2026 REGULAR MEETING - CITY COUNCIL / LINCOLN REDEVELOPMENT SUCCESSOR AGENCY / LINCOLN PUBLIC FINANCING AUTHORITY*
March 24, 2026
CITY OF LINCOLN
2026 REGULAR MEETING - CITY COUNCIL /
LINCOLN REDEVELOPMENT SUCCESSOR AGENCY
/ LINCOLN PUBLIC FINANCING AUTHORITY*
March 24, 2026
AS A COURTESY, PLEASE TURN OFF ALL CELL PHONES & ELECTRONIC DEVICES DURING THE MEETING -COUNCIL MEETING AGENDA6:00 PM
Mayor Richard Pearl
Mayor Pro Tem Whitney Eklund Councilmember Holly Andreatta Councilmember Ben Brown Councilmember John Reedy
City Hall (Extremely Limited Seating Capacity)
3rd Floor Council Chambers
600 Sixth Street
Lincoln, CA 95648
or attend via
ZOOM
register by using this link:
https://us06web.zoom.us/webinar/register/WN_L1sVeRjjSwaygN5OEfk5ew or participate by calling US: +1 (669) 900-6833
use ID #842 1355 6096
and use *9 to raise hand to speak
600 Sixth Street ◆ Lincoln, CA 95648 ◆ www.lincolnca.gov ◆ 916-434-2400 1 1. CLOSED SESSION - 4:30pm
2. CALL TO ORDER
EXECUTIVE TEAM
Sean Scully, City Manager Douglas White, Special Counsel Nita Wracker, Asst. City Manager / Finance Director Matt Alves, Police Chief Jennifer Brown, Chief Innovation & Tech. Officer Vin Cay, City Engineer Erin Frye, Econ. Dev. & Communication Specialist Kathryn Hunt, Library Services Director Hope Ithurburn, City Clerk Matthew Medill, Public Works Director Veronica Rodriguez, Human Resources Director Anthony Mejia, Fire Chief MISSION STATEMENT: To provide the highest level of service responsive to our community’s expectations and to enhance the quality of life and economic vitality.
THE FOLLOWING INFORMATION IS PROVIDED TO ASSIST WITH PUBLIC PARTICIPATION:
Americans with Disabilities Act (ADA): In compliance with the ADA, if you need special assistance to participate in this meeting or other services in conjunction with this meeting, please contact the City Clerk’s Office at (916) 434-2490. The meeting room is wheelchair accessible and disabled parking is available. Notification at least 48 hours prior to the meeting or time when services are needed will assist City staff in assuring reasonable arrangements can be made to provide accessibility to the meeting or service.
Agenda Availability: The main posting location of the City Council Agenda pursuant to the Brown Act, Government Code § 54954.2(a) is on the public kiosk outside the entrance of City Hall, 600 6th Street, Lincoln, California. City Council Agenda Packets are available for review at the City Clerk’s Office, 600 6th Street, Lincoln, California, and “Live and Archived” meetings, minutes and videos are available on the City’s website at www.Lincolnca.gov. City Council Meetings are televised live 6:00PM on Cable channel 18.
Public Input: Persons wishing to address the City Council are asked to voluntarily complete and submit a speaker card to City staff. Speaker cards are available near the entrance of the meeting location. Persons wishing to address the City Council on an item appearing on this agenda will be called upon at the appropriate time during the item’s consideration. Persons wishing to address the City Council on an item not appearing on the agenda will be called upon during “Public Comment on Non-Agenda Items.” In either case, please stand to be recognized by the Mayor when your name is called. Please note:
comments from the audience without coming to the podium may be disregarded or ruled out of order. All speakers' time will be limited to three (3) minutes, unless extended by the Mayor. All comments or questions should be addressed to the Mayor and in most cases, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda, but may engage in brief discussion, provide direction to City staff, or schedule items for future meetings.
Special Meeting Public Input: Only issues listed on a special meeting agenda may be addressed pursuant to the Brown Act’s regulation of Special Meetings.
Consent Agenda: All matters on the Consent Agenda are considered routine business and will be enacted by one motion.
There will be no separate discussion of these items unless a member of the City Council requests a specific item be removed from the Consent Agenda for separate action. Any items removed will be considered after the remainder of the Consent Agenda.
Judicial Review: Pursuant to applicable laws and regulations, including without limitation, California Government Code § 65009 and/or California Public Resources Code § 21177, if you wish to challenge in court any of the decisions made by the City Council, including any action regarding planning, zoning or environmental decisions, you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.
1.A CONFERENCE WITH LABOR NEGOTIATORS:
Pursuant to Government Code Section §54957.6
City Designated Representative: Veronica Rodriguez
Employee Organization: Classified, Local 39 Employee Group
1.B CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov. Code Section, §54956.9(d)(2):
Two (2) Potential Cases
600 Sixth Street ◆ Lincoln, CA 95648 ◆ www.lincolnca.gov ◆ 916-434-2400 2 3. ROLL CALL
4. PUBLIC COMMENT(CLOSED SESSION AGENDA ITEMS ONLY)
5. CALL TO ORDER
6. ROLL CALL
7. REPORT FROM CLOSED SESSION (if applicable)
8. PLEDGE OF ALLEGIANCE
9. AGENDA MODIFICATIONS
10. PRESENTATIONS
11. PUBLIC COMMENT ON NON-AGENDA ITEMS WITHIN THE SUBJECT MATTER JURISDICTION OF THE COUNCIL *All speakers' time will be limited to three (3) minutes, unless extended by the Mayor. All comments or questions should be addressed to the Mayor and in most cases, the City Council is prohibited from discussing or taking action on any item not appearing on the posted agenda, but may engage in brief discussion, provide direction to City staf , or schedule items for future meetings.
