Agenda packet, regular meeting, first session — King City City Council, March 24, 2026

AGENDA

REGULAR MEETING OF THE

CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF

THE RDA FOR THE CITY OF KING
TUESDAY MARCH 24, 2026
6:00 P.M.

CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.

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https://bit.ly/3e0zvaR
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Passcode: 052933
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* Please submit all correspondence for City Council PRIOR to the meeting with a copy to the City Clerk.

CALL TO ORDER
ROLL CALL:

Council Members Oscar Avalos, Robert Cullen, Carlos Victoria, Mayor Pro Tem Carlos DeLeon, and Mayor Mike LeBarre

FLAG SALUTE

CLOSED SESSION ANNOUNCEMENTS

SPECIAL PRESENTATIONS

PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member.

Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.

COUNCIL COMMUNICATIONS & COMMITTEE REPORTS

1. 2.

3. 4.

5. 6.
7 the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member.

Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.

COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.

STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.

CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion. The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.

Consideration: Meeting Minutes Of March 10, 2026 Council Meeting Recommendation: approve and file
9(A) 3-10-2026 MINUTES_.PDF
Consideration: City Of King Check Register March 1, Through March 15, 2026 Recommendation: receive and file.
9(B) CHECK REGISTER MARCH 1-15, 2026.PDF
Consideration: Meeting Minutes Of March 10 Special Council Meeting Recommendation: approve and file.
9(C) 03-10-2026 SPECIAL MEETING MINUTES_.PDF
Consideration: Second Reading Of An Ordinance Amending Chapter 17.01 And 17.14 (R-2) Medium Density Residential District Of Title 17 Of The King City Municipal Code Recommendation: waive the second reading by title only and adopt an Ordinance of City Council of the City of King Amending Municipal Code Chapter 17.01 and 17.14 (R2) Medium Density Residential District of Title 17 of the King City Municipal Code. 9(D) SECOND READING OF ORDINANCE AMENDING CHAPTER 17.01 AND 11(2) S1

7. 8.

9. A.

Documents:

City Council of the City of King Amending Municipal Code Chapter 17.01 and 17.14 (R2) Medium Density Residential District of Title 17 of the King City Municipal Code. 9(D) SECOND READING OF ORDINANCE AMENDING CHAPTER 17.01 AND

17.14 (R-2) MEDIUM DENSITY TITLE 17.PDF
Consideration: Changes To Signature Authority Related To City Municipal Accounts And Investment Accounts
Recommendation: 1) adopt Resolution 2026-5083, Authorizing the establishment and maintenance of bank accounts for municipal funds and repealing resolutions in conflict herewith, and 2) adopt Resolution 2026-5084, Authorizing investment of monies in the Local Agency Investment Fund and designating officers authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund (LAIF). 9(E) SIGNATURE AUTHORITY FOR CITY MUNICIPAL ACCOUNTS.PDF Consideration: Meeting Minutes Of March 11, 2026 Special Council Meeting Recommendation: approve and file.
9(F) 03-11-2026 SPECIAL MEETING MINUTES_.PDF
Consideration: King City Fire Station Parking Lot Paving Project Recommendation: approve 1) a Contractor Services Agreement with SiteWorx, Inc., for the King City Fire Station Parking Lot Paving Project, in the proposed amount of $58,500 2) Authorize the City Manager to approve change orders up to (20%) percent; and 3) Adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.
9(G) KING CITY FIRE STATION PARKING LOT PAVING.PDF

PUBLIC HEARINGS
Consideration: Adoption Of An Ordinance Of The City Council Of The City Of King Repealing And Replacing Chapter 17.03, Section 17.03.070, Of Title 17 Of The King City Municipal Code Pertaining To Commercial Cannabis Activity Recommendation: City Council introduce to be read by title only an Ordinance repealing and replacing Chapter 17.03, Section 17.03.070, of Title 17 of the King City Municipal Code pertaining to commercial cannabis activity, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve the introduction of the Ordinance.
10(A) CANNIBAS EMPLOYEE WORK PERMITS.PDF

REGULAR BUSINESS
Consideration: Acceptance Of The City And CDA Successor Agency’s Audited Financial Statements For The Fiscal Year 2024-2025
Documents:

Documents:

10. A.

Documents:

11. A.
10(A) CANNIBAS EMPLOYEE WORK PERMITS.PDF

REGULAR BUSINESS
Consideration: Acceptance Of The City And CDA Successor Agency’s Audited Financial Statements For The Fiscal Year 2024-2025
Recommendation: City Council and the Board of Directors of the King City CDA Successor Agency accept the City and CDA Successor Agency’s Audited Financial Statements for Fiscal Year Ended June 30, 2025.
11(A) AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR 2024- 2025.PDF
Consideration: Annual General Plan And Housing Element Progress Report For 2025 Recommendation: City Council review and accept the 2025 Annual General Plan and Housing Element Progress Report.
11(B) GENERAL PLAN AND HOUSING ELEMENT.PDF

CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.

ADJOURNMENT
The City of King is an equal opportunity provider and employer.

11. A.

Documents:

12. 13.

Page 1 of 3 ends

City Council Meeting
March 10, 2026

1.__CALL TO ORDER:

Regular Meeting called to order at 6:00pm by Mayor LeBarre.

2.__ROLL CALL:

City Council: Mayor Mike LeBarre, Mayor Pro Tem Carlos DeLeon (Absent), Council member Rob Cullen, Council member Carlos Victoria, Council members Oscar Avalos (Absent).

City Staff: City Manager José Arreola, City Attorney Roy Santos; City Clerk Erica Sonne

3.__FLAG SALUTE:

The flag salute was led by Mayor LeBarre.

4. CLOSED SESSION ANNOUNCEMENTS:

No reportable action.

5.__SPECIAL PRESENTATIONS:

Proclamation to Vivien Cullen for the King City Chamber of Commerce and Agriculture Hermie Robles Youth Award, this item was pulled from the agenda.

6. PUBLIC COMMUNICATIONS:

None

7. COUNCIL COMMUNICATIONS:

Councilmember Victoria stated the end of the school year is coming up soon. 8th Grade graduation ceremony is being worked on. The schoolboard meeting was moved to tonight. He explained how nice it is to have the SROs at the schools to deal with situations.

Councilmember Cullen stated he has Solid Waste Authority next week. He announced that the Chamber Event is on March 21st, tickets are available at the chamber office. Rotary is working on the Broadway Circle landscaping where they are installing peace poles, and they will be holding a ribbon cutting for that event. He would like staff to inquire about S. San Lorenzo Street work that seems to have halted and is not finished he has had a lot of comments about it, and it is a rough ride.

Mayor LeBarre stated that the Rivas’ legislative day he attended went well. Since the City is a little short for funding it was suggested by Speaker Rivasto identify pots of money and seek those. March 19th Project Homekey ribbon cutting is happening. This project will effectively house the homeless in King City. He is proud to work with a council that has stuck with this project to see it through and been positive doing it.

8. CITY STAFF REPORTS AND COMMENTS:

City Manager José Arreola stated Casa Esperanza ribbon cutting will be March 19th as the Mayor mentioned. Tomorrow is the State of the City at noon. The bilingual State of the City is on the 12th at 6p.m. at the city council chambers. Chispa will be building more housing that will be moving forward soon. The General Plan Element will be coming before council at the next meeting. 9(A)

Page 2 of 3 ends

City Attorney Santos stated he had nothing to report tonight.

9. CONSENT
A. Consideration: Meeting Minutes of February 24, 2026, Council Meeting B. Consideration: City of King Check Register February 15, 2026, through February 28, 2026 C. Consideration: Meeting Minutes of February 24, 2026, Special Closed Session Council Meeting D. Consideration: Revision to Code Enforcement Priorities E. Consideration: Meeting Minutes of February 27, 2026, Special Council Meeting F. Consideration: City of King KCCP Payments for the Month of February 2026 G. Consideration: A One Year Engagement for Auditing Services with Bryant L. Jolley, CPA, to Perform Annual Audit Services for Fiscal Year 2024-2025 with a cost not to exceed $54,400 Mayor LeBarre pulled Item 9(D) from the agenda and will be brought back at a later meeting.

Action: Motion to approve consent agenda items A-C- and E-G by Cullen seconded by Victoria.

AYES: Council Members: LeBarre, Cullen, Victoria,
NOES: Council Members:

ABSENT: Council Members: DeLeon, Avalos,
ABSTAIN: Council Members:

10. PUBLIC HEARINGS:

A. Consideration: An Ordinance Amending Municipal Code Chapter 17.01 and 17.14 (R-2) Medium Density Residential District of Title 17 of the King City Municipal Code Community Development Director Doreen Liberto presented this item.

Mayor LeBarre opened the public hearing, seeing no one come forward he closed the public hearing.

Action: Motion to introduce an ordinance amending Chapter 17.14 (R-2 Medium Density Residential District) to allow victim service provider transitional housing to be read by title only, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve the introduction of the Ordinance, and conduct the second reading at the next regularly scheduled City Council meeting by Victoria seconded by Cullen.

AYES: Council Members: LeBarre, Cullen, Victoria,
NOES: Council Members:

ABSENT: Council Members: DeLeon, Avalos,
ABSTAIN: Council Members:

11. REGULAR BUSINESS
A. Consideration: Discussion and Direction: Regarding Delinquent Sewer Fees and the City Levy Process
Finance Director Howard presented this item.

Council member Cullen feels postponement of levying process for delinquent sewer accounts is a good approach and gives more opportunities for education and regaining trust by working with the customers on payment plans. Council member Victoria agrees.

Page 3 of 3 ends

Karen Jernigan feels that we are charging more than our community can afford and that possibly that is contributing to overcrowding. State mandating the upgrades makes her concerned about higher fees.

Margarita Lopez applauds Council member Cullens comments of regaining trust by working with the community.

Mayor LeBarre spoke to the State mandates and if we don’t meet the updates the city will be fined daily.

He asked the community to reach out to their state representatives and let them know how they feel.

Council approved the postponement of the City Levying process for delinquent sewer accounts for one year to allow more public outreach to try bringing delinquent sewer accounts more current.

B. Consideration: Proposed Recruitment of a Finance Manager City Manager José Arreola presented this item.

Karen Jernigan encourages staff to move quickly to keep finances up to date.

Action: Motion to approve staff’s recommendation for the delegation of finance responsibilities in preparation for the departure of the City’s contract Finance Director at the end of March and authorize staff to initiate recruitment for a full-time Finance Manager position by Cullen seconded by Victoria.

AYES: Council Members: LeBarre, Cullen, Victoria,
NOES: Council Members:

ABSENT: Council Members: DeLeon, Avalos,
ABSTAIN: Council Members:

12. CITY COUNCIL CLOSED SESSION
None
ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 6:51p.m.

Approved Signatures:

Mayor Mike LeBarre City Clerk, Erica Sonne
City of King City of King
Item No. 9(B)

REPORT TO THE CITY COUNCIL
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER
MARCH 1 THROUGH MARCH 15, 2026
RECOMMENDATION:

It is recommended City Council receive and file.

BACKGROUND:

At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.

DISCUSSION:

The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.

COST ANALYSIS:

There is no fiscal impact as a result of this action.

ENVIRONMENTAL REVIEW:

No Environmental Review required for this item.

ALTERNATIVES:

The following alternatives are provided for Council consideration:

1. Receive and file the report; or

2. Provide other direction to staff regarding requests for additional information.

CITY COUNCIL/CITY
CONSIDERATION OF CITY OF KING CHECK REGISTER MARCH 1
THROUGH MARCH 15, 2026
MARCH 24, 2026
PAGE 2 OF 2
Exhibits:

1. Check Register Report
3/16/2026 9:35:11 AM Page 1 of 6
Check Report
King City, CA By Check Number
Date Range: 03/01/2026 - 03/15/2026
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code: POOL-WFB-POOL - WELLS FARGO BANK
Payment Type: EFT
ALVAREZ ALVAREZ TECHNOLOGY GROUP INC 03/02/2026 EFT 0.00 7,538.15 10468 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 78842 Invoice 02/27/2026 PD Axon Streaming on Tablet 0.00 605.55 100-1600-61500 Professional Services PD Axon Streaming on Tablet 605.55 78935 Invoice 02/27/2026 IT Services - February 2026 0.00 6,850.10 100-2000-61500 Professional Services IT Services - February 2026 6,850.10 79049 Invoice 02/27/2026 PD CAD through VPN Assistance 0.00 82.50 100-1600-61500 Professional Services PD CAD through VPN Assistance 82.50 SPCA THE SPCA FOR MONTEREY COUNTY 03/09/2026 EFT 0.00 2,847.40 10469 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 1-26 Invoice 03/06/2026 SPCA 0.00 2,847.40
100-1600-61550 Animal Services SPCA 2,847.40
Total EFT: 0.00 10,385.55
Check Report Date Range: 03/01/2026 - 03/15/2026
3/16/2026 9:35:11 AM Page 2 of 6
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Payment Type: Regular
KCTVHARD ALCANTAR HARDWARE INC 03/06/2026 Regular 0.00 5.52 73933 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 589340 Invoice 03/06/2026 Various Nuts & Bolts 0.00 5.52 100-1700-61803 Fire Station Maintenance Various Nuts & Bolts 5.52 ALLIANT ALLIANT INSURANCE SERVICES INC NPB MAIN 03/06/2026 Regular 0.00 15,205.00 73934 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 005 Invoice 03/06/2026 Vehicle Insurance 0.00 15,001.00 100-2000-61610 Vehicle Insurance Vehicle Insurance 15,001.00 3404626 Invoice 03/06/2026 Vehicle Insurance 0.00 204.00 100-2000-61610 Vehicle Insurance Vehicle Insurance 204.00 AMAZON AMAZON CAPITAL SERVICES INC 03/06/2026 Regular 0.00 466.32 73935 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 169T-J1TV-6J4H Invoice 03/06/2026 Softball Supplies 0.00 24.50 100-2600-61220 Operational Supplies Softball Supplies 24.50 1NFG-XNKY-Q4PX Invoice 03/06/2026 Office Supplies 0.00 130.47 100-1600-61210 Office Supplies Office Supplies 130.47
1R1J-3G3K-VQ3C Invoice 03/06/2026 SOCOS 0.00 13.04
100-2600-61220 Operational Supplies SOCOS 13.04
1X9F-1YGL-JT66 Invoice 03/06/2026 LG Jackets and Supplies 0.00 298.31 100-2500-61220 Operational Supplies LG Jackets and Supplies 298.31 CARMEL FIR ART BLACK 03/06/2026 Regular 0.00 325.00 73936 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 126084 Invoice 03/06/2026 Approved Fire Plans 0.00 325.00 100-1400-61500 Professional Services Approved Fire Plans 325.00 BENITEZ SECURITY BENITEZ SECURITY SERVICES 03/06/2026 Regular 0.00 2,880.00 73937 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 3493 Invoice 03/06/2026 Monarch Inn Temp Homeless Shelter Secur… 0.00 2,880.00 121-0000-61500 Professional Services Monarch Inn Temp Homeless Sh… 2,880.00 CITY OF KI CITY OF KING 03/06/2026 Regular 0.00 1,275.50 73938 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 030426 Invoice 03/06/2026 SEWER 0.00 1,275.50
100-1600-61730 Utilities - Water SEWER 36.75
100-1700-61730 Utilities - Water SEWER 36.75
100-1800-61730 Utilities - Water SEWER 36.75
100-1800-61730 Utilities - Water SEWER 166.75
100-2100-61730 Utilities - Water SEWER 175.50
100-2400-61730 Utilities - Water SEWER 823.00
CO OF MO S COUNTY OF MONTEREY Sheriff * Marshal * Coroner 03/06/2026 Regular 0.00 14,936.17 73939 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 3233 Invoice 03/06/2026 CJIS 0.00 14,936.17
100-1600-61564 ACJIS Warrant System CJIS 14,936.17
CRITICAL R CRITICAL REACH INC 03/06/2026 Regular 0.00 375.00 73940 Check Report Date Range: 03/01/2026 - 03/15/2026
3/16/2026 9:35:11 AM Page 3 of 6
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 4618 Invoice 03/06/2026 APBnet Annual Support Fee 0.00 375.00 100-1600-68130 Capital - Computer APBnet Annual Support Fee 375.00 DIMES MEDI DIMES MEDIA CORPORATION 03/06/2026 Regular 0.00 250.00 73941 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 5261 Invoice 03/06/2026 KRKC Ads 0.00 250.00
100-2600-61125 Advertising KRKC Ads 250.00
GENERAL CO ICC CODIFICATION, INC General Code, LLC 03/06/2026 Regular 0.00 1,245.00 73942 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount GC00134137 Invoice 03/06/2026 Municipal Code Annual Update Fee 0.00 1,245.00 100-1100-61130 Municipal Code Updates Municipal Code Annual Update … 1,245.00 INFOSEND INFOSEND, INC 03/06/2026 Regular 0.00 1,797.77 73943 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 305502 Invoice 03/06/2026 Utility Bill Printing & Mailing 0.00 1,797.77 310-0000-61200 Postage, Shipping & Freig… Utility Bill Printing & Mailing 1,255.17 310-0000-61500 Professional Services Utility Bill Printing & Mailing 542.60 LEBARRE MIKE LEBARRE 03/06/2026 Regular 0.00 347.15 73944 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 022526 Invoice 03/06/2026 Speaker Rivas Legislative Day 0.00 347.15 100-1000-62000 Travel, Meetings & Traini… Speaker Rivas Legislative Day 347.15 PARTS & SE PARTS & SERVICE CTR- NAPA INC 03/06/2026 Regular 0.00 46.76 73945 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 015011 Invoice 03/06/2026 Bike Cleaning Tail Board Lights 0.00 46.76 100-1700-61801 Equipment Repair & Main… Bike Cleaning Tail Board Lights 46.76 PAC PG&E 03/06/2026 Regular 0.00 270.95 73946
Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 022526 Invoice 03/06/2026 City Cam PG+E 0.00 270.95
100-1600-61720 Utilities - Gas & Electricity City Cam PG+E 270.95 PURCHASE P PURCHASE POWER*PITNEY BOWES 03/06/2026 Regular 0.00 208.03 73947 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 021126 Invoice 03/06/2026 Postage 0.00 208.03
100-1600-61200 Postage, Shipping & Freig… Postage 208.03 STATE WATE STATE WATER RESOURCE CONTROL BOARD 03/06/2026 Regular 0.00 10,920.00 73948 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount SW-0322572 Invoice 03/06/2026 Phase II Small MS4 0.00 10,920.00 310-0000-64110 Regulatory Permits & Lice… Phase II Small MS4 10,920.00 STERI STERICYCLE INC 03/06/2026 Regular 0.00 162.51 73949 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 8013457110 Invoice 03/06/2026 Hazardous Waste 0.00 162.51 100-1600-61500 Professional Services Hazardous Waste 162.51 VIAHEAR VIA HEART PROJECT 03/06/2026 Regular 0.00 1,023.31 73950 Check Report Date Range: 03/01/2026 - 03/15/2026
3/16/2026 9:35:11 AM Page 4 of 6
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount 6020 Invoice 03/06/2026 Replacement AED - Pools 0.00 1,023.31 100-2500-61220 Operational Supplies Replacement AED - Pools 1,023.31 AFLAC AFLAC 03/13/2026 Regular 0.00 26.12 73951
Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001469 Invoice 03/13/2026 PAYROLL DEDUCTION - INSURANCE 0.00 26.12 100-0000-21171 LTD Insurance Payable PAYROLL DEDUCTION - INSURA… 23.57 310-0000-21171 LTD Insurance Payable PAYROLL DEDUCTION - INSURA… 2.55 ANTHEM BLU ANTHEM BLUE CROSS 03/13/2026 Regular 0.00 4,195.32 73952 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001470 Invoice 03/13/2026 HEALTH INSURANCE DEDUCTION 0.00 4,195.32 100-0000-21150 Health Insurance Payable EE HEALTH INSURANCE DEDUCT… 3,776.45 120-0000-21150 Health Insurance Payable EE HEALTH INSURANCE DEDUCT… 1.06 310-0000-21150 Health Insurance Payable EE HEALTH INSURANCE DEDUCT… 262.60 410-0000-21150 Health Insurance Payable EE HEALTH INSURANCE DEDUCT… 155.21 CAL PERS R CAL PERS RETIREMENTSYSTEM 03/13/2026 Regular 0.00 36,907.86 73953 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001476 Invoice 03/13/2026 PERS PEPRA MISC EMPLOYER 0.00 5,951.92 100-0000-21130 PERS Payable PERS PEPRA MISC EMPLOYER 5,054.02 120-0000-21130 PERS Payable PERS PEPRA MISC EMPLOYER 2.73 224-0000-21130 PERS Payable PERS PEPRA MISC EMPLOYER 80.49 310-0000-21130 PERS Payable PERS PEPRA MISC EMPLOYER 605.06 410-0000-21130 PERS Payable PERS PEPRA MISC EMPLOYER 209.62 INV0001477 Invoice 03/13/2026 PERS PEPRA MISC EMPLOYEE 0.00 5,794.93 100-0000-21131 PERS Payable - EE PERS PEPRA MISC EMPLOYEE 4,920.69 120-0000-21131 PERS Payable - EE PERS PEPRA MISC EMPLOYEE 2.65 224-0000-21131 PERS Payable - EE PERS PEPRA MISC EMPLOYEE 78.37 310-0000-21131 PERS Payable - EE PERS PEPRA MISC EMPLOYEE 589.11 410-0000-21131 PERS Payable - EE PERS PEPRA MISC EMPLOYEE 204.11 INV0001478 Invoice 03/13/2026 PERS PEPRA SAFETY EMPLOYER 0.00 5,940.97 100-0000-21130 PERS Payable PERS PEPRA SAFETY EMPLOYER 5,940.97 INV0001479 Invoice 03/13/2026 PERS PEPRA SAFETY EMPLOYEE 0.00 5,839.04 100-0000-21131 PERS Payable - EE PERS PEPRA SAFETY EMPLOYEE 5,839.04 INV0001480 Invoice 03/13/2026 PERS MISC CLASSIC EMPLOYER 0.00 1,692.13 100-0000-21130 PERS Payable PERS MISC CLASSIC EMPLOYER 1,064.58 224-0000-21130 PERS Payable PERS MISC CLASSIC EMPLOYER 10.36 310-0000-21130 PERS Payable PERS MISC CLASSIC EMPLOYER 262.09 410-0000-21130 PERS Payable PERS MISC CLASSIC EMPLOYER 355.10 INV0001481 Invoice 03/13/2026 PERS MISC CLASSIC EMPLOYEE 0.00 974.81 100-0000-21131 PERS Payable - EE PERS MISC CLASSIC EMPLOYEE 613.68 224-0000-21131 PERS Payable - EE PERS MISC CLASSIC EMPLOYEE 5.95 310-0000-21131 PERS Payable - EE PERS MISC CLASSIC EMPLOYEE 151.08 410-0000-21131 PERS Payable - EE PERS MISC CLASSIC EMPLOYEE 204.10 INV0001482 Invoice 03/13/2026 PERS SAFETY CLASSIC EMPLOYER 0.00 7,429.09 100-0000-21130 PERS Payable PERS SAFETY CLASSIC EMPLOYER 7,429.09 INV0001483 Invoice 03/13/2026 PERS SAFTEY CLASSIC EMPLOYEE 0.00 3,284.97 100-0000-21131 PERS Payable - EE PERS SAFTEY CLASSIC EMPLOYEE 3,284.97 K.C.P.O.A. K.C.P.O.A. 03/13/2026 Regular 0.00 750.00 73954 Check Report Date Range: 03/01/2026 - 03/15/2026
3/16/2026 9:35:11 AM Page 5 of 6
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001474 Invoice 03/13/2026 KCPOA UNION DUES 0.00 750.00 100-0000-21173 KCPOA Union Dues KCPOA UNION DUES 750.00 K.C.P.S.A. K.C.P.S.A. 03/13/2026 Regular 0.00 340.00 73955 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001475 Invoice 03/13/2026 KCPSA UNION DUES 0.00 340.00 100-0000-21174 KCPSA Union Dues KCPSA UNION DUES 340.00 ICMA RETIR MISSION SQUARE-302397 03/13/2026 Regular 0.00 5,383.86 73956 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001467 Invoice 03/13/2026 EMPLOYER MATCH - ICMA DC 0.00 845.72 100-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 725.41 310-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 64.65 410-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 55.66 INV0001468 Invoice 03/13/2026 EMPLOYER MATCH - ICMA DC 0.00 677.43 100-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 548.52 224-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 40.45 310-0000-21141 ICMA Deferred Compensa… EMPLOYER MATCH - ICMA DC 88.46 INV0001471 Invoice 03/13/2026 DEF COMP EMPLOYEE 0.00 1,879.61 100-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 1,699.04 224-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 30.58 310-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 120.00 410-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 29.99 INV0001472 Invoice 03/13/2026 DEF COMP EMPLOYEE 0.00 1,739.83 100-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 1,551.71 310-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 51.96 410-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 136.16 INV0001473 Invoice 03/13/2026 DEF COMP EMPLOYEE 0.00 241.27 100-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 227.24 310-0000-21141 ICMA Deferred Compensa… DEF COMP EMPLOYEE 14.03 SEIU SEIU LOCAL 521 03/13/2026 Regular 0.00 560.22 73957 Account Number Account Name Item Description Distribution Amount Payable # Payable Type Post Date Payable Description Discount Amount Payable Amount INV0001484 Invoice 03/13/2026 SEIU UNION DUES 0.00 560.22 100-0000-21196 City Reimb Payable SEIU UNION DUES 416.25 120-0000-21196 City Reimb Payable SEIU UNION DUES 0.50
310-0000-21196 City Reimb Payable SEIU UNION DUES 71.54 410-0000-21196 City Reimb Payable SEIU UNION DUES 71.93 Total Regular: 0.00 99,903.37
Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code POOL-WFB Summary
Bank Drafts
EFT's
25 0
0 0
2 0.00

0.00 0.00

0.00 0.00
27 0.00
Payment
99,903.37

0.00 0.00

0.00 10,385.55
110,288.92
Payable
Count
40 0
0 0
4 44
Check Report Date Range: 03/01/2026 - 03/15/2026
3/16/2026 9:35:11 AM Page 6 of 6
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
25 0
0 0
2 0.00

0.00 0.00

0.00 0.00
27 0.00
99,903.37

0.00 0.00

0.00 10,385.55
110,288.92
40 0
0 0
4 44
Fund Name Period Amount
Fund Summary
999 Pooled Cash Fund 3/2026 110,288.92
110,288.92

Page 1 of 1 ends

City Council Special Meeting
March 10, 2026

1.__CALL TO ORDER:

Special Meeting called to order at 6:00pm by Mayor LeBarre.

2.__ROLL CALL:

City Council: Mayor Mike LeBarre, Mayor Pro Tem Carlos DeLeon (Absent), Council member Robert Cullen, Council member Carlos Victoria, Council members Oscar Avalos (Absent) City Staff: City Manager José Arreola, City Attorney Roy Santos; City Clerk Erica Sonne

3. Special Presentations
A. Proclamation to American Red Cross for American Red Cross Month 2026 The Mayor presented a proclamation to the Maria Magana for the American Red Cross and Ms. Magana said a few words on what the American Red Cross does.

ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 6:51p.m.

Approved Signatures:

Mayor Mike LeBarre City Clerk, Erica Sonne
City of King City of King
9(C)
Item No. 9(D)

REPORT TO THE CITY COUNCIL
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT

DIRECTOR
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF SECOND READING OF AN ORDINANCE

OF CITY COUNCIL OF THE CITY OF KING TO AMENDING
MUNICIPAL CODE CHAPTER17.01 AND 17.14 (R-2) MEDIUM
DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING

CITY MUNICIPAL CODE
RECOMMENDATION:

It is recommended the City Council waive the second reading by title only and adopt an Ordinance of City Council of the City of King Amending Municipal Code Chapter 17.01 and 17.14 (R-2) Medium Density Residential District of Title 17 of the King City Municipal Code.

