Agenda packet — Lancaster City Council, February 24, 2026 (part 4 of 5)

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
214 4100 21441000 5103 OVER-TIME SALARIES E - - - 90,249.37 - - - 214 4100 21441000 5104 TEMPORARY SALARIES E - - - 57,326.83 - - - 214 4100 21441000 5201 HEALTH/DENTAL INSURANCE E 854,322.13 - 854,322.13 443,925.72 - - 854,322.13 214 4100 21441000 5202 LIFE INSURANCE E 4,080.02 - 4,080.02 2,154.17 - - 4,080.02 214 4100 21441000 5203 ACCIDENTAL DEATH DISMEMBER E 931.31 - 931.31 491.47 - - 931.31 214 4100 21441000 5204 LT/ST DISABILITY E 11,718.27 - 11,718.27 6,043.31 - - 11,718.27 214 4100 21441000 5205 FICA/MEDICARE E 42,683.26 - 42,683.26 26,090.73 - - 42,683.26 214 4100 21441000 5206 CALPERS RETIREMENT E 924,764.62 - 924,764.62 514,948.72 - - 924,764.62 214 4100 21441000 5208 WORKERS' COMPENSATION E 128,873.77 - 128,873.77 72,954.40 - - 128,873.77 214 4100 21441000 5209 DEFERRED COMPENSATION E 142,558.05 - 142,558.05 76,421.82 - - 142,558.05 214 4100 21441000 5211 RETIREE HEALTH SAVINGS E 69,501.18 - 69,501.18 37,452.01 - - 69,501.18 214 4100 21441000 5212 UNEMPLOYMENT E 11,774.69 - 11,774.69 7,257.92 - - 11,774.69 214 4100 21441000 5310 OPERATING MATERIALS & SUPPLIES E 1,000.00 3,539.30 4,539.30 4,509.65 - - 4,539.30 214 4100 21441000 5314 FUEL E 177,208.85 - 177,208.85 77,413.80 - - 177,208.85 214 4100 21441000 5315 UNIFORMS E 9,625.00 9,690.91 19,315.91 11,829.34 - - 19,315.91 214 4100 21441000 5321 VEHICLE OPERATIONS E 1,314,932.29 - 1,314,932.29 767,043.84 - - 1,314,932.29 214 4100 21441000 5324 ILLEGAL DUMPING E 42,788.00 (3,807.28) 38,980.72 10,102.70 2,684.82 - 38,980.72 214 4100 21441000 5325 ASPHALT OPERATIONS E 117,549.00 (98.00) 117,451.00 76,239.45 30,786.02 - 117,451.00 214 4100 21441000 5326 CONCRETE OPERATIONS E 155,850.00 (2,302.91) 153,547.09 67,673.36 48,093.50 - 153,547.09 214 4100 21441000 5327 HEAVY EQUIPMENT OPERATIONS E 15,780.00 (4,443.66) 11,336.34 3,012.29 1,000.00 - 11,336.34 214 4100 21441000 5328 PARKWAY OPERATIONS E 107,436.00 (8,174.72) 99,261.28 6,859.09 28,710.61 - 99,261.28 214 4100 21441000 5330 RENTALS/LEASES E 20,000.00 (3,250.00) 16,750.00 - - - 16,750.00 214 4100 21441000 5350 NON-CAPITAL EQUIPMENT E - 1,500.00 1,500.00 1,289.34 - - 1,500.00 214 4100 21441000 5400 DUES & MEMBERSHIPS E 2,850.00 250.00 3,100.00 2,884.45 - - 3,100.00 214 4100 21441000 5413 GOVERNMENT FEES/LICENSES E 436.00 98.00 534.00 447.34 - - 534.00 214 4100 21441000 5710 PROFESSIONAL/TECHNICAL SERVICE E 251,339.00 - 251,339.00 8,032.00 118,787.33 - 251,339.00 214 4100 21441000 5790 REPAIR & MAINTENANCE SERVICES E - 804.00 804.00 - - - 804.00 214 4100 21441000 5793 EMERGENCY DAMAGE REPAIRS E 104,228.00 - 104,228.00 61,408.48 15,560.52 - 104,228.00 214 4100 21441000 5900 MEETINGS & CONFERENCES E 23,649.00 (7,500.00) 16,149.00 2,256.00 - - 16,149.00 214 4100 21441000 5910 TRAVEL/MILEAGE REIMBURSEMENT E - 7,500.00 7,500.00 4,802.02 - - 7,500.00 214 4100 21441000 5912 BOOT/PANT REIMBURSEMENT E 7,200.00 5,100.00 12,300.00 11,624.14 - - 12,300.00 214 4100 21441000 5920 TRAINING E 23,511.00 - 23,511.00 15,100.95 392.00 - 23,511.00 214 4100 21441000 8000 CAPITAL IMPROVEMENT E - 281,308.72 281,308.72 17,380.49 - - 281,308.72 214 4100 21441000 8100 FURNITURE & EQUIPMENT E - 1,898.36 1,898.36 1,898.36 - - 1,898.36 214 4200 21442000 5101 FULL-TIME SALARIES E 93,927.02 - 93,927.02 57,458.94 - - 93,927.02 214 4200 21442000 5103 OVER-TIME SALARIES E - - - 408.03 - - - 214 4200 21442000 5201 HEALTH/DENTAL INSURANCE E 21,586.14 - 21,586.14 12,774.19 - - 21,586.14 214 4200 21442000 5202 LIFE INSURANCE E 103.70 - 103.70 60.94 - - 103.70 214 4200 21442000 5203 ACCIDENTAL DEATH DISMEMBER E 23.67 - 23.67 13.86 - - 23.67 214 4200 21442000 5204 LT/ST DISABILITY E 386.04 - 386.04 225.08 - - 386.04 214 4200 21442000 5205 FICA/MEDICARE E 1,361.94 - 1,361.94 909.40 - - 1,361.94 214 4200 21442000 5206 CALPERS RETIREMENT E 30,450.50 - 30,450.50 18,709.96 - - 30,450.50 214 4200 21442000 5208 WORKERS' COMPENSATION E 4,114.00 - 4,114.00 2,793.56 - - 4,114.00 214 4200 21442000 5209 DEFERRED COMPENSATION E 4,696.35 - 4,696.35 2,887.98 - - 4,696.35 214 4200 21442000 5211 RETIREE HEALTH SAVINGS E 472.50 - 472.50 277.53 - - 472.50 214 4200 21442000 5212 UNEMPLOYMENT E 375.71 - 375.71 255.54 - - 375.71 214 4200 21442000 5310 OPERATING MATERIALS & SUPPLIES E 40,000.00 - 40,000.00 99.01 - - 40,000.00 214 4200 21442000 5314 FUEL E 15,825.51 - 15,825.51 3,497.75 - - 15,825.51 214 4200 21442000 5315 UNIFORMS E 5,000.00 - 5,000.00 - - - 5,000.00 214 4200 21442000 5321 VEHICLE OPERATIONS E 115,232.63 - 115,232.63 67,219.03 - - 115,232.63 214 4200 21442000 5793 EMERGENCY DAMAGE REPAIRS E 81,094.00 - 81,094.00 21,763.70 21,334.09 - 81,094.00 214 4200 21442000 5794 MARKING AND STRIPING E 100,289.00 (1,200.00) 99,089.00 1,333.72 22,863.85 - 99,089.00 214 4200 21442000 5795 TRAFFIC SIGNAGE E 99,083.00 (1,800.00) 97,283.00 40,867.88 34,638.55 - 97,283.00 214 4200 21442000 5910 TRAVEL/MILEAGE REIMBURSEMENT E - 630.00 630.00 615.86 - - 630.00 214 4200 21442000 5912 BOOT/PANT REIMBURSEMENT E - 1,800.00 1,800.00 365.46 - - 1,800.00 214 4200 21442000 5920 TRAINING E - 570.00 570.00 570.00 - - 570.00 214 4300 21443000 5103 OVER-TIME SALARIES E 21,440.00 - 21,440.00 2,783.46 - - 21,440.00 214 4300 21443000 5104 TEMPORARY SALARIES E 20,000.00 - 20,000.00 9,413.75 - - 20,000.00 214 4300 21443000 5201 HEALTH/DENTAL INSURANCE E - - - 549.28 - - - 214 4300 21443000 5202 LIFE INSURANCE E - - - 2.41 - - - 214 4300 21443000 5203 ACCIDENTAL DEATH DISMEMBER E - - - 0.56 - - - 214 4300 21443000 5204 LT/ST DISABILITY E - - - 6.12 - - -

Page 30 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
214 4300 21443000 5205 FICA/MEDICARE E - - - 176.75 - - - 214 4300 21443000 5206 CALPERS RETIREMENT E - - - 604.60 - - - 214 4300 21443000 5208 WORKERS' COMPENSATION E - - - 494.08 - - - 214 4300 21443000 5209 DEFERRED COMPENSATION E - - - 91.85 - - - 214 4300 21443000 5211 RETIREE HEALTH SAVINGS E - - - 46.97 - - - 214 4300 21443000 5212 UNEMPLOYMENT E - - - 48.79 - - - 214 4300 21443000 5710 PROFESSIONAL/TECHNICAL SERVICE E 22,700.00 70.00 22,770.00 9,000.00 12,600.00 - 22,770.00 214 4400 21444000 8200 VEHICLES E - 17,487.92 17,487.92 17,487.92 (17,487.92) - 17,487.92 214 4500 21445000 5314 FUEL E 24,658.35 - 24,658.35 1,927.30 - - 24,658.35 214 4500 21445000 5321 VEHICLE OPERATIONS E 171,568.57 - 171,568.57 100,081.67 - - 171,568.57 214 4700 21447000 5101 FULL-TIME SALARIES E - - - 4,372.37 - - - 214 4700 21447000 5104 TEMPORARY SALARIES E 52,981.00 - 52,981.00 20,484.64 - - 52,981.00 214 4700 21447000 5201 HEALTH/DENTAL INSURANCE E - - - 663.34 - - - 214 4700 21447000 5202 LIFE INSURANCE E - - - 4.15 - - - 214 4700 21447000 5203 ACCIDENTAL DEATH DISMEMBER E - - - 0.95 - - - 214 4700 21447000 5204 LT/ST DISABILITY E - - - 15.38 - - - 214 4700 21447000 5205 FICA/MEDICARE E - - - 354.89 - - - 214 4700 21447000 5206 CALPERS RETIREMENT E - - - 1,416.21 - - - 214 4700 21447000 5208 WORKERS' COMPENSATION E - - - 1,088.73 - - - 214 4700 21447000 5209 DEFERRED COMPENSATION E - - - 218.62 - - - 214 4700 21447000 5211 RETIREE HEALTH SAVINGS E - - - 90.49 - - - 214 4700 21447000 5212 UNEMPLOYMENT E - - - 99.44 - - - 214 4990 21449900 8000 CAPITAL IMPROVEMENT E - 2,796.50 2,796.50 - - - 2,796.50 214 8000 21480000 6999 INTER-FUND TRANSFERS OUT E 25,508.44 - 25,508.44 - - - 25,508.44 215 4500 21545000 5101 FULL-TIME SALARIES E 357,857.37 - 357,857.37 80,452.57 - - 357,857.37 215 4500 21545000 5103 OVER-TIME SALARIES E - - - 1,550.96 - - - 215 4500 21545000 5106 SALARIES (OFFSET) E (136,061.67) - (136,061.67) - - - (136,061.67) 215 4500 21545000 5201 HEALTH/DENTAL INSURANCE E 115,799.43 - 115,799.43 17,072.38 - - 115,799.43 215 4500 21545000 5202 LIFE INSURANCE E 476.17 - 476.17 105.92 - - 476.17 215 4500 21545000 5203 ACCIDENTAL DEATH DISMEMBER E 108.69 - 108.69 24.16 - - 108.69 215 4500 21545000 5204 LT/ST DISABILITY E 1,470.79 - 1,470.79 285.59 - - 1,470.79 215 4500 21545000 5205 FICA/MEDICARE E 5,188.93 - 5,188.93 1,190.96 - - 5,188.93 215 4500 21545000 5206 CALPERS RETIREMENT E 116,014.92 - 116,014.92 25,721.69 - - 116,014.92 215 4500 21545000 5208 WORKERS' COMPENSATION E 15,674.15 - 15,674.15 3,478.19 - - 15,674.15 215 4500 21545000 5209 DEFERRED COMPENSATION E 17,893.45 - 17,893.45 3,970.55 - - 17,893.45 215 4500 21545000 5211 RETIREE HEALTH SAVINGS E 8,925.00 - 8,925.00 2,071.13 - - 8,925.00 215 4500 21545000 5212 UNEMPLOYMENT E 1,431.43 - 1,431.43 328.03 - - 1,431.43 215 4500 21545000 5216 FRINGE BENEFITS (OFFSET) E (108,689.17) - (108,689.17) - - - (108,689.17) 215 4990 21549900 5101 FULL-TIME SALARIES E - - - 23,618.12 - - - 215 4990 21549900 5104 TEMPORARY SALARIES E - - - 878.88 - - - 215 4990 21549900 5201 HEALTH/DENTAL INSURANCE E - - - 5,256.57 - - - 215 4990 21549900 5202 LIFE INSURANCE E - - - 32.04 - - - 215 4990 21549900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 7.33 - - - 215 4990 21549900 5204 LT/ST DISABILITY E - - - 93.83 - - - 215 4990 21549900 5205 FICA/MEDICARE E - - - 353.13 - - - 215 4990 21549900 5206 CALPERS RETIREMENT E - - - 7,649.91 - - - 215 4990 21549900 5208 WORKERS' COMPENSATION E - - - 1,072.99 - - - 215 4990 21549900 5209 DEFERRED COMPENSATION E - - - 1,180.90 - - - 215 4990 21549900 5211 RETIREE HEALTH SAVINGS E - - - 705.64 - - - 215 4990 21549900 5212 UNEMPLOYMENT E - - - 97.98 - - - 215 4990 21549900 8000 CAPITAL IMPROVEMENT E 380,516.00 8,614,813.45 8,995,329.45 1,022,828.85 198,216.24 4,324,246.00 13,319,575.45 CP12ST059.CONST.. 215 4990 21549900 8000 CAPITAL IMPROVEMENT E - - - - - 37,750.00 37,750.00 CP12ST057.CONST.. 216 4990 21649900 8000 CAPITAL IMPROVEMENT E - 211,016.34 211,016.34 - - (211,016.34) - CP12ST053.CONST.. 217 1900 21719000 6203 ADMINISTRATIVE OVERHEAD E 7,649.00 - 7,649.00 4,461.92 - - 7,649.00 217 1900 21719000 6999 INTER-FUND TRANSFERS OUT E 9,768,029.00 - 9,768,029.00 - - (2,545,818.00) 7,222,211.00 217 4990 21749900 5101 FULL-TIME SALARIES E - - - 12,714.78 - - - 217 4990 21749900 5201 HEALTH/DENTAL INSURANCE E - - - 1,977.58 - - - 217 4990 21749900 5202 LIFE INSURANCE E - - - 14.55 - - - 217 4990 21749900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 3.35 - - - 217 4990 21749900 5204 LT/ST DISABILITY E - - - 53.65 - - - 217 4990 21749900 5205 FICA/MEDICARE E - - - 184.21 - - - 217 4990 21749900 5206 CALPERS RETIREMENT E - - - 4,118.39 - - -

Page 31 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
217 4990 21749900 5208 WORKERS' COMPENSATION E - - - 556.93 - - - 217 4990 21749900 5209 DEFERRED COMPENSATION E - - - 635.76 - - - 217 4990 21749900 5211 RETIREE HEALTH SAVINGS E - - - 290.71 - - - 217 4990 21749900 5212 UNEMPLOYMENT E - - - 50.89 - - - 217 4990 21749900 8000 CAPITAL IMPROVEMENT E - 1,138,440.09 1,138,440.09 9,839.03 61,711.35 (1,128,600.97) 9,839.12 CP15ST083.CONST.. 218 1900 21819000 5400 DUES & MEMBERSHIPS E - 40,000.00 40,000.00 31,000.00 - - 40,000.00 218 1900 21819000 5710 PROFESSIONAL/TECHNICAL SERVICE E 2,208,946.00 - 2,208,946.00 1,945,973.75 - - 2,208,946.00 218 1900 21819000 6203 ADMINISTRATIVE OVERHEAD E 59,354.00 - 59,354.00 34,623.17 - - 59,354.00 218 4100 21841000 5710 PROFESSIONAL/TECHNICAL SERVICE E 94,126.00 - 94,126.00 76,371.12 17,754.88 - 94,126.00 218 4990 21849900 5101 FULL-TIME SALARIES E - - - 14,717.88 - - - 218 4990 21849900 5104 TEMPORARY SALARIES E - - - (2.20) - - - 218 4990 21849900 5201 HEALTH/DENTAL INSURANCE E - - - 3,177.39 - - - 218 4990 21849900 5202 LIFE INSURANCE E - - - 15.83 - - - 218 4990 21849900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 3.63 - - - 218 4990 21849900 5204 LT/ST DISABILITY E - - - 58.60 - - - 218 4990 21849900 5205 FICA/MEDICARE E - - - 213.02 - - - 218 4990 21849900 5206 CALPERS RETIREMENT E - - - 4,764.85 - - - 218 4990 21849900 5208 WORKERS' COMPENSATION E - - - 644.56 - - - 218 4990 21849900 5209 DEFERRED COMPENSATION E - - - 735.90 - - - 218 4990 21849900 5211 RETIREE HEALTH SAVINGS E - - - 250.42 - - - 218 4990 21849900 5212 UNEMPLOYMENT E - - - 58.85 - - - 218 4990 21849900 8000 CAPITAL IMPROVEMENT E - 8,981,948.09 8,981,948.09 1,938,547.11 (1,938,547.11) - 8,981,948.09 218 6230 21862300 5656 GRANT EXPENSE E - 80,000.00 80,000.00 3,600.00 - - 80,000.00 218 6300 21863000 5104 TEMPORARY SALARIES E 54,600.00 - 54,600.00 12,472.07 - - 54,600.00 218 6300 21863000 5205 FICA/MEDICARE E - - - 176.89 - - - 218 6300 21863000 5206 CALPERS RETIREMENT E - - - 360.51 - - - 218 6300 21863000 5208 WORKERS' COMPENSATION E - - - 546.26 - - - 218 6300 21863000 5212 UNEMPLOYMENT E - - - 49.87 - - - 218 6300 21863000 5310 OPERATING MATERIALS & SUPPLIES E 7,760.00 - 7,760.00 - - - 7,760.00 218 6300 21863000 5790 REPAIR & MAINTENANCE SERVICES E 233,760.00 84,372.67 318,132.67 123,672.24 (61,793.31) - 318,132.67 218 6990 21869900 8000 CAPITAL IMPROVEMENT E - 108,646.50 108,646.50 20,805.30 603.27 - 108,646.50 220 4990 22049900 5101 FULL-TIME SALARIES E - - - 98,305.28 - - - 220 4990 22049900 5201 HEALTH/DENTAL INSURANCE E - - - 16,535.33 - - - 220 4990 22049900 5202 LIFE INSURANCE E - - - 101.28 - - - 220 4990 22049900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 23.09 - - - 220 4990 22049900 5204 LT/ST DISABILITY E - - - 369.36 - - - 220 4990 22049900 5205 FICA/MEDICARE E - - - 1,421.21 - - - 220 4990 22049900 5206 CALPERS RETIREMENT E - - - 31,838.97 - - - 220 4990 22049900 5208 WORKERS' COMPENSATION E - - - 4,305.83 - - - 220 4990 22049900 5209 DEFERRED COMPENSATION E - - - 4,911.00 - - - 220 4990 22049900 5211 RETIREE HEALTH SAVINGS E - - - 2,001.78 - - - 220 4990 22049900 5212 UNEMPLOYMENT E - - - 393.23 - - - 220 4990 22049900 8000 CAPITAL IMPROVEMENT E - 19,749,069.89 19,749,069.89 1,595,346.04 1,257,954.81 (3,413,856.84) 16,335,213.05 CP15ST058.CONST.. 222 4990 22249900 8000 CAPITAL IMPROVEMENT E - 60,443.94 60,443.94 - - (60,443.94) - CP15ST082.CONST.. 224 4500 22445000 5104 TEMPORARY SALARIES E 71,030.00 (3,500.00) 67,530.00 13,565.22 - - 67,530.00 224 4500 22445000 5205 FICA/MEDICARE E - - - 196.68 - - - 224 4500 22445000 5206 CALPERS RETIREMENT E - - - 2,480.85 - - - 224 4500 22445000 5208 WORKERS' COMPENSATION E - - - 594.13 - - - 224 4500 22445000 5212 UNEMPLOYMENT E - - - 54.27 - - - 224 4500 22445000 5656 GRANT EXPENSE E 47,279.48 326,996.88 374,276.36 143,521.78 47,934.52 24,131.00 398,407.36 225 1900 22519000 6203 ADMINISTRATIVE OVERHEAD E 4,462.00 - 4,462.00 2,602.83 - - 4,462.00 225 4990 22549900 8000 CAPITAL IMPROVEMENT E - 7,651.25 7,651.25 - - - 7,651.25 225 8000 22580000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 1,540.00 - 1,540.00 1,540.00 225 8000 22580000 6999 INTER-FUND TRANSFERS OUT E 1,079,620.00 - 1,079,620.00 - - - 1,079,620.00 227 4990 22749900 8000 CAPITAL IMPROVEMENT E - 80,697.53 80,697.53 - - - 80,697.53 230 2000 23020070 5656 GRANT EXPENSE E - 470,114.71 470,114.71 - (356,697.47) - 470,114.71 230 2200 23022000 5656 GRANT EXPENSE E - 8,569,564.16 8,569,564.16 151,643.00 519,569.78 - 8,569,564.16 230 3000 23030000 5101 FULL-TIME SALARIES E - 139,048.00 139,048.00 1,313.49 - - 139,048.00 230 3000 23030000 5104 TEMPORARY SALARIES E - 36,847.30 36,847.30 251.21 - - 36,847.30 230 3000 23030000 5205 FICA/MEDICARE E - - - 22.70 - - - 230 3000 23030000 5206 CALPERS RETIREMENT E - - - 425.78 - - - 230 3000 23030000 5208 WORKERS' COMPENSATION E - - - 68.52 - - -

Page 32 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
230 3000 23030000 5212 UNEMPLOYMENT E - - - 6.25 - - - 230 3000 23030000 5214 FRINGE BENEFITS E - 108,489.70 108,489.70 - - - 108,489.70 230 3000 23030000 5656 GRANT EXPENSE E - 172,382.07 172,382.07 13,966.12 2,483.66 - 172,382.07 230 3000 23030000 8100 FURNITURE & EQUIPMENT E - 104,816.00 104,816.00 1,647.04 64,816.19 - 104,816.00 230 4700 23047000 5656 GRANT EXPENSE E - 599,977.70 599,977.70 - 356,696.60 - 599,977.70 230 4990 23049900 5101 FULL-TIME SALARIES E - - - 47,489.06 - - - 230 4990 23049900 5201 HEALTH/DENTAL INSURANCE E - - - 6,959.76 - - - 230 4990 23049900 5202 LIFE INSURANCE E - - - 49.58 - - - 230 4990 23049900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 11.34 - - - 230 4990 23049900 5204 LT/ST DISABILITY E - - - 183.38 - - - 230 4990 23049900 5205 FICA/MEDICARE E - - - 685.91 - - - 230 4990 23049900 5206 CALPERS RETIREMENT E - - - 15,376.13 - - - 230 4990 23049900 5208 WORKERS' COMPENSATION E - - - 2,080.01 - - - 230 4990 23049900 5209 DEFERRED COMPENSATION E - - - 2,374.51 - - - 230 4990 23049900 5211 RETIREE HEALTH SAVINGS E - - - 1,053.37 - - - 230 4990 23049900 5212 UNEMPLOYMENT E - - - 189.94 - - - 230 4990 23049900 8000 CAPITAL IMPROVEMENT E - 19,874,351.59 19,874,351.59 180,510.27 38,724.34 (2,074,016.97) 17,800,334.62 CP16ST035 .CONST . . 230 6990 23069900 8000 CAPITAL IMPROVEMENT E - 7,174.48 7,174.48 - - - 7,174.48 300 2200 30022000 5656 GRANT EXPENSE E - 2,454,186.00 2,454,186.00 - - - 2,454,186.00 300 4990 30049900 5101 FULL-TIME SALARIES E - - - 31,674.70 - - - 300 4990 30049900 5201 HEALTH/DENTAL INSURANCE E - - - 6,180.38 - - - 300 4990 30049900 5202 LIFE INSURANCE E - - - 35.11 - - - 300 4990 30049900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 8.05 - - - 300 4990 30049900 5204 LT/ST DISABILITY E - - - 129.78 - - - 300 4990 30049900 5205 FICA/MEDICARE E - - - 450.82 - - - 300 4990 30049900 5206 CALPERS RETIREMENT E - - - 10,260.35 - - - 300 4990 30049900 5208 WORKERS' COMPENSATION E - - - 1,387.35 - - - 300 4990 30049900 5209 DEFERRED COMPENSATION E - - - 1,583.75 - - - 300 4990 30049900 5211 RETIREE HEALTH SAVINGS E - - - 120.64 - - - 300 4990 30049900 5212 UNEMPLOYMENT E - - - 126.69 - - - 300 4990 30049900 8000 CAPITAL IMPROVEMENT E - 4,287,829.34 4,287,829.34 136,947.93 (136,947.93) (1,500,000.00) 2,787,829.34 CP15SW016 .CONST . . 300 6000 30060000 5656 GRANT EXPENSE E - 103,241.00 103,241.00 - - - 103,241.00 300 6990 30069900 8000 CAPITAL IMPROVEMENT E - 2,460,097.00 2,460,097.00 - - - 2,460,097.00 310 2200 31022000 5656 GRANT EXPENSE E 1,582,198.00 3,006,134.80 4,588,332.80 807,571.70 898,482.92 - 4,588,332.80 310 4990 31049900 8000 CAPITAL IMPROVEMENT E - 1,451,975.72 1,451,975.72 - - - 1,451,975.72 312 2200 31222000 6999 INTER-FUND TRANSFERS OUT E - 2,156,001.00 2,156,001.00 2,156,001.00 - - 2,156,001.00 313 2200 31322000 5656 GRANT EXPENSE E 656,727.00 560,232.59 1,216,959.59 - - - 1,216,959.59 314 2200 31422000 5101 FULL-TIME SALARIES E 259,864.67 - 259,864.67 150,192.73 - - 259,864.67 314 2200 31422000 5104 TEMPORARY SALARIES E 30,000.00 - 30,000.00 (48.08) - - 30,000.00 314 2200 31422000 5201 HEALTH/DENTAL INSURANCE E 40,006.23 - 40,006.23 23,176.33 - - 40,006.23 314 2200 31422000 5202 LIFE INSURANCE E 286.89 - 286.89 141.10 - - 286.89 314 2200 31422000 5203 ACCIDENTAL DEATH DISMEMBER E 65.49 - 65.49 32.14 - - 65.49 314 2200 31422000 5204 LT/ST DISABILITY E 2,244.92 - 2,244.92 697.03 - - 2,244.92 314 2200 31422000 5205 FICA/MEDICARE E 3,768.04 - 3,768.04 3,084.07 - - 3,768.04 314 2200 31422000 5206 CALPERS RETIREMENT E 84,246.36 - 84,246.36 51,176.42 - - 84,246.36 314 2200 31422000 5208 WORKERS' COMPENSATION E 11,382.07 - 11,382.07 8,799.51 - - 11,382.07 314 2200 31422000 5209 DEFERRED COMPENSATION E 21,133.57 - 21,133.57 7,870.13 - - 21,133.57 314 2200 31422000 5211 RETIREE HEALTH SAVINGS E 7,831.14 - 7,831.14 3,858.03 - - 7,831.14 314 2200 31422000 5212 UNEMPLOYMENT E 1,039.46 - 1,039.46 854.28 - - 1,039.46 314 2200 31422000 5310 OPERATING MATERIALS & SUPPLIES E 1,400.00 - 1,400.00 - - - 1,400.00 314 2200 31422000 5311 POSTAGE E 450.00 - 450.00 110.00 - - 450.00 314 2200 31422000 5710 PROFESSIONAL/TECHNICAL SERVICE E 800,000.00 154,717.81 954,717.81 283,621.97 99,240.22 - 954,717.81 314 2200 31422000 5720 ADVERTISING E 3,000.00 - 3,000.00 1,039.28 - - 3,000.00 314 2200 31422000 5790 REPAIR & MAINTENANCE SERVICES E - 23,800.00 23,800.00 23,800.00 - - 23,800.00 314 2200 31422000 5802 WATER E 14,500.00 - 14,500.00 206.30 - - 14,500.00 314 2400 31424000 5413 GOVERNMENT FEES/LICENSES E - - - 262.31 - - - 314 2410 31424100 5101 FULL-TIME SALARIES E 38,763.47 - 38,763.47 29,050.01 - - 38,763.47 314 2410 31424100 5201 HEALTH/DENTAL INSURANCE E 7,195.38 - 7,195.38 3,141.42 - - 7,195.38 314 2410 31424100 5202 LIFE INSURANCE E 42.79 - 42.79 20.50 - - 42.79 314 2410 31424100 5203 ACCIDENTAL DEATH DISMEMBER E 9.77 - 9.77 4.68 - - 9.77 314 2410 31424100 5204 LT/ST DISABILITY E 159.32 - 159.32 75.75 - - 159.32 314 2410 31424100 5205 FICA/MEDICARE E 562.07 - 562.07 463.00 - - 562.07

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FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
314 2410 31424100 5206 CALPERS RETIREMENT E 12,566.85 - 12,566.85 7,873.05 - - 12,566.85 314 2410 31424100 5208 WORKERS' COMPENSATION E 1,697.84 - 1,697.84 1,395.55 - - 1,697.84 314 2410 31424100 5209 DEFERRED COMPENSATION E 1,938.17 - 1,938.17 1,102.60 - - 1,938.17 314 2410 31424100 5211 RETIREE HEALTH SAVINGS E 932.77 - 932.77 544.80 - - 932.77 314 2410 31424100 5212 UNEMPLOYMENT E 155.05 - 155.05 127.90 - - 155.05 314 4100 31441000 5790 REPAIR & MAINTENANCE SERVICES E 12,315.00 - 12,315.00 - - - 12,315.00 314 6990 31469900 8000 CAPITAL IMPROVEMENT E - 135,565.00 135,565.00 - 105,000.00 - 135,565.00 410 4990 41049900 5101 FULL-TIME SALARIES E - - - 232.11 - - - 410 4990 41049900 5205 FICA/MEDICARE E - - - 3.34 - - - 410 4990 41049900 5206 CALPERS RETIREMENT E - - - 75.18 - - - 410 4990 41049900 5208 WORKERS' COMPENSATION E - - - 10.17 - - - 410 4990 41049900 5209 DEFERRED COMPENSATION E - - - 11.61 - - - 410 4990 41049900 5212 UNEMPLOYMENT E - - - 0.93 - - - 410 4990 41049900 8000 CAPITAL IMPROVEMENT E - 2,800,855.81 2,800,855.81 - - - 2,800,855.81 411 4990 41149900 5101 FULL-TIME SALARIES E - - - 15,670.56 - - - 411 4990 41149900 5201 HEALTH/DENTAL INSURANCE E - - - 2,572.67 - - - 411 4990 41149900 5202 LIFE INSURANCE E - - - 16.29 - - - 411 4990 41149900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 3.62 - - - 411 4990 41149900 5204 LT/ST DISABILITY E - - - 59.99 - - - 411 4990 41149900 5205 FICA/MEDICARE E - - - 224.90 - - - 411 4990 41149900 5206 CALPERS RETIREMENT E - - - 5,076.18 - - - 411 4990 41149900 5208 WORKERS' COMPENSATION E - - - 686.36 - - - 411 4990 41149900 5209 DEFERRED COMPENSATION E - - - 783.52 - - - 411 4990 41149900 5211 RETIREE HEALTH SAVINGS E - - - 160.32 - - - 411 4990 41149900 5212 UNEMPLOYMENT E - - - 62.68 - - - 411 4990 41149900 8000 CAPITAL IMPROVEMENT E - 8,089,963.45 8,089,963.45 234,701.78 (15,557.69) - 8,089,963.45 412 6000 41260009 5790 REPAIR & MAINTENANCE SERVICES E - 9,950.00 9,950.00 9,950.00 (9,950.00) - 9,950.00 413 1900 41319000 6203 ADMINISTRATIVE OVERHEAD E 4,103.00 - 4,103.00 2,393.42 - - 4,103.00 413 4990 41349900 8000 CAPITAL IMPROVEMENT E - 217,969.12 217,969.12 61,340.36 (137,875.85) - 217,969.12 413 6990 41369900 8000 CAPITAL IMPROVEMENT E - 158,117.10 158,117.10 80,579.24 (62,100.21) - 158,117.10 413 8000 41380000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 95.00 95.00 413 8000 41380000 6999 INTER-FUND TRANSFERS OUT E 42,514.06 - 42,514.06 - - - 42,514.06 414 4990 41449900 5101 FULL-TIME SALARIES E - - - 546.31 - - - 414 4990 41449900 5201 HEALTH/DENTAL INSURANCE E - - - 73.75 - - - 414 4990 41449900 5202 LIFE INSURANCE E - - - 0.57 - - - 414 4990 41449900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 0.10 - - - 414 4990 41449900 5204 LT/ST DISABILITY E - - - 2.14 - - - 414 4990 41449900 5205 FICA/MEDICARE E - - - 7.88 - - - 414 4990 41449900 5206 CALPERS RETIREMENT E - - - 177.04 - - - 414 4990 41449900 5208 WORKERS' COMPENSATION E - - - 23.91 - - - 414 4990 41449900 5209 DEFERRED COMPENSATION E - - - 27.32 - - - 414 4990 41449900 5211 RETIREE HEALTH SAVINGS E - - - 10.62 - - - 414 4990 41449900 5212 UNEMPLOYMENT E - - - 2.20 - - - 414 4990 41449900 8000 CAPITAL IMPROVEMENT E - 2,579,778.45 2,579,778.45 9,839.02 2,151.36 193,270.00 2,773,048.45 CP15ST093.CONS.. 420 1400 42014000 5101 FULL-TIME SALARIES E 56,356.30 - 56,356.30 36,633.80 - - 56,356.30 420 1400 42014000 5201 HEALTH/DENTAL INSURANCE E 14,390.76 - 14,390.76 8,460.37 - - 14,390.76 420 1400 42014000 5202 LIFE INSURANCE E 62.22 - 62.22 36.16 - - 62.22 420 1400 42014000 5203 ACCIDENTAL DEATH DISMEMBER E 14.20 - 14.20 8.25 - - 14.20 420 1400 42014000 5204 LT/ST DISABILITY E 231.62 - 231.62 134.19 - - 231.62 420 1400 42014000 5205 FICA/MEDICARE E 817.17 - 817.17 518.13 - - 817.17 420 1400 42014000 5206 CALPERS RETIREMENT E 18,270.33 - 18,270.33 11,164.69 - - 18,270.33 420 1400 42014000 5208 WORKERS' COMPENSATION E 2,468.41 - 2,468.41 1,604.58 - - 2,468.41 420 1400 42014000 5209 DEFERRED COMPENSATION E 2,817.82 - 2,817.82 1,723.35 - - 2,817.82 420 1400 42014000 5211 RETIREE HEALTH SAVINGS E 1,050.00 - 1,050.00 608.12 - - 1,050.00 420 1400 42014000 5212 UNEMPLOYMENT E 225.43 - 225.43 146.53 - - 225.43 420 1900 42019000 6203 ADMINISTRATIVE OVERHEAD E 941,483.00 - 941,483.00 549,198.42 - - 941,483.00 420 2500 42025000 5710 PROFESSIONAL/TECHNICAL SERVICE E 22,000.00 - 22,000.00 15,936.18 4,982.61 - 22,000.00 420 4000 42040000 5311 POSTAGE E 52,500.00 - 52,500.00 - - - 52,500.00 420 4000 42040000 5920 TRAINING E 55,309.00 - 55,309.00 - - - 55,309.00 420 4300 42043000 5101 FULL-TIME SALARIES E 1,078,511.55 - 1,078,511.55 586,530.35 - - 1,078,511.55 420 4300 42043000 5103 OVER-TIME SALARIES E 76,500.00 - 76,500.00 10,527.86 - - 76,500.00 420 4300 42043000 5104 TEMPORARY SALARIES E 35,000.00 - 35,000.00 19,826.24 - - 35,000.00

Page 34 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
420 4300 42043000 5201 HEALTH/DENTAL INSURANCE E 283,795.64 - 283,795.64 152,806.67 - - 283,795.64 420 4300 42043000 5202 LIFE INSURANCE E 1,526.31 - 1,526.31 779.23 - - 1,526.31 420 4300 42043000 5203 ACCIDENTAL DEATH DISMEMBER E 348.40 - 348.40 177.77 - - 348.40 420 4300 42043000 5204 LT/ST DISABILITY E 5,819.67 - 5,819.67 3,083.07 - - 5,819.67 420 4300 42043000 5205 FICA/MEDICARE E 15,830.42 - 15,830.42 9,100.98 - - 15,830.42 420 4300 42043000 5206 CALPERS RETIREMENT E 349,646.10 - 349,646.10 195,581.49 - - 349,646.10 420 4300 42043000 5208 WORKERS' COMPENSATION E 47,818.78 - 47,818.78 26,596.73 - - 47,818.78 420 4300 42043000 5209 DEFERRED COMPENSATION E 58,005.85 - 58,005.85 31,281.49 - - 58,005.85 420 4300 42043000 5211 RETIREE HEALTH SAVINGS E 27,854.39 - 27,854.39 14,196.91 - - 27,854.39 420 4300 42043000 5212 UNEMPLOYMENT E 4,367.01 - 4,367.01 2,515.71 - - 4,367.01 420 4300 42043000 5310 OPERATING MATERIALS & SUPPLIES E 57,200.00 (45.00) 57,155.00 12,860.26 - - 57,155.00 420 4300 42043000 5311 POSTAGE E 200.00 - 200.00 101.39 - - 200.00 420 4300 42043000 5312 SPECIAL ACTIVITY SUPPLIES E 600.00 - 600.00 71.63 - - 600.00 420 4300 42043000 5314 FUEL E 44,900.27 - 44,900.27 27,599.71 - - 44,900.27 420 4300 42043000 5315 UNIFORMS E 20,575.00 (7,200.00) 13,375.00 4,117.36 3,880.10 - 13,375.00 420 4300 42043000 5321 VEHICLE OPERATIONS E 321,370.99 - 321,370.99 187,466.41 - - 321,370.99 420 4300 42043000 5330 RENTALS/LEASES E 10,450.00 - 10,450.00 2,760.00 - - 10,450.00 420 4300 42043000 5350 NON-CAPITAL EQUIPMENT E 96,390.00 - 96,390.00 7,628.61 - - 96,390.00 420 4300 42043000 5360 COMPUTERS HARDWARE E 2,200.00 - 2,200.00 1,283.33 - - 2,200.00 420 4300 42043000 5400 DUES & MEMBERSHIPS E 7,400.00 - 7,400.00 4,342.25 - - 7,400.00 420 4300 42043000 5413 GOVERNMENT FEES/LICENSES E 28,250.00 - 28,250.00 23,142.99 - 12,000.00 40,250.00 420 4300 42043000 5710 PROFESSIONAL/TECHNICAL SERVICE E 252,750.00 11,659.40 264,409.40 9,000.00 145,532.81 - 264,409.40 420 4300 42043000 5790 REPAIR & MAINTENANCE SERVICES E 128,500.00 - 128,500.00 30,126.38 2,440.00 - 128,500.00 420 4300 42043000 5802 WATER E 17,000.00 - 17,000.00 4,386.10 - - 17,000.00 420 4300 42043000 5804 ELECTRIC E 12,000.00 - 12,000.00 6,198.22 - - 12,000.00 420 4300 42043000 5900 MEETINGS & CONFERENCES E 32,850.00 - 32,850.00 (74.25) - - 32,850.00 420 4300 42043000 5910 TRAVEL/MILEAGE REIMBURSEMENT E 14,000.00 - 14,000.00 7,740.18 - - 14,000.00 420 4300 42043000 5912 BOOT/PANT REIMBURSEMENT E - 7,200.00 7,200.00 4,476.49 - 1,800.00 9,000.00 420 4300 42043000 5920 TRAINING E 10,900.00 - 10,900.00 8,468.73 - - 10,900.00 420 4300 42043000 5930 PUBLICATIONS/JOURNALS E - 45.00 45.00 - - - 45.00 420 4300 42043000 8100 FURNITURE & EQUIPMENT E 127,400.00 76,769.53 204,169.53 - 12,492.50 - 204,169.53 420 4400 42044000 8100 FURNITURE & EQUIPMENT E - 46,077.33 46,077.33 46,077.33 (46,077.33) - 46,077.33 420 4990 42049900 5101 FULL-TIME SALARIES E - - - 6,934.80 - - - 420 4990 42049900 5201 HEALTH/DENTAL INSURANCE E - - - 597.11 - - - 420 4990 42049900 5202 LIFE INSURANCE E - - - 7.66 - - - 420 4990 42049900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 1.76 - - - 420 4990 42049900 5204 LT/ST DISABILITY E - - - 28.46 - - - 420 4990 42049900 5205 FICA/MEDICARE E - - - 100.14 - - - 420 4990 42049900 5206 CALPERS RETIREMENT E - - - 2,246.20 - - - 420 4990 42049900 5208 WORKERS' COMPENSATION E - - - 303.70 - - - 420 4990 42049900 5209 DEFERRED COMPENSATION E - - - 346.72 - - - 420 4990 42049900 5211 RETIREE HEALTH SAVINGS E - - - 176.24 - - - 420 4990 42049900 5212 UNEMPLOYMENT E - - - 27.72 - - - 420 4990 42049900 8000 CAPITAL IMPROVEMENT E - 664,290.30 664,290.30 75.00 - - 664,290.30 420 8000 42080000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 57.00 57.00 420 8000 42080000 6999 INTER-FUND TRANSFERS OUT E 25,508.44 - 25,508.44 - - - 25,508.44 421 1900 42119000 6203 ADMINISTRATIVE OVERHEAD E 228,979.00 - 228,979.00 133,571.08 - - 228,979.00 421 2500 42125000 5710 PROFESSIONAL/TECHNICAL SERVICE E 36,000.00 - 36,000.00 30,601.52 2,905.32 - 36,000.00 421 2600 42126000 5101 FULL-TIME SALARIES E 123,239.87 - 123,239.87 111,445.08 - 19,340.29 142,580.16 421 2600 42126000 5201 HEALTH/DENTAL INSURANCE E 15,059.70 - 15,059.70 8,668.47 - - 15,059.70 421 2600 42126000 5202 LIFE INSURANCE E 136.06 - 136.06 62.90 - - 136.06 421 2600 42126000 5203 ACCIDENTAL DEATH DISMEMBER E 31.06 - 31.06 14.36 - - 31.06 421 2600 42126000 5204 LT/ST DISABILITY E 506.52 - 506.52 274.22 - - 506.52 421 2600 42126000 5205 FICA/MEDICARE E 1,786.98 - 1,786.98 1,694.82 - - 1,786.98 421 2600 42126000 5206 CALPERS RETIREMENT E 39,953.53 - 39,953.53 24,508.68 - - 39,953.53 421 2600 42126000 5208 WORKERS' COMPENSATION E 5,397.91 - 5,397.91 5,114.49 - - 5,397.91 421 2600 42126000 5209 DEFERRED COMPENSATION E 6,161.99 - 6,161.99 3,584.53 - - 6,161.99 421 2600 42126000 5210 PERS LONG TERM CARE E 540.02 - 540.02 330.24 - - 540.02 421 2600 42126000 5211 RETIREE HEALTH SAVINGS E 1,185.12 - 1,185.12 743.25 - - 1,185.12 421 2600 42126000 5212 UNEMPLOYMENT E 492.96 - 492.96 467.10 - - 492.96 421 2600 42126000 5310 OPERATING MATERIALS & SUPPLIES E 1,000.00 1,500.00 2,500.00 1,511.13 700.00 - 2,500.00 421 2600 42126000 5314 FUEL E 7,360.70 - 7,360.70 7,850.35 - - 7,360.70