12. CONSENT
GENERAL SESSION - 6:00pm
INSPIRATION OR INVOCATION
10.A Presentation of the Fiscal Year 2024 Annual Comprehensive Financial Report (ACFR). (Nita Wracker)
12.A Approval of Meeting Minutes of March 16, 2026 Special City Council Meeting. (Hope Ithurburn)
12.B Approval of Meeting Minutes of March 10, 2026 Regular City Council Meeting. (Hope Ithurburn)
12.C Adopt a Resolution Appointing Assistant City Manager Nita Wracker (or designee) as the Real Property Negotiator Relative to the Sale of a Vacant Parcel located at the Southwest Intersection of Joiner Parkway and 1st Street in Lincoln. (Nita Wracker)
12.D Adopt a Resolution Approving Auburn Ravine Center Parcel Map. (Sukhpal (SP) Mann)
12.E Adopt a Resolution Approving Liberty at Lincoln Village 1 Improvement Plans, Liberty at Lincoln Village 1A Final Map, Authorizing the Execution of the Subdivision Improvement Agreement for Liberty at Lincoln Village 1A, And Authorizing the Recording of the Final Map and the Subdivision Improvement Agreement (Sukhpal (SP) Mann)
12.F Adopt a Resolution Approving Liberty at Lincoln Village 2 Improvement Plans, Liberty at Lincoln Village 2 Final Map, Authorizing the Execution of the Subdivision Improvement Agreement for Liberty at Lincoln Village 2, and Authorizing the Recording of the 600 Sixth Street ◆ Lincoln, CA 95648 ◆ www.lincolnca.gov ◆ 916-434-2400 3 13. PUBLIC HEARINGS
14. GENERAL BUSINESS
15. CITY MANAGER REPORTS
16. COUNCIL INITIATED BUSINESS
17. COMMITTEE REPORTS
18. INFORMATION ITEMS
19. ADJOURNMENT
Final Map and the Subdivision Improvement Agreement (Sukhpal (SP) Mann)
12.G Adopt a Resolution Approving the Liberty at Lincoln Village 3B Final Map. (Sukhpal (SP) Mann)
12.H Adopt a Resolution Approving the Liberty at Lincoln Village 4B Final Map. (Sukhpal (SP) Mann)
12.I Adopt a Resolution Authorizing the City Manager to Enter into a Memorandum of Understanding with the Friends of the Lincoln Public Library to Issue a Restricted Award of Funds Available from the City's Carnegie Corporation of New York Gift to Support Library Projects and Services. (Kathryn Hunt)
13.A Adopt a Resolution Approving the Tentative Parcel Map with Project Specific and Typical Conditions of Approval for the Proposed Leavell North Project. (Tom Cruickshank)
14.A Train Town Discussion (Sean Scully)
14.B Adopt a Resolution Approving the Successor Memorandum of Understanding between the International Association of Fire Fighters Local 522-Lincoln Professional Firefighters Association and the City of Lincoln and Related Salary Schedules. (Veronica Rodriguez)
14.C Adopt a Resolution Authorizing the City Manager to Enter into a Legal Services Agreement with White Brenner, LLC (Sean Scully)
Adjourn to the Regular Meeting of the Lincoln City Council on April 14, 2026. 600 Sixth Street ◆ Lincoln, CA 95648 ◆ www.lincolnca.gov ◆ 916-434-2400 4 NOTE: Materials related to an item on this Agenda submitted to the Council/Redevelopment Successor Agency after distribution of the agenda packet are available for public inspection in the City Clerk's office at 600 Sixth Street, Lincoln, CA during normal business hours. Such documents are also available on the City of Lincoln's website at https://www.lincolnca.gov/ subject to staff's availability to post the documents before the meeting.
In compliance with the American with Disabilities Act, the City will provide special assistance for disabled members of the public. The meeting room is wheelchair accessible and disabled parking is available. If you have a disability and need a disability-related modification or accommodation to participate in the meeting, please contact the City Clerk's Office at (916) 434-2490. As a courtesy, please make every effort to inform the Clerk of your needs at least 24 hours prior to the meeting so the City may make reasonable arrangements to ensure accessibility to this meeting.
Pursuant to applicable laws and regulations, including without limitation, California Government Code Section 65009 and/or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (including any action regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.
Levine Act Provisions -- The Levine Act requires a party (or the party's agent(s)) to a proceeding before the City of Lincoln that involves any action or consideration to their contract, license, permit, or other entitlement for use, to disclose any campaign contribution made to City elected or appointed officer totaling more than $500 within the 12 months before the City decision. This includes contributions to Councilmembers, Planning Commissioners and members of other City boards and commissions.
600 Sixth Street ◆ Lincoln, CA 95648 ◆ www.lincolnca.gov ◆ 916-434-2400 5 SUBJECT: Presentation of the Fiscal Year 2024 Annual Comprehensive Financial Report (ACFR). (Nita Wracker)
SUBMITTED BY: Nita Wracker
DEPARTMENT: Finance
DATE: March 24, 2026
Item Number 10.A
ATTACHMENTS:
2025 Lincoln Audit Presentation.pdf
City of Lincoln 2025 - All Reports Unlocked for Council Meeting.pdf
STAFF REPORT
6 Summary of Audit Results
June 30, 2025
City of Lincoln
1 7
Auditor & Management Responsibilities
2 Management is responsible for the preparation and presentation of the financial statements.
Purpose of an audit is to provide financial statement users with an independent opinion on whether the financial statements are presented fairly, in all material respects, and in accordance with applicable accounting standards (GAAP). 8 Audit Process
3 Audit Interim Fieldwork – June 2025
Planning – risk assessment, review of Council minutes, management inquiry
Documentation of financial processes and testing of internal controls Cash receipts Disbursements Payroll Journal entries, bank reconciliations, financial reporting 9 Audit Process
4 Audit Year-End Fieldwork – January 2026
Testing of Year-End Balances and Activity
Confirmation of balances Cut-off testing – receivables and payables Detail tests of transactions Analytical review Single Audit – Audit of Federal grant expenditures in accordance with the Uniform Guidance
Preparation of financial statements and footnotes
10 Government
Auditing
Standards
(GAS) Report
Independent
Auditor’s
Report
Uniform
Guidance
Report
Management
Letter
Audit
Conclusion
Letter
5 Reporting the Results of the Audit
11 Financial Report - ACFR
6 Annual Comprehensive Financial Report (ACFR)
Introductory Section
Basic information on the City Transmittal letter
Financial Section
Independent Auditor’s Report Management’s Discussion & Analysis (MD&A) Financial statements and related notes Statistical Section
Additional financial, economic, and demographic information 12 Audit Results – Financial Statements
7 Independent Auditor’s Report – Financial Section of the ACFR Types of opinions: unmodified, qualified, adverse, and disclaimer June 30, 2025: Unmodified (“Clean”) audit opinion No material misstatements Financial statements are presented in accordance with GAAP 13 Audit Reporting – Government Auditing
Standards
8 Types of Findings: Material Weakness, Significant Deficiency, & Compliance Material Weakness (1)
2025-001 (repeat): Special Assessment Debt Proceeds (related to prior year transactions)
Significant Deficiency (1)
2025-002 (partial repeat): Financial Close & Financial Reporting Compliance Exceptions – none Status of Prior Year Finding 2024-003 Grants: implemented 14 Audit Reporting – Single Audit
9 Uniform Guidance (Federal Single Audit) Report
Required when an entity expends more than $750,000 in Federal grant funds
Major Program Tested:
Coronavirus State and Local Fiscal Recovery Funds (ARPA) Unmodified (“clean”) audit opinion on the major programs No findings in relation to internal controls over compliance No compliance exceptions 15 Audit Reporting – Management Letter
10 Management letter reports control deficiencies or recommendations for improvement
Classification of receivables – consistent use of proper accounts to help facilitate and improve reconciliations
Computer loan accounts receivable – payments being recorded in different fund than receivable
Inventory – inaccurate price & quantity used to calculate inventory value
Accrued benefits – various accounts lacking proper reconciliation Prior year recommendations (2: pooled cash & transfers) - implemented 16 Audit Reporting – Conclusion Letter
11 Communication with Those Charged with Governance
New Accounting Policies
GASB 101, Compensated Absences
Significant Changes in Disclosures
None
Accounting Estimates
Allowance for accounts and notes receivables Depreciation Pension and OPEB liabilities Leases and SBITAs Compensated absences 17 Audit Reporting – Conclusion Letter
12 Difficulties Encountered in Performing the Audit
None
Disagreements with Management
None
Other Matters
Reference to material weakness related to special assessment debt Audit Adjustments (4) – Attachment A
To record special assessment prior period adjustmen
t
To correct pension trust contributions To correct airport fuel inventory To correct employee computer loan balance 18 1 Material
Weakness
1 Significant
Deficiency
Unmodified
Opinion on the
Financial
Statements
4 Recommendations
for improvement
4 Audit
Adjustments
13 Summary of Audit Results
Unmodified
Opinion on the
Major Federal
Program
19 Thank you.
Erica Pastor, CPA
MUN CPAs, LLP
1760 Creekside Oaks Drive #160
Sacramento, California 95833
(916) 929-0540
[email protected]
20 ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ended
June 30, 2025
2 0
2 5
21 CITY OF LINCOLN
STATE OF CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
PREPARED BY FINANCE DIVISION
_______________________________________________________________________________________________ 22 CITY OF LINCOLN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:
Transmittal Letter i - v
Government Finance Officer's Association Certificate of Achievement vi List of Officials vii
Organizational Chart viii
FINANCIAL SECTION:
Independent Auditor's Report 1 - 3
Management's Discussion and Analysis 4 - 15
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position 16 - 17
Statement of Activities 18
Fund Financial Statements
Balance Sheet - Governmental Funds 19 - 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 21
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 22 - 23
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Statement of Net Position - Proprietary Funds 25 - 26
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 27 - 28 Statement of Cash Flows - Proprietary Funds 29 - 30
Statement of Fiduciary Net Position - Fiduciary Funds 31 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 32 Notes to Basic Financial Statements 33 - 77
Required Supplementary Information:
Schedule of the City's Proportionate Share of the Net Pension Liability 78 - 79 Schedule of Pension Contributions 80 - 81
Schedule of Changes in the City's Net OPEB Liability and Related Ratios 82 - 83 Schedule of OPEB Contributions 84 - 85
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 86 - 87
23 CITY OF LINCOLN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Required Supplementary Information (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Public Facility Element (PFE) 88
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Water Connections 89
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Special Assessment Districts 90
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Development Services 91
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Low/Moderate Income Housing 92
Notes to Required Supplementary Information 93
Combining Financial Statements and Schedules
Non-Major Governmental Funds:
Description of Non-major Governmental Funds 94 - 96
Combining Balance Sheets 97 - 101
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 102 - 106 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park In-Lieu Fund 107
Gas Tax Fund 108
Street Fund 109
Parks and Recreation Tax Fund 110
CDBG-CV Fund 111
Police Grants Fund 112
ARPA Fund 113
Revitalization and Rehabilitation Loans Fund 114
Community Development Block Grant Fund 115
HOME Investment Partnership Program Fund 116
CalHOME Grants Fund 117
Oak Tree Mitigation Fund 118
Federal Grants Fund 119
Internal Service Funds
Description of Internal Service Funds 120
Combining Statement of Net Position 121
24 CITY OF LINCOLN
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Combining Financial Statements and Schedules (Continued) Combining Statement of Revenues, Expenses, and Changes in Net Position 122 Combining Statement of Cash Flows 123
Fiduciary Funds
Description of Custodial Funds 124
Combining Statement of Fiduciary Net Position 125 - 126 Combining Statement of Changes in Fiduciary Net Position 127 - 128 STATISTICAL SECTION:
Description of Statistical Section 129
Financial Trends
Net Position by Component 130
Changes in Net Position 131 - 132
Fund Balances - Governmental Funds 133
Changes in Fund Balances - Governmental Funds 134
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 135 Property Tax Rates - Direct and Overlapping Governments 136 Principal Property Taxpayers 137
Property Tax Levies and Collections 138
Debt Capacity
Ratios of Outstanding Debt by Type 139
Direct and Overlapping Governmental Debt 140
Computation of Legal Bonded Debt Margin 141
Economic and Demographic Information
Demographic and Economic Statistics 142
Principal Employers 143
Sales Tax Producers - Top 25 144
Operating Information
Full-time Equivalent City Government Employees 145
Operating Indicators 146
25 INTRODUCTORY SECTION
26 City Hall
600 Sixth Street
Lincoln, CA 95648
(916) 434-2400
www.lincolnca.gov
City Manager’s Office Community Development Engineering Fire Information Technology Library Recreation Police Public Works Finance March 16, 2026
Honorable Mayor and Members of the City Council:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Lincoln (City) for the fiscal year ended June 30, 2025, in accordance with the Lincoln Municipal Code Section 2.20.030(C). The basic financial statements and supporting schedules have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB).
Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal controls that have been established for this purpose. The cost of internal control should not exceed anticipated benefits, and therefore the objective of financial management is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements.
The City contracted with MUN CPAs, LLP to perform the annual independent audit. The independent auditor's report is included in the Financial Section of this report. The Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements.
Profile of the Government
The City of Lincoln was incorporated in 1890 and is located 27 miles northeast of Sacramento in the northernmost region of south Placer County. The City occupies 24 square miles and serves a population of more than 55,000 people. Lincoln is a General Law City, formed under the State Legislative Process and structured under the provisions of the California Constitution. The Lincoln City Council is the governing body of the City and is comprised of five elected officials, who are elected by district to four-year terms. i 27
City Hall
600 Sixth Street
Lincoln, CA 95648
(916) 434-2400
www.lincolnca.gov
City Manager’s Office Community Development Engineering Fire Information Technology Library Recreation Police Public Works Finance Each of the Councilmembers may take an annual turn as Mayor. City voters also elect a City Treasurer who serves a four-year term.
Lincoln is operated under the Council-Manager form of government. The City Council appoints the City Manager, who is then responsible for implementing the City Council’s policy direction and overall management of the City. The City provides a full range of services, including public safety (police and fire), sanitation, water and sewer service, library, recreational and cultural activities, public improvements, planning, zoning, general administrative services, and a municipal airport.
Residents of the City may actively participate in the local government process by serving on a City commission, committee, or boards in an advisory capacity to the City Council.
These include the Planning Commission, Economic Development Committee, Fiscal and Investment Oversight Committee, Airport Committee, Parks and Recreation Committee, and Library Board.
The City Council transitioned from an annual budget process to a biennium budget process, adopting a biennium budget every 2 years which serves as the foundation for the City’s financial planning and control. Ultimate budgetary control resides at the fund level.
However, the City has adopted several budgetary appropriation and transfer procedures to provide strong internal controls while encouraging improved accountability and administrative responsiveness. All transfers between funds require City Council review and approval.
The City Council and staff strive to achieve the City’s ongoing Mission:
“To provide the highest level of service responsive to our community’s expectation and to enhance the quality of life, and economic vitality.” The Council’s strategic priorities are reviewed and updated, as needed, annually and currently include Economic Development, Infrastructure, Organizational Excellence, Team Cohesion, Sustainable Fiscal Health, and Increased Public Safety Service Levels. The goals are wide ranging and are designed to ensure the ongoing quality of life and economic viability for the City of Lincoln organization, its residents, staff and community partners.
Major Initiatives
Using the Strategic Plan as developed by the City Council, the organization continued work to advance key initiatives including economic development, infrastructure projects, organizational excellence, team cohesion, sustainable fiscal health, and increased public safety levels.
ii 28
City Hall
600 Sixth Street
Lincoln, CA 95648
(916) 434‐2400
www.lincolnca.gov
City Manager’s Office Community Development Engineering Fire Information Technology Library Recreation Police Public Works Finance iii
As an ongoing and key core tenant, the City continues to incorporate new innovative technologies to ensure that quality municipal services are being delivered efficiently to the residents of Lincoln. This effort includes continued work on the multi-year process of implementation of a new enterprise resources planning (ERP) system. The financial system implementation is complete as of the date of the audit report and the City recently rolled out the new utility billing system with payroll and human resources planned for 2027. Additionally, staff continue to work to enhance land management and permitting software, improve cyber security to respond to a rapidly changing cyber security environment worldwide and new software/technology to make utility delivery more efficient and effective for our residents. The City has also continued to leverage technology to build improvements on the Financial Transparency dashboard and the Property Tax lookup tool.
One of the most important priorities for the Council (historically) has been public safety funding and staffing. Although the City of Lincon has a very low attrition rate, ongoing recruitments to ensure full Police and Fire staffing is and will remain a key function of the City. Along that vein, the City recently added a dedicated Fire Chief position to provide oversight and management of all fire personnel and related activities. Separately, careful financial planning ensures that as the City continues to add residents and businesses, public safety staffing must keep pace to ensure Lincoln continues to be a safe place to work and live.
The City continues its initiative to enhance economic development within the City by adding a second economic development position focused on enhancing existing business and attracting new business. With two staff now allocated to economic development and communications within the City, efforts will continue toward securing businesses to provide major job producing economic development, facilitation of large-scale commercial developments, small business support and community events that drive commerce in Lincoln. Along these lines the City has continued the work on the Downtown specific plan with the intent of resetting and enhancing the economic environment of our historic downtown and surrounding areas.
Momentum for Lincoln Regional Airport continues with the construction of new hangar buildings underway increasing hanger capacity by approximately 33% which will have a positive impact on leasehold revenue and fuel sales. The hangers will include individual hangers for general aviation as well as box hangers which would be suitable for new businesses at the Airport (key economic development initiative). Staff has begun the process to clear a path for the sale/development of the 84 acres adjacent to the airport which should help ensure the fiscal sustainability well into the future.
Finally, the City has invested significant resources into the delivery of a variety of 29 City Hall
600 Sixth Street
Lincoln, CA 95648
(916) 434‐2400
www.lincolnca.gov
City Manager’s Office Community Development Engineering Fire Information Technology Library Recreation Police Public Works Finance iv
important capital infrastructure projects in virtually all departments. The Capital Engineering department has successfully delivered a large series of road, water, sewer, traffic and park infrastructure designed to upgrade existing facilities or to create new facilities to meet the needs of a growing community, including a large scale solar project designed to lower utility costs to the enterprise and other funds.