BACKGROUND:

On January 13, 2026, City Council directed staff to prepare a zone amendment establishing victim service provider transitional housing as an allowed use in the R-2 zone. Victim service providers are professionals and organizations offering crucial support, advocacy and resources (counseling, housing and legal aid) to survivors of crime, including domestic violence, sexual assault and stalking.

Supporting victim service providers with transitional housing opportunities is an important component of the City’s 2023-2031 Housing Element (Cycle 6). One of the goals in the Housing Element includes Program 8 - Special Housing Needs which is to update the zoning code to accommodate a variety of housing types including transitional and supporting housing and to ensure consistency with State regulations.

CITY COUNCIL

CONSIDERATION SECOND READING OF AN ORDINANCE OF CITY

COUNCIL OF THE CITY OF KING TO AMENDING MUNICIPAL CODE
CHAPTER17.01 AND 17.14 (R-2) MEDIUM DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
MARCH 24, 2026
PAGE 2 OF 6
On February 3, 2026, the Planning Commission reviewed the proposed ordinance to amend the Municipal Code to permit Victim Service Provider Transitional Housing within the R-2 Zoning District. The Planning Commission continued the item to February 17, 2026 for further discussion, and directed staff to respond to questions posed during the hearing. The Planning Commission requested clarification regarding State law, and the number of people who can stay in a unit. On February 17, 2026, the Planning Commission unanimously recommended the City Council adopt said Ordinance. On March 20, 2026, the City Council conducted the first reading of the Ordinance.

DISCUSSION:

California law provides that transitional housing operated by a victim service provider shall be permitted in residential zones consistent with the requirements applicable to other residential uses. Currently, under State law, a residential use serving six or fewer persons must be treated the same as a family dwelling and permitted by right, without the need for a discretionary approval such as a conditional use permit (CUP). State law does not extend the same by-right allowance to facilities serving seven or more residents. City proposed text amendment would amend the R-2 zone to allow transitional housing operated by victim service provider as a permitted residential use, not requiring a use permit.

The Municipal Code Amendments as proposed, include the following:

Amend Title 4, Chapter 17.14 of the King Municipal Code to add the following subsection:
(1) 17.14.020 (7) Transitional Housing – Victim service provider, subject to the same objective development and property standards applicable to other residential uses in the R-2 zoning district.

Amend Title 4, Chapter 17.01 of the King City Municipal Code to add the following subsections:

17.01.501 “Transitional housing” has the meaning set forth in California Government Code Section 65582, as may be amended from time to time.

17.01. 545 “Victim service provider” means a nonprofit, governmental, or faith-based organization that provides shelter and supportive services to victims of domestic violence, sexual assault, human trafficking, stalking, or other crimes.

CITY COUNCIL

CONSIDERATION SECOND READING OF AN ORDINANCE OF CITY

COUNCIL OF THE CITY OF KING TO AMENDING MUNICIPAL CODE
CHAPTER17.01 AND 17.14 (R-2) MEDIUM DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
MARCH 24, 2026
PAGE 3 OF 6
The proposed amendment is consistent with the City’s 2023–2031 Housing Element to identify and address emergency shelters and transitional and supporting housing as special housing needs, including housing for femaleheaded households and individuals experiencing homelessness or in need of emergency shelter.

The following sections provide additional clarification regarding transitional and supportive housing.

Pre-emption Doctrine
Pre-emption under the law refers to the principle that a higher level of government’s laws take priority over, and can override, laws made by a lower level of government when the two conflict. Pre-emption occurs when federal law supersedes state or local law, and state law supersedes local law, because the higher authority has constitutional power over the subject matter. Pre-emption can be express, where a statute clearly states an intent to override lower laws, or implied, where courts infer it because the higher law occupies an entire regulatory field or because compliance with both laws is impossible. The doctrine promotes legal uniformity and clarity, ensuring that lower governments do not undermine national policies within areas reserved to higher authority.

Key California Law Requirements

1. Transitional and Supportive Housing Must Be Treated as a Residential Use.

Under Cal. Government Code § 65583 (a)(5), transitional housing and supportive housing are legally considered “residential uses of property.” They must be treated the same as other residential dwellings of the same type in the same zone. That means local governments cannot subject these housing types to discretionary local review (like conditional use permits) if similar residential uses would not require that review.

Cal. Health and Safety Code § 50675.2 defines transitional housing and supportive housing as follows:
▪ Transitional Housing as rental units requiring the termination of assistance and recirculation of the unit to a new recipient after a set period, which must be at least six months.

CITY COUNCIL

CONSIDERATION SECOND READING OF AN ORDINANCE OF CITY

COUNCIL OF THE CITY OF KING TO AMENDING MUNICIPAL CODE
CHAPTER17.01 AND 17.14 (R-2) MEDIUM DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
MARCH 24, 2026
PAGE 4 OF 6
▪ Supportive Housing as housing without a limit on length of stay, occupied by a target population (e.g., disabled, homeless) and linked to services that help residents retain housing and improve health.

2. Local Restrictions Cannot Be Stricter Than for Other Residential Uses.

Because of this requirement, local governments cannot impose additional zoning constraints or arbitrary limits (such as special approval processes or occupancy limits that do not apply to similar residential uses) on transitional housing. Local resident quotas, management plans, or house rules unique to transitional housing cannot be mandated unless they also apply to all other comparable housing.

Maximum Resident Limit.

Since transitional housing must be treated the same as other residential units, jurisdictions cannot set a unique maximum number of residents for transitional housing projects unless that same occupant limit applies to all similar residential dwellings in the zone. Background on SB 2 and Government Code.

However, the CA Health & Safety Code (“HSC”), Division 13, Part 1.5. and the Uniform Housing Code (“UHC”), § 503.2 does regulate the number of residents based on the following:
• Floor area per person
Habitable rooms generally must provide minimum square footage per occupant (commonly ~70 sq ft for the two people and ~50 sq ft for each additional person, depending on room type).
• Sleeping room requirements
Bedrooms must meet minimum size, ceiling height, emergency egress window, and ventilation standards. At least one bedroom shall be no less than 120 square feet and other bedrooms shall be no less than 70 square feet.

CITY COUNCIL

CONSIDERATION SECOND READING OF AN ORDINANCE OF CITY

COUNCIL OF THE CITY OF KING TO AMENDING MUNICIPAL CODE
CHAPTER17.01 AND 17.14 (R-2) MEDIUM DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
MARCH 24, 2026
PAGE 5 OF 6
• Plumbing fixtures
The number of toilets, sinks, etc. must be adequate for the number of occupants.
• Means of egress and fire safety
Exit access, smoke alarms, carbon monoxide alarms, and fire separation matter.

The following is an example of non-overcrowding or maximum occupancy based on the UHC (70 sq/ft for the first two occupants plus 50 sq/ft for each additional occupant):

Typical 1200 sq/ft dwelling with 3 bedrooms, 2 bathrooms and a living room. (very modest-sized house)
Master Bedroom- 170 sq/ft- 4 occupants
Bedroom 2- 120 sq/ft-3 occupants
Bedroom 3- 120 sq/ft- 3 occupants
Living room- 200 sq/ft- 4 occupants
Total Occupants- 14
Note: People are permitted to sleep in the living room provided a legal exit or egress window exists.

4. SB 2 amended the Housing Accountability Act and the Housing Element Law to ensure that transitional housing and supportive housing are not treated worse than other housing types in zoning and permitting.

5. Government Code § 65583(a)(5) (and related definitions in § 65582) are the statutory backbone: they define transitional housing and require it be permitted as residential use, subject only to the same restrictions that apply to similar housing types, without extra discretionary review or special caps.

6. Discretionary review cannot be required by local jurisdictions. Local jurisdictions cannot require conditional use permits, special hearings, or unique limits on the number of residents just because a housing project is designated “transitional.”

CITY COUNCIL

CONSIDERATION SECOND READING OF AN ORDINANCE OF CITY

COUNCIL OF THE CITY OF KING TO AMENDING MUNICIPAL CODE
CHAPTER17.01 AND 17.14 (R-2) MEDIUM DENSITY RESIDENTIAL DISTRICT OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
MARCH 24, 2026
PAGE 6 OF 6
If a transitional housing project meets all standard residential development standards for the zone, the city or county must process it ministerially, not through extra discretionary review.

COST ANALYSIS:

The only cost involved would be dedicating Community Development staff time and publication of public hearing notice(s). No appropriation of funding would be necessary.

ENVIRONMENTAL REVIEW:

The Ordinances are exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

ALTERNATIVES:

The following recommendations are provided for City Council consideration:

1. Conduct the Second Reading of the Ordinance;

2. Direct staff to modify the Ordinance;

3. Do not conduct the Second Reading of the Ordinance;

4. Request additional information; or

5. Provide staff other direction.

EXHIBITS:

Exhibit 1: February 3, 2026 and February 17, 2026 Planning Commission Staff Reports
Exhibit 2: Planning Commission Resolution
Exhibit 3: City Council Ordinance
DATE:

TO:

FROM:

RE:

KING CITY
CA L.lFO RN.l A
Item No. S(A)

REPORT TO THE PLANNING COMMISSION
FEBRUARY 3, 2026

HONORABLE CHAIR AND MEMBERS OF THE PLANNING

COMMISSION

DOREEN LIBERTO, COMMUNITY DEVELOPMENT DIRECTOR

CONSIDERATION OF ORDINANCE AMENDING MUNICIPAL
CODE CHAPTER 17.01 AND 17.14 (R-2) MEDIUM DENSITY

RESIDENTIAL DISTRICT TO ALLOW VICTIM SERVICE

PROVIDER TRANSITIONAL HOUSING
RECOMMENDATION:

It is recommended the Planning Commission adopt the attached Resolution No. 2026-355 which recommends the City Council adopt an Ordinance amending Chapter 17.01 and Chapter 17.14 (R-2 Medium Density Residential District) to allow victim service provider transitional housing.

BACKGROUND:

Supporting victim service providers with transitional housing opportunities is an important component of the City's 2023-2031 Housing Element (Cycle 6). One of the goals in the Housing Element includes Program 8 - Special Housing Needs which is to update the zoning code to accommodate a variety of housing types including transitional and supporting housing and to ensure consistency with State regulations.

DISCUSSION:

California law provides that transitional housing operated by a victim service provider shall be permitted in residential zones consistent with the requirements Exhibit 1

PLANNING COMMISSION
CONSIDERATION TO AMEND THE R-2 ZONING TO ALLOW VICTIM

SERVICE PROVIDER TRANSITIONAL HOUSING
FEBRUARY 3, 2026
PAGE 2OF 3
applicable to other residential uses. Currently, under State law, a residential use serving six or fewer persons must be treated the same as a family dwelling and permitted by right, without the need for a discretionary approval such as a conditional use permit (CUP). State law does not extend the same by-right allowance to facilities serving seven or more residents. City proposed text amendment would amend the R-2 zone to allow transitional housing operated by victim service provider as a permitted residential use, not requiring a use permit.

The Municipal Code Amendments as proposed include the following:

Amend Title 17, Chapter 17.14 of the King Municipal Code to add the following subsection:
(1) 17.14.020 (7) Transitional Housing - Victim service provider, subject to the same objective development and property standards applicable to other residential uses in the R-2 zoning district.

Amend Title 17, Chapter 17.01 of the King City Municipal Code to add the following subsections:
17 .01 .501 "Transitional housing" has the meaning set forth in California Government Code Section 65582. as may be amended from time to time. 17 .01. 545 "Victim service provider" means a nonprofit, governmental, or faith-based organization that provides shelter and supportive services to victims of domestic violence, sexual assault, human trafficking. stalking. or other crimes.

The proposed amendment is consistent with the City's 2023-2031 Housing Element to identify and address emergency shelters and transitional and supporting housing as special housing needs, including housing for femaleheaded households and individuals experiencing homelessness or in need of emergency shelter.

Note that the recommendation is restricted to Victim Service Provider housing, which are less likely to experience some of the concerns that may be associated with other forms of transitional housing in a residential neighborhood. In addition, the desire for the ability to house over 6 people would be to accommodate children of adult victims residing in the home.

PLANNING COMMISSION
CONSIDERATION TO AMEND THE R-2 ZONING TO ALLOW VICTIM

SERVICE PROVIDER TRANSITIONAL HOUSING
FEBRUARY 3, 2026
PAGE 3 OF 3
COST ANALYSIS:

The only cost involved would be dedicating Community Development staff time and publication of public hearing notice(s). No appropriation of funding would be necessary.

ENVIRONMENTAL REVIEW:

The Ordinances are exempt from the California Environmental Quality Act ("CEQA") because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

ALTERNATIVES:

The following recommendations are provided for Planning Commission consideration:

1. Adopt the Resolution recommending the City Council adopt the Ordinance;

2. Direct staff to modify one or more of the Ordinance;

3. Do not recommend the City Council adopt one or more of the Ordinance;

4. Request additional information; or

5. Provide staff other direction.

Exhibits:

Exhibit 1: Planning Commission Resolution No. 2026-355
Exhibit 2: Draft City Council Ordinance
Submitted by \-Ao.XIUIVL ~ 01\..u-- :k ~ l.t~ h,
Doreen Liberto, Al P, Community Development Director
RESOLUTION NO. 2026-355

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF KING

IN THE COUNTY OF MONTEREY, STATE OF CALIFORNIA,

RECOMMENDING THE CITY COUNCIL APPROVE AN ORDINANCE AMENDING TITLE 17, CHAPTER 17.01 AND CHAPTER 17.14 OF THE KING MUNICIPAL CODE

TO ALLOW TRANSITIONAL HOUSING OPERATED BY A VICTIM SERVICE PROVIDERS AS A PERMITTED RESIDENTIAL USE IN THE R-2 (MEDIUM DENSITY

RESIDENTIAL DISTRICT) ZONE
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in protecting the appearance and condition of neighborhoods for overall quality of life; and WHEREAS, the City of King General Plan Housing Element identifies the need to provide a variety of housing types to address the housing needs of all economic segments of the community, including housing for individuals and families fleeing domestic violence, sexual assault, human trafficking, and other crimes; and WHEREAS, California Government Code Section 65582 defines “transitional housing” and “supportive housing” as residential uses and requires that such housing be treated as a residential use of property, subject only to those restrictions that apply to other residential uses of the same type in the same zone; and WHEREAS, California law further provides that transitional housing operated by a victim service provider shall be permitted in residential zones consistent with the requirements applicable to other residential uses; and
WHEREAS, on January 13, 2026, the City Council of the City of King (“Council”) directed staff to prepare a zone amendment establishing victim service provider transitional housing; and
WHEREAS, the City desires to amend the R-2 zoning regulations to ensure consistency with State housing law and the City’s Housing Element by expressly allowing transitional housing operated by a victim service provider as a permitted residential use; and
WHEREAS, on February 3, 2026, the Planning Commission of the City of King held a duly noticed public hearing, accepted public comments, and public testimony and evidence, both written and oral, after which public testimony was closed and recommended the City Council adopt this ordinance; and
EXHIBIT 1
NOW THEREFORE, the Planning Commission of the City of King does hereby ordain as follows:

SECTION 1. The Planning Commission recommends the City Council find:

1. This ordinance is consistent with the City of King General Plan, including the Housing Element, because it facilitates housing opportunities for special needs populations and removes regulatory barriers to transitional housing.

2. Transitional housing operated by a victim service provider is a residential use and is compatible with other residential uses permitted in the R-2 zone.

3. Adoption of this ordinance is necessary to maintain compliance with State housing law.

SECTION 2. The Planning Commission recommends the City Council adopt an Ordinance which amends Chapter 17.14 of Title 17 of the King City Municipal Code by adding the following subsection, specifically identified below to read as follows:
(1) 17.14.020 (7) Transitional Housing – Victim service provider, subject to the same objective development and property
standards applicable to other residential uses in the R-2 zoning district.

SECTION 3. The Planning Commission recommends the City Council adopt an Ordinance which amends Chapter 17.01 of Title 17 of the King City Municipal Code by adding the following subsection, specifically identified below to read as follows:

17.01.501 “Transitional housing” has the meaning set forth in California Government Code Section 65582, as may be amended from time to time.

17.01.545 “Victim service provider” means a nonprofit,
governmental, or faith-based organization that provides shelter and supportive services to victims of domestic violence, sexual assault, human trafficking, stalking, or other crimes.

SECTION 4. The Planning Commission has reviewed the project and recommends that the City Council adopt a finding that the attached ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

This resolution was passed, approved and adopted by the Planning Commission on the 3rd day of February 2026 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF KING

David Nuck, Chairperson
ATTEST:
_________________________________________
Erica Sonne, Secretary to the Planning Commission
ORDINANCE NO. 2026-___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING, CALIFORNIA AMENDING TITLE 17, CHAPTER 17.01 AND CHAPTER 17.14 OF THE KING

MUNICIPAL CODE TO ALLOW TRANSITIONAL HOUSING OPERATED BY A VICTIM SERVICE PROVIDERS AS A PERMITTED RESIDENTIAL USE IN THE R-2 (MEDIUM DENSITY RESIDENTIAL DISTRICT) ZONE
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in protecting the appearance and condition of neighborhoods for overall quality of life; and WHEREAS, the City of King General Plan Housing Element identifies the need to provide a variety of housing types to address the housing needs of all economic segments of the community, including housing for individuals and families fleeing domestic violence, sexual assault, human trafficking, and other crimes; and WHEREAS, California Government Code Section 65582 defines “transitional housing” and “supportive housing” as residential uses and requires that such housing be treated as a residential use of property, subject only to those restrictions that apply to other residential uses of the same type in the same zone; and WHEREAS, California law further provides that transitional housing operated by a victim service provider shall be permitted in residential zones consistent with the requirements applicable to other residential uses; and
WHEREAS, on January 13, 2026, the City Council of the City of King (“Council”) directed staff to prepare a zone amendment establishing victim service provider transitional housing; and
WHEREAS, the City desires to amend the R-2 zoning regulations to ensure consistency with State housing law and the City’s Housing Element by expressly allowing transitional housing operated by a victim service provider as a permitted residential use; and
WHEREAS, on February 3, 2026, the Planning Commission of the City of King held a duly noticed public hearing, accepted public comments, and public testimony and evidence, both written and oral, after which public testimony was closed and recommended the City Council adopt this ordinance; and
WHEREAS, the City Council conducted a duly noticed public hearing on _______, 2026 and considered all testimony and evidence presented.

EXHIBIT 2

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KING FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. Findings.

The City Council finds that:

2. Transitional housing operated by a victim service provider is a residential use and is compatible with other residential uses permitted in the R-2 zone.

3. Adoption of this ordinance is necessary to maintain compliance with State housing law.

SECTION 2. Amendment to R-2 Zone Regulations.

Title 17, Chapter 17.14 of the King Municipal Code is hereby amended to add the following subsection:
(1) 17.14.020 (7) Transitional Housing – Victim service provider, subject to the same objective development and property standards applicable to other residential uses in the R-2 zoning district.

SECTION 3. Amendment to Chapter 17.01 (Definition)
Title 17, Chapter 17.01 of the King City Municipal Code is hereby amended to add the following subsections:

17.01.501 “Transitional housing” has the meaning set forth in California Government Code Section 65582, as may be amended from time to time.

17.01. 545 “Victim service provider” means a nonprofit, governmental, or faithbased organization that provides shelter and supportive services to victims of domestic violence, sexual assault, human trafficking, stalking, or other crimes.

SECTION 4. Severability.

If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the ordinance.

SECTION 5. CEQA Determination.

The Ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

SECTION 6. Effective Date.

This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. Within fifteen (15) calendar days after its adoption, the Ordinance, or a summary of the Ordinance, shall be published once in a newspaper of general circulation.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the _____ day of _________________ 2026, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________ 2026, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST

ERICA SONNE, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor
APPROVED AS TO FORM:

By:

ROY C. SANTOS, City Attorney
Burke, Williams & Sorensen, LLP
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.

EXHIBIT 2

EXHIBIT 3
Ord. 2026-841
ORDINANCE NO. 2026-841

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING, CALIFORNIA AMENDING TITLE 17, CHAPTER 17.01 AND CHAPTER 17.14 OF THE KING

MUNICIPAL CODE TO ALLOW TRANSITIONAL HOUSING OPERATED BY A VICTIM SERVICE PROVIDERS AS A PERMITTED RESIDENTIAL USE IN THE R-2 (MEDIUM DENSITY RESIDENTIAL DISTRICT) ZONE
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in protecting the appearance and condition of neighborhoods for overall quality of life; and WHEREAS, the City of King General Plan Housing Element identifies the need to provide a variety of housing types to address the housing needs of all economic segments of the community, including housing for individuals and families fleeing domestic violence, sexual assault, human trafficking, and other crimes; and WHEREAS, California Government Code Section 65582 defines “transitional housing” and “supportive housing” as residential uses and requires that such housing be treated as a residential use of property, subject only to those restrictions that apply to other residential uses of the same type in the same zone; and WHEREAS, California law further provides that transitional housing operated by a victim service provider shall be permitted in residential zones consistent with the requirements applicable to other residential uses; and
WHEREAS, on January 13, 2026, the City Council of the City of King (“Council”) directed staff to prepare a zone amendment establishing victim service provider transitional housing; and
WHEREAS, the City desires to amend the R-2 zoning regulations to ensure consistency with State housing law and the City’s Housing Element by expressly allowing transitional housing operated by a victim service provider as a permitted residential use; and
WHEREAS, on February 3, 2026, the Planning Commission of the City of King held a duly noticed public hearing, accepted public comments, and public testimony and evidence, both written and oral, after which public testimony was closed and recommended the City Council adopt this ordinance; and
WHEREAS, the City Council conducted a duly noticed public hearing on February 24, 2026 and considered all testimony and evidence presented.

EXHIBIT 3
Ord. 2026-841

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KING FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. Findings.

The City Council finds that:

2. Transitional housing operated by a victim service provider is a residential use and is compatible with other residential uses permitted in the R-2 zone.

3. Adoption of this ordinance is necessary to maintain compliance with State housing law.

SECTION 2. Amendment to R-2 Zone Regulations.

SECTION 3. Amendment to Chapter 17.01 (Definition)
Title 17, Chapter 17.01 of the King City Municipal Code is hereby amended to add the following subsections:

17.01.501 “Transitional housing” has the meaning set forth in California Government Code Section 65582, as may be amended from time to time.

SECTION 4. Severability.

EXHIBIT 3
Ord. 2026-841
SECTION 5. CEQA Determination.

SECTION 6. Effective Date.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the 10th day of March 2026, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________ 2026, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
ERICA SONNE, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor
EXHIBIT 3
Ord. 2026-841
APPROVED AS TO FORM:

By:

Item No. 9(E)

RELATED TO CITY MUNICIPAL ACCOUNTS AND INVESTMENT

ACCOUNTS
RECOMMENDATION:

It is recommended that the City Council; 1) adopt Resolution 2026-5083, Authorizing the establishment and maintenance of bank accounts for municipal funds and repealing resolutions in conflict herewith, and 2) adopt Resolution 2026-5084, Authorizing investment of monies in the Local Agency Investment Fund and designating officers authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund (LAIF)
BACKGROUND:

As a result of the pending departure of the Finance Director, it has become necessary to update signature authority related to city’s municipal bank accounts and investment accounts.

DISCUSSION:

It is important that the city maintain current those authorized to maintain and transfer funds for the payment of city expenditures and payroll. As a result of the pending departure of the Finance Director, effective March 29, 2026, it has become necessary to update those officers authorized to maintain, deposit, and transfer funds on behalf of the city’s municipal bank accounts and investment accounts.

COST ANALYSIS:

CITY COUNCIL

CONSIDERATION OF CHANGES TO SIGNATURE AUTHORITY RELATED TO

CITY MUNICIPAL ACCOUNTS AND INVESTMENT ACCOUNTS
FEBRUARY 24, 2026
PAGE 2 OF 2
There is no financial impact to this item.

ALTERNATIVES:

The following alternatives are provided for Council consideration:

1. Adopt Resolution 2026-5083 and Resolution 2026-5084

2. Provide other direction to staff.

Exhibits:

1. Resolution No 2026-5083, Resolution of the City of King authorizing the establishment and maintenance of bank accounts for municipal funds and repealing resolutions in conflict herewith.

2. Resolution No 2026-5084, Resolution of the City of King authorizing investments of monies in the Local Agency Investment Fund and designating officers authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund.

Resolution: 2026-____
RESOLUTION NO. 2026-5083

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING

AUTHORIZING THE ESTABLISHMENT AND MAINTENANCE OF BANK ACCOUNTS FOR

MUNICIPAL FUNDS AND REPEALING RESOLUTIONS IN CONFLICT HEREWITH WHEREAS, a commercial checking account (General, Successor Agency, Public Finance Authority, and Payroll) at Wells Fargo Bank, King City, California, for the deposit of City revenues to be used by the City Treasurer to transfer funds to and from the various City accounts as necessary and proper for City operations; and
WHEREAS, a commercial checking account at 1
st Capital Bank, King City, California, for the
deposit of City revenues to be used by the City Treasurer to transfer funds to and from the various City accounts as necessary and proper for City operations; and WHEREAS, all of the above Wells Fargo accounts may be accessed and transfers made using Wells Fargo Bank’s “Vantage Electronic Office Portal” system.

NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby stipulate that the proper officers of the City of King City are and are hereby authorized for and in behalf of said City to establish and maintain the above referenced accounts and to provide for deposits to and withdraws from said accounts as follows: all withdrawals from said deposit and payroll accounts to be made by checks or withdrawal slips signed by any two (2) of the following Mayor Michael LeBarre, Mayor Pro Tem Carlos DeLeon, or Jose Arreola, City Manager, per the current signature card on file at said Bank.

BE IT FURTHER RESOLVED, that the City Council does hereby authorize Mayor Michael LeBarre, Mayor Pro Tem Carlos DeLeon, Jose Arreola, City Manager, Accounting Technician Josefina Deniz, or City Clerk Erica Sonne, as per the current signature card on file at said Bank to access and make transfers the above referenced accounts using Wells Fargo Bank’s “Business Online Banking Plus” system.

BE IT FURTHER RESOLVED, that the City Council does hereby authorize Mayor Michael LeBarre, Mayor Pro Tem Carlos DeLeon, or Jose Arreola, City Manager, as per the current signature card on file at said Bank to execute for and in behalf of said City any and all agreements required by the respective bank mentioned above, including those contained on standard forms of signature cards, in order to open, use, and maintain such bank accounts.

BE IT FURTHER RESOLVED, that the City Council does hereby stipulate that all previous Resolutions which may be in conflict with this Resolution are hereby rescinded.

Michael LeBarre, Mayor Signature ___________________________ Carlos Victoria, Mayor Pro Tem Signature ___________________________ Jose Arreola, City Manager Signature ___________________________ Josefina Deniz, Accounting Technician Signature ___________________________ Erica Sonne, City Clerk Signature ___________________________ Exhibit 1
Resolution: 2026-____
PASSED AND ADOPTED at a regular meeting of the City Council of the City of King duly held on the 24th day of February, 2026, by the following vote:

AYES, Council Members:

NAYS, Council Members:

ABSENT, Council Members:

ABSTAINING, Council Members:

APPROVED:

Michael LeBarre, Mayor
ATTEST:

Erica Sonne, City Clerk
APPROVED AS TO FORM:

Roy Santos, Esq,
City Attorney
Resolution: 2026-____
Resolution 2026-____ Page 1 of 2
RESOLUTION NO. 2026-5084

RESOLUTION OF THE CITY OF KING

AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND

DESIGNATING OFFICERS AUTHORIZED TO ORDER THE DEPOSIT OR WITHDRAWAL OF MONIES

IN THE LOCAL AGENCY INVESTMENT FUND
WHEREAS, Chapter 730 of the Statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a Local Agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose for investment as stated therein is in the best interest of the City; NOW, THEREFORE, BE IT RESOLVED, that the City Council does hereby authorize the deposit and withdrawal of City monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer’s Office of all banking information provided in that regard BE IT FURTHER RESOLVED, that the following City of King, California officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund:

Michael LeBarre, Mayor Signature ___________________________ Carlos DeLeon, Mayor Pro Tem Signature ___________________________ Jose Arreola, City Manager Signature ___________________________ Josefina Deniz, Accounting Technician Signature ___________________________ PASSED AND ADOPTED at a regular meeting of the City Council of the City of King duly held on the 24th day of February 2026 by the following vote:

AYES, Council Members:

NAYS, Council Members:

ABSENT, Council Members:

ABSTAINING, Council Members:

APPROVED:
________________________
Michael LeBarre, Mayor
Exhibit 2
Resolution 2026-____ Page 2 of 2
ATTEST:

Erica Sonne, City Clerk
APPROVED AS TO FORM:

Roy Santos, Esq,
City Attorney

Page 1 of 1 ends

City Council Special Meeting
March 11, 2026

1.__CALL TO ORDER:

Special Meeting called to order at 12:28pm by Mayor LeBarre.