Page 35 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
421 2600 42126000 5315 UNIFORMS E 500.00 278.15 778.15 - - - 778.15 421 2600 42126000 5321 VEHICLE OPERATIONS E 51,214.50 - 51,214.50 29,875.13 - - 51,214.50 421 2600 42126000 5710 PROFESSIONAL/TECHNICAL SERVICE E - 66,000.00 66,000.00 64,750.00 (64,750.00) - 66,000.00 421 2600 42126000 5755 LANDSCAPE CONTRACTS E 1,956,252.00 2,588.35 1,958,840.35 939,478.27 915,807.64 - 1,958,840.35 421 2600 42126000 5790 REPAIR & MAINTENANCE SERVICES E 97,780.00 (1,778.15) 96,001.85 37,421.58 17,908.83 - 96,001.85 421 2600 42126000 5793 EMERGENCY DAMAGE REPAIRS E 40,000.00 - 40,000.00 20,463.78 7,115.00 - 40,000.00 421 2600 42126000 5802 WATER E 500,000.00 - 500,000.00 439,652.22 - - 500,000.00 421 2600 42126000 5804 ELECTRIC E 21,000.00 - 21,000.00 14,948.18 - - 21,000.00 421 8000 42180000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 244.00 244.00 421 8000 42180000 6999 INTER-FUND TRANSFERS OUT E 110,536.57 - 110,536.57 - - - 110,536.57 422 1900 42219000 6112 INFORMATION TECHNOLOGY ISF E 383,501.00 - 383,501.00 223,708.92 - - 383,501.00 422 1900 42219000 6113 GENERAL LIABILITY ISF E 200,359.00 - 200,359.00 116,876.08 - - 200,359.00 422 1900 42219000 6203 ADMINISTRATIVE OVERHEAD E 246,478.00 - 246,478.00 143,778.83 - - 246,478.00 422 2500 42225000 5710 PROFESSIONAL/TECHNICAL SERVICE E 23,000.00 - 23,000.00 18,726.51 1,610.63 - 23,000.00 422 2600 42226000 5755 LANDSCAPE CONTRACTS E 102,498.00 - 102,498.00 56,352.11 45,391.42 - 102,498.00 422 4000 42240000 5311 POSTAGE E 53,750.00 - 53,750.00 - - - 53,750.00 422 4000 42240000 5315 UNIFORMS E - - - (5,362.62) - - - 422 4000 42240000 5920 TRAINING E 2,489.00 - 2,489.00 - - - 2,489.00 422 4200 42242000 5101 FULL-TIME SALARIES E 929,741.03 - 929,741.03 324,306.17 - - 929,741.03 422 4200 42242000 5103 OVER-TIME SALARIES E 84,264.00 - 84,264.00 52,050.35 - - 84,264.00 422 4200 42242000 5104 TEMPORARY SALARIES E 52,176.60 - 52,176.60 11,930.24 - - 52,176.60 422 4200 42242000 5106 SALARIES (OFFSET) E (237,054.50) - (237,054.50) - - - (237,054.50) 422 4200 42242000 5201 HEALTH/DENTAL INSURANCE E 281,293.17 - 281,293.17 69,433.08 - - 281,293.17 422 4200 42242000 5202 LIFE INSURANCE E 1,180.13 - 1,180.13 355.15 - - 1,180.13 422 4200 42242000 5203 ACCIDENTAL DEATH DISMEMBER E 269.38 - 269.38 81.00 - - 269.38 422 4200 42242000 5204 LT/ST DISABILITY E 3,820.62 - 3,820.62 1,212.03 - - 3,820.62 422 4200 42242000 5205 FICA/MEDICARE E 13,531.28 - 13,531.28 5,681.03 - - 13,531.28 422 4200 42242000 5206 CALPERS RETIREMENT E 301,415.71 - 301,415.71 108,005.04 - - 301,415.71 422 4200 42242000 5208 WORKERS' COMPENSATION E 40,867.23 - 40,867.23 14,876.62 - - 40,867.23 422 4200 42242000 5209 DEFERRED COMPENSATION E 46,479.84 - 46,479.84 15,934.63 - - 46,479.84 422 4200 42242000 5211 RETIREE HEALTH SAVINGS E 19,486.68 - 19,486.68 4,927.22 - - 19,486.68 422 4200 42242000 5212 UNEMPLOYMENT E 3,732.77 - 3,732.77 1,573.02 - - 3,732.77 422 4200 42242000 5216 FRINGE BENEFITS (OFFSET) E (195,648.00) - (195,648.00) - - - (195,648.00) 422 4200 42242000 5310 OPERATING MATERIALS & SUPPLIES E 7,300.00 - 7,300.00 - - - 7,300.00 422 4200 42242000 5312 SPECIAL ACTIVITY SUPPLIES E 402,000.00 - 402,000.00 - - - 402,000.00 422 4200 42242000 5314 FUEL E 20,978.00 - 20,978.00 4,463.71 - - 20,978.00 422 4200 42242000 5315 UNIFORMS E 6,174.00 - 6,174.00 1,762.62 - - 6,174.00 422 4200 42242000 5321 VEHICLE OPERATIONS E 148,522.05 - 148,522.05 86,637.86 - - 148,522.05 422 4200 42242000 5350 NON-CAPITAL EQUIPMENT E 2,905.00 - 2,905.00 - - - 2,905.00 422 4200 42242000 5400 DUES & MEMBERSHIPS E 1,130.00 - 1,130.00 898.15 - - 1,130.00 422 4200 42242000 5710 PROFESSIONAL/TECHNICAL SERVICE E 1,623,000.00 41,444.34 1,664,444.34 452,743.07 88,614.19 - 1,664,444.34 422 4200 42242000 5790 REPAIR & MAINTENANCE SERVICES E - 10,710.80 10,710.80 10,710.80 (10,710.80) - 10,710.80 422 4200 42242000 5791 STREET LIGHT SERVICES E 214,019.00 38,580.75 252,599.75 172,045.23 2,014.78 - 252,599.75 422 4200 42242000 5792 TRAFFIC SIGNAL SERVICES E 351,656.00 29,540.89 381,196.89 91,733.23 57,131.40 - 381,196.89 422 4200 42242000 5793 EMERGENCY DAMAGE REPAIRS E 517,001.00 61,649.18 578,650.18 87,405.96 64,212.00 - 578,650.18 422 4200 42242000 5796 TRAFFIC SIGNAL-MULTI JURSTICT E 75,400.00 32,446.23 107,846.23 31,013.84 (27,446.23) - 107,846.23 422 4200 42242000 5804 ELECTRIC E 2,450,778.00 - 2,450,778.00 1,512,114.44 - - 2,450,778.00 422 4200 42242000 5910 TRAVEL/MILEAGE REIMBURSEMENT E - 1,300.00 1,300.00 1,252.95 - - 1,300.00 422 4200 42242000 5912 BOOT/PANT REIMBURSEMENT E 5,400.00 - 5,400.00 789.03 - - 5,400.00 422 4200 42242000 5920 TRAINING E 37,908.00 (1,300.00) 36,608.00 1,685.00 - - 36,608.00 422 4700 42247000 5710 PROFESSIONAL/TECHNICAL SERVICE E 200,000.00 - 200,000.00 - - - 200,000.00 422 4990 42249900 8000 CAPITAL IMPROVEMENT E - 169,391.20 169,391.20 - - - 169,391.20 422 8000 42280000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 1,975.00 - 1,975.00 1,975.00 422 8000 42280000 7000 DEBT SERVICES - PRIN E 660,000.00 - 660,000.00 660,000.00 - - 660,000.00 422 8000 42280000 7100 DEBT SERVICE - INTEREST E 313,657.00 - 313,657.00 161,778.13 - - 313,657.00 423 1900 42319000 6112 INFORMATION TECHNOLOGY ISF E 80,506.00 - 80,506.00 46,961.83 - - 80,506.00 423 1900 42319000 6113 GENERAL LIABILITY ISF E 39,854.00 - 39,854.00 23,248.17 - - 39,854.00 423 1900 42319000 6203 ADMINISTRATIVE OVERHEAD E 449,487.00 - 449,487.00 262,200.75 - - 449,487.00 423 2500 42325000 5710 PROFESSIONAL/TECHNICAL SERVICE E 33,500.00 - 33,500.00 28,279.03 4,399.95 - 33,500.00 423 4000 42340000 5311 POSTAGE E 25,000.00 - 25,000.00 - - - 25,000.00 423 4000 42340000 5330 RENTALS/LEASES E 13,000.00 - 13,000.00 13,000.00 - - 13,000.00 423 4000 42340000 5920 TRAINING E 10,086.00 - 10,086.00 - - - 10,086.00

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FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
423 4100 42341000 5101 FULL-TIME SALARIES E 343,443.85 - 343,443.85 168,098.47 - - 343,443.85 423 4100 42341000 5103 OVER-TIME SALARIES E 24,951.00 - 24,951.00 4,504.60 - - 24,951.00 423 4100 42341000 5201 HEALTH/DENTAL INSURANCE E 86,725.66 - 86,725.66 35,739.35 - - 86,725.66 423 4100 42341000 5202 LIFE INSURANCE E 457.24 - 457.24 202.79 - - 457.24 423 4100 42341000 5203 ACCIDENTAL DEATH DISMEMBER E 104.37 - 104.37 46.24 - - 104.37 423 4100 42341000 5204 LT/ST DISABILITY E 1,411.55 - 1,411.55 622.96 - - 1,411.55 423 4100 42341000 5205 FICA/MEDICARE E 5,150.51 - 5,150.51 2,458.43 - - 5,150.51 423 4100 42341000 5206 CALPERS RETIREMENT E 111,342.16 - 111,342.16 51,859.70 - - 111,342.16 423 4100 42341000 5208 WORKERS' COMPENSATION E 15,558.09 - 15,558.09 7,189.12 - - 15,558.09 423 4100 42341000 5209 DEFERRED COMPENSATION E 17,172.19 - 17,172.19 7,878.01 - - 17,172.19 423 4100 42341000 5211 RETIREE HEALTH SAVINGS E 7,959.67 - 7,959.67 3,413.24 - - 7,959.67 423 4100 42341000 5212 UNEMPLOYMENT E 1,420.83 - 1,420.83 698.09 - - 1,420.83 423 4100 42341000 5314 FUEL E 15,457.47 - 15,457.47 2,680.43 - - 15,457.47 423 4100 42341000 5315 UNIFORMS E 500.00 - 500.00 215.90 - - 500.00 423 4100 42341000 5321 VEHICLE OPERATIONS E 113,952.26 - 113,952.26 66,472.15 - - 113,952.26 423 4100 42341000 5413 GOVERNMENT FEES/LICENSES E - 161.87 161.87 161.87 - - 161.87 423 4100 42341000 5790 REPAIR & MAINTENANCE SERVICES E 2,000.00 - 2,000.00 - - - 2,000.00 423 4100 42341000 5912 BOOT/PANT REIMBURSEMENT E 600.00 - 600.00 600.00 - - 600.00 423 4100 42341000 5920 TRAINING E 3,350.00 (161.87) 3,188.13 - - - 3,188.13 423 4300 42343000 5101 FULL-TIME SALARIES E 372,506.50 - 372,506.50 207,544.26 - - 372,506.50 423 4300 42343000 5103 OVER-TIME SALARIES E 16,000.00 - 16,000.00 3,427.37 - - 16,000.00 423 4300 42343000 5201 HEALTH/DENTAL INSURANCE E 93,456.13 - 93,456.13 47,812.42 - - 93,456.13 423 4300 42343000 5202 LIFE INSURANCE E 473.63 - 473.63 244.76 - - 473.63 423 4300 42343000 5203 ACCIDENTAL DEATH DISMEMBER E 108.11 - 108.11 55.95 - - 108.11 423 4300 42343000 5204 LT/ST DISABILITY E 1,933.98 - 1,933.98 1,020.56 - - 1,933.98 423 4300 42343000 5205 FICA/MEDICARE E 5,479.71 - 5,479.71 3,142.82 - - 5,479.71 423 4300 42343000 5206 CALPERS RETIREMENT E 120,764.07 - 120,764.07 66,600.72 - - 120,764.07 423 4300 42343000 5208 WORKERS' COMPENSATION E 16,552.51 - 16,552.51 9,099.73 - - 16,552.51 423 4300 42343000 5209 DEFERRED COMPENSATION E 22,705.60 - 22,705.60 12,681.28 - - 22,705.60 423 4300 42343000 5211 RETIREE HEALTH SAVINGS E 6,335.39 - 6,335.39 3,186.41 - - 6,335.39 423 4300 42343000 5212 UNEMPLOYMENT E 1,511.64 - 1,511.64 869.31 - - 1,511.64 423 4300 42343000 5310 OPERATING MATERIALS & SUPPLIES E 8,150.00 - 8,150.00 6,125.13 - - 8,150.00 423 4300 42343000 5314 FUEL E 5,888.56 - 5,888.56 - - - 5,888.56 423 4300 42343000 5315 UNIFORMS E 600.00 - 600.00 - - - 600.00 423 4300 42343000 5321 VEHICLE OPERATIONS E 40,971.60 - 40,971.60 23,900.10 - - 40,971.60 423 4300 42343000 5330 RENTALS/LEASES E 40,000.00 - 40,000.00 - - - 40,000.00 423 4300 42343000 5350 NON-CAPITAL EQUIPMENT E 5,000.00 - 5,000.00 1,386.00 - - 5,000.00 423 4300 42343000 5400 DUES & MEMBERSHIPS E 200.00 - 200.00 - - - 200.00 423 4300 42343000 5413 GOVERNMENT FEES/LICENSES E 3,170.00 - 3,170.00 - - - 3,170.00 423 4300 42343000 5710 PROFESSIONAL/TECHNICAL SERVICE E 72,500.00 (12,242.00) 60,258.00 9,000.00 12,812.50 40,000.00 100,258.00 423 4300 42343000 5790 REPAIR & MAINTENANCE SERVICES E 63,000.00 - 63,000.00 12,878.25 8,500.00 - 63,000.00 423 4300 42343000 5793 EMERGENCY DAMAGE REPAIRS E 10,000.00 - 10,000.00 - - - 10,000.00 423 4300 42343000 5802 WATER E 11,000.00 - 11,000.00 2,326.79 - - 11,000.00 423 4300 42343000 5804 ELECTRIC E 12,000.00 - 12,000.00 6,653.05 - - 12,000.00 423 4300 42343000 5900 MEETINGS & CONFERENCES E 2,000.00 - 2,000.00 - - - 2,000.00 423 4300 42343000 8100 FURNITURE & EQUIPMENT E - 12,505.00 12,505.00 - 12,503.00 30,000.00 42,505.00 423 4400 42344000 5330 RENTALS/LEASES E 47,350.00 - 47,350.00 - - - 47,350.00 423 4400 42344000 8100 FURNITURE & EQUIPMENT E - 40,000.00 40,000.00 40,000.00 (40,000.00) - 40,000.00 423 4400 42344000 8200 VEHICLES E 16,500.00 174,524.70 191,024.70 174,524.70 (174,524.70) - 191,024.70 423 4500 42345000 5797 STREET SWEEPING E 299,693.00 - 299,693.00 299,692.97 - - 299,693.00 423 4990 42349900 8000 CAPITAL IMPROVEMENT E - 604,232.85 604,232.85 - 60,656.25 - 604,232.85 423 8000 42380000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 57.00 57.00 423 8000 42380000 6999 INTER-FUND TRANSFERS OUT E 25,508.44 - 25,508.44 - - - 25,508.44 424 1900 42419000 6112 INFORMATION TECHNOLOGY ISF E 10,872.00 - 10,872.00 6,342.00 - - 10,872.00 424 1900 42419000 6113 GENERAL LIABILITY ISF E 5,394.00 - 5,394.00 3,146.50 - - 5,394.00 424 1900 42419000 6203 ADMINISTRATIVE OVERHEAD E 40,795.00 - 40,795.00 23,797.08 - - 40,795.00 424 4300 42443000 5101 FULL-TIME SALARIES E 325,820.07 - 325,820.07 225,026.66 - - 325,820.07 424 4300 42443000 5103 OVER-TIME SALARIES E 3,000.00 - 3,000.00 5,940.21 - - 3,000.00 424 4300 42443000 5201 HEALTH/DENTAL INSURANCE E 89,471.96 - 89,471.96 61,291.76 - - 89,471.96 424 4300 42443000 5202 LIFE INSURANCE E 429.47 - 429.47 285.96 - - 429.47 424 4300 42443000 5203 ACCIDENTAL DEATH DISMEMBER E 98.03 - 98.03 65.25 - - 98.03 424 4300 42443000 5204 LT/ST DISABILITY E 1,742.09 - 1,742.09 1,092.53 - - 1,742.09

Page 37 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
424 4300 42443000 5205 FICA/MEDICARE E 4,755.11 - 4,755.11 3,416.43 - - 4,755.11 424 4300 42443000 5206 CALPERS RETIREMENT E 105,628.65 - 105,628.65 72,659.48 - - 105,628.65 424 4300 42443000 5208 WORKERS' COMPENSATION E 14,363.72 - 14,363.72 9,918.18 - - 14,363.72 424 4300 42443000 5209 DEFERRED COMPENSATION E 20,371.28 - 20,371.28 13,600.66 - - 20,371.28 424 4300 42443000 5211 RETIREE HEALTH SAVINGS E 6,965.39 - 6,965.39 4,671.49 - - 6,965.39 424 4300 42443000 5212 UNEMPLOYMENT E 1,311.76 - 1,311.76 949.36 - - 1,311.76 424 4300 42443000 5310 OPERATING MATERIALS & SUPPLIES E 8,650.00 - 8,650.00 3,578.00 - - 8,650.00 424 4300 42443000 5315 UNIFORMS E 500.00 - 500.00 - - - 500.00 424 4300 42443000 5350 NON-CAPITAL EQUIPMENT E 18,000.00 - 18,000.00 6,804.79 86.43 - 18,000.00 424 4300 42443000 5400 DUES & MEMBERSHIPS E 700.00 - 700.00 113.00 - - 700.00 424 4300 42443000 5710 PROFESSIONAL/TECHNICAL SERVICE E 26,900.00 - 26,900.00 2,797.00 910.00 - 26,900.00 424 4300 42443000 5790 REPAIR & MAINTENANCE SERVICES E 15,697.00 - 15,697.00 3,405.00 - - 15,697.00 424 4300 42443000 5804 ELECTRIC E 106,000.00 - 106,000.00 27,076.95 - - 106,000.00 424 4300 42443000 5808 RECYCLED WATER PURCHASE E 115,000.00 - 115,000.00 - - - 115,000.00 424 4300 42443000 8100 FURNITURE & EQUIPMENT E 49,050.00 - 49,050.00 - 22,642.00 - 49,050.00 500 1900 50019000 6112 INFORMATION TECHNOLOGY ISF E 535.00 - 535.00 312.08 - - 535.00 500 1900 50019000 6113 GENERAL LIABILITY ISF E 349.00 - 349.00 203.58 - - 349.00 500 8000 50080000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 3,400.00 - 3,400.00 3,400.00 500 8000 50080000 7000 DEBT SERVICES - PRIN E 945,000.00 - 945,000.00 945,000.00 - - 945,000.00 500 8000 50080000 7100 DEBT SERVICE - INTEREST E 364,042.00 - 364,042.00 184,801.24 - - 364,042.00 500 9100 50091000 5710 PROFESSIONAL/TECHNICAL SERVICE E 5,000.00 - 5,000.00 - - - 5,000.00 501 1000 50110000 5101 FULL-TIME SALARIES E 33,317.39 - 33,317.39 20,539.97 - - 33,317.39 501 1000 50110000 5201 HEALTH/DENTAL INSURANCE E 2,878.15 - 2,878.15 1,659.18 - - 2,878.15 501 1000 50110000 5202 LIFE INSURANCE E 236.78 - 236.78 47.44 - - 236.78 501 1000 50110000 5203 ACCIDENTAL DEATH DISMEMBER E 8.40 - 8.40 3.24 - - 8.40 501 1000 50110000 5204 LT/ST DISABILITY E 136.93 - 136.93 39.33 - - 136.93 501 1000 50110000 5205 FICA/MEDICARE E 483.10 - 483.10 316.38 - - 483.10 501 1000 50110000 5206 CALPERS RETIREMENT E 10,801.27 - 10,801.27 6,539.16 - - 10,801.27 501 1000 50110000 5208 WORKERS' COMPENSATION E 1,459.30 - 1,459.30 940.84 - - 1,459.30 501 1000 50110000 5209 DEFERRED COMPENSATION E 2,665.39 - 2,665.39 1,614.83 - - 2,665.39 501 1000 50110000 5211 RETIREE HEALTH SAVINGS E 876.35 - 876.35 522.93 - - 876.35 501 1000 50110000 5212 UNEMPLOYMENT E 133.27 - 133.27 87.53 - - 133.27 501 1000 50110000 5319 DONATIONS EXPENSE E 100,000.00 - 100,000.00 1,600.00 - - 100,000.00 501 1000 50110000 5725 SPONSORSHIP EXPENSE E 175,000.00 (23,000.00) 152,000.00 114,758.99 5,000.00 - 152,000.00 501 1000 50110000 5910 TRAVEL/MILEAGE REIMBURSEMENT E 720.00 - 720.00 120.00 - - 720.00 501 1700 50117000 5101 FULL-TIME SALARIES E 313,090.18 - 313,090.18 197,127.27 - - 313,090.18 501 1700 50117000 5201 HEALTH/DENTAL INSURANCE E 41,675.52 - 41,675.52 25,678.52 - - 41,675.52 501 1700 50117000 5202 LIFE INSURANCE E 345.65 - 345.65 184.99 - - 345.65 501 1700 50117000 5203 ACCIDENTAL DEATH DISMEMBER E 78.90 - 78.90 42.20 - - 78.90 501 1700 50117000 5204 LT/ST DISABILITY E 1,286.80 - 1,286.80 619.36 - - 1,286.80 501 1700 50117000 5205 FICA/MEDICARE E 4,539.81 - 4,539.81 2,850.33 - - 4,539.81 501 1700 50117000 5206 CALPERS RETIREMENT E 101,501.70 - 101,501.70 62,215.16 - - 101,501.70 501 1700 50117000 5208 WORKERS' COMPENSATION E 13,713.35 - 13,713.35 8,644.63 - - 13,713.35 501 1700 50117000 5209 DEFERRED COMPENSATION E 19,787.30 - 19,787.30 12,131.03 - - 19,787.30 501 1700 50117000 5211 RETIREE HEALTH SAVINGS E 7,405.19 - 7,405.19 4,382.53 - - 7,405.19 501 1700 50117000 5212 UNEMPLOYMENT E 1,252.36 - 1,252.36 789.42 - - 1,252.36 501 1710 50117100 5101 FULL-TIME SALARIES E 80,508.87 - 80,508.87 49,251.00 - - 80,508.87 501 1710 50117100 5201 HEALTH/DENTAL INSURANCE E 15,111.81 - 15,111.81 8,885.36 - - 15,111.81 501 1710 50117100 5202 LIFE INSURANCE E 88.88 - 88.88 52.08 - - 88.88 501 1710 50117100 5203 ACCIDENTAL DEATH DISMEMBER E 20.29 - 20.29 11.87 - - 20.29 501 1710 50117100 5204 LT/ST DISABILITY E 330.89 - 330.89 192.63 - - 330.89 501 1710 50117100 5205 FICA/MEDICARE E 1,167.38 - 1,167.38 708.10 - - 1,167.38 501 1710 50117100 5206 CALPERS RETIREMENT E 26,100.43 - 26,100.43 15,953.72 - - 26,100.43 501 1710 50117100 5208 WORKERS' COMPENSATION E 3,526.29 - 3,526.29 2,157.25 - - 3,526.29 501 1710 50117100 5209 DEFERRED COMPENSATION E 4,025.44 - 4,025.44 2,462.48 - - 4,025.44 501 1710 50117100 5211 RETIREE HEALTH SAVINGS E 1,575.00 - 1,575.00 912.18 - - 1,575.00 501 1710 50117100 5212 UNEMPLOYMENT E 322.04 - 322.04 197.01 - - 322.04 501 1900 50119000 6112 INFORMATION TECHNOLOGY ISF E 132,566.00 - 132,566.00 77,330.17 - - 132,566.00 501 1900 50119000 6113 GENERAL LIABILITY ISF E 92,227.00 - 92,227.00 53,799.08 - - 92,227.00 501 1900 50119000 6203 ADMINISTRATIVE OVERHEAD E 510,951.00 - 510,951.00 298,054.75 - - 510,951.00 501 4200 50142000 5790 REPAIR & MAINTENANCE SERVICES E 42,286.00 - 42,286.00 21,770.00 12,500.00 - 42,286.00 501 4200 50142000 5793 EMERGENCY DAMAGE REPAIRS E 5,000.00 - 5,000.00 - 2,500.00 - 5,000.00

Page 38 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
501 4200 50142000 5804 ELECTRIC E 212,496.00 - 212,496.00 100,337.28 - - 212,496.00 501 8000 50180000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 57.00 57.00 501 8000 50180000 6999 INTER-FUND TRANSFERS OUT E 25,508.44 - 25,508.44 - - - 25,508.44 501 9100 50191000 5310 OPERATING MATERIALS & SUPPLIES E 50,000.00 - 50,000.00 14,624.11 7,400.09 - 50,000.00 501 9100 50191000 5311 POSTAGE E 500.00 - 500.00 - - - 500.00 501 9100 50191000 5312 SPECIAL ACTIVITY SUPPLIES E 20,000.00 - 20,000.00 4,315.91 - - 20,000.00 501 9100 50191000 5400 DUES & MEMBERSHIPS E 163,000.00 - 163,000.00 2,225.00 - - 163,000.00 501 9100 50191000 5620 BAD DEBT EXPENSE E - - - 1,891,673.79 - - - 501 9100 50191000 5700 SERVICES E 130,000.00 - 130,000.00 - - (11,410.00) 118,590.00 501 9100 50191000 5710 PROFESSIONAL/TECHNICAL SERVICE E 1,893,164.00 - 1,893,164.00 994,606.05 2,250.00 (295,436.00) 1,597,728.00 501 9100 50191000 5720 ADVERTISING E 30,000.00 - 30,000.00 - - - 30,000.00 501 9100 50191000 5730 PRINTING/BINDING E 500.00 - 500.00 54.28 - - 500.00 501 9100 50191000 5740 LEGAL SERVICES E 12,000.00 - 12,000.00 840.00 - - 12,000.00 501 9100 50191000 5806 POWER PURCHASE EXPENSE E 74,099,107.00 - 74,099,107.00 24,909,691.66 - (5,869,444.61) 68,229,662.39 501 9100 50191000 5807 NEM PAYOUTS E 590,000.00 - 590,000.00 740,861.87 - 221,275.85 811,275.85 501 9100 50191000 5900 MEETINGS & CONFERENCES E 6,250.00 - 6,250.00 1,859.07 - - 6,250.00 501 9100 50191000 5910 TRAVEL/MILEAGE REIMBURSEMENT E 15,508.00 - 15,508.00 5,308.90 - - 15,508.00 501 9100 50191000 5920 TRAINING E 1,000.00 - 1,000.00 - - - 1,000.00 501 9170 50191700 5400 DUES & MEMBERSHIPS E - - - 1,375.00 - - - 501 9170 50191700 8200 VEHICLES E - 69,165.00 69,165.00 41,500.00 - - 69,165.00 530 4990 53049900 5101 FULL-TIME SALARIES E - - - 29,350.31 - - - 530 4990 53049900 5201 HEALTH/DENTAL INSURANCE E - - - 5,414.64 - - - 530 4990 53049900 5202 LIFE INSURANCE E - - - 34.45 - - - 530 4990 53049900 5203 ACCIDENTAL DEATH DISMEMBER E - - - 7.88 - - - 530 4990 53049900 5204 LT/ST DISABILITY E - - - 126.08 - - - 530 4990 53049900 5205 FICA/MEDICARE E - - - 423.56 - - - 530 4990 53049900 5206 CALPERS RETIREMENT E - - - 9,506.56 - - - 530 4990 53049900 5208 WORKERS' COMPENSATION E - - - 1,285.44 - - - 530 4990 53049900 5209 DEFERRED COMPENSATION E - - - 1,467.54 - - - 530 4990 53049900 5211 RETIREE HEALTH SAVINGS E - - - 684.02 - - - 530 4990 53049900 5212 UNEMPLOYMENT E - - - 117.40 - - - 530 4990 53049900 8000 CAPITAL IMPROVEMENT E - 4,095,454.78 4,095,454.78 1,774,042.97 1,492,780.54 - 4,095,454.78 530 6990 53069900 8000 CAPITAL IMPROVEMENT E - 37,932.07 37,932.07 - - - 37,932.07 530 8000 53080000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 3,750.00 - 3,750.00 3,750.00 530 8000 53080000 7000 DEBT SERVICES - PRIN E 1,475,000.00 - 1,475,000.00 - - (240,000.00) 1,235,000.00 530 8000 53080000 7100 DEBT SERVICE - INTEREST E 2,373,719.28 - 2,373,719.28 1,157,165.64 - (59,388.00) 2,314,331.28 530 8010 53080100 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 750.00 - 750.00 750.00 530 8010 53080100 6900 OTHER FINANCING USES E - - - 11,000,000.00 - - - 530 8010 53080100 7100 DEBT SERVICE - INTEREST E 2,651,100.00 - 2,651,100.00 1,325,550.00 - - 2,651,100.00 530 8020 53080200 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 750.00 - 750.00 750.00 530 8020 53080200 7000 DEBT SERVICES - PRIN E 510,000.00 - 510,000.00 - - - 510,000.00 530 8020 53080200 7100 DEBT SERVICE - INTEREST E 353,734.36 - 353,734.36 176,867.18 - - 353,734.36 601 7100 60171000 5101 FULL-TIME SALARIES E 877,283.42 - 877,283.42 480,080.51 - - 877,283.42 601 7100 60171000 5201 HEALTH/DENTAL INSURANCE E 155,053.56 - 155,053.56 75,727.64 - - 155,053.56 601 7100 60171000 5202 LIFE INSURANCE E 984.15 - 984.15 499.25 - - 984.15 601 7100 60171000 5203 ACCIDENTAL DEATH DISMEMBER E 224.64 - 224.64 113.78 - - 224.64 601 7100 60171000 5204 LT/ST DISABILITY E 3,317.62 - 3,317.62 1,687.09 - - 3,317.62 601 7100 60171000 5205 FICA/MEDICARE E 12,720.61 - 12,720.61 7,237.14 - - 12,720.61 601 7100 60171000 5206 CALPERS RETIREMENT E 284,409.31 - 284,409.31 154,025.95 - - 284,409.31 601 7100 60171000 5208 WORKERS' COMPENSATION E 38,425.01 - 38,425.01 21,811.38 - - 38,425.01 601 7100 60171000 5209 DEFERRED COMPENSATION E 51,020.50 - 51,020.50 28,152.47 - - 51,020.50 601 7100 60171000 5211 RETIREE HEALTH SAVINGS E 21,270.89 - 21,270.89 11,258.70 - - 21,270.89 601 7100 60171000 5212 UNEMPLOYMENT E 3,509.13 - 3,509.13 1,991.25 - - 3,509.13 601 7100 60171000 5214 FRINGE BENEFITS E - - - 11,246.79 - - - 650 7500 65075000 5101 FULL-TIME SALARIES E 162,806.80 - 162,806.80 86,546.96 - - 162,806.80 650 7500 65075000 5104 TEMPORARY SALARIES E - - - 2,599.90 - - - 650 7500 65075000 5201 HEALTH/DENTAL INSURANCE E 28,781.52 - 28,781.52 - - - 28,781.52 650 7500 65075000 5202 LIFE INSURANCE E 179.74 - 179.74 97.35 - - 179.74 650 7500 65075000 5203 ACCIDENTAL DEATH DISMEMBER E 41.03 - 41.03 22.20 - - 41.03 650 7500 65075000 5204 LT/ST DISABILITY E 660.55 - 660.55 361.20 - - 660.55 650 7500 65075000 5205 FICA/MEDICARE E 2,360.70 - 2,360.70 1,294.08 - - 2,360.70 650 7500 65075000 5206 CALPERS RETIREMENT E 18,918.15 - 18,918.15 28,032.64 - - 18,918.15

Page 39 of 40 ends

FUND DEPT/DIV ORG OBJ ACCOUNT DESCRIPTION TYPE FY26 ORIGINAL APPROP FY26 XFER/ADJ FY26 REVISED
BUDGET
FY26 YTD

EXPENDED
FY26

ENCUMBRANCES
FY26 MID-YEAR

ADJ/REQUESTS
FY26 MID-YEAR

REVISED BUDGET PROJECT STRING

ATTACHMENT B
FY 2026 MID-YEAR ADJUSTMENTS - DETAIL
650 7500 65075000 5208 WORKERS' COMPENSATION E 7,130.94 - 7,130.94 3,904.60 - - 7,130.94 650 7500 65075000 5209 DEFERRED COMPENSATION E 8,140.34 - 8,140.34 4,327.36 - - 8,140.34 650 7500 65075000 5211 RETIREE HEALTH SAVINGS E 5,356.14 - 5,356.14 3,218.38 - - 5,356.14 650 7500 65075000 5212 UNEMPLOYMENT E 651.23 - 651.23 356.66 - - 651.23 840 1900 84019000 5205 FICA/MEDICARE E - - - 1,172.86 - - - 840 1900 84019000 5207 PENSION AUGMENTATION E - - - 80,886.87 - - - 840 1900 84019000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 242.40 - - - 845 9170 84591700 5101 FULL-TIME SALARIES E - - - 9,265.94 - - - 845 9170 84591700 5201 HEALTH/DENTAL INSURANCE E - - - 3,343.66 - - - 845 9170 84591700 5202 LIFE INSURANCE E - - - (7.56) - - - 845 9170 84591700 5203 ACCIDENTAL DEATH DISMEMBER E - - - 2.08 - - - 845 9170 84591700 5204 LT/ST DISABILITY E - - - (7.16) - - - 845 9170 84591700 5205 FICA/MEDICARE E - - - 3,283.50 - - - 845 9170 84591700 5206 CALPERS RETIREMENT E - - - 19,681.55 - - - 845 9170 84591700 5208 WORKERS' COMPENSATION E - - - 3,081.64 - - - 845 9170 84591700 5209 DEFERRED COMPENSATION E - - - 469.89 - - - 845 9170 84591700 5211 RETIREE HEALTH SAVINGS E - - - 490.47 - - - 845 9170 84591700 5212 UNEMPLOYMENT E - - - 906.24 - - - 845 9170 84591700 5626 INTEREST EXPENSE E - - - 71,239.34 - - - 845 9170 84591700 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 19,262.27 - - - 845 9170 84591700 5910 TRAVEL/MILEAGE REIMBURSEMENT E - - - 379.93 - - - 850 2500 85025000 5710 PROFESSIONAL/TECHNICAL SERVICE E 26,000.00 2,308.13 28,308.13 5,449.13 20,550.87 - 28,308.13 991 2400 99124000 5655 ASSESSMENTS E - - - 60.75 - - - 991 8000 99180000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - 250.00 - 15,000.00 15,000.00 992 8000 99280000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - 3,125.00 3,125.00 992 8000 99280000 7000 DEBT SERVICES - PRIN E - - - 7,390,000.00 - 7,390,000.00 7,390,000.00 992 8000 99280000 7100 DEBT SERVICE - INTEREST E - - - 2,053,875.89 - 3,943,266.14 3,943,266.14 993 8000 99380000 5710 PROFESSIONAL/TECHNICAL SERVICE E - - - - - 350.00 350.00 993 8000 99380000 7000 DEBT SERVICE - PRIN E - - - - - 845,000.00 845,000.00 993 8000 99380000 7100 DEBT SERVICE - INTEREST E - - - 201,678.13 - 403,356.26 403,356.26 303,529,856.14 165,597,568.30 469,127,424.44 185,538,058.56 11,503,900.13 7,076,123. 66 476,203,548.10 (32,115,539.86) 151,925,797.23 119,810,257.37 32,097,857.93 11,504,225.13 (80,703,665.07) 39,106,592.30

EXPENDITURE TOTAL

GRAND TOTAL

Page 40 of 40 ends

Resolution No. 26-XX

Page 1 ends

RESOLUTION NO. 26-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, AMENDING RESOLUTION 25-68

ESTABLISHING TERMS AND CONDITIONS OF

EMPLOYMENT AND A COMPENSATION SCHEDULE FOR

REPRESENTED AND NON-REPRESENTED REGULAR AND

PROBATIONARY EMPLOYEES OF THE CITY
WHEREAS, the City Council is desirous of amending the Classification and Compensation Schedule for Represented and Non-Represented Full Time Employees;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE, DETERMINE AND FIND AS FOLLOWS;
Section 1. The 2000 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Director H - $94.35
M - $16,354.24
H - $99.07
M - $17,171.96
H - $104.02
M - $18,030.57
H - $109.22
M - $18,932.10
H - $114.68
M - $19,878.71
H - $120.42
M - $20,872.65
Senior Director H - $103.79
M - $17,989.68
H - $108.98
M - $18,889.17
H - $114.42
M - $19,833.62
H - $120.15
M - $20,825.33
H - $126.15
M - $21,866.59
H - $132.46
M - $22,959.93
Assistant City
Manager
H - $115.06
M - $19,944.21
H - $120.82
M - $20,941.42
H - $126.86
M - $21,988.46
H - $133.20
M - $23,087.89
H - $139.86
M - $24,242.29
H - $146.85
M - $25,454.41
Section 2. The 2100 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Assistant Chief
of Police
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Chief of Police H - $94.35
M - $16,354.24
H - $99.07
M - $17,171.96
H - $104.02
M - $18,030.57
H - $109.22
M - $18,932.10
H - $114.68
M - $19,878.71
H - $120.42
M - $20,872.65
Section 3. The 2200 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Rate
Director of
AVAQMD
H - $114.68
M - $19,878.71
City Manager H - $161.72
M - $28,031.25
Resolution No. 26-XX

