidated primarily by the general fund and proprietary funds. The total amount outstanding at June 30, 2025, was $158,268 for governmental activities and $131,420 for business-type activities.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
48 NOTE 7 – LONG-TERM LIABILITIES (Continued)

2. Business -type Activities – Direct Borrowings and Placements of Debt - Installment Notes Payable
On February 27, 2006 the City executed an installment note agreement with Municipal Finance Corporation for the acquisition and construction of a 750,000 gallon water storage tank to meet fire flow requirements and pledged the City’s Water Fund as the specific revenue source for the repayment of the note. The note bears interest at 3.4%, with principal payments varying from $37,010 to $85,287, payable semi-annually beginning September 29, 2006, and continuing until March 29, 2026. The balance outstanding at June 30, 2025 is $169,711.

In the event of a default the full outstanding balance of the note immediately becomes due and payable.

Annual debt service requirements for the Installment Notes Payable are shown below:

Fiscal Year
Ended June 30, Principal Interest Total
2026 $ 169,711 $ 4,326 $ 174,037
$ 169,711 $ 4,326 $ 174,037
Installment Notes Payable - Water

3. Business -type Activities - Direct Borrowings and Placements of Debt - California State Water Resources Control Board (CSWRCB) Revolving Loan
On September 10, 2009, the City entered into a project finance agreement with the California State Water Resource Control Board (Water Control Board) and pledged the City’s Water Fund as the specific revenue source for the repayment of the loan. Through the use of ARRA funds, the Water Control Board provided funding assistance in the amount of $23,100,000 for the rehabilitation and upgrade of the wastewater treatment plant. The City does not pay interest on this loan. This Loan was restructured during the fiscal year ended June 30, 2021, to extend the payment period by 10 years. The term of the agreement is now June 16, 2009, to June 7, 2041. The balance outstanding at June 30, 2025 is $8,700,268.

In the event of a default, the full outstanding balance of the loan immediately becomes due and payable.

Annual debt service requirements for the CSWRCB Loan are shown below:

Fiscal Year
Ended June 30, Principal Interest Total
2026 $ 504,133 $ - $ 504,133
2027 509,175 509,175
2028 514,267 514,267
2029 519,409 519,409
2030 524,603 524,603
2031-2035 2,702,764 2,702,764
2036-2040 2,840,632 2,840,632
2041 585,285 585,285
$ 8,700,268 $ - $ 8,700,268
CSWRCB Loan

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
49 NOTE 7 – LONG-TERM LIABILITIES (Continued)

4. Business -type Activities - Direct Borrowings and Placements of Debt – Installment Sale Agreement
On September 30, 2023, the City entered into a project finance agreement with the California State Water Resource Control Board (Water Control Board) and pledged the City’s Water Fund as the specific revenue source for the repayment of the loan. The Water Control Board provided grant component in the amount of $8,470,893 and principal forgiveness component of $1,153,679 for the rehabilitation, replacement and arsenic treatment of Well No.7. The City must repay the project funds at an interest rate of 1.4% per annum. Repayments begin on January 4, 2024 and will end on July 1, 2053. The balance outstanding at June 30, 2025 is $3,058,357.

In the event of a default, the full outstanding balance of the loan immediately becomes due and payable.

Annual debt service requirements for the installment sale agreement are shown below:

Fiscal Year
Ended June 30, Principal Interest Total
2026 $ 44,795 $ 43,128 $ 87,923
2027 90,534 41,874 132,408
2028 91,805 40,602 132,407
2029 93,095 39,312 132,407
2030 94,403 38,004 132,407
2031-2035 492,286 169,752 662,038
2036-2040 527,852 134,186 662,038
2041-2045 565,988 96,050 662,038
2046-2050 606,879 55,160 662,039
2051-2054 450,720 12,248 462,968
$ 3,058,357 $ 670,316 $ 3,728,673
Installment Sale Agreement
NOTE 8 – RISK MANAGEMENT
Central San Joaquin Valley Risk Management Authority
The City participates with other public entities in a joint exercise of powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes. The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $10,000 and worker’s compensation losses under $10,000.

The CSJVRMA participates in an excess pool which provides general liability coverage from $1,000,000 to $10,000,000. The CSJVRMA participates in an excess pool which provides workers’ compensation coverage from $350,000 to $500,000 and purchases excess insurance above the $500,000 to the statutory limit. The CSJVRMA is a consortium of fifty-five (55) cities in the San Joaquin Valley of California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-today business is handled by a management group employed by the CSJVRMA.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
50 NOTE 9 – PROPRIETARY FUNDS INFORMATION
The City maintains four enterprise funds. The Water and Sewer funds account for the provision of basic utility services to all citizens. The Community Center Operations fund and USF Community Center fund are utilized to maintain the operations and maintenance of the City’s community center.