2.__ROLL CALL:

City Council: Mayor Mike LeBarre, Mayor Pro Tem Carlos DeLeon (Absent), Council member Robert Cullen, Council member Carlos Victoria (Absent), Council members Oscar Avalos City Staff: City Manager José Arreola, Chief Robert Masterson; City Clerk Erica Sonne; Human Resources Manager Veronica Contreras, Accounting Tech Josefina Deniz; Executive Assistant Adriana Granados

3. Special Presentations
A. Mayor Mike LeBarre, new City Manager Jose Arreola and Police Chief Robert Masterson will provide an update on the City’s efforts and plans.

Mayor LeBarre introduced Colonel Jason McKenzie who spoke of an upcoming event.

Mayor LeBarre gave an update on the State of the City with mentioning the multimodal and housing going in and Broadway going through to a new housing development that has been in to works for years. He also mentioned about the sewer billing and what the payment of sewer is going to for down at the wastewater treatment plant.

New City Manager Jose Arreola spoke on what he sees in the future for King City and what he wants to work on.

Chief Robert Masterson spoke on crime percentages, sworn staffing shortages and the passing of Sergeant Ryan Kennedy last year.

There were questions about the sewer system and the purple pipe system; Housing specifically senior housing; a hotel possibility; the old Rite Aid building; security cameras and the roundabout project.

ADJOURNMENT:

Mayor LeBarre adjourned the meeting at 1:18p.m.

Approved Signatures:

Mayor Mike LeBarre City Clerk, Erica Sonne
City of King City of King
9(F)
Item No. 9(G)

CITY COUNCIL STAFF REPORT
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JEFF VAN DEN EIKHOF, CONSULTANT CITY ENGINEER
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: KING CITY FIRE STATION PARKING LOT PAVING PROJECT
RECOMMENDATION:

It is recommended that the City Council approve: 1) a Contractor Services Agreement with SiteWorx, Inc. for the King City Fire Station Parking Lot Paving Project, in the proposed amount of $58,500; 2) Authorize the City Manager to approve change orders up to twenty (20%) percent; and 3) Adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.

BACKGROUND:

The King City Fire Station, located at 422 Bassett Street, was constructed in 1978. The existing fire station parking lot is currently unpaved. Over the years, the King City Fire Department has maintained the dirt lot; however, the Fire Department has long expressed a desire to pave the parking area when time and funding allow.

Recently, an adjacent property owner, Tom Salcido, arranged to pave two of his adjoining parcels, which includes the leased King City School District offices.

Property owner. Tom Salcedo contacted the City of King, request participation in a coordinated project to pave all areas shown on Exhibit 1, including portion of the Fire Station dirt parking lot.

DISCUSSION:

The adjoining properties have a contract with SiteWork, Inc. to pave and restripe the adjoining parking lots. To maintain continuity of the paving throughout the properties, the Fire Department requested and received a proposal from

CITY COUNCIL

CONSIDERATION OF AWARD FOR THE KING CITY FIRE DEPARTMENT

PARKING LOT PAVING PROJECT
MARCH 24, 2026
PAGE 2 OF 2
SiteWorx, Inc. in the amount of $58,500 to pave the City’s portion of the parking lots.

Although not competitively bid, Staff recommends entering into a sole-source agreement with SiteWorx, Inc. to ensure that the asphalt pavement between the properties is completed simultaneously, maintaining continuity.

COST ANALYSIS:

The cost proposal for the King City Fire Station Parking Lot Paving Project is $58,500. (Reference Exhibit 2.) Authorize the City Manager to approve change orders up to an increase of twenty (20%) percent. Staff recommends using Fire Impact Fees funds for this work. The current fund balance for the Fire Impact Fee account is $282.693.

ENVIRONMENTAL REVIEW:

This proposed project is categorically exempt as set forth in Section 15301 of the CEQA guidelines because the contract is for maintenance. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2, apply to this project.

ALTERNATIVES:

The following alternatives are provided for Council consideration:

1. Approve the proposed agreement with SiteWorx, Inc., for the King City Fire Station Parking Lot Paving Project, in the proposed amount of $58,500.) Authorize the City Manager to approve change orders up to 20 percent; and

3.) Adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.

2. Do not award the Fire Station Parking Lot Paving Project; or

3. Provide staff with other direction.

EXHIBITS:

1. Site Exhibit

2. SiteWorx, Inc. cost proposal
ArcGIS Web Map

MONTEREY CO
Incorporated Cities_1
Roads
Minor Arterial
Major Collector
Local
Parcels
Addresses
3/13/2026, 8:49:59 AM
0 0.01 0.02 0.04 mi
0 0.02 0.04 0.07 km
1:1,128
ArcGIS Web AppBuilder
County of Monterey |
113 Exhibit 1

Item No. 10(A)

REPORT TO THE CITY COUNCIL
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROY C. SANTOS, CITY ATTORNEY
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION ADOPTION OF AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF KING REPEALING AND
REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17

OF THE KING CITY MUNICIPAL CODE PERTAINING TO

COMMERCIAL CANNABIS ACTIVITY
RECOMMENDATION:

It is recommended that the City Council introduce to be read by title only an Ordinance repealing and replacing Chapter 17.03, Section 17.03.070, of Title 17 of the King City Municipal Code pertaining to commercial cannabis activity, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve the introduction of the Ordinance.

BACKGROUND:

In light of recent changes in the commercial cannabis regulations relating to employees of cannabis businesses, the City staff is recommending repealing its current employee permitting requirements. The City cannot get the required approvals from the State of California to conduct Live Scan background checks for commercial cannabis employees and such activities are disfavored by State cannabis regulators.

DISCUSSION:

The proposed Ordinance amendment is presented at this time for your review and the introduction and first reading of the Ordinance amendment is recommended. The primary changes proposed in the Ordinance include the following:

CITY COUNCIL/CITY

CONSIDERATION ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING REPEALING AND REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

PERTAINING TO COMMERCIAL CANNABIS ACTIVITY
MARCH 24, 2026
PAGE 2 OF 5
Section 17.03.070 Employee work permits. (Reserved)(a) Every employee or independent contractor working at a commercial cannabis business or involved in the transportation related services for a commercial cannabis business shall obtain an employee work permit issued by the city. It shall be the responsibility of the commercial cannabis business permit holder to ensure that the employee or independent contractor has received their work permit from the city prior to commencing any work. Persons who are listed as the commercial cannabis permit holder shall not be required to obtain an employee work permit if such person also serves as an employee or contractor.
(b) Each prospective employee or independent contractor shall be required to submit an application to the city manager so that a background check can be performed by the chief of police. The application shall contain the following:
(1) Name, current resident address, and telephone number. (2) Date of birth.
(3) Social security number, tax identification number or state of California identification card.
(4) Height, weight, eye color and hair color.
(5) Photographs for identification purposes (photographs may be taken by the King City police department or the prospective employee may provide the city with a United States Passport quality photograph).
(6) Be fingerprinted by the King City police department or the California Department of Justice LiveScan system and agree to a criminal history records check conducted by the city manager based upon their fingerprints. (7) Such other identification and information as deemed necessary by the chief of police and pertinent to the employee work permit. (8) Authorization for the city manager to seek verification of the information contained within the application, including, but not limited to, the prospective employee’s criminal arrest and credit history. (9) The name of the commercial cannabis permit holder for which the applicant is seeking to work.
(c) Every applicant for an employee work permit shall provide the city with a non-refundable fee, as established by resolution of the city council, to process their application. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application. In the alternative, the applicant may provide the city manager with a completed background check performed by a third party vendor approved by the city.
(d) The city manager, upon receiving a properly completed application and payment of the application fee or a completed third party background check, shall conduct an investigation into the information provided by the applicant. The

CITY COUNCIL/CITY

CONSIDERATION ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING REPEALING AND REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

PERTAINING TO COMMERCIAL CANNABIS ACTIVITY
MARCH 24, 2026
PAGE 3 OF 5
background check and investigation or review shall be complete within thirty days of receiving the properly completed application and completed background check. The city manager shall provide the applicant with notice either approving or denying the requested employee work permit within fifteen days of completing the background check and investigation. The city manager, in their sole discretion, may conditionally approve the issuance of an employee work permit pending completion of the background check and investigation. Notice of the decision shall be personally served or mailed to the applicant via U.S. mail.

Notice of the decision is presumed served upon the applicant at the time it is deposited within the U.S. mail. The decision of the city manager on an employee permit shall be
(e) An employee work permit shall be denied based upon any of the following grounds:
(1) The applicant has been issued a local or state permit or license to conduct commercial cannabis activities at any other location within the state of California or another state and the permit or license was suspended or revoked, or the applicant has had disciplinary action relating to the permit or license. (2) The applicant has been convicted of a serious or violent offense as listed within California Penal Code Sections 667.5 and 1192.7(c). (3) The applicant has been convicted of any offense listed within Business and Professions Code Section 19323.
(4) The applicant has been convicted of a misdemeanor involving theft, dishonesty, fraud, narcotics sales or narcotic trafficking within the five years preceding the date of the application.
(5) The applicant has been convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined within the Federal Controlled Substance Act, unless the applicant received a Certificate of Rehabilitation as defined in the Act. (6) The applicant has engage in misconduct related to the qualifications, functions or duties of their position with the commercial cannabis business. (7) The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business practices as defined by the King City Municipal Code and/or state or federal law.
(8) The applicant is under the age of twenty-one, or any age as may be set by state law.
(9) The applicant meets any of the conditions identified within Business and Professions Code Section 26057(b).
(f) The city manager may suspend or revoke an employee work permit when the employee or independent contractor has committed any of the following acts:

CITY COUNCIL/CITY

CONSIDERATION ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING REPEALING AND REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

PERTAINING TO COMMERCIAL CANNABIS ACTIVITY
MARCH 24, 2026
PAGE 4 OF 5
(1) Any action which would be grounds for denial of an employee work permit.
(2) Any violation of this chapter, the King City Municipal Code, or any other applicable state or federal law governing the commercial cannabis business or activity.
(3) An employee or independent contractor working for a commercial cannabis testing facility is also employed or volunteers at any commercial cannabis business engaging in non-testing commercial cannabis activities. (g) Prior to suspending or revoking an employee work permit, the city manager shall conduct a hearing. Written notice of the hearing shall be provided to the employee or independent contractor at least five calendar days prior to the hearing. The notice shall contain the basis for suspending or revoking the employee work permit. Notice may be provided by either personal service or U.S. mail. After the hearing, the city manager shall provide notice of the decision whether to suspend or revoke the employee work permit. The decision of the city manager shall be final, subject to judicial review. The employee or independent contractor has no right to appeal the decision to the city council. (h) The city manager may immediately suspend an employee work permit without notice or hearing, subject to appeal rights as set forth in this chapter, under the following circumstances:
(1) The employee or independent contractor is convicted of a public offense in any court for the violation of any law which would be grounds for denial of an employee work permit.
(2) The chief of police determines immediate suspension is necessary to protect the health, safety and welfare of the community. The city manager shall provide notice of the grounds for immediate suspension of the employee work permit and the suspension shall only be for as long as reasonably necessary to address the grounds which led to the suspension.
(i) An employee work permit shall expire two years from the date it was issued by the city. An employee work permit shall authorize the individual to work for any commercial cannabis business within the city limits of the city of King.

COST ANALYSIS:

The amendment will not result in any cost to the City.

CITY COUNCIL/CITY

CONSIDERATION ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING REPEALING AND REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17 OF THE KING CITY MUNICIPAL CODE

PERTAINING TO COMMERCIAL CANNABIS ACTIVITY
MARCH 24, 2026
PAGE 5 OF 5
ENVIRONMENTAL REVIEW:

This matter is not a “project” for the purposes of the California Environmental Quality Act (CEQA) as it does not have the potential for resulting in either a direct physical change to the environment, or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.

ALTERNATIVES:

The following alternatives are provided for City Council consideration:

1. Introduce the Ordinance;

2. Modify the Ordinance;

3. Direct staff to instead establish all the fines by Ordinance;

4. Do not adopt the Ordinance; or

5. Provide staff other direction.
4914-9011-8275 v1
ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING REPEALING AND REPLACING CHAPTER 17.03, SECTION 17.03.070, OF TITLE 17 OF THE KING

CITY MUNICIPAL CODE PERTAINING TO COMMERCIAL CANNABIS ACTIVITY WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, pursuant to the City’s express statutory authority and its inherent police power, the City desires to repeal the employee work permitting requirements of Chapter 17.03, Section 17.03.070, of Tittle 17.

NOW THEREFORE, the City Council of the City of King does hereby ordain as follows:

SECTION 1. The above recitals are incorporated hereto by reference as if fully restated.

SECTION 2. The Ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3).) Further, the adoption and implementation of this Ordinance is not a project, as defined in CEQA Guidelines section 15378, because it has no potential for resulting in physical change to the environment, either directly or indirectly, and is therefore not subject to environmental review under CEQA pursuant to CEQA Guidelines section 15060(c)(3).

SECTION 3. Chapter 17.03, Section 17.03.070, of Title 17, of the King City Municipal Code is hereby repealed and replaced to read as follows:

Chapter 17.03

COMMERCIAL CANNABIS ACTIVITY
Section 17.03.070 Employee work permits. (Reserved)
(a) Every employee or independent contractor working at a commercial cannabis business or involved in the transportation related services for a commercial cannabis business shall obtain an employee work permit issued by the city. It shall be the responsibility of the commercial cannabis business permit holder to ensure that the employee or independent contractor has received their work permit from the city prior to commencing any work. Persons who are listed as the commercial cannabis permit holder shall not be required to obtain an employee work permit if such person also serves as an employee or contractor.
(b) Each prospective employee or independent contractor shall be required to submit an application to the city manager so that a background check can be performed by the chief of police. The application shall contain the following:
(1) Name, current resident address, and telephone number. (2) Date of birth.
(3) Social security number, tax identification number or state of California identification card.
4914-9011-8275 v1
(4) Height, weight, eye color and hair color.
(5) Photographs for identification purposes (photographs may be taken by the King City police department or the prospective employee may provide the city with a United States Passport quality photograph).
(6) Be fingerprinted by the King City police department or the California Department of Justice LiveScan system and agree to a criminal history records check conducted by the city manager based upon their fingerprints.
(7) Such other identification and information as deemed necessary by the chief of police and pertinent to the employee work permit.
(8) Authorization for the city manager to seek verification of the information contained within the application, including, but not limited to, the prospective employee’s criminal arrest and credit history.
(9) The name of the commercial cannabis permit holder for which the applicant is seeking to work.
(c) Every applicant for an employee work permit shall provide the city with a nonrefundable fee, as established by resolution of the city council, to process their application. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application. In the alternative, the applicant may provide the city manager with a completed background check performed by a third party vendor approved by the city.
(d) The city manager, upon receiving a properly completed application and payment of the application fee or a completed third party background check, shall conduct an investigation into the information provided by the applicant. The background check and investigation or review shall be complete within thirty days of receiving the properly completed application and completed background check. The city manager shall provide the applicant with notice either approving or denying the requested employee work permit within fifteen days of completing the background check and investigation. The city manager, in their sole discretion, may conditionally approve the issuance of an employee work permit pending completion of the background check and investigation. Notice of the decision shall be personally served or mailed to the applicant via U.S. mail. Notice of the decision is presumed served upon the applicant at the time it is deposited within the U.S. mail. The decision of the city manager on an employee permit shall be (e) An employee work permit shall be denied based upon any of the following grounds:
(1) The applicant has been issued a local or state permit or license to conduct commercial cannabis activities at any other location within the state of California or another state and the permit or license was suspended or revoked, or the applicant has had disciplinary action relating to the permit or license.
(2) The applicant has been convicted of a serious or violent offense as listed within California Penal Code Sections 667.5 and 1192.7(c).
(3) The applicant has been convicted of any offense listed within Business and Professions Code Section 19323.
4914-9011-8275 v1
(4) The applicant has been convicted of a misdemeanor involving theft, dishonesty, fraud, narcotics sales or narcotic trafficking within the five years preceding the date of the application. (5) The applicant has been convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined within the Federal Controlled Substance Act, unless the applicant received a Certificate of Rehabilitation as defined in the Act.
(6) The applicant has engage in misconduct related to the qualifications, functions or duties of their position with the commercial cannabis business. (7) The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business practices as defined by the King City Municipal Code and/or state or federal law. (8) The applicant is under the age of twenty-one, or any age as may be set by state law. (9) The applicant meets any of the conditions identified within Business and Professions Code Section 26057(b).
(f) The city manager may suspend or revoke an employee work permit when the employee or independent contractor has committed any of the following acts:
(1) Any action which would be grounds for denial of an employee work permit. (2) Any violation of this chapter, the King City Municipal Code, or any other applicable state or federal law governing the commercial cannabis business or activity. (3) An employee or independent contractor working for a commercial cannabis testing facility is also employed or volunteers at any commercial cannabis business engaging in nontesting commercial cannabis activities. (g) Prior to suspending or revoking an employee work permit, the city manager shall conduct a hearing. Written notice of the hearing shall be provided to the employee or independent contractor at least five calendar days prior to the hearing. The notice shall contain the basis for suspending or revoking the employee work permit. Notice may be provided by either personal service or U.S. mail. After the hearing, the city manager shall provide notice of the decision whether to suspend or revoke the employee work permit. The decision of the city manager shall be final, subject to judicial review. The employee or independent contractor has no right to appeal the decision to the city council.
(h) The city manager may immediately suspend an employee work permit without notice or hearing, subject to appeal rights as set forth in this chapter, under the following circumstances:
(1) The employee or independent contractor is convicted of a public offense in any court for the violation of any law which would be grounds for denial of an employee work permit. (2) The chief of police determines immediate suspension is necessary to protect the health, safety and welfare of the community. The city manager shall provide notice of the grounds for immediate suspension of the employee work permit and the suspension shall only be for as long as reasonably necessary to address the grounds which led to the suspension. 4914-9011-8275 v1
(i) An employee work permit shall expire two years from the date it was issued by the city. An employee work permit shall authorize the individual to work for any commercial cannabis business within the city limits of the city of King.

SECTION 4: EFFECTIVE DATE.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the ____ day of _________ 2026, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of ____________ 2026, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
Erica Sonne, City Clerk

CITY OF KING
By:

MIKE LEBARRE, Mayor
APPROVED AS TO FORM:

By:

ROY C. SANTOS, City Attorney
Burke, Willians & Sorensen, LLP
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.

Item No. 11(A)

REPORT TO THE CITY COUNCIL
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: ACCEPTANCE OF THE CITY AND CDA SUCCESSOR
AGENCY’S AUDITED FINANCIAL STATEMENTS FOR THE
FISCAL YEAR 2024-2025
RECOMMENDATION:

It is recommended that the City Council and the Board of Directors of the King City CDA Successor Agency accept the City and CDA Successor Agency’s Audited Financial Statements for Fiscal Year Ended June 30, 2025.

BACKGROUND:

The State of California Government code (sections 25250 & 25253) require all general-purpose local government to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA) in conformance with generally accepted auditing standards (GAGAS). The goal of the audit by an independent firm is to provide reasonable assurance that the accounting transactions, practices, and procedures result in fair presentation of the financial position of the organization. In addition, the audit provides the same type of assurance about management’s assertions about the adequacy of internal accounting controls to safeguard the assets of the entities.

DISCUSSION:

The independent auditor has rendered an unqualified audit opinion indicating that the City and Successor Agency are materially in compliance and has accounting records that properly reflect the financial position of those entities.

CITY COUNCIL
ACCEPTANCE OF THE CITY AND CDA SUCCESSOR AGENCY’S AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR 2023-2024
SEPTEMBER 9, 2025
PAGE 2 OF 2
The final numbers for FY 2024-25 demonstrate continued positive movement for the City, and better than budget in the General Fund. The General Fund ended the Fiscal Year with an increase to the Fund Balance of $4,820,712.

The City has received an “Unqualified Opinion” regarding the presented financial statements for audit. We continue to monitor the decommissioned landfill site through testing for contamination following previous “wet” years to make sure key markers do not begin to rise. So far, the City remains in good shape regarding the decommissioned landfill site and any future unrecognized liability.

Other funds are performing as expected.

COST ANALYSIS:

There is no financial impact to this item.

ENFIRONMENTAL REVIEW:

The acceptance of the Audited Financial Statements is not considered a project for the purposes of CEQA and has no potential for resulting in either a direct or indirect impact to the environment.

ALTERNATIVES:

The following alternatives are provided for Council consideration:

1. Receive and file the audited financial statements for FY 2024-25;

2. Postpone the acceptance of the audited report pending clarification if any; or

3. Provide other direction to staff.

Exhibits:

1. City of King Independent Auditor’s Report and Financial Statements FY 2024-25.

2. City of King Management Report FY 2024-25.

CITY OF KING CITY
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2025
Exhibit 1

C O N T E N T S
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet – Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance – Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenue, Expense and Changes in Fund Net
Position – Proprietary Funds 11
Statement of Cash Flow – Proprietary Funds 12 – 13
Statement of Fiduciary Net Position – Private-Purpose
Trust Fund – Successor Agency 14
Statement of Changes in Fiduciary Net Position – Private-Purpose Trust Fund – Successor Agency 15
Notes to Basic Financial Statements 16 – 44
C O N T E N T S (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 45
Budgetary Comparison Schedule – Measure X Fund 46
Budgetary Comparison Schedule – Development Impact Fees Fund 47 Schedule of the City’s Proportionate Share of Net Pension Liability 48 Schedule of Contributions 49
Supplemental Only Information
Combining Balance Sheet – Nonmajor
Governmental Funds 50 – 53
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor
Governmental Funds 54 – 57
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 58 – 59 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of King City, California
Report on the Audit of the Financial Statements
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 the City of King City (the “City”), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements 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, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the 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 the 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 the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with 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
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 45–47 and the Schedule of the City’s Proportionate Share of Net Pension Liability and the Schedule of Contributions pages 48 and 49 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 12, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s 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 City’s internal control over financial reporting and compliance.

March 12, 2026
See accompanying notes. 4

CITY OF KING CITY

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 4,866,940 $ 8,473,831 $ 13,340,771 Restricted cash and investments - 189 189
Accounts receivable 45,826 304,446 350,272
Due from other governments 6,710,360 - 6,710,360
Interest receivable 1,144,997 30,575 1,175,572
Notes receivable 3,000,000 - 3,000,000
Internal balances (1,452,089) 1,452,089 - Capital assets (net of allowance for depreciation and amortization) 18,389,541 13,823,014 32,212,555 Total assets 32,705,575 24,084,144 56,789,719
DEFERRED OUTFLOW OF RESOURCES 2,592,732 337,385 2,930,117

LIABILITIES
Accounts payable and accrued expenses 1,041,584 794,880 1,836,464 Accrued interest - 24,440 24,440
Deposits 170,885 - 170,885
Noncurrent liabilities
Due within one year 115,009 345,586 460,595
Due in more than one year 441,719 3,709,861 4,151,580
Compensated absences 743,882 - 743,882
Lease liability 7,668 9,390 17,058
Net pension liability 7,659,282 572,080 8,231,362
Total liabilities 10,180,029 5,456,237 15,636,266
DEFERRED INFLOW OF RESOURCES 133,255 9,952 143,207

NET POSITION
Net investment in capital assets 17,832,813 9,767,567 27,600,380 Restricted for debt service - 189 189
Restricted for capital projects 4,499,146 - 4,499,146
Restricted for long-term notes receivable 3,000,000 - 3,000,000 Restricted for specific projects and programs 773,725 - 773,725 Unrestricted (deficit) (1,120,661) 9,187,584 8,066,923
Total net position $ 24,985,023 $ 18,955,340 $ 43,940,363 See accompanying notes. 5

CITY OF KING CITY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government $ 1,873,778 $ 443,272 $ 155,729 $ 387,942 $ (886,835) $ - $ (886,835) Public safety 6,487,809 158,725 243,964 - (11,422,314) - (11,422,314) Public works 5,331,937 57,428 35,085 26,142 674,245 - 674,245 Culture and recreation 1,059,538 174,628 2,950 776,727 (105,233) - (105,233) Community development 7,771,073 354,701 5,965,738 - (2,000,967) - (2,000,967) Debt service
Interest expense 21,248 - - - (21,248) - (21,248)
Total governmental activities 22,545,383 1,188,754 6,403,466 1,190,811 (13,762,352) (13,762,352) - Business-type activities Sewer 4,206,150 4,254,784 - 42,552 - 91,186 91,186
Power 4,906,735 5,021,066 - - - 114,331 114,331
Total business-type activities 9,112,885 9,275,850 - 42,552 - 205,517 205,517 Total primary government $ 31,658,268 $ 10,464,604 $ 6,403,466 $ 1,233,363 (13,762,352) 205,517 (13,556,835) General Revenue
Property taxes 1,682,611 - 1,682,611
Franchise taxes 1,212,674 - 1,212,674
Sales taxes 5,166,916 - 5,166,916
Transient occupancy taxes 472,458 - 472,458
Utility users tax 513,432 - 513,432
Business licenses 219,575 - 219,575
Motor vehicle in-lieu 1,330,572 - 1,330,572
Investment income 433,467 343,745 777,212
Gain on sale of property 16,540 - 16,540
Other revenues 1,329,988 2,217 1,332,205
Transfers 232,000 (232,000) - Total general revenue and transfers 12,610,233 113,962 12,724,195 Change in Net Position (1,152,119) 319,479 (832,640)
Net Position
Beginning of year 26,137,142 18,635,861 44,773,003
End of year $ 24,985,023 $ 18,955,340 $ 43,940,363
Program Revenue Primary Government
Net Revenue/(Expense) and Changes in Net Position
Functions/Programs
See accompanying notes. 6

CITY OF KING CITY
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2025
Formerly Nonmajor Formerly Nonmajor Formerly Major Formerly Major American Other Total
State Development Rescue Plan Gas Tax Governmental Governmental General HOME Grant Measure X Grants Impact Fees Act Fund Funds Funds ASSETS
Cash and investments $ - $ - $ 377,241 $ - $ 2,363,818 $ - $ - $ 2,125,881 $ 4,866,940 Accounts receivable 34,618 - - - - - - 11,208 45,826
Due from other governments 917,896 - 284,714 4,722,518 - - - 785,232 6,710,360 Interest receivable 15,236 1,110,000 1,253 - 7,291 - - 11,217 1,144,997 Due from other funds 4,853,033 - - - - - - 4,853,033 - Notes receivable 3,000,000 - - - - - - 3,000,000 - Total assets $ 5,820,783 $ 4,110,000 $ 663,208 $ 4,722,518 $ 2,371,109 $ - $ - $ 2,933,538 $ 20,621,156

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCE
Accounts payable and accrued expense $ 829,186 $ - $ - $ 10,698 $ 17,200 $ - $ - $ 184,500 $ 1,041,584 Deposits 170,885 - - - - - - - 170,885
Due to other funds - - - 4,598,212 - - - 1,706,910 6,305,122 Total liabilities 1,000,071 - - 4,608,910 17,200 - - 1,891,410 7,517,591 Deferred inflows of resources
Deferred loans 4,110,000 - - - - - - 4,110,000 - Total deferred inflows of resources - 4,110,000 - - - - - 4,110,000 - FUND BALANCE Restricted
Circulation improvements - - - - - - - 427,470 427,470
Community services - - - - - - - 114,982 114,982
Capital improvement projects - - 663,208 113,608 2,353,909 - - 940,951 4,071,676 Public safety - - - - - - - 728,747 728,747
Landscape maintenance - - - - - - - 44,978 44,978
Unassigned 4,820,712 - - - - - (1,215,000) - 3,605,712
Total fund balance 4,820,712 - 663,208 113,608 2,353,909 - - 1,042,128 8,993,565 Total liabilities, deferred inflows of
resources, and fund balance $ 5,820,783 $ 4,110,000 $ 663,208 $ 4,722,518 $ 2,371,109 $ - $ - $ 2,933,538 $ 20,621,156 Special Revenue Funds
See accompanying notes. 7

CITY OF KING CITY

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2025
Total governmental fund balances $ 8,993,565
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in Governmental Activities are not financial resources and, therefore, are not reported in the governmental funds 18,389,541 Certain revenues in Governmental Funds are deferred because they are not collected within the prescribed time period after fiscal year end.