Page 2 ends

Section 4. The 3000 series employee group and the following Tier 1 (employees hired in the following positions on or before June 30, 2019) classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Planner H - $47.48
M - $8,229.98
H - $49.85
M - $8,641.47
H - $52.35
M - $9,073.52
H - $54.96
M - $9,527.20
H - $57.71
M - $10,003.57
H - $60.60
M - $10,503.74
Analyst H - $47.48
M - $8,229.98
H - $49.85
M - $8,641.47
H - $52.35
M - $9,073.52
H - $54.96
M - $9,527.20
H - $57.71
M - $10,003.57
H - $60.60
M - $10,503.74
Engineer H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Senior Planner H - $57.85
M - $10,027.55
H - $60.74
M - $10,528.94
H - $63.78
M - $11,055.40
H - $66.97
M - $11,608.18
H - $70.32
M - $12,188.58
H - $73.83
M - $12,797.98
Section 5. The 3000 series employee group and the following Tier 2 classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Senior Planner H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Manager H - $61.33
M - $10,630.30
H - $64.40
M - $11,161.80
H - $67.61
M - $11,719.89
H - $71.00
M - $12,305.87
H - $74.55
M - $12,921.18
H - $78.27
M - $13,567.23
Chief Building
Official
H - $66.05
M - $11,447.95
H - $69.35
M - $12,020.34
H - $72.82
M - $12,621.40
H - $76.46
M - $13,252.44
H - $80.28
M - $13,915.07
H - $84.29
M - $14,610.81
Senior Engineer H - $66.05
M - $11,447.95
H - $69.35
M - $12,020.34
H - $72.82
M - $12,621.40
H - $76.46
M - $13,252.44
H - $80.28
M - $13,915.07
H - $84.29
M - $14,610.81
City Clerk H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Assistant City
Attorney
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Assistant
Director
H - $75.48
M - $13,083.42
H - $79.26
M - $13,737.60
H - $83.22
M - $14,424.45
H - $87.38
M - $15,145.67
H - $91.75
M - $15,902.94
H - $96.34
M - $16,698.11
Section 6. The 4000 series employee group and the following Tier 1 (employees hired in the following positions on or before June 30, 2019) classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Administrative
Assistant
H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Resolution No. 26-XX

Page 3 ends

Section 7. The 4000 series employee group and the following Tier 2 classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Specialist I H - $33.80
M - $5,858.67
H - $35.49
M - $6,151.60
H - $37.26
M - $6,459.18
H - $39.13
M - $6,782.14
H - $41.08
M - $7,121.25
H - $43.14
M - $7,477.32
Administrative
Assistant
H - $33.80
M - $5,858.67
H - $35.49
M - $6,151.60
H - $37.26
M - $6,459.18
H - $39.13
M - $6,782.14
H - $41.08
M - $7,121.25
H - $43.14
M - $7,477.32
Coordinator I H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Specialist II H - $37.74
M - $6,541.69
H - $39.63
M - $6,868.79
H - $41.61
M - $7,212.23
H - $43.69
M - $7,572.85
H - $45.87
M - $7,951.49
H - $48.17
M - $8,349.03
Accountant H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Assistant City
Clerk
H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Coordinator II H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Engineering
Technician
H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Specialist II H - $39.30
M - $6,812.85
H - $41.27
M - $7,153.49
H - $43.33
M - $7,511.16
H - $45.50
M - $7,886.71
H - $47.78
M - $8,281.07
H - $50.16
M - $8,695.12
Accountant H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Inspector H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Senior Specialist H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
IT Analyst I H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior
Engineering
Technician
H - $49.16
M - $8,521.13
H - $51.62
M - $8,947.19
H - $54.20
M - $9,394.54
H - $56.91
M - $9,864.25
H - $59.75
M -$10,357.45
H - $62.74
M - $10,875.32
Senior Inspector H - $49.16
M - $8,521.13
H - $51.62
M - $8,947.19
H - $54.20
M - $9,394.54
H - $56.91
M - $9,864.25
H - $59.75
M -$10,357.45
H - $62.74
M - $10,875.32
Coordinator III H - $50.39
M - $8,734.14
H - $52.91
M - $9,170.85
H - $55.55
M - $9,629.40
H - $58.33
M - $10,110.88
H – $61.25
M - $10,616.41
H - $64.31
M - $11,147.26
IT Analyst II H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Resolution No. 26-XX

Page 4 ends

Inspector H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Purchasing Agent H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Senior Specialist H - $42.46
M - $7,359.43
H - $44.58
M - $7,727.40
H - $46.81
M - $8,113.78
H - $49.15
M - $8,519.46
H - $51.61
M - $8,945.43
H - $54.19
M - $9,392.72
Analyst H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Coordinator III H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
IT Analyst I H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Planner H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior Engineering
Technician
H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Senior Inspector H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Supervisor H - $47.18
M - $8,177.15
H - $49.53
M - $8,586.02
H - $52.01
M - $9,015.31
H - $54.61
M - $9,466.08
H - $57.34
M - $9,939.37
H - $60.21
M - $10,436.34
Assistant Manager H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
IT Analyst II H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior Analyst H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior
Coordinator
H - $51.89
M - $8,994.83
H - $54.49
M - $9,444.57
H - $57.21
M - $9,916.81
H - $60.07
M - $10,412.63
H - $63.08
M - $10,933.28
H - $66.23
M - $11,479.95
Senior IT
Analyst
H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Engineer H - $56.61
M - $9,812.55
H - $59.44
M - $10,303.17
H - $62.41
M - $10,818.34
H - $65.53
M - $11,359.23
H - $68.81
M - $11,927.18
H - $72.25
M - $12,523.55
Section 8. The 5000 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Technician I H - $28.30
M - $4,905.33
H - $29.71
M - $5,149.73
H - $31.21
M - $5,409.73
H - $32.76
M - $5,678.40
H - $34.41
M - $5,964.40
H - $36.13
M - $6,262.53
Resolution No. 26-XX

Page 5 ends

Dispatcher
Trainee
H - $31.21
M - $5,409.73
Technician II H - $33.02
M - $5,723.47
H - $34.67
M - $6,009.47
H - $36.41
M - $6,311.07
H - $38.22
M - $6,624.80
H - $40.13
M - $6,955.87
H - $42.14
M - $7,304.27
Dispatcher H - $33.02
M - $5,723.47
H - $34.67
M - $6,009.47
H - $36.41
M - $6,311.07
H - $38.22
M - $6,624.80
H - $40.13
M - $6,955.87
H - $42.14
M - $7,304.27
Security Guard
(Armed)
H - $36.41
M - $6,311.07
H - $38.22
M - $6,624.80
H - $40.13
M - $6,955.87
H - $42.14
M - $7,304.27
H - $44.25
M - $7,670.00
H - $46.46
M - $8,053.07
Police Recruit H - $48.78
M - $8,455.20
· Section 9. The 5100 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Police Officer H - $51.89
M - $8,994.27
H - $54.49
M - $9,444.93
H - $57.22
M - $9,918.13
H - $60.07
M - $10,412.13
H - $63.07
M - $10,932.13
H - $66.23
M - $11,479.87
Sergeant H - $61.33
M - $10,630.53
H - $64.40
M - $11,162.67
H - $67.62
M - $11,720.80
H - $70.99
M - $12,304.93
H - $74.55
M - $12,922.00
H - $78.28
M - $13,568.53
Section 10. The 6000 series employee group and the following classifications are established in the Compensation Schedule effective February 22, 2026 as follows:

Classification Step I Step 2 Step 3 Step 4 Step 5 Step 6 Fleet Technician H - $26.48
M - $4,589.87
H - $27.81
M - $4,820.40
H - $29.20
M - $5,061.33
H - $30.65
M - $5,312.67
H - $32.19
M - $5,579.60
H - $33.79
M - $5,856.93
Maintenance
Worker I
H - $26.48
M - $4,589.87
H - $27.81
M - $4,820.40
H - $29.20
M - $5,061.33
H - $30.65
M - $5,312.67
H - $32.19
M - $5,579.60
H - $33.79
M - $5,856.93
Utility
Maintenance
Worker I
H - $27.83
M - $4,823.87
H - $29.22
M - $5,064.80
H - $30.67
M - $5,316.13
H - $32.21
M - $5,583.07
H - $33.81
M - $5,860.40
H - $35.51
M - $6,155.07
Maintenance
Worker II
H - $29.28
M - $5,075.20
H - $30.73
M - $5,326.53
H - $32.28
M - $5,595.20
H - $33.89
M - $5,874.27
H - $35.58
M - $6,167.20
H - $37.36
M - $6,475.73
Senior
Custodian
H - $30.00
M - $5,200.00
H - $31.50
M - $5,460.00
H - $33.07
M - $5,732.13
H - $34.72
M - $6,018.13
H - $36.46
M - $6,319.73
H - $38.29
M - $6,636.93
Utility
Maintenance
Worker II
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Light Equipment
Mechanic
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Heavy Equipment
Operator
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Resolution No. 26-XX

Page 6 ends

Facilities
Maintenance
Worker
H - $30.75
M - $5,330.00
H - $32.30
M - $5,598.67
H - $33.91
M - $5,877.73
H - $35.60
M - $6,170.67
H - $37.39
M - $6,480.93
H - $39.25
M - $6,803.33
Lead Maintenance
Worker
H - $33.12
M - $5,740.80
H - $34.77
M - $6,026.80
H - $36.51
M - $6,328.40
H - $38.34
M - $6,645.60
H - $40.25
M - $6,976.67
H - $42.26
M - $7,325.07
Lead Heavy
Equipment
Operator
H - $33.12
M - $5,740.80
H - $34.77
M - $6,026.80
H - $36.51
M - $6,328.40
H - $38.34
M - $6,645.60
H - $40.25
M - $6,976.67
H - $42.26
M - $7,325.07
Lead Utility
Maintenance
Worker
H - $34.74
M - $6,021.60
H - $36.48
M - $6,323.20
H - $38.31
M - $6,640.40
H - $40.22
M - $6,971.47
H - $42.23
M - $7,319.87
H - $44.34
M - $7,685.60
Heavy
Equipment
Mechanic
H - $34.74
M - $6,021.60
H - $36.48
M - $6,323.20
H - $38.31
M - $6,640.40
H - $40.22
M - $6,971.47
H - $42.23
M - $7,319.87
H - $44.34
M - $7,685.60
Traffic Signal
Technician
H - $36.55
M - $6,335.33
H - $38.38
M - $6,652.53
H - $40.30
M - $6,985.33
H - $42.31
M - $7,333.73
H - $44.43
M - $7,701.20
H - $46.65
M - $8,086.00
Lead Mechanic H - $38.36
M - $6,649.07
H - $40.27
M - $6,980.13
H - $42.28
M - $7,328.53
H - $44.40
M - $7,696.00
H - $46.62
M - $8,080.80
H - $48.94
M - $8,482.93
Traffic Signal
Electrician
H - $49.15
M - $8,519.33
H - $51.61
M - $8,945.73
H - $54.19
M - $9,392.93
H - $56.90
M - $9,862.67
H - $59.75
M -$10,356.67
H - $62.74
M - $10,874.93
Section 11. The 8000 series employee group classifications are established in the Temporary Hourly Compensation Schedule effective February 22, 2026 as follows:

Classification
Step 1 Step 2 Step 3 Step 4
Recreation Program Leader $18.31 $19.23 $20.19 $21.20
Senior Recreation Program Leader $22.26 $23.37 $24.54 $25.77 Youth Program Leader $18.31 $19.23 $20.19 $21.20
Senior Youth Program Leader $22.26 $23.37 $24.54 $25.77 Art Program Leader $18.31 $19.23 $20.19 $21.20
Senior Art Program Leader $22.26 $23.37 $24.54 $25.77
Special Events Assistant $18.31 $19.23 $20.19 $21.20
Stage Assistant $18.31 $19.23 $20.19 $21.20
Senior Stage Assistant $22.26 $23.37 $24.54 $25.77
Maintenance Assistant $18.31 $19.23 $20.19 $21.20
Senior Maintenance Assistant $22.26 $23.37 $24.54 $25.77 Facilities Assistant $18.31 $19.23 $20.19 $21.20
Senior Facilities Assistant $22.26 $23.37 $24.54 $25.77 Ranger $18.31 $19.23 $20.19 $21.20
Senior Ranger $22.26 $23.37 $24.54 $25.77
Office Assistant $22.26 $23.37 $24.54 $25.77
Senior Office Assistant $27.06 $28.41 $29.83 $31.32
Media Assistant $22.26 $23.37 $24.54 $25.77
Senior Media Assistant $27.06 $28.41 $29.83 $31.32
Resolution No. 26-XX

Page 7 ends

Technical Assistant $22.26 $23.37 $24.54 $25.77
Senior Technical Assistant $27.06 $28.41 $29.83 $31.32
Security Assistant $22.26 $23.37 $24.54 $25.77
Security Officer $27.06 $28.41 $29.83 $31.32
Senior Security Officer $32.89 $34.53 $36.26 $38.07
Lifeguard I $21.20
Lifeguard II $24.38
Sr. Lifeguard $26.82
Senior Aquatic Program Leader $30.83
Undergraduate Intern $27.06
Graduate Intern $31.33
Homeless and Community Safety Liaison $27.47 - $53.79 Senior Production Assistant $32.05 - $54.94 Project Assistant $32.05 - $54.94
Retired Annuitant Reserve Officer $51.89 - $66.23 Section 12. Addition of 21 Full-Time Equivalent (FTE) Position to the 2025-2026 fiscal year effective February 22, 2026 as follows: Twenty (20) FTE positions added to the Lancaster Police Department and one (1) FTE position added to the Community Development Department, increasing the City of Lancaster’s total FTE count from 337 to 358.

Section 13. Effective February 22, 2026 as follows: Pursuant to Government Code sections 53201(b) and 53205, continuation of health and welfare benefits and payment of the premiums, dues or other charges for such health and welfare benefits is hereby authorized for former council members who served in office after January 1, 1981, and whose total service at the time of termination is not less than 12 years. Pursuant to Government Code sections 53201(b) and 53205, continuation of health and welfare benefits is further authorized for former council members (and spouses) who completed one or more terms of office, but less than 12 years, and who agree to and do pay the full costs of the health and welfare benefits.

Section 14. Continuation of Other Benefits. All other existing benefits for 8000 series, 6000 series, 5100 series, 5000 series, 4000 series, 3000 series, 2200 series, 2100 series, and 2000 series employees not conflicting with the above changes shall remain in effect until changed by the City through appropriate City Council action.

Section 15. Any Resolutions in conflict with provisions stated herein shall be considered superseded by the provisions contained within this Resolution.

STAFF REPORT
City of Lancaster
NB 2
2/24/2026
TN
Date:February 24, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Fiscal Year 2024/25 Financial Audit
Recommendation:

Receive audited annual financial report for the City of Lancaster, CA, Fiscal Year ending June 30, 2025.

G.C. Section 84308: No
Fiscal Impact:

There is no fiscal impact on the City of Lancaster, CA
Background:

The City of Lancaster has recently completed its annual financial audit for the fiscal year ending June 30, 2025. The audit was completed by CliftonLarsonAllen LLP (CLA). The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. These procedures include a review of internal controls, testing of transactions, and review of the financial statements for the auditors to express an opinion on the financial statements. Based on the audit, CLA expressed that the financial statements as of June 30, 2025, present fairly, in all material respects, the financial position of the City of Lancaster.

In addition to the financial statements, the auditors issued an Audit Communication Letter, Government Auditing Standards Letter, and an Appropriations Limit Letter. The Audit Communication Letter (attached) aims to communicate significant audit matters (if any) to the City Council. No significant audit matters were identified as a result of the audit procedures.

The Government Letter (attached) aims to communicate the auditor’s report on internal controls over financial reporting. No deficiencies in internal controls or material weaknesses were identified. Lastly, the attached Appropriations Limit Letter aims to communicate any exceptions to the Appropriations Limit. No exceptions were noted.
2 3
1 3
Attachment:

City of Lancaster Annual Financial Report for Fiscal Year Ending June 30, 2025 Audit Communication Letter dated February 11, 2026
Government Auditing Standards Letter dated February 11, 2026 Appropriations Limit Letter dated February 19, 2026

CITY OF LANCASTER

ANNUAL COMPREHENSIVE FINANCIAL REPORT
WITH INDEPENDENT AUDITOR’S REPORT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2025

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

PRINCIPAL CITY OFFICIALS IX

ORGANIZATION CHART X

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 5

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 14
STATEMENT OF ACTIVITIES 15

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 17

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 19

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 20

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE STATEMENT OF ACTIVITIES 22

BUDGETARY COMPARISON STATEMENTS
GENERAL FUND 23
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND 24

TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL
REVENUE FUND 25
MEASURE R SPECIAL REVENUE FUND 26

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 27

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 28
STATEMENT OF CASH FLOWS 29

FIDUCIARY FUNDS
STATEMENT OF NET POSITION 30
STATEMENT OF CHANGES IN NET POSITION 31
NOTES TO BASIC FINANCIAL STATEMENTS 32

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS PENSION PLANS

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS 86
SCHEDULE OF CONTRIBUTIONS 88

PARS PENSION PLAN

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS 90
SCHEDULE OF CONTRIBUTIONS 92

OTHER POSTEMPLOYMENT BENEFITS PLAN

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS 94
SCHEDULE OF CONTRIBUTIONS 95

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 100

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 108

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

OTHER SPECIAL REVENUE FUNDS

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX 116
LANDSCAPE MAINTENANCE DISTRICT 117
HOUSING AND COMMUNITY DEVELOPMENT 118
HOME PROGRAM 119
PROPOSITION A 120
BIKEWAY IMPROVEMENT 121
PROPOSITION C 122
FEDERAL GRANTS 123
STATE GRANTS 124
PARKS DEVELOPMENT 125
DEVELOPER FEES - SIGNALS 126
DEVELOPER FEES - DRAINAGE 127
RECYCLED WATER 128
BIOLOGICAL IMPACT FEES 129
TRAFFIC IMPACT FEES 130
AQMD 131
LANCASTER DRAINAGE MAINTENANCE DISTRICT 132
TRAFFIC SAFETY 133
LA COUNTY REIMBURSEMENT 134
MEASURE H 135
MTA GRANT 136
URBAN STRUCTURE PROGRAM 137
SEWER MAINTENANCE DISTRICT 138

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

PROPOSITION 1B 139
PROPOSITION 42 140
MEASURE M 141
LANCASTER LIGHTING DISTRICT 142

CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 143
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 145

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 149

FINANCIAL TRENDS
NET POSITION BY COMPONENT 150
CHANGES IN NET POSITION 151
FUND BALANCES, GOVERNMENTAL FUNDS 154
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS 155

REVENUE CAPACITY
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS 156

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 157
DIRECT AND OVERLAPPING PROPERTY TAX RATES 158
PRINCIPAL PROPERTY TAXPAYERS 159
PROPERTY TAX LEVIES AND COLLECTIONS 160

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 161
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 162
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 163 LEGAL DEBT MARGIN INFORMATION 164

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

PLEDGED-REVENUE COVERAGE 165

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 166
TOP 10 PRINCIPAL EMPLOYERS 167

OPERATING INFORMATION
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 168 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM 169

INTRODUCTORY SECTION

R. REX PARRIS RAJ MALHI

MAYOR COUNCILMEMBER

MARVIN CRIST LAUREN HUGHES-LESLIE

VICE MAYOR COUNCILMEMBER

KEN MANN TROLIS NIEBLA

COUNCILMEMBER CITY MANAGER

RODRICK ARMALIN

CHIEF OF POLICE
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.gov
February 11, 2026
Honorable Mayor and Members of the City Council:

We are pleased to submit for your consid eration the Annual Comprehensive Financial Report (ACFR) of the City of Lancaster, Cali fornia, for the fiscal year that ended June 30, 2025. This document has been prepared by the City’s Financ e Department, and responsibility for the accuracy and completeness of the presentation, including all disclosures, rests with City staff. To provide a reasonable basis for making these representations, the City of Lancaster management has established a comprehensive internal control framework des igned both to protect the government’s assets from loss, theft, or misuse and to compile sufficient, reliable information to prepare Lancaster’s financial statements.

The cost of internal controls should not out weigh their benefits; t herefore, Lancaster’s internal controls have been designed to pr ovide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, management asserts that this financial report is complete and reliable in all material respects. This repor t includes the annual audit report of the City's independent auditors, Clifton Larson Allen LLP. All disclosures necessary to understand the City's financial activities have been included.

The data is designed to factually report the City's financia l condition and to present the results of City operations as measured by activity among the various fund groups in an easily readable and understandable style. All disclosures necessary for the reader to gain an understanding of the City's financial affairs have been incl uded. Financial statements are prepared in accordance with GAAP, as promulgated by the Government Accounting Standards Board.

The ACFR is presented in three sections: introduction, finances, and statistics. The introduction includes this transmittal letter, t he City's organizational chart, and a list of principal officers. The financial section includes the basic financial statements, including the management’s discussion and analysis, the combined and individual fund statements and schedules, and the auditor's report on the financial statements and schedules. The statistical section includes selected multi-year financial and demographic information.

This ACFR incorporates all City funds, including the separate entities under the direction of the City Council. These separate entities include the Lancaster Successor Agency and Lancaster Choice Energy. Additionally, the governmental funds section contains the (i)
component units of the Lancaster Housing Au thority, Lancaster Community Services Foundation, Lancaster Public Financing Authority, and Lancaster Power Authority.

The City provides a broad range of services associated with the municipality. These services include highways, streets, drainage, sewer, electricity, and infrastructure construction and maintenance; planning and zoning; and parks , recreation, and cultural activities. Law enforcement, fi re protection, the library, and animal control services are provided under contract with Los Angeles County. Water, sanitation, and schools are funded by special districts, not under City control.

City of Lancaster Profile
Lancaster is located north of Los Angeles C ounty in the Antelope Valley, about seventy miles from downtown Los Angeles. The Antelope Valley is separated from the Los Angeles Basin by the Angeles National Forest. The City is bordered by several unincorporated Los Angeles County communities and the City of Palmdale. Lancaster is served by State Route 14 and by two major grade-separated east-we st thoroughfares: Avenue H and Avenue L.

With 94 square miles of residential communities, recreation and art venues, hi-tech industry, retail businesses, and open, natural space, Lancaster fosters an exciting atmosphere for living and a place of limitless opportunity for business.

The City was incorporated on November 22, 1977, and on April 13, 2010, voters approved Measure C, which granted the City its Charter City status. The Mayor and City Council are elected at large. Lancaster has grown significantly in size and diversity over the last 42 years. According to the 2010 Census, Lancaster’s population was 156,633, an increase of nearly thirty-two percent over the 2000 Cens us total. The 2022 US Census showed the population remaining steady at 169,185.

As the first three-time recognized “Most Business-Friendly City” by the Los Angeles County Economic Development Corporation, Lancaster understands that communities and families thrive when good jobs are created. Because many businesses can choose to locate those jobs anywhere, job creation depends on business-friendly practices. The City today attracts national and local companies from diverse fields of industr y. Affordable housing prices attract families to our close-knit community.

In fact, even as Lancaster grows, we have retained a family-focused, hometown spirit.

Thousands of visitors come to Lancaster in the spring to enjoy our beautiful poppy and wildflower fields among the world-famous Joshua trees. The film industry has captured the essence of the Antelope Valley in multitudes of movies, television shows, and music videos shot here each year, bringing many additional vi sitors to patronize our hotels and retail establishments.
(ii)
Strategic Initiatives
Public Safety Enhancements
The safety and well-being of our residents remain
a top priority for the City of Lancaster. Under the
leadership of our first Chief of Police, the
Lancaster Police Department (LPD) continues to
strengthen its hybrid po licing model—combining
local control, communi ty-led strategies, and
regional partnerships to meet the evolving public
safety needs of our community.

Over the past year, LPD has expanded
operational capacity, increased citywide visibility,
and enhanced coordination with the Los Angeles
County Sheriff’s department in areas that remain contractually supported. The Department’s police facility is fully operat ional and serves as a central hub for patrol operations, investigations, training, and administrative functions.

The City continues to invest in modern equi pment and technology to support proactive policing. These investments include upgraded police vehicles, enhanced traffic enforcement capabilities, and expanded use of data-driven tools that improve situational awareness and response times. The Intelligence and Crime Center (ICC) remains a critical operational asset, providing r eal-time data integration, analytics, and communications support to strengthen coordination and informed decision-making.

LPD has also implemented its Drone as a First
Responder (DFR) program, allowing trained
personnel to deploy drones to active incidents
ahead of patrol units. This capability provides
real-time aerial intelligence, enhances officer
and public safety, and improves response
efficiency during critical situations.

In addition, the Department continues to
expand its School Resource Officer (SRO)
program, strengthening re lationships with
students, families, and school staff while main taining a visible law enforcement presence focused on care, connection, and safety within Lancaster schools. (iii)
Through continued investment in personnel, mobility, technology, and community-based programs such as Business Watch and Neighborhood Watch, Lancaster is building a strong foundation for long-term public safety and neighborhood confidence.

Hydrogen City Advancements
Lancaster continues to advance its vision of becoming the nation’s first hydrogen city through strategic partnerships and public-sector leadership in clean energy development.

A major milestone in this effort is the launch of First Public Hydrogen (FPH2), a joint initiative with the City of Industry that establishes a new model for publicly led hydrogen production and market development.

The City is also advancing collaboration with
HyMax for hydrogen-powered fuel cells for backup
traffic signals. These units provide zero-emission,
reliable power to intersections during outages,
supporting Lancaster’s broader municipal
decarbonization and traffic safety initiatives.

Together, these initiatives reinforce Lancaster’s
leadership in the em erging hydrogen economy,
supporting sustainability goals, expanding
industrial opportunity, and laying the groundwork
for future job creation.

Economic Development
Lancaster’s economic development strategy continues to focus on business growth, industrial expansion, and workforce readiness.

The City remains committed to supporting
both existing businesses and new investment
through business-friendly policies and
targeted economic development initiatives.

New industrial development continues to
expand Lancaster’s employment base,
strengthening the City’s position as a
destination for advanced manufacturing,
logistics, and emerging industries. To further
(iv)
support local success, the City has increased it s focus on business spotlights, highlighting local employers and entrepreneurs while strengthening community awareness and engagement.

Workforce training and job-r eadiness programs remain a priority, ensuring residents are prepared for employment opportunities tied to Lancaster’s growing industrial and clean energy sectors. By aligning workforce developm ent with business attraction, the City is creating pathways to upward mobility and long-term economic stability.

Community Development
The City of Lancaster continues to modernize development services through innovation, technology, and process improvements designed to support efficient project review and improved customer service.

As part of this effort, the City has implemented
City Detect, an advanced inspection and
compliance technology that improves
documentation, accuracy, and response times
in the field. In addition, the City is introducing a
new AI-powered planning system to support
faster plan review, greater consistency, and
enhanced communication with applicants and
developers.

These advancements allow staff to focus more
effectively on problem-solving, collaboration,
and long-term planning while maintaining st rong development standards. Together, these tools support a more transparent, responsi ve, and efficient Community Development process for residents and businesses alike.

Enhancing Quality of Life Through Technology and Innovation Lancaster continues to invest in technolog y that improves service delivery, enhances operational efficiency, and str engthens the overall resident ex perience. Ongoing efforts to modernize systems and improv e connectivity across departments support a more responsive and accessible local government.
(v)
As part of this commitment, the City contin ues expanding the use of Citibot on the City website, providing residents with an easy way to report concerns, sear ch for information, and receive timely responses.

These tools streamline communication,
improve service coordination, and help
ensure resident needs are addressed
efficiently.

Through thoughtful integration of technology,
Lancaster is enhancing how residents
interact with City services while building a
smarter and more us er-friendly municipal
environment.

Public Engagement and Inclusivity
The City of Lancaster remains committed to fostering strong connections between residents, neighborhoods, and City government. Community events, outreach efforts, and public programming continue to serve as important tools for encouraging civic participation and strengthening community trust.

Renovations are underway at Samaritan’s
Purse Park to improve amenities and
accessibility for families and residents. In
addition, the City cont inues planning efforts
for a future aquatics center that will serve as
a major recreational and community
gathering space.

Expanded programming in parks and public
spaces ensures these areas remain active,
welcoming, and reflective of the diverse
community they serve.
(vi)
Beautification and Clean-Up Projects
Lancaster continues to prioritize neighborhood pride and cleanliness through the Team Up Lancaster program. This initiative brings together residents, businesses, schools, and community organizations to participate in c oordinated beautification efforts throughout the city. Through roadway adoptions, community cl ean-up days, graffiti removal, and illegal dumping prevention, Team Up Lancaster provides the structure, tools, and support needed to create visible neighborhood improvements.

These efforts strengthen community
ownership while reinforcing shared
responsibility for maintaining a clean and
welcoming city.

With new partnerships forming across
schools and volunteer groups, the
program continues to promote civic pride
and engagement—contributing to
cleaner streets and more vibrant
neighborhoods citywide.

Youth Development Initiatives
Investing in Lancaster’s youth remains a core City priority. The City continues to support programs that promote leadersh ip development, education, and meaningful real-world experience.

The IMPACT Initiative remains a cornerst one youth program, offering scholarship opportunities in exchange for volunteer service. Through hands -on experience and mentorship, participants gain valuable workforce skills while developing a strong connection to their community.

The Lancaster Community Center (LCC) conti nues to serve as a central hub for youth engagement, offering programming for children from infancy through their teenage years.

Educational enrichment, creative arts, STREAM-based learning, tutoring, and teen-focused activities provide opportunities for growth, exploration, and connection. (vii)
Through continued partnerships and program ex pansion, the City remains focused on preparing Lancaster’s youth for long-term su ccess, supporting a strong future for the community as a whole.

Respectfully,
George N. Harris II
Senior Director / Treasurer
Administrative Services Department
(viii)
City of Lancaster

CITY COUNCIL
R. Rex Parris Mayor
Marvin E. Crist Vice Mayor
Raj Malhi Council Member
Kenneth Mann Council Member
Lauren Hughes-Leslie Council Member

CITY MANAGERS/DIRECTORS
Trolis Niebla City Manager
Larissa De La Cruz Assistant City Manager
Allison E. Burns City Attorney
George N. Harris II Senior Director/City Treasurer
Rodrick Armalin Chief of Police/Lancaster PD
Sonya Patterson Parks, Arts, Recreation &
Community Services Director
Marissa Diaz Public Works Director
Patti Garibay Community Development
Director

CITYY OF LANCASTER

PRINCIPAL CITY OFFICIALS
YEAR ENDED JUNE 30, 2025
(ix)

CITY OF LANCASTER

ORGANIZATION CHART
YEAR ENDED JUNE 30, 2025
(x)

FINANCI

AL SECTION

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CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEP
ENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Lancaster
Lancaster, 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 Lancaster (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, 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, and the respective budgetary comparisons for the General Fund, the Lancaster Housing Authority Special Revenue Fund, and the Transportation Development Authority Special Revenue Fund 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 (GAAS) and the standards appli cable 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 Auditors’ 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 f air 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 c ontrol relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Honorable Mayor and Members of the City Council
City of Lancaster
(2)
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.

Auditors’ 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 auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS 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, misrepr esentations, or the override of internal control.

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

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement 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 condit ions 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.

Honorable Mayor and Members of the City Council
City of Lancaster
(3)
Required Supplementary Information
Accounting principles generally accepted in the U nited States of America require that the management’s discussion and analysis, the schedules of changes in the net pension liability and related ratios and the schedules of contributions for the CalPERS and PARS pensions plans, and the schedule of changes in net OPEB liability and related ra tios, and the schedule of contributions - OPEB identified as required supplementary Information in the ac companying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statement s, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules 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 accor dance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsis tency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Honorable Mayor and Members of the City Council
City of Lancaster
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 11, 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 the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
February 11, 2026

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(5)

As management of the City of Lancaster, we offer readers of the City of Lancaster's financial statements this narrative overview and analysis of the financial activities of the City of Lancaster for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal.

Financial Highlights

 The General Fund revenues were $124,351,308
 The cost of the General Fund was $134,766,449
 The General Fund reported revenues in deficit of expenditures of $10,415,141  For the General Fund, actual resources available for appropriation (revenue inflows and fund balance) was greater than final budget by $3,339,175; while actual appropriations (outflows) were less than the final budget by $23,833,549

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City of Lancaster's basic financial statements. The City of Lancaster's basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financ ial statements, and 3) notes to the financial statements.

Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Lancaster's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Lancaster's assets, deferred outflows, liabilities, and deferred inflow of resources with the net difference reported as net position.

Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Lancaster is improving or deteriorating.

The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some item s that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).

Both of the government-wide financial statements distinguis h functions of the City of Lancaster that are principally supported by taxes and intergovernmental revenues (government activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Lancaster include General Government, Public Safety, Community Development, Parks, Recreation and Arts, Development Services, and Housing and Neighborhood Revitalization. The business-type activities include the Lancaster Power Authority and Lancaster Choice Energy.

The government-wide financial statements include the blending of separate legal entities: Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Financing Authority and Lancaster Power Authority. Although legally separate, these "component units" are important because the City of Lancaster is financially accountable fo r them. Separate statements are provided for the fiduciary activities of the Custodial Funds and Private Purpose Fund of the Lancaster Successor Agency.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(6)

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lancaster, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Lancaster can be divided into three categories: Governmental Funds, Proprietary Funds and Fiduciary Funds.

Governmental Funds. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the govern ment-wide financial statements. However, unlike the government-wide statements, governmental fund financ ial statements focus on near-term inflows and outflows of spendable resources, as well as on balanc es of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of Governmental Funds is na rrower than that of the government-wide financial statements, it is useful to compare the infor mation presented for Governmental Funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Lancaster maintains thirty-six individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, one debt service fund, and two special revenue funds, all of which are considered to be major funds. Data from the other thirty-two governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.

The City of Lancaster adopts an annual budget for its governmental funds. A fiscal year (FY) 24/25 budgetary comparison statement has been provided for each individual fund to demonstrate compliance with its budget appropriations.

Proprietary Funds. A Proprietary or Enterprise Fund is used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Lancaster uses enterprise funds to account for the activities of the Lancaster Power Authority and Lancaster Choice Energy.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for the Lancaster Power Authority and Lancaster Choice Energy.

Fiduciary Funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Lancaster's own programs.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statement.

Combining Statements. The combining statements referred to earlier in connection with non-major governmental are presented immediately following the notes.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(7)

Government-wide Financial Analysis

Our analysis focuses on the net position and changes in net position of the City’s governmental activities.

Governmental Activities. Governmental activities decreased the City of Lancaster’s net position by $15,748,830. This decrease is due to the large acquisitions and projects the City had within the fiscal year, such as the Midtown Education Center acquisition, Ave J/SR 14 interchange project, and the Municipal Stadium Renovation to name a few.

2024 2025
Expenses
Governmental Activities:

General Government 32,412,932 $ 34,540,164 $
Public Safety 47,567,575 49,956,125
Community Development 10,454,150 13,483,832
Parks, Recreation, and Arts 29,566,701 30,103,640 Development Services 82,783,437 85,811,177
Housing and Neighborhood Revitalization 30,338,926 1,174,767 Interest on Long-Term Debt 2,548,299 6,201,309 Total Primary Governmental Activities Expenses 235,672,020 221,271,014 Program Revenues (see Schedule 3)
Governmental Activities:

Charges for Services:

General Government 418,433 915,810
Public Safety 681,642 1,068,281
Community Development 303,034 431,712
Parks, Recreation, and Arts 2,935,778 3,267,104 Development Services 21,870,288 22,638,640
Housing and Neighborhood Revitalization - - Operating Grants and Contributions 48,104,288 49,976,733 Capital Grants and Contributions 19,419,463 10,701,979 Total Governmental Activities Program Revenues 93,732,926 89,000,259 Governmental Activities (141,939,094) (132,270,755) Other Changes in Net Assets
Governmental Activities:

Taxes:

Property Taxes 29,116,559 35,309,129
Franchise Taxes 11,491,150 9,498,487
Transient Occupancy Taxes 2,294,723 2,197,103 Business License Taxes 1,489,181 2,551,880
Other Taxes 770,718 891,101
Intergovernmental 218,014 276,046
Intergovernmental - State Shared Sales Taxes 47,258,659 53,750,509 Investment Earnings 6,536,775 6,542,350
Miscellaneous 2,335,357 4,361,484
Gain on Sale Property 2,520,183 166,026
Transfers 2,132,357 977,810
Total Governmental Activities 106,163,676 116,521,925 Change in Net Assets (35,775,418)$ (15,748,830)$
Fiscal Year

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(8)

Business-Type Activities. Business-type activities decreased the City of Lancaster’s net position by $2,372,017 primarily due to increased power purchase ex penses that are a result of major heat events during summer months that caused a huge increase in energy consumption. Revenues received are not offsetting the increased purchases. Collectables have also been a main topic this year and the City is finding ways to collect on outstanding accounts receivables.

Note: Support of First Public Hydrogen (FPH2) contributes to the reduction in total net position for LCE.

LCE advanced operating working capital for formation of FPH2 in the amount of $2,600,000 in FY25.

Total receivable to LCE from FPH2 as of June 30, 2025 is $2,645,918.

2024 2025
Expenses
Business-Type Activities:

Lancaster Power Authority 1,339,619 $ 1,339,671 $ Lancaster Choice Energy 79,779,572 87,233,960
Total Business-Type Activities Expenses 81,119,191 88,573,631 Program Revenues (see Schedule 3)
Business-Type Activities:

Charges for Services:

Lancaster Power Authority 1,725,547 2,040,460 Lancaster Choice Energy 81,950,853 84,281,387
Total Business-Type Activities Program Revenues 83,676,400 86,321,847 Business-Type Activities 2,557,209 (2,251,784) Other Changes in Net Assets
Business-Type Activities:

Investment Earnings 368,695 720,453
Miscellaneous 143,999 137,124
Transfers (2,132,357) (977,810)
Total Business-Type Activities (1,619,663) (120,233) Total Primary Government Revenues, Contributions,
and Transfers 82,056,737$ 86,201,614 $
Change in Net Assets
Business-Type Activities 937,546 $ (2,372,017) $ Fiscal Year

The following presents the cost of each of the Ci ty’s five largest programs – general government, public safety, parks, recreation and arts, development services, and community development - as well as each program’s net cost (total cost less revenues generated by the activities).

The net cost of services indicates that the over all cost of government is more than the revenues generated to support it. The City is not fully recovering the cost of these services with program revenues from user fees and other contributions. See the Statement of Activities for further detail on program revenues and general revenues.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(9)

City of Lancaster- Cost of Services
(in thousands)

Total Cost Net Cost
of Services of Services
General Government 34,540 $ (28,615) $
Public Safety 49,956 (47,079)
Community Development 13,483 (9,410)
Parks, Recreation and Arts 30,103 (26,533) Development Services 85,811 (13,521)
Housing and Neighborhood Revitalization 1,174 (909) Totals 215,067 $ (126,067) $

City of Lancaster Governmental Activities
Revenue and Expense by Source

Financial Analysis of the City’s Funds

The City of Lancaster uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

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Governmental Funds. The focus of the City of Lancaster's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lancaster's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City of Lancaster’s governmental funds reported combined ending fund balances of $211,755,627. This is an increase of $5,408,801 from last fiscal year mostly due to the City not expending past the approved budget.

The General Fund is the chief operating fund of the City of Lancaster. At the end of the current fiscal year, including transfers, the General Fund repor ted revenues and transfers-in in excess of expenditures and transfers-out resulting in a fund balance of $104,066,747. This is a decrease of $9,653,088 from last fiscal year in fund balance due to increases of transfers to internal service funds like Information Technology for needed upgrades or projects.

The Transportation Development Authority Fund is a special revenue fund used for local street and road improvements, congestion relief and traffic safety. At the end of the current fiscal year, Transportation Development Authority Fund reported expenditures and transfers out in excess of revenues and transfer-in of $13,105.

The Lancaster Housing Authority Fund is a special revenue fund used to capture activities performed by the Lancaster Housing Authority. At the end of the current fiscal year, the Lancaster Housing Authority Fund reported revenues and transfer-in in excess expenditures and transfers-out of $42,694,986.

The Lancaster Financing Authority is a debt service fund used to account for the various Lease Revenue Financings. At the end of the current fiscal year, Lancaster Financing Authority Fund reported revenues and transfers-in in excess of expenditures and transfer-out of $25,667,599.

The Measure R – Local Return Fund consists of voter-approved Los Angeles County transportation sales tax revenues administered by the Los Angeles County Metropolitan Transportation Authority (Metro) and allocated to the City of Lancaster to fund eligible local transportation and street improvement expenditures.

The Measure R – Highway Grant Fund consists of Los Angeles County transportation sales tax revenues administered by Los Angeles County Metropolitan Transportation Authority (Metro) and awarded to the City of Lancaster for eligible highway and arterial roadway capital improvement projects.

At the end of the current fiscal year, Measure R - Local and Highway Fund reported expenditures and transfers out in excess of revenues and transfer-in of $19,236,520. This fund deficit is directly related to the Avenue J, K, L and M/SR 138 interchange projects t hat the City is still waiting to be reimbursed on by Metro.