NOTE 10 – COMMITMENTS AND CONTINGENCIES
Operating Leases
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. The statement enhances the relevance and consistency of reporting for the Hospital Enterprise Fund’s leasing activities by establishing requirements for lease accounting based on the principle that leases are financings of underlying right-to-use assets. A lessee is required to recognize a lease liability and intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and deferred inflow of resources. The City adopted this guidance for the fiscal year ended June 30, 2022. The City has one lease recorded as lessor and no leases where the City is a lessee. There were no additional leases recognized during the fiscal year ended June 30, 2025.

Claims Liability
The City is subject to litigation arising in the normal course of business. In the opinion of the City’s management, there is no pending litigation that is likely to have a material adverse effect on the financial position of the City.

NOTE 11 – OTHER POST EMPLOYMENT BENEFITS
The City does not offer any other post-employment benefits.

NOTE 12 – PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS’ Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, cost sharing defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
51 NOTE 12 – PENSION PLAN (Continued)
A. General Information about the Pension Plan (Continued) The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported net pension liabilities for its proportionate share of the net pension liability of the Plan as follows:

Misc. Plan Safety Plan
$ 3,200,908 $ 954,871
Proportionate Share of Net Pension
Liability
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

City Miscellaneous City Safety
Plan Plan
Proportion - June 30, 2023 0.06420% 0.01326%
Proportion - June 30, 2024 0.06618% 0.01310%
Change - Increase (Decrease) 0.00198% -0.00016%
City Safety Plan
Hire date
Prior to January
1, 2013
On or after January
1, 2013
Prior to January 1,
2013
Benefit formula 2.7% @ 55 2% @ 62 3.0% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 55 62 50
Monthly benefits, as a % of eligible compensation 2% to 2.7% 2.00% 3.0% Required employee contribution rates 8% 6.25% n/a
Required employer contribution rates 11.634% 6.555% n/a City Misc Plan

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
52 NOTE 12 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the fiscal year ended June 30, 2025, the City recognized pension expense of $427,677. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 438,695 $ - Net differences between projected and actual earnings on pension plan investments 230,427
Differences based on actual experience 354,674 (13,332) Differences based on change of assumptions 105,796
Differences between actual vs proportionate contribution 27,460 (39,876) Adjustment due to differences in proportions 3,789 (115,226) Total $ 1,160,841 $ (168,434)
$438,695 reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026.

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

Fiscal Year Ended
June 30, Amount
2026 $ 135,954
2027 499,604
2028 (2,907)
2029 (78,939)
$ 553,712
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
53 NOTE 12 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation All other actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the fiscal years 1997 to 2021, including updates to salary increase, mortality, and retirement rates. The experience study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate - The discount rate used to measure the total pension liability (asset) for PERF C was 6.90%.

The projection of cash flows used to determine the discount rate assumed the contributions from plan members will be made at the current member contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability (asset).

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach.

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

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 3.00% 3.00%
Projected Salary Increase 3.30%-14.20% (1) 3.30%-14.20% (1) Investment Rate of Return 7.50% (2) 7.50% (2)
Mortality
Entry-Age Normal Cost Method
Derived using CalPERS' Membership Data for
all Funds

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
54 NOTE 12 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These rates of return are net of administrative expenses.

Assumed
Asset Real Return
Asset Class Allocation Years 1 - 10(a) (b)
Global Equity - cap-weighted 30.00% 4.54%
Global Equity - non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.3% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

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

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $ 4,702,307 $ 1,436,704
Current Discount Rate 6.90% 6.90%
Net Pension Liability $ 3,200,908 $ 954,872
1% Increase 7.90% 7.90%
Net Pension Liability $ 1,965,035 $ 560,802
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS’ financial reports.

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
55 NOTE 13 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California.

The Bill provides that upon dissolution of a redevelopment agency, either the city or other unit of local government will agree to serve as the “successor agency” to hold the assets units until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 2012-04.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as of the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

A. Long-term debt of the Successor Agency as of June 30, 2025, consisted of the following:

Balance Balance Due within
June 30, 2024 Additions Deletions June 30, 2025 one year Tax Allocation Bonds $ 1,855,000 -$ (115,000) $ $ 1,740,000 120,000$ Original Issuance Discount (30,836) 2,372 (28,464) (2,372) - - Totals $ 1,824,164 $ - $ (112,628) $ 1,711,536 $ 117,628 Tax Allocation Bonds – Series 2006
The former redevelopment agency issued $3,200,000 of tax allocation refunding bonds on February 1, 2006. The principal balance outstanding at June 30, 2024 was $1,855,000. These bonds have an interest rate of 3.5% to 5.0% per annum. Repayments begin on October 1, 2006 and will end on October 1, 2036. In the event of a default, the full outstanding balance of the loan immediately becomes due and payable.