Those revenues are recognized on the accrual basis in Governmental Activities 4,110,000
Net pension liability applicable to Governmental Activities are not due and payable in the current period and accordingly is not reportable in the Governmental Funds (7,659,282)
Deferred inflows/outflows of resources related to net pension liability, represent an acquisition/consumption of net position or fund balance that applies to future period(s) and so will not be recognized as an inflow/outflow of resources (revenue/expenditure) until that time 2,459,477
Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds (564,396) Compensated absences are not due and payable in the current period and, therefore, are not reported in the Governmental Funds (743,882) Net position of governmental activities $ 24,985,023
See accompanying notes. 8

CITY OF KING CITY
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2025
Formerly Nonmajor Formerly Nonmajor Formerly Major Formerly Major American Other Total Development Rescue Plan Gas Tax Governmental Governmental General HOME Grant Measure X State Grants Impact Fees Act Fund Funds Funds Revenue Taxes $ 8,694,594 $ - $ 574,987 $ - $ - $ - $ 922,389 - $ $ 10,191,970 Intergovernmental 119,134 - - 5,887,527 - - - 2,564,800 8,571,461 Charges for services 38,396 - - - - - - 81,938 120,334
Licenses, permits and impact fees 937,886 - - - 541,559 - - - 1,479,445 Fines and forfeitures 54,918 - - - - - - - 54,918
Interest and rent 155,084 - 18,132 - 73,504 - - 121,653 368,373 Other 1,675,388 - - - - - - 604 1,675,992
Total revenue 11,675,400 - 593,119 5,887,527 615,063 - 3,691,384 - 22,462,493 Expenditures Current General government 1,526,292 - - - - - - 154,903 1,681,195 Public safety 5,612,564 - - - - - - 86,442 5,699,006
Public works 1,671,104 - 589,812 - 27,568 - - 3,455,417 5,743,901 Culture and recreation 933,361 - - - - - - - 933,361
Community development 2,018,208 - - 5,337,195 17,200 - - 363,733 7,736,336 Capital outlay 117,077 - - - 101,259 - - 613,516 831,852 Debt Service
Principal 92,781 - - - - - - 56,599 149,380
Interest and fiscal charges 14,073 - - - - - - 7,175 21,248 Total expenditures 11,985,460 - 589,812 5,337,195 146,027 - 4,737,785 - 22,796,279 Revenue over/(under) expenditures (310,060) - 3,307 550,332 469,036 - - (1,046,401) (333,786) Other Financing Sources/(Uses)
Sale of property 15,040 - - - - - - - 15,040
Transfers in/(out) - net 109,799 - - - - - 122,201 - 232,000 Total other financing sources/(uses) 124,839 - - - - - 122,201 - 247,040 Change in Fund Balance (185,221) - 3,307 550,332 469,036 - - (924,200) (86,746) Fund Balance Beginning of year, previously stated 5,005,933 - 659,901 - - 333,865 105,265 2,975,347 9,080,311 Change within financial reporting entity (major to nonmajor) - - - - - (333,865) (105,265) 439,130 - Change within financial reporting entity (nonmajor to major) - - - (436,724) 1,884,873 - - (1,448,149) - Beginning of year, restated 5,005,933 - 659,901 (436,724) 1,884,873 - 1,966,328 - 9,080,311 End of year $ 4,820,712 $ - $ 663,208 $ 113,608 $ 2,353,909 $ - $ 1,042,128 - $ $ 8,993,565 Special Revenue Funds
See accompanying notes. 9

CITY OF KING CITY

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025
Net change in fund balance - total governmental funds $ (86,746) Amounts reported for governmental activities in the statement of activities are different because:

Repayment of long-term debt and lease liabilities is an expenditure in the Governmental Funds, but the repayment reduces long-term liabilities in the Statement of Net Position 149,380 Revenues in the statement of activities that do no provide current financial resources are not reported as revenues in the funds (1,321,029)
Governmental Funds report capital outlay as expenditures. However, in the Statement of Activities the cost of those assets are capitalized as an asset and depreciated over the period of service 1,930,885 Pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds (660,265)
Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as expenditures in Governmental Funds (22,893) Depreciation and amortization expense on capital assets is reported in the Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not recorded as expenditures in Governmental Funds (1,141,451)
Change in net position of governmental activities $ (1,152,119) See accompanying notes. 10

CITY OF KING CITY
STATEMENT OF NET POSITION – PROPRIETARY FUND
JUNE 30, 2025
Sewer Community Power Total
ASSETS
Current assets
Cash and investments $ 8,046,667 $ 427,164 $ 8,473,831
Restricted cash and investments 189 - 189
Accounts receivable 304,446 - 304,446
Due from other funds 1,452,089 - 1,452,089
Interest receivable 30,575 - 30,575
Total current assets 9,833,966 427,164 10,261,130
Non-current assets
Property, plant and equipment
(net of allowance for depreciation and amortization) 13,823,014 13,823,014 - Total noncurrent assets 13,823,014 13,823,014 - Total assets 23,656,980 427,164 24,084,144 DEFERRED OUTFLOW OF RESOURCES 337,385 - 337,385

LIABILITIES
Current liabilities
Accounts payable and accrued expense 794,880 - 794,880
Accrued interest 24,440 - 24,440
Current portion of long-term debt 345,586 - 345,586
Total current liabilities 1,164,906 - 1,164,906
Noncurrent Liabilities
Long-term debt 3,709,861 - 3,709,861
Lease liability 9,390 - 9,390
Net pension liability 572,080 - 572,080
Total liabilities 5,456,237 - 5,456,237
DEFERRED INFLOW OF RESOURCES 9,952 - 9,952

NET POSITION
Net investment in capital assets 9,767,567 - 9,767,567
Restricted for debt service 189 - 189
Unrestricted 8,760,420 427,164 9,187,584
Total net position $ 18,528,176 $ 427,164 $ 18,955,340
Business-Type Activities - Enterprise Fund
See accompanying notes. 11

CITY OF KING CITY
STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION –

PROPRIETARY FUND
YEAR ENDED JUNE 30, 2025
Sewer Community Power Total
Operating Revenue
Charges for services $ 4,254,784 $ 5,021,066 $ 9,275,850 Total operating revenue 4,254,784 5,021,066 9,275,850
Operating Expense
Contractual services and utilities 2,105,199 4,778,186 6,883,385 Personnel 385,587 - 385,587
Supplies and materials 1,221,089 - 1,221,089
Depreciation and amortization 379,843 - 379,843
Total operating expense 4,091,718 4,778,186 8,869,904
Operating income/(loss) 163,066 242,880 405,946
Nonoperating Revenue/(Expense)
Interest income 325,280 18,465 343,745
Development impact fees 42,552 - 42,552
Other income 2,217 - 2,217
Interest expense (114,432) (128,549) (242,981)
Total nonoperating revenue/(expense) 255,617 (110,084) 145,533 Net income/(loss) before transfers 418,683 132,796 551,479 Operating Transfers In/(Out) (232,000) - (232,000)
Change in Net Position 186,683 132,796 319,479
Net Position
Beginning of year 18,341,493 294,368 18,635,861
End of year $ 18,528,176 $ 427,164 $ 18,955,340
Business-Type Activities - Enterprise Fund
See accompanying notes. 12

CITY OF KING CITY

STATEMENT OF CASH FLOW - PROPRIETARY FUND
YEAR ENDED JUNE 30, 2025
Sewer Community Power Total
Operating Activities
Receipts from customers and users $ 4,236,792 $ 5,021,066 $ 9,257,858 Payments for contractual services and utilities (1,437,379) (4,778,186) (6,215,565) Payments to employees (476,018) (476,018) - Payments to suppliers (1,221,089) (1,221,089) - Net cash provided by (used in) operating activities 1,102,306 242,880 1,345,186
Non-capital Financial Activities
Cash received from other nonusers 2,217 - 2,217
Cash received from (paid to) other funds (1,684,089) (1,684,089) - Net cash provided by (used in) noncapital financing activities (1,681,872) (1,681,872) - Capital and Related Financing Activities Purchase of property, plant, and equipment (376,564) (376,564) - Principal paid on long-term debt and lease liabilities (337,053) (337,053) - Interest paid on long-term debt (115,903) (128,549) (244,452) Net cash provided by (used in)
capital and related financing activities (829,520) (128,549) (958,069) Investing Activities
Interest received 334,105 18,465 352,570
Net cash provided by (used in)
investing activities 334,105 18,465 352,570
Net Increase/(Decrease) in Cash (1,074,981) 132,796 (942,185) Cash
Beginning of year 9,121,837 294,368 9,416,205
End of year $ 8,046,856 $ 427,164 $ 8,474,020
Business-Type Activities - Enterprise Fund
See accompanying notes. 13

CITY OF KING CITY

STATEMENT OF CASH FLOW - PROPRIETARY FUND (CONTINUED)
YEAR ENDED JUNE 30, 2025
Sewer Community Power Total
Reconciliation of Cash to Financial Statements
Cash and investments $ 8,046,667 $ 427,164 $ 8,473,831
Restricted cash and investments 189 - 189
Total cash and investments $ 8,046,856 $ 427,164 $ 8,474,020 Cash Flows from Operating Activities
Operating income (loss) $ 163,066 $ 242,880 $ 405,946
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation and amortization 379,843 - 379,843
(Increase) Decrease in Deferred Outflow of Resources 170,662 - 170,662 (Increase) Decrease in Accounts Receivable (17,992) - (17,992) Increase (Decrease) in Deferred Inflows of Resources (24,246) - (24,246) Increase (Decrease) in Net Pension Liability (236,847) (236,847) - Increase (Decrease) in Accounts Payable and Accrued Expense 667,820 - 667,820
Net Cash Provided by/(Used in) Operating Activities $ 1,102,306 $ 242,880 $ 1,345,186 Business-Type Activities - Enterprise Fund
See accompanying notes. 14

CITY OF KING CITY

STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2025
Assets
Cash and investments
Cash and investments $ 538,904
Cash and investments with fiscal agent 341,373
Interest Receivable 981
Total assets 881,258
Liabilities
Accounts payable and accrued liabilities 9,350
Interest payable 53,771
Long-term debt
Due within one year 310,444
Due in more than one year 3,351,912
Total liabilities 3,725,477
Net Position
Held in trust for other governments $ (2,844,219)
See accompanying notes. 15

CITY OF KING CITY

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2025
Additions
Property taxes $ 463,725
Investment earnings and other 27,759
Total additions 491,484
Deductions
Administrative costs 12,112
Interest and fiscal agency expenses of former redevelopment agency 132,722 Total deductions 144,834
Change In Net Position 346,650
Net Position
Beginning of year (3,190,869)
End of year $ (2,844,219)
16 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of King City (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Reporting Entity
The City of King City, State of California (the "City"), was incorporated as a general law city in 1911. In June 2010, the voters of the City approved a Charter, which gives the City Council greater self-rule. The City is governed by a City Council of five members. The City's major operations include public safety; highways and streets; sewer services; parks and recreation; building inspection; public improvements; planning and zoning, and general administrative services.

Basis of Presentation – Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its component units. For the most part, 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 and between the City and its discretely presented component unit. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly 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 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 as general revenues.

Net position are restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements - The Governmental 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 funds are separately aggregated and reported as non-major funds. 17 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Proprietary fund operating revenues, such as charges for services, 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. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:
 General Fund – The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.  HOME Grant Fund – The fund is used to account for receipts and expenditures for the Home Investment Partnerships Program for the City to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people.
 Measure X Fund – The fund is used to account for the City’s Transportation Safety and Investment Plan activities, which include transportation safety and mobility projects such as the Bishop Street project and the slurry application project.
 State Grants Fund – The fund is used to account for receipts and expenditures of various state grants.  Development Impact Fees Fund – The fund is used to account for mitigation fees received from new construction which are to be used according to the City’s approved Master Facilities Plan.

The City reports the following major proprietary fund:
 Sewer Fund – The fund accounts for the maintenance, operation and capital improvements of the municipal sewage system. Financing is provided by user fees from residences, businesses, and industries.
 Community Power Fund – The fund provides electricity and special programs with the common goal of utilizing cleaner energy and lower rates to the City.

The City reports the following additional fund types:
 Private-Purpose Trust Fund – The Private-Purpose Trust Fund accounts for assets held by the City as trustee for the Successor Agency.
18 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements 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 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 an 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 measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Investments – Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows.

The City maintains a cash and investment pool that is available for use by all funds, except for assets held by fiscal agents. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund and certificates of deposit. Investments are recorded at amortized cost or fair value. Fair value is based upon quoted market prices.

Accounts Receivable – Billed but unpaid services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year end accrual for services through June 30, 2025, which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectibles.
19 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Monterey County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is March 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the March 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.

Interfund Receivables/Payables – Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds – This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.

Restricted Assets – Certain proceeds of the King City Public Financing Authority’s Certificates of Participation, as well as certain resources set aside for their repayment, are classified as restricted assets on the Statement of Net Position because they are maintained in separate bank accounts and their use is limited by debt covenants.

Capital Assets – Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold are met.

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
20 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Years
Infrastructure 20 - 50
Structures and Improvements 10 - 50
Equipment 5 - 30
Compensated Absences – It is the City's policy to permit all employees to accumulate earned but unused vacation, sick pay and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits.

Vested or accumulated vacation, holiday and eligible sick leave along with any compensation time that is expected to be paid with expendable available financial resources is reported as an expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements.

Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accrue.

Leases – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide and enterprise fund financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
21 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) 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 Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other 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.

Pension – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employee Retirement System (CalPERS) plan and additions to/deduction from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS.

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

Non-Current Governmental Assets/Liabilities – GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.

Net Position – The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position are 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 on net position 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.
22 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Fund Balance – In the fund financial statements, governmental fund balance is made up of the following components:
 Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments.  Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
 Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment.  Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed.  Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 23 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 2 – Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit of time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Government Code and the King City Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds.

Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council. All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

Note 3 – Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 13,340,771
Restricted Cash and Investments 189
Fiduciary Funds:

Cash and Investments 538,904
Cash and Investments with fiscal agent 341,373
Total Cash and Investments $ 14,221,237
Cash and investments as of June 30, 2025 consist of the following:

Cash on hand $ 905
Deposits with Financial Institutions 1,825,147
Local Agency Investment Fund 2,684,518
Money Market Mutual Funds 9,369,105
Held by Fiscal Agent:

Money Market Mutual Funds 341,179
US Government Issues 383
Total Cash and Investments $ 14,221,237
24 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 25 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).

The City had the following recurring fair value measurements as of June 30, 2025:

Level 1 Level 2 Level 3
June 30, 2025
Balance
Investments by fair value level:

Debt Securities:

U.S. Treasury Obligations $ - $ 383 $ - $ 383
Total Debt Securities - 383 - 383
Equity Securities:

LAIF - 2,684,518 - 2,684,518
Total Equity Securities - 2,684,518 - 2,684,518
Cash and cash equivalents carried at amortized cost:

Deposits 11,195,157
Total Investments amortized at cost 11,536,336
Total Cash and Investments $ 14,221,237
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 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.
26 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
Minimum Maximum
Maximum Credit Percentage
Maturity Quality Allowed
U.S. Treasury Obligations None None None
U.S. Agency Securities None AAA None
Banker's Acceptances 1 year None None
Commercial Paper None A-1 None
Money Market Mutual Funds None A None
Investment Contracts None None None
Certificates of Deposits 1 year A-1 None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee 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 the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Minimum Maximum
Maximum Percentage Percentage
Maturity of Portfolio of Portfolio
Local Agency Bonds 1 year None None
U.S. Treasury Obligations 1 year A None
U.S. Agency Securities 1 year None None
Banker's Acceptances 180 days None 40%
Commercial Paper 270 days None 25%
Negotiable Certificates of Deposit 1 year None 30%
Repurchase Agreements 90 days None None
Reverse Repurchase Agreements 92 days None 20% of base value Medium-Term Notes 5 years A 30%
Mutual Funds N/A A 20%
Money Market Mutual Funds N/A A 20%
Mortgage Pass-Through Securities 5 years AA 20%
Authorized Investment Type
27 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
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. As of June 30, 2025 the City had the following investments:
12 Months 13 to 24 25 to 84
or less Months Months Total
LAIF $ 2,684,518 $ - $ - $ 2,684,518
US Government Issues 383 - - 383
Total Investments $ 2,684,901 $ - $ - 2,684,901
Cash in bank and on hand 11,536,336
Total Cash and Investments $ 14,221,237
Investment Type
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 year-end for each investment type.

Not rated:

LAIF $ 2,684,518
US Government Issues 383
Cash in bank and on hand 11,536,336
Total Cash and Investments $ 14,221,237
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.
28 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (Continued)
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 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, 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 market 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.

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

GASB Statement No. 40 requires that the following disclosures be made with respect to custodial credit risks relating to deposits and investments: The City did not have any deposits with financial institutions in excess of federal depository insurance limits and held in uncollateralized accounts. As of June 30, 2025, the City investments in the following investment types were held by the broker-dealer that was used by the City to buy the securities:

Reported Amount
US Government Issues $ 383
Investment Type
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. 29 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 4 – Interfund Receivables and Payables, and Transfers Interfund Receivables and Payables
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash, and carry an interest rate equal to the rate earned on pooled cash.

Individual fund interfund receivables and payables balances as of June 30, 2025 are as follows:

Due From Due To
Major Funds
General Fund $ 4,853,033 $ - Sewer Fund 1,452,089
State Grants 4,598,212 - Nonmajor Funds
Traffic Safety - 23,127
Gas Tax - 451,798
SB 1 Multimodal Grant - 119,054
Prop 68 Grant - 440,430
Emergency Food and Shelter National Board Program - 85,595 FEMA Storm Event Grant - 425,885
Riverbed Wildfire Prevention Grant - 161,021
$ 6,305,122 $ 6,305,122
The interfund payable balance due to the General Fund and Sewer Fund from the State Grants, Traffic Safety, Gas Tax, SB 1 Multimodal Grant, State Grants, Prop 68 Grant, Emergency Food and Shelter National Board Program, FEMA Storm Event Grant, and the Riverbed Wildfire Prevention Grant is a result of deficits in certain funds and temporary cash flow assistance in others. The balances due will be repaid as funds are available.

Transfers
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds’ that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the government-wide financial statements.
30 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 4 – Interfund Receivables and Payables, and Transfers (continued) Transfers (continued)
Transfers In Transfers Out
Major Governmental Funds:

General Fund $ 109,799 $ - Enterprise Funds:

Sewer Fund - (232,000)
Nonmajor Governmental Funds:

SB 2 Planning Land Use Element Grant 46,055 - Traffic Safety - (41,144) CDBG Youth 197,397 - American Rescue Plan Act 405,307 - Police Grants 41,144 - UUT-Public Safety Fund - (526,558) $ 799,702 $ (799,702)
 Transfers of $405,307 from the American Rescue Plan Act Fund to the General Fund was to close out the fund for excess expenditures not covered by the American Rescue Plan Act Fund.  Transfer from the UTT-Public safety fund of $526,558 to the General Fund was to cover public safety costs.
 Transfer of $232,000 from the Sewer Fund to the Genral Fund was to cover related overhead costs.  Transfer of $197,397 from the CDBG Youth to the Genral Fund was to cover related overhead costs.
31 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Capital Assets
Capital asset activities for the year ended June 30, 2025 were as follows:

Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Governmental Activities
Capital assets, not being depreciated
Land $ 653,060 $ - $ 653,060 - $
Construction in progress 1,099,033 - 1,099,033 - Total capital assets, not being depreciated 653,060 1,099,033 1,752,093 - Capital assets, being depreciated + Buildings and improvements 10,498,303 674,929 11,173,232 - Infrastructure 23,306,493 156,923 23,463,416 - Machinery and equipment 4,453,120 - 4,453,120 - Total capital assets, being depreciated 38,257,916 831,852 39,089,768 - Less accumulated depreciation for:

Buildings and improvements (7,972,289) (236,789) (8,209,078) - Infrastructure (9,629,373) (600,634) (10,230,007) - Machinery and equipment (3,749,812) (275,994) (4,025,806) - Total accumulated depreciation (21,351,474) (1,113,417) (22,464,891) - Total capital assets, being depreciated, net 16,906,442 (281,565) 16,624,877 - Right of use assets, being amortized Vehicles 296,910 - 296,910 - Less: accumulated amortization (256,305) (28,034) (284,339) - Total right of use assets, net of amortization 40,605 (28,034) 12,571 - Governmental activities capital assets, net $ 17,600,107 $ 789,434 $ 18,389,541 - $ Business-Type Activities
Capital assets, not being depreciated
Land $ 764,093 $ - $ 764,093 - $
Construction in progress 419,116 - 419,116 - Total capital assets, not being depreciated 764,093 419,116 1,183,209 - Capital assets, being depreciated Building and improvements 19,444,364 - 19,444,364 - Plant and equipment 1,574,179 - 1,574,179 - Total capital assets, being depreciated 21,018,543 - 21,018,543 - Less: accumulated depreciation (8,021,981) (364,453) (8,386,434) - Total capital assets, being depreciated, net 12,996,562 (364,453) 12,632,109 - Right of use assets, being amortized Vehicles 76,951 - 76,951 - Accumulated amortization (53,865) (15,390) (69,255) - Total right of use assets, net of amortization 23,086 (15,390) 7,696 - Business-type activities capital assets, net $ 13,783,741 $ 39,273 $ 13,823,014 - $ 32 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Capital Assets (Continued)
Depreciation and amortization expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

General Government $ 75,349
Public Safety 356,922
Public Works 605,188
Culture and Recreation 103,992
$ 1,141,451
Business-Type Functions:

Sewer $ 379,843
Note 6 – Notes Receivables
Notes receivable and deferred loans consisted of the following at June 30, 2025:

King City Pacific Associates, L.P. - The HOME Investment Partnership Grant program approved $3,000,000 of grant funds to be made available for local development of an affordable housing project.

The City entered into an agreement with King City Pacific Associates, L.P. to loan such funds for the construction of the San Antonio Apartments. Funds were provided in the form of a deferred payment loan.

If not paid sooner, the unpaid principal balance of this note, plus any unpaid interest thereon shall be due and payable in full fifty-five years from the date of the note. The note bears 3% interest and the face amount of the note at June 30, 2025 was $3,000,000. Accrued interest receivable at June 30, 2025 was $1,110,000.

Note 7 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City’s debt transactions are summarized below and discussed in detail thereafter:

Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Governmental Activities Long Term Debt
Direct Borrowings:
2019 Street Sweeper Financed Purchase $ 55,526 $ (36,571) - $ $ 18,955 $ 18,955 Solar Energy Financed Purchase 615,676 (83,383) - 532,293 90,574 Total Governmental Activities Long-term Debt $ 671,202 $ (119,954) - $ $ 551,248 $ 109,529 33 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Long-Term Debt (Continued)
Long-term debt payable at June 30, 2025 was comprised of the following individual issues:

Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Business-Type Activities Long Term Debt
Direct Borrowings:

Solar Energy Financed Purchase $ 921,646 $ (124,821) - $ $ 796,825 $ 135,586 Direct Placements:
2021 Wastewater Revenue Refunding Bonds 3,454,811 (196,189) - 3,258,622 200,610 Total Business-Type Activities Debt $ 4,376,457 $ (321,010) - $ $ 4,055,447 $ 336,196 Compensated Absences
Governmental Activities $ 720,989 $ 22,893 $ 743,882 - $ Net Pension Liability
Governmental Activities $ 7,496,249 $ 163,033 $ 7,659,282 - $ Business-Type Activities $ 808,927 $ (236,847) - $ $ 572,080 2019 Street Sweeper Financed Purchase – On March 15, 2019, the City entered into a purchase agreement for a street sweeper. The lease bears an interest rate of 4.829% and terminates on December 1, 2025.

Solar Energy Financed Purchase – On July 10, 2016, the City started making payments on a solar lease arrangement. The amount financed was $2,644,187. Annual payments are from $94,649 to $156,907 and terminates on January 10, 2030. Interest rate is 3.231%. 2021 WasteWater Revenue Refunding Bonds - In May 2021, the City issued the 2021 WasteWater Revenue Refunding Bonds for the principal amount of $4,012,670. The issuance was to refund the outstanding principal balance of the 2018 Enterprise Revenue Bonds described above. The reacquistion price exceeded the net carrying amount of the old debt by $77,193. The City refunded the above debts to reduce its total debt service over 17 years by $99,551 and to obtain an economic gain (difference between the present values of debt service payments on the old and new debt) of $310,178. The bonds bear interest

2.250% and are payable semi-annually commencing September 2022 through March 2038.

Debt service is secured by a pledge of net revenues of the City’s WasteWater Systems. The City covenants that it shall prescribe, revise and collect such charges for the services and facilities of the wastewater systems which shall produce revenues sufficient in each fiscal year to provide gross revenues which are sufficient to pay all wastewater operation and maintenance costs and all bond installment payments and produce net wastewater revenues equal to at least 1.15 times debt service coming due and payable during such fiscal year. The City is in compliance with those covenants as of June 30, 2025.

Cash basis debt service paid during the fiscal year ended June 30, 2025 totaled $271,672. Total wastewater system net revenues and net revenue available for debt was 3.36 at June 30, 2025. 34 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Long-Term Debt (Continued)
2022 WasteWater Revenue Refunding Bonds (continued)
The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2025 was:

Years ending June 30, Principal Interest Principal Interest 2026 $ 109,529 $ 16,817 $ 336,196 $ 95,721
2027 98,171 13,485 352,078 86,685
2028 106,194 10,249 368,708 77,173
2029 114,662 6,750 386,105 67,163
2030 122,692 2,981 402,950 56,641
2031-2035 - 1,172,670 - 183,770
2036-2039 - 1,036,740 - 47,301
$ 551,248 $ 50,282 $ 4,055,447 $ 614,454
Government-Wide Activities Business-Type Activities
Note 8 – Lease Liability
Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Lease Liabilities:

Governmental Activities $ 42,574 $ (29,426) - $ $ 13,148 $ 5,480 Business-Type Activities 25,433 - (16,043) 9,390 9,390
$ 68,007 $ (45,469) - $ $ 22,538 $ 14,870
The City entered into several sixty (60) month lease agreements as lessee for the acquisition and use of vehicles. An initial lease liability was recorded in the amount of $346,911 during the year the lease was entered. As of June 30, 2025, the value of the lease liability was $22,538. The City is required to make monthly principal and interest payments of $335 to $857. The lease has an interest rate of 3%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $20,267 and had accumulated amortization of $353,594.