Proprietary Funds. The City of Lancaster’s proprietary funds provide the same type of information found in the government-wide financial statement, but in more detail. The City of Lancaster has two funds of this type: Lancaster Power Authority and Lancaster Choice Energy.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

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The net position of the Lancaster Power Authority and Lancaster Choice Energy at the end of the year was $8,318,114 a decrease over last year of $2,372,017. This is primarily due to higher power sales for Lancaster Choice Energy as a result of rate increases and high heat events during the summer months that increased energy consumption and sales.

General Fund Budgetary Highlights

The actual amount of expenditures for the General Fund at year-end were $23,833,549 less than the final budget to include transfers. Management works very hard to control expenditures, ensuring the city is fiscally sound. Managers citywide diligently tracked division and departmental budgets to ensure overruns did not occur. As a result of the decreased spending and increased revenues, the City was still able to see a net positive $27,172,724 in actuals over appropriations.

Capital Asset and Debt Administration

Capital Assets. At the end of FY 2025, the City had $918.1 million invested in a broad range of capital assets, including land, buildings, infrastructure, equipment, and intangible assets net of accumulated depreciation.

The City’s Capital Improvement Plan requested $6.4 milli on in new capital projects through fiscal year 2024-25 on new projects. Funding will come from current fund balances and projected revenues. The most significant projects include Ave J/SR 138 Interchange, the Municipal Stadium renovation among other citywide street improvements.

Capital Assets
(in Thousands)

Governmental Business-Type Total
Activities Activities Capital Assets
Land 45,723 $ - $ 45,723$ Structures and Improvements 91,514 - 91,514 Furniture and Equipment 22,498 - 22,498 Infrastructure 1,824,325 - 1,824,325 Construction in Progress 123,773 - 123,773 Right of Use Assets 4,708 - 4,708 Intangible Assets - 23,486 23,486 Accumulated Depreciation (1,194,397) (12,682) (1,207,079) Net Capital Assets 918,144 $ 10,804 $ 928,948 $

Note 6 provides a detailed analysis of the Capital Assets.

Long-Term Debt. At the end of the current fiscal year, the City of Lancaster’s total long-term debt increased by $63.9 million from the prior year. This increase is a result of new bonds being issued within the fiscal year for the Multi-Agency Regional Resilience Center (Parris Center) and the Municipal Stadium Renovation. As of June 30, 2025, the City of Lancaster had accrued employee benefits outstanding of $4,823,570.

The City’s AA credit rating remained unchanged for FY 24/25.

CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025

(12)

Economic Factors and Next Year’s Budgets and Rates

On June 24, 2025, the City Council adopted and approved the budget for FY 25/26 along with the Five- Year Capital Improvement Program. Appropriations (including transfers) of $303.5 million were adopted for the 25/26 fiscal year. Adequate resources are available to fund the proposed expenditures. Consistent with the City’s policy, General Fund operating revenues fully cover on-going operating expenses with Fund Balance funding one-time expenses. The ending General Fund balance exceeds the City’s policy minimum of 35% of operating expenditures. This is split into Working Capital, Emergency Operational, Emergency Response, and Business Opportunity/Investment reserves.

Budgetary revenue estimates have been prepared using a variety of methods. Certain revenue sources, such as federal and state grants and transportation funds are relatively fixed and known. Others, such as sales tax and development related revenues are more difficult to estimate. In those cases, a cautiously optimistic economic outlook has been assumed.

Current economic conditions allow the City to maintain core services, and to maintain current levels of public safety. However, prudent long-term fiscal planning dictates that we remain conservative, focus on the highest priorities, and fund only those enhancements we can sustain financially.

The two largest sources of revenue for the City’s Funds are property tax and sales tax. Taxes overall represent 39.3% of total revenues for the upcoming fiscal year. The revenue and expenditure projections for development related activity are based upon local and regional economic forecasts and trends. Overall, the budget is based on the information supplied by outside agencies, such as the State Department of Finance, California Department of Tax & Fee Admini stration, and the Los Angeles County Assessor's Office, to predict revenues. The revenue and expenditure projections are intended to serve as a guide in planning for the future.

Contacting the City’s Financial Management

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact George Harris, Senior Director – Admin Services or Gianna Peña, Assistant Director of Finance, at the City of Lancaster, 44933 Fern Avenue, Lancaster, CA 93534, or by phone at (661) 723-6037.

(13)

BASIC FINANCIAL STATEMENTS

CITY OF LANCASTER

STATEMENT OF NET POSITION
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(14)

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 115,880,963 $ 6,735,377 $ 122,616,340 $ Receivables:

Accounts 3,072,539 23,228,839 26,301,378 Taxes 17,133,446 - 17,133,446 Accrued Interest 356,057 - 356,057 Leases 1,064,719 - 1,064,719 Due from Other Governments 43,641,863 5,713,988 49,355,851 Notes and Loans 4,913,571 - 4,913,571 Prepaid Items 2,146,832 3,638,155 5,784,987 Internal Balances 11,042,696 (11,042,696) - Inventories 43,898 - 43,898 Land Held for Resale 17,738,883 - 17,738,883 Advances to Successor Agency 66,056,594 - 66,056,594 Restricted Assets:

Cash and Investments 28,702,440 - 28,702,440 Capital Assets:

Nondepreciable 169,496,824 - 169,496,824 Depreciable 748,650,499 10,803,916 759,454,415 Total Assets 1,229,941,824 39,077,579 1,269,019,403

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts on Pension Plan 19,550,352 - 19,550,352 Deferred Amounts on OPEB 4,351,382 - 4,351,382 Total Deferred Outflows of Resources 23,901,734 - 23,901,734

LIABILITIES
Accounts Payable 23,185,424 14,385,278 37,570,702 Accrued Liabilities 3,463,046 24,528 3,487,574 Accrued Interest 846,931 61,600 908,531 Retentions Payable 1,271,736 - 1,271,736 Unearned Revenues 2,379,438 240,078 2,619,516 Deposits Payable 1,636,747 - 1,636,747 Noncurrent Liabilities:

Due Within One Year - Other 7,991,235 945,000 8,936,235 Due in More than One Year:

Other 144,362,753 15,102,981 159,465,734 Net Pension Liability 82,221,468 - 82,221,468 Net OPEB Liability 3,338,666 - 3,338,666 Total Liabilities 270,697,444 30,759,465 301,456,909

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts on Leases 1,013,519 - 1,013,519 Deferred Amounts on Pension Plan 689,535 - 689,535 Deferred Amounts on OPEB 5,571,907 - 5,571,907 Total Deferred Inflows of Resources 7,274,961 - 7,274,961

NET POSITION
Net Investment in Capital Assets 801,291,678 (5,244,065) 796,047,613 Restricted for:

Community Development Projects 1,616,050 - 1,616,050 Public Safety 379,373 - 379,373 Parks, Recreation, and Arts 1,942,271 - 1,942,271 Development Services 59,767,465 - 59,767,465 Housing and Neighborhood Revitalization 56,024,730 - 56,024,730 Capital Projects 31,925,655 - 31,925,655 Unrestricted 22,923,931 13,562,179 36,486,110 Total Net Position 975,871,153 $ 8,318,114 $ 984,189,267 $

CITY OF LANCASTER

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(15)

Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Ser vices Contributions Contributions

GOVERNMENTAL ACTIVITIES
General Government 34,540,164 $ 915,810 $ 5,009,215 $ - $ Public Safety 49,956,125 1,068,281 1,808,750 - Community Development 13,483,832 431,712 3,641,286 - Parks, Recreation, and Arts 30,103,640 3,267,104 302,706 - Development Services 85,811,177 22,638,640 38,949,081 10,701,979 Housing and Neighborhood Revitalization 1,174,767 - 265,695 - Interest and Other Charges 6,201,309 - - - Total Governmental Activities 221,271,014 28,321,547 49,976,733 10,701,979

BUSINESS-TYPE ACTIVITIES
Lancaster Power Authority 1,339,671 2,040,460 - - Lancaster Choice Energy 87,233,960 84,281,387 - - Total Business-Type Activities 88,573,631 86,321,847 - - Total Government 309,844,645 $ 114,643,394 $ 49,976,733 $ 10,701,979 $ Program Revenues

CITY OF LANCASTER

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(16)

Governmental Business-Type
Functions/Programs Activities Activities Total

GOVERNMENTAL ACTIVITIES
General Government (28,615,139) $ - $ (28,615,139)$ Public Safety (47,079,094) - (47,079,094) Community Development (9,410,834) - (9,410,834) Parks, Recreation, and Arts (26,533,830) - (26,533,830) Development Services (13,521,477) - (13,521,477) Housing and Neighborhood Revitalization (909,072) - (909,072) Interest and Other Charges (6,201,309) - (6,201,309) Total Governmental Activities (132,270,755) - (132,270,755)

BUSINESS-TYPE ACTIVITIES
Lancaster Power Authority - 700,789 700,789 Lancaster Choice Energy - (2,952,573) (2,952,573) Total Business-Type Activities - (2,251,784) (2,251,784) Total Government (132,270,755) (2,251,784) (134,522,539)

GENERAL REVENUES AND TRANSFERS
Taxes:

Property Taxes, Levied for General Purposes 35,309,129 - 35,309,129 Franchise Taxes 9,498,487 - 9,498,487 Transient Occupancy Taxes 2,197,103 - 2,197,103 Business Licenses Taxes 2,551,880 - 2,551,880 Other Taxes 891,101 - 891,101 Intergovernmental 276,046 - 276,046 Intergovernmental - State Shared Sales Tax 53,750,509 - 53,750,509 Investment Earnings 6,542,350 720,453 7,262,803 Miscellaneous 4,361,484 137,124 4,498,608 Gain on Sale of Property 166,026 - 166,026 Transfers 977,810 (977,810) - Total General Revenues and Transfers 116,521,925 (120,233) 116,401,692 CHANGE IN NET POSITION (15,748,830) (2,372,017) (18,120,847) Net Position - Beginning of Year 991,619,983 10,690,131 1,002,310,114 NET POSITION - END OF YEAR 975,871,153$ 8,318,114 $ 984,189,267 $ Net (Expenses) Revenue and
Primary Government
Changes in Net Position

CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(17)

Lancaster Transportation
Housing Development
General Authority Authority Measure R
ASSETS
Pooled Cash and Investments 34,638,786 $ 13,584,274 $ - $ - $ Receivables:

Accounts 1,729,471 - 8,666 - Taxes 15,248,180 - - - Accrued Interest 356,057 - - - Leases 1,064,719 - - - Due from Other Governments 22,552 - 9,705,060 26,832,518 Notes and Loans, Net 1,048,553 3,828,788 - - Prepaid Items 2,146,832 - - - Due from Other Funds 40,466,369 - - - Inventories 43,898 - - - Land Held for Resale - 17,738,883 - - Advances to Successor Agency 46,515,321 19,541,273 - - Restricted Assets:

Cash and Investments with Fiscal Agents - - - - Total Assets 143,280,738 $ 54,693,218 $ 9,713,726 $ 26,832,518 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 12,662,868 $ 148,267 $ 11,541 $ 5,034,715 $ Accrued Liabilities 2,681,561 25,863 71 6,086 Unearned Revenues - - - - Deposits Payable 1,636,747 - - - Due to Other Funds - - 9,710,634 12,994,465 Retentions Payable 65,897 - 4,585 1,201,254 Total Liabilities 17,047,073 174,130 9,726,831 19,236,520

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases 1,013,519 - - - Deferred Inflows - Land Held for Resale - 6,563,702 - - Unavailable Revenues 21,153,399 5,260,400 - 26,832,518 Total Deferred Inflows of Resources 22,166,918 11,824,102 - 26,832,518

FUND BALANCES
Nonspendable:

Notes and Loans 1,048,553 - - - Prepaid Items 2,146,832 - - - Inventories 43,898 - - - Advances to Successor Agency 25,609,169 - - - Restricted:

Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services - - - - Housing and Neighborhood Revitalization - 42,694,986 - - Capital Projects - - - (19,236,520) Committed:

Contingency Reserve 54,119,745 - - - Assigned:

Employee Benefits 4,823,570 - - - Legal Claims 2,874,000 - - - Capital Projects 3,158,124 - - - Unassigned 10,242,856 - (13,105) - Total Fund Balances (Deficit) 104,066,747 42,694,986 (13,105) (19,236,520) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 143,280,738 $ 54,693,218 $ 9,713,726 $ 26,832,518 $ Special Revenue Funds

CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(18)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Accrued Interest
Leases
Due from Other Governments
Notes and Loans, Net
Prepaid Items
Due from Other Funds
Inventories
Land Held for Resale
Advances to Successor Agency
Restricted Assets:

Cash and Investments with Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Deposits Payable
Due to Other Funds
Retentions Payable
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases
Deferred Inflows - Land Held for Resale
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES
Nonspendable:

Notes and Loans
Prepaid Items
Inventories
Advances to Successor Agency
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Capital Projects
Committed:

Contingency Reserve
Assigned:

Employee Benefits
Legal Claims
Capital Projects
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Debt Service
Fund
Lancaster Other Total
Financing Governmental Governmental
Authority Funds Funds
-$ 67,657,903$ 115,880,963 $ - 1,334,402 3,072,539 - 1,885,266 17,133,446 - - 356,057 - - 1,064,719 - 7,081,733 43,641,863 - 36,230 4,913,571 - - 2,146,832 - - 40,466,369 - - 43,898 - - 17,738,883 - - 66,056,594 28,702,086 354 28,702,440
28,702,086$ 77,995,888 $ 341,218,174 $
630,503$ 4,697,530 $ 23,185,424 $
- 749,465 3,463,046 - 2,379,438 2,379,438 - - 1,636,747 2,403,984 4,314,590 29,423,673
- - 1,271,736 3,034,487 12,141,023 61,360,064
- - 1,013,519 - - 6,563,702 - 7,278,945 60,525,262 - 7,278,945 68,102,483 - - 1,048,553 - - 2,146,832 - - 43,898 - - 25,609,169 - 1,602,143 1,602,143 - 379,373 379,373 - 1,941,328 1,941,328 - 59,767,854 59,767,854 - 1,151,285 43,846,271 25,667,599 - 6,431,079 - - 54,119,745 - - 4,823,570 - - 2,874,000 - - 3,158,124 - (6,266,063) 3,963,688 25,667,599 58,575,920 211,755,627
28,702,086$ 77,995,888 $ 341,218,174 $

CITY OF LANCASTER

RECONCILIATION OF THE GOVERNMENTAL FUNDS

BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(19)

Fund Balances - Total Governmental Funds 211,755,627$
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in the governmental funds balance sheet:

Capital Assets 2,112,544,459
Accumulated Depreciation (1,194,397,136)
918,147,323
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported. Interest on long-term liabilities is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities, both current and long-term, are reported in the Statement of Net Position. Balances as of June 30, 2025, are:

Bonds, Notes, Loans, Leases, and Subscriptions Payable (144,656,418) Claims and Judgments (2,874,000)
Compensated Absences (4,823,570)
(152,353,988)
The net pension liability applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities:

Deferred Outflows of Resources 19,550,352
Deferred Inflows of Resources (689,535)
Net Pension Liability (82,221,468)
(63,360,651)
The net OPEB liability applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.

Deferred outflows of resources and inflows related to OPEB are only reported in the Statement of Net Position, as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 4,351,382
Deferred Inflows of Resources (5,571,907)
Net OPEB Liability (3,338,666)
(4,559,191)
Accrued interest payable for the current portion of interest due on bonds is not reported in the governmental funds (846,931)
Long-term assets are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the fund financial statements:

Unavailable Revenues 60,525,262
Deferred Inflows of Resources 6,563,702
67,088,964
Net Position of Governmental Activities 975,871,153$

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(20)

Lancaster Transportation
Housing Development
General Authority Authority Measure R

REVENUES
Taxes 69,170,854 $ - $ - $ - $ Licenses and Permits 10,945,409 - - - Intergovernmental 34,114,313 - 9,713,726 2,838,310 Charges for Services 3,325,305 - - - Investment Earnings 2,905,562 119,677 22,325 111,850 Fines and Forfeitures 583,224 - - - Contributions 580,745 - - - Rental Income 325,324 - - - Gain from Sale of Land Held for Resale - 34,675 - - Miscellaneous 2,400,572 204,972 - - Total Revenues 124,351,308 359,324 9,736,051 2,950,160

EXPENDITURES
Current:

General Government 23,916,479 - - - Public Safety 48,479,284 - - - Community Development 10,382,904 - - - Parks, Recreation, and Arts 26,310,089 - - - Development Services 9,468,893 - 35,081 211,658 Housing and Neighborhood Revitalization - 1,145,310 - - Capital Outlay 14,315,065 - 168,367 14,373,112 Debt Service:

Principal Retirement 1,425,420 - - - Interest and Fiscal Charges 468,315 - - - Total Expenditures 134,766,449 1,145,310 203,448 14,584,770

EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES (10,415,141) (785,986) 9,532,603 (11,634,610)

OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 131,351 - - - Issuance of Debt - - - - Lease Proceeds 127,565 - - - Transfers In 6,379,331 - - - Transfers Out (5,876,194) - (8,402,000) (1,075,257) Total Other Financing Sources (Uses) 762,053 - (8,402,000) (1,075,257) NET CHANGE IN FUND BALANCES (9,653,088) (785,986) 1,130,603 (12,709,867) Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 113,719,835 43,480,972 (1,143,708) - Change Within the Financial Reporting Entity - - - (6,526,653) Fund Balances (Deficit) - Beginning of Year 113,719,835 43,480,972 (1,143,708) (6,526,653) FUND BALANCES (DEFICIT) - END OF YEAR 104,066,747$ 42,694,986 $ (13,105) $ (19,236,520)$ Special Revenue Funds

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(21)

REVENUES
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Investment Earnings
Fines and Forfeitures
Contributions
Rental Income
Gain from Sale of Land Held for Resale
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Community Development
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Capital Outlay
Debt Service:

Principal Retirement
Interest and Fiscal Charges
Total Expenditures

EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Sale of Capital Assets
Issuance of Debt
Lease Proceeds
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficit) - Beginning of Year,
as Previously Presented
Change Within the Financial Reporting Entity
Fund Balances (Deficit) - Beginning of Year

FUND BALANCES (DEFICIT) - END OF YEAR
Debt Service
Fund
Lancaster Other Total
Financing Governmental Governmental
Authority Funds Funds
-$ 4,508,037$ 73,678,891 $
- 3,120,075 14,065,484
- 27,380,918 74,047,267
- 11,451,515 14,776,820
1,763,866 1,525,485 6,448,765
- 86,454 669,678
- 8,984 589,729 - - 325,324 - - 34,675 - 1,764,192 4,369,736
1,763,866 49,845,660 189,006,369
- 5,934,620 29,851,099
- 1,321,351 49,800,635
- 2,555,868 12,938,772
- 1,226,764 27,536,853
34,941,602 22,475,951 67,133,185
- 29,457 1,174,767 12,708,509 11,070,608 52,635,661
1,615,000 746,000 3,786,420
5,701,580 334,667 6,504,562
54,966,691 45,695,286 251,361,954
(53,202,825) 4,150,374 (62,355,585)
- - 131,351 66,527,660 - 66,527,660
- - 127,565 6,625,145 10,871,102 23,875,578
- (7,544,317) (22,897,768) 73,152,805 3,326,785 67,764,386
19,949,980 7,477,159 5,408,801
5,717,619 44,572,108 206,346,826
- 6,526,653 -
5,717,619 51,098,761 206,346,826
25,667,599$ 58,575,920 $ 211,755,627 $

CITY OF LANCASTER

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(22)

Net Change in Fund Balances - Total Governmental Funds 5,408,801$ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital expense in the current period.

Capital Outlays 72,235,785
Disposals (11,606)
Depreciation Expense (43,313,541)
28,910,638
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.

Proceeds From Bond Issuance (66,527,660)
Lease Proceeds (127,565)
Principal Payments 3,786,420
Amortization of Bond Premium 407,454
(62,461,351)
Some 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.

Change in Accrued Employee Benefits (806,768)
Change in Claims Payable (728,000)
(1,534,768)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (104,201)
OPEB expenditures reported in the governmental funds includes the actuarial determined contributions. In the Statement of Activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. 2,747,101 Pension expenditures reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense included the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (4,121,704) Revenues are deferred in the governmental funds when they are not received soon after year-end to be considered to be available. The availability criteria does not apply to the Statement of Net Position and therefore the revenue is recognized. 15,406,654 Change in Net Position of Governmental Activities (15,748,830)$

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(23)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR 113,719,835$ 113,719,835 $ 113,719,835 $ - $

RESOURCES (INFLOWS)
Taxes 65,307,232 65,155,676 69,170,854 4,015,178 Licenses and Permits 6,740,945 9,374,331 10,945,409 1,571,078 Intergovernmental 28,472,632 33,672,632 34,114,313 441,681 Charges for Services 3,222,452 3,588,524 3,325,305 (263,219) Investment Earnings 3,232,079 3,232,079 2,905,562 (326,517) Fine and Forfeitures 934,000 480,878 583,224 102,346 Rental Income 325,568 325,568 325,324 (244) Miscellaneous 267,690 311,348 2,400,572 2,089,224 Sale of Capital Assets - 96,352 131,351 34,999 Lease Proceeds - - 127,565 127,565 Transfers In 9,173,406 11,407,992 6,379,331 (5,028,661) Amounts Available for Appropriations 117,681,004 127,650,380 130,989,555 3,339,175

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 16,873,354 23,822,683 23,916,479 (93,796) Public Safety 49,859,412 53,140,420 48,479,284 4,661,136 Community Development 10,785,345 13,319,034 10,382,904 2,936,130 Parks, Recreation, and Arts 24,897,394 28,039,889 26,310,089 1,729,800 Development Services 8,987,857 10,358,680 9,468,893 889,787 Capital Outlay 174,574 27,395,506 14,315,065 13,080,441 Debt Service:

Principal Retirement 3,400,000 476,155 1,425,420 (949,265) Interest and Fiscal Charges - - 468,315 (468,315) Transfers Out 999,444 7,923,825 5,876,194 2,047,631 Total Charges to Appropriations 115,977,380 164,476,192 140,642,643 23,833,549

BUDGETARY FUND BALANCE -
END OF YEAR 115,423,459$ 76,894,023 $ 104,066,747 $ 27,172,724 $ Budgeted Amounts

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(24)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE -
BEGINNING OF YEAR 43,480,972$ 43,480,972 $ 43,480,972 $ - $

RESOURCES (INFLOWS)
Investment Earnings 256,258 256,258 119,677 (136,581) Gain from Sale of Land Held for Resale 3,385,832 3,385,832 34,675 (3,351,157) Miscellaneous 25,000 25,000 204,972 179,972 Amounts Available for Appropriations 47,148,062 47,148,062 43,840,296 (3,307,766)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Housing and Neighborhood Revitalization 1,675,645 1,680,222 1,145,310 534,912 Transfers Out 100,000 100,000 - 100,000 Total Charges to Appropriations 1,775,645 1,780,222 1,145,310 634,912 BUDGETARY FUND BALANCE - END OF YEAR 45,372,417$ 45,367,840 $ 42,694,986 $ (2,672,854) $ Budgeted Amounts

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(25)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (1,143,708)$ (1,143,708) $ (1,143,708) $ - $

RESOURCES (INFLOWS)
Intergovernmental 10,663,722 10,663,722 9,713,726 (949,996) Investment Earnings - - 22,325 22,325 Amounts Available for Appropriations 9,520,014 9,520,014 8,592,343 (927,671)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 35,081 (35,081) Capital Outlay - 1,334,761 168,367 1,166,394 Transfers Out 8,402,000 8,402,000 8,402,000 - Total Charges to Appropriations 8,402,000 9,736,761 8,605,448 1,131,313 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 1,118,014$ (216,747) $ (13,105) $ 203,642 $ Budgeted Amounts

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(26)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (6,526,653)$ (6,526,653) $ (6,526,653) $ - $

RESOURCES (INFLOWS)
Intergovernmental 35,715,327 35,715,327 2,838,310 (32,877,017) Investment Earnings 20,500 20,500 111,850 91,350 Amounts Available for Appropriations 29,209,174 29,209,174 (3,576,493) (32,785,667)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 211,658 (211,658) Capital Outlay - 39,574,704 14,373,112 25,201,592 Transfers Out 2,682,484 2,682,484 1,075,257 1,607,227 Total Charges to Appropriations 2,682,484 42,257,188 15,660,027 26,597,161 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 26,526,690$ (13,048,014) $ (19,236,520) $ (6,188,506) $ Budgeted Amounts

CITY OF LANCASTER

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(27)

Lancaster Lancaster
Power Choice
Authority Energy Total
ASSETS
Current Assets:

Cash and Investments - Pooled with City 6,735,377 $ - $ 6,735,377$ Receivables:

Accounts 413,633 22,815,206 23,228,839 Notes - 5,713,988 5,713,988
Prepaid Items - 3,638,155 3,638,155 Total Current Assets 7,149,010 32,167,349 39,316,359 Noncurrent Assets:

Capital Assets:

Depreciable, Net 10,803,916 - 10,803,916 Total Assets 17,952,926 32,167,349 50,120,275

LIABILITIES
Current Liabilities:

Accounts Payable - 14,385,278 14,385,278 Accrued Liabilities - 24,528 24,528 Interest Payable 61,600 - 61,600 Unearned Revenues - 240,078 240,078 Due to Other Funds - 11,042,696 11,042,696 Current Portion of Long-Term Liabilities 945,000 - 945,000 Total Current Liabilities 1,006,600 25,692,580 26,699,180 Long-Term Liabilities:

Noncurrent Portion of Long-Term Liabilities 15,102,981 - 15,102,981 Total Liabilities 16,109,581 25,692,580 41,802,161

NET POSITION
Net Investment in Capital Assets (5,244,065) - (5,244,065) Unrestricted 7,087,410 6,474,769 13,562,179 Total Net Position 1,843,345 $ 6,474,769 $ 8,318,114 $ Enterprise Funds
Business-Type Activities

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(28)

Lancaster Lancaster
Power Choice
Authority Energy Total

OPERATING REVENUES
Sales and Service Charges 2,040,460 $ 84,281,387 $ 86,321,847 $ Total Operating Revenues 2,040,460 84,281,387 86,321,847

OPERATING EXPENSES
Purchased Power - 77,249,399 77,249,399 Administration and General 1,425 9,984,561 9,985,986 Depreciation Expense 939,846 - 939,846 Total Operating Expenses 941,271 87,233,960 88,175,231 OPERATING INCOME (LOSS) 1,099,189 (2,952,573) (1,853,384)

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 4,921 715,532 720,453 Other Nonoperating Income - 137,124 137,124 Interest Expense (398,400) - (398,400) Total Nonoperating Revenue (Expenses) (393,479) 852,656 459,177 INCOME (LOSS) BEFORE TRANSFERS 705,710 (2,099,917) (1,394,207)

TRANSFERS
Transfers Out (11,505) (966,305) (977,810) Total Transfers (11,505) (966,305) (977,810) CHANGE IN NET POSITION 694,205 (3,066,222) (2,372,017) Net Position - Beginning of Year 1,149,140 9,540,991 10,690,131 NET POSITION - END OF YEAR 1,843,345$ 6,474,769 $ 8,318,114 $ Enterprise Funds
Business-Type Activities

CITY OF LANCASTER

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(29)

Lancaster Lancaster
Power Choice
Authority Energy Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 1,652,616 $ 67,101,811 $ 68,754,427 $ Cash Paid to Suppliers for Goods and Services (1,425) (65,875,038) (65,876,463) Net Cash Provided by Operating Activities 1,651,191 1,226,773 2,877,964

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Paid to Other Funds (11,505) (1,942,305) (1,953,810) Net Cash Used by Noncapital
Financing Activities (11,505) (1,942,305) (1,953,810)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal Paid on Capital Debt (830,000) - (830,000) Interest Paid on Capital Debt (376,154) - (376,154) Net Cash Used by Capital and
Related Financing Activities (1,206,154) - (1,206,154)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 4,921 715,532 720,453 Net Cash Provided by Investing Activities 4,921 715,532 720,453

NET CHANGE IN CASH AND
CASH EQUIVALENTS 438,453 - 438,453 Cash and Cash Equivalents - Beginning of Year 6,296,924 - 6,296,924 CASH AND CASH EQUIVALENTS - END OF YEAR 6,735,377$ - $ 6,735,377$

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income 1,099,189 $ (2,952,573) $ (1,853,384) $ Other Income - 137,124 137,124 Depreciation 939,846 - 939,846 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (192,087) (563,389) (755,476) (Increase) Decrease in Due from Other Governments - (3,768,389) (3,768,389) (Increase) Decrease in Prepaid Items - 17,737,252 17,737,252 Increase (Decrease) in Accounts Payable - 3,637,274 3,637,274 Increase (Decrease) in Accrued Liabilities - (15,604) (15,604) Increase (Decrease) in Unearned Revenues (195,757) (12,634,922) (12,830,679) Increase (Decrease) in Deposits - (350,000) (350,000) Net Cash Provided (Used) by Operating Activities 1,651,191 $ 1,226,773 $ 2,877,964 $ Business-Type Activities
Enterprise Funds

CITY OF LANCASTER

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(30)

Private-Purpose
Trust Fund Other
Successor Postemployment
Agency of the Benefit Custodial
Former RDA Trust Fund Funds
ASSETS
Pooled Cash and Investments 18,804,888 $ 22,001,436 $ 1,781,858 $ Receivables:

Accounts - - 84,981 Taxes - - 17,339 Notes and Loans, Net 98,752 - - Accrued Interest 5,244 - - Prepaid Items - - 19,181 Restricted Assets:

Cash and Investments with Fiscal Agents 45,633 - - Total Assets 18,954,517 22,001,436 1,903,359

DEFERRED OUTFLOWS OF RESOURCES
Deferred Losses on Debt Refundings 3,974,662 - -

LIABILITIES
Accounts Payable 6,490 - 745,255 Interest Payable 1,836,205 - 58,945 Deposits Payable - - 238,234 Due to Other Governments 2,441,171 - - Advances from City of Lancaster 66,056,594 - - Long-Term Liabilities:

Due in One Year 8,235,000 - - Due in More Than One Year 112,214,782 - 2,645,918 Total Liabilities 190,790,242 - 3,688,352

DEFERRED INFLOWS OF RESOURCES
Deferred Gains on Debt Refundings 728,971 - -

NET POSITION (DEFICIT)
Held for OPEB - 22,001,436 - Held in Trust for Other Purposes (168,590,034) - - Restricted for Bondholders - - (1,784,993) Total Net Position (Deficit) (168,590,034) $ 22,001,436 $ (1,784,993) $

CITY OF LANCASTER

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025

See accompanying Notes to Basic Financial Statements.
(31)

Private-Purpose
Trust Fund Other
Successor Postemployment
Agency of the Benefit Custodial
Former RDA Trust Fund Funds

ADDITIONS
Taxes 8,050,281 $ - $ 25,795$ Contributions - Rollover - 1,059,381 - Investment Income 490,059 1,969,190 - Miscellaneous 24,328 - 24,558 Total Additions 8,564,668 3,028,571 50,353

DEDUCTIONS
Administrative Expenses 396,168 20,565 1,987,154 Loss on Disposal of Assets 13,865 - - Payment of Special Tax Debt 4,925,457 - 45,918 Total Deductions 5,335,490 20,565 2,033,072 CHANGE IN NET POSITION 3,229,178 3,008,006 (1,982,719) Net Position (Deficit) - Beginning of Year (171,819,212) 18,993,430 197,726 NET POSITION (DEFICIT) - END OF YEAR (168,590,034)$ 22,001,436 $ (1,784,993) $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(32)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Lancaster, California (the City), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Description of the Reporting Entity
The City was incorporated on November 22, 1977, under the laws of the state of California. The City is a charter city administered under a council/manager form of government. The accompanying financial statements present the City of Lancaster and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such t hat their exclusion would cause the City’s financial statements to be misleading or incomplete.

The management of the primary government has operational responsibility for each of the component units, and/or receives financial benefits from each component unit, being blended within the financial reporting entity of the City of Lancaster. Component units include the Lancaster Housing Authority, the Lancaster Community Services Foundation, the Lancaster Financing Authority, and the Lancaster Power Authority.

A brief description of each blended component unit follows:

The Lancaster Housing Authority (the Housing Authority) was formed for the purpose of providing affordable, decent housing for lower income residents of the City. The Housing Authority assumed responsibilities for the prior low/moderate Housing Fund.

Separate financial statements are not available for the Housing Authority.

The Lancaster Community Services Foundation (the Foundation) was formed to provide certain community services to the residents of the City. Separate financial statements are not available for the Foundation.

The Lancaster Financing Authority Debt Service Fund (the Financing Authority) was formed for the purpose to provide, through the issuance of debt, financing necessary for various capital improvements. Separ ate financial statements are not available for the Financing Authority.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(33)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The Lancaster Power Authority (the Power Authority) was formed to own and operate a municipal gas and electric utility, for the benefit of the residents of the City and customers, businesses, and property owners in the City. Separate financial statements are not available for the Power Authority.

B. Basis of Accounting and Measurement Focus
The financial statements of the City are composed of the following:

 Government-Wide Financial Statements
 Fund Financial Statements
 Notes to the Financial Statements

Government-Wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component unit s). Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

Interfund services provided and used are not eliminated in the process of consolidation.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements.

Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(34)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Government-Wide Financial Statements (Continued)
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary gov ernment’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about t he major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary statements, even though excluded from the government-wide financial statements, represent a private-purpose trust fund and custodial funds.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period.

Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Significant revenues subject to the criteria include taxes, licenses and permits, and intergovernmental revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided).

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(35)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Funds (Continued)
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources . Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period.

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. The principal portion of advances to other funds reported in the general fund financial statements is classified as nonspendable fund balance to indicate that it is not available for appropriation and is not an expendable available financial resource.

Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. “Meas urable” means that the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Accrued revenues include property taxes received within 60 days after year-end, taxpayer-assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a receivable, and grant funds received before the revenue recognition criteria have been met are reported as unearned revenues.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

Proprietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements, the proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds and fiduciary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, all liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position.

Proprietary fund type operating statements pr esent increases (revenues) and decreases (expenses) in total net position.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(36)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary and Fiduciary Funds (Continued)
Proprietary funds operating revenue, such as charges for services, result from exchange transactions associated with the principal activities of the funds. Exchange transactions are those in which each party receives and gives up essentially equal values.

Nonoperating revenues, such as subsidies, taxes, and investment earnings, result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise funds financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expenditure.

The City’s fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. Because these funds are not available for use by the City, fiduciary funds are not included in the governmental-wide statements.

C. Fund Classifications
The City reports the following major governmental funds:

General Fund – This is the primary operating fund of the City. It accounts for all unrestricted resources, except those required to be accounted for in another fund.

Lancaster Housing Authority Special Revenue Fund – This fund is used to account for the purpose of providing affordable, decent housing for lower income residents of the City. Also, to account for the housing assets and functions previously performed by the former redevelopment agency and is funded by revenues generated by the housing assets.

Transportation Development Authority Special Revenue Fund – This fund is used to account for restricted funds associated with the Transportation Development Act.

The funding is provided to support transportation planning and mass transportation purposes.

Measure R Special Revenue Fund – This fund is used to account for voter-approved Los Angeles County transportation sales tax revenues administered by the Los Angeles County Metropolitan Transportation Authority (Metro) and allocated/awarded to the City of Lancaster to fund eligible local transportation, street improvement expenditures, highway and arterial roadway capital improvement projects.

Lancaster Financing Authority Debt Service Fund – This fund is used to account for resources restricted or assigned for expenditures of principal and interest.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(37)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Fund Classifications (Continued)
The City reports the following major proprietary funds:

Lancaster Power Authority – This fund is used to account for the ownership and operation of a municipal gas and electric utility for the benefit of the residents of the City and customers, businesses, and property owners in the City.

Lancaster Choice Energy (LCE) – This fund is used to account for the operations of the power provider.

Additionally, the City reports the following fund types:

Governmental Fund Types
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Fiduciary Fund Types
Private-Purpose Trust Fund – This fund is used to account for the assets and liabilities of the former redevelopment agency. The City, in its capacity as the Successor Agency, receives revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Other Postemployment Benefit Trust Fund – This fund is to account for resources that are held in an irrevocable trust for the benefit of participants in the City’s other postemployment benefit plan.

Custodial Funds – These funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.

The City reports the following Custodial Funds:

 Assessment District – to account for the City, acting in the capacity as an agent, for various 1915 Act Assessment District Bonds.
 Community Facilities Districts (CFD) – to account for collection of special assessments within the Mello-Roos District to provide public waterworks improvements and basic infrastructure within the Districts.  Deposits – to account for deposits held on behalf of the Downtown Lancaster Association.
 First Public Hydrogen – to account for the City, acting in the capacity of an agent for the entity.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(38)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The City pools idle cash from all funds for the purpose of increasing income through investment activities.

Investments for the City, as well as for its component units, are reported at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market partic ipants at the measurement date. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The fair value of the City’s investment in this pool is reported at an amount based upon the City’s prorated share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

E. Interfund Receivables and Payables
Activity between funds that are repr esentative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”

F. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due, or past due, and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.

G. Inventories and Prepaid Items
Inventories of materials and supplies are carried at cost on a moving average basis.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

The consumption method of accounting is used for both inventories and prepaid items.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(39)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.

I. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the government-wide financial statements. The government defines c apital assets as assets with an initial, individual cost of more than $5,000 or plant and infrastructure capital projects that are in excess of $125,000 (amounts not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition 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. Major outlays for capital assets and improvements are capitalized as projects are 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:

Structures and Improvements 40 Years
Furniture and Equipment 7 to 10 Years
Infrastructure 50 Years

Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

J. Subscription-Based Technology Arrangements (SBITA)
SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription te rm, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received from the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(40)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outfl ows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to debt refunding, pensions, and other postemployment benefits. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 9 and 10.

In addition to liabilities, the statement of financial position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements, the City’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 9 and 10. The statement of net position and the governmental funds balance sheet also reports a deferred inflow of resources related to leases. The deferred gain on refunding resulted from the difference between the carrying value of the refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available. Additionally, donated capital assets that are not intended for use but are held for sale should be reported as assets on the governmental fund balance sheet and as a deferred inflow of resources equal to their fair value.

L. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted – net position to have been depleted before unrestricted – net position is applied.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Land Held for Resale
The Lancaster Housing Authority acquired property via the Neighborhood Stabilization Program to reduce blight and provide affordable housing to its citizens. These parcels are shown in the Lancaster Housing Authority Special Revenue Fund and the Housing and Community Development Special Revenue Fund.

All land held for resale is recorded at lower of cost or market value.

N. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick. The liability for compensated absences is reported as incurred in the government-wide financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

O. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period as other financing sources and uses, respectively.

The face amount of debt issued is reported as other financing sources.

P. Fund Balance Classification
In the fund financial statements, fund balances are classified as follows:

Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash (for example, inventories and prepaid amounts). In the general fund only, it also includes the long-term portion of notes and loan’s receivable with no constraints on how the eventual proceeds can be spent.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance Classification (Continued)
Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments, or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.

City Council approved a revised Reserve Policy, establishing a General Fund Reserve of 40%, a General Liability Fund Reserve equal to the amount identified in an annual actuarial that represents the net annual liability after annual budgeted program resources, a Fleet Maintenance reserve of 20%, and an Information Technology reserve of 20%. The contingency reserves were established to help sustain City operations during emergencies and provide flexibility to respond to unexpected fiscal impacts throughout the fiscal year.

Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager and/or Finance Director is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution 11-35.

Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The general fund is the only fund that reports a positive unassigned fund balance amount. In other funds, deficit balance amounts resulting from overspending for specific purposes for which amounts have been restricted, committed, or assigned are classified as unassigned.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

R. Postemployment Benefits Other Than Pensions
For purposes of measuring the net OPEB liabilit y (asset) and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan and addition s to/deductions from the OPEB plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the City’s OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Use of Estimates
The preparation of financial statements in accordance 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, deferred inflows of resources, liabilities, and deferred outflows of resources 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.

T. Adoption of New Accounting Standards
During the year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, see Notes 8 and 1N for more information.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where r equired during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager or designee. Expenditures may not exceed appropriations at the function level. At fiscal year-end, all unencumbered operating budget appropriations lapse with the exception of those for unfinished capital projects, special projects, and grant programs. For these specific projects and programs, unused appropriations at the end of the fiscal year are carried forward and become part of the next year’s budget. During the year, several supplementary appropriations were necessary.

Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the general, special revenue, and similar governmental funds. Encumbrances are included in the general fund’s assigned fund balance under capital projects for $3,158,124 They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities.