Local Economy
The national economy has fluctuated due to a number of factors and some neighboring jurisdictions have experienced a lag in housing starts. While Lincoln did see a slight slowing of permits, the development community remains positive and based on a recent survey Lincoln experienced a significant uptick in housing sales. The large-scale housing projects in Lincoln are on track and anticipate continued growth at a steady pace. Based on a variety of data sources it appears that barring any major economic downtown Lincoln and South Placer will continue to see overwhelming interest from the development community as this region continues to be a very attractive location for new residents to choose to live.
The City continues its conservative approach in revenue and expense forecasting. The City’s property tax revenues remain stable with moderate growth predicted; sales tax has flattened slightly in the last 12 months with overall long-term growth remaining at roughly the same pace as was expected in previous budget cycles.
Retail development is gaining momentum within Lincoln with a groundbreaking of the Ferrari Pavilion retail center and continued development of the 12 Bridges retail and West Lincoln Square. Lincoln is poised on the precipice of sustained retail growth which will have a positive impact on the City’s General Fund.
Long-term Financial Planning
Long-term financial planning continues to be a priority for the City, as we strive to marry our growth planning with responsible financial strategies. The Lincoln community benefits in many ways from the growth it is experiencing (i.e., parks, trails, new stores, new schools, entertainment), but at the same time, Lincoln remains very committed to retaining its community values and heritage. Growth planning and long-term financial strategy must continue to be accompanied by genuine community engagement in the planning process.
City administration has undertaken a renewed effort to ensure that the land use planning process is defined and refined as the community continues to grow and change. This includes re-evaluation of all long-term planning documents that guide the growth within the City such as the General Plan, Specific Plan, the Housing Element and a series of land use policies that are evaluated from time to time.
30 v 31
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lincoln
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
vi 32
CITY OF LINCOLN
CITY OFFICIALS
JUNE 30, 2025
ELECTED OFFICIALS
Mayor Richard Pearl
Mayor Pro Tem Whitney Eklund
Council Member Holly Woods-Andreatta
Council Member Ben Brown
Council Member John Reedy
City Treasurer Gregory E. Kevin
APPOINTED OFFICIALS
City Manager Sean Scully
City Clerk Hope Ithurburn
City Attorney Kristine L. Mollenkopf
DEPARTMENT HEADS
Assistant City Manager/Director of Finance Nita Wracker Director of Community Development Vacant
City Engineer Vin Cay
Director of Public Works Matthew Medill
Chief Innovation and Technology Officer Jennifer Brown
Public Safety Chief Matt Alves
Library Director Kathryn Hunt
This listing has been created for the purpose of this financial statements and as a reference of the structure at the time of production.
vii
33 vii
i
34 FINANCIAL SECTION
35 INDEPENDENT AUDITOR'S REPORT
To the City Council of
the City of Lincoln
Lincoln, 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 Lincoln (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 of Lincoln, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI 36
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance, but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, pension related schedules, and OPEB related schedules as listed in the 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 statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 37 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements 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 accordance with auditing standards generally accepted in the United States of America. 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 auditor's 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 inconsistency 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 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.
Sacramento, California
March 16, 2026
MUNCPAsLLP
38 CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
As Management of the City of Lincoln (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the City’s basic financial statements following this section.
FINANCIAL HIGHLIGHTS
At the end of the fiscal year, the General Fund reported total assets of $47,331,215, total liabilities of $5,215,910, and a total fund balance of $39,506,527. Of the total fund balance, the unassigned fund balance of the General Fund totaled $13,714,390 or 36% of total General Fund expenditures at year-end. The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2025 by $890,117,923 (net position). Of this amount, $630,956,416 is invested in capital assets, net of related debt; $154,048,948 is restricted for debt service, capital projects, insurance, grants, taxes, and fees; and $105,112,559 is unrestricted.
The City’s total net position increased by $11,353,121, of which $7,426,537 is an increase to governmental activities and $3,926,584 an increase to business-type activities. As of June 30, 2025, the City's governmental funds reported combined ending fund balances of $222,460,396, an increase of $39,339,735 from the prior year's balance of $183,120,661. Nonspendable, restricted, committed and assigned fund balances totaled $209,023,477, whereas unassigned fund balance totaled $13,436,919.
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements which comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is strengthening or weakening.
The Statement of Activities presents information showing how the City’s net position changed during the fiscal year.
All changes in net position are reported when 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 items 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 distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works and facilities, culture and recreation, urban redevelopment and housing, as well as education. The business-type activities of the City of Lincoln include water, wastewater, solid waste, airport, and transit.
The Lincoln Public Financing Authority, although legally separate, functions for all practical purposes as a department of the City, and therefore, has been included as an integral part of the primary government. No separate financial statements were issued for the Authority.
The government-wide financial statements can be found on pages 16 - 18 of this report. 4 39
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds used by the City are 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 government-wide financial statements. However, unlike the government-wide financial statements, which focus on the long-term, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near-term capability of maintaining service delivery levels.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with what is presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term funding choices. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains numerous individual governmental funds. Financial data is presented individually for each of the City's major governmental funds in both the governmental fund balance sheet as well as the governmental fund statement of revenues, expenditures, and changes in fund balance. The City's major funds include the General Fund, Public Facility Element (PFE) fund, Water Connections fund, Special Assessment Districts, Development Services fund, and Low/Moderate Income Housing fund. Data for the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 19 - 24 of this report.
Proprietary funds
The City of Lincoln maintains two different types of proprietary funds; Enterprise funds, which are used to account for its water, wastewater, solid waste, airport, and transit activities, and Internal Service funds which are an accounting device used to accumulate and allocate shared costs internally among the City's various functions or departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements.
Whereas internal service funds, which predominantly benefit governmental rather than business-type functions, are included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for its water, wastewater, solid waste, airport, and transit, which are considered to be major funds.