The future principal and interest lease payments as of June 30, 2025, were as follows:

Years ending June 30, Principal Interest Principal Interest 2026 $ 5,480 $ 316 $ 9,390 $ 94
2027 5,647 150 - - 2028 2,021 12 - - $ 13,148 $ 478 $ 9,390 $ 94 Government-Wide Activities Business-Type Activities
35 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 9 – Deficit Fund Balances
Fund Balance Deficits - The following is a summary of deficit fund balances as of June 30, 2025:

Governmental Funds
Traffic Safety $ (23,106)
FEMA Storm Event Grant $ (426,255)
Prop 68 Grant $ (518,553)
Emergency Food and Shelter National Board Program (85,595) $ Riverbed Wildfire Prevention Grant $ (161,491)
These deficits are are expected to be relieved from future revenues or transfers from other funds.

Note 10 – Deferred Outflows and Deferred 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 element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items to report in this category:
 The City has $2,786,385 in pension related items that qualify to be reported in deferred outflows of resources. The pension related deferred outflows of resources are described in Note

10.  The City has $143,732 in unamortized deferred amount of refunding related to the 2025 Wastewater Revenue Refunding Bonds.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item to report in this category:
 The City has $143,207 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 10.

The City also has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting as deferred inflows of resources. Accordingly, that item, deferred loans, is reported only in the governmental funds balance sheet. The City reports in the HOME Grant fund, $3,000,000, deferred loans and accrued interest of $1,110,000.

Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) Plan Description - The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.
36 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Funding Policy – The City pays 7.680% - 19.950% of annual covered salary for active plan members in the City’s defined pension plan. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The contribution requirements of plan members are established by State statute and the employer contribution is established and may be amended by PERS.

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

Miscellaneous Safety
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit Formula 2.0% at 55;
maximum 2%
COLA

2.0% at 50;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 55 50
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 9.00%
Required Employer Contribution Rates 11.84% 19.95%
PEPRA
Miscellaneous PEPRA Safety
Hire Date
On or after
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 62;
maximum 2%
COLA

2.7% at 57;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 62 57
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.70% Required Employee Contribution Rates 7.75% 13.75%
Required Employer Contribution Rates 7.68% 13.54%
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 July 1 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 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. 37 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2025, $1,039,419 in contributions was recognized as part of the pension expense.

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 shares of the net pension liability of each Plan as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous $4,289,155
Safety $3,942,207
The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plan is measured as of June 30, 2023, and the total pension liability for each 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 each Plan as of June 30, 2024 and 2025 was as follows:

Miscellaneous Safety
Proportion - June 30, 2024 0.08624% 0.05342%
Proportion - June 30, 2025 0.08868% 0.05407%
Change 0.00244% 0.00065%
38 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2025, the City recognized pension expense of $1,721,459. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to $ 1,162,680 $ -
measurement date
Differences in expected and actual experience 692,556 (24,930) Change in employer's proportion 103,086 (29,933)
Changes of assumptions 207,368 - Differences between employer's contributions and proportionate share of contributions 183,226 (88,344)
Differences between projected and actual
investment earnings 437,470 - Total $ 2,786,386 $ (143,207) The $1,162,680 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2026 $ 553,410
2027 1,044,857
2028 32,045
2029 (149,813)
Total $ 1,480,499
39 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Actuarial Methods and Assumptions – The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Data for all Funds
1 Post Retirement Benefit IncreaseContract COLA up to 2.30% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2017 valuation was based on the results of an December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – None.
40 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Discount rate – The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return.

The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2024.

The table below reflects long-term expected real rates 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. The geometric rates of return are net of administrative expenses.

Asset Class
Assumed
Allocation
Real Return
Years 1-10
1,
2 Global equity - cap-weighted 30% 4.54%
Global equity non-cap-weighted 12% 3.84%
Private equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed securities 5% 0.50%
Investment grade corporates 10% 1.56%
High yield 5% 2.27%
Emerging market debt 5% 2.48%
Private debt 5% 3.57%
Real assets 15% 3.21%
Leverage -5% -0.59%
Total 100%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Management Study. 41 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1-percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous $ 6,403,980 $ 4,289,155 $ 2,548,342
Safety $ 6,038,111 $ 3,942,207 $ 2,228,053
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan – At June 30, 2025, the City has no outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

Note 12 – Risk Management
The City provides for workers' compensation and liability through a self-funded joint powers agency, Monterey Bay Area Self Insurance Authorities. Joint Powers Agreement (JPA) accounts are not separately maintained for each participant.

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the Monterey Bay Area Self Insurance Authority (MBASIA). MBASIA is composed of 10 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of MBASIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage.

General Liability: The City has a deductible of $10,000 for each liability claim. Claims above $10,000 up to $1,000,000 are paid by MBASIA. Claims above $1,000,000 up to $29,000,000 are covered by insurance purchased by MBASIA.

Workers’ Compensation: The City does not retain deductible for workers’ compensation claims. Annual premiums for coverage up to statutory levels are paid to MBASIA based on a Board approved Budget methodology. A third party claims administrator is contracted by MBASIA to manage claims activity. 42 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 12 – Risk Management (Continued)
Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded insured coverage. There have been no significant reductions in insured liability coverage from coverage in the prior year. Audited financial statements for MBASIA can be obtained from their management at 100 Pine Street, 11th Floor, San Francisco, CA 94111.

Note 13 – Excess of Expenditures over Appropriations
The excess of expenditures over appropriations are as follows:

General Fund:

Current:

General government $ 252,056
Public safety $ 135,194
Public works $ 375,593
Culture and recreation $ 324,916
Community development $ 210,529
Debt service:

Principal $ 3,950
Measure X:

Current:

Public works $ 58,167
Development Impact Fees Fund:

Current:

Public works $ 12,568
Capital outlay $ 1,259
The excess of expenditures over appropriations are covered by the available fund balance in the corresponding funds.
43 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 14 – Contingencies
Federal and State Government Programs - The City participates in several federal and state grant programs. These programs have been audited, as needed, in accordance with the provisions of the federal Single Audit Act of 1984 and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Landfill Postclosure Costs – Since the closure of the City’s landfill in 1976, the City has been incurring postclosure care costs, and annual monitoring tests since 1996. The City is planning to initiate the process with regulators to stop the semi-annual testing and have the former landfill officially declared as closed. The City expects the process to be completed within the next few years.

Note 15 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through March 12, 2026, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025 that required recognition or disclosure in such financial statements.

Note 16 – Restatement of Net Position/Fund Balance
Fund Reclassifications – Major and Nonmajor Funds
During the fiscal year ended 2025, the City conducted an annual review of its fund structure. As part of this review and in compliance with GASB Statement No. 100, Accounting Changes and Error Corrections, the City identified necessary reclassifications to enhance transparency, improve financial reporting accuracy, and ensure consistency with updated accounting standards. As a result, the following funds were reclassified:

Fund Name
Previous
Classification New Classification Reason for Classification Gas Tax Fund Major Nonmajor The decrease in overall activity caused the fund to no longer meet the criteria for a major
fund, resulting in its reclassification as
nonmajor
American Rescue
Plan Act
Major Nonmajor The decrease in overall activity caused the fund to no longer meet the criteria for a major
fund, resulting in its reclassification as
nonmajor
Development
Impact Fees Fund
Nonmajor Major The increase in activity in the current year met the criteria for major fund designation
State Grants Nonmajor Major The increase in activity in the current year met the criteria for major fund designation
44 CITY OF KING CITY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 16 – Restatement of Net Position/Fund Balance (continued) Fund Reclassifications – Major and Nonmajor Funds (continued) These reclassifications have been applied retrospectively to prior-period financial statements for comparability. The following table summarizes the impact of these reclassifications on beginning fund balances and net position:

State Grants
Development Impact
Fees Fund Gas Tax Fund
American Rescue Plan
Act
Beginning of year, previously stated $ - $ - $ 105,265 $ 333,865 Change within financial reporting entity (major to nonmajor) - - (105,265) (333,865) Change within financial reporting entity (nonmajor to major) (436,724) 1,884,873 - - Beginning of year, restated $ (436,724) $ 1,884,873 $ - $ - Fund Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION
45 CITY OF KING CITY

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes $ 8,511,565 $ 8,511,565 $ 8,694,594 $ 183,029
Intergovernmental 107,000 107,000 119,134 12,134
Charges for services 23,500 23,500 38,396 14,896
Licenses and permits 1,170,400 1,170,400 937,886 (232,514) Fines and forfeitures 31,500 31,500 54,918 23,418
Interest and rents 43,100 43,100 155,084 111,984
Other 300,000 300,000 1,675,388 1,375,388
Total revenue 10,187,065 10,187,065 11,675,400 1,488,335 Expenditures
Current
General government 1,274,236 1,274,236 1,526,292 (252,056) Public safety 5,477,370 5,477,370 5,612,564 (135,194)
Public works 1,295,511 1,295,511 1,671,104 (375,593)
Culture and recreation 608,445 608,445 933,361 (324,916) Community development 1,807,679 1,807,679 2,018,208 (210,529) Debt service
Principal 88,831 88,831 92,781 (3,950)
Interest and fiscal charges 14,075 14,075 14,073 2
Total expenditures 11,266,147 11,266,147 11,985,461 (719,314) Revenue over (under) expenditures (1,079,082) (1,079,082) (310,061) 769,021 Other Financing Sources
Sale of property 10,000 10,000 15,040 5,040
Transfers in (out), net 260,000 260,000 109,799 (150,201) Total other financing sources/(uses) 270,000 270,000 124,839 (145,161) Net Change in Fund Balance $ (809,082) $ (809,082) (185,222) $ 618,820 Fund Balance
Beginning of year 5,005,933
End of year $ 4,820,711
46 CITY OF KING CITY

BUDGETARY COMPARISON SCHEDULE

MEASURE X
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes $ 531,645 $ 531,645 $ 574,987 $ 43,342
Interest and rent - 18,132 - 18,132
Total revenue 531,645 531,645 593,119 61,474
Expenditures
Current
Public works 531,645 531,645 589,812 (58,167)
Total expenditures 531,645 531,645 589,812 (58,167)
Net Change in Fund Balance $ - $ - 3,307 $ 3,307
Fund Balance
Beginning of year 659,901
End of year $ 663,208
47 CITY OF KING CITY

BUDGETARY COMPARISON SCHEDULE

DEVELOPMENT IMPACT FEES FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Licenses, permits and impact fees $ 340,000 $ 340,000 $ 541,559 $ 201,559 Interest and rent - 73,504 - 73,504
Total revenue 340,000 340,000 615,063 275,063
Expenditures
Current
Public works 15,000 15,000 27,568 (12,568)
Culture and recreation 100,000 100,000 - 100,000
Community development 25,000 25,000 17,200 7,800
Capital outlay 100,000 100,000 101,259 (1,259)
Total expenditures 240,000 240,000 146,027 93,973
Net Change in Fund Balance $ 100,000 $ 100,000 469,036 $ 369,036 Fund Balance
Beginning of year, restated 1,884,873
End of year $ 2,353,909
48 CITY OF KING CITY
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS*
YEAR ENDED JUNE 30, 2025
Proportion of the net
pension liability
Proportionate share
of the net pension
liability
Covered - employee
payroll
Proportionate share of the net
pension liability as a
percentage of coveredemployee payroll
Plan's fiduciary net
position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2016 0.08862% $ 2,431,259 $ 936,886 259.50% $ 8,223,238 77.18% 2017 0.08541% $ 2,967,126 $ 978,018 303.38% $ 7,817,932 72.49% 2018 0.08489% $ 3,346,536 $ 1,019,404 328.28% $ 8,822,837 72.50% 2019 0.08484% $ 3,197,346 $ 763,963 418.52% $ 9,315,620 74.45% 2020 0.08418% $ 3,371,043 $ 845,215 398.84% $ 9,771,801 74.35% 2021 0.08366% $ 3,528,942 $ 1,077,863 327.40% $ 10,124,046 74.15% 2022 0.10242% $ 1,944,690 $ 1,058,867 183.66% $ 12,310,030 86.36% 2023 0.08648% $ 4,046,815 $ 1,167,034 346.76% $ 10,483,347 72.15% 2024 0.08624% $ 4,312,117 $ 2,056,347 209.70% $ 10,744,895 71.36% 2025 0.08868% $ 4,289,155 $ 2,183,402 196.44% $ 11,383,140 72.63% Proportion of the net
pension liability
Proportionate share
of the net pension
liability
Covered - employee
payroll
Proportionate share of the net
pension liability as a
percentage of coveredemployee payroll
Plan's fiduciary net
position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2016 0.04014% $ 1,653,870 $ 939,684 176.00% $ 6,832,315 80.51% 2017 0.04024% $ 2,084,204 $ 829,185 251.36% $ 6,292,887 75.12% 2018 0.04119% $ 2,461,421 $ 1,262,109 195.02% $ 7,510,467 75.32% 2019 0.04242% $ 2,488,981 $ 1,298,268 191.72% $ 8,149,726 76.60% 2020 0.04381% $ 2,860,960 $ 1,359,578 210.43% $ 8,489,785 74.79% 2021 0.04586% $ 3,055,582 $ 1,346,512 226.93% $ 8,944,101 74.54% 2022 0.04880% $ 1,712,772 $ 1,270,072 134.86% $ 11,028,079 86.56% 2023 0.05282% $ 3,629,871 $ 1,709,047 212.39% $ 9,944,910 73.26% 2024 0.05342% $ 3,993,056 $ 1,907,011 209.39% $ 10,551,070 72.55% 2025 0.05407% $ 3,942,207 $ 2,103,245 187.43% $ 11,401,265 74.31% Miscellaneous
Safety
49 CITY OF KING CITY

SCHEDULE OF CONTRIBUTIONS
LAST 10 YEARS*
YEAR ENDED JUNE 30, 2025
Contractually required
contribution
(actuarially
determined)
Contributions in
relation to the
actuarially determined
contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a
percentage of coveredemployee payroll
2016 $ 187,302 $ (187,302) $ - $ 936,886 19.99%
2017 $ 257,596 $ (257,596) $ - $ 978,018 26.34%
2018 $ 257,638 $ (257,638) $ - $ 1,019,404 25.27%
2019 $ 306,385 $ (306,385) $ - $ 763,963 40.10%
2020 $ 345,470 $ (345,470) $ - $ 845,215 40.87%
2021 $ 402,008 $ (402,008) $ - $ 1,077,863 37.30%
2022 $ 309,017 $ (309,017) $ - $ 1,058,867 29.18%
2023 $ 353,638 $ (353,638) $ - $ 1,167,034 30.30%
2024 $ 421,628 $ (421,628) $ - $ 2,056,347 20.50%
2025 $ 514,543 $ (514,543) $ - $ 2,183,402 23.57%
Contractually required
contribution
(actuarially
determined)
Contributions in
relation to the
actuarially determined
contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a
percentage of coveredemployee payroll
2016 $ 213,094 $ (213,094) $ - $ 939,684 22.68%
2017 $ 182,185 $ (182,185) $ - $ 829,185 21.97%
2018 $ 219,036 $ (219,036) $ - $ 1,262,109 17.35%
2019 $ 285,131 $ (285,131) $ - $ 1,298,268 21.96%
2020 $ 306,024 $ (306,024) $ - $ 1,359,578 22.51%
2021 $ 384,434 $ (384,434) $ - $ 1,346,512 28.55%
2022 $ 397,596 $ (397,596) $ - $ 1,270,072 31.30%
2023 $ 449,391 $ (449,391) $ - $ 1,709,047 26.29%
2024 $ 521,299 $ (521,299) $ - $ 1,907,011 27.34%
2025 $ 648,137 $ (648,137) $ - $ 2,103,245 30.82%
Safety
Miscellaneous

SUPPLEMENTAL ONLY INFORMATION
50 CITY OF KING CITY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Formerly Nonmajor Formerly Major
Riverview
SLESF/COPS Asset Gardens State SB1 Road Gas Tax
Grant Seizure Landscape Grants Maintenance Fund
ASSETS
Cash and investments $ 169,437 $ 12,405 $ 46,410 $ - $ 358,054 $ - Accounts receivable - - - - - - Due from other governments 16,667 - - - 68,363 490,156 Interest receivable 525 38 143 - 1,053 - Total assets $ 186,629 $ 12,443 $ 46,553 $ - $ 427,470 $ 490,156

LIABILITIES
Accounts payable and accrued expense $ - $ - $ 1,575 $ - $ - $ 38,358 Due to other funds - - - - - 451,798
Total liabilities - - 1,575 - - 490,156

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCE Restricted
Circulation improvements - - - - 427,470 - Community services - - - - - - Capital improvement projects - - - - - - Public safety 186,629 12,443 - - - - Landscape maintenance - - 44,978 - - - Unassigned - - - - - - Total fund balance 186,629 12,443 44,978 - 427,470 - Total liabilities, deferred inflows of resources, and fund balance $ 186,629 $ 12,443 $ 46,553 $ - $ 427,470 $ 490,156 Special Revenue Funds
51 CITY OF KING CITY

COMBINING BALANCE SHEET (CONTINUED)

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
SB2 Riverbed
Planning Wildfire
LEAP Federal King City SB1 Land Use Prevention Plan
Grant Grants Low Income Housing Multimodal Grant Element Grant Grant ASSETS
Cash and investments $ 32,400 $ 23,750 $ 114,629 $ - $ - $ - Accounts receivable - - - - - - Due from other governments - 23,750 - 119,054 - - Interest receivable 2,807 - 353 - - - Total assets $ 35,207 $ 47,500 $ 114,982 $ 119,054 $ - $ - LIABILITIES Accounts payable and accrued expense $ - $ - $ - $ - $ - $ 470 Due to other funds - - - 119,054 - 161,021
Total liabilities - - - 119,054 - 161,491

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCE Restricted
Circulation improvements - - - - - - Community services - - 114,982 - - - Capital improvement projects 35,207 47,500 - - - - Public safety - - - - - - Landscape maintenance - - - - - - Unassigned - - - - - (161,491) Total fund balance 35,207 47,500 114,982 - - (161,491)
Total liabilities, deferred inflows of
resources, and fund balance $ 35,207 $ 47,500 $ 114,982 $ 119,054 $ - $ - Special Revenue Funds
52 CITY OF KING CITY

COMBINING BALANCE SHEET (CONTINUED)

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Emergency Food Formerly Major Formerly Nonmajor
and American
Traffic FEMA Shelter National Gas CDBG Rescue Plan Development Safety Storm Event Board Program Tax Grant Act Impact Fees ASSETS
Cash and investments $ - $ - $ - $ - 855,503 $ 58,962 $ - Accounts receivable - - - - - - - Due from other governments - - - - - - - Interest receivable 55 - - - 2,741 - - Total assets $ 55 $ - $ - $ - $ 858,244 $ 58,962 $ - LIABILITIES Accounts payable and accrued expense $ 34 $ 370 $ - $ - $ - $ 58,962 $ - Due to other funds 23,127 425,885 85,595 - - - - Total liabilities 23,161 426,255 85,595 - - 58,962 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - - - - Total deferred inflows of resources - - - - - - - FUND BALANCE Restricted
Circulation improvements - - - - - - - Community services - - - - - - - Capital improvement projects - - - - 858,244 - - Public safety - - - - - - - Landscape maintenance - - - - - - - Unassigned (23,106) (426,255) (85,595) - - - - Total fund balance (23,106) (426,255) (85,595) - 858,244 - - Total liabilities, deferred inflows of resources, and fund balance $ 55 $ - $ - $ - $ 858,244 $ 58,962 $ - Special Revenue Funds
53 CITY OF KING CITY

COMBINING BALANCE SHEET (CONTINUED)

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Total
Non-major
CDBG Airport Prop 68 UUT-Public Police Governmental
Pro Youth Operations Grant Safety Grants Funds
ASSETS
Cash and investments $ 438,348 - $ $ - $ 15,983 $ 2,125,881 - $ Accounts receivable - 11,208 - - - 11,208
Due from other governments - 27,492 - 39,750 785,232 - Interest receivable - 1,836 - 1,666 - 11,217 Total assets $ 478,884 - $ $ - $ 57,399 $ 2,933,538 - $

LIABILITIES
Accounts payable and accrued expense $ - $ 6,608 $ 78,123 $ - $ 184,500 - $ Due to other funds - 440,430 - - 1,706,910 - Total liabilities - 6,608 518,553 - 1,891,410 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCE Restricted
Circulation improvements - - - - 427,470 - Community services - - - - 114,982 - Capital improvement projects - - - - 940,951 - Public safety 472,276 - - 57,399 728,747 - Landscape maintenance - - - - - 44,978 Unassigned - (518,553) - - (1,215,000) - Total fund balance - 472,276 (518,553) 57,399 - 1,042,128 Total liabilities, deferred inflows of
resources, and fund balance $ 478,884 - $ $ - $ 57,399 $ 2,933,538 - $ Special Revenue Funds
54 CITY OF KING CITY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Formerly Nonmajor Formerly Major
Riverview
SLESF/COPS Asset Gardens State SB1 Gas Tax
Grant Seizure Landscape Grants Road Maintenance Fund
Re R venue Taxes $ - $ - $ 21,221 $ - $ - $ 387,736
Intergovernmental 194,663 - - - 387,942 457,241
Charges for services - - - - - - Other revenue - - - - - - Interest and rent 4,150 418 1,165 - 23,546 - Total revenue 198,813 418 22,386 - 411,488 844,977 ExE penditures
General government - - - - - - Public safety 86,442 - - - - - Public works - - 7,514 - 1,006,727 911,945 Culture and recreation - - - - - - Community development - - - - - - Capital outlay - - - - - - Debt service Principal 25,477 - - - - 31,122
Interest - - - - - 7,175
Total expenditures 111,919 - 7,514 - 1,006,727 950,242
Revenue over (under) expenditures 86,894 418 14,872 - (595,239) (105,265) Ot O her financing sources/(uses)
Transfers in/(out), net - - - - - - Total other financing sources (uses) - - - - - - ChC ange in Fund Balance 86,894 418 14,872 - (595,239) (105,265) FuF nd Balance
Beginning of year, previously stated 99,735 12,025 30,106 (436,724) 1,022,709 - Change within financial reporting entity (major to nonmajor) - - - - - 105,265 Change within financial reporting entity (nonmajor to major) - - - 436,724 - - Beginning of year, restated 99,735 12,025 30,106 - 1,022,709 105,265 End of year $ 186,629 $ 12,443 $ 44,978 $ - $ 427,470 $ - Special Revenue Funds
55 CITY OF KING CITY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
SB2 Riverbed
Planning Wildfire
LEAP Federal King City SB1 Land Use Prevention Plan
Grants Grants Low Income Housing Multimodal Grant Element Grant Grant Revenue
Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental 57,526 47,500 - 35,716 - 70,281
Charges for services - - - - - - Other revenues - - - - - - Interest and rent 13,052 - 4,710 - 6,596 - Total revenue 70,578 47,500 4,710 35,716 6,596 70,281 Expenditures
General government
Public safety - - - - - - Public works - - - 96,923 62,343 98,124 Community development 20,059 - 49,345 - - - Capital outlay - - - - - - Debt service Principal - - - - - -
Interest - - - - - - Total expenditures 20,059 - 49,345 96,923 62,343 98,124 Revenue over (under) expenditures 50,519 47,500 (44,635) (61,207) (55,747) (27,843) Other financing sources/(uses)
Transfers in/(out), net - - - - 46,055 - Total other financing sources (uses) - - - - 46,055 - Change in Fund Balance 50,519 47,500 (44,635) (61,207) (9,692) (27,843) Fund Balance
Beginning of year, previously stated (15,312) - 159,617 61,207 9,692 (133,648) Change within financial reporting entity (major to nonmajor) - - - - - - Change within financial reporting entity (nonmajor to major) - - - - - - Beginning of year, restated (15,312) - 159,617 61,207 9,692 (133,648) End of year $ 35,207 $ 47,500 $ 114,982 $ - $ - $ (161,491) Special Revenue Funds
56 CITY OF KING CITY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Formerly Major Formerly Nonmajor
Emergency Food and American
Traffic FEMA Shelter National CDBG Rescue Plan Development Safety Storm Event Board Program Grant Act Impact Fees
Revenue
Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental 30,352 - - 51,540 - - Charges for services - - - - - - Other revenues - - - - - - Interest and rent 582 - - 29,798 9,246 - Total revenue 30,934 - - 81,338 9,246 - Expenditures General government - - - - 154,903 - Public safety - - - - - - Public works - 66,752 - - - - Community development 16,961 - - 13,039 - - Capital outlay - - - - 593,515 - Debt service Principal - - - - - -
Interest - - - - - - Total expenditures 16,961 66,752 - 13,039 748,418 - Revenue over (under) expenditures 13,973 (66,752) - 68,299 (739,172) - Other financing sources/(uses) Transfers in/(out), net (41,144) - - - 405,307 - Total other financing sources (uses) (41,144) - - - 405,307 - Change in Fund Balance (27,171) (66,752) - 68,299 (333,865) - Fund Balance Beginning of year, previously stated 4,065 (359,503) (85,595) 789,945 - 1,884,873 Change within financial reporting entity (major to nonmajor) - - - - 333,865 - Change within financial reporting entity (nonmajor to major) - - - - - (1,884,873) Beginning of year, restated 4,065 (359,503) (85,595) 789,945 333,865 - End of year $ (23,106) $ (426,255) $ (85,595) $ 858,244 $ - $ - Special Revenue Funds
57 CITY OF KING CITY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Total
Non-major
CDBG Airport Prop 68 UUT-Public Police Governmental
Youth Operations Grant Safety Grants Funds
Revenue
Taxes $ - $ - $ - $ 513,432 $ - $ 922,389
Intergovernmental - 49,702 1,182,337 - - 2,564,800
Charges for services - 81,938 - - - 81,938
Other revenue - 604 - - - 604
Interest and rent - 15,264 - 13,126 - 121,653
Total revenue - 147,508 1,182,337 526,558 - 3,691,384
Expenditures
General government - - - - - 154,903
Public safety - - - - - 86,442
Public works - 106,056 1,099,033 - - 3,455,417
Community development 264,329 - - - - 363,733
Capital outlay - - 20,001 - - 613,516
Debt service
Principal - - - - - 56,599
Interest - - - - - 7,175
Total expenditures 264,329 106,056 1,119,034 - - 4,737,785 Revenue over (under) expenditures (264,329) 41,452 63,303 526,558 (1,046,401) - Other financing sources/(uses) Transfers in/(out), net 197,397 - - (526,558) 41,144 122,201 Total other financing sources (uses) 197,397 - - (526,558) 41,144 122,201 Change in Fund Balance (66,932) 41,452 63,303 - 41,144 (924,200) Fund Balance
Beginning of year, previously stated 66,932 430,824 (581,856) 57,399 (41,144) 2,975,347 Change within financial reporting entity (major to nonmajor) - - - - - 439,130 Change within financial reporting entity (nonmajor to major) - - - - (1,448,149) - Beginning of year, restated 66,932 430,824 (581,856) 57,399 (41,144) 1,966,328 End of year $ - $ 472,276 $ (518,553) $ 57,399 $ - $ 1,042,128 Special Revenue Funds
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council
City of King City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of King City (the “City”), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated March 12, 2026.

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

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

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

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

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 59 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 12, 2026

CITY OF KING CITY

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2025
Exhibit 2

TABLE OF

CONTENTS
Page
Required Communications 1 – 3
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of King City, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of King City (the “City”) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 1, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance and consensus.

All significant transactions have been recognized in the financial statements in the proper period.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

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

Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
2 Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

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

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

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

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

Management Representations
We have requested certain representations from management that are included in the management representation letter dated March 12, 2026.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 3 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of King City’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

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

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

Very truly yours,
March 12, 2026
Item No. 11(B)

REPORT TO THE CITY COUNCIL
DATE: MARCH 24, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, MDR, COMMUNITY DEVELOPMENT

DIRECTOR
THROUGH: JOSE ARREOLA, CITY MANAGER
RE: CONSIDERATION OF ANNUAL GENERAL PLAN AND HOUSING
ELEMENT PROGRESS REPORT FOR 2025
RECOMMENDATION:

It is recommended City Council review and accept the 2025 Annual General Plan and Housing Element Progress Report.