Budget Basis of Accounting
Budgets for all governmental funds, except the Community Services Foundation, Zero-Net Energy Solar Mitigation In Lieu Special Revenue Fund, Mariposa Lily Special Revenue Fund, Proposition 1B Special Revenue Fund, AVAQMD Special Revenue Fund, Lancaster Financing Authority Debt Service Fund, and the Capital Projects Fund, which are budgeted on a project basis, are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Excess of Expenditures Over Appropriations
The following are funds in which certain expenditures exceeded appropriations for the fiscal year ended June 30, 2025:

Final Variance With
Budget Actual Final Budget
Major Funds:

General Fund:

General Government 23,822,683 $ 23,916,479 $ (93,796) $ Debt Service:

Principal Retirement 476,155 1,425,420 (949,265) Interest and Fiscal Charges - 468,315 (468,315) Transportation Development Authority:

Development Services - 35,081 (35,081) Measure R:

Development Services - 211,658 (211,658) Other Governmental Special Revenue Funds:

Gas Tax:

General Government - 12,836 (12,836) Community Development 152,914 153,655 (741) Landscape Maintenance District
Development Services 1,033,534 1,297,999 (264,465) Capital Outlay - 7,498 (7,498) Housing and Community Development:

Housing and Neighborhood Revitalization - 29,457 (29,457) Proposition A:

General Government 2,090,090 2,095,301 (5,211) Development Services 94,126 131,677 (37,551) Bikeway Improvement:

Development Services - 12,669 (12,669) Proposition C:

Development Services - 178,890 (178,890) Federal Grant:

General Government - 1,891 (1,891) Development Services - 100,428 (100,428) State Grant:

General Government 23,082 23,443 (361) Developer Fees - Signals
Development Services - 20,107 (20,107) Developer Fees - Drainage:

Development Services - 111,018 (111,018) Recycled Water:

Development Services 299,084 367,540 (68,456) Traffic Impact:

Development Services - 46,563 (46,563) AQMD:

Community Development 17,750 18,000 (250) Landscape Drainage Maintenance District:

Transfers Out 587,979 613,420 (25,441) Measure H:

Transfers Out - 49 (49) MTA Grant:

Development Services - 15,912 (15,912) Urban Structure Program:

Parks, Recreation, and Arts 2,293 7,551 (5,258) Transfers Out 42,494 84,895 (42,401) Sewer Maintenance:

General Government 86,041 95,636 (9,595) Transfers Out 1,287,170 1,312,611 (25,441)

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Net Position/Fund Balances
The following funds contained deficit fund balances as of June 30, 2025:

Deficit
Amount
Transportation Development Authority Special Revenue Fund (13,105)$ (2) Measure R Special Revenue Fund (19,236,520) (1)
Other Governmental Special Revenue Funds:

Landscape Maintenance District Special Revenue Fund (104,432) (1) Bikeway Improvement Special Revenue Fund (30,794) (1) Federal Grants Special Revenue Fund (429,569) (1) State Grants Special Revenue Fund (2,544,059) (1) Measure H Special Revenue Fund (1,843,466) (1) MTA Grant Special Revenue Fund (1,313,743) (1)

These fund balance deficits will be eliminated as (1) grant reimbursements become available, (2) future revenues are received.

NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments held by the City at June 30, 2025 are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 122,616,340 $
Restricted:

Cash and Investments 28,702,440
Statement of Fiduciary Assets and Liabilities:

Pooled Cash and Investments 42,588,182
Restricted:

Cash and Investments with Fiscal Agents 45,633
Total Cash and Investments 193,952,595 $
Cash and Investments Consisted of the Following:

Cash on Hand 5,126 $
Deposits with Financial Institutions 55,230,089
Investments 138,717,380
Total Cash and Investments 193,952,595 $

The City of Lancaster maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported in the financial statements as pooled cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Deposits
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also follows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California, as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository is considered to be held for, and in the name of, the local governmental agency. As of June 30, 2025, all the City’s deposits with financial in stitutions were covered by federal depository insurance limits or were held in collateralized accounts.

Under provision of the City’s investment policy, and in accordance with the California Government Code, the following investments are authorized:

 United States Treasury Securities
 United States Government Sponsored Agency Securities
 Certificates of Deposit
 Medium-Term Notes
 Prime Commercial Paper
 Banker’s Acceptances
 Repurchase Agreements
 Local Agency Investment Fund (State Pool)
 Money Market Mutual Funds
 Municipal Bonds

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.

Investments of debt proceeds held by a bond tr ustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with state statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

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JUNE 30, 2025

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments in Cooperative Liquid Assets Securities System The City is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS), a joint exercise of powers entity authorized under Section 6509.7, California Government Code. California CLASS is overseen and governed by a Board of Trustees, which consists of four members who are public agency finance professionals. The fund is audited annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

Credit Risk
The City’s investment policy limits investments in medium-term notes (MTNs) and municipal bonds to those rated AA- or better by a nationally recognized statistical rating organization.

At June 30, 2025, the City invested in various MTNs and municipal bonds which were rated AA- or better by Standard & Poor’s (S&P). At June 30, 2025, the City’s investments with US Government Sponsored Agency Securities were rated AA+ and money market mutual funds were rated AAA by S&P. California CLASS PR IME was rated AAAm by S&P. Investments in U.S. government securities are not considered to have credit risk and, therefore, their credit quality is not disclosed.

As of June 30, 2025, the City’s investment in LAIF is unrated. The City has amounts invested in investment agreements held with fiscal agents and invested under the direction of the City, which are unrated.

Custodial Credit Risk
The 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 deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.

Concentration of Credit Risk
The City’s investment policy imposes restrictions on the maximum percentage it can invest in a single type of investment. These limitations are 25% of the City’s invested funds for nonnegotiable certificates of deposit, 15% of the City’s invested funds for banker acceptances with no more than 2% in any one issuer, 25% of the City’s invested funds for commercial paper with no more than 5% in any one issuer, 30% of the City’s invested funds for medium-term notes with no more than 5% in any one issuer, and 20% of the City’s invested funds for money market funds with no more than 10% in any one issuer. If the City has invested more than 5% of its total investments in any one issuer then it is exposed to credit risk.

As of June 30, 2025, none of the City’s investments had issuers exceeding 5% of the City investment pool.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from inc reasing interest rates. The City’s investment policy states that investments in United Stated Tr easury Securities and securities for which the full-faith and credit of the United States is pledged should have a maturity no longer than five years. Reserve funds relating to the bond issues may be invested in securities for more than five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

As of June 30, 2025, the City had the following investments and original maturities:

1 Year 1 Year 3 Years 5 Years
Investment Type or Less to 3 Years to 5 Years and More Total City Investment Pool:

United States Treasury
Securities - $ 10,056,786$ 8,792,348 $ 1,255,518 $ 20,104,652 $ United States Government
Sponsored Agency
Securities - 3,743,924 3,967,796 2,393,609 10,105,329 Medium-Term Corporate Notes - 4,961,970 2,836,981 - 7,798,951 Certificates of Deposit 167,158 - - - 167,158 Municipal Bonds - - - 1,145,615 1,145,615 California Local Agency
Investment Fund (LAIF) 2,080,021 - - - 2,080,021 California CLASS 46,566,137 - - - 46,566,137 Held by OPEB Trust:

Money Market Mutual Funds 22,001,436 - - - 22,001,436 Held by Fiscal Agent:

Money Market Mutual Funds 28,748,081 - - - 28,748,081 Total 99,562,833 $ 18,762,680 $ 15,597,125 $ 4,794,742 $ 138,717,380 $ Remaining Maturity (in Years)

Fair Value Measurements
The City categorizes its fair value measurem ent within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the relative inputs used to measur e the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements), inputs are quoted price of similar assets in active markets (Level 2 measurements), and the lowest priority to unobservable inputs (Level 3 measurements).

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2025:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
United States Treasury Securities 20,104,652 $ - $ - $ 20,104,652$ United States Government Sponsored
Agency Securities - 10,105,329 - 10,105,329 Medium-Term Corporate Notes - 7,798,951 - 7,798,951 Certificates of Deposit - 167,158 - 167,158 Municipal Bonds - 1,145,615 - 1,145,615 Total Subject to Hierarchy 20,104,652 $ 19,217,053 $ - $ 39,321,705 LAIF (1) 2,080,021
California CLASS (1) 46,566,137
Held by OPEB Trust:

Money Market Mutual Funds (1) 22,001,436
Held by Fiscal Agent:

Money Market Mutual Funds (1) 28,748,081
Total Investment Portfolio 138,717,380$

(1) Investment is not subject to fair value hierarchy measurements.

NOTE 4 NOTES AND LOANS RECEIVABLE
Notes and loans receivable at June 30, 2025 were as follows:

Loans and Loan Long-Term
Notes Forgiveness/ Lump-Sum
Receivable Allowance Re payment
Repayments Terms Terms Total
General Fund 1,348,786 $ (259,351) $ (40,882) $ 1,048,553 $ Lancaster Housing Authority:

Special Revenue Fund 3,828,788 - - 3,828,788 Other Governmental Funds:

HOME Program Special
Revenue Fund 15,732,262 (15,696,032) - 36,230 Total 20,909,836 $ (15,955,383) $ (40,882) $ 4,913,571 $ Fiduciary Private-Purpose:

Trust Fund 98,752 $ - $ - $ 98,752$

Loan forgiveness/allowance is a reduction in the balance for the amount forgiven or allowed for based on assessment of collectability on the loans by the City during the fiscal year. The long-term lump-sum repayment terms reduces the loan balance for the payments received during the year.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 5 LEASE RECEIVABLE
The City, acting as lessor, leases land under long-term, noncancelable lease agreements.

The leases expire at various dates through 2043 and provide for renewal options ranging from three months to six years. During the year ended June 30, 2025, the City recognized $193,446 and $41,304 in lease revenue and interest revenue, respectively, pursuant to these contracts.

NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025, was as follows:

Governmental Activities
Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
Governmental Activities:

Capital Assets, Not Depreciated:

Land 42,049,782 $ 3,673,964 $ - $ 45,723,746$ Construction in Progress 64,471,951 59,301,127 - 123,773,078 Total Capital Assets,
Not Depreciated 106,521,733 62,975,091 - 169,496,824 Capital Assets, Being Depreciated/Amortized:

Structures and Improvements 91,499,569 14,875 - 91,514,444 Furniture and Equipment 21,862,740 2,177,494 (1,541,294) 22,498,940 Right-to-Use Assets:

Leases 953,483 - (52,751) 900,732 Subscription 3,976,348 135,565 (304,282) 3,807,631 Infrastructure 1,817,393,128 6,932,761 - 1,824,325,889 Total Capital Assets,
Being Depreciated 1,935,685,268 9,260,695 (1,898,327) 1,943,047,636 Less Accumulated Depreciation/Amortization for:

Structures and Improvements (44,292,166) (2,698,066) - (46,990,232) Furniture and Equipment (11,669,394) (1,625,559) 1,529,687 (11,765,266) Right-to-Use Assets:

Leases (438,995) (234,941) 52,751 (621,185) Subscription (1,794,826) (854,120) 304,282 (2,344,664) Infrastructure (1,094,774,935) (37,900,855) - (1,132,675,790) Total Accumulated
Depreciation/Amortization (1,152,970,316) (43,313,541) 1,886,720 (1,194,397,137) Total Capital Assets,
Being Depreciated/Amortized, Net 782,714,952 (34,052,846) (11,607) 748,650,499 Governmental Activities
Capital Assets, Net 889,236,685 $ 28,922,245 $ (11,607) $ 918,147,323$

Depreciation expense was charged in the following functions in the statement of activities for the year ended June 30, 2025, as follows:

General Government 1,779,694 $
Public Safety 155,490
Development Services 38,266,511
Community Development 545,059
Parks, Recreation, and Arts 2,566,787
Total 43,313,541 $

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 6 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2025 was as follows:

Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
Capital Assets, Being Depreciated:

Intangible Assets 23,486,774 $ - $ - $ 23,486,774$ Less Accumulated Depreciation for:

Intangible Assets (11,743,012) (939,846) - (12,682,858) Total Business-Type Activities
Capital Assets, Net 11,743,762 $ (939,846) $ - $ 10,803,916$

The depreciation expense of $939,846 was charged to the Lancaster Power Authority program for the year ended June 30, 2025.

NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Due To/From Other Funds
Interfund receivable and payable balances at June 30, 2025 are as follows:

Receivable Payable Amount
General Fund Transportation Development Authority 9,710,634 $ Measure R 12,994,465
Lancaster Financing Authority 2,403,984
Other Governmental Funds 4,314,590
Lancaster Choice Energy
Enterprise Fund 11,042,696
Total 40,466,369 $

The due to General Fund was a result of temporary deficit cash balances in those funds.

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JUNE 30, 2025

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NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS (CONTINUED) Transfers
The following schedule summarizes the City’s transfer activity:

Transfers In Transfers Out Amount
General Fund Other Governmental Funds 5,426,962 $
Lancaster Power Authority
Enterprise Fund 11,505
Lancaster Choice Energy
Enterprise Fund 940,864
Lancaster Financing Authority
Debt Service Fund General Fund 3,682,596
Other Governmental Funds 2,917,108
Lancaster Choice Energy
Enterprise Fund 25,441
Other Governmental Funds General Fund 2,193,598
Transportation Special Revenue Fund 8,402,000
Other Governmental Funds 275,504
Total 23,875,578 $

Transfers made to the General Fund were for administrative and retiree health benefit costs incurred.

Transfers made to the Lancaster Financing Authority Debt Service Fund were for debt service requirements.

Transfers made to Other Governmental Funds were to cover various operations and capital projects.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2025, are as follows:

Balance Balance Due Due in More
June 30, 2024 Additions Deletions June 30, 2025 One Year than One Year Direct Borrowings:

Section 108 Notes:

Series 2015-A2 106,000$ - $ 106,000$ - $ - $ - $ Equipment Agreements Payable 277,437 - 135,733 141,704 141,704 - Loans 6,071,434 - 132,649 5,938,785 68,785 5,870,000 Settlement Agreement 600,000 - 200,000 400,000 200,000 200,000 Other Debt:

Streetlight Acquisition
Issue of 2016 10,250,000 - 640,000 9,610,000 660,000 8,950,000 Public Improvements Project
Issue of 2018 12,950,000 - 320,000 12,630,000 330,000 12,300,000 Measure M & R Street:

Improvement
Project Issue of 2018 43,870,000 - 865,000 43,005,000 905,000 42,100,000 Unamortized Bond Premium 6,212,898 3,657,660 407,454 9,463,104 - 9,463,104 2024 Series A - 55,840,000 55,840,000 - 55,840,000 2024 Series B - 7,030,000 430,000 6,600,000 510,000 6,090,000 Other Long-Term Liabilities:

Lease Payable 510,041 - 259,042 250,999 125,199 125,800 Subscription Payable 1,347,257 127,565 697,996 776,826 732,048 44,778 Compensated Absences (1) 4,016,802 806,768 - 4,823,570 3,376,499 1,447,071 Claims and Judgements 2,146,000 1,513,897
785,897 2,874,000 942,000 1,932,000 Total Governmental
Activities 88,357,869 $ 68,975,890 $ 4,979,771 $ 152,353,988 $ 7,991,235 $ 144,362,753 $

(1) The change in compensated absences is shown as a net change.

The net pension liability is recorded in the fund incurring the current pension expense. For the net pension liability, the general fund normally liquidates 67%, and 33% is liquidated by the other governmental funds.

Section 108 Notes
Series 2015-A2
On June 30, 2004, the City issued $1,500,000 of US Government Guaranteed Notes, Series 2004-A, guaranteed by the Secretary of Housing and Urban Development.

The City has pledged as security for repayment of the notes from (a) future entitlements that the City may become eligible for under Section 108 of Title I of the Housing and Community Development Act of 1974 and (b) program income. During fiscal year 2015-2016, the City refinanced the 2004 Series notes at a lower interest rate by issuing Series 2015-A2 notes. The notes mature from 2006-2024 and bear varying rates of interest. The note was paid off during the year.

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JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Equipment Agreements Payable
On March 1, 2011, the City entered into an equipment purchase agreement for various capital improvements including lighting upgrades, athletic field lighting upgrades, HVAC system replacement, plumbing fixture upgrades, irrigation weather stations, and solar hot water heating. The total cost of the equipment acquired under the agreement was $1,600,000. The financing was obtained from Municipal Finance Corporation on March 1, 2011, for $1,600,000 with an interest rate of 4.35% per annum and annual payments of $146,341 through the end of the lease (March 2026). The outstanding balance at June 30, 2025 is $141,704.

The future payments debt service payments are as follows:

Year Ending June 30, Principal Interest Total
2026 141,704 $ 4,637 $ 146,341 $

Loans
In January 2011, the City entered into a loan agreement with the State of California Energy Resources Conservation and Development Commission for a loan of $1,469,146 to be used for energy savings projects consisting of athletic field lighting upgrades, HVAC retrofit, weather station installation, and solar hot water. The loan is at an interest rate of 3%. Principal, together with interest thereon, is due and payable in semiannual installments beginning on December 22, 2012, through December 22, 2025. The outstanding balance at June 30, 2025 is $68,785.

The annual requirements to amortize the outstanding indebtedness as of June 30, 2025 are as follows:

Year Ending June 30, Principal Interest Total
2026 68,785 $ 1,020 $ 69,805 $

In December 2021, the City entered into a promissory note in the amount of $5,870,000 for the purchase of land. The note bears interest at 5.9% per annum, with interest due and payable beginning December 2022. The entire principal balance of the note matures on December 27, 2026. The outstanding balance at June 30, 2025 is $5,870,000.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Assessment Revenue Bonds
On October 26, 2016, the Lancaster Financing Authority issued $14,250,000 of 2016 Assessment Revenue Streetlights Acquisition Bonds. These bonds were used to finance the purchase of streetlights throughout the City. Interest on these bonds is due semiannually on March 2 and September 2 of each year, commencing March 2, 2017.

Interest rates vary from 2% to 4%. The principal portion of these bonds is payable from September 2, 2017 to September 2, 2036. The outstanding balance at June 30, 2025 is $9,610,000.

The bond indenture requires the City to maintain a bond reserve in the amount of $975,606. To satisfy this requirement, the City purchased as municipal bond insurance policy. The annual requirements to amortize the outstanding indebtedness as of June 30, 2025 are as follows:

Year Ending June 30, Principal Interest Total
2026 660,000 $ 313,656 $ 973,656 $
2027 680,000 293,556 973,556
2028 700,000 269,356 969,356
2029 725,000 240,856 965,856
2030 755,000 211,256 966,256
2031 - 2035 4,210,000 632,991 4,842,991 2036 - 2037 1,880,000 59,219 1,939,219 Total 9,610,000 $ 2,020,890 $ 11,630,890 $

Lease Revenue Bonds
Public Improvements Project, Issue of 2018
On December 1, 2018, the Lancaster Financing Authority issued $14,955,000 of Lease Revenue Bonds, Series 2018, Public Improvements Project Bonds. These bonds were issued to finance improvements to City facilities. Interest on these bonds is due semiannually on May 1 and November 1 of each year, commencing May 1, 2019. Interest rates vary from 3% to 5%. The principal portion of these bonds is payable from May 1, 2019 to May 1, 2048. The outstanding balance at June 30, 2025 is $12,630,000.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
Public Improvements Project, Issue of 2018 (Continued)
The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The annual requirements to amortize the outstanding indebtedness as of June 30, 2025 are as follows:

Year Ending June 30, Principal Interest Total
2026 330,000 $ 520,281 $ 850,281 $
2027 345,000 503,781 848,781
2028 365,000 486,531 851,531
2029 385,000 468,281 853,281
2030 400,000 449,031 849,031
2031 - 2035 2,305,000 1,946,219 4,251,219 2036 - 2040 2,780,000 1,477,231 4,257,231 2041 - 2045 3,360,000 885,800 4,245,800 2046 - 2048 2,360,000 191,400 2,551,400 Total 12,630,000 $ 6,928,555 $ 19,558,555 $

Street Improvements Project, Issue of 2019
On October 1, 2019, the Lancaster Financing Authority issued $48,405,000 of Lease Revenue Bonds, Series 2019, Measure M & R Street Improvements Project Bonds.

These bonds were issued to finance certain local roadway and street improvements.

Interest on these bonds is due semiannually on, December 1 and June 1 of each year, commencing May 1, 2020. Interest rates vary from 3% to 4%. The principal portion of these bonds is payable from May 1, 2020 to May 1, 2049. The outstanding balance at June 30, 2025 is $43,005,000.

The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The bonds are payable from the revenues pledged, which consist of:

 All Measure M Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County, to the extent that the applicable Project constitutes a Measure M Project; and all Measure R Receipts, which consist of certain amounts received by the City from

0.5% retail transactions and use tax that is collected by the County through June 30, 2039, to the extent that the applicable Project constitutes a Measure R Project.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(57)

NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
Street Improvements Project, Issue of 2019 (Continued)
The annual requirements to amortize the outstanding indebtedness as of June 30, 2025 are as follows:

Year Ending June 30, Principal Interest Total
2026 905,000 $ 1,794,050 $ 2,699,050 $
2027 950,000 1,748,800 2,698,800
2028 1,000,000 1,701,300 2,701,300
2029 1,050,000 1,651,300 2,701,300
2030 1,105,000 1,598,800 2,703,800
2031 - 2035 6,360,000 7,148,300 13,508,300 2036 - 2040 7,780,000 5,729,000 13,509,000 2041 - 2045 12,210,000 3,832,200 16,042,200 2046 - 2049 11,645,000 1,187,200 12,832,200 Total 43,005,000 $ 26,390,950 $ 69,395,950 $

Lease Revenue Bonds Series 2024 A and B
On July 17, 2024, the Lancaster Financing Authority issued $55,840,000 of Tax-Exempt Lease Revenue Bonds, Series 2024A and $7,030,000 Federally Taxable Lease Revenue Bonds, Series 2024B. These bonds were issued for the conversion of the existing minor league baseball stadium for use as a minor league soccer stadium, certain parks and recreation improvements with the City. Principal on the bonds is due annually on May 1 and interest payments are due May 1 and November 1 of each year.

The outstanding balances at June 30, 2025 are $55,840,000 and $6,600,000, respectively.

The annual requirements to amortize the outstanding indebtedness as of June 30, 2025 are as follows:

Year Ending June 30, Principal Interest Total
2026 - $ 2,651,100$ 2,651,100 $ 2027 - 2,651,100 2,651,100 2028 - 2,651,100 2,651,100 2029 - 2,651,100 2,651,100 2030 - 2,651,100 2,651,100 2031 - 2035 5,765,000 15,218,100 20,983,100 2036 - 2040 9,265,000 10,470,000 19,735,000 2041 - 2045 11,825,000 7,808,000 19,633,000 2046 - 2050 14,655,000 4,927,500 19,582,500 2051 - 2054 14,330,000 1,118,500 15,448,500 Total 55,840,000 $ 52,797,600 $ 108,637,600 $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds Series 2024 A and B (Continued)
Year Ending June 30, Principal Interest Total
2026 510,000 $ 353,734 $ 863,734 $
2027 1,065,000 325,837 1,390,837
2028 1,120,000 268,871 1,388,871
2029 1,180,000 210,026 1,390,026
2030 1,240,000 147,438 1,387,438
2031 - 2032 1,485,000 90,203 1,575,203 Total 6,600,000 $ 1,396,109 $ 7,996,109 $

Settlement Agreement
In September 2015, the City entered into a settlement agreement for $2,400,000. The terms of the agreement allow for payments of the settlement in annual installments of $200,000 beginning on September 1, 2015 through August 1, 2026. The outstanding balance at June 30, 2025, is $400,000.

Leases
The City leases equipment as well as certain operating and office facilities for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through fiscal year 2027 - 2028.

Total future minimum lease payment are as follows:

Year Ending June 30, Principal Interest Total
2026 125,199 $ 9,147 $ 134,346 $
2027 109,909 3,144 113,053
2028 15,891 55 15,946
Total Minimum Lease Payments 250,999$ 12,346 $ 263,345 $ Governmental Activities

Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Governmental
Activities
Equipment 340,021$
Vehicles 560,711
Less: Accumulated Amortization (621,185)
Total 279,547 $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Leases (Continued)
Subscription-Based Information Technology Arrangements
The City has entered into subscription based-information technology arrangements (SBITAs) for two software applications. The SBITA arrangements expire at various dates through 2027 and provide for renewal options.

As of June 30, 2025, SBITA assets and the related accumulated amortization totaled $3,807,631 and $2,344,664, respectively.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Total
2026 732,048 $ 65,917 $ 797,965 $ 2027 44,778 1,762 46,540 Total Minimum
Subscription Payments 776,826 $ 67,679 $ 844,505 $ Governmental Activities

Business-Type Activities
Changes in long-term liabilities for the business-type activities for the year ended June 30, 2025 are as follows:

Balance Balance Due Due in More Than
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year Other Debt:

Taxable Revenue Refunding
Bonds, Series 2021 17,155,000 $ - $ 830,000$ 16,325,000 $ 945,000 $ 15,380,000 $ Unamortized Bond Discount (300,473) - 23,454 (277,019) - (277,019) Total Business-Type
Activities 16,854,527 $ - $ 853,454$ 16,047,981 $ 945,000 $ 15,102,981 $

2012A Solar Renewable Energy Revenue Bonds
On May 17, 2012, the Lancaster Power Authority issued $26,895,000 of 2012A Solar Renewable Energy Revenue Bonds. These bonds were used to finance the prepayment for specified supply of electricity from a 7,319.98 DC kW capacity system. The 2012A Solar Renewable bonds were refunded in advance with the proceeds from the Taxable Revenue Refunding Bonds, Series 2021.

Taxable Revenue Refunding Bonds, Series 2021
On October 1, 2021, the Lancaster Power Authority issued $19,305,000 of Taxable Revenue Refunding Bonds, Series 2021. These bonds were used advance refund the 2012A Solar Renewable Energy Revenue Bonds, purchase a surety bonds for the reserve account, purchase a municipal bond ins urance policy and pay costs of issuance.

Principal on the bonds is due annually on November 1 and interest payments are due November 1 and April 1 of each year. The advance refunding resulted in cash flow difference of $2.88 million and present value savings of $2.47 million.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
The annual requirements to amortize the outstanding indebtedness as of June 30, 2025, are as follows:

Year Ending June 30, Principal Interest Total
2026 945,000 $ 364,041 $ 1,309,041 $
2027 1,005,000 351,510 1,356,510
2028 1,070,000 335,622 1,405,622
2029 1,135,000 315,825 1,450,825
2030 1,215,000 292,686 1,507,686
2031 - 2035 7,325,000 1,002,826 8,327,826
2036 - 2037 3,630,000 106,252 3,736,252
Total 16,325,000 $ 2,768,762 $ 19,093,762 $

NOTE 9 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension-related items for the year ended June 30, 2025:

Deferred Deferred Pension
Pension Outflows of Inflows of (Income)
Liability Resources Resources Expense
CalPERS Miscellaneous 78,649,780$ 18,874,970 $ - $ 14,715,433$ PARS 3,571,688 675,382 (689,535) 119,644 Total 82,221,468 $ 19,550,352 $ (689,535) $ 14,835,077 $

A. Public Employees Retirement System (CalPERS)
General Information about the Pension Plan
Plan Description
All qualified regular and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiemployer defined benefit pension plan administered by the California Public Employ ees’ Retirement System (CalPERS).

Benefit provisions under the Miscellaneous Plan are established by state statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Benefits Provided (Continued)
All members are eligible for nonindustrial disability benefits after five years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Miscellaneous Plan’s provisions and benefits in effect at year ended June 30, 2025 are summarized as follows:

Classic Members Classic Members New Members
Hired Prior to Hired On or After Hired On or After
Hire Date January 1, 2013 January 1, 2013 January 1, 2013 Benefit Formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 55+ 50 - 63+ 52 - 67+
Monthly Benefits, as a %
of Eligible Compensation 2% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required Employee
Contribution Rates 7.58% 7.25% 7.25%
Required Employer
Contribution Rates:

Normal Cost Rate 12.15% 12.15% 12.15%
Payment of Unfunded
Liability 6,590,314 $ - $ - $ Miscellaneous Plan

Employees Covered
At the June 30, 2024, measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Plan
Inactive Employees or Beneficiaries Currently
Receiving Benefits 359
Inactive Employees Entitled to But Not Yet
Receiving Benefits 530
Active Employees 320
Total 1,209

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Employees Covered (Continued)
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employ er to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The City made contributions to the plan during fiscal year ended June 30, 2025 of $10,469,815.

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

Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous
Plan
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.3%
Projected Salary Increase (1)
Mortality Rate Table (2)
Postretirement Benefit Income (3)

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Actuarial Assumptions (Continued)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:

New Real Return
Strategic Years
Asset Class Allocation (a)(b)
Global Equity - Cap-weighted 30.00 % 4.45 %
Global Equity - Non-Cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
Total 100.00 %
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan are as follows:

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2023
(Measurement Date) 236,838,314 $ 158,872,666 $ 77,965,648 $ Changes in the Year:

Service Cost 5,339,336 - 5,339,336 Interest on the Total Pension
Liability 16,528,945 - 16,528,945 Changes of Benefit Terms - - - Differences Between Expected
and Actual Experience 5,628,971 - 5,628,971 Contribution - Employer - 9,185,768 (9,185,768) Contribution - Employee - 2,363,495 (2,363,495) Net Investment Income - 15,393,132 (15,393,132) Administrative Expenses - - - Benefit Payments, Including
Refunds of Employee
Contributions (11,174,046) (11,174,046) -
Other Miscellaneous Income
(Expense) - (129,275) 129,275 Net Changes 16,323,206 15,639,074 684,132
Balance at June 30, 2024
(Measurement Date) 253,161,520 $ 174,511,740 $ 78,649,780 $ Increase (Decrease)

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

1% Decrease Discount Rate 1% Increase

5.90% 6.90% 7.90%
Net Pension Liability 113,815,936 $ 78,649,780 $ 49,744,227 $

Pension Plans Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $14,715,433. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date 10,469,815 $ - $
Differences Between Expected and
Actual Experience 6,134,801 -
Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments 2,270,354 -
Total 18,874,970 $ - $

Deferred outflows of resources of $10,469, 815 that are related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending 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 Ending June 30, Amount
2026 4,099,830 $
2027 5,889,635
2028 (698,379)
2029 (885,931)
2030 -
Thereafter -
Total 8,405,155 $

Payable to the Pension Plans
At June 30, 2025, the City had no outstanding contributions to the CalPERS pension plan required for the year ended June 30, 2025.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS)
General Information about the Pension Plan
Plan Description and Benefits
Until December 29, 2012, the City, pursuant to sections 401(a) and 501(a) of the Internal Revenue Code (IRC), the City adopted a tax-qualified single-employer governmental defined benefit plan that is to be administered for the City by Public Agency Retirement Service (PARS), a third-party administrator. The plan was established to provide eligible employees, supplemental retirement benefits in addition to the benefits employees will receiv e from the California Public Employees Retirement System (CalPERS). The plan is closed. A separate financial report is not available for the plan.

Employees Covered
At the June 30, 2024, measurement date, there were 68 inactive employees or beneficiaries receiving benefits.

Contributions
The actuarial contribution is determined on the funding policy and most recent measurement available when the contribution for the reporting period was adopted.

Net Pension Liability
The City’s net pension liability for this plan is measured as the pension plan’s fiduciary net position less the total pension liability. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures.

A summary of principal assumptions and methods used to determine the net pension asset is shown on the following page.

Actuarial Assumptions
The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Level % of Pay
Actuarial Assumptions:

Discount Rate 4.55%
Inflation 2.50%
Investment Rate of Return 5.5%
Mortality Assumption for Service CalPERS 2021 Experience Study

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Change of Assumptions and Changes in Experience Affecting the Measurement of the Total Pension Liability Since the Prior Measurement Date Since the prior measurement date of June 30, 2023, the discount rate was updated from 4.32% to 4.55%.

Discount Rate
The discount rate of 4.55% was used to measure the total pension liability and was a blended rate equivalent to combination of the long-term expected rate of return on assets and Bond Buyer 20 Index, which is 5.50% at June 30, 2024. In a crossover test, future employer contributions to the trust were assumed to be zero.

The 5.50% long-term expected rate of return was derived based on the inflation assumption of 2.50% and a long-term asset allocation of 50.00% equities, 45% fixed income, and 5% cash equivalent. The geometric real rates of return were assumed to be 6.96% for equities, 4.88% for fixed income, and 0.00% for cash equivalent.

The table below reflects the long-term expected real rate of return by asset class.

The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 50.00 % 6.96 %
Fixed Income 45.00 4.88
Cash 5.00 -
Total 100.00 %

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JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Changes in the Net Pension Liability
The changes in the net pension liability for the plans, using the measurement period ended June 30, 2024, are as follows:

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2023
(Measurement Date) 11,476,805 $ 7,312,722 $ 4,164,083 $ Changes in the Year:

Service Cost - - - Interest on the Total Pension
Liability 479,468 - 479,468 Changes in Benefit Terms - - - Changes in Assumptions (247,382) - (247,382) Differences Between Expected
and Actual Experience - - - Net Investment Income - 838,796 (838,796) Administrative Expenses - - - Benefit Payments (756,009) (756,009) -
Administrative Expenses - (14,315) 14,315 Net Changes (523,923) 68,472 (592,395) Balance at June 30, 2024
(Measurement Date) 10,952,882 $ 7,381,194 $ 3,571,688 $ Increase (Decrease)

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

1% Decrease Discount Rate 1% Increase

3.55% 4.55% 5.55%
Net Pension Liability (Asset) 4,725,873$ 3,571,688 $ 2,601,558 $

Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS and PARS financial reports.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $119,644. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Net Differences Between Projected and Actual
Earnings on Plan Investments 675,382 $ (689,535) $

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

Year Ending June 30, Amount
2026 (35,116) $
2027 225,104
2028 (112,585)
2029 (91,556)
2030 -
Thereafter -
Total (14,153) $

Payable to the Pension Plans
At June 30, 2025, the City had no outstanding contributions to the PARS pension plan required for the year ended June 30, 2025.

NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN
General Information about the OPEB Plan
Plan Description
The City provides other postemployment benefits (OPEB) through a single-employer defined benefit health care plan by contributing a portion of premiums charged under the health benefit plan for all eligible employees. These medical, dental, vision, and long-term care benefits are provided per contract between the City and union employee associations and unrepresented employees. A separate financial report is not available for the plan. This plan has been closed to new employees and the future benefit levels are frozen as of January 1, 2016.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
General Information about the OPEB Plan (Continued)
Plan Description (Continued)
The City entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to prefund the City’s OPEB liability.

Employees Covered
As of the June 30, 2024 measurement date, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees, Spouses, or Beneficiaries
Current Receiving Benefits 144
Active Employees 287
Total 431

Contributions
Contribution requirements are established by City policy and may be amended by the City Council. The annual contribution is based on the actuarially determined contribution.

For the year ended June 30, 2025, the City’s cash contributions were $2,096,798 in payments to the trust and the estimated implicit subsidy was $380,568, resulting in total contributions of $2,477,366.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was dete rmined by using an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

Actuarial Assumptions
The total OPEB liability as of June 30, 2023 actuarial valuation was determined using the following actuarial assumptions and applied to all periods included in the measurement, unless otherwise specified:

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 5.58%
Inflation 2.50%
Projected Salary Increase Aggregate - 2.80%
Expected Long-Term Investment Rate of Return 5.50%
Pre-65 8.00% for 2025,
Health Care Cost Trend Rates Decreasing to 4.50% in 2040, Post-65 6.50% for 2025,
Decreasing to 4.50% in 2034,
Mortality, Retirement, Disability, and Termination Derived from CalPERS 2021 Experience Study

The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense, and inflatio n) are developed for each major asset class. The asset class percentages are tak en from the current composition of CERBT and the expected yields are taken from a recent CalPERS publication for the pension fund:

Long-Term
Target Expected Gross
Asset Class Allocation Rate of Return
US Equity 26.00% 4.40%
International Equity 14.00 6.30
US Bonds 60.00 2.10
Total 74.26 % 3.28%

Discount Rate
The discount rate used to measure the total OPEB liability is 5.58%. This is the expected long-term rate of return on City assets using investment strategy 2 within CERBT. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates.

Based on those assumptions, the OPEB plan’s fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long- term expected rate of return.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:

Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 30, 2023
(Measurement Date) 21,889,353 $ 16,583,615 $ 5,305,738 $ Changes in the Year:

Service Cost 392,454 - 392,454 Interest on the Total OPEB Liability 1,192,212 - 1,192,212 Differences Between Actual
and Expected Experience (437,505) - (437,505) Changes in Assumptions 522,443 - 522,443 Changes in Benefit Terms - - - Contribution - Employer - 2,307,440 (2,307,440) Net Investment Income - 1,332,356 (1,332,356) Administrative Expenses - (3,120) 3,120 Benefit Payments (1,226,860) (1,226,860) -
Net Changes 442,744 2,409,816 (1,967,072) Balance at June 30, 2024
(Measurement Date) 22,332,097 $ 18,993,431 $ 3,338,666 $ Increase (Decrease)

Change of Assumptions
The discount rate changed from 5.50% to 5.58%.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

1% Decrease Discount Rate 1% Increase

4.58% 5.58% 6.58%
Net OPEB Liability 5,841,308 $ 3,338,666 $ 1,214,963 $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated us ing health-care cost trend rates that are one percentage point lower (7.00% decreasing to 3.50%) or one percentage point higher (9.00% decreasing to 5.50%) than current health-care cost trend rates:

Current Health
Care Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Liability 829,553 $ 3,338,666 $ 6,343,337 $

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB income of $269,735. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to
Measurement Date 2,477,366 $ - $
Differences Between Actual and Expected Experience 344,378 4,570,631 Change in Assumptions 877,360 1,001,276
Differences Between Projected and Actual Earnings 652,278 - Total 4,351,382 $ 5,571,907 $

An amount of $2,477,366, which is reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ending June 30, Amount
2026 (941,095) $
2027 (610,796)
2028 (1,173,927)
2029 (600,466)
2030 (191,112)
Thereafter (180,495)
Total (3,697,891) $

Payable to the OPEB Plan
At June 30, 2025, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 11 ANTELOPE VALLEY TRANSIT AUTHORITY JOINT VENTURE The City is a member of the Antelope Valley Transit Authority (the Transit Authority), a joint powers authority of the County of Los Angeles and the cities of Palmdale and Lancaster.

The Transit Authority was formed to provide public transit service to Palmdale and Lancaster. The governing board consists of one person from each member agency. Each member has one vote.

Description of Debt
On October 1, 1991, the California Special Districts Association Finance Corporation, on behalf of the Los Angeles County Transportation Commission, issued Certificate of Participation Notes in the amount of $19,340,000. This issue was for the benefit of several different transit authorities. The Certificates of Participation were issued prior to the formation of the Antelope Valley Transit Authority. Los Angeles County participated in this issuance on behalf of the Transit Authority to provide financing of $7,690,000 for the purchase of transportation equipment.

Subsequent to the Certificate of Participation issue, the Transit Authority entered into a “Reimbursement Agreement” with the County of Los Angeles to repay the obligation incurred by the County on their behalf.

As of June 30, 2025 (latest information available), Antelope Valley Transit Authority’s financial position was as follows:

Assets 163,390,464 $
Deferred Outflow of Resources 1,399,382 $
Liabilities 4,136,070 $
Deferred Inflows of Resources 557,524 $
Net Position 160,096,252 $
Revenues 55,830,910 $
Expenses 57,109,407
Changes in Net Position (1,278,497) $

The Transit Authority is funded, in part, by revenues allocated to the City and redirected to the Transit Authority and, in part, by a shared formula based on the level of service provided to the jurisdiction. The City of Lancaster is the primary recipient of local services from the Transit Authority. The City does not have an equity interest or a financial responsibility because the Transit Authority does not depend on revenue from the City to continue existence.

Separate financial statements of the Transit Authority are available from the Transit Authority office located at 1031 W. Avenue L-12, Lancaster, California 93534.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 12 RISK MANAGEMENT
The City is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

The City handled those risks with the purchase of commercial insurance. The City maintained liability insurance coverage up to a limit of $10,000,000 with $250,000 self-insurance retention for its general liabil ities. Workers’ compensation insurance is provided by PRISM, with statutory limit coverage. The City also maintained property coverage including earthquake and flood.

At June 30, 2025, $2,874,000 has been accrued for general liability claims. This amount represents an estimate of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends and information.

While the ultimate amount of losses incurred through June 30, 2025, is dependent on future developments, based upon information from the City Attorney, the City’s claims administrators, and others involved with t he administration of the programs, City management believes the accrual is adequate to cover such losses.

Changes in the claims liability amount in fiscal years 2024 and 2025 were as follows:

Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Ended Liability Estimates Payments Liability 2023 - 2024 2,550,000 $ 1,227,364 $ 1,631,364 $ 2,146,000 $ 2024 - 2025 2,146,000 $ 1,513,897 $ 785,897 $ 2,874,000 $

For workers’ compensation insurance, the City has transferred all risk of loss with the purchase of commercial insurance policies and has not reported any estimated loss in the financial statements.

There were no significant reductions in insurance coverage from the previous year. In addition, insurance coverage exceeded the amount of settlements for each of the past three fiscal years.