The basic proprietary fund financial statements can be found on pages 25 - 30 of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside of the reporting City government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
The basic fiduciary fund financial statements can be found on pages 31 - 32 of this report. 5 40
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the City's financial statements. Each note is in sequence with the financial statements and can be found on pages 33 - 77 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's pension liability and other post-employment benefits (OPEB) liability. The City adopts an annual appropriated budget for all of its funds. Budgetary information on the City's major governmental funds, which include the General Fund, Public Facility Element (PFE) fund, Water Connections fund, Special Assessment Districts, Development Services fund, and Low/Moderate Income Housing fund can be found on pages 86 - 93. These schedules demonstrate compliance with the adopted budget.
The combining statements referred to earlier in connection with non-major governmental funds, internal service funds, and fiduciary funds are presented immediately following the required supplementary information, which is found on pages 94 - 128.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
A comparative analysis of the government-wide data follows.
Statement of Net Position
As of June 30, 2025 and 2024
(in thousands)
Governmental Activities Business-Type Activities Total Government 2025 2024
Net
Change 2025 2024
Net
Change 2025 2024
Net
Change
ASSETS
Current and other
assets $ 248,894 $ 213,169 $ 35,725 $ 76,571 $ 70,895 $ 5,676 $ 325,465 $ 284,064 $ 41,401 Capital assets 330,713 333,903 (3,190) 325,076 325,942 (866) 655,789 659,845 (4,056) Total Assets 579,607 547,072 32,535 401,647 396,837 4,810 981,254 943,909 37,345
DEFERRED
OUTFLOWS OF
RESOURCES
14,079 18,409 (4,330) 3,918 4,917 (999) 17,997 23,326 (5,329)
LIABILITIES
Long-term liabilities 66,156 56,263 9,893 11,668 11,977 (309) 77,824 68,240 9,584 Other liabilities 16,747 20,953 (4,206) 8,265 7,681 584 25,012 28,634 (3,622) Total Liabilities 82,903 77,216 5,687 19,933 19,658 275 102,836 96,874 5,962
DEFERRED INFLOWS
OF RESOURCES 4,838 6,322 (1,484) 1,459 1,850 (391) 6,297 8,172 (1,875)
NET POSITION
Net investment in
capital assets 306,435 320,892 (14,457) 324,521 325,509 (988) 630,956 646,402 (15,446) Restricted 132,490 93,397 39,093 21,559 20,148 1,411 154,049 113,545 40,504 Unrestricted 67,020 67,654 (634) 38,093 34,589 3,504 105,113 102,243 2,870 Total Net Position $ 505,945 $ 481,943 $ 24,002 $ 384,173 $ 380,246 $ 3,927 $ 890,118 $ 862,190 $ 27,928 By far, the largest portion of the City's net position is unspendable ($630,956,416 or 71%) and reflects its investment in capital assets (e.g. infrastructure, land, buildings, equipment), less any related debt. The City's remaining net position consists of restricted funds of $154,048,948 which are resources subject to external restrictions, and unrestricted net position totaling $105,112,559.
6 41
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Changes in Net Position
As of June 30, 2025 and 2024
(in thousands)
Governmental Activities Business-Type Activities Total Government 2025 2024
Net
Change 2025 2024
Net
Change 2025 2024
Net
Change
REVENUES:
Program Revenues
Charges for services $ 28,407 $ 29,686 $ (1,279) $ 57,802 $ 47,727 $ 10,075 $ 86,209 $ 77,413 $ 8,796 Operating grants and
contributions 13,069 9,094 3,975 826 636 190 13,895 9,730 4,165 Capital grants and
contributions - 2,959 (2,959) 1,510 1,153 357 1,510 4,112 (2,602) General Revenues
Property taxes 16,815 16,535 280 - - - 16,815 16,535 280 Sales taxes 5,451 5,910 (459) 59 61 (2) 5,510 5,971 (461) Franchise taxes 1,033 960 73 - - - 1,033 960 73
Other taxes 412 298 114 - - - 412 298 114
Investment earnings 7,929 5,593 2,336 3,338 2,780 558 11,267 8,373 2,894 Other revenues 987 1,718 (731) 313 1,069 (756) 1,300 2,787 (1,487) Gain (loss) on sale of
asset - - - 19 (106) 125 19 (106) 125
Total Revenues 74,103 72,753 1,350 63,867 53,320 10,547 137,970 126,073 11,897 EXPENSES:
General government 9,472 6,490 2,982 - - - 9,472 6,490 2,982 Public safety 21,694 20,367 1,327 - - - 21,694 20,367 1,327 Public works and
facilities 32,726 34,285 (1,559) - - - 32,726 34,285 (1,559) Culture & recreation 1,677 1,409 268 - - - 1,677 1,409 268 Urban redevelopment
and housing 326 335 (9) - - - 326 335 (9)
Education 1,725 1,385 340 - - - 1,725 1,385 340
Interest 890 430 460 - - - 890 430 460
Water - - - 21,906 19,965 1,941 21,906 19,965 1,941
Wastewater - - - 22,900 16,912 5,988 22,900 16,912 5,988 Solid waste - - - 10,710 9,520 1,190 10,710 9,520 1,190 Airport - - - 1,856 1,799 57 1,856 1,799 57
Transit - - - 644 563 81 644 563 81
Total Expenses 68,510 64,701 3,809 58,016 48,759 9,257 126,526 113,460 13,066 Change in net position
before transfers and
special items 5,593 8,052 (2,459) 5,851 4,561 1,290 11,444 12,613 (1,169) Transfers 1,917 717 1,200 (1,917) (717) (1,200) - - -
Special items - - - - 5 (5) - 5 (5)
Change in net position 7,510 8,769 (1,259) 3,934 3,849 85 11,444 12,618 (1,174) Net Position Beginning,
as restated 498,435 473,174 25,261 380,239 376,397 3,842 878,674 849,571 29,103 Net Position Ending $ 505,945 $ 481,943 $ 24,002 $ 384,173 $ 380,246 $ 3,927 $ 890,118 $ 862,189 $ 27,929 Governmental activities increased the City's net position by $7,426,537 and business-type activities increased the City's net position by $3,926,584. Total net position increased by $11,353,121, or 3% over the prior year. 7 42
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental Activities
Governmental activities increased the City's net position by $7,426,537 or 1% as of June 30, 2025.