BACKGROUND:

California Government Code Section 65400(a) (2) requires an annual report on the status of the General Plan and the City's progress in its implementation, including progress in meeting its share of regional housing needs. This Annual General Plan and Housing Element Progress Report (Progress Report) is submitted to the City Council, the Housing and Community Development Department (HCD), and the Office of Planning and Research (OPR). This is an opportunity to review activities and projects of the prior year in the areas of development and other programs that work toward implementing the City's General Plan. HCD required additional information for 2025, which required additional staff time allocation. The Progress Report is due to the State by April 1
st
.

DISCUSSION:

The purpose of the Progress Report is twofold. First, it informs the State of California of the City’s community development activities and assists in facilitating the legislative process as it pertains to land use and local development issues.

Second, the Progress Report serves to update the decision makers on progress toward the implementation of policies of the City of King General Plan, which includes the Housing Element, and assists in formulating future implementation

CITY COUNCIL

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MARCH 24, 2026
PAGE 2 OF 4
priorities. The Progress Report provides an overview of community development for the City. As of January 2026, the Community Development Department was reorganized and now includes the Planning Division, Building Division and Engineering Division. The status of major projects for each Division is identified in the Progress Report, along with work on Code Enforcement cases. (Code enforcement is under the Police Department but the Community Development Department and the Fire Department are part of the in-house Code Enforcement Committee.)
The State of California requires each county and city to adopt a General Plan for long-term growth. The General Plan consists of a statement of development policies and includes a map or maps and text setting forth goals and policies. It is a comprehensive long-term plan for the physical development of the City of King. In this sense, it is a "blueprint" for development.

The seven (7) State-mandated elements of the General Plan include:

1. Land Use

2. Circulation

3. Housing

4. Safety

5. Open Space

6. Noise

7. Conservation
The City of King’s General Plan consists of the mandated elements and an optional element called Economic Development. A comprehensive General Plan update occurred in 1998. Modifications to the land use, housing, safety, open space, and conservation elements were adopted by the City Council in 2016.

At the February 11, 2025 meeting, the City Council adopted the 2023-2031 King City Housing Element update (6th Cycle). It was subsequently submitted to and certified by the California Department of Housing and Community Development (HCD). According to HCD, "We are pleased to announce that the 2023-2031 (Cycle 6) Housing Element was officially adopted by the City Council on February 11, 2025 and certified by the State Housing and Community Development Department on February19, 2025. In 2025, the City also updated the Open Space, Conservation and Safety Elements, to reflect recent State requirements and the 2025 adopted Wildfire Prevention Plan. The City is in the process of updating the Land Use Element (LUE) and preparing the City’s first Development Code. Exhibit 1 provides details related to the General Plan, which includes the Housing Element. The City is also in the process of implementing the requirements of the State certified Housing Element.

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MARCH 24, 2026
PAGE 3 OF 4
One important aspect of the Progress Report is to track the number and type of permits processed by the City. This also includes the number of Code Enforcement cases. The following chart provides the number of planning and building permits submitted and the number of code enforcement cases processed for the years 2020, 2021, 2022, 2023, 2024 and 2025. A further breakdown of the types of project is included in Table 1. More details are provided in the Exhibit 1.

Table 1: Number of Projects (2020-2025)
2020 2021 2022 2023 2024 2025
Planning
Applications
(including
Planning
Commission
Review)
23 26 41 10 54 56
Building
Applications
117 88 122 67 117 122
Code
Enforcement
Cases
12 77 48
45 42 126*
City Council
Review
6 3 4 7 10 9
* The reason for the significant increase is due to Code Enforcement cases is due to enforcing lapsed business licenses.

COST ANALYSIS:

The cost associated with the Progress Report includes staff time preparing and distributing it.

CITY COUNCIL

CONSIDERATION OF ANNUAL GENERAL PLAN REPORT AND HOUSING ELEMENT PROGRESS REPORT FOR 2025
MARCH 24, 2026
PAGE 4 OF 4
ENVIRONMENTAL REVIEW:

The California Environmental Quality Act (CEQA) does not apply because the Annual General Plan and Housing Element Progress Report does not constitute a “project” under CEQA Guidelines Sec. 15378.

ALTERNATIVES:

The following alternatives are provided for City Council consideration:

1. Review and accept the Progress Report;

2. Amend and accept the Progress Report;

3. Do not accept the Progress Report; or

4. Provide other direction to staff.

EXHIBITS:

Exhibit 1: 2025 Annual General Plan and Housing Element Progress Report Spreadsheet
March 24, 2026
212 S. Vanderhurst Street
King City, CA 93930
Exhibit 1

CITY OF KING
City Council Planning Commission
Mike LeBarre, Mayor David Nuck, Chairperson
Carlos DeLeon, Mayor Pro Team David Mendez, Vice Chairperson Oscar Avalos Margarita Lopez
Robert Cullen Teri Storelli
Carlos Victoria Steve Wilson
City Administration
Jose Arreola, City Manager
Erica Sonne, City Clerk
Roy Santos, City Attorney
Community Development Department
Doreen Liberto, AICP, MDR
Community Development Director
Planning Division
Maricruz Aguilar,
Part-time Planner
Esmeralda Alvarez,
Planning Technician
Natalia Rios Gonzales,
Customer Service Assistant
Building Division Engineering Division
Mark McClain, Jeff van den Eikhof,
Building Official City Engineer
Adriana Granados, Geoff English,
Administrative Assistant Project Manager
Yesenia Rivas,
Customer Service
Assistant

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I. Introduction
A. Executive Summary ………………………………………………...4
B. Background Information …………………………………………....4
C. Information Document (CEQA Review) ………………………….5
D. Report Acceptance Date……………………………………………5
II. Community Development and Associated Projects
A. Planning Division...…………………………………………………..5
B. Building Division.……………………………………………………..7
C. Engineering Division ………………………………………………...8
D. Code Enforcement…………………………………………………...9
III. General Plan Implementation, Projects and Accomplishments A. Land Use Element…………………………………………………..10
B. Conservation, Open Space & Safety Element...……………………11 C. Circulation Element……………………………………………………..12
D. Housing Element…………………………………………………….12
E. Economic Development……………………………………………..24
IV. Regional Outlook ………………………………………………………26
V. Grants…………………………………………………………………….26
VI. Customer Service and Public involvement………………………..30 VII. Technology………………………………………………………………30
VIII. Conclusion………………………………………………………………31
Appendix………………………………………………………………….32
• Appendix 1: 2025 Housing Element AnnualProgress Report

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PAGE 4 of 32
I. INTRODUCTION
A. Executive Summary
California Government Code Section 65400(a) (2) requires an annual report on the status of the General Plan and the City's progress in its implementation, including progress in meeting its share of regional housing needs. (Charter Cities were required to start submitting the Annual Reports in April 2018.) The General Plan Annual Progress Report and Housing Element Annual Report are being submitted to the City Council, State Housing and Community Development Department (HCD) and the Office of Planning and Research (OPR). This is an opportunity to review activities and projects of the prior year in the areas of development and other programs that work toward implementing the City's General Plan. This Report provides spreadsheets and Tables of the specific developments proposed and approved in the City during 2025. The City of King’s General Plan is a long range comprehensive plan that will control and regulate land uses and development in the City. The individual Elements (land use, circulation, housing, conservation, open space, noise, safety, design, and economic development) of this General Plan contain policies and programs that will guide future development in the City.

The City of King’s 2025 General Plan Annual Progress Report is prepared by the Community Development Department with input from various City Departments.

The report is intended to provide information on the measurable outcomes and actions associated with the implementation of all of the General Plan Elements. It reviews the activities of the Community Development Department which includes the Planning, Building and Engineering Divisions.

B. Background Information
King City is a major population center in the Salinas Valley, an important agricultural area. Framed by the Santa Lucia Range in the west and the Gabilán Range in the east, the land immediately surrounding King City is comprised of agricultural fields intersected by the Salinas River—the largest river system on California’s Central Coast. The river flows northwesterly from its headwaters in eastern San Luis Obispo County, 175 miles through the Salinas Valley, and into Monterey Bay north of the city of Marina. The river is an important wildlife corridor, provides irrigation for an immense agricultural industry, and is the main source for aquifer recharge in the valley.

Agriculture has been the region’s primary economic draw in the Central Salinas Valley. Ninety percent (90%) of the jobs in the unincorporated Central Salinas Valley are in the agricultural sector. Historically, King City was the commercial and industrial center for South Monterey County.

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California State law establishes a framework for local planning procedures. The California Government Code (§65000 et seq.) establishes the laws pertaining to the regulation of land uses by all local governments including: the general plan requirement, specific plans, subdivisions, and zoning. The City of King is mandated by the State to conform to the California Government Code. (It should be noted that since the City is a Charter City, some provisions of the Government Code do not apply.) The City’s General Plan was comprehensively updated in 1998. Since its adoption (and subsequent amendments), the City has worked to implement the policies outlined in the General Plan. The various City branches that make up the City of King work together to implement various aspects of the General Plan.

These branches include the City Manager's office, Recreation Department, Fire Department, Police Department, and Community Development. This report is organized to comply with OPR's General Plan Guidelines.

C. Information Document (CEQA Review)
This document is a reporting document and does not create or alter policy and therefore, not a project for the purpose of the California Environmental Quality Act (CEQA).

D. Report Acceptance Date
The 2025 General Plan Annual Progress Report will be reviewed by the City Council on March 24, 2026.

Downtown Plaza
Before After
II. COMMUNITY DEVELOPMENT AND ASSOCIATED

PROJECTS
A. Planning Division
The Planning Division maintains and implements the King City Municipal Code, Zoning Ordinance, General Plan, and prepares other specialized planning documents. The division reviews development requests for conformance with the City's planning policies and standards, and conducts environmental review under the provisions of the California Environmental Quality Act (CEQA).

The list below outlines the activities of the Planning Division from January 2025

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through December 2025. The day-to-day planning activities include:
• Administering the City’s Zoning Ordinance (Development Code) • Answering public inquiries on the telephone and over the public counter • Processing entitlement applications for the Planning Commission and City Council
• Reviewing and approving business license applications for zoning compliance
• Reviewing development plans for compliance with City standards (Plan Checks)
The Planning Division staffs the Planning Commission, which meets on the first and third Tuesday of the month. The Planning Commission conducts public hearings on all entitlements, including new commercial and multi-family residential buildings, conditionally permitted uses, variances and similar land use requests. On legislative items such as General Plan Amendments (GPA), Amendments to the Zoning Ordinance, and Zoning Changes, the Planning Commission acts as an advisory body to the City Council. The City Council makes the final decisions on legislative items. Tables 1 and 2 list the number of projects reviewed by the Planning staff, Planning Commission and City Council.

Table 1: Planning Permits, Including Planning Commission Review (2020 – 2025)
Permit Type 2020 2021 2022 2023 2024 2025
Conditional Use Permit * 2 3 4 4 1 5
Conditional Use Permit
Amendment/Revisions
(including cannabis) *
2 4 4 0 2 4
Tentative Tract/Parcel
Maps *
0 1 2 1 0 1
Lot Line Adjustment 0 0 0 0 0 0
Lot Merger 0 0 0 0 0 0
General Plan
Amendment *
0 1 1 0 0 3
Rezone/Zone
Change/Zone Text
Amendment Ordinances *
1 1 1 2 4 1
Architectural Review * 1 1 5 1 2 3¹
Specific Plan
Amendment *
1 0 0 0 0 1
Misc. (e.g., Home
Occupation Permits
,Environmental
16 15 24 1 45 40

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Permit Type 2020 2021 2022 2023 2024 2025
Review, Plot Plan
Reviews, Landscaping
Plans, Pre-app Reviews,
Sign Permits, Temporary,
Mural Permits, Variances,
Operation Permits)
TOTAL: 23 26 41 10 54 56
*Planning Commission Review
¹Planning Commission Denied One Architectural Review Amendment Table 2: City Council Review By Application Type
(2020 – 2025)
Permit Type 2020 2021 2022 2023 2024 2025
General Plan
Amendment
0 1 1 0 0 1
Rezone/Zone
Change/Zone Text
Amendments
1 1 1 1 3 1
Ordinances
(excluding zone
changes)
5 1 1 6 7 7
Appeals 0 0 1 0 0 0
TOTAL: 6 3 4 7 10 9
B. Building Division
The Building Division is responsible for a variety of tasks that include issuing permits, processing plan check submittals, and inspections. The Building Division reviews all plans and permits for compliance with Building regulations. In 2025, the Building Division processed 213 applied permit applications, 206 issued permits, and 62 finalized permits. These applications include all construction-related projects and the installation of mechanical and utility equipment.Also, there were a total of 34 new single-family residential dwellings submitted for plan check in 2025. In 2025, there were a total of 16 new ADU plan check submittals. Table 3 provides a breakdown of building permits from 2020 to 2025.

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Table 3: Building Permits
(2020-2025)
Permit Type 2020 2021 2022 2023 2024 2025*
New Single-Family
Dwellings
51 24 48 25 37 44
Carriage Units 0 6 4 1 2 1
Tenant Improvements 5 1 2 2 1 8
Commercial
Remodels/Additions
4 4 2 0 3 3
Single Family
Residential
Remodels/Additions
1 7 1 1 3 5
Roof-Mounted Solar
Panels (Commercial &
Residential)
51 44 61 32 55 42
Multi-Family New
Projects
0 1 0 0 0 5
Multi-Family Remodel
Projects
1 0 0 0 1 1
Industrial New
Construction Issued
Permits
1 0 0 0 0 0
Industrial Remodel
Projects
3 1 4 0 0 0
ADU (Detached) 2 5 4
ADU (Garage
Conversions)
4 9 9
ADU (Attached) 0 0 0
Junior ADU 0 1 0
Other 0 1 0
TOTAL: 117 88 122 67 117 122
*2025 indicates “applied” permit applications.

C. Engineering Division
The City has been working on numerous engineering projects. Some of these projects include:

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• San Antonio Drive/Broadway Street Roundabout Project. o Engineering design nearing completion.
o Caltrans is reviewing the Cultural Resources Report.
• King Station Multimodal Transit Center (MMTC).
o Engineered at 30% design Phase 1 of MMTC.
o The MMTC will be transferred to TAMC later in 2026.
• Wastewater Treatment Plant Upgrade.
o The upgrade is at 90% design.
o Final design completion anticipated in Winter 2027.
• Replacement and purple pipe installation throughout the City. • Sewer Line Replacement Project.
o Under construction.
o Completion anticipated summer of 2026.
• Golf Course Restoration Project.
o Completion anticipated by Spring 2027.
• CDBG Pavement Rehabilitation Project 2025.
o Completion anticipated by Summer 2026.
• EV Charging Stations are being considered for the Golf Course Parking Lot, Recreation Center Parking Lot and City Hall Parking Lot. o Engineering design plans are pending.
• Bicycle Path Project Funded under the Affordable Housing and Sustainable Communities (AHSC) Program.
o Chispa received funding for its affordable housing project in Mills Ranch. As part of the funding, approximately $3.2 million will be used to provide multi-use trails and landscaping.
o Project design is being reviewed.
o Request for Proposal to be distributed in the summer of 2026. • ATP Cycle 6 – San Antonio Drive Path and Safe Routes to School Project. o The project is currently in the Project Approval and Environmental Document (PA&ED) Phase. Plans, Specifications and Estimates (PS&E).
o Phase is expected to begin in 2027.
o The non-infrastructure public education and outreach phase of the project has begun and is in partnership with TAMC.

D. Code Enforcement
The Code Enforcement Official is located in the Police Department. The Code Enforcement Committee, which consists of staff members from Police Department, Fire Department, City Administration and Community Development Department, is responsible for enforcing the King City Municipal Code that relate to residential and business property maintenance standards, including business licensing. Code Enforcement also enforces building, health and safety standards related to environmental protection and neighborhood preservation. Code Enforcement activity for the year 2025 involved 126 cases for various property violations (e.g.,

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commercial, residential, public street, park and recreational). The total number of closed cases in 2025 was 119. Table 4 provides the number of open code enforcement cases from 2020 to 2025. The number of cases reviewed between 2024 and 2025 increased by 84, or 200%. The significant increase in Code Enforcement cases is primarily due to the enforcement of lapsed business licenses.

Table 4: Code Enforcement Cases By Application Type
(2020 – 2025)
2020 2021 2022 2023 2024 2025
12 77 48 45 42 126*
* The reason for the significant increase in Code Enforcement cases is due to enforcing lapsed business licenses.

III.GENERAL PLAN IMPLEMENTATION, PROJECTS AND

ACCOMPLISHMENTS
The Annual General Plan Progress Report discusses specific projects and policies that demonstrate the implementation of the goals outlined in the General Plan.

A. Land Use Element
The Land Use Element (LUE) establishes the type and density of land uses and guides growth and development by presenting a plan that reflects the community's desire to maintain and enhance an enjoyable, balanced quality of life. The City's Land Use Map identifies specified land use areas, including Agriculture, Residential, Commercial, industrial and Open Space/Recreation.

The City updated the LUE in 2016 and is currently in the process of updating it again to incorporate State housing policies and the City’s future land use patterns.

The City has implemented many of the Goals, Policies and Programs in the updated 2016 Land Use Element, as listed below.

1. Objective 7.1.3: Continue to develop and adequately maintain a coordinate system of parks and recreational facilities in the city.

Accomplishments:
a. The Southeast Community Park was renamed “Railroad Park” based on a parking naming contest. Railroad Park is anticipated to open late 2026. It contains a softball field, basketball court, volleyball court, children’s playground grassy area with trees and benches, two picnic areas and park benches.
b. The City obtained $3.5 m. from AHSC grant via the CHISPA affordable housing project in Mills Ranch to install bicycle trails/multi-use trails

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from Mills Ranch to the future MMTC via Metz Road and Second Street.

The City will be going out to bid on these improvements in 2026. c. The City received a grant for $2.1 m. from State Parks Prop 68 for the construction of the Downtown Plaza Park, which includes a performance stage with gazebo, open lawn areas, children’s play elements, a promenade, interactive public art pieces, restroom, park, parking lot, landscaping, and lighting. The Park was dedicated on May 31, 2025.

2. Objective 8.1: Build an efficient, multi-modal transit center (MMTC) surrounded by mixed use developments to improve the quality of life, support economic vitality and reduce greenhouse gas emissions.

3. Policy 8.1.1: The City shall collaborate with federal, state and regional governments. Fort Hunter Liggett, Union Pacific and other involved entities to locate funding for the design and construction of the MMTC.

Accomplishments:
a. The City collaborate on the design and engineering plans with Union Pacific (UP) and have agreed to improvements for the Phase 1 platform construction.
b. Due to City staffing changes, in 2026, the City is working to transfer the King Station Multi-modal Transit Center to the Transportation Agency for Monterey County (TAMC).

B. Conservation, Open Space & Safety Element
The City amended the conservation, open space and safety elements in 2016, and combined the three (3) elements. Updates and amendments to these elements were primarily to make corrections and ensure consistency with the updated housing and land use elements. The open space, conservation and safety elements incorporates goals, policies and programs that protect residents from flooding hazards by updating flood maps that incorporate the most recent Federal Emergency Management Agency flood mapping.

Amendments also recommend the development of a proposed MMTC near First Street. The changes will help provide better housing, reducing vehicular trips, reducing energy consumption, reducing use of fossil fuels and improving air quality.

1. Hazard Prevention Goal COS-12: Reduce the risks from fire hazards, hazardous materials and seismic events to an acceptable level.

Accomplishment:
a. The City received a $214,000 Cal Fire Wildfire Prevention Plan grant to prepare a Riverbed Wildfire Prevention Plan (RWPP). The RWPP provided a range of programs to reduce the risk of fires. The plan was approved by City Council on March 11, 2025.
b. The City also approved an update to the Safety Element on June 24, 2025 to incorporate recommendations identified in the Riverbed Wildfire Prevention Plan.

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c. The National Park Service (NPS) is working jointly with the City and County to design a concept trail plan along the Salinas River which will help minimize fire hazards.

C. Circulation Element
The circulation element provides goals, objectives and policies to service future transportation needs. One goal is to provide an integrated transportation system to adequately serve residential, commercial, industrial and recreation uses. The City has been working with the Transportation Agency for Monterey County (TAMC) and applying for funding for the proposed multi-modal transit center and installation of bike lanes.

1. Policy 1.4: The City shall coordinate its transportation planning efforts with TAMC and Caltrans. City staff shall attend TAMC technical meetings as needed and shall maintain regular contact with state and regional transportation planning officials.

Accomplishment:
a. City staff attends TAMC meetings and is in ongoing communication with Caltrans and other transportation related officials to communicate the city’s transportation needs.
b. The City designed a roundabout to eliminate the only traffic signal in the town. The design complete and the final encroachment permit is being submitted. It is anticipated that the project will go out to bid in Spring of 2026 with an estimated expected completion in Spring of 2027.

2. Goal No. 3: To provide a Public Street and Highway System that accommodates Existing and Project Traffic Volumes within the Planning Area.

3. Goal No. 7: To Provide a System of Hiking and Equestrian Trails that Promote the Recreation Potential of the City’s Parks and Open Space Areas.

Accomplishment:
a. The City has received an $11 million grant for the Active Transportation Program (ATP) for the San Antonio Drive bike path and pedestrian path and educational program. The City received funding to begin planning and installing multi-use trails throughout the City. The San Antonio bike path connects the Arboleda Linear Park at San Antonio Road and Mildred Street and goes down San Antonio Road and Broadway Street, ending at the high school. Environmental phase is near completion.

D. Housing Element
The Housing Element establishes housing objectives, policies and programs in response to community housing conditions and needs. Some of the goals and policies met during 2025 are identified below. (Note that the 6th Cycle Housing Element was approved by HCD in February 2025.)

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1. Goal 1 Housing Availability and Services: Provide New Housing Units accessible to all members of the community in accordance with the regional fair share housing goals.
a. Policy 1.7: Ensure the provision of adequate infrastructure, public services, and facilities needed to support new housing units.

Accomplishments: In March 2025, City completed a comprehensive analysis of for-sale and rental housing in King City to define future growth opportunities. The report was an inventory of existing for-sale and rental housing, and define future for-sale and rental housing price and pace parameters.
b. Policy 1.9: Encourage high-density and mixed-use development in areas served by public transit and safe pedestrian and bicycle infrastructure.

Accomplishments: On July 22, 2025, City amended the General Plan Land Use Element and Zoning Code to identify a density in the Neighborhood Commercial district of up to nineteen (19) dwelling units per acre.

Program 1 Emphasize Infill Development – Adequate Sewer and Water:

The City has a Collection Systems Master Plan that guides and implement sewer collection system improvements to accommodate future growth and to propose sewer improvements required to correct existing deficiencies. A sewer replacement project is currently underway and include 1) upgrading existing facilities to mitigate current deficiencies and to serve future customers; and 2) building new trunks necessary to serve future users. South Second Street, South Third Street and South San Lorenzo Street which have been identified as the highest distribution system improvements needed at this time.

Program 4 Partner with the Development Community to Create Affordable Housing: The City and CHISPA entered into an agreement on a Affordable Housing Sustainability Communities (AHSC) grant for a Sustainable Transportation Infrastructure (STI) and Transit Related Amenities (TRA) to do a 2.2-mile bike and pedestrian path improvements. The grant was awarded in 2025.

Program 6 to Allow Mobile Homes: A draft ordinance has been prepared to amend the zoning ordinance Title 17 to allow mobile and manufactured homes in residential zones.

2. Goal 2 Housing and Neighborhood Conservation: Preserve and rehabilitate the existing housing stock to meet health and safety requirements and to improve the quality of life of residents. a. Policy 2.1: Continue to monitor and enforce building and property maintenance code standards in residential neighborhoods.

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Accomplishments: The City continues to enforce Municipal Code Chapter

7.51 Nuisance Article 1 Unlawful Property Related Nuisances which includes sections for Neighborhood Preservation.
b. Policy 2.2: Encourage the rehabilitation of housing in disrepair and demolition of units that are substandard and beyond repair as a means to help improve the neighborhoods.

Accomplishments: A top priority in code enforcement is identifying substandard living conditions. Following code enforcement violations in the last couple of years, two single family homes that were dilapidated were torn down and new units were built.

Program 7 Enhance Code Enforcement: The City continues to have monthly Code Enforcement staff meetings. The group is composed of Police, Fire, Building and Planning staff. The City also has a Citizen Code Enforcement Committee composed of local residents whose focus is to identify substandard areas in the city with the goal to improve the quality of life of residents. Ongoing monitoring of substandard housing continues to be a top priority for the Code Enforcement Committee. Code Enforcement cases increased by 200% between 2024 and 2025.

3. Goal 3 Special Housing Needs: Meet the housing needs of special groups of City residents, including the growing farmworker and senior populations, large families, single mothers, homeless and the disabled. a. Policy 3.2 City policies, programs, and ordinances shall provide opportunities for people with disabilities to reside in all neighborhoods.

Accomplishments: A draft ordinance has been prepared to amend the zoning ordinance Title 17 to meet state requirements reasonable accommodations for people with disabilities to resided in all neighborhoods.
b. Policy 3.4 The City will continue to work with the County, regional agencies, non-profits and nearby cities to provide adequate homeless shelters, permanent supportive housing and services in the South County area.

Accomplishments: City has partnered with the Housing Authority of Monterey County, the Homeless Coalition, the County of Monterey, StepUp and other agencies to provide temporary homeless housing for the past three years in coordinated efforts as the permanent supportive housing facility now called Casa de Esperanza which construction completion will be Spring 2026.

Program 8 Zoning for a Variety of Housing Types: A draft ordinance has been prepared to amend the zoning ordinance Title 17 to allow or the following:

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• Permanent Supportive Housing to be a by-right use in all zones where multifamily and mixed-uses are permitted.
• Transitional and Supportive Housing in zones that allow for residential uses.
• Low Barrier Navigation Centers to be a by-right use in zones where multifamily and mixed-uses are permitted, including the nonresidential zones where multifamily is permitted.
• Amend the definition of Emergency Shelter to include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.
• Amend the parking standards for emergency shelters to require no more than sufficient parking to accommodate all staff working in the shelter.
• Single-room occupancy units. To clarify which zones will allow for single-room occupancy (SRO) units with appropriate development standards.
• Residential Care Facilities. Define and allow residential care facilities for six or fewer persons, and residential care facilities regardless of size, in all zones that permit residential uses of the same type. • Farmworker Employee Housing. Amend the zoning code to clarify that farmworker housing is permitted by right, without a conditional use permit, in single-family zones for six or fewer persons and in zones allowing agricultural uses with no more than 12 units or 36 beds consistent with Health and Safety Codes Sections 17021.5 and 17021.6.
• Density Bonus. Review and revise the City’s Zoning Code to ensure consistency with State Density Bonus Law.

4. Goal 4 Fair and Equal Housing Opportunity: Ensure fair and equal housing opportunity for all, regardless of race age, marital status, ethnicity, sex, religion, household type, or other protected status or special needs households.
a. Policy 4.1: Support fair housing services to ensure that residents are aware of their rights and responsibilities with respect to fair housing.

Accomplishment: The City has entered into a partnership with Catholic Charities to offer the Emergency Rental Assistance Program. The agencies worked together in securing grant funds, and Catholic Charities will administer the program for the City. Catholic Charities holds office hours at City Hall every first Tuesday of the month. King City residents in need who meet eligibility requirements may qualify for one month’s rental assistance until all funds are expended.
b. Policy 4.4 Assist agencies and organizations that serve residents with special housing needs, including agricultural employees, seniors, disabled, single-parents and the homeless.