The remaining annual debt service requirements as of June 30, 2025 are as follows:

Fiscal Year
Ended June 30, Principal Interest Total
2026 $ 120,000 $ 65,400 $ 185,400
2027 120,000 61,800 181,800
2028 125,000 57,500 182,500
2029 130,000 52,400 182,400
2030 135,000 47,100 182,100
2031-2035 760,000 148,400 908,400
2036-2037 350,000 14,200 364,200
$ 1,740,000 $ 446,800 $ 2,186,800
2006 Tax Allocation Bonds

CITY OF HUGHSON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2025
56 NOTE 13 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
B. Capital assets of the Successor Agency as of June 30, 2025 consisted of the following:

June 30, 2024 June 30, 2025
Balance Additions Deletions Balance
Capital assets, being depreciated:

Buildings and Improvements $ 795,929 -$ -$ $ 795,929
Infrastructure 47,930 47,930
Total capital assets, being depreciated 843,859 843,859 Less accumulated depreciation for:

Buildings and Improvements (390,039) (26,531) (416,570) Infrastructure (16,303) (959) (17,262)
Total accumulated depreciation, net (406,342) (27,490) (433,832) Total capital assets, net $ 437,517 $ (27,490) $ - $ 410,027

REQUIRED SUPPLEMENTAL INFORMATION

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Property Taxes $ 1,524,109 $ 1,524,109 $ 1,730,555 $ 206,446 Sales and Use Taxes 1,172,000 1,172,000 1,294,593 122,593 Business License Taxes 23,000 23,000 33,898 10,898
Other Taxes 144,375 144,375 151,089 6,714
Licenses and Permits 289,155 289,155 482,933 193,778
Fines and Forfeitures 21,000 21,000 10,603 (10,397)
Interest 40,644 40,644
Charges for Services 46,350 46,350 661,049 614,699
Intergovernmental 172,500 172,500 85,763 (86,737)
Other 588,949 588,949 211,495 (377,454)
Total Revenues 3,981,438 3,981,438 4,702,622 721,184
Expenditures
Current
General Government 1,231,102 1,231,102 1,188,231 42,871 Public Safety 1,991,553 1,991,553 1,931,874 59,679
Public Works 448,473 448,473 470,044 (21,571)
Parks and Recreation 167,307 167,307 148,370 18,937
Community Development 420,835 420,835 342,546 78,289
Capital Outlay 17,500 17,500 25,158 (7,658)
Total Expenditures 4,276,770 4,276,770 4,106,223 170,547 Excess (Deficiency) of Revenues Over
(Under) Expenditures (295,332) (295,332) 596,399 891,731 Other Financing Sources (uses):

Transfers In 492,864 492,864 393,409 (99,455)
Transfers Out (69,347) (69,347) (115,667) (46,320)
Total Other Financing Sources (Uses) 423,517 423,517 277,742 (145,775) Net Change in Fund Balance 128,185 128,185 874,141 745,956 Fund Balance - July 1, 2024 5,922,573 5,922,573 5,922,573 Fund Balance - June 30, 2025 $ 6,050,758 $ 6,050,758 $ 6,796,714 $ 745,956 FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Budgeted Amounts

CITY OF HUGHSON

SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GENERAL FUND
57

Variance with
Final Budget
Original Final Actual Positive (Negative)
Revenues
Interest $ - -$ $ 273 $ 273
Charges for Services 950,000 950,000 1,002,112 52,112
Total Revenues 950,000 950,000 1,002,385 52,385
Expenditures
Current:

Public Works 930,000 930,000 1,006,094 (76,094)
Total Expenditures 930,000 930,000 1,006,094 (76,094)
Net Change in Fund Balance 20,000 20,000 (3,709) (23,709) Fund Balance - July 1, 2024 89,534 89,534 89,534
Fund Balance - June 30, 2025 $ 109,534 $ 109,534 $ 85,825 $ (23,709) FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Budgeted Amounts

CITY OF HUGHSON

SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

REFUSE SPECIAL REVENUE FUND
58

CITY OF HUGHSON

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
59 Cost Sharing Defined Benefit Pension Plans
Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years* Notes to Schedule
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).

Change in Assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%.

In 2023, the accounting discount rate reduced from 7.15% to 6.90%.

Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Proportion of the net pension liability 0.06110% 0.01352% 0.06048% 0.01358% 0.05957% 0.01324% 0.05926% 0.01343% 0.06043% 0.01375% Proportionate share of the net pension liability 2,446,839$ 843,934$ 2,279,469$ 796,671$ 2,348,102$ 791,075$ 2,058,690$ 695,657$ 1,657,967$ 566,466$ Covered-employee payroll 905,888$ n/a 915,771$ n/a 920,504$ n/a 819,730$ n/a 812,522$ n/a Proportionate Share of the net pension liability
as a percentage of covered-employee payroll 270.10% n/a 248.91% n/a 255.09% n/a 251.14% n/a 204.05% n/a Plan's fiduciary net position unavailable unavailable unavailable unavailable 6,192,955$ 2,008,496$ 5,495,601$ 1,704,840$ 5,367,605$ 1,778,871$ Plan's total pension liability unavailable unavailable unavailable unavailable 8,541,057$ 2,799,571$ 7,554,291$ 2,400,497$ 7,025,572$ 2,345,337$ Plan fiduciary net position as a percentage of
total pension liability n/a n/a n/a n/a 72.51% 71.74% 72.75% 71.02% 76.40% 75.85% Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Misc Plan Safety Plan Proportion of the net pension liability 0.06618% 0.01310% 0.06420% 0.01326% 0.06425% 0.01381% 0.06043% 0.01375% 0.06192% 0.01312% Proportionate share of the net pension liability 3,200,908$ 954,872$ 3,210,267$ 990,927$ 3,006,200$ 948,734$ 1,635,191$ 592,675$ 2,611,642$ 874,408$ Covered-employee payroll 1,012,322$ n/a 1,007,243$ n/a 1,005,311$ n/a 1,002,423$ n/a 996,425$ n/a Proportionate Share of the net pension liability
as a percentage of covered-employee payroll 316.19% n/a 318.72% n/a 299.03% n/a 163.12% n/a 262.10% n/a Plan's fiduciary net position 7,925,482$ 2,572,470$ 7,793,720$ 2,367,698$ 7,476,365$ 2,355,820$ 7,997,726$ 2,104,370$ 6,841,009$ 1,812,014$ Plan's total pension liability 11,126,390$ 3,527,343$ 11,003,987$ 3,358,625$ 10,482,565$ 3,304,554$ 9,632,917$ 2,697,045$ 9,452,651$ 2,686,422$ Plan fiduciary net position as a percentage of
total pension liability 71.23% 72.93% 70.83% 70.50% 71.32% 71.29% 83.02% 78.03% 72.37% 67.45% June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016

CITY OF HUGHSON

REQUIRED SUPPLEMENTAL INFORMATION
JUNE 30, 2025
60 Cost Sharing Defined Benefit Pension Plans
Schedule of Contributions – Last 10 Years*
Notes to Schedule
Misc Safety Misc Safety Misc Safety Misc Safety Misc Safety Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan
Contractual required contribution (actuarially
determined) 221,455$ 72,162$ 230,720$ 39,753$ 218,712$ 31,691$ 192,328$ 26,718$ 149,103$ 29,542$ Contributions in relation to the actuarially
determined contributions (221,455) (72,162) (230,720) (39,753) (218,712) (31,691) (192,328) (26,718) (149,103) (29,542) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered employee payroll 996,425$ n/a 905,888$ n/a 915,771$ n/a 920,504$ n/a 819,730$ n/a Contributions as a percentage of covered
employee payroll 22.22% n/a 25.47% n/a 23.88% n/a 20.89% n/a 18.19% n/a Misc Safety Misc Safety Misc Safety Misc Safety Misc Safety Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan
Contractual required contribution (actuarially
determined) 329,363$ 109,332$ 320,155$ 107,522$ 303,304$ 105,421$ 282,344$ 103,672$ 258,394$ 72,080$ Contributions in relation to the actuarially
determined contributions (329,363) (109,332) (320,155) (107,522) (303,304) (105,421) (282,344) (103,672) (258,394) (72,080) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered employee payroll 1,018,253$ n/a 1,012,322$ n/a 1,007,243$ n/a 1,005,311$ n/a 1,002,423$ n/a Contributions as a percentage of covered
employee payroll 32.35% n/a 31.63% n/a 30.11% n/a 28.09% n/a 25.78% n/a June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarial Cost Method Entry Age Normal
Amortization Method/Period For detail, see June 30, 2012 Funding Valuation Report Assets Valuation Method Actuarial Value of Assets. For details, see June 30, 2012 Funding Valuation Report.

Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Payroll Growth 3.00%
Investment Rate of Return 6.90% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Preretirement and Post-retirement mortality rates included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.