Key elements for the changes in revenues and expenses for governmental activities are as follows:
Charges for services decreased $1.2 million primarily due to a decrease in the number of new residential construction permits issued.
Operating grants and contributions increased $3.9 million primarily due to usage of COVID-19 relief funds. Capital grants and contributions decreased $2.9 million primarily due to one-time grant funding for the Joiner Parkway Repaving project.
Interest and investment earnings increased $2.3 million primarily as a result of changes in market values. General government expenses increased $2.9 million primarily due to expenditure of COVID-19 relief funds.
The following charts show governmental activities revenues by source and expenses by function.
8 43
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Business-type activities increased the City's net position by $3,926,584 or 0.5% as of June 30, 2025.
Key elements accounting for the changes in revenues and expenses for business-type activities are as follows:
The largest factor in the increase was the increase in rates during the fiscal year. Wastewater expenses increased $5.9 million primarily due to increased charges for the wastewater treatment plant.
Water expenses increased $1.9 million primarily due to an increase in the cost of water purchases. 9 44
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
The following charts show business-type activities revenues by sources and expenses by enterprise:
10 45
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Each fund functions as its own entity with its own set of financial statements for analyses of revenues, expenses, assets, liabilities, and fund balance.
Under Governmental Accounting Standards Board Statement No. 54, fund balances are classified as nonspendable, restricted, committed, assigned, and unassigned. Nonspendable fund balances are amounts that are inherently nonspendable, i.e. cannot be spent because of their form or because they must be maintained intact. Restricted fund balances are amounts with externally enforceable limitations on use, such as limitations imposed by creditors or grantors, and limitations imposed by other governments. Committed fund balances are amounts that can only be used for the specific purposes determined by formal action of the City's highest level of decision making authority (the City Council). Assigned fund balances are amounts constrained by the City's intent to be used for specific purposes. Unassigned fund balances, the residual net resources, are the amounts in excess of nonspendable, restricted, committed, and assigned amounts. Negative fund balances are included in the unassigned fund balance category.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of resources. Such information is useful in assessing the City’s current resources available for service delivery.
At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $222,460,396, an increase of $39,339,735, or 12% over the prior year balance. The increased fund balance is the result of revenues and contributions from property owners exceeding expenditures and net transfers out. When comparing total revenues and expenditures against the prior year, net revenues increased.
Nonspendable fund balances totaled $47,414,313, restricted fund balances totaled $132,133,775, committed fund balances totaled $7,770,504, assigned fund balances totaled $21,704,885, and unassigned fund balances totaled $13,436,919. The General Fund has a positive unassigned fund balance of $13,714,390. The Federal Grants fund has a negative unassigned fund balance of $272,561 which is unchanged from the prior year. The accumulated negative fund balance in the Federal Grants fund is the result of delayed grant reimbursements, which were subsequently received in the next fiscal year.
The following discussion touches on each of the five major governmental funds.
General Fund
The General Fund is the chief operating fund of the City. Fiscal year 2024-25 increased the City's General Fund balance by $9,185,903 to an ending fund balance of $39,506,527. The unassigned fund balance of the General Fund was $13,714,390. The committed fund balance at year-end was $7,770,504 which contains reserves of $6,760,956 for operating and $1,009,548 for capital replacement. The nonspendable fund balance at year-end of $6,400,919 is invested in the City's insurance programs with a JPA - Northern California Cities Self-Insurance Fund and an interfund advance to the Airport enterprise fund of $4,675,090.
General Fund expenditures exceeded revenues by $3,314,334 while other financing sources (uses) resulted in an increase of $12,500,237 thus resulting in a year-end gain of $9,185,903. This gain is primarily due to the inception of a lease for the solar project.
As a measure of the General Fund's liquidity, it may be useful to compare the unassigned fund balance to total fund expenditures. Including sources and uses, the unassigned fund balance represents 36% of total General Fund expenditures, up from 58% in the prior year.
11 46
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
The following table provides a two-year comparison of revenues by source and expenditures by function.
Accompanying the tables are brief explanations of significant changes.
Revenues Classified by Source
General Fund
For the Years Ended June 30, 2025 and 2024
2025 2024 Increase (Decrease)
Amount % of Total Amount % of Total Amount Percent
Taxes and assessments $ 23,711,392 50.3 % $ 23,703,497 76.6 % $ 7,895 - % Licenses and permits 1,686,404 3.6 % 1,515,701 4.9 % 170,703 11.3 % Intergovernmental 4,219,817 8.9 % 2,166,561 7.0 % 2,053,256 94.8 % Fines and forfeitures 117,130 0.2 % 86,422 0.3 % 30,708 35.5 % Use of money and
property 1,499,836 3.2 % 819,207 2.7 % 680,629 83.1 %
Charges for services 3,150,243 6.7 % 2,513,314 8.1 % 636,929 25.3 % Other revenues 551,391 1.2 % 25,709 0.1 % 525,682 2,044.7 % Inception of financed
purchases and leases 12,241,633 25.9 % - - % 12,241,633 100.0 % Inception of SBITA - - % 80,118 0.3 % (80,118) (100.0)% $ 47,177,846 100.0 % $ 30,910,529 100.0 % $ 16,267,317 52.6 % Total General Fund revenues increased by $16,267,317 or 52.6% from the prior fiscal year and are driven by a combination of factors:
Intergovernmental revenues increased by $2,053,256 or 95% as a result of COVID-19 pandemic relief funds received in the previous year.
Use of money and property increased by $680,629 or 83% because market value increases during the year. Charges for services increased by $636,929 or 25% resulting largely from mutual aid.