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Accomplishment: City has partnered with the Housing Authority of Monterey County, Coalition of Homeless Services Providers, Step-Up, and the Monterey County and Central California Alliances for Health to renovate a motel into permanent supportive housing facility to serve the homeless.

Program 10 Reasonable Accommodation: A draft ordinance has been prepared to amend the zoning ordinance Title 17 to establish a reasonable accommodation procedure that does not require a CUP or variance to assist people with disabilities by ensuring equal access to housing.

5. Goal 5 Energy Conservation: Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in housing costs. a. Policy 5.1 All new dwelling units shall be required to meet current State requirements for energy efficiency. The retrofitting of existing units shall be encouraged.

Accomplishment: The City’s building department reviews housing plans to be in conformance with the latest building code requirements for efficiency use standards.

Program 12 Efficient Land Use: A draft Land Use Element Update is underway that will include the three Opportunity Areas at west and east of Broadway and the intersection of First Street with US Hwy 101. These Opportunity Areas will emphasize the development of higher-density development in the vicinity of major transit nodes, provide for pedestrianoriented development patterns, and preserve open space areas.

Program 17 Improve Access To Resources: City continues to work with Monterey-Salinas-Transit on improving access to transit. The City completed in 2025 a Streetscape Improvement project along Broadway that included improvements to crosswalks and bulb outs near the MST bus stop on Broadway Street.

The State Annual Housing Element requires the City provide a status update on Programs and Objectives. Table 5 provides a summary of the Housing Element implementation.

Table 5: Housing Element Implementation
GOAL NUMBER OBJECTIVE IMPLEMENTATION STATUS CYCLE 6 GOAL GOAL 1:

Housing
Availability &
Services
PROGRAM 1:

Emphasize Infill
Development
The City will
identify and
continue to
encourage the
development of
underutilized
parcels in City
limits.

Encourage Mixed Use: Identify
barriers to Mixed Use and the
types of Mixed Use Development
that is appropriate to the City of
King. Amend Land Use Element
and Development Regulations to
allow density increase and mixed
use in Opportunity Zones.

Approval of 10 single
family infill units, 100
attached units and
20 units in Mixed
Use Buildings.

Approve 5 ADUs in
Census Tract
113.03.

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Encourage Small Lots and
Utilize Irregular Lots: Work with
local developers to identify
workable small lot options. Identify
existing lots that are underutilized
and contact property owners to
discuss options. Encourage
ADU’s and second units by
continuously updating preapproved plans and ADU
regulations, pursuing funding for
ADU development on an annual
basis, and modifying development
standards for ADUs if per-year
production is not being met at the
halfway mark.

Increase Height Limits:

Revise Development Regulations
to allow increased heights in
“Opportunity Zones” by December
15, 2026.

Development Incentives:

Identify appropriate and
achievable infill development
incentives. Implement incentives.

Adequate Sewer and Water:

Communicate with Public Works /
Sewer and Water Providers to
introduce growth concepts,
anticipated timing and
infrastructure needs. Given the
City is the wastewater provider,
the City will establish a written
procedure to grant priority service
in accordance with State Law and
implement immediately upon
adoption.

Documentation and Reporting:

Document related actions and
Update City Council semiannually
TIMEFRAME:

December 15, 2026.

GOAL 1:

Housing
Providing
Additional Areas
for Housing
Coordinate with Owners and
Developers / Stakeholders:

Identify and contact Owners and
Add potential for 50
market rate units and

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Availability &
Services
PROGRAM 2:

Provide Future Sites
for Residential Growth
Developers to obtain information,
introduce and coordinate the
redevelopment effort(s). Areas for
Farmworker and for Market Rate
housing are anticipated to be
separate.

Prepare Opportunity Zone Land
Use and Zoning:

Prepare and process Land Use
Element and Development
Regulations Amendments.

Adequate Sewer and Water:

Communicate with Public Works /
Sewer and Water Providers to
introduce growth concepts,
anticipated timing and
infrastructure needs.

Documentation and Reporting:

Update Planning Commission and
through the Amendments process.
50 affordable units to
the Downtown Area.

TIMEFRAME:

On-going. Track
project processing
timeframes related to
PRC §21080.1, PRC
§21080.2, and Gov’t
Code 65920 on an
ongoing basis.

Monitoring of pipeline
projects by
December 15, 2027.

Develop SB 35
materials be
December 15, 2026,
permit by-right on
APN 026-531-019
upon adoption of the
Housing Element.

GOAL 1:

Housing
Availability &
Services
PROGRAM 3:

Provide Future
Housing Sites For
Lower Income
Residents:

Expand potential
locations for
Agricultural
Employment
Housing. Expand
potential for lower
income housing in
the Downtown
Core.

Process LUE and Development
Regulations Change: Prepare
and implement Land Use Element
and Development Regulations
Amendments. Utilize Floor Area
Ratio in lieu of density in the
downtown area.

Continued
accommodation for
364+ agricultural
employees in
Dormitory Style
Housing. Expand
opportunity for
employee housing in
Downtown Specific
Plan.

TIMEFRAME:

DECEMBER 15,
2026
GOAL 1:

Housing
Availability &
Services
PROGRAM 4:

Partner with the
Development
Community to Create
Affordable Housing
Coordinate and
provide incentives
to encourage the
production of
affordable
housing.

Coordinate efforts
to match potential
developers and
sites with funding
resources.

Identify Potential Funding
Sources: Review federal, state
and local programs. Identify
potentially applicable programs.

Coordinate with Development
Community: Identify and maintain
regular contact with potential
Affordable and Agricultural
working housing developers –
discuss available programs.

Identify potential partners for
Participate in
application every
other year. Facilitate
the construction of
75 Units
TIMEFRAME:

On-going through
Cycle 6,

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housing for persons who are
homeless and those serving
people with disabilities by
December 2025 and conduct
outreach on an annual basis to
discuss development opportunities
and incentives.

Prepare Applications: Participate
in application for funding as
identified at least twice during the
planning period while identifying
potential funding sources on an
ongoing basis (at least annually).

Documentation and Reporting:

Provide Semi-annual update to
Planning Commission regarding
funding sources discussions,
potential developers and potential
funding.

GOAL 1:

Housing
Availability &
Services
PROGRAM 5:

Reduce Barriers to
Creating Multi-Family
Housing
Remove barriers
and amend
Development Code
Regulations for
multi-family
housing.

Identify Restrictions: Review
current Land Use and Zoning
Designations for restrictions to and
opportunities for multi-family use
and amend if constraints are
identified, with the purpose of
broadening and facilitating
opportunities in the Downtown
Corridor and at First Street / US
101.

Recommend Revisions: Present
proposed revisions to Planning
Commission.

Documentation and Reporting:

Document research and upcoming
recommendations to Planning
Commission and Council semiannually.

Land Use Element
and Zoning
Ordinance reviewed
within calendar year
2024, with
amendments to
occur no later than
December 15, 2026.

TIMEFRAME:

Ongoing
GOAL 1:

Housing
Availability &
Services
PROGRAM 6:

Allow Mobile Homes
Compliance with
State law /
provision of lower
cost housing
Review and Revise Code:

Review Zoning Code (and General
Plan) for hindrances including
mobile/manufactured dwellings in
Single Family Residential districts
and Amend Code as directed
Zoning Code
Revision to allow
mobile /
manufactured homes
in Single Family
Residential Districts.

Permit 5 mobile
homes in lower-

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Documentation and Reporting:

Prepare and present
recommended revisions semiannually.
density
neighborhoods.

TIMEFRAME:

December 15, 2026
GOAL 2:

Housing and
Neighborhood
Conservation
PROGRAM 7:

Enhance Code
Enforcement
Continue to work
with the
community to
remedy code
violations.

Enforcement: Identify existing
enforcement regulations and their
purpose, identify responsible staff
with time required to perform
enforcement duties, establish clear
protocols for communicating with
residents.

Documentation and Reporting:

Prepare information / Program and
present to Planning Commission
for approval. Document
enforcement activities and
identified needs from those
activities.

Assist the
rehabilitation of 5
non-agriculture
housing units as well
as targeted code
enforcement actions
and assistance for 30
agricultural housing
units.

TIMEFRAME:

Ongoing
GOAL 3:

Special
Housing
Needs
PROGRAM 8:

Zoning For a Variety
of Housing Types
Amend the City’s
Zoning Ordinance
as described in the
program.

Program: Review and amend
Zoning Ordinance. Provide
findings to Planning Commission,
upon direction prepare appropriate
Zoning Text revisions.

Documentation and Reporting:

Report to Planning Commission
and City Council.

Ensure consistency
with State housing
laws, conserve 10
units through more
secure zoning.

TIMEFRAME:

December 15, 2026
GOAL 4: Fair
and Equal
Housing
Opportunities
PROGRAM 9:

Fair Housing
Program
Provide Fair
Housing
information to
tenants and
landlords at
regular intervals.

Program: Obtain and disseminate
information from US Department of
Housing and Urban Development
(HUD) and California Department
of Fair Employment and Housing
(DFEH). The materials will be
provided in Spanish and English
and will be published on the City’s
website, in the City Manager’s
newsletter and in utility bills.

Documentation and Reporting:

Provide Semi-Annual updates to
Planning Commission on status /
success of communications.

Create
understanding of
compliance / respect
for Fair Housing
Standards. Assist 25
households at risk of
displacement
through the multipronged outreach
approach, including
production,
preservation, and
renter protections.

TIMEFRAME:

Ongoing

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GOAL 4: Fair
and Equal
Housing
Opportunities
PROGRAM 10:

Reasonable
Accommodation
Ordinance
Ensure
Reasonable
Accommodation
Procedures in City
review and
approval of
accommodations
for persons with
disabilities.

Program: Review current
procedures, prepare
recommendations for Planning
Commission, receive direction,
prepare and present Ordinance to
Commission and Council and
amend existing regulations as
appropriate.

Documentation and Reporting:

Document progress and provide
Semi-Annual updates to Planning
Commission.

Continue review of
City procedures,
policies and codes
that provide and
facilitate equitable
system of Housing
approvals for
persons with
disabilities.

TIMEFRAME:

December 15, 2025
GOAL 4: Fair
and Equal
Housing
Opportunities
PROGRAM 11:

Universal Design
Provide homes in
new developments
that are capable of
accommodating
residents
throughout life as
their physical
capabilities
change.

Program: Meet with
homebuilders. Identify barriers to
Universal Design and potential
solutions that the City can
participate in.

Documentation and Reporting:

Present concept / Program to
Planning Commission, present
examples that define Universal
Design. Meet with Development
Community to discuss potential.

Document research and
discussions and update
discussions Semi-Annually.

Include homes with
Universal Design
features in each new
development.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 12:

Efficient Land Use
Amend Land Use
Element to include
three Opportunity
Zones. Amend
Development
Regulations to
allow increased
density and
intensity.

Program: Continue discussions
with Planning Commission.

Prepare Land Use Plan and
Development Regulations as
directed.

Documentation and Reporting:

After public review, present
amendments to Planning
Commission and City Council for
approval.
“Refreshed“ General
Plan that guides
efficient use of
resources and land.

TIMEFRAME:

December 15, 2025
GOAL 5:

Energy
Conservation
Increase
applications for
Smart Planning
Funds.

Program: Prepare and present
proposed Program to City
Manager and Planning
Commission to improve
20 Units to receive
funds for Affordable
Housing / Smart
Planning.

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PROGRAM 13:

Smart Planning
Incentives
competitiveness. Identify sources
of funding and ways to support
applications.

Documentation and Reporting:

Document actions / progress and
update Planning Commission
Semi-Annually.

TIMEFRAME:

December 2025
GOAL 5:

Energy
Conservation
PROGRAM 14:

Energy Efficient
Housing
Establish energy
efficiency in older
homes / new
construction as
standard practice
in the City.

Program: Prepare and present
proposed Program to City
Manager and Planning
Commission. Identify sources of
funding for energy retrofits and
provide informational support to
contractors and homeowners
using Website and Manager’s
Newsletter.

Documentation and Reporting:

Document actions / progress and
update Planning Commission
Semi-Annually.

The City shall
connect at least 25
pre-1990’s homes
with information
regarding energy
efficient housing and
relevant retrofits.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 15:

Energy and Water
Conservation
Reduce residential
(and commercial)
water use in
conformance with
State Guidelines
and reduce the
overall energy
usage in the City.

Program: Work with CalWater to
Identify and address City
inefficiencies in water use /
transport. Explore any system
upgrades that additional units in
the Downtown Core may require.

Documentation and Reporting:

Review and Implement most
recent CalWater Urban Water
Management Plans. Define
specific Policy regarding property
owner well drilling. Document
discussions with business owners
/ developers. Update Planning
Commission Annually.

Reduce water and
energy usage to
levels below state
requirements.

Achieve culture of
efficiency /
conservation. Assist
50 households and
commercial
enterprises with
water conservation
strategies, as
identified in the
CalWater Urban
Water Management
Plans.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 16:

Achieve increased
energy efficiency /
sustainability in all
new projects.

Program: Prepare and present
proposed Program to City
Manager and Planning
Commission. Review existing
policy and regulatory documents
Review General
Plan, Zoning
Ordinance,
Subdivision
Regulations, Design

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Green / Sustainable
Building
to include “green and sustainable”
guidance / standards. Include
policy regarding electric recharge
stations. Present proposed
changes to City Manager and
Planning Commission. Make
changes as directed and present
for approval.

Documentation and Reporting:

Document and Update Progress
on Annual basis.

Guidelines to identify
potential updates
direction regarding
“green and
sustainable” growth.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 17:

Improve Access To
Resources
Promote placebased strategies
for community
revitalization.

Documentation and Reporting:

Document and Update Progress
on Annual basis.

One improvement to
improve transit
access; generally,
one improvement a
year aimed at placebased revitalization
in areas of elevated
displacement risk;
two members from
areas of elevated
displacement risk on
boards, committees.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 18:

Housing Mobility
Promote housing
mobility
throughout the
community; in
addition to 70
ADUs to meet
RHNA, target an
additional 15 units
specifically for
lower-income
homeowners.

Documentation and Reporting:

Document and Update Progress
on Annual basis.

Focus at least 50%
of ADUs in areas of
relative higher
opportunity (35
ADUs). Provide
additional incentives
for lower-income
homeowners to
support 15 ADU
developments.

TIMEFRAME:

Ongoing
GOAL 5:

Energy
Conservation
PROGRAM 19:

Preserve 84
housing units from
converting to nonlow-income uses.

Documentation and Reporting:

Document and Update Progress
on Annual basis.

Preserving the
existing affordable
housing stock is a
cost-effective
approach to

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E. Economic Development Element
The purpose of the Economic Development Element is to identify current economic development conditions and to demonstrate how the land use plan will promote business activity and employment growth within the City consistent with the priorities identified by City leaders and the community. The Economic Development Element establishes goals and policies to promote fiscal stability, expand the City’s employment base, and enhance the City’s revenues in order to provide quality services to the community. These goals and policies provide for the implementation of the City of King’s vision as a regional economic job center and commercial hub. The Economic Development Element was updated and approved by the City Council on January 25, 2022.

1. Policy 1.4: Continue to find financial support for the ultimate buildout of the Multi-Modal Transit Center located in the proximity of Pearl Street and First Street.

Accomplishment:
a. The City has approximately $53 ml in funding for Phase 1 of the MMTC.

In early 2025, the City applied for an additional $25 ml from the BUILD Grant.

2. Policy 1.5: Undertake strategies to attract new and retain existing commercial uses and a broad range of housing developments.

Accomplishments:
a. The City has been working closely with the Monterey County Business Council on potential commercial and hotel developments. A Retail Market Assessment was prepared by Kosmont Company to assess how to attract retail uses.
b. City staff meet monthly with the South Country Roundtable, which is part of the Monterey County Business Council. The primary purpose for Prevention of At-Risk
Housing Units
providing affordable
housing in King City.

The City must guard
against the loss of
housing units
available to lowerincome households.

There are 84 units
at-risk of converting
to non-low-income
uses during the
planning period.

TIMEFRAME:

Ongoing

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the meetings is to collaborate on advancing economic development and fostering business growth in the South Monterey County area. c. The City continues to collaborate with Laurence Livermore National Lab (LLNL) on future carbon capture and storage opportunities. This includes establishing relationships with potential businesses that could be located in King City.

3. Action Item 2.1.04: Increase and market properties with prime freeway access and visibility to chain retail businesses to expand shopping opportunities and decrease loss of sales tax to outside areas.

Accomplishments:
a. The City continues to work with the property owners of 40-acres adjacent to Highway 101 and First Street to identify the appropriate land uses for development of mixed use housing and commercial development.
b. The City continues to work with StayCal to locate a hotel off of Broadway Street (APN: 026-391-028-000), which will be adjacent to the recently constructed Dutch Bros and Grocery Outlet. (It is anticipated the Grocery Outlet Grocery Store will open in early May 2026.)

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IV. Regional Outlook
The City has been working with the Association of Monterey Bay Area Governments (AMBAG) to develop a 2026 Regional Growth Forecast (Forecast), which includes population, housing and employment projections. The Forecast can be viewed at: Summary-SubregionalV7final_092524.xlsx Population
The Forecast identified the City’s 2023 population as 13,968. The Forecast projects that the City’s population will be 14,871 by 2030, 14,975 by 2040 and 15,158 by 2050. It is project that the City’s population will grow by 9% between 2023 and 2050. Monterey County’s population is to project to grow by 6% between 2023 and 2050.

Housing
The Forecast identified the number of housing units located in the City in 2023 at 3,691 units.

The Forecast projects the number of housing units will be 3,870 in 2030, 4,065 units in 2040 and 4,219 units in 2050. This is a 14% increase in housing between 2023 and 2050. The number of housing units for the County is project to increase by 17% during the same time period.

Employment
The Forecast identified the number of jobs located in the City in 2023 at 7,987. The Forecast projects that the number of jobs in 2030 at 8,242, 8,396 in 2040 and 8,511 in 2050. That is a 7% increase in jobs from 2023 to 2050. This is consistent with the County’s job projection of 7%.

V.Grants
The City has been working on several grants to generate housing and promote a livable community. The grants are highlighted in Table 6.

Table 6: Grants
Grant
Funding
Purpose Status Grant Amount
Cal Fire
Wildfire
Grant
The Project will focus on protecting
King City, the adjacent
communities, including the Pine
Canyon, structures (e.g., houses),
infrastructure, and the Salinas River
and San Lorenzo Creek corridor.

This Plan will address innovative
Approved $224,000

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 27 of 32
Grant
Funding
Purpose Status Grant Amount
nature-based solutions to reduce
disasters caused by climate
change, such as drought, wildfires,
recharge groundwater, and
pollution control.

SB 1 Phase 1 of MMTC. Engineer and
design of temporary platform.

During 2022, the City conducted
a stakeholder’s meeting to
collaborate on funding,
submitted draft engineering
plans to Union Pacific, worked
with Amtrak to establish an
estimated timeframe to provide
passenger service in King City
and submitted an ITIP grant to
help fund the accelerated rail
platform.
$1,475,000.00
SB 2 Update
LUE/Prepare ADU Ordinance
Closed $160,000.00
LEAP Update Housing Element Closed $65,000.00
REAP 1 Update various General Plan
policies related to
attracting housing.

Closed $65,000.00
REAP 2.0 Update to the Land Use Element Approved $79,985 PHLA Various Housing Projects, including
providing housing,
including rapid rehousing.

Approved $134,000/year.$805,00
0/5 yrs.

LHLA Regional Housing Trusts. Work
with the County and other cities to
support a regional housing trust.

County discussing applying and
leading the effort on this funding
source.

City’s portion presently
unknown.

Prop. 68 Construction of the Plaza Park at
332 Broadway
City is closing grant application. $2,135,000
City
Façade
Grant
Staff is working with
businesses/property owners within
the Historic Downtown on providing
grants
Ongoing process City awards a $12,500
grant for façade
improvements and
$2,500 for business
signs.

Airport
Improvem
ent
Federal Aviation Administration
Grant AIP20-2022 to rehabilitate
Taxiway A & Caltrans Aviation
FAA grant closed
Caltrans grant in process of
$184,082 FAA
$9,204 Caltrans

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 28 of 32
Grant
Funding
Purpose Status Grant Amount
Program
(AIP)
Matching Grant closing.

Airport
Improvem
ent
Program
(AIP)
Federal Aviation Administration AIP
Project No. 021-2025 to Install
PAPI and REILs on Runway 11 end
Electrical Improvements
Design/Construction project. FAA
Airport Infrastructure Grant (AIG)
Project No. 022-2025 Construction
Phase 2. This project also has
Caltrans Aviation Matching grant
funds.

Approved and in process. $151,062 FAA AIP
$439,720 FAA AIG
$7,553 Caltrans
ATP San Antonio Pedestrian Path &
Safe Routes to School
Approved, PA&ED phase
currently underway
$11, 043.000 (portion
of grant for NonInfrastructure
component being
handled by TAMC)
AHSC Bike Path Improvements Approved, RFP for design
pending
$3,199,918
HUD -
CPF
Community Project Funds for EV
Charging Station Lot
Approved, pending grant
amendment
$600,000
AMBAG EV Charging Spaces Approved, pending grant
amendment
$385,900
EDI EDI Community Project for the
Streetscape Project
Completed $1,000,000
SRA Multi-modal transit center Approved $1,475,000
ITIP Multimodal Transportation Center Approved $7,500,000 SB 125 Multimodal Transportation Center Approved $7,500,000 AMTRAK Multimodal Transportation Center Approved $5,000,000 SRA Multimodal Transportation Center Approved $6,375,000 TIRCP Multimodal Transportation Center Approved $25,000,000

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 29 of 32
Grant
Funding
Purpose Status Grant Amount
Homekey Permanent Supportive Housing Approved $11,436,000 HHAP
Round 3
Permanent Supportive Housing Approved $465,000
PLHA Permanent Supportive Housing Approved $77,662
CCAH Permanent Supportive Housing Approved $5,178,680
ERF
(County
grant)
Permanent Supportive Housing Approved $6,134,596
HCD Permanent Supportive Housing Approved $1,100,000
State
Legislativ
e Funds
Recreation Center / City Park Approved $400,000
RSTP Roundabout Project Approved $4,500,000
RSTP Roundabout Project Approved $1,488,000
MBARD Roundabout Broadway/San
Antonio Dr
Approved $200,000
CDBG Street Improvements Approved $3,300,000
Coalition
HHAP
Temporary Homeless Shelter Approved $200,000
ERF Temporary Homeless Shelter Approved $465,000
PLHA Temporary Homeless Shelter Approved $425,188
HHAP 5 Temporary Homeless Shelter Approved $375,000
STEP Traffic Enforcement Approved $65,000

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 30 of 32
VI. Customer Service/Public Involvement
The City conducts annual community surveys to assess areas of satisfaction and identify opportunities for improvement. These surveys have been used to enhance customer service and overall service delivery.

Between September 18 and October 13, 2025, a survey was conducted by EM3 Research in partnership with The Lew Edwards Group. The effort included 209 interviews with King City residents and measured satisfaction with local government, City services, and overall quality of life. Results show that 74% of respondents view the City favorably—well above statewide trends. Residents expressed satisfaction with the City’s efforts to maintain safety, cleanliness, and fiscal stability.

Additional surveys are currently being conducted by a studio class within the City and Regional Planning Department at California Polytechnic State University, San Luis Obispo.

Results are pending as of the date of this report.

The City is also collaborating with the National Park Service (NPS) to develop a conceptual hiking trail along the Salinas River extending into San Lorenzo Regional Park. A related community survey
launched on
February 18,
2026, with
responses due
by March 18,
2026.

VII.Technology Review
a. Citizenserve – Citizenserve is a cloud-based, integrated municipal software platform that helps to streamline operations by moving services online. It provides a citizen portal for submitting applications, payments and requests online, while allowing staff to electronic review those applications. The Building Division processes all building applications via citizenserve. The Planning Division processes a majority of planning applications via citizenserve.
b. GIS – City has been utilizing ESRI ArcGIS to create maps. Much of the existing data is outdated and in need of updating. Staff continues to learn to navigate through GIS.

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 31 of 32
VIII.Conclusion
The General Plan Progress and Annual Housing Element Report highlights the actions undertaken by the City of King in 2025 to advance implementation of the City’s General Plan.

Throughout the year, the City continued to make steady progress in carrying out the policies and programs identified within each element of its guiding planning document, as detailed in the sections of this report.

The General Plan reflects the community’s shared vision for maintaining and enhancing quality of life in the City. As demonstrated by the accomplishments summarized for 2025, the City has made meaningful strides in implementing the goals and policies outlined in the Plan. The initiatives, proposals, and projects brought forward during the year have supported the City’s ongoing commitment to protecting valuable local resources, strengthening the local economy, expanding housing opportunities, and improving overall quality of life for the community.

CITY OF KING
2025 GENERAL PLAN ANNUAL PROGRESS REPORT/HOUSING ELEMENT ANNUAL REPORT
MARCH 24, 2026
PAGE 32 of 32
Jurisidiction Name
Reporting Calendar Year
First Name
Last Name
Title Click here to download APR Instructions
Email
Phone
Street Address
City
Zipcode
v_01_30_26
Click here to add rows to a table. If you add too many
rows, you may select a cell in the row you wish to
remove and type ctrl + d.
212 S Vanderhurst Ave
King City
93930
Doreen
Liberto
Community Development Director
[email protected]
8313865923
Mailing Address
Please Start Here
General Information
2025
King City
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You
will be prompted to pick an old workbook to import
from. Project and program data will be copied exactly
how it was entered in last year's form and must be
updated. If a project is no longer has any reportable
activity, you may delete the project by selecting a cell in the row and typing ctrl + d.

Annual Progress Report January 2020
APPENDIX 1
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Historic Sites Application
Status Project Type Notes
2 3 4 6 7 8 9 10 12 13 14
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted
(see
instructions)
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low-Income
Deed
Restricted
Extremely
Low-Income
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total

PROPOSED
Units by
Project
Total

APPROVED
Units by
project
Total

DISAPPROVE
D Units by
Project
Please select
state
streamlining
provision/s the
application was
submitted
pursuant to.

Is this project
located on a
site with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Did the
housing
development
application
seek
incentives or
concessions
pursuant to
Government
Code section
65915?
Were
incentives or
concessions
requested
pursuant to
Government
Code section
65915
approved?
Please
indicate the
status of the
application.