NOTE 13 CONTINGENT LIABILITIES
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that t hey will have a material adverse effect on the accompanying financial statements.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 14 CONSTRUCTION COMMITMENTS
The following material construction commitments existed at June 30, 2025:

Expenditures
Contract to Date as of Remaining
Project Name Amount June 30, 2025 Commitments
AVE J/SR 138 (SR 14) INTRCHG - MSR 34,055,652.38 $ 24,175,665.30 $ 9,879,987 $ LANCASTER HEALTH DISTRICT 23,331,752.89 3,933,185.53 19,398,567 MUNICIPAL STADIUM RENOVATION 21,824,006.24 19,273,263.10 2,550,743 AVE M/SR 138 (SR 14) INTRCHG - MSR 8,353,097.03 87,725.00 8,265,372 SPP EL DORADO PARK IMPROVEMENT 7,779,830.84 572,109.08 7,207,722 ATP CYCLE 6_5TH E CORR SCHOOL CON 7,738,809.16 - 7,738,809 AVE K/SR 138 (SR 14) INTRCHG - MSR 7,633,604.27 587,938.69 7,045,666 PARK N RIDE PARKING REFURBISH 7,063,740.59 1,622,307.63 5,441,433 PMP - RB NBH 6,724,367.90 5,458,474.19 1,265,894 AVHUSD PROP ACQUISITION 6,704,499.76 6,704,399.76 100 FENCE/LANDSCAPE RPLCMNT-SIERRA HWY 5,303,712.32 151,609.86 5,152,102 AVE L AND 5TH E DRAINAGE IMPRV 5,150,000.00 932,558.64 4,217,441 2025 PMP - ROAD REHAB PROJ 5,113,673.83 186,710.75 4,926,963 MIDTOWN CENTER 5,000,000.00 4,933,891.16 66,109 AMARGOSA RECREATION TRAIL CALTRANS 4,858,742.66 - 4,858,743 2024 PMP - ROAD REHAB PROJ 4,204,451.16 398,709.41 3,805,742 MARIPOSA PARK IMPROVEMENTS 4,024,783.66 3,010,379.83 1,014,404 STREET SWEEPING MAINTENANCE 3,938,648.28 2,977,662.63 960,986 TRACT IMPROVEMENTS WESTERN INSUR 3,434,325.00 - 3,434,325 AV EVENT CENTER AND EVAC CENTR 3,296,811.00 2,825,838.00 470,973 28 SIGNALIZED SAFETY UPGRADES 2,897,555.42 75.00 2,897,480 PEDESTRIAN GAP CLOSURE IMPS 2,473,693.81 - 2,473,694 2024 PMP - PREVENTATIVE MAINT 2,415,967.78 133,824.16 2,282,144 CITY HALL RESILIENCY/BATTERY 2,404,593.01 - 2,404,593 AVTA BUS STOP IMPROVEMENTS 2,354,916.51 35,893.40 2,319,023 2 WAY STOP ROUNDABOUT CONVERSION 2,344,912.52 8,948.00 2,335,965 AVE J AT-GRADE CROSSING 2,220,928.73 731,843.76 1,489,085 MPD IMPROV BASIN AT AV M/ 32ND W - 2,068,467.48 111,089.85 1,957,378 TROPICAL STORM HILARY REPAIRS AND 2,000,000.00 9,434.56 1,990,565 CITY HALL FACE LIFT 1,656,705.13 661,143.47 995,562 2024 PMP - PAVEMENT PRESERVATION 1,615,436.00 107,594.50 1,507,842 SIERRA HWY RESURF AVE I TO BLVD 1,606,479.03 1,235,904.12 370,575 35TH ST W IMPROVEMENTS PHASE 1 1,575,550.91 1,075,528.12 500,023 DEALERSHIP SIGNS 1,498,000.00 1,330,742.54 167,257 AVE K AT-GRADE CROSSING 1,349,832.98 714,278.04 635,555 SPP EL DORADO PLAYGROUND 1,328,747.27 - 1,328,747 AMAR CRK CHNL CLVRT IMP 20W&AVE J-8 1,245,595.59 993,423.30 252,172 STREETS & ROADWAY MAINT AND REPAIRS 1,239,384.32 1,239,384.32 - SAFER STREETS ACTION PLAN 1,179,290.81 103,396.04 1,075,895 AVE M AT-GRADE CROSSING 1,169,213.47 710,798.40 458,415 OMP HARDCOURT IMPROVEMENTS 1,095,776.86 635,498.41 460,278 RDP PLAYGROUND AND HARDCOURT IMPROV 1,082,517.00 912,238.48 170,279 ANNUAL LONG LINE STRIPING 992,319.61 907,040.19 85,279 YARD FACILITIES IMPROVEMENTS 941,460.72 355,261.43 586,199 BLVD PARKING LOT IMPROVEMENTS 792,882.87 3,420.00 789,463 HIGH VIS XWALK STANDARDIZATION 786,994.87 420,760.84 366,234 ANNUAL CONCRETE REPAIRS/MAINT 771,891.93 75.00 771,817 DRAINAGE IMPACT FEES REFUNDED 721,534.65 372,552.97 348,982

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(78)

NOTE 15 LANCASTER CHOICE ENERGY
Lancaster Energy (LE) has registered as a Community Choice Aggregator (CCA) for the purpose of delivering electric services to certain customers located within the City of Lancaster. LE entered into an administrative services agreement with California Choice Energy Authority (CalChoice), for administrat ion, energy procurement, contract negotiation, contract administration, resource planning services, and other services provided to the LE program. This contract has a term of the longer of three years from the effective date or the longest term of any energy contract to which the CalChoice is a party on behalf of LE. Due to large sales of Resource Adequacy, payments to LE from CalChoice for the fiscal year ended June 30, 2025 totaled $5,224,305.

CalChoice master “Take or Pay” agreements with different energy providers that LE uses to purchase energy to provide for future electric capacity for customers. LE enters into separate contracts with the providers and these contracts constitute an obligation of LE to purchase a set volume of electricity at a set price throughout the terms of the Contracts.

During the fiscal year ended June 30, 2025, the total payments made by LE under the take or pay contracts was $81,455,833. At June 30, 2025, the remaining take or pay contracts for LE is $386,354,927 through December 2041.

NOTE 16 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency of the City of Lancaster Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities.

Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2025 was as follows:

Balance Balance Due Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Other Borrowings:
2015 Housing A&B 16,150,000 $ - $ 775,000$ 15,375,000 $ 725,000 $ 14,650,000 $ 2017 Housing 47,745,000 - 3,325,000 44,420,000 3,570,000 40,850,000 2016 A-1 & A-2
Non-Housing 41,505,000 - 3,050,000 38,455,000 2,855,000 35,600,000 2016 B-1 & B-2
Non-Housing 12,195,000 - 805,000 11,390,000 845,000 10,545,000 2021 Lease Revenue Bonds 3,184,000 - 236,000 2,948,000 240,000 2,708,000 Total Successor Agency 120,779,000 - 8,191,000 112,588,000 8,235,000 104,353,000 Unamortized Original Issue
(Discount) or Premium 8,432,834 - 571,052 7,861,782 - 7,861,782 Net Long-Term Debt 129,211,834$ - $ 8,762,052$ 120,449,782 $ 8,235,000 $ 112,214,782 $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(79)

NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Combined Tax Allocation Notes and Bonds
a. On March 10, 2015, the Successor Agency issued $23,510,000 of Combined Redevelopment Project Areas (Housing Programs) Tax Allocation Refunding Bonds, issue of 2015A and B. This financing was undertaken to refund $23,510,000 in outstanding Agency debt. The principal portion of these bonds is payable from August 1, 2015 to 2026. Interest is payable semiannually on February 1 and August 1 of each year commencing on August 1, 2015. The outstanding balance at June 30, 2025 is $15,375,000.

b. On April 18, 2017, the Successor Agency issued $62,495,000 of Combined Redevelopment Project Areas (Housing Programs) Tax Allocation Refunding Bonds and $3,155,000 of Combined Redevelopment Project Areas (Housing Programs) Taxable Tax Allocation Refunding Bonds issue of 2017. This financing was undertaken to advance refund $47,750,000 of Combined Housing Financing Series 2003 Bonds and $24,680,000 of Combined Redevelopment Project Areas (Housing Program) Tax Allocation Bonds issue 2009. The principal portion of these bonds is payable annually from August 1, 2017 to 2039. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2017. The outstanding balance at June 30, 2025 is $44,420,000.

c. On June 14, 2016, the Successor Agency issued $61,425,000 of Combined Redevelopment Project Areas (Non-Housing Programs) Tax Allocation Refunding Bonds, issue of 2016A-1 & A-2. This financing was undertaken to advance refund $71,312,000 in outstanding Agency debt. The principal portion of these bonds is payable from August 1, 2016 to 2038. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2016. The outstanding balance at June 30, 2025 is $38,455,000.

d. On June 14, 2016, the Successor Agency issued $17,590,000 of Lancaster Redevelopment Project Area No. 5 and Project Area No. 6 (School District Pass- Throughs) Tax Allocation Refunding Bonds, issue of 2016 B-1 and B-2. This financing was undertaken to advance refund $21,763,000 in outstanding Agency debt. The principal portion of these bonds is payable from February 1, 2017 to 2037. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2016. The outstanding balance at June 30, 2025 is $11,390,000.

e. On July 23, 2021, the Lancaster Financing Authority issued $3,805,000 of 2021 Lease Revenue Refunding Bonds. This financing was undertaken to advance refund $4,035,000 in outstanding Agency debt. The principal portion of these bonds is payable from December 1, 2021 to 2035. Interest is payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2021. The outstanding balance at June 30, 2025 is $2,948,000.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(80)

NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Combined Tax Allocation Notes and Bonds (Continued)
The annual requirements to amortize the outstanding bond indebtedness for the Lancaster Redevelopment Agency Bonds and Notes, as of June 30, 2025, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2026 8,235,000 $ 4,346,622 $ 12,581,622 $
2027 8,593,000 3,975,233 12,568,233
2028 8,960,000 3,592,135 12,552,135
2029 9,337,000 3,257,825 12,594,825
2030 9,633,000 2,886,246 12,519,246
2031 - 2035 52,760,000 7,875,345 60,635,345
2036 - 2040 15,070,000 1,035,092 16,105,092
Total 112,588,000 $ 26,968,498 $ 139,556,498 $

Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low- and Moderate-Income Housing set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish low- and moderate-income housing projects, and to defease previously issued bonds. Assembly Bill 1 X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.

Total principal and interest remaining on the debt is $139,556,498 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $8,050,281 and the debt service obligation on the bonds was $12,669,674 broken down as follows:

Received in
FY 24/25
Scope of Fund Recognized by Successor Agency
for Enforceable Obligations:

Redevelopment Property Tax Trust Funds (RPTTF) 8,050,281$

Debt Service Obligations
Due in FY 2024/2025 Principal Due Interest Due Total
Non-Housing, Housing, and
School Bus (RPTTF) 7,955,000 $ 4,714,674 $ 12,669,674 $ Total Successor Agency
Debt Service Obligations
FY 24/25 7,955,000 $ 4,714,674 $ 12,669,674 $

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

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NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Due to the City of Lancaster and Lancaster Housing Authority A. SERAF Advance
Advances were made in previous years in the amount of $24,303,115 to assist in accomplishing payment to the Educational Re venue Augmentation Fund from the former redevelopment agency low- and moderate-income housing fund. The advances are now payable to the Lancaster Housing Authority as a result of the dissolution of redevelopment. The outstanding balance at June 30, 2025 is $7,912,442. The Successor Agency made repayments totaling $-0- to the Lancaster Housing Authority during the current fiscal years.

B. Prior Advances
In previous fiscal years, the City made multiple loans to the former Lancaster Redevelopment Agency. During the 2013-2014 fiscal year, many of those loans were reinstated as enforceable obligations of the Successor Agency and an additional $9,174,633 were reinstated in fiscal year 2015-2016. The outstanding principal totals $32,011,462; the interest at June 30, 2025 totals $26,132,690. The total amount due to the City and Housing Authority from the Su ccessor Agency on these prior advances is $58,144,152. No repayments were made during the current fiscal year and accrued unpaid interest of $960,364 was added to the advance balance.

Defeasance of Debt
In prior years, the Agency defeased certain tax allocation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Agency’s financial statements.

At June 30, 2025, the following defeased bond issues are still outstanding:

Amount
The Combined Housing Financing Bonds 2003 Issue 31,060,000$ Tax Allocation Bonds (Housing Programs) 2009 Issue 18,820,000

Noncommitment Debt
The Agency has issued $94,710,000 of Residential Mortgage Revenue Bonds that have not been reflected in long-term debt because these bonds are special obligations payable solely from and secured by specific revenue sources described in the bond resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Agency, the state of California, or any political subdivision thereof, is pledged for the payment of these bonds.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(82)

NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Insurance
The Successor Agency is covered under the City’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 12.

NOTE 17 DEFERRED COMPENSATION PLAN
The City has made available to its regular employees and mandatory for its temporary employees an IRC Section 457(b) deferred compensation plan, whereby employees authorize the City to withhold funds from salary to be invested in the ICMA Retirement Corporation’s Deferred Compensation Plan. For temporary employees, the mandatory 457(b) contribution is in lieu of contributing to Social Security or CalPERS.

Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contributions under the plan. The City withholds employee contributions from employee’s payroll checks and transmits these monies to the plan providers on a bi-weekly basis. The City makes distributions from the plans based solely upon authorizations by the plan administrator.

Pursuant to changes in IRC Section 457, on January 2, 1997, the City formally established a plan level trust in which all assets and income of the 457 plan were placed. The plan assets, all property and rights purchased with such amount, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of the participants and their beneficiaries. These assets are not the property of the City and, as such, are not subject to the claims of the City’s general creditors. The City has minimal involvement in the administration of the 457 plan and, therefore, la cks fiduciary accountability. As a result, the assets of the 457 plan are not reflected in the financial statements.

NOTE 18 DEFINED CONTRIBUTION PLAN
The City provides a tax-qualified retirement savings plan under Section 401(a) of the IRC to all regular employees. The Plan is a defined contribution plan and benefits depend solely on amounts contributed to the plan and investment earnings. The Plan is administered by the ICMA Retirement Corporation, and the City Council has the authority for establishing and amending the plan provisions. There were 324 participants in the Plan for the year ended June 30, 2025. Employer contributions are bas ed on an employee’s tier of eligibility. For the year ended June 30, 2025, employer contributions totaled $1,610,985. There are no required employee contributions.

As is the case with the 457 plan, the 401(a) plan assets are held in trust for distribution to employees and their beneficiaries. Funds may be withdrawn by participants upon termination of employment or retirement. The City lacks fiduciary accountability and as such, the assets of the 401(a) plan are not reflected in the financial statements.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025

(83)

NOTE 19 RETIREE HEALTH SAVINGS PLAN
The City provides a Retiree Health Savings Plan (RHSP) under IRC Section 105(h) to all regular employees hired after July 1, 2012. This defined contribution benefit is in lieu of any other postemployment benefits (OPEB) for these employees. There is a mandatory five-year vesting period to be eligible for distribution from this plan.

Additionally, the City provides a RHSP for mid-management and executive-management employees, employees opting out of other poste mployment benefits, and employees opting out of all medical coverage or opting for no dependent medical coverage. The City Council has the authority for establishing and amending plan provisions. There were 316 individuals in the RHSP at June 30, 2025. Employer contributions for the year ended June 30, 2025 totaled $764,440.

As with the other ICMA plans, assets of the RHSP are held in trust, eligible for withdrawal upon termination of employment, are not assets of the City, and are not reflected in the financial statements.

NOTE 20 RESTATEMENT
Change in Fund Presentation from Nonmajor to Major
Special Revenue Fund Measure R previously did not meet the criteria to be reported as a major governmental fund. However, effective July 1, 2024, the fund met the criteria to be reported as a major fund and is reported as a major governmental fund for the fiscal year ended June 30, 2025. The effect of that change within the financial reporting entity is shown in the table below

Other
Governmental
Measure R Funds
Fund Balance (Deficit) - as Previously Reported, July 1, 2024 - $ 44,572,108$ Change in Fund Balance for
Change Within Financial Reporting Entity (6,526,653) 6,526,653 Fund Balance (Deficit) - as Restated, July 1, 2024 (6,526,653) $ 51,098,761 $

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REQUIRED SUPPLEMENTARY INFORMATION

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS CalPERS PENSION PLANS

LAST TEN FISCAL YEARS

(86)

Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Measurement Period Ended J une 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability:

Service Cost 5,339,336 $ 4,617,487 $ 4,222,786 $ 3,835,000 $ 3,812,712 $ Interest on Total Pension Liability 16,528,945 15,486,594 14,305,083 13,947,225 13,228,411 Differences Between Expected and Actual Experience 5,628,971 8,337,543 (4,406,814) 1,656,000 1,608,904 Changes in Assumptions - - 7,974,044 - - Changes in Benefit Terms - 218,866 - - - Benefit Payments, Including Refunds of Employee
Contributions (11,174,046) (10,800,859) (9,515,662) (9,063,152) (8,246,671) Net Change in Total Pension Liability 16,323,206 17,859,631 12,579,437 10,375,073 10,403,356 Total Pension Liability - Beginning of Year 236,838,314 218,978,683 206,399,246 196,024,173 185,620,817 Total Pension Liability - End of Year (a) 253,161,520 $ 236,838,314 $ 218,978,683 $ 206,399,246 $ 196,024,173 $ Plan Fiduciary Net Position:

Contributions - Employer 9,185,768$ 8,635,828 $ 7,691,954 $ 6,735,805 $ 6,104,781 $ Contributions - Employee 2,363,495 1,893,145 1,681,343 1,518,908 1,680,632 Net Investment Income (Loss) 15,393,132 9,381,408 (12,367,601) 30,324,328 6,427,646 Benefit Payments (11,174,046) (10,800,859) (9,515,662) (9,063,152) (8,246,671) Net Plan to Plan Resource Movement - - - - - Administrative and Other Expense (129,275) (110,210) (101,218) (132,960) (179,482) Net Change in Plan Fiduciary Net Position 15,639,074 8,999,312 (12,611,184) 29,382,929 5,786,906 Plan Fiduciary Net Position - Beginning of Year 158,872,666 149,873,354 162,484,538 133,101,609 127,314,703 Plan Fiduciary Net Position - End of Year (b) 174,511,740 $ 158,872,666 $ 149,873,354 $ 162,484,538 $ 133,101,609 $ Net Pension Liability (Asset) - Ending (a)-(b) 78,649,780 $ 77,965,648 $ 69,105,329 $ 43,914,708 $ 62,922,564 $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 68.93% 67.08% 68. 44% 78.72% 67.90% Covered Payroll 26,429,406 $ 30,917,064 $ 26,429,406 $ 23,010,769 $ 20,370,100 $ Net Pension Liability as Percentage of Covered Payroll 297.58% 252.18% 261.47% 190.84% 308.90% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015, to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015, measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016, to June 30, 2017:

There were no significant changes in assumptions.

From fiscal year June 30, 2017, to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018, to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019, to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020, to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021, to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022, to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3%.

From fiscal year June 30, 2023, to June 30, 2024:

There were no changes in assumptions.

From fiscal year June 30, 2024, to June 30, 2025:

There were no changes in assumptions.

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS CalPERS PENSION PLANS (CONTINUED)

LAST TEN FISCAL YEARS

(87)

Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Measurement Period Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability:

Service Cost 3,984,412 $ 4,089,766 $ 4,120,166 $ 3,757,280 $ 3,659,838 $ Interest on Total Pension Liability 12,492,922 11,749,454 11,094,780 10,446,457 9,650,056 Differences Between Expected and Actual Experience 1,303,631 925,375 (449,010) 1,362,060 (445,730) Changes in Assumptions - (1,119,628) 9,732,561 - (2,517,116) Changes in Benefit Terms - - - - - Benefit Payments, Including Refunds of Employee
Contributions (7,180,971) (6,203,088) (5,495,333) (4,608,628) (4,011,772) Net Change in Total Pension Liabilit
y 10,599,994 9,441,879 19,003,164 10,957,169 6,335,276 Total Pension Liability - Beginning of Year 175,020,823 165,578,944 146,575,780 135,618,611 129,283,335 Total Pension Liability - End of Year (a) 185,620,817 $ 175,020,823 $ 165,578,944 $ 146,575,780 $ 135,618,611 $ Plan Fiduciary Net Position:

Contributions - Employer 5,376,086$ 4,949,350 $ 4,609,250 $ 4,077,018 $ 3,803,574 $ Contributions - Employee 1,594,327 1,606,648 1,558,516 1,628,815 1,611,229 Net Investment Income (Loss) 7,935,508 9,429,980 11,061,811 535,654 2,090,380 Benefit Payments (7,180,971) (6,203,088) (5,495,333) (4,608,628) (4,011,772) Net Plan to Plan Resource Movement 277 (277) - - - Administrative and Other Expense (85,403) (498,688) (145,875) (59,256) (109,427) Net Change in Plan Fiduciary Net Position 7,639,824 9,283,925 11,588,369 1,573,603 3,383,984 Plan Fiduciary Net Position - Beginning of Year 119,674,879 110,390,954 98,802,585 97,228,982 93,844,998 Plan Fiduciary Net Position - End of Year (b) 127,314,703 $ 119,674,879 $ 110,390,954 $ 98,802,585 $ 97,228,982 $ Net Pension Liability (Asset) - Ending (a)-(b) 58,306,114 $ 55,345,944 $ 55,187,990 $ 47,773,195 $ 38,389,629 $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 68.59% 68.38% 66. 67% 67.41% 71.69% Covered Payroll 19,995,467 $ 20,482,128 $ 19,501,764 $ 19,428,612 $ 19,407,546 $ Net Pension Liability as Percentage of Covered Payroll 291.60% 270.22% 282.99% 245.89% 197.81% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015, to June 30, 2016:

From fiscal year June 30, 2016, to June 30, 2017:

There were no significant changes in assumptions.

From fiscal year June 30, 2017, to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018, to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019, to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020, to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021, to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022, to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3%.

From fiscal year June 30, 2023, to June 30, 2024:

There were no changes in assumptions.

From fiscal year June 30, 2024, to June 30, 2025:

There were no changes in assumptions.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS

LAST TEN FISCAL YEARS

(88)

Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Actuarially Determined Contribution 10,469,815$ 9,181,497 $ 8,632,023 $ 7,699,142 $ 6,735,678 $ Contributions in Relation to the Actuarially
Determined Contributions (10,469,815) (9,181,497) (8,632,023) (7,699,142) (6,735,678) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll 32,098,871 $ 26,429,406 $ 23,010,769 $ 20,370,100 $ 20,158,000 $ Contributions as a Percentage of
Covered Payroll 32.62% 34.74% 37.51% 37.80% 33.41%
Notes to Schedule:

Valuation Date 6/30/2021 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.30% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 6.90% (3) 7.375% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service, and type of employment. (3) Net of pension plan investment expense, including inflation. (4) 50 years for 2.7% @ 55 and 2% @ 60, 52 years for 2% @ 62. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS (CONTINUED)

LAST TEN FISCAL YEARS

(89)

Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarially Determined Contribution 6,104,781 $ 5,376,086 $ 4,949,350 $ 4,609,250 $ 4,077,018 $ Contributions in Relation to the Actuarially
Determined Contributions (6,104,781) (5,376,086) (4,949,350) (4,609,250) (4,077,018) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ Covered Payroll 20,370,100 $ 19,995,467 $ 20,482,128 $ 19,501,764 $ 19,428,612 $ Contributions as a Percentage of
Covered Payroll 29.92% 26.81% 24.16% 22.71% 20.96%
Notes to Schedule:

Valuation Date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/213 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service, and type of employment. (3) Net of pension plan investment expense, including inflation. (4) 50 years for 2.7% @ 55 and 2% @ 60, 52 years for 2% @ 62. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET POSITION LIABILITY AND RELATED RATIOS

PARS PENSION PLAN

LAST TEN FISCAL YEARS

(90)

Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Measurement Period Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability:

Service Cost - $ - $ - $ - $ - $ Interest on Total Pension Liability 479,468 482,753 494,992 481,917 545,037 Differences Between Expected and Actual Experience - 83,118 - - - Changes in Assumptions (247,382) (23,210) 35,169 (670,041) 1,173,341 Changes in benefits - - - (163,673) - Benefit Payments, Including Refunds of Employee
Contributions (756,009) (743,071) (728,778) (710,129) (705,047) Net Change in Total Pension Liability (523,923) (200,410) (198,617) (1,061,926) 1,013,331 Total Pension Liability - Beginning of Yea
r 11,476,805 11,677,215 11,875,832 12,937,758 11,924,427 Total Pension Liability - End of Year (a) 10,952,882 $ 11,476,805 $ 11,677,215 $ 11,875,832 $ 12,937,758 $ Plan Fiduciary Net Position:

Contributions - Employer - $ - $ - $ - $ - $ Contributions - Employee - - - - - Net Investment Income (Loss) 838,796 500,693 (1,187,427) 1,786,017 262,205 Administrative Expense (14,315) (16,289) (16,638) (16,893) (16,793) Benefit Payments (756,009) (743,071) (728,778) (710,129) (705,047) Net Change in Plan Fiduciary Net Position 68,472 (258,667) (1,932,843) 1,058,995 (459,635) Plan Fiduciary Net Position - Beginning of Year 7,312,722 7,571,389 9,504,232 8,445,237 8,904,872 Plan Fiduciary Net Position - End of Year (b) 7,381,194 $ 7,312,722 $ 7,571,389 $ 9,504,232 $ 8,445,237 $ Net Pension Liability (Asset) - Ending (a)-(b) 3,571,688 $ 4,164,083 $ 4,105,826 $ 2,371,600 $ 4,492,521 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 67.39% 63.72% 64.84% 80.03% 65.28% Covered Payroll None None None None None
Net Pension Liability as Percentage of Covered Payroll N/A N/A N/A N/A N/A Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015, to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 6.50% used for the June 30, 2015, measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016, to June 30, 2017:

The discount rate was u
pdated from 6.50% to 4.99% and the expected long-term rate of return on investments was updated from 6.50% to 6.25%.

From fiscal year June 30, 2017, to June 30, 2018:

The discount rate was updated from 4.97% to 4.99% and the expected long-term rate of return on investments was updated from 6.25% to 6.00%.

From fiscal year June 30, 2018, to June 30, 2019:

The discount rate was updated from 4.99% to 5.12%.

From fiscal year June 30, 2019, to June 30, 2020:

The discount rate was updated from 5.12% to 4.71% and mortality improvement scale was updated to Scale MP-2019.

From fiscal year June 30, 2020, to June 30, 2021:

The discount rate was updated from 4.71% to 3.83%
From fiscal year June 30, 2021, to June 30, 2022:

The discount rate was updated from 3.83% to 4.30% and mortality improvement scale was updated to Scale MP-2021.

From fiscal year June 30, 2022, to June 30, 2023:

The discount rate was updated from 4.30% to 4.27%.

From fiscal year June 30, 2023, to June 30, 2024:

The discount rate was updated from 4.27% to 4.32%.

From fiscal year June 30, 2024, to June 30, 2025:

The discount rate was updated from 4.32% to 4.55%.

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET POSITION LIABILITY AND RELATED RATIOS

PARS PENSION PLAN (CONTINUED)

LAST TEN FISCAL YEARS

(91)

Service Cost 1,569 $ 1,577 $ 1,485 $ 1,000 $ 1,000 $ Interest on Total Pension Liability 569,756 568,236 578,723 636,000 605,000 Differences Between Expected and Actual Experience 134,522 - 89,030 - 156,000 Changes in Assumptions 439,122 (188,575) (161,368) 1,837,000 350,000 Changes in benefits - - - - - Benefit Payments, Including Refunds of Employee
Contributions (694,049) (678,957) (665,644) (652,000) (640,000) Net Change in Total Pension Liability 450,920 (297,719) (157,774) 1,822,000 472,000 Total Pension Liability - Beginning of Yea
r 11,473,507 11,771,226 11,929,000 10,107,000 9,635,000 Total Pension Liability - End of Year (a) 11,924,427 $ 11,473,507 $ 11,771,226 $ 11,929,000 $ 10,107,000 $ Plan Fiduciary Net Position:

Contributions - Employer - $ - $ - $ - $ - $ Contributions - Employee - - - - - Net Investment Income (Loss) 536,880 551,796 881,421 (108) 230,000 Administrative Expense (17,313) (18,115) (18,063) (23,332) (20,000) Benefit Payments (694,049) (678,957) (665,644) (665,644) (640,000) Net Change in Plan Fiduciary Net Position (174,482) (145,276) 197,714 (689,084) (430,000) Plan Fiduciary Net Position - Beginning of Year 9,079,354 9,224,630 9,026,916 9,716,000 10,146,000 Plan Fiduciary Net Position - End of Year (b) 8,904,872 $ 9,079,354 $ 9,224,630 $ 9,026,916 $ 9,716,000 $ Net Pension Liability (Asset) - Ending (a)-(b) 3,019,555 $ 2,394,153 $ 2,546,596 $ 2,902,084 $ 391,000 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 74.68% 79.13% 78.37% 75.67% 96.13% Covered Payroll None None None None None
Net Pension Liability as Percentage of Covered Payroll N/A N/A N/A N/A N/A Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015, to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 6.50% used for the June 30, 2015, measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016, to June 30, 2017:

The discount rate was u
pdated from 6.50% to 4.99% and the expected long-term rate of return on investments was updated from 6.50% to 6.25%.

From fiscal year June 30, 2017, to June 30, 2018:

The discount rate was updated from 4.97% to 4.99% and the expected long-term rate of return on investments was updated from 6.25% to 6.00%.

From fiscal year June 30, 2018, to June 30, 2019:

The discount rate was updated from 4.99% to 5.12%.

From fiscal year June 30, 2019, to June 30, 2020:

The discount rate was updated from 5.12% to 4.71% and mortality improvement scale was updated to Scale MP-2019.

From fiscal year June 30, 2020, to June 30, 2021:

The discount rate was updated from 4.71% to 3.83%
From fiscal year June 30, 2021, to June 30, 2022:

The discount rate was updated from 3.83% to 4.30% and mortality improvement scale was updated to Scale MP-2021.

From fiscal year June 30, 2022, to June 30, 2023:

The discount rate was updated from 4.30% to 4.27%.

From fiscal year June 30, 2023, to June 30, 2024:

The discount rate was updated from 4.27% to 4.32%.

From fiscal year June 30, 2024, to June 30, 2025:

The discount rate was updated from 4.32% to 4.55%.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS

PARS PENSION PLAN

LAST TEN FISCAL YEARS

(92)

Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Actuarially Determined Contribution 417,991 $ 218,175 $ 234,572 $ 217,689 $ 233,631 $ Contributions in Relation to the Actuarially
Determined Contributions - - - - - Contribution Deficiency (Excess) 417,991 $ 218,175 $ 234,572 $ 217,689 $ 233,631 $ Covered Payroll None None None None None
Contributions as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A
Notes to Schedule:

Valuation Date 6/30/2023 6/30/2023 6/30/ 2021 6/30/2021 6/30/2019 Methods and Assumptions Used to
Determine Contribution Rates:

Single and Agent Employers Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal
Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar Level Dollar Remaining Amortization Period 10 Years Open 10 Years Open 10 Years Open 10 Years Open 10 Years Open Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Inflation 2.50% 2.50% 2.50% 2.50% 2.75%
Salary Scale:

Aggregate 2.00% 2.00% 3.00% 3.00% 3.00%
Merit (CalPERS Experience Study) 2021 2021 2000-2019 2000-2019 1997-2015 Investment Rate of Return:
06/30/23 Valuation 4.55%, including infl ation and net of investment expenses (June 30, 2024 Measurement Date) 06/30/23 Valuation 4.32%, including infl ation and net of investment expenses (June 30, 2023 Measurement Date) 06/30/21 Valuation 5.5%, net of investment expenses only 06/30/19 Valuation 6.0%, net of investment expenses only 06/30/17 Valuation 6.5%, net of investment expenses only 06/30/15 Valuation 6.5%, net of investment expenses only 06/30/13 Valuation 6.25%, net of invest ment and administrative expenses Mortality Assumptions for Service
Retirements and Beneficiaries:
06/30/21 and 6/30/23 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2021. 06/30/19 Valuation Mortality Table pr ojected fully generational with Society of Actuaries Scale MP-2019. 06/30/17 Valuation Mortality Table pr ojected fully generational with Society of Actuaries Scale MP-2017. 06/30/15 Valuation Mortality Table pr ojected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience St udy, Mortality projected fully generational with Scale AA.

Mortality Assumptions for Disability
Retirements:
06/30/24 Measurement Date CalPERS 2 021 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.
06/30/22 Measurement Date CalPERS 2000- 2019 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.
06/30/21 Valuation CalPERS 2000-2019 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2019.
06/30/17 and 6/30/19 Valuation CalPERS 1997-2015 Experience Study, Mort ality Table projected fully generational with Society of Actuaries Scale MP-2017.
06/30/15 Valuation CalPERS 1997-2011 Experience St udy Mortality Table for nonwork Disabled Retirees projected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience St udy, Mortality projected fully generational with Scale AA.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS

PARS PENSION PLAN (CONTINUED)

LAST TEN FISCAL YEARS

(93)

Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Actuarially Determined Contribution 311,000 $ 337,000 $ 89,000 $ 93,000 $ 52,000 $ Contributions in Relation to the Actuarially
Determined Contributions - - - - - Contribution Deficiency (Excess) 311,000 $ 337,000 $ 89,000 $ 93,000 $ 52,000 $ Covered Payroll None None None None None
Contributions as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A
Notes to Schedule:

Valuation Date 6/30/2017 6/30/2017 6/30/2015 6/30/2015 6/30/2013 Methods and Assumptions Used to
Determine Contribution Rates:

Single and Agent Employers Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal
Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar Level Dollar Remaining Amortization Period 10 Years Open 10 Years Open 10 Years Open 10 Years Open 10 Years Closed Asset Valuation Method M a r k e t V a l u eM a r k e t V a l u eM a r k e t V a l u eM a r k e t V a l u eM a r k e t V a l u e Inflation 2.75% 2.75% 3.00% 3.00% 3.00%
Salary Scale:

Aggregate 3.00% 3.00% 3.25% 3.25% 3.25%
Merit (CalPERS Experience Study) 1997-2015 1997-2015 1997-2011 1997-2011 1997-2007 Investment Rate of Return:
06/30/23 Valuation 4.55%, including inflation and net of investment expenses (June 30, 2024 Measurement Date) 06/30/23 Valuation 4.32%, including inflation and net of investment expenses (June 30, 2023 Measurement Date) 06/30/21 Valuation 5.5%, net of investment expenses only 06/30/19 Valuation 6.0%, net of investment expenses only 06/30/17 Valuation 6.5%, net of investment expenses only 06/30/15 Valuation 6.5%, net of investment expenses only 06/30/13 Valuation 6.25%, net of investment and administrative expenses Mortality Assumptions for Service
Retirements and Beneficiaries:
06/30/21 and 6/30/23 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2021. 06/30/19 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2019. 06/30/17 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2017. 06/30/15 Valuation Mortality Table projected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generational with Scale AA.

Mortality Assumptions for Disability
Retirements:
06/30/24 Measurement Date CalPERS 2021 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.
06/30/22 Measurement Date CalPERS 2000-2019 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.
06/30/21 Valuation CalPERS 2000-2019 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2019.
06/30/17 and 6/30/19 Valuation CalPERS 1997-2015 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2017.
06/30/15 Valuation CalPERS 1997-2011 Experience Study Mortality Table for nonwork Disabled Retirees projected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generational with Scale AA.

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS

LAST TEN FISCAL YEARS

(94)

Fiscal Year End 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service Cost 392,454 $ 427,974 $ 416,520 $ 556,718 $ 544,912 $ 514,497 $ 549,862 $ 533,847 $ Interest on Total OPEB Liability 1,192,212 1,311,591 1,262,548 1,747,735 1,711,964 1,640,380 1,574,306 1,500,990 Change in Assumption 522,443 560,296 (643,491) (358,865) (498,407) (1,320,939) - - Difference Between Expected and Actual
Experience (437,505) (2,174,130) - (5,656,872) - 1,492,298 - - Benefit Payments, Including Refunds of
Employee Contributions (1,226,860) (1,220,306) (1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Total OPEB Liability 442,744 (1,094,575) (145,513) (4,843,913) 495,226 1,166,861 1,220,288 1,183,104 Total OPEB Liability - Beginning of Year 21,889,353 22,983,928 23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 23,907,875 Total OPEB Liability - End of Year (a) 22,332,097 21,889,353 22,983,928 23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 Plan Fiduciary Net Position:

Contributions - Employer 2,307,440 3,038,434 3,027,605 1,132,629 2,451,000 2,973,720 2,521,850 2,757,002 Net Investment Income 1,332,356 569,865 (2,062,879) 2,423,434 652,096 717,403 470,766 400,018 Administrative Expenses (3,120) (4,573) (4,093) (4,425) (6,167) (2,205) (11,481) (3,027) Benefit Payments (1,226,860) (1,220,306) (1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Plan Fiduciary Net Position 2,409,816 2,383,420 (220,457) 2,419,009 1,833,686 2,529,543 2,077,255 2,302,260 Plan Fiduciary Net Position - Beginning of Year 16,583,615 14,200,195 14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 3,258,899 Plan Fiduciary Net Position - End of Year (b) 18,993,431 16,583,615 14,200,195 14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 Net OPEB Liability - Ending (a)-(b) 3,338,666 $ 5,305,738 $ 8,783,733 $ 8,708,789 $ 15,971,711 $ 17,310,171 $ 18,672,853 $ 19,529,820 $ Plan Fiduciary Net Position as a Percentage
of the Net OPEB Liability 85.05% 75.76% 61.78% 62.35% 42.90% 37.00% 29.03% 22.16% Covered - Employee Payroll 29,550,948 $ 26,906,110 $ 24,544,346 $ 21,125,169 $ 20,370,100 $ 21,066,497 $ 19,015,391 $ 20,878,494 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 11.30% 19.72% 35.79% 41.22% 78.41% 82.17% 98.20% 93.54% Notes to Schedule:

Benefit Chan
ges:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2017, to June 30, 2018:

There were no changes in assumptions.

From fiscal year June 30, 2018, to June 30, 2019:

Mortality improvement scale was updated to Scale MP-2019 Assumed plan elections at retirement were updated
Spousal coverage assumption was updated from 50% to 30% From fiscal year June 30, 2021, to June 30, 2022:

Inflation changed from 2.75% to 2.5%
Medicare advantage plan removed
Mortality improvement scale was updated to Scale MP-2021 From fiscal year June 30, 2022, to June 30, 2023:

Discount rate changed from 5.50% to 5.75%
Inflation changed from 2.75% to 2.5%
Medicare broken out for Non-Kaiser and Kaiser
From fiscal year June 30, 2023, to June 30, 2024:

Discount rate changed from 5.75% to 5.50%
From fiscal year June 30, 2024, to June 30, 2025:

Discount rate changed from 5.50% to 5.58%
* Fiscal year 2018 was the first year of implementation, and therefore, only eight years are shown.

CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS – OPEB
LAST TEN FISCAL YEARS*

(95)

Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Contractually Required Contribution
(Actuarially Determined) 730,813$ 1,080,580 $ 1,099,938 $ 1,846,515 $ 1,985,527 $ 1,973,000 $ 2,009,000 $ 2,099,000 $ Contributions in Relation to the Actuarially
Determined Contributions (2,477,366) (2,307,440) (3,038,434) (3,027,604) (1,132,629) (2,451,000) (2,973,720) (2,521,850) Contribution Deficiency (Excess) (1,746,553) $ (1,226,860) $ (1,938,496) $ (1,181,089) $ 852,898 $ (478,000) $ (964,720) $ (422,850) $ Covered - Employee Payroll 31,974,218 $ 29,550,948 $ 26,906,110 $ 24,544,346 $ 21,125,169 $ 20,370,100 $ 21,066,497 $ 19,015,391 $ Contributions as a Percentage of
Covered - Employee Payroll 7.80% 7.80% 11.30% 12.30% 5.36% 12.03% 14.12% 13.26% Notes to Schedule:

Valuation Date 6/30/2023 6/30/2023 6/30/2021 6/30/2019 6/30/2019 6/30/2017 6/30/2017 6/30/2015 Methods and Assumptions Used to
Determine Contribution Rates:

Single and Agent Employers Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry age Entry age Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar Level Dollar Level Dolla r Level dollar Level dollar Amortization Period 20 Year Fixed 20 Year Fixed 22 Year Fixed 23 Year Fixed 24 Year Fixed 25 Year Fixed 26 Year Fixed 27 Year Fixed Period Period Period Period Period Period Period Period Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 3.00% Mortality CalPERS CalPERS CalPERS CalPERS CalPERS CalPERS CalPERS CalPERS 2021 2021 2000-2019 1997-2015 1997-2015 1997-2015 1997-2015 1997-2011 Experience Ex perience Ex perience Ex perience Ex perience Ex perience Ex perience Ex perience Mortality Improvements Mortalit y Mortality Mortality Mortality Mortality Mortality Mortality Mortality Projected Fully Projected Fully Projected Fully Projected Fully Projected Fully Projected Fully Projected Fully Projected Fully Generational Generational Generational Generational Generational Generational Generational Generational With Scale With Scale With Scale With Scale W ith Scale With Scale With Scale With Scale MP-2021 MP-2021 MP-2021 MP-2019 MP-2019 MP-2017 MP-2017 MP-2014 Health Care Trend Rates:
06/30/15 Valuation Non-Medicare 7.50% decreasing to 5.00% in 2021, Medicare 7.80% decreasing to

5.00% in 2021.
06/30/17 Valuation Non-Medicare 7.50% decreasing to 4.00% in 2076, Medicare 6.50% decreasing to

4.00% in 2076.
06/30/19 Valuation Non-Medicare 7.25% decreasing to 4.00% in 2076, Medicare 6.30% decreasing to

4.00% in 2076.
06/30/21 Valuation Non-Medicare 6.50% decreasing to 3.75% in 2076, Medicare(Non-Kaiser) 5.65% decreasing to

3.75% in 2076, Medicare(Kaiser) 4.60% decreasing to 3.75% in 2076. 06/30/23 Valuation Initial rate of 8.00%, decreasing 0.50% an nually to an ultimate rate of 4.50% for Pre-65 and 6.50% decreasing by 0.25% annually to an ultimate rate of 4.50% for Post-65. * Fiscal year 2018 was the first year of implementation, and therefore, only eight years are shown.