OTHER SUPPLEMENTAL INFORMATION

Variance with
Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 3,046 $ 3,046
Charges for Services 572,000 435,792 (136,208)
Total Revenues 572,000 438,838 (133,162)
Expenditures:

Current:

General Government 12,000 12,000
Capital Outlay 836,338 836,338
Total Expenditures 848,338 848,338
Net Change in Fund Balance (276,338) 438,838 715,176
Fund Balance - July 1, 2024 2,677,041 2,677,041
Fund Balance - June 30, 2025 $ 2,400,703 $ 3,115,879 $ 715,176 Final

CITY OF HUGHSON

PUBLIC FACILITIES CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
61

62 This page left intentionally blank

63 NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
______________________________
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.
______________________________
The Asset Forfeiture Fund was established to account for monies received from asset seizures in the City’s jurisdiction. The monies are to be spent on police protection and enforcement.

The Gas Tax Fund was established to account for state gas tax revenues based on population.

The revenues may be expended only for street and road repair, maintenance, design, construction, and traffic signal design and installation.

The Vehicle Abatement Fund was established to account for vehicle abatement fees, revenues, and expenditures.

The CDBG Rehab Fund was established to account for federal grants under the Housing and Community Development Act, to assist low and moderate income groups in obtaining loans to rehabilitate or revitalize their homes.

The CDBG Grants Fund was established to account for federal planning grants under the Housing and Community Development Act.

The Community Enhancement Fund was established to bridge the gap between old development and new development where Landscaping and Lighting Districts are not set up.

The Local Transportation Fund was established to account for revenues received and expenditures made for traffic improvements.

The Storm Drain Fund was established to account for storm drain revenues.

The SLESF Fund established to account for revenues received and expenditures made for Special Law Enforcement Services.

64 The Lighting and Landscaping Fund was established to account for the lighting and landscaping of specified zones in the City.

The Benefit Assessment Fund was established to account for assessments applied to certain districts within the City.

The Trench Cut Fund was established to account for trench cutting costs to be paid with specified charges designed for that specific use.

The Public Safety Realignment Fund was established to account for public safety costs to be paid from a special intergovernmental funding source.

The IT Reserve Fund was established to account for amounts set aside and transferred from all City funds for future IT upgrades.

The Measure L Sales Tax Fund was established to account for Measure L sales tax revenues and expenditures.

The SB-1 Roads Fund was established to account for SB-1 roads funds received from the State.

The Disability Access and Education Fund was established to account for fees per SB 1186 that are applied to the sale of business licenses and renewals.

The CFD Fund was established to account for various CFDs within the City.

The Covid Recovery Fund was established to account for American Recovery Plan Act funds.

CAPITAL PROJECTS FUNDS
______________________________
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. ______________________________
The Transportation Fund was established to account for street reconstruction.

The Municipal Park Fund was established to account for future expansion of City parks.

The Parks Development Impact Fees Fund was established to account for developer assessments on new home construction, with the monies to be used for construction of parks.

65 This page left intentionally blank

Asset Gas Vehicle CDBG CDBG
Forfeiture Tax Abatement Rehab Grants
Assets
Cash and Investments $ 311,653 1,660 $ $ 56,827 $ 444,409 $ 93,999 Accounts Receivable 13,187
Loans Receivable 97,208
Total Assets 311,653 1,660 70,014 541,617 93,999
Liabilities
Accounts Payable 1,950
Unearned Revenue
Due to Other Funds
Total Liabilities 1,950
Fund Balances (Deficits)
Restricted 309,703 1,660 70,014 541,617 93,999
Unassigned
Total Fund Balances (Deficits) 309,703 1,660 70,014 541,617 93,999 Total Liabilities and Fund Balances $ 311,653 1,660 $ $ 70,014 $ 541,617 $ 93,999 June 30, 2025
Special Revenue Funds

CITY OF HUGHSON

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
66

Community Local Storm Lighting and Benefit Trench
Enhancement Transportation Drain SLESF Landscaping Assessment Cut $ 532,268 $ 64,890 $ 1,061,402 $ 634,550 $ 133,129 $ 437,628 $ 222,094 532,268 64,890 1,061,402 634,550 133,129 437,628 222,094 2,569 164
2,569 164
532,268 64,890 1,061,402 634,550 130,560 437,464 222,094 532,268 64,890 1,061,402 634,550 130,560 437,464 222,094 $ 532,268 $ 64,890 $ 1,061,402 $ 634,550 $ 133,129 $ 437,628 $ 222,094 Continued
Special Revenue Funds
67