Is the project
considered a
ministerial
project or
discretionary
project?
Notes+
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 14 14 14 0 026-202-004-
000 217 Pearl St #A B24-000194 ADU R1/9/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-551-036-
000
816
Sandringham St
#A
B25-000109
ADU R
7/14/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-151-066-
000
421 S San
Lorenzo Ave
(Unit A & B)
B25-000049
ADU R
7/17/2025
2 2 2 0 NONE No No N/A Approved Ministerial
026-168-022-
000 526 Lynn St B25-000183 ADU R9/19/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-201-017-
000 207 Bassett St B25-000213 ADU R10/30/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-631-061-
000
167 Ermosa
Way B24-000133 ADU R2/14/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-422-002-
000 104 River Dr B25-000008 ADU R4/9/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-551-026-
000 720
Sandringham St B25-000058
ADU O
4/24/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-554-021-
000
424 Lingfield Ct
(Unit A) B25-000080 ADU R5/12/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-055-010-
000 325 Canal St B25-000110 ADU R6/13/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-561-035-
000
255 Brighton
Ave B25-000063 ADU R6/16/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-642-036-
000 771 Roma Way B25-000202 ADU R10/14/2025
1 1 1 0 NONE No No N/A Approved Ministerial
026-471-004-
000
607 N
Vanderhurst
Ave
B25-000166
ADU O
9/5/2025
1 1 1 0 NONE No No N/A Approved Ministerial
Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Density Bonus Law
Applications
11 Housing Development Applications Submitted
Proposed Units - Affordability by Household Incomes
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Table A2
2 3 5 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low- Income
Deed
Restricted
Extremely
Low- Income
Non Deed
Restricted
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date Approved
# of Units
issued
Entitlements
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 14 14 026-202-004-000 217 Pearl St #A B24-000194 ADU R 1 1/9/2025 1 026-551-036-000 816 Sandringham
St #A B25-000109 ADU R 1 7/14/2025 1
026-151-066-000 421 S San Lorenzo
Ave (Unit A & B) B25-000049 ADU R 2 7/17/2025
2 026-168-022-000 526 Lynn St B25-000183 ADU R 1 9/19/2025 1 026-201-017-000 207 Bassett St B25-000213 ADU R 1 10/30/2025 1 026-631-061-000 167 Ermosa Way B24-000133 ADU R 1 2/14/2025 1 026-422-002-000 104 River Dr B25-000008 ADU R 1 4/9/2025 1 026-551-026-000 720 Sandringham
St B25-000058 ADU O 1 4/24/2025 1
026-554-021-000 424 Lingfield Ct
(Unit A) B25-000080 ADU R 1 5/12/2025 1
026-055-010-000 325 Canal St B25-000110 ADU R 1 6/13/2025 1 026-561-035-000 255 Brighton Ave B25-000063 ADU R 1 6/16/2025 1 026-642-036-000 771 Roma Way B25-000202 ADU R 1 10/14/2025 1 026-471-004-000 607 N Vanderhurst
Ave B25-000166 ADU O 1 9/5/2025 1
026-651-033-000 692 Bikle Dr Arboleda Specific
Plan B24-000117 ADU R 0
026-651-035-000 696 Bikle Dr Arboleda Specific
Plan B24-000113 ADU R 0
026-651-043-000 712 Bikle Dr Arboleda Specific
Plan B24-000281 ADU R 0
026-642-037-000 767 Roma Way Mills Ranch Specific
Plan B24-000035 SFD O 0
026-642-039-000 759 Roma Way Mills Ranch Specific
Plan B24-000054 SFD O 0
026-651-032-000 690 Bikle Dr Arboleda Specific
Plan B24-000119 SFD O 0
026-651-033-000 692 Bikle Dr Arboleda Specific
Plan B24-000118 SFD O 0
026-651-034-000 694 Bikle Dr Arboleda Specific
Plan B24-000115 SFD O 0
026-651-035-000 696 Bikle Dr Arboleda Specific
Plan B24-000114 SFD O 0
026-602-043-000 231 Oxford Ave B24-000135 ADU O 0
026-651-036-000 698 Bikle Dr Arboleda Specific
Plan B24-000201 SFD O 0
026-651-037-000 700 Bikle Dr Arboleda Specific
Plan B24-000200 SFD O 0
026-651-039-000 704 Bikle Dr Arboleda Specific
Plan B24-000197 SFD O 0
026-643-004-000 142 Boston Ln Mills Ranch Specific
Plan B24-000220 SFD O 0
026-643-003-000 130 Boston Lane Mills Ranch Specific
Plan B24-000219 SFD O 0
026-643-009-000 137 Brunia Place Mills Ranch Specific
Plan B24-000262 SFD O 0
1 Unit Types Affordability by Household Incomes - Completed Entitlement 4 Project Identifier
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Cells in grey contain auto-calculation formulas
8 9 11 12
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome Non
Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of Occupancy
or other
forms of
readiness
0 0 0 0 0 0 0 0 0 0 50 50 0 0 0 0 0 0 3 0 0 0 54 57
1 1/14/2025 1 1 10/10/2025 1
1 7/14/2025 1 0
2 7/24/2025 2 0
1 9/19/2025 1 0
1 10/30/2025 1 0
1 3/19/2025 1 0
1 4/9/2025 1 0
1 5/5/2025 1 0
1 5/12/2025 1 0
1 6/13/2025 1 0
1 6/16/2025 1 0
1 10/14/2025 1 0
1 9/5/2025 1 1 12/22/2025 1
0 1 1/17/2025 1
0 1 2/7/2025 1
0 1 5/16/2025 1
0 1 1/10/2025 1
0 1 1/10/2025 1
0 1 1/10/2025 1
0 1 1/17/2025 1
0 1 2/7/2025 1
0 1 2/7/2025 1
0 1 2/12/2025 1
0 1 2/14/2025 1
0 1 2/20/2025 1
0 1 2/27/2025 1
0 1 3/7/2025 1
0 1 3/10/2025 1
0 1 3/26/2025 1
Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 7 10
Note: "+" indicates an optional field
Streamlining Historic Sites Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
13 14 15 16 17 18 19 20 21 22 23 24 25
Please select the
state
streamlining
provision the
project was

APPROVED
pursuant to.
(may select
multiple)
Is this project
located on a site
with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Infill Units?
Y/N+
Assistance
Programs for Each
Development
(may select
multiple - see
instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable
without financial
assistance or deed
restrictions, explain how
the locality determined the
units were affordable
(see instructions)
Term of Affordability
or Deed Restriction
(years) (if affordable
in perpetuity enter
1000)+
Number of
Demolished/Destro
yed Units
Demolished
or Destroyed
Units
Demolished/
Destroyed
Units
Owner or
Renter
Total Density Bonus
Applied to the Project
(Percentage Increase in
Total Allowable Units or
Total Maximum Allowable
Residential Gross Floor
Area)
Number of Other
Incentives,
Concessions,
Waivers, or Other
Modifications Given
to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the
incentives,
concessions,
waivers, and
modifications
(Excluding
Parking Waivers
or Parking
Modifications)
Did the project
receive a reduction or
waiver of parking
standards? (Y/N)
Notes+
0 NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y Other INC 55 Carriage Unit
NONE No Y Other INC 55 Carriage Unit
NONE No Y Other INC 55 Carriage Unit
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
NONE No Y
Density Bonus Housing with Financial Assistance
and/or Deed Restrictions Demolished/Destroyed Units
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Table A2
2 3 5 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low- Income
Deed
Restricted
Extremely
Low- Income
Non Deed
Restricted
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date Approved
# of Units
issued
Entitlements
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 14 14 026-643-006-000 161 Brunia Place Mills Ranch Specific
Plan B24-000259 SFD O 0
026-643-001-000 106 Boston Lane Mills Ranch Specific
Plan B24-000216 SFD O 0
026-643-005-000 154 Boston Lane Mills Ranch Specific
Plan B24-000222 SFD O 0
026-211-032-000 545 S Vanderhurst
Ave B23-000285 ADU O 0
026-651-038-000 702 Bikle Dr Arboleda Specific
Plan B24-000199 SFD O 0
026-613-029-000 409 Calcagno St B23-000167 ADU O 0
026-643-007-000 153 Brunia Place Mills Ranch Specific
Plan B24-000260 SFD O 0
026-651-040-000 706 Bikle Dr Arboleda Specific
Plan B24-000286 SFD O 0
026-643-013-000 105 Brunia Place Mills Ranch Specific
Plan B24-000266 SFD O 0
026-643-010-000 129 Brunia Place Mills Ranch Specific
Plan B24-000282 SFD O 0
026-643-011-000 121 Brunia Place Mills Ranch Specific
Plan B24-000264 SFD O 0
026-651-042-000 710 Bikle Dr Arboleda Specific
Plan B24-000283 SFD O 0
026-651-045-000 716 Bikle Dr Arboleda Specific
Plan B24-000278 SFD O 0
026-651-041-000 708 Bikle Dr Arboleda Specific
Plan B24-000284 SFD O 0
026-643-043-000 95 Carmona Dr Mills Ranch Specific
Plan B25-000071 SFD O 0
026-651-047-000 720 Bikle Dr Arboleda Specific
Plan B24-000275 SFD O 0
026-643-030-000 56 Boston Ln Mills Ranch Specific
Plan B25-000015 SFD O 0
026-643-031-000 76 Boston Ln Mills Ranch Specific
Plan B25-000018 SFD O 0
026-651-046-000 718 Bikle Dr Arboleda Specific
Plan B24-000276 SFD O 0
026-651-044-000 714 Bikle Dr Arboleda Specific
Plan B24-000280 SFD O 0
026-106-014-000 306 7th Street B24-000123 ADU R 0
026-643-033-000 86 Boston Ln Mills Ranch Specific
Plan B25-000019 SFD O 0
026-461-001-000 236 Rio Vista Dr B24-000015 SFD O 0
026-643-037-000 766 Livingston Ave Mills Ranch Specific Plan B25-000028 SFD O 0
026-643-031-000 66 Boston Ln Mills Ranch Specific
Plan B25-000017 SFD O 0
026-571-023-000 1203 Bluff CT B22-000258 ADU O 0
026-643-036-000 760 Livingston Ave Mills Ranch Specific Plan B25-000029 SFD O 0
026-643-034-000 96 Boston Ln Mills Ranch Specific
Plan B25-000031 SFD O 0
026-643-044-000 85 Carmona Dr Mills Ranch Specific
Plan B25-000072 SFD O 0
026-643-042-000 796 Livingston Ave Mills Ranch Specific Plan B25-000054 SFD O 0
026-643-035-000 754 Livingston Ave Mills Ranch Specific Plan B25-000030 SFD O 0
026-643-047-000 793 Aurora Way Mills Ranch Specific
Plan B25-000102 SFD O 0
026-643-040-000 784 Livingston Ave Mills Ranch Specific Plan B25-000053 SFD O 0
026-186-015-000 513 N Third St B24-000174 ADU R 0
026-643-046-000 65 Carmona Dr Mills Ranch Specific
Plan B25-000075 SFD O 0
026-643-045-000 75 Carmona Dr Mills Ranch Specific
Plan B25-000074 SFD O 0
026-643-038-000 772 Livingston Ave Mills Ranch Specific Plan B25-000050 SFD O 0
026-643-039-000 778 Livingston Ave Mills Ranch Specific Plan B25-000051 SFD O 0
026-643-048-000 789 Aurora Way Mills Ranch Specific
Plan B25-000103 SFD O 0
026-643-049-000 785 Aurora Way Mills Ranch Specific
Plan B25-000104 SFD O 0
026-343-051-000 773 Aurora Way Mills Ranch Specific
Plan B25-000105 SFD O 0
026-643-014-000 104 Brunia Pl Mills Ranch Specific
Plan B25-000137 SFD O 0
026-643-015-000 112 Brunia Pl Mills Ranch Specific
Plan B25-000139 SFD O 0
026-643-041-000 790 Livingston Ave Mills Ranch Specific Plan B25-000149 SFD O 0
026-643-050-000 779 Aurora Way Mills Ranch Specific
Plan B25-000151 SFD O 0
026-643-016-000 120 Brunia Pl Mills Ranch Specific
Plan B25-000140 SFD O 0
026-643-017-000 128 Brunia Pl Mills Ranch Specific
Plan B25-000142 SFD O 0
026-643-052-000 767 Aurora Way Mills Ranch Specific
Plan B25-000123 SFD O 0
026-643-053-000 761 Aurora Way Mills Ranch Specific
Plan B25-000125 SFD O 0
026-643-054-000 755 Aurora Way Mills Ranch Specific
Plan B25-000126 SFD O 0
026-643-055-000 749 Aurora Way Mills Ranch Specific
Plan B25-000128 SFD O 0
026-643-018-000 136 Brunia Pl Mills Ranch Specific
Plan B25-000225 SFD O 0
026-643-020-000 150 Brunia Pl Mills Ranch Specific
Plan B25-000228 SFD O 0
026-643-021-000 156 Brunia Pl Mills Ranch Specific
Plan B25-000230 SFD O 0
1 Unit Types Affordability by Household Incomes - Completed Entitlement 4 Project Identifier
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Cells in grey contain auto-calculation formulas
Note: "+" indicates an optional field
8 9 11 12
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome Non
Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of Occupancy
or other
forms of
readiness
0 0 0 0 0 0 0 0 0 0 50 50 0 0 0 0 0 0 3 0 0 0 54 57
0 1 3/31/2025 1
0 1 3/31/2025 1
0 1 3/31/2025 1
0 1 4/4/2025 1
0 1 4/22/2025 1
0 1 5/6/2025 1
0 1 5/9/2025 1
0 1 5/14/2025 1
0 1 5/27/2025 1
0 1 5/27/2025 1
0 1 5/28/2025 1
0 1 6/18/2025 1
1 1/29/2025 1 1 6/25/2025 1
0 1 6/25/2025 1
1 4/29/2025 1 1 8/26/2025 1
1 1/22/2025 1 1 7/11/2025 1
1 2/6/2025 1 1 7/15/2025 1
1 2/6/2025 1 1 7/16/2025 1
0 1 7/29/2025 1
1 1/30/2025 1 1 8/5/2025 1
0 1 8/5/2025 1
1 2/10/2025 1 1 8/7/2025 1
0 1 8/19/2025 1
1 3/4/2025 1 1 8/22/2025 1
1 2/6/2025 1 1 9/15/2025 1
0 1 9/16/2025 1
1 3/4/2025 1 1 9/26/2025 1
1 3/4/2025 1 1 10/20/2025 1
1 4/29/2025 1 1 10/20/2025 1
1 5/20/2025 1 1 11/6/2025 1
1 3/4/2025 1 1 11/6/2025 1
1 6/12/2025 1 1 12/5/2025 1
1 5/20/2025 1 1 12/5/2025 1
0 1 12/23/2025 1
1 4/14/2025 1 1 9/12/2025 1
1 4/29/2025 1 1 9/12/2025 1
1 5/20/2025 1 1 12/3/2025 1
1 5/20/2025 1 1 12/4/2025 1
1 6/12/2025 1 1 12/3/2025 1
1 6/12/2025 1 0
1 6/12/2025 1 0
1 7/17/2025 1 0
1 7/17/2025 1 0
1 7/22/2025 1 0
1 7/22/2025 1 0
1 7/23/2025 1 0
1 7/23/2025 1 0
1 8/27/2025 1 0
1 8/27/2025 1 0
1 9/30/2025 1 0
1 9/30/2025 1 0
1 11/14/2025 1 0
1 11/14/2025 1 0
1 11/17/2025 1 0
Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 7 10
Streamlining Historic Sites Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
13 14 15 16 17 18 19 20 21 22 23 24 25
Please select the
state
streamlining
provision the
project was

Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
97 - Moderate
97 63
178
5 -
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Acutely Low - -
*For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Total Units
*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):
- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected]. - All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress 178
Total RHNA
-
58 Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income category Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.

Extremely Low -
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 12/15/2023 - 12/15/2031
Date of
Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of
Rezone
Very LowIncome Low-Income ModerateIncome
Above
ModerateIncome
Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning
Minimum
Density
Allowed
Maximum
Density
Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C
Jurisdiction King City
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle
Status of
Program
Implementation
Program Implementation Details Quantified Outcomes:

Category
Quantified Outcomes:

Count Supporting Documents
Program 1: Emphasize Infill
Development
The City will identify and continue to encourage
the development of underutilized parcels in City
limits. Goal: Approval of 10 single family infill
units, 100 attached units and 20 units in
Mixed Use Buildings. Approve 5 ADUs in
Census Tract 113.03.
12/15/2026 6th Cycle In Progress
Encourage Mixed Use: Identify barriers to Mixed Use and the types of Mixed Use Development that is appropriate to the City of King. Amend Land Use Element and Development Regulations to allow density increase and mixed use in Opportunity Zones.

Encourage Small Lots and Utilize Irregular Lots: Work with local developers to identify workable small lot options. Identify existing lots that are underutilized and contact property owners to discuss options. Encourage ADU’s and second units by continuously updating pre-approved plans and ADU regulations, pursuing funding for ADU development on an annual basis, and modifying development standards for ADUs if peryear production is not being met at the halfway mark.

Increase Height Limits:

Revise Development Regulations to allow increased heights in “Opportunity Zones” by December 15, 2026.

Development Incentives:

Identify appropriate and achievable infill development incentives. Implement incentives.

Adequate Sewer and Water:

Communicate with Public Works / Sewer and Water Providers to introduce growth concepts, anticipated timing and infrastructure needs. Given the City is the wastewater provider, the City will establish a written procedure to grant priority service in accordance with State Law and implement immediately upon adoption.

Documentation and Reporting:

Document related actions and Update City Council semi-annually Units 83 Documents available at City Hall
Program 2: Provide Future Sites
for Residential Growth
Providing Additional Areas for Housing Goal:

Add potential for 50 market rate units and 50
affordable units to the Downtown Area. 12/15/2026 6th Cycle Not Yet Started Coordinate with Owners and Developers / Stakeholders: Identify and contact Owners and Developers to obtain information, introduce and coordinate the redevelopment effort(s). Areas for Farmworker and for Market Rate housing are anticipated to be separate.

Prepare Opportunity Zone Land Use and Zoning:

Prepare and process Land Use Element and Development Regulations Amendments.

Adequate Sewer and Water:

Communicate with Public Works / Sewer and Water Providers to introduce growth concepts, anticipated timing and infrastructure needs.

Documentation and Reporting:

Update Planning Commission and through the Amendments process.

Units None
Program 3: Provide Future
Housing Sites for Low Income
Residents
Expand potential locations for Agricultural
Employment Housing. Expand potential for
lower income housing in the Downtown Core.
12/15/2026 6th Cycle Continuous
Process LUE and Development Regulations Change: Prepare and implement Land Use Element and Development Regulations Amendments. Utilize Floor Area Ratio in lieu of density in the downtown area.

Other Documents available at City Hall
Program 4: Partner with
Development Community to
Create Affordable Housing
Coordinate and provide incentives to
encourage the production of affordable
housing. Coordinate efforts to match potential
developers and sites with funding resources.

Goal: Participate in application every other
year. Facilitate the construction of 75 Units
12/31/2031 6th Cycle Continuous
Identify Potential Funding Sources: Review federal, state and local programs. Identify potentially applicable programs.

Coordinate with Development Community: Identify and maintain regular contact with potential Affordable and Agricultural working housing developers – discuss available programs. Identify potential partners for housing for persons who are homeless and those serving people with disabilities by December 2025 and conduct outreach on an annual basis to discuss development opportunities and incentives.

Prepare Applications: Participate in application for funding as identified at least twice during the planning period while identifying potential funding sources on an ongoing basis (at least annually).

Documentation and Reporting: Provide Semi-annual update to Planning Commission regarding funding sources discussions, potential developers and potential funding.

Units None
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Program 5: Reduce Barriers to
Creating Multi-Family Housing
Remove barriers and amend Development
Code Regulations for multi-family housing. 12/31/2031 6th Cycle Continuous Identify Restrictions: Review current Land Use and Zoning Designations for restrictions to and opportunities for multi-family use and amend if constraints are identified, with the purpose of broadening and facilitating opportunities in the Downtown Corridor and at First Street / US 101.

Recommend Revisions: Present proposed revisions to Planning Commission.

Documentation and Reporting: Document research and upcoming recommendations to Planning Commission and Council semi-annually.

Other Documents available at City Hall
Program 6: Allow Mobile Homes
Compliance with State law / provision of lower
cost housing. Goal: Zoning Code Revision to
allow mobile / manufactured homes in Single
Family Residential Districts. Permit 5 mobile
homes in lower-density neighborhoods.
12/15/2026 6th Cycle In Progress
Review and Revise Code: Review Zoning Code (and General Plan) for hindrances including mobile/manufactured dwellings in Single Family Residential districts and Amend Code as directed. Documentation and Reporting: Prepare and present recommended revisions semi-annually.

Units None
Program 7: Enhance Code
Enforcement
Continue to work with the community to remedy
code violations. Goal: Assist the rehabilitation
of 5 non-agriculture housing units as well as
targeted code enforcement actions and
assistance for 30 agricultural housing units.
12/31/2031 6th Cycle Continuous
Enforcement: Identify existing enforcement regulations and their purpose, identify responsible staff with time required to perform enforcement duties, establish clear protocols for communicating with residents. Documentation and Reporting: Prepare information / Program and present to Planning Commission for approval. Document enforcement activities and identified needs from those activities Units None
Program 8: Zoning for a Variety of
Housing Types
Amend the City’s Zoning Ordinance as
described in the program. Goal: Ensure
consistency with State housing laws,
conserve 10 units through more secure
zoning.
12/15/2026 6th Cycle In Progress
Program: Review and amend Zoning Ordinance. Provide findings to Planning Commission, upon direction prepare appropriate Zoning Text revisions. Documentation and Reporting: Report to Planning Commission and City Council.

Units Draft Ordinance at City Hall
Program 9: Fair Housing Program
Provide Fair Housing information to tenants and
landlords at regular intervals. Goal: Create
understanding of compliance / respect for
Fair Housing Standards. Assist 25
households at risk of displacement through
the multi-pronged outreach approach,
including production, preservation, and
renter protections.
12/31/2031 6th Cycle Continuous
Program: Obtain and disseminate information from US Department of Housing and Urban Development (HUD) and California Department of Fair Employment and Housing (DFEH). The materials will be provided in Spanish and English and will be published on the City’s website, in the City Manager’s newsletter and in utility bills. Documentation and Reporting: Provide Semi-Annual updates to Planning Commission on status / success of communications.

Other None
Program 10: Reasonable
Accommodation Ordinance
Ensure Reasonable Accommodation
Procedures in City review and approval of
accommodations for persons with disabilities.
12/15/2026 6th Cycle In Progress
Program: Review current procedures, prepare recommendations for Planning Commission, receive direction, prepare and present Ordinance to Commission and Council and amend existing regulations as appropriate. Documentation and Reporting:

Document progress and provide Semi-Annual updates to Planning Commission.

Other Draft Ordinance at City Hall
Program 11: Universal Design
Provide homes in new developments that are
capable of accommodating residents throughout
life as their physical capabilities change. Goal:

Include homes with Universal Design
features in each new development.
12/31/2031 6th Cycle Continuous
Program: Meet with homebuilders. Identify barriers to Universal Design and potential solutions that the City can participate in. Documentation and Reporting: Present concept / Program to Planning Commission, present examples that define Universal Design. Meet with Development Community to discuss potential. Document research and discussions and update discussions Semi-Annually.

Other None
Program 12: Efficient Land Use
Amend Land Use Element to include three
Opportunity Zones. Amend Development
Regulations to allow increased density and
intensity. Goal: “Refreshed“ General Plan
that guides efficient use of resources and
land.
12/15/2025 6th Cycle In Progress
Program: Continue discussions with Planning Commission. Prepare Land Use Plan and Development Regulations as directed. Documentation and Reporting:

After public review, present amendments to Planning Commission and City Council for approval.

Other Draft LUE at City Hall
Program 13: Smart Planning
Incentives
Increase applications for Smart Planning Funds.

Goal: 20 Units to receive funds for
Affordable Housing / Smart Planning.
12/31/2031 6th Cycle Continuous
Program: Prepare and present proposed Program to City Manager and Planning Commission to improve competitiveness. Identify sources of funding and ways to support applications. Documentation and Reporting: Document actions / progress and update Planning Commission Semi-Annually.

Meetings None
Program 14: Energy Efficient
Housing
Establish energy efficiency in older homes/new
construction as standard practices in the City.

Goal: The City shall connect at least 25 pre1990’s homes with information regarding energy efficient housing and relevant
retrofits.
12/31/2031 6th Cycle Continuous
Program: Prepare and present proposed Program to City Manager and Planning Commission. Identify sources of funding for energy retrofits and provide informational support to contractors and homeowners using Website and Manager’s Newsletter.

Documentation and Reporting:

Document actions / progress and update Planning Commission Semi-Annually.

Other None
Program 15: Energy and Water
Conservation
Reduce residential (and commercial) water use
in conformance with State Guidelines and
reduce the overall energy usage in the City.

Goal: Reduce water and energy usage to
levels below state requirements. Achieve
culture of efficiency / conservation. Assist
50 households and commercial enterprises
with water conservation strategies, as
identified in the CalWater Urban Water
Management Plans.
12/31/2031 6th Cycle Continuous
Program: Work with CalWater to Identify and address City inefficiencies in water use / transport. Explore any system upgrades that additional units in the Downtown Core may require. Documentation and Reporting:

Review and Implement most recent CalWater Urban Water Management Plans. Define specific Policy regarding property owner well drilling. Document discussions with business owners / developers. Update Planning Commission Annually.

Other None
Program 16: Green / Sustainable
Building
Achieve increased energy efficiency /
sustainability in all new projects. Goal: Review
General Plan, Zoning Ordinance,
Subdivision Regulations, Design Guidelines
to identify potential updates direction
regarding “green and sustainable” growth.
12/31/2031 6th Cycle Continuous
Program: Prepare and present proposed Program to City Manager and Planning Commission. Review existing policy and regulatory documents to include “green and sustainable” guidance / standards. Include policy regarding electric recharge stations.

Present proposed changes to City Manager and Planning Commission. Make changes as directed and present for approval. Documentation and Reporting: Document and Update Progress on Annual basis.

Other None
Program 17: Improve Access to
Resources
Promote place-based strategies for community
revitalization. Goal: One improvement to
improve transit access; generally, one
improvement a year aimed at place-based
revitalization in areas of elevated
displacement risk; two members from areas
of elevated displacement risk on boards,
committees.
12/31/2031 6th Cycle Continuous Documentation and Reporting: Document and Update Progress on Annual basis. Other None Program 18: Housing Mobility
Promote housing mobility throughout the
community; in addition to 70 ADUs to meet
RHNA, target an additional 15 units specifically
for lower-income homeowners. Goal: Focus at
least 50% of ADUs in areas of relative higher
opportunity (35 ADUs). Provide additional
incentives for lower-income homeowners to
support 15 ADU developments.
12/31/2031 6th Cycle Continuous Documentation and Reporting: Document and Update Progress on Annual basis. Units 13 ADU Permit records available at City Hall Program 19: Prevention of AtRisk Housing Units
Preserve 84 housing units from converting to
non-low-income uses. Goal: Preserving the
existing affordable housing stock is a costeffective approach to providing affordable housing in King City. The City must guard
against the loss of housing units available
to lower-income households. There are 84
units at-risk of converting to non-lowincome uses during the planning period. 12/31/2031 6th Cycle Continuous Documentation and Reporting: Document and Update Progress on Annual basis. Meetings None Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning 6th Cycle 12/15/2023 - 12/15/2031
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus Date
Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 12/15/2023 - 12/15/2031
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.

For detailed reporting requirements, see the
chcklist here:

Extremely LowIncome+
Very LowIncome+ Low-Income+ TOTAL UNITS+Extremely LowIncome+Very LowIncome+ Low-Income+TOTAL UNITS+
https://www.hcd.ca.gov/communitydevelopment/docs/adequate-sites-checklist.pdf Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an
optional field
Reporting
Period 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
Jurisdiction King City
Reporting
Period 2025
(Jan. 1 - Dec.
31)
Period 6th Cycle 12/15/2023 - 12/15/2031 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
Jurisdiction King City Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
NOTE: This table must contain an inventory of
ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Project Type Date
Units
(Beds/Student
Capacity) Granted
Notes
2 3 5 6
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SH - Student
Housing)
Date
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total Additional
Beds Created Due
to Density Bonus
Notes
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government Code65915(b)(1)(F)
Annual Progress Report January 2020
Jurisdiction King City ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2025 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 12/15/2023 - 12/15/2031
No
Table K
Tenant Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational.

Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.

Notes
Jurisdiction King City Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Size Notes
3 4
APN Street Address/Intersection Date of
Designation
Designation
Level
Historic Site
Period
Areas of
Significance
Parcel Size (in
acres) Notes
Summary Row:

NOTE: This table needs to be completed with any sites within your jurisdiction that were newly added to a National, State, or Local register of historic places within the reporting year. If none, leave blank.

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table L
Historical Resources
Parcel Identifier
1 Designation
2 Jurisdiction King City
Reporting Year 2025 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.

Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes
Update the 6th Cycle (2023-2031)
of the City's Housing Element of the
General Plan
$65,000.00 $65,000.00 REAP
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
14 14
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
50 50
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 3
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
54 57
Acutely Low
Extremely Low
Acutely Low
Extremely Low

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable. $ 65,000.00
Task Status
Completed
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Acutely Low
Extremely Low

King City City CouncilMarch 24, 2026

King City City Council
March 24, 2026