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(97)

SUPPLEMENTARY INFORMATION

(98)

THIS PAGE IS INTENTIONALLY LEFT BLANK

(99)

COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025

(100)

Landscape Housing and
Community Maintenance Community
Gas Tax Services District Development
ASSETS
Pooled Cash and Investments 8,116,218 $ 121,288 $ 187,917 $ 1,471,875 $ Receivables:

Accounts 554 10,439 - - Taxes 1,670,314 - 11,585 - Due from Other Governments - 2,500 - 196,864 Notes and Loans, Net - - - - Restricted Assets:

Cash and Investments With Fiscal Agents - - - - Total Assets 9,787,086 $ 134,227 $ 199,502 $ 1,668,739 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 357,649 $ 24,381 $ 295,748 $ 158,671 $ Accrued Liabilities 287,049 - 8,186 3,864 Unearned Revenues - - - - Due to Other Funds - - - - Total Liabilities 644,698 24,381 303,934 162,535

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 554 - - 13,907 Total Deferred Inflows of Resources 554 - - 13,907

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects - 109,846 - 1,492,297 Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services 9,141,834 - - - Housing and Neighborhood Revitalization - - - - Unassigned - - (104,432) - Total Fund Balances (Deficits) 9,141,834 109,846 (104,432) 1,492,297 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 9,787,086 $ 134,227 $ 199,502 $ 1,668,739 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(101)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
HOME Bikeway
Program Proposition A Improvement Proposition C
1,112,990$ 9,474,615 $ - $ 14,301,825$ 2,065 - - - - - - - - - - - 36,230 - - - - - - - 1,151,285$ 9,474,615 $ - $ 14,301,825$ -$ 140,958$ - $ 1,587,596$ - 15,125 - 92,234 - - - - - - 30,794 - - 156,083 30,794 1,679,830 - - - - - - - - - - - - - - - - - - - - - 9,318,532 - 12,621,995 1,151,285 - - - - - (30,794) - 1,151,285 9,318,532 (30,794) 12,621,995 1,151,285$ 9,474,615 $ - $ 14,301,825$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(102)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Developer
Federal State Parks Fees -
Grants Grants Development Signals
79,293$ - $ 629,053$ 3,608,942 $ - - - 87,659 - - - - 1,089,433 2,713,045 - - - - - - - - - - 1,168,726$ 2,713,045 $ 629,053 $ 3,696,601 $ 55,529$ 52,529 $ 57,881 $ - $ 3,636 16,062 - - - 1,643,576 - 107,766 449,697 865,107 - - 508,862 2,577,274 57,881 107,766 1,089,433 2,679,830 - - 1,089,433 2,679,830 - - - - - - - - - - - - 571,172 - - - - 3,588,835 - - - - (429,569) (2,544,059) - - (429,569) (2,544,059) 571,172 3,588,835 1,168,726$ 2,713,045 $ 629,053 $ 3,696,601 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(103)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Developer Biological Traffic
Fees - Recycled Impact Impact
Drainage Water Fees Fees
11,451,649$ 34,665 $ 69,099 $ 3,188,662$ 209,210 13,982 - 188,172 - - - - - - - - - - - - - - - - 11,660,859$ 48,647 $ 69,099 $ 3,376,834$ 557,445$ 27,945 $ - $ 8 $ 48,242 4,871 - 240 257,198 - - 231,334 - 14,472 - - 862,885 47,288 - 231,582 - 416 - - - 416 - - - - - - - - - - - - - - 10,797,974 943 69,099 3,145,252 - - - - - - - - 10,797,974 943 69,099 3,145,252 11,660,859$ 48,647 $ 69,099 $ 3,376,834$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(104)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

- - - - - - - - - 1,096,276 379,373 122,167 18,000$ 1,250,494$ 379,373 $ 122,167 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(105)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Urban
LA County Structure
Reimbursement Measure H MTA Grant Program
-$ - $ - $ 1,491,977$ - - 125,980 21,700 - - - - - 1,816,574 1,188,296 - - - - - - - - - -$ 1,816,574$ 1,314,276 $ 1,513,677 $ -$ 368,325$ - $ 116,843$ - 6,632 - - - 100,946 - 26,678 - 1,367,563 1,313,744 - - 1,843,466 1,313,744 143,521 - 1,816,574 1,314,275 - - 1,816,574 1,314,275 - - - - - - - - - - - - 1,370,156 - - -
-
- - -
- (1,843,466) (1,313,743) - - (1,843,466) (1,313,743) 1,370,156 -$ 1,816,574$ 1,314,276 $ 1,513,677 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(106)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Sewer
Mariposa Maintenance Pr oposition Proposition
Lily District 1B 42
65,291$ 815,644 $ 6,396 $ 48,442 $ - 17,579 - - - 62,032 - - - - - - - - - - - - - - 65,291$ 895,255 $ 6,396 $ 48,442 $ -$ 98,278$ - $ - $ - 116,157 - - - - - - - - - - - 214,435 - - - 9,599 - - - 9,599 - - - - - - - - - - - - - - 65,291 671,221 6,396 48,442 - - - - - - - - 65,291 671,221 6,396 48,442 65,291$ 895,255 $ 6,396 $ 48,442 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025

(107)

ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Taxes
Due from Other Governments
Notes and Loans, Net
Restricted Assets:

Cash and Investments With Fiscal Agents
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred Inflows of Resources

FUND BALANCES (DEFICITS)
Restricted:

Community Development Projects
Public Safety
Parks, Recreation, and Arts
Development Services
Housing and Neighborhood Revitalization
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Total
Lancaster Other
Lighting Governmental
Measure M District AVAQMD Funds
3,020,724$ 6,650,330 $ - $ 67,657,903$ 238,804 61,649 338,609 1,334,402 - 113,306 - 1,885,266 62,024 - - 7,081,733 - - - 36,230 - 354 - 354 3,321,552$ 6,825,639 $ 338,609 $ 77,995,888 $ 162,082$ 518,494 $ - $ 4,697,530$ 11,940 41,484 52,193 749,465 11,940 - - 2,379,438 - - 259,713 4,314,590 185,962 559,978 311,906 12,141,023 300,828 53,529 - 7,278,945 300,828 53,529 - 7,278,945 - - - 1,602,143 - - - 379,373 - - - 1,941,328 2,834,762 6,212,132 26,703 59,767,854 - - - 1,151,285 - - - (6,266,063) 2,834,762 6,212,132 26,703 58,575,920 3,321,552$ 6,825,639 $ 338,609 $ 77,995,888 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025

(108)

Landscape Housing and
Community Maintenance Community
Gas Tax Services District Development

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - - Intergovernmental 9,584,650 - - 2,159,365 Charges for Services - - 2,094,540 - Investment Earnings (164,519) - 7,366 - Fines and Forfeitures - - - - Contributions - - 8,984 - Miscellaneous 4,639 95,438 - 77,560 Total Revenues 9,424,770 95,438 2,110,890 2,236,925

EXPENDITURES
Current:

General Government 12,836 29,276 - 884,295 Public Safety - - - - Community Development 153,655 - 1,813,393 - Parks, Recreation, and Arts 400,032 41,750 - - Development Services 8,970,067 2,347 1,297,999 - Housing and Neighborhood Revitalization - - - 29,457 Capital Outlay 2,063,537 - 7,498 784,669 Debt Service:

Principal Retirement - - - 106,000 Interest and Fiscal Charges - - - 1,511 Total Expenditures 11,600,127 73,373 3,118,890 1,805,932

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,175,357) 22,065 (1,008,000) 430,993

OTHER FINANCING SOURCES (USES)
Transfers In 10,102,850 - 330,609 - Transfers Out (2,746,370) - (122,311) - Total Other Financing Sources (Uses) 7,356,480 - 208,298 - NET CHANGE IN FUND BALANCES 5,181,123 22,065 (799,702) 430,993 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 3,960,711 87,781 695,270 1,061,304 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year 3,960,711 87,781 695,270 1,061,304 FUND BALANCES (DEFICITS) - END OF YEAR 9,141,834$ 109,846 $ (104,432) $ 1,492,297 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(109)

HOME Bikeway
Program Proposition A Improvement Proposition C

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - - Intergovernmental 1,129,444 4,549,164 - 3,773,416 Charges for Services - - - - Investment Earnings - 190,372 - 300,648 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,129,444 4,739,536 - 4,074,064

EXPENDITURES
Current:

General Government 1,603,217 2,095,301 - - Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts - 186,477 - - Development Services - 131,677 12,669 178,890 Housing and Neighborhood Revitalization - - - - Capital Outlay - 295,235 - 2,117,509 Debt Service:

Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,603,217 2,708,690 12,669 2,296,399

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (473,773) 2,030,846 (12,669) 1,777,665

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (154,587) - - Total Other Financing Sources (Uses) - (154,587) - - NET CHANGE IN FUND BALANCES (473,773) 1,876,259 (12,669) 1,777,665 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 1,625,058 7,442,273 (18,125) 10,844,330 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year 1,625,058 7,442,273 (18,125) 10,844,330 FUND BALANCES (DEFICITS) - END OF YEAR 1,151,285$ 9,318,532 $ (30,794) $ 12,621,995$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(110)

Developer
Federal State Parks Fees -
Grants Grants Development Signals

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - 279,505 483,692 Intergovernmental 1,891 2,582,687 - - Charges for Services - - - - Investment Earnings - - 24,656 141,452 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,891 2,582,687 304,161 625,144

EXPENDITURES
Current:

General Government 1,891 23,443 - - Public Safety - 185,212 - - Community Development - 415,962 - - Parks, Recreation, and Arts - 121,090 27,881 - Development Services 100,428 317,160 - 20,107 Housing and Neighborhood Revitalization - - - - Capital Outlay 456,080 1,266,392 171,465 1,039 Debt Service:

Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 558,399 2,329,259 199,346 21,146

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (556,508) 253,428 104,815 603,998

OTHER FINANCING SOURCES (USES)
Transfers In - 25 - - Transfers Out - - - - Total Other Financing Sources (Uses) - 25 - - NET CHANGE IN FUND BALANCES (556,508) 253,453 104,815 603,998 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 126,939 (2,797,512) 466,357 2,984,837 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year 126,939 (2,797,512) 466,357 2,984,837 FUND BALANCES (DEFICITS) - END OF YEAR (429,569)$ (2,544,059) $ 571,172 $ 3,588,835 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(111)

Developer Biological Traffic
Fees - Recycled Impact Impact
Drainage Water Fees Fees

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits 793,200 - 65,629 703,007 Intergovernmental - - - - Charges for Services - 146,683 - - Investment Earnings 448,845 1,359 2,709 124,979 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,242,045 148,042 68,338 827,986

EXPENDITURES
Current:

General Government - - - - Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services 111,018 367,540 1,509 46,563 Housing and Neighborhood Revitalization - - - Capital Outlay 1,320,525 21,349 1,045,500 1,864 Debt Service:

Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,431,543 388,889 1,047,009 48,427

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (189,498) (240,847) (978,671) 779,559

OTHER FINANCING SOURCES (USES)
Transfers In - 437,618 - - Transfers Out - (71,685) - - Total Other Financing Sources (Uses) - 365,933 - - NET CHANGE IN FUND BALANCES (189,498) 125,086 (978,671) 779,559 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 10,987,472 (124,143) 1,047,770 2,365,693 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year 10,987,472 (124,143) 1,047,770 2,365,693 FUND BALANCES (DEFICITS) - END OF YEAR 10,797,974$ 943 $ 69,099$ 3,145,252$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(112)

Lancaster Zero-Net
Drainage Energy Solar
Maintenance Traffic Mitigation
AQMD District Safety In Lieu

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - - Intergovernmental 36,750 - - - Charges for Services - 2,427,533 - - Investment Earnings - 47,914 - 588 Fines and Forfeitures - - 86,454 - Contributions - - - - Miscellaneous - - 7,991 4,200 Total Revenues 36,750 2,475,447 94,445 4,788

EXPENDITURES
Current:

General Government - - - - Public Safety - - - - Community Development 18,000 33,487 - - Parks, Recreation, and Arts - - - - Development Services - 1,592,752 - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 41,325 - - Debt Service:

Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 18,000 1,667,564 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 18,750 807,883 94,445 4,788

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (613,420) - - Total Other Financing Sources (Uses) - (613,420) - - NET CHANGE IN FUND BALANCES 18,750 194,463 94,445 4,788 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented (18,750) 901,813 284,928 117,379 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year (18,750) 901,813 284,928 117,379 FUND BALANCES (DEFICITS) - END OF YEAR -$ 1,096,276$ 379,373 $ 122,167 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(113)

Urban
LA County Structure
Reimbursement Measure H MTA Grant Program

REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - 589,028 Intergovernmental 364,009 - 5,710 - Charges for Services - - - - Investment Earnings - - - 58,478 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 364,009 - 5,710 647,506

EXPENDITURES
Current:

General Government - - - - Public Safety - 1,136,139 - - Community Development - - - - Parks, Recreation, and Arts - 441,983 - 7,551 Development Services - - 15,912 - Housing and Neighborhood Revitalization - - - - Capital Outlay - - 13,577 849,754 Debt Service:

Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures - 1,578,122 29,489 857,305

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 364,009 (1,578,122) (23,779) (209,799)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (49) - (84,895) Total Other Financing Sources (Uses) - (49) - (84,895) NET CHANGE IN FUND BALANCES 364,009 (1,578,171) (23,779) (294,694) Fund Balances (Deficits) - Beginning of Year,
as Previously Presented (364,009) (265,295) (1,289,964) 1,664,850 Change within the Financial Reporting Entity - - - - Fund Balances (Deficits) - Beginning of Year (364,009) (265,295) (1,289,964) 1,664,850 FUND BALANCES (DEFICITS) - END OF YEAR -$ (1,843,466)$ (1,313,743) $ 1,370,156 $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(114)

Sewer
Mariposa Maintenance Pr oposition Proposition
Lily District 1B 42 Measure R

REVENUES
Taxes - $ 4,508,037$ - $ - $ - $ Licenses and Permits - 206,014 - - - Intergovernmental - - - - - Charges for Services - - - - - Investment Earnings 2,558 31,969 100 1,899 - Fines and Forfeitures - - - - - Contributions - - - - - Miscellaneous - 206 - - - Total Revenues 2,558 4,746,226 100 1,899 -

EXPENDITURES
Current:

General Government - 95,636 - - - Public Safety - - - - - Community Development - - - - - Parks, Recreation, and Arts - - - - - Development Services - 3,383,678 - - - Housing and Neighborhood Revitalization - - - - - Capital Outlay - 36,650 - - - Debt Service:

Principal Retirement - - - - - Interest and Fiscal Charges - - - - - Total Expenditures - 3,515,964 - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,558 1,230,262 100 1,899 -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out - (1,312,611) - - - Total Other Financing Sources (Uses) - (1,312,611) - - - NET CHANGE IN FUND BALANCES 2,558 (82,349) 100 1,899 - Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 62,733 753,570 6,296 46,543 (6,526,653) Change within the Financial Reporting Entity - - - - 6,526,653 Fund Balances (Deficits) - Beginning of Year 62,733 753,570 6,296 46,543 - FUND BALANCES (DEFICITS) - END OF YEAR 65,291$ 671,221 $ 6,396 $ 48,442 $ - $ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2025

(115)

Total
Lancaster Other
Lighting Governmental
Measure M District AVAQMD Funds

REVENUES
Taxes - $ - $ - $ 4,508,037$ Licenses and Permits - - - 3,120,075 Intergovernmental 3,193,832 - - 27,380,918 Charges for Services - 6,782,759 - 11,451,515 Investment Earnings 43,311 260,801 - 1,525,485 Fines and Forfeitures - - - 86,454 Contributions - - - 8,984 Miscellaneous - 47,197 1,526,961 1,764,192 Total Revenues 3,237,143 7,090,757 1,526,961 49,845,660

EXPENDITURES
Current:

General Government - - 1,188,725 5,934,620 Public Safety - - - 1,321,351 Community Development - 121,371 - 2,555,868 Parks, Recreation, and Arts - - - 1,226,764 Development Services 305,762 5,619,873 - 22,475,951 Housing and Neighborhood Revitalization - - - 29,457 Capital Outlay 576,640 - - 11,070,608 Debt Service:

Principal Retirement - 640,000 - 746,000 Interest and Fiscal Charges - 333,156 - 334,667 Total Expenditures 882,402 6,714,400 1,188,725 45,695,286

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,354,741 376,357 338,236 4,150,374

OTHER FINANCING SOURCES (USES)
Transfers In - - - 10,871,102 Transfers Out (1,612,885) (825,504) - (7,544,317) Total Other Financing Sources (Uses) (1,612,885) (825,504) - 3,326,785 NET CHANGE IN FUND BALANCES 741,856 (449,147) 338,236 7,477,159 Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 2,092,906 6,661,279 (311,533) 44,572,108 Change within the Financial Reporting Entity - - - 6,526,653 Fund Balances (Deficits) - Beginning of Year 2,092,906 6,661,279 (311,533) 51,098,761 FUND BALANCES (DEFICITS) - END OF YEAR 2,834,762$ 6,212,132 $ 26,703 $ 58,575,920$ Special Revenue Funds

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(116)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 3,960,711$ 3,960,711 $ 3,960,711 $ - $

RESOURCES (INFLOWS)
Intergovernmental 9,309,112 9,309,112 9,584,650 275,538 Investment Earnings - - (164,519) (164,519) Miscellaneous - - 4,639 4,639 Transfers In 9,203,564 9,203,564 10,102,850 899,286 Amounts Available for Appropriations 22,473,387 22,473,387 23,488,331 1,014,944

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government - - 12,836 (12,836) Community Development 152,876 152,914 153,655 (741) Parks, Recreation, and Arts 175,000 637,458 400,032 237,426 Development Services 10,547,120 10,128,734 8,970,067 1,158,667 Capital Outlay 6,420,147 11,015,767 2,063,537 8,952,230 Transfers Out 2,890,453 2,890,453 2,746,370 144,083 Total Charges to Appropriations 20,185,596 24,825,326 14,346,497 10,478,829 BUDGETARY FUND BALANCE - END OF YEAR 2,287,791$ (2,351,939) $ 9,141,834 $ 11,493,773 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

LANDSCAPE MAINTENANCE DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(117)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 695,270$ 695,270 $ 695,270 $ - $

RESOURCES (INFLOWS)
Charges for Services 2,047,423 2,047,423 2,094,540 47,117 Investment Earnings - - 7,366 7,366 Contributions - - 8,984 8,984 Transfers In 60,000 60,000 330,609 270,609 Amounts Available for Appropriations 2,802,693 2,802,693 3,136,769 334,076

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 1,786,992 1,881,780 1,813,393 68,387 Development Services 917,264 1,033,534 1,297,999 (264,465) Capital Outlay - - 7,498 (7,498) Transfers Out 128,121 128,121 122,311 5,810 Total Charges to Appropriations 2,832,377 3,043,435 3,241,201 (197,766) BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (29,684)$ (240,742) $ (104,432) $ 136,310 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(118)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,061,304$ 1,061,304 $ 1,061,304 $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,463,022 1,463,022 2,159,365 696,343 Miscellaneous - - 77,560 77,560 Transfers In - - - - Amounts Available for Appropriations 2,524,326 2,524,326 3,298,229 773,903

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 1,357,022 2,315,665 884,295 1,431,370 Housing and Neighborhood Revitalization - - 29,457 (29,457) Capital Outlay - 1,729,073 784,669 944,404 Debt Service:

Principal Retirement 104,489 106,000 106,000 - Interest and Fiscal Charges 1,511 1,511 1,511 - Transfers Out - 868,399 - 868,399 Total Charges to Appropriations 1,463,022 5,020,648 1,805,932 3,214,716 BUDGETARY FUND BALANCE - END OF YEAR 1,061,304$ (2,496,322) $ 1,492,297 $ 3,988,619 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

HOME PROGRAM SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(119)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,625,058$ 1,625,058 $ 1,625,058 $ - $

RESOURCES (INFLOWS)
Intergovernmental 724,611 1,469,621 1,129,444 (340,177) Amounts Available for Appropriations 2,349,669 3,094,679 2,754,502 (340,177)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 724,611 1,619,621 1,603,217 16,404 Total Charges to Appropriations 724,611 1,619,621 1,603,217 16,404 BUDGETARY FUND BALANCE - END OF YEAR 1,625,058$ 1,475,058 $ 1,151,285 $ (323,773) $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

PROPOSITION A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(120)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 7,442,273$ 7,442,273 $ 7,442,273 $ - $

RESOURCES (INFLOWS)
Intergovernmental 4,876,484 4,876,484 4,549,164 (327,320) Investment Earnings 14,040 14,040 190,372 176,332 Amounts Available for Appropriations 12,332,797 12,332,797 12,181,809 (150,988)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 1,610,090 2,090,090 2,095,301 (5,211) Parks, Recreation, and Arts 296,120 305,120 186,477 118,643 Development Services 94,126 94,126 131,677 (37,551) Capital Outlay - 9,423,815 295,235 9,128,580 Transfers Out 154,587 154,587 154,587 - Total Charges to Appropriations 2,154,923 12,067,738 2,863,277 9,204,461 BUDGETARY FUND BALANCE - END OF YEAR 10,177,874$ 265,059 $ 9,318,532 $ 9,053,473 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

BIKEWAY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(121)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (18,125)$ (18,125) $ (18,125) $ - $

RESOURCES (INFLOWS)
Intergovernmental 178,032 178,032 - (178,032) Amounts Available for Appropriations 159,907 159,907 (18,125) (178,032)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 12,669 (12,669) Capital Outlay - 223,686 - 223,686 Total Charges to Appropriations - 223,686 12,669 211,017 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 159,907$ (63,779) $ (30,794) $ 32,985 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

PROPOSITION C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(122)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 10,844,330$ 10,844,330 $ 10,844,330 $ - $

RESOURCES (INFLOWS)
Intergovernmental 4,044,915 4,044,915 3,773,416 (271,499) Investment Earnings 18,000 18,000 300,648 282,648 Amounts Available for Appropriations 14,907,245 14,907,245 14,918,394 11,149

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 178,890 (178,890) Capital Outlay - 22,355,777 2,117,509 20,238,268 Total Charges to Appropriations - 22,355,777 2,296,399 20,059,378 BUDGETARY FUND BALANCE - END OF YEAR 14,907,245$ (7,448,532) $ 12,621,995 $ 20,070,527 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

FEDERAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(123)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 126,939$ 126,939 $ 126,939 $ - $

RESOURCES (INFLOWS)
Intergovernmental 4,377,559 4,530,800 1,891 (4,528,909) Amounts Available for Appropriations 4,504,498 4,657,739 128,830 (4,528,909)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government - - 1,891 (1,891) Community Development 2,450,524 2,450,524 - 2,450,524 Development Services - - 100,428 (100,428) Capital Outlay - 4,844,337 456,080 4,388,257 Total Charges to Appropriations 2,450,524 7,398,102 558,399 6,839,703 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 2,053,974$ (2,740,363) $ (429,569) $ 2,310,794 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(124)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (2,797,512)$ (2,797,512) $ (2,797,512) $ - $

RESOURCES (INFLOWS)
Intergovernmental 5,781,889 14,810,655 2,582,687 (12,227,968) Transfers In - - 25 25 Amounts Available for Appropriations 2,984,377 12,013,143 (214,800) (12,227,943)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government - 23,082 23,443 (361) Public Safety 120,000 552,810 185,212 367,598 Community Development 2,439,023 4,756,705 415,962 4,340,743 Parks, Recreation, and Arts - 1,230,286 121,090 1,109,196 Development Services 51,030 595,431 317,160 278,271 Capital Outlay - 23,471,728 1,266,392 22,205,336 Transfers Out 195,473 195,473 - 195,473 Total Charges to Appropriations 2,805,526 30,825,515 2,329,259 28,496,256 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 178,851$ (18,812,372)$ (2,544,059) $ 16,268,313 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

PARKS DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(125)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 466,357$ 466,357 $ 466,357 $ - $

RESOURCES (INFLOWS)
Licenses and Permits - 200,000 279,505 79,505 Investment Earnings - - 24,656 24,656 Amounts Available for Appropriations 466,357 666,357 770,518 104,161

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts - 100,000 27,881 72,119 Capital Outlay - 217,214 171,465 45,749 Total Charges to Appropriations - 317,214 199,346 117,868 BUDGETARY FUND BALANCE - END OF YEAR 466,357$ 349,143 $ 571,172 $ 222,029 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
DEVELOPER FEES – SIGNALS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(126)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,984,837$ 2,984,837 $ 2,984,837 $ - $

RESOURCES (INFLOWS)
Licenses and Permits - - 483,692 483,692 Investment Earnings - - 141,452 141,452 Transfers In - - - - Amounts Available for Appropriations 2,984,837 2,984,837 3,609,981 625,144

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 20,107 (20,107) Capital Outlay - 2,801,895 1,039 2,800,856 Total Charges to Appropriations - 2,801,895 21,146 2,780,749 BUDGETARY FUND BALANCE - END OF YEAR 2,984,837$ 182,942 $ 3,588,835 $ 3,405,893 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
DEVELOPER FEES – DRAINAGE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(127)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 10,987,472$ 10,987,472 $ 10,987,472 $ - $

RESOURCES (INFLOWS)
Licenses and Permits 450,000 450,000 793,200 343,200 Use of Money and Property - - 448,845 448,845 Amounts Available for Appropriations 11,437,472 11,437,472 12,229,517 792,045

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 111,018 (111,018) Capital Outlay - 9,470,243 1,320,525 8,149,718 Total Charges to Appropriations - 9,470,243 1,431,543 8,038,700 BUDGETARY FUND BALANCE - END OF YEAR 11,437,472$ 1,967,229 $ 10,797,974 $ 8,830,745 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

RECYCLED WATER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(128)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (124,143)$ (124,143) $ (124,143) $ - $

RESOURCES (INFLOWS)
Charges for Services 125,000 175,000 146,683 (28,317) Use of Money and Property - - 1,359 1,359 Transfers In 180,000 180,000 437,618 257,618 Amounts Available for Appropriations 180,857 230,857 461,517 230,660

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services 174,100 299,084 367,540 (68,456) Capital Outlay - 24,050 21,349 2,701 Transfers Out 77,555 77,555 71,685 5,870 Total Charges to Appropriations 251,655 400,689 460,574 (59,885) BUDGETARY FUND BALANCE - END OF YEAR (70,798)$ (169,832) $ 943 $ 170,775$ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

BIOLOGICAL IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(129)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,047,770$ 1,047,770 $ 1,047,770 $ - $

RESOURCES (INFLOWS)
Licenses and Permits 300,000 300,000 65,629 (234,371) Use of Money and Property - - 2,709 2,709 Amounts Available for Appropriations 1,347,770 1,347,770 1,116,108 (231,662)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - 1,045,500 1,045,500 - Development Services - 11,459 1,509 9,950 Total Charges to Appropriations - 1,056,959 1,047,009 9,950 BUDGETARY FUND BALANCE - END OF YEAR 1,347,770$ 290,811 $ 69,099 $ (221,712) $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

TRAFFIC IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(130)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,365,693$ 2,365,693 $ 2,365,693 $ - $

RESOURCES (INFLOWS)
Licenses and Permits - - 703,007 703,007 Investment Earnings - - 124,979 124,979 Amounts Available for Appropriations 2,365,693 2,365,693 3,193,679 827,986

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 46,563 (46,563) Capital Outlay - 1,852,194 1,864 1,850,330 Total Charges to Appropriations - 1,852,194 48,427 1,803,767 BUDGETARY FUND BALANCE - END OF YEAR 2,365,693$ 513,499 $ 3,145,252 $ 2,631,753 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

AQMD SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(131)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (18,750)$ (18,750) $ (18,750) $ - $

RESOURCES (INFLOWS)
Intergovernmental 17,750 17,750 36,750 19,000 Amounts Available for Appropriations (1,000) (1,000) 18,000 19,000

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 17,750 17,750 18,000 (250) Transfers Out 5,279 5,279 - 5,279 Total Charges to Appropriations 23,029 23,029 18,000 5,029 BUDGETARY FUND BALANCE - END OF YEAR (24,029)$ (24,029) $ - $ 24,029$ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

LANCASTER DRAINAGE MAINTENANCE DISTRICT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025

(132)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 901,813$ 901,813 $ 901,813 $ - $

RESOURCES (INFLOWS)
Charges for Services 2,291,894 2,291,894 2,427,533 135,639 Investment Earnings - - 47,914 47,914 Transfers In 360,000 360,000 - (360,000) Amounts Available for Appropriations 3,553,707 3,553,707 3,377,260 (176,447)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 33,500 33,500 33,487 13 Development Services 1,867,560 1,689,384 1,592,752 96,632 Capital Outlay - 860,112 41,325 818,787 Transfers Out 587,979 587,979 613,420 (25,441) Total Charges to Appropriations 2,489,039 3,170,975 2,280,984 889,991 BUDGETARY FUND BALANCE - END OF YEAR 1,064,668$ 382,732 $ 1,096,276 $ 713,544 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

TRAFFIC SAFETY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(133)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 284,928$ 284,928 $ 284,928 $ - $

RESOURCES (INFLOWS)
Fines and Forfeitures 100,000 100,000 86,454 (13,546) Miscellaneous - - 7,991 7,991 Amounts Available for Appropriations 384,928 384,928 379,373 (5,555) BUDGETARY FUND BALANCE - END OF YEAR 384,928$ 384,928 $ 379,373 $ (5,555) $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

LA COUNTY REIMBURSEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(134)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR
AS RESTATED (364,009)$ (364,009) $ (364,009) $ - $

RESOURCES (INFLOWS)
Intergovernmental - 480,000 364,009 (115,991) Amounts Available for Appropriations (364,009) 115,991 - (115,991)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts - 260,929 - 260,929 Total Charges to Appropriations - 260,929 - 260,929 BUDGETARY FUND BALANCE - END OF YEAR (364,009)$ (144,938) $ - $ 144,938$ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE H SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(135)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (265,295)$ (265,295) $ (265,295) $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,499,314 3,292,447 - (3,292,447) Amounts Available for Appropriations 1,234,019 3,027,152 (265,295) (3,292,447)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Public Safety 1,499,314 1,629,303 1,136,139 493,164 Parks, Recreation, and Arts - 2,527,351 441,983 2,085,368 Transfers Out - - 49 (49) Total Charges to Appropriations 1,499,314 4,156,654 1,578,171 2,578,483 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (265,295)$ (1,129,502) $ (1,843,466) $ (713,964) $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

MTA GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(136)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (1,289,964)$ (1,289,964) $ (1,289,964) $ - $

RESOURCES (INFLOWS)
Intergovernmental 1,361,561 1,361,561 5,710 (1,355,851) Amounts Available for Appropriations 71,597 71,597 (1,284,254) (1,355,851)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 15,912 (15,912) Capital Outlay - 1,028,861 13,577 1,015,284 Total Charges to Appropriations - 1,028,861 29,489 999,372 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 71,597$ (957,264) $ (1,313,743) $ (356,479) $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

URBAN STRUCTURE PROGRAM SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(137)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,664,850$ 1,664,850 $ 1,664,850 $ - $

RESOURCES (INFLOWS)
Licenses and Permits - - 589,028 589,028 Use of Money and Property - - 58,478 58,478 Amounts Available for Appropriations 1,664,850 1,664,850 2,312,356 647,506

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts - 2,293 7,551 (5,258) Capital Outlay - 1,176,607 849,754 326,853 Transfers Out 42,494 42,494 84,895 (42,401) Total Charges to Appropriations 42,494 1,221,394 942,200 279,194 BUDGETARY FUND BALANCE - END OF YEAR 1,622,356$ 443,456 $ 1,370,156 $ 926,700 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

SEWER MAINTENANCE DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(138)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 753,570$ 753,570 $ 753,570 $ - $

RESOURCES (INFLOWS)
Taxes 4,400,000 4,400,000 4,508,037 108,037 Licenses and Permits 190,500 239,500 206,014 (33,486) Investment Earnings - - 31,969 31,969 Miscellaneous 16,000 24,805 206 (24,599) Amounts Available for Appropriations 5,360,070 5,417,875 5,499,796 81,921

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 95,329 86,041 95,636 (9,595) Development Services 3,710,908 3,557,734 3,383,678 174,056 Capital Outlay - 857,424 36,650 820,774 Transfers Out 1,287,170 1,287,170 1,312,611 (25,441) Total Charges to Appropriations 5,093,407 5,788,369 4,828,575 959,794 BUDGETARY FUND BALANCE - END OF YEAR 266,663$ (370,494) $ 671,221 $ 1,041,715 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION 1B SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(139)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 6,296$ 6,296 $ 6,296 $ - $

RESOURCES (INFLOWS)
Investment Earnings - - 100 100 Amounts Available for Appropriations 6,296 6,296 6,396 100 BUDGETARY FUND BALANCE - END OF YEAR 6,296$ 6,296 $ 6,396 $ 100 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION 42 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(140)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 46,543$ 46,543 $ 46,543 $ - $

RESOURCES (INFLOWS)
Investment Earnings - - 1,899 1,899 Amounts Available for Appropriations 46,543 46,543 48,442 1,899 BUDGETARY FUND BALANCE - END OF YEAR 46,543$ 46,543 $ 48,442 $ 1,899 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(141)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,092,906$ 2,092,906 $ 2,092,906 $ - $

RESOURCES (INFLOWS)
Intergovernmental 3,500,202 3,500,202 3,193,832 (306,370) Investment Earnings 10,000 10,000 43,311 33,311 Amounts Available for Appropriations 5,603,108 5,603,108 5,330,049 (273,059)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services 343,048 341,313 305,762 35,551 Capital Outlay - 1,209,243 576,640 632,603 Transfers Out 1,621,380 1,621,380 1,612,885 8,495 Total Charges to Appropriations 1,964,428 3,171,936 2,495,287 676,649 BUDGETARY FUND BALANCE - END OF YEAR 3,638,680$ 2,431,172 $ 2,834,762 $ 403,590 $ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

LANCASTER LIGHTING DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025

(142)

Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 6,661,279$ 6,661,279 $ 6,661,279 $ - $

RESOURCES (INFLOWS)
Charges for Services 6,369,730 6,369,730 6,782,759 413,029 Investment Earnings - - 260,801 260,801 Miscellaneous 78,000 78,000 47,197 (30,803) Amounts Available for Appropriations 13,109,009 13,109,009 13,752,036 643,027

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 121,399 121,399 121,371 28 Development Services 4,719,935 6,547,666 5,619,873 927,793 Principal Retirement 640,000 640,000 640,000 - Interest and Fiscal Charges 333,156 333,156 333,156 - Transfers Out 825,504 825,504 825,504 - Total Charges to Appropriations 6,639,994 8,467,725 7,539,904 927,821 BUDGETARY FUND BALANCE - END OF YEAR 6,469,015$ 4,641,284 $ 6,212,132 $ 1,570,848 $ Budgeted Amounts

CITY OF LANCASTER

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2025

(143)

Assessment First Public
District Deposits Hydrogen AD 92-101 CFD 89-1
ASSETS
Pooled Cash and Investments 154,596$ 325,406 $ 1,211,138 $ 202 $ 23,835 $ Receivable:

Accounts - 80,851 4,130 - - Taxes - 17,339 - - - Prepaid - - 19,181 - - Total Assets 154,596 423,596 1,234,449 202 23,835

LIABILITIES
Accounts Payable - 126,344 618,911 - - Deferred Revenues - 58,945 - - - Deposits Payable - 238,234 - - - Long-Term Liabilities:

Due in More Than One Year - - 2,645,918 - - Total Liabilities - 423,523 3,264,829 - -

NET POSITION
Restricted for Bondholders 154,596 73 (2,030,380) 202 23,835 Total Net Position 154,596 $ 73 $ (2,030,380)$ 202 $ 23,835 $

CITY OF LANCASTER

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS (CONTINUED)
JUNE 30, 2025

(144)

CFD 90-1 CFD 91-1 CFD 91-2 CFD 21-1 Total
ASSETS
Pooled Cash and Investments (207) $ 542 $ 42,561 $ 23,785 $ 1,781,858 $ Receivable:

Accounts - - - - 84,981 Taxes - - - - 17,339 Prepaid - - - - 19,181 Total Assets (207) 542 42,561 23,785 1,903,359

LIABILITIES
Accounts Payable - - - - 745,255 Deferred Revenues - - - - 58,945 Deposits Payable - - - - 238,234 Long-Term Liabilities:

Due in More Than One Year - - - - 2,645,918 Total Liabilities - - - - 3,688,352

NET POSITION
Restricted for Bondholders (207) 542 42,561 23,785 (1,784,993) Total Net Position (207) $ 542 $ 42,561 $ 23,785 $ (1,784,993)$

CITY OF LANCASTER

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2025

(145)

Assessment First Public
District Deposits Hydrogen AD 92-101 CFD 89-1

ADDITIONS
Special Assessments or Taxes
Collected from Property Owners - $ - $ - $ - $ - $ Miscellaneous - 23,626 - - - Total Additions - 23,626 - - -

DEDUCTIONS
Administrative Expenses - - 1,984,462 - - Interest - - 45,918 - - Total Deductions - - 2,030,380 - - CHANGE IN NET POSITION - 23,626 (2,030,380) - - Total Net Position (Deficit) -
Beginning of Year 154,596 (23,553) - 202 23,835

TOTAL NET POSITION (DEFICIT) -
END OF YEAR 154,596$ 73 $ (2,030,380)$ 202 $ 23,835 $

CITY OF LANCASTER

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025

(146)

CFD 90-1 CFD 91-1 CFD 91-2 CFD 21-1 Total

ADDITIONS
Special Assessments or Taxes
Collected from Property Owners - $ - $ - $ 25,795$ 25,795 $ Miscellaneous - - - 932 24,558 Total Additions - - - 26,727 50,353

DEDUCTIONS
Administrative Expenses - - - 2,692 1,987,154 Interest - - - - 45,918 Total Deductions - - - 2,692 2,033,072 CHANGE IN NET POSITION - - - 24,035 (1,982,719) Total Net Position (Deficit) -
Beginning of Year (207) 542 42,561 (250) 197,726

TOTAL NET POSITION (DEFICIT) -
END OF YEAR (207)$ 542 $ 42,561 $ 23,785 $ (1,784,993)$

(147)

THIS PAGE IS INTENTIONALLY LEFT BLANK

(148)

STATISTICAL SECTION

CITY OF LANCASTER

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2025

(149)

STATISTICAL SECTION
This part of the City of Lancaster’s comprehensive annual financial report presents detailed information as a context for under standing what the information in the financial statements, note disclosures, and required supplementary information says about the City’s ove rall financial health.

Contents

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.

Operating Information
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. The City implemented Statement 34 for the fiscal year ended June 30, 2003; schedules presenting government-wide information include information beginning in that year.