Public Safety IT Measure L Disability Access
Realignment Reserve Sales Tax SB-1 Roads and Education
Assets
Cash and Investments $ 35,722 $ 53,687 $ 1,394,159 $ 800,915 $ 7,809 Accounts Receivable 132,998 43,719 126
Loans Receivable
35,722 53,687 1,527,157 844,634 7,935
Liabilities
Accounts Payable 1,710
Unearned Revenue
Due to Other Funds
Total Liabilities 1,710
Fund Balances (Deficits)
Restricted 35,722 53,687 1,525,447 844,634 7,935
Unassigned
Total Fund Balances (Deficits) 35,722 53,687 1,525,447 844,634 7,935 Total Liabilities and Fund Balances $ 35,722 $ 53,687 $ 1,527,157 $ 844,634 $ 7,935 June 30, 2025
(CONTINUED)
Special Revenue Funds

CITY OF HUGHSON

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
68

Total
Parks Nonmajor
Covid Municipal Development Governmental
CFD Recovery Transportation Park Impact Fees Funds
$ 103,074 $ 477,994 $ 646,034 - $ $ 7,513,903 - $
190,030
97,208
103,074 477,994 646,034 7,801,141
9,500 36,001 4,015 55,909
380,289 380,289
259,232 199,995 459,227
9,500 416,290 199,995 263,247 895,425
93,574 646,034 61,704 7,368,958
(263,247) (199,995) (463,242)
93,574 61,704 (263,247) 646,034 (199,995) 6,905,716
$ 103,074 $ 477,994 $ 646,034 - $ $ 7,801,141 - $
Capital Projects Funds
69

Asset Gas Vehicle CDBG CDBG
Forfeiture Tax Abatement Rehab Grants
Revenues:

Interest $ - $ 460 $ - $ 599 $ -
Charges for Services 30,562
Intergovernmental 201,450
Special Assessments
Other 131
Total Revenues 201,910 30,562 730
Expenditures:

Current:

Parks and Recreation
Public Safety
Public Works 97,121
Community Development 20
Capital Outlay 200,000
Total Expenditures 297,121 20
Excess (Deficiency) of Revenues
over (Under) Expenditures (95,211) 30,562 710
Other Financing Sources (Uses):

Transfers In 9,815
Transfers Out (49,792) (37,000)
Total Other Financing
Sources (Uses) (39,977) (37,000)
Net Change in Fund Balances (135,188) (6,438) 710
Fund Balances - June 30, 2024 1,660 444,891 76,452 540,907 93,999 Fund Balances - June 30, 2025 $ 1,660 $ 309,703 $ 70,014 $ 541,617 $ 93,999 For the Fiscal Year Ended June 30, 2025
Special Revenue Funds

CITY OF HUGHSON

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

NONMAJOR GOVERNMENTAL FUNDS
70

Local
Community Transportation Storm Lighting and Benefit Trench Enhancement Fund Drain SLESF Landscaping Assessment Cut $ 675 $ - $ 1,506 $ 994 $ - $ - $ -
145,723 239,193
176,586
219,790 119,141

240,699 146,398 177,580 219,790 119,141
10,790
221,395 73,102
12,585
10,790 233,980 73,102
240,699 146,398 166,790 (14,190) 46,039
(160,500) (28,295) (13,204)
(160,500) (28,295) (13,204)
240,699 146,398 6,290 (42,485) 32,835
385,870 64,890 820,703 628,260 173,045 404,629 222,094
$ 532,268 $ 64,890 $ 1,061,402 $ 634,550 $ 130,560 $ 437,464 $ 222,094 Continued
Special Revenue Funds
71

Public Safety IT Measure L Disability Access
Realignment Reserve Sales Tax SB-1 Roads and Education
Revenues:

Interest $ - $ 111 $ 2,381 $ - $ -
Charges for Services 1,601
Intergovernmental 490,237 173,350
Special Assessments
Other
Total Revenues 111 492,618 173,350 1,601
Expenditures:

Current:

Parks and Recreation
Public Safety
Public Works
Community Development
Capital Outlay 83,022 862,328 3,611
Total Expenditures 83,022 862,328 3,611
Excess (Deficiency) of Revenues
over (Under) Expenditures (82,911) (369,710) 169,739 1,601 Other Financing Sources (Uses):

Transfers In 15,000
Transfers Out
Total Other Financing
Sources (Uses) 15,000
Net Change in Fund Balances (67,911) (369,710) 169,739 1,601 Fund Balances - June 30, 2024 35,722 121,598 1,895,157 674,895 6,334 Fund Balances - June 30, 2025 $ 35,722 $ 53,687 $ 1,525,447 $ 844,634 $ 7,935 For the Fiscal Year Ended June 30, 2025
(CONTINUED)
Special Revenue Funds