Expenditures by Function
General Fund
For the Years Ended June 30, 2025 and 2024
2025 2024 Increase (Decrease)
Amount % of Total Amount % of Total Amount Percent
General government $ 8,550,322 22.4 % $ 5,685,860 19.2 % $ 2,864,462 50.4 % Public safety 18,772,450 49.1 % 17,132,549 57.8 % 1,639,901 9.6 % Public works & facilities 2,004,310 5.2 % 2,962,667 10.0 % (958,357) (32.3)% Culture & recreation 1,569,842 4.1 % 1,344,285 4.5 % 225,557 16.8 % Urban development &
housing 341,584 0.9 % 279,913 0.9 % 61,671 22.0 %
Education 1,151,961 3.0 % 842,211 2.8 % 309,750 36.8 %
Capital outlay 5,250,895 13.7 % 1,167,689 3.9 % 4,083,206 349.7 % Debt principal 300,015 0.8 % 232,875 0.8 % 67,140 28.8 % Debt interest 309,168 0.8 % 30,772 0.1 % 278,396 904.7 % $ 38,250,547 100.0 % $ 29,678,821 100.0 % $ 8,571,726 28.9 % The above General Fund expenditures remain categorically consistent and increased by $8,571,726 or 29% from the prior fiscal year primarily due to rising salary, benefit, and retirement costs, as well as increased insurance costs. 12 47
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Public Facility Element (PFE) Fund
The PFE funds are collected with the issuance of building permits and are used by the City to fund infrastructure projects and public facilities. The City's PFE funds include: transportation, drainage, parks, and community services for police, fire, administration, and the library. Development activity in Lincoln has experienced a renewed development interest during the past 3 years which has led to increased revenue and fund balance.
The PFE fund has a total fund balance of $50,364,122 at the end of the fiscal year. This is improvement from the fund balance of $35,907,413 as of June 30, 2024 and is the result of revenue receipts in excess of expenses during the year for all PFE funds with the exception of the Library PFE along with a reimbursement from bond proceeds held in the custodial funds for expenditures incurred in prior years.
Water Connections Fund
This fund is used to account for water connection fees collected from developers and property owners that are required by the California Government Code to be expended for capacity expansion. The fund balance of the Water Connections fund at the end of the fiscal year was $66,948,122, or an increase of 8% from prior fiscal year.
Special Assessment Districts Fund
This fund is used to account for resources received to provide improvements and maintenance to public property within a district. The fund balance of the Special Assessment Districts fund at the end of the fiscal year was $19,516,809, or an increase of 16% from prior fiscal year.
Development Services Fund
This fund is used to account for monies received in relation to property development and other projects within the City. Ending fund balance totaled $21,749,848, or an increase of 11% from prior fiscal year.
Low/Moderate Income Housing Fund
This fund is used to account for the housing loans established as part of the former Redevelopment Agency of the City of Lincoln. Ending fund balance totaled $1,804,626.
GENERAL FUND BUDGETARY HIGHLIGHTS
Each year, the City develops the annual budget for revenues and expenditures using a realistic, but conservative methodology based upon the best information available at that time. During the course of the fiscal year, the City Council is presented with financial status reports and approves amendments to budgeted revenue and expenditure projections as needed, so as to ensure that the City's budget continuously provides an accurate measurement of available fiscal resources to achieve the City Council priorities.
The final General Fund budget for the fiscal year ending June 30, 2025 projected revenue of $36,676,098 and expenditures of $43,189,812, and a decrease in fund balance of $6,513,714. The General Fund's actual performance for the year however, ended with revenues totaling $34,936,213 or $1,739,885 less than projected and expenditures totaling $38,250,547, or $4,939,265 less than budgeted, resulting in an annual operating surplus of $3,314,334.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets include construction in progress, land, buildings and facilities, machinery and equipment, park facilities, and roads. As of June 30, 2025, the City's total investment in capital assets for its governmental and business-type activities totaled $655,789,597 (net of accumulated depreciation/amortization) which decreased from the prior fiscal year by $4,055,006 or 0.6%, which is the result of current year annual depreciation exceeding asset investments.
13 48
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
CAPITAL ASSETS (NET OF DEPRECIATION)
Governmental Activities Business-type Activities Total
2025 2024 2025 2024 2025 2024
Land and easements $ 14,788,994 $ 14,712,994 $ 1,591,640 $ 1,591,640 $ 16,380,634 $ 16,304,634 Construction in progress 18,762,110 7,669,709 14,341,508 6,349,293 33,103,618 14,019,002 Buildings & improvements 68,846,255 71,395,856 10,450,749 10,995,891 79,297,004 82,391,747 Machinery & equipment 3,250,327 3,486,974 6,891,503 6,670,124 10,141,830 10,157,098 Infrastructure 223,786,899 236,062,669 291,536,076 299,997,607 515,322,975 536,060,276 Lease assets - vehicles 696,292 - - - 696,292 -
Subscription assets 582,472 574,864 264,772 336,982 847,244 911,846 Total $330,713,349 $333,903,066 $325,076,248 $325,941,537 $655,789,597 $659,844,603 Governmental activities decreased by $3,189,717 or 1.0% and business-type activities decreased by 865,289 or
0.3%. Additional information on the City's capital assets can be found in Note 6 of this report.
Long-term Debt
As of June 30, 2025, the City of Lincoln had total debt outstanding of $28,232,611. This amount is comprised of $10,668,780 in bond debt, $12,170,621 in financed purchases, $611,598 in leases, $722,910 in subscription liabilities, and $4,058,702 in compensated absences.
CITY'S OUTSTANDING DEBT
Governmental Activities Business-type Activities Total
2025 2024 2025 2024 2025 2024
Bonds, net $ 10,668,780 $ 11,813,785 $ - $ - $ 10,668,780 $ 11,813,785 Financed purchases 12,170,621 670,001 - - 12,170,621 670,001 Lease liability 611,598 - - - 611,598 -
Subscription liability 504,831 534,138 218,079 273,931 722,910 808,069 Compensated absences 3,362,698 3,237,226 696,004 538,037 4,058,702 3,775,263 Total $ 27,318,528 $ 16,255,150 $ 914,083 $ 811,968 $ 28,232,611 $ 17,067,118 The City's total debt increased by $11,165,493 or 65% during the fiscal