CITY OF LANCASTER

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)

(150)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net Investment in
Capital Assets 893,340,891 $ 868,784,058 $ 858,554,529 $ 850,994,405 $ 852,525,238 $ 845,575,930 $ 834,367,384 $ 820,612,473 $ 815,321,635 $ 801,291,678 $ Restricted 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 133,027,456 151,655,544 Unrestricted 3,063,526 (1,347,011) (6,020,947) (13,964,865) (80,694,919) 16,690,582 53,224,096 52,070,411 43,270,892 22,923,931 Total Governmental
Activities Net Assets 1,044,902,898$ 1,014,069,921 $ 995,991,467 $ 990,603,948 $ 983,489,489 $ 1,003,796,665 $ 1,036,415,215 $ 1,025,191,827 $ 991,619,983 $ 975,871,153 $ Business-Type activities
Net Investment in
Capital Assets (1,175,345) $ (998,271) $ (1,551,196) $ (2,054,121) $ (2,507,045) $ (2,899,971) $ (4,705,290) $ (4,933,215) $ (5,110,765) $ (5,244,065) $ Unrestricted 1,748,081 3,317,256 4,911,084 4,781,147 9,780,734 8,662,408 10,659,839 15,695,751 15,800,896 13,562,179 Total Business-Type
Activities Net Assets 572,736$ 2,318,985 $ 3,359,888 $ 2,727,026 $ 7,273,689 $ 5,762,437 $ 5,954,549 $ 10,762,536 $ 10,690,131 $ 8,318,114 $ Primary Government
Net Investment in
Capital Assets 892,165,546 $ 867,785,787 $ 857,003,333 $ 848,940,284 $ 850,018,193 $ 842,675,959 $ 829,662,094 $ 815,679,258 $ 810,210,870 $ 796,047,613 $ Restricted 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 133,027,456 151,655,544 Unrestricted 4,811,607 1,970,245 (1,109,863) (9,183,718) (70,914,185) 25,352,990 63,883,935 67,766,162 59,071,788 36,486,110 Total Primary Government
Net Assets 1,045,475,634 $ 1,016,388,906 $ 999,351,355 $ 993,330,974 $ 990,763,178 $ 1,009,559,102 $ 1,042,369,764 $ 1,035,954,363 $ 1,002,310,114 $ 984,189,267 $ *2017 Net Assets Restated
Fiscal Year

CITY OF LANCASTER

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)

(151)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental Activities:

General Government 24,202,118$ 8,960,666 $ 25,403,881 $ 36,559,231 $ 34,227,243 $ 35,691,615 $ 27,689,637 $ 39,446,279 $ 32,412,932 $ 34,540,164 $ Public Safety 26,305,165 28,407,266 29,600,738 30,472,647 31,515,319 32,230,935 35,132,514 39,792,259 47,567,575 49,956,125 Community Development 3,075,464 3,153,141 3,596,731 3,203,719 657,480 592,696 664,521 1,297,964 10,454,150 13,483,832 Parks, Recreation, and Arts 16,934,244 16,693,089 18,330,765 19,055,172 18,323,761 17,820,781 25,614,746 26,856,459 29,566,701 30,103,640 Development Services 50,457,653 69,971,677 54,409,902 53,929,613 53,960,990 50,239,507 65,722,004 89,042,176 85,116,515 85,811,177 Housing and Neighborhood
Revitalization 2,672,073 2,561,473 2,158,452 2,115,890 1,850,333 2,056,358 7,758,697 1,011,720 30,338,926 1,174,767 Interest on Long-Term Debt 217,001 273,270 793,067 920,559 2,315,735 3,119,743 2,551,057 3,036,813 2,548,299 6,201,309 Total Primary Governmental
Activities Expenses 123,863,718 130,020,582 134,293,536 146,256,831 142,850,861 141,751,635 165,133,176 200,483,670 238,005,098 221,271,014 Business-type Activities:

Lancaster Power Authority 2,166,532 2,039,939 1,987,221 1,968,698 1,841,253 1,825,146 1,947,106 1,348,432 1,339,619 1,339,671 Lancaster Choice Energy 20,238,595 33,808,624 34,290,014 36,835,001 39,741,272 47,013,871 51,194,116 67,149,222 79,779,572 87,233,960 California Choice Energy Authority - 52,276 2,414,623 4,287,401 5,650,866 6,033,722 7,081,730 7,517,372 4,555,947 - Total Business-Type
Activities Expenses 22,405,127 35,900,839 38,691,858 43,091,100 47,233,391 54,872,739 60,222,952 76,015,026 85,675,138 88,573,631 Total Primary
Government Expenses 146,268,845 165,921,421 172,985,394 189,347,931 190,084,252 196,624,374 225,356,128 276,498,696 323,680,236 309,844,645 Program Revenues (see Schedule 3)
Governmental Activities:

Charges for Services:

General Government 513,200 639,962 602,044 619,995 139,214 3,335,332 287,009 1,156,517 418,433 915,810 Public Safety 751,611 984,026 1,062,896 1,085,753 853,945 2,525,888 802,251 681,722 681,642 1,068,281 Community Development 496,533 661,602 634,154 639,536 597,666 430,021 653,198 816,687 303,034 431,712 Parks, Recreation and Arts 4,277,377 4,550,335 4,321,483 4,715,881 2,657,974 759,537 2,499,106 3,415,139 2,935,778 3,267,104 Development Services 14,565,036 15,011,307 15,313,752 15,847,319 16,463,307 18,297,602 20,552,067 20,662,559 21,870,288 22,638,640 Housing and Neighborhood
Revitalization 226,958 229,371 365,977 237,247 1,042,728 290,464 12 3,276 - - Operating Grants and Contributions 24,493,308 24,106,817 27,378,164 26,646,632 32,101,550 48,818,504 60,297,493 54,094,552 48,104,288 49,976,733 Capital Grants and Contributions 7,918,787 2,949,315 8,166,904 18,407,817 13,207,647 14,693,720 10,047,212 2,997,354 19,419,463 10,701,979 Total Governmental Activities
Program Revenues 53,242,810 49,132,735 57,845,374 68,200,180 67,064,031 89,151,068 95,138,348 83,827,806 93,732,926 89,000,259 Fiscal Year

CITY OF LANCASTER

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)

(152)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Business-Type Activities:

Charges for Services:

Lancaster Power Authority 3,512,716$ 2,818,772 $ 1,861,482 $ 1,661,277 $ 1,545,531 $ 1,896,121 $ 1,911,332 $ 1,910,499 $ 1,725,547 $ 2,040,460 $ Lancaster Choice Energy 23,437,682 36,023,817 37,454,517 37,059,153 43,397,265 43,786,322 51,692,560 68,549,854 81,950,853 84,281,387 California Choice Energy Authority - 80,000 1,495,702 4,535,102 5,438,167 5,987,488 7,206,199 8,015,547 5,254,985 - Total Business-Type Activities
Program Revenues 26,950,398 38,922,589 40,811,701 43,255,532 50,380,963 51,669,931 60,810,091 78,475,900 88,931,385 86,321,847 Total Primary Government
Program Revenues 80,193,208 88,055,324 98,657,075 111,455,712 117,444,994 140,820,999 155,948,439 162,303,706 182,664,311 175,322,106 Governmental Activities (70,620,908) (80,887,847) (76,448,162) (78,056,651) (75,786,830) (52,600,567) (69,994,828) (116,655,864) (144,272,172) (132,270,755) Business-Type Activities: 4,545,271 3,021,750 2,119,843 164,432 3,147,572 (3,202,808) 587,139 2,460,874 3,256,247 (2,251,784) Net Primary Government
Revenue (Expense) (66,075,637) (77,866,097) (74,328,319) (77,892,219) (72,639,258) (55,803,375) (69,407,689) (114,194,990) (141,015,925) (134,522,539) Other Changes in Net Assets
Governmental Activities:

Taxes
Property Taxes 19,252,156 19,468,926 20,423,770 22,583,607 24,296,937 26,148,244 27,184,193 33,007,795 29,116,559 35,309,129 Franchise Taxes 2,821,855 2,926,257 4,706,453 7,637,948 7,663,335 7,731,919 9,261,656 7,451,316 11,491,150 9,498,487 Transient Occupancy Taxes 1,866,299 2,064,522 2,202,452 2,211,230 1,965,102 2,012,943 2,709,026 2,676,338 2,294,723 2,197,103 Business Llicenses Taxes 915,740 842,598 932,469 920,998 722,837 1,223,982 1,364,377 855,151 1,489,181 2,551,880 Other Taxes 428,651 630,705 991,873 885,093 1,279,397 1,315,822 1,027,933 851,184 770,718 891,101 Intergovernmental 64,874 70,376 83,074 77,514 127,902 118,596 186,425 180,915 218,014 276,046 Intergovernmental -State
Shared Sales Taxes 19,498,624 20,462,687 20,483,067 23,611,132 21,961,474 31,805,221 50,950,947 49,229,826 47,258,659 53,750,509 Investment Earnings 532,869 465,226 243,124 1,942,204 4,696,743 1,391,387 (1,397,099) 3,977,989 6,536,775 6,542,350 Miscellaneous 1,041,187 2,308,190 3,393,939 10,536,241 4,138,146 1,546,901 9,577,174 14,641,946 2,335,357 4,361,484 Gain on Sale of Land Held
for Resale 1,158,860 443,926 1,283,807 1,220,392 888,441 513,340 801,949 433,995 2,520,183 166,026 Transfers 1,600,000 1,358,064 1,525,000 845,513 893,410 875,850 946,797 926,685 2,132,357 977,810 Total Governmental Activities 49,181,115 51,041,477 56,269,028 72,471,872 68,633,724 74,684,205 102,613,378 114,233,140 106,163,676 116,521,925 Business-Type Activities:

Investment Earnings 6,041 10,109 25,250 48,219 34,247 860 182 313 411,543 720,453 Miscellaneous 173,085 72,454 420,810 2,258,254 2,790,669 551,588 3,273,485 143,999 137,124 Transfers (1,600,000) (1,358,064) (1,525,000) (845,513) (893,410) (875,850) (946,797) (926,685) (2,132,357) (977,810) Total Business-Type Activities (1,420,874) (1,275,501) (1,078,940) (797,294) 1,399,091 1,915,679 (395,027) 2,347,113 (1,576,815) (120,233) Fiscal Year

CITY OF LANCASTER

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)

(153)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Extraordinary Gain/(Loss) 11,789,312 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total Primary Government
Revenues, Contributions,
Extraordinary Items and Transfers 59,549,553 49,765,976 55,190,088 71,674,578 70,032,815 76,599,884 102,218,351 116,580,253 104,586,861 116,401,692 Change in Net Assets
Governmental Activities (9,650,481) (29,846,370) (20,179,134) (5,584,779) (7,153,106) 22,083,638 32,618,550 (2,422,724) (38,108,496) (15,748,830) Business-Type Activities 3,124,397 1,746,249 1,040,903 (632,862) 4,546,663 (1,287,129) 192,112 4,807,987 1,679,432 (2,372,017) Total Primary Government (6,526,084) $ (28,100,121) $ (19,138,231) $ (6,217,641) $ (2,606,443) $ 20,796,509 $ 32,810,662 $ 2,385,263 $ (36,429,064)$ (18,120,847) $ Fiscal Year

CITY OF LANCASTER

FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(154)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable 35,269,352 $ 35,371,160 $ 34,813,055 $ 29,262,811 $ 29,674,751 $ 26,457,074 $ 27,214,902 $ 27,657,520 $ 51,474,037 $ 28,848,452 $ Committed - - - 3,365,000 1,614,733 8,083,847 47,957,898 49,046,805 51,150,088 54,119,745 Assigned 5,271,564 16,385,000 21,342,040 23,159,000 9,055,493 14,132,994 14,132,994 9,418,787 25,976,348 10,855,694 Unassigned 14,512,289 3,799,199 27,264 7,120,806 24,936,990 37,531,649 32,605,717 33,113,340 (14,880,638) 10,242,856 Total General Fund 55,053,205 $ 55,555,359 $ 56,182,359 $ 62,907,617 $ 65,281,967 $ 86,205,564 $ 121,911,511 $ 119,236,452 $ 113,719,835 $ 104,066,747 $ All Other Governmental Funds
Nonspendable 138,887 $ 302,869 $ - $ 1,952$ - $ 114,493$ 29,788 $ 174,084 $ 169,356 $ - $ Restricted 143,175,424 138,738,574 135,604,095 145,720,618 194,765,788 186,902,404 144,389,404 134,580,180 111,881,269 133,204,568 Assigned - 60,647 60,647 60,647 556,466 1,905,548 1,882,051 - - - Unassigned (2,239,594) (4,009,386) (5,552,234) (4,758,232) (12,709,657) (4,213,959) (5,907,837) (23,256,474) (12,859,932) (25,515,688) Total all Other Governmental Funds 141,074,717$ 135,092,704 $ 130,112,508 $ 141,024,985 $ 182,612,597 $ 184,708,486 $ 140,393,406 $ 111,497,790 $ 99,190,693 $ 107,688,880 $ Explanation of fund balance categories and descriptions can be found in Note 1 - Summary of Significant Accounting Policies; di fferences in fund balances betweem FY 19/20 & 20/21 are discussed in Management Discussion and Analysis section.

Fiscal Year

CITY OF LANCASTER

CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(155)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes 50,788,011$ 51,225,214 $ 32,694,321 $ 45,375,573 $ 39,776,377 $ 46,881,898 $ 67,506,842 $ 66,935,994 $ 72,605,732 $ 73,678,891 $ Licenses, Fees, and Permits 7,618,177 7,154,796 7,311,998 7,258,884 6,148,835 18,160,703 10,309,048 10,648,181 11,002,764 14,065,484 Intergovernmental 20,399,991 20,131,473 49,677,753 57,084,430 56,422,007 84,585,107 95,845,505 57,956,562 96,679,678 74,047,267 Charges for Services 11,943,261 12,047,968 12,110,502 12,735,980 11,656,942 10,631,985 12,541,661 14,069,824 13,494,049 14,776,820 Investment Earnings 1,315,125 865,832 1,011,369 2,587,662 2,913,406 538,028 (1,462,632) 4,338,468 6,295,028 6,448,765 Fines and Forfeitures 958,579 1,076,830 1,248,494 1,296,476 996,310 702,937 974,257 854,519 693,324 669,678 Contributions - 630 35,586 8,033 2,669 8,757 59,454 57,632 20,310 589,729 Rental Income 194,687 155,750 155,750 156,958 128,893 - 25,613 - 229,095 325,324 Gain from Sale of Land Held - - - - 30,303 472,883 570,576 433,995 2,448,984 34,675 Miscellaneous 2,365,424 5,320,963 6,340,721 5,930,584 6,331,271 7,193,270 9,499,352 12,513,345 2,474,519 4,369,736 Total Revenues 95,583,255 97,979,456 110,586,494 132,434,580 124,407,013 169,175,568 195,869,676 167,808,520 205,943,483 189,006,369 Expenditures
General Government 20,261,382 19,648,188 21,765,331 31,975,792 28,610,023 31,230,218 34,603,620 40,690,629 27,904,793 29,851,099 Public Safety 26,299,308 28,401,068 29,429,466 30,290,409 31,325,203 32,319,382 35,083,490 39,778,360 47,214,163 49,800,635 Community Development 2,796,072 2,879,556 3,352,591 2,779,144 236,826 490,242 236,622 871,273 9,911,454 12,938,772 Parks, Recreation, and Arts 15,218,338 16,157,838 16,769,802 17,655,903 17,042,667 15,392,513 23,729,690 24,969,678 26,682,605 27,536,853 Development Services 18,634,314 34,626,426 20,337,475 19,389,078 20,176,895 21,898,694 36,449,170 45,115,363 31,927,378 67,133,185 Housing and Neighborhood Revitalization 2,672,073 3,564,603 2,158,452 2,115,890 1,850,333 2,056,358 7,758,697 1,011,720 30,338,926 1,174,767 Capital Outlay 17,109,139 13,067,378 22,380,893 24,040,695 32,485,154 30,875,418 62,883,972 45,179,585 50,249,725 52,635,661 Principal 607,293 771,403 1,774,883 2,524,442 3,397,596 3,055,692 2,342,636 4,492,084 3,441,773 3,786,420 Interest 185,367 293,259 660,933 845,577 2,413,747 3,525,805 2,976,633 3,110,856 2,923,293 6,504,562 Total Expenditures 103,783,286 119,409,719 118,629,826 131,616,930 137,538,444 140,844,322 206,064,530 205,219,548 230,594,110 251,361,954 Excess of Revenues Over (Under)
Expenditures (8,200,031) (21,430,263) (8,043,332) 817,650 (13,131,431) 28,331,246 (10,194,854) (37,411,028) (24,650,627) (62,355,585) Other Financing Sources (Uses)
Sale of Capital Assets - - - - 526,178 40,457 576,405 4,024,793 113,377 131,351 Issuance of Debt - 14,250,000 - 14,955,000 48,405,000 - - - - 66,527,660 Bonds Issuance Premium - 529,230 - 387,570 7,268,805 - 62,519 - - - Sale of Capital Assets - - - 202,197 - - - - - - Gain (Loss) on Sale of Land - - 90,300 - - - - - - - Proceeds from Capital Lease 255,981 555,221 - 232,545 - - - 888,875 43,561 127,565 Transfers In 31,209,370 22,640,266 36,663,811 36,307,639 50,727,058 19,492,130 20,574,564 24,314,909 26,883,088 23,875,578 Transfers Out (29,609,370) (21,282,202) (35,138,811) (35,462,126) (49,833,648) (18,616,280) (19,627,767) (23,388,224) (24,750,731) (22,897,768) Total Other Financing Sources (Uses) 1,855,981 16,692,515 1,615,300 16,622,825 57,093,393 916,307 1,585,721 5,840,353 2,289,295 67,764,386 Extraordinary, Special Gain (Loss) 9,174,663 - - - - - - - - - Net Change in Fund Balances 2,830,613 $ (4,737,748) $ (6,428,032) $ 17,440,475 $ 43,961,962 $ 29,247,553 $ (8,609,133) $ (31,570,675) $ (22,361,332) $ 5,408,801 $ Debt Service as a Percentage
of Noncapital Expenditures 0.91% 1.00% 2.53% 3.13% 5.53% 5.98% 3.72% 4.75% 3.53% 5.18% 2018 and Beyond - Sales Taxes moved from Taxes category to Intergovernmental category.

Fiscal Year

CITY OF LANCASTER

TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(156)

Inter-
Governmental Business
Fiscal Property Transient State Shared Franchise Licenses Other Year Taxes Occupancy Sales Taxes Measure LC Taxes Taxes Taxes Total 2016 19,468,926$ 1,866,299 $ 19,498,624 $ - $ 2,926,257$ 842,598 $ 630,705 $ 45,233,409 $ 2017 20,423,770 2,064,522 20,462,687 - 4,706,453 932,469 991,873 49,581,774 2018 20,423,770 2,202,452 20,483,067 - 4,706,453 932,469 991,873 49,740,084 2019 22,583,607 2,211,230 23,611,132 - 7,637,948 920,998 885,093 57,850,008 2020 24,296,937 1,965,102 21,961,474 - 7,731,919 1,223,982 1,315,822 58,495,236 2021 26,148,244 2,012,943 26,734,737 5,070,608 7,731,919 729,798 1,010,653 69,438,901 2022 27,184,193 2,709,026 28,325,781 22,625,166 9,261,656 1,364,377 1,027,933 92,498,132 2023 33,007,795 2,676,338 27,547,477 21,682,349 7,451,316 855,151 851,184 94,071,610 2024 29,116,559 2,294,723 26,222,177 21,254,496 11,491,150 1,489,181 770,718 92,639,005 2025 35,309,129 2,197,103 27,592,187 21,259,056 9,498,487 2,551,880 891,101 104,474,256 2024-2025 21.27% -4.25% 5.22% 0.02% -17.34% 71.36% 15.62% 12.78% Change 3,891,236 381,615 1,325,300 427,853 (4,039,834) (634,030) 80,466 1,432,605 2016-2025 81.4% 17.7% 41.5% 100.0% 224.6% 202.9% 41.3% 131.0% Source: City of Lancaster Finance Department

CITY OF LANCASTER

ASSESSED VALUE AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(IN THOUSANDS)

(157)

Less: Total Taxable Total
Fiscal Residential Commercial Industrial Other Unsecured Tax-Exempt Assessed Direct Tax Year Property* Property* Property* Property* Property* Property Value Rate* 2015-16 7,366,323$ 1,272,042 $ 431,603 $ 1,137,342 $ 291,158 $ (513,024) $ 9,985,444 $ 0.091940% 2016-17 7,772,454 1,293,080 439,480 1,175,301 309,909 (429,860) 10,560,364 0.091220% 2017-18 8,248,993 1,331,678 455,985 1,213,136 283,133 (487,736) 11,045,188 0.090230% 2018-19 8,849,447 1,396,589 514,693 1,219,625 280,558 (461,721) 11,799,191 0.089460% 2019-20 9,457,797 1,444,154 550,237 1,332,867 360,368 (428,683) 12,716,740 0.088530% 2020-21 9,778,254 1,426,788 576,248 1,773,175 407,473 (638,594) 13,323,344 0.085786% 2021-22 10,463,372 1,408,293 636,430 1,865,415 376,652 (664,045) 14,086,117 0.084892% 2022-23 11,334,803 1,451,790 729,968 1,991,840 429,505 (728,380) 15,209,526 0.085840% 2023-24 12,109,009 1,519,158 755,059 1,319,416 464,649 (52,911) 16,114,380 0.085340% 2024-25 12,830,329 1,620,671 749,915 1,351,180 484,389 (53,969) 16,982,515 0.083990% * Total Direct Rate is the weighted average of all individual direct rates applied by the City and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.

Source: Los Angeles County Assessor data, Hdl, Coren & Cone

CITY OF LANCASTER

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025

(158)

Antelope Cit y's Share
Los Antelope Valle y Elementary Valley Total of 1% Lev y Fiscal An geles Union Hi gh School Communit y Direct and per Total Year General Count y School District Districts Colle ge Water Overlappin g (1) Prop 13 (2) Direct (3) 2016 1.00000% 0.00000% 0.02428% 0.21732% 0. 02556% 0.07049% 1.33765% 0.06611% 0.09194% 2017 1.00000% 0.00000% 0.02474% 0.21889% 0. 02560% 0.07049% 1.33972% 0.06611% 0.09122% 2018 1.00000% 0.00000% 0.02357% 0.21331% 0. 04869% 0.07049% 1.35606% 0.06611% 0.09023% 2019 1.00000% 0.00000% 0.02317% 0.20772% 0. 04847% 0.07049% 1.34985% 0.06611% 0.08946% 2020 1.00000% 0.00000% 0.02187% 0.20734% 0. 04722% 0.07049% 1.34692% 0.06611% 0.08853% 2021 1.00000% 0.00000% 0.02163% 0.06540% 0. 42466% 0.07049% 1.58218% 0.06611% 0.08579% 2022 1.00000% 0.00000% 0.02360% 0.20887% 0. 04424% 0.07049% 1.34720% 0.06611% 0.08579% 2023 1.00000% 0.00000% 0.02289% 0.18306% 0. 04060% 0.07049% 1.31704% 0.06611% 0.08584% 2024 1.00000% 0.00000% 0.02045% 0.15664% 0. 04078% 0.07049% 1.28836% 0.06611% 0.08534% 2025 1.00000% 0.00000% 0.02099% 0.16079% 0. 04335% 0.07049% 1.29562% 0.06611% 0.08399% Source: Los Angeles County Auditor 2015/16-2024/25 Tax Rate Table, HdL Coren & Cone (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. (2) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The City's ERAF portion of the City's Levy has been subtracted where known. former redevelopment tax rate areas.
(3) Total Direct Rate is the weighted average of all individual direct rates applied by the City and excludes revenues derived from aircraft. Beginning in 2013/14, the Total Direct Rate no longer includes revenue generated from the

CITY OF LANCASTER

PRINCIPAL PROPERTY TAXPAYERS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025

(159)

Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed A ssessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
WestCore Bravo Lancaster LLC 101,960,864$ 1 0.60% Kaiser 108,632,030 $ 1 1.07% AG Cordova Park Owner LP 89,556,580 2 0.53% Walmart Real Estate Business Trust 58,539,290 2 0.58% Rami Darghalli Trust 80,320,623 3 0.47% Thrifty Payless Inc 46,872,156 3 0.46% Walmart Stores Inc 70,708,114 4 0.42% CP Antelope Shops LLC 45,287,094 4 0.45% Granada Villas REI LLC 69,986,306 5 0.41% USIR II-Lancaster LLC 45,284,000 5 0.45% AG Sienna Heights Owner LP 65,196,265 6 0.38% MGF Cordova Park LP 34,796,789 6 0.34% B33 Valley Central II LLC 63,493,980 7 0.37% FTS Property Holdings LLC 30,535,093 7 0.30% 2018-3 IH Borrower LP 56,610,250 8 0.33% MGP IX Properties LLC 28,942,025 8 0.29% BYD Coach and Bus LLC 52,228,740 9 0.31% Sygma Network Inc 26,442,628 9 0.26% Vereit Real Estate LP 50,365,672 10 0.30% Castleblack Lancaster Owner II LLC 24,972,405 10 0.25% Top Ten Total 700,427,394 $ 4.12% 450,303,510 $ 4.45% City Total 16,982,515,283 $ 100.00% City Total 10,108,446,108 $ 100.00% Source: Los Angeles County Assessor data, HdL Coren & Cone 2015-162024-25

CITY OF LANCASTER

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025

(160)

Fiscal
Year Taxes Levied Collections in
Ended for the Percentage Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2016 6,698,981$ 6,698,981 $ 100% -$ 6,698,981$ 100% 2017 6,205,334 6,205,334 100% - 6,205,334 100% 2018 6,560,915 6,560,915 100% - 6,560,915 100% 2019 7,931,274 7,931,274 100% - 7,931,274 100% 2020 8,272,425 8,272,425 100% - 8,272,425 100% 2021 9,603,394 9,603,394 100% - 9,603,394 100% 2022 9,711,407 9,711,407 100% - 9,711,407 100% 2023 10,691,826 10,691,826 100% - 10,691,826 100% 2024 12,370,275 12,370,275 100% - 12,370,275 100% 2025 14,342,313 14,342,313 100% - 14,342,313 100% Source: City of Lancaster Finance Department
Collected within the
Fiscal Year of the Levy Total Collections to Date

CITY OF LANCASTER

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(DOLLARS IN THOUSAND, EXCEPT PER CAPITA)

(161)

*Business-Type
Lease Assessment Activity Total Percentage
Fiscal Revenue District Revenue Primary of Personal Per Year Bonds Bonds Bonds Government Income Capita
2016 - $ 1,370$ 23,745 $ 25,115 $ 125.87% 0.16 2017 - 15,200 22,140 37,340 195.17% 0.24 2018 - 14,215 22,195 36,410 191.69% 0.23 2019 14,340 14,157 21,735 50,232 254.71% 0.31 2020 14,085 12,630 21,225 47,940 229.77% 0.30 2021 13,820 12,060 20,284 46,164 206.87% 0.27 2022 13,545 11,475 18,328 43,348 193.90% 0.25 2023 13,255 10,870 17,616 41,741 169.75% 0.24 2024 12,950 10,250 17,155 40,355 144.68% 0.23 2025 118,075 9,610 16,325 144,010 505.88% 0.81 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements (Note 8).

CITY OF LANCASTER

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)

(162)

Percentage of
General Actual Taxable
Fiscal Obligation Value a of Per
Year Bonds Total Property Capita b
2016 - $ 193,400$ 193,400 $ 1.9368% 1.23 2017 - 180,410 180,410 1.7084% 1.14 2018 - 172,275 172,275 1.5597% 1.07 2019 - 163,995 163,995 1.3899% 1.01 2020 - 154,784 154,784 1.2172% 0.96 2021 - 161,023 161,023 1.2086% 0.94 2022 - 150,735 150,735 1.0701% 0.88 2023 - 140,155 140,155 0.9215% 0.81 2024 - 129,212 129,212 0.8018% 0.75 2025 - 120,449 120,449 0.7093% 0.68 Notes: Details regarding the outstanding redevelopment debt can be found in the notes to the financial statements (Note 16). a See Schedule 6 (Exhibit C-1) for property value data. b Population data can be found in Schedule 14 (Exhibit E-1).

General Bonded Debt Outstanding
Redevelopment
Bonds
Tax Allocation

CITY OF LANCASTER

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED JUNE 30, 2025

(163)

Estimated
Share of
Total Estimated Direct and
Debt Percenta ge Overlappin g
Outstanding Applicable Debt
Direct Debt
Direct Borrowings 6,480,489$ 100.00% 6,480,489 $ Other Debt:

Streetlight Acquisition Bonds of 2016 9,610,000 100.00% 9,610,000 Public Improvement Project Bonds of 2018 12,630,000 100.00% 12,630,000 Unamortized Bond Premiums 9,463,104 100.00% 9,463,104 Measure M & R Street Improvement 43,005,000 100.00% 43,005,000 Other Long-Term Liabilities 8,725,395 100.00% 8,725,395 Total Direct Debt 89,913,988
Overlapping Tax and Assessment Debt
Antelope Valley Joint Community College District 462,772,103 34.50% 159,674,886 Antelope Valley Union High School District 89,394,873 39.17% 35,012,396 Eastside Union School District 14,235,000 58.95% 8,391,390 Lancaster School District 109,412,293 97.55% 106,733,880 Westside Union School District 30,693,838 29.46% 9,040,870 Westside Union School District Community Facilities Districts 20,065,489 100.00% 20,065,489 City of Lancaster School District Community Facilities District No. 2004-1 9,505,000 100.00% 9,505,000 City of Lancaster Lighting Maintenance District 9,610,000 100.00% 9,610,000 California Statewide Community Development Authority Assessment Districts 6,000,000 100.00% 6,000,000 Total Overlapping Tax and Assessment Debt 364,033,911
Total Direct and Overlapping Governmental Funds Debt 453,947,899$ City Assessed Valuation 17,089,878,351$
Incremental Value 112,588,000
Total Assessed Valuation 17,202,466,351$
Debt to Assessed Valuation Ratios:

Direct Debt 0.523%
Overlapping and Assessment Debt 2.116%
Total Direct and Overlapping Governmental Funds Debt 2.639% Notes:

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of Lancaster. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.

Source: HdL Coren & Cone, Los Angeles Co Assessor & Auditor Combined 2020/21 Lien Date Tax Rolls, City of Lancaster Finance Department

CITY OF LANCASTER

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(DOLLARS IN THOUSANDS)

(164)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed Valuation 9,985,444 $ 10,560,364 $ 11,045,188 $ 11,799,191 $ 12,716,740 $ 13,323,344 $ 14,086,117 $ 15,209,526 $ 16,195,500 $ 17,089,878 $ Debt Limit (3.75% of Gross AV) 374,454 $ 396,014 $ 414,195 $ 442,470 $ 476,878 $ 499,625 $ 528,229 $ 570,357 $ 607,331 $ 640,870 $ Total Net Debt Applicable to Limit - - - - - - - - - - Legal Debt Margin 374,454 $ 396,014 $ 414,195 $ 442,470 $ 476,878 $ 499,625 $ 528,229 $ 570,357 $ 607,331 $ 640,870 $ Total Net Debt Applicable
to the Limit as a Percentage
of Debt Limit 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% Source: Los Angeles County Assessor data, HdL Coren & Cone Fiscal Year

CITY OF LANCASTER

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025
(DOLLARS IN THOUSANDS)

(165)

Property
Fiscal Tax
Year Increment Principal Interest Coverage
2016 25,590 $ 11,255 $ 10,531 $ 1.17 2017 21,248 6,350 7,600 1.52 2018 20,826 8,285 6,729 1.39 2019 19,409 8,435 7,002 1.26 2020 20,350 8,685 6,802 1.31 2021 21,052 8,985 6,493 1.36 2022 20,181 13,325 5,935 1.05 2023 16,083 9,675 5,496 1.06 2024 13,002 10,095 5,057 0.86 2025 8,050 7,955 4,714 0.64 Notes: Details regarding the City's outstanding redevelopment debt can be found in the notes to the financial statements (Note 16).

Debt Service
Redevelopment Tax Allocation Bonds

CITY OF LANCASTER

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
YEAR ENDED JUNE 30, 2025

(166)

Personal Per Capita % of Pop 25+ % of Pop 25+
Income Personal Unemployment with High with
Calendar Year Population (in Thousands) Income Rat e Median Age School Degree Bachelor's Degree 2014 159,956 3,171,927 $ 19,830 $ 9.20% 32.3 79.80% 15.70% 2015 157,094 3,134,596 19,953 7.50% 32.2 80.20% 15.40% 2016 157,820 3,019,475 19,132 5.90% 31.7 81.40% 15.10% 2017 161,485 3,067,258 18,994 5.10% 31.8 81.40% 15.50% 2018 161,604 3,187,146 19,721 6.60% 32.4 82.30% 16.00% 2019 161,699 3,373,741 20,864 6.40% 32.4 82.00% 16.20% 2020 171,674 3,830,805 22,315 5.00% 32.6 82.60% 17.60% 2021 171,674 3,838,000 22,356 6.50% 32.94 82.60% 10.39% 2022 173,376 4,263,255 24,589 7.30% 33.3 81.70% 19.10% 2023 172,631 4,815,047 27,892 6.70% 33.6 81.20% 19.40% 2024 177,768 5,060,651 28,467 7.70% 34.2 82.00% 20.10% Source: Los Angeles County Assessor data, HdL Coren & Cone

CITY OF LANCASTER
TOP 10 PRINCIPAL EMPLOYERS

CURRENT CALENDAR YEAR AND TEN YEARS PRIOR
YEAR ENDED JUNE 30, 2025

(167)

Percentage Percentage
Estimated of Total Valley Estimated of Total Valley
Employer Employees Rank Employment Employer Employees Rank Employment Edwards Air Force Base 13,000 1 18.57% Edwards Air Force Base 11,990 1 15.60% Northrop Grumman 7,000 2 10.00% China Lake Navel Weapons 6,520 2 8.48% Naval Air Weapons Station China Lake 6,520 3 3.93% Northrop Grumman 4,020 3 5.23% Antelope Valley Hospital Medical Center 2,750 4 3.29% County of Los Angeles 3,912 4 5.09% Antelope Valley Union Highschool District 2,300 5 9.31% Lockheed Martin 3,000 5 3.90% Palmdale School District 2,100 6 1.57% Antelope Valley Hospital 2,600 6 3.38% Lancaster School District 1,100 7 3.00% Antelope Valley Union High School District 2,500 7 3.25% Antelope Valley College 850 8 1.21% Lancaster School District 2,200 8 2.86% Trader Joe's Distribution Center 800 9 1.14% Palmdale School District 2,001 9 2.60% Ride.Co (formerly BYD) 750 10 1.07% Antelope Valley Mall 1,975 10 2.57% Total Employment 70,000 53.10% 76,843 52.99%
Source: City of Lancaster Economic Development: City of Lancaster ACFR FY 2015-2016 Notes: Total employment as used above may represent figures from total employment located within the Greater Antelope Valley region. The Greater Antelope Valley is considered to be the City's economic region and covers 3,514.2 square miles of area and includes Lancaster, Palmdale, Tehachapi, Mojave, Edwards AFB, and Ridgecrest. 2025 2016

CITY OF LANCASTER

FULL-TIME-EQUIVALENT CITY GOVERNMENT

EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2025

(168)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Administrative Services 3.00 1.00 13.00 16.00 15.00 12.00 - - - - Air Quality Management District - - - - - - 6.00 6.00 7.00 7.00 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 6.00 6.00 5.00 5.00 City Manager 11.75 12.75 9.75 8.00 10.00 9.00 10.00 10.00 12.00 12.00 Communications - - - - - - 4.00 4.00 5.00 5.00 Community Development - - - - - - - 12.00 27.00 27.00 Economic Development, Housing, and Film 4.00 4.00 5.00 2.00 23.00 - 10.00 13.00 13.00 Finance and Information Technology 25.00 25.00 19.00 18.00 17.00 25.00 25.00 25.00 25.00 Housing and Neighborhood Revitalization 20.00 20.00 19.00 21.00 17.00 17.00 - - - - Human Resources 4.00 6.00 7.00 7.00 7.00 10.00 10.00 10.00 11.00 11.00 Planning, Building & Safety, and Energy - - - - - - - 17.00 - - Redevelopment - - - - - - - - - - City Attorney 1.00 2.00 2.00 2.00 - - - - - - Development Services 131.00 131.00 124.00 124.00 122.00 105.00 134.00 - - - Lancaster Choice Energy 8.00 8.00 5.00 4.00 1.00 - - - - - Parks, Recreation, and Arts 45.00 45.00 45.00 47.00 45.00 51.00 53.00 53.00 55.00 55.00 Public Safety 12.00 12.00 13.00 11.00 12.00 26.00 50.00 50.00 46.00 46.00 Public Works - - - - - - - 95.00 104.00 104.00 Less: Vacancies Filled by Internal Recruitments (22.00) (18.75) (19.00) (8.00) - - - - - - Total 245.75 251.00 245.75 255.00 249.00 256.00 298.00 298.00 310.00 310.00 Year Over Year (6.50) 5.25 (5.25) 9.25 (6.00) 7.00 42.00 - 12.00 - Source: City Human Resources Department
Notes: The Lancaster Redevelopment Agency was dissolved according to ABx1 26 which was signed into law June 29, 2011.

The City went through a reorganization in 2021 resulting in ACS being disolved and divisions being absorbed by various departments.

Function
Fiscal Year

CITY OF LANCASTER

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
YEAR ENDED JUNE 30, 2025

(169)

Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government City Hall 1 1 1 1 1 1 1 1 1 1 1 1 Annex/Record Center - - - - - - - - - - - - Antelope Valley UHSD Building - - - - - - - - - - - - Community Development
Brierwood Mobile Home Park - - - - - - - - - - - - Desert Sands Mobile Home Park - - - - - - - - - - - - Development Services
Maintenance Yard - Modular Office Bldg. 1 1 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Office/Warehouse 1 1 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Maintenance Garage 1 1 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Canopy 1 1 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Storage Bldg 4 3 3 3 3 3 3 3 3 3 3 3 Maintenance Yard - Wash Bay 1 1 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - HazMat Storage Bldg 1 1 1 1 1 1 1 1 1 1 1 1 Streets (miles) 640 1,765 1,765 1,765 1,765 1,765 1,769 482 1,493 1,493 1,493 1,493 Streetlights (owned by City) 1,895 1,895 1,908 19,576 19,576 19,576 19,576 19,777 19,777 21,000 21,000 21,500 Traffic signals 139 147 145 153 153 141 143 143 143 145 145 153 Street Signs 26,400 26,412 26,472 26,759 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 Fleet Vehicles 318 304 322 320 318 321 321 318 341 404 404 404 Storm Drain Pipe (LF) 485,113 485,113 485,113 420,239 420,239 430,445 430,868 432,434 434,193 434,917 434,917 438,755 Storm Drain Box (LF) 27,996 27,996 27,996 27,996 27,996 9,217 9,217 9,217 9,217 9,217 9,217 9,297 Storm Drain Box (Each) 1,547 1,547 1,477 1,477 1,487 1,494 1,498 1,498 1,511 Storm Drain Channel (LF 44,883 44,883 44,883 45,733 45,733 45,951 45,951 45,951 45,951 45,951 45,951 45,954 Sewer Pipe (LF) 2,265,120 2,265,120 2,262,626 2,268,696 2,268,527 2,265,120 2,271,627 2,276,401 2,314,392 2,283,494 2,283,494 2,280,005 Sewer Manholes 9,188 9,042 8,966 8,975 8,977 9,073 9,106 9,130 9,276 9,300 9,300 9,294 Sewer Lift Station 1 1 1 1 1 1 1 1 1 1 1 1
Drainage Lift Station - - - - - - - 13 14 13 13 14 Recycled Water Pump Station - - - - - - - - 2 2 2 2 Parks, Recreation and Arts
Acreage 538 538 538 538 538 558 558 558 558 558 558 558 Developed park sites 14 14 14 14 14 14 14 14 14 14 14 14 Pools 2 2 2 2 2 2 2 2 2 2 2 2
Big 8 Tournament Baseball complex 1 1 1 1 1 1 1 1 1 1 1 1 Batting Cage Facility 1 1 1 1 1 1 1 1 1 1 1 1 Soccer complex 1 1 1 1 1 1 1 1 1 1 1 1
Community/Activity Centers 8 8 8 8 8 8 8 8 8 8 8 9 Cedar Center 1 1 1 1 1 1 1 1 1 1 1 1
Prime Desert Woodlands Preserve/Nature Cntr 1 1 1 1 1 1 1 1 1 1 1 1 Municipal Baseball Stadium 1 1 1 1 1 1 1 1 1 1 1 1 Performing Arts Center 1 1 1 1 1 1 1 1 1 1 1 1 Museum and Art Gallery 1 1 1 1 1 1 1 1 1 1 1 1 Western Hotel (historic site) 1 1 1 1 1 1 1 1 1 1 1 1 Metrolink Station 1 1 1 1 1 1 1 1 1 1 1 1
Park and Ride Lots 8 8 8 8 8 8 8 8 8 8 8 8
Sources: Various city departments.
*Estimated figures

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and City Council

City of Lancaster
Lancaster, 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 City of Lancaster as of and for the year ended June 30, 2025, and have issued our report thereon dated February 11, 2026. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards , as well as certain information related to the planned scope and timing of our audit in our engagement agreement dated July 29, 2025.

Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Lancaster are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to compensated absences by adopting Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, in fiscal year 2024-2025. This did not significantly impact the City’s financial statements.

We noted no transactions entered into by the entity 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
Accounting estimates are an integral part of t he 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 financial statements were:
 The actuarially determined contribution, Other Postemployment Benefit (OPEB) expense, net OPEB liability, and corresponding deferred outflows of resources and deferred inflows of
resources for the City’s
OPEB plans are based on actuarial valuations provided by a third-party consultant.

The annual required contributions, pension expense, net pension liability and corr esponding deferred outflows of resources and
deferred inflows of resources for the City’s defi ned benefit plan with PARS are based on actuari
al valuations provided by a third-party consultant.

Management’s estimate for claims payable liabilities related to general liability are based on estimates by the claims administrators and actuarial valuation provided by a third-party consultant.

Honorable Mayor and City Council
City of Lancaster

Page 2 ends

Lancaster City CouncilFebruary 24, 2026

Lancaster City Council
February 24, 2026