CITY OF HUGHSON

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

NONMAJOR GOVERNMENTAL FUNDS
72

Total
Parks Nonmajor
Covid Municipal Development Governmental
CFD Recovery Transportation Park Impact Fees Funds
$ - $ - $ - $ 944 $ - $ 7,670
1,991 1,600 420,670
224,728 19,296 1,285,647
70,719 409,650
131
70,719 224,728 19,296 2,935 1,600 2,123,768
98,021 98,021
10,790
36,322 427,940
20 126,707 33,229 1,321,482
36,322 224,728 1,858,253 33,229
(13,933) 34,397 2,935 1,600 265,515
24,815
(3,638) (292,429)
(267,614) (3,638)
(13,933) 30,759 2,935 1,600 (2,099)
62,815 61,704 (249,314) 643,099 (201,595) 6,907,815
$ 93,574 $ 61,704 $ (263,247) $ 646,034 $ (199,995) $ 6,905,716 Capital Project Funds
73

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 460 $ 460
Intergovernmental 218,707 201,450 (17,257)
Total Revenues 218,707 201,910 (16,797)
Expenditures:

Current:

Public Works 116,000 97,121 18,879
Capital Outlay 372,598 200,000 172,598
Total Expenditures 488,598 297,121 191,477
Excess (Deficiency) of Revenues
Over (Under) Expenditures (269,891) (95,211) 174,680
Other Financing Sources (Uses):

Transfers In 9,815 9,815
Transfers Out (49,792) (49,792)
Total Other Financing
Sources (Uses) (39,977) (39,977)
Net Change in Fund Balance (309,868) (135,188) 174,680
Fund Balance - July 1, 2024 444,891 444,891
Fund Balance - June 30, 2025 $ 135,023 $ 309,703 $ 174,680

CITY OF HUGHSON

GAS TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
74

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Charges For Services $ 37,000 $ 30,562 $ (6,438)
Total Revenues 37,000 30,562 (6,438)
Other Financing Sources (Uses):

Transfers Out (37,000) (37,000)
Total Other Financing
Sources (Uses) (37,000) (37,000)
Net Change in Fund Balance (6,438) (6,438)
Fund Balance - July 1, 2024 76,452 76,452
Fund Balance - June 30, 2025 $ 76,452 $ 70,014 $ (6,438)

CITY OF HUGHSON

VEHICLE ABATEMENT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
75

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 599 $ 599
Other Revenue 1,200 131 (1,069)
Total Revenues 1,200 730 (470)
Expenditures:

Current:

Community Development 20 20
Total Expenditures 20 20
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,180 710 (470)
Net Change in Fund Balance 1,180 710 (470)
Fund Balance - July 1, 2024 540,907 540,907
Fund Balance - June 30, 2025 $ 542,087 $ 541,617 $ (470)

CITY OF HUGHSON

CDBG REHAB SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
76

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 675 $ 675
Charges For Services 140,000 145,723 5,723
Total Revenues 140,000 146,398 6,398
Net Change in Fund Balance 140,000 146,398 6,398
Fund Balance - July 1, 2024 385,870 385,870
Fund Balance - June 30, 2025 $ 525,870 $ 532,268 $ 6,398

CITY OF HUGHSON

COMMUNITY ENHANCEMENT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
77

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 1,506 $ 1,506
Charges for Services 120,000 239,193 119,193
Total Revenues 120,000 240,699 120,699
Expenditures:

Current:

Public Works 150,000 150,000
Total Expenditures 150,000 150,000
Net Change in Fund Balance (30,000) 240,699 270,699
Fund Balance - July 1, 2024 820,703 820,703
Fund Balance - June 30, 2025 $ 790,703 $ 1,061,402 $ 270,699

CITY OF HUGHSON

STORM DRAIN SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
78

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 994 $ 994
Intergovernmental 167,300 176,586 9,286
Total Revenues 167,300 177,580 10,280
Expenditures:

Current:

Public Safety 12,800 10,790 2,010
Total Expenditures 12,800 10,790 2,010
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 154,500 166,790 12,290
Other Financing Sources (Uses):

Transfers Out (160,500) (160,500)
Total Other Financing
Sources (Uses) (160,500) (160,500)
Net Change in Fund Balance (6,000) 6,290 12,290
Fund Balance - July 1, 2024 628,260 628,260
Fund Balance - June 30, 2025 $ 622,260 $ 634,550 $ 12,290

CITY OF HUGHSON

SLESF SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
79

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Special Assessments $ 222,164 $ 219,790 $ (2,374)
Total Revenues 222,164 219,790 (2,374)
Expenditures:

Current:

Public works 205,799 221,395 (15,596)
Capital Outlay 12,585 12,585
Total Expenditures 218,384 233,980 (15,596)
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 3,780 (14,190) (17,970)
Other Financing Sources (Uses)
Transfers Out (28,295) (28,295)
Total Other financing
Sources (Uses) (28,295) (28,295)
Net Change in Fund Balance (24,515) (42,485) (17,970)
Fund Balance - July 1, 2024 173,045 173,045
Fund Balance - June 30, 2025 $ 148,530 $ 130,560 $ (17,970)

CITY OF HUGHSON

LIGHTING AND LANDSCAPING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
80

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Special Assessments $ 120,756 $ 119,141 $ (1,615)
Total Revenues 120,756 119,141 (1,615)
Expenditures:

Current:

Public Works 94,190 73,102 21,088
Total Expenditures 94,190 73,102 21,088
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 26,566 46,039 19,473
Other Financing Sources (Uses)
Transfers Out (13,204) (13,204)
Total Other financing
Sources (Uses) (13,204) (13,204)
Net Change in Fund Balance 13,362 32,835 19,473
Fund Balance - July 1, 2024 404,629 404,629
Fund Balance - June 30, 2025 $ 417,991 $ 437,464 $ 19,473

CITY OF HUGHSON

BENEFIT ASSESSMENT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
81

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 111 $ 111
Total Revenues 111 111
Expenditures:

Capital Outlay 20,000 83,022 (63,022)
Total Expenditures 20,000 83,022 (63,022)
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (20,000) (82,911) (62,911)
Other Financing Sources (Uses)
Transfers In 15,000 15,000
Total Other financing
Sources (Uses) 15,000 15,000
Net Change in Fund Balance (5,000) (67,911) (62,911)
Fund Balance - July 1, 2024 121,598 121,598
Fund Balance - June 30, 2025 $ 116,598 $ 53,687 $ (62,911)

CITY OF HUGHSON

IT RESERVE SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
82

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 2,381 $ 2,381
Intergovernmental 455,000 490,237 35,237
Total Revenues 455,000 492,618 37,618
Expenditures:

Capital Outlay 887,000 862,328 24,672
Total Expenditures 887,000 862,328 24,672
Net Change in Fund Balance (432,000) (369,710) 62,290
Fund Balance - July 1, 2024 1,895,157 1,895,157
Fund Balance - June 30, 2025 $ 1,463,157 $ 1,525,447 $ 62,290

CITY OF HUGHSON

MEASURE L SALES TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025

83 of 214
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Intergovernmental $ 195,930 $ 173,350 $ (22,580)
Total Revenues 195,930 173,350 (22,580)
Expenditures:

Capital Outlay 167,579 3,611 163,968
Total Expenditures 167,579 3,611 163,968
Net Change in Fund Balance 28,351 169,739 141,388
Fund Balance - July 1, 2024 674,895 674,895
Fund Balance - June 30, 2025 $ 703,246 $ 844,634 $ 141,388

CITY OF HUGHSON
SB-1 ROADS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025

84 of 214
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Charges for Services $ 1,200 $ 1,601 $ 401
Total Revenues 1,200 1,601 401
Net Change in Fund Balance 1,200 1,601 401
Fund Balance - July 1, 2024 6,334 6,334
Fund Balance - June 30, 2025 $ 7,534 $ 7,935 $ 401

CITY OF HUGHSON

DISABILITY ACCESS AND EDUCATION SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025
85

Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Special Assessments $ 71,177 $ 70,719 $ (458)
Total Revenues 71,177 70,719 (458)
Expenditures:

Current:

Public Works 57,213 36,322 20,891
Total Expenditures 57,213 36,322 20,891
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 13,964 34,397 20,433
Other Financing Sources (Uses)
Transfers Out (3,638) (3,638)
Total Other financing
Sources (Uses) (3,638) (3,638)
Net Change in Fund Balance 10,326 30,759 20,433
Fund Balance - July 1, 2024 62,815 62,815
Fund Balance - June 30, 2025 $ 73,141 $ 93,574 $ 20,433

CITY OF HUGHSON

CFD SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025

86 of 214
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:

Interest $ - $ 944 $ 944
Charges for Services 1,991 1,991
Total Revenues 2,935 2,935
Expenditures:

Current:

Parks and Recreation 65,000 65,000
Total Expenditures 65,000 65,000
Net Change in Fund Balance (65,000) 2,935 67,935
Fund Balance - July 1, 2024 643,099 643,099
Fund Balance - June 30, 2025 $ 578,099 $ 646,034 $ 67,935

CITY OF HUGHSON

MUNICIPAL PARK CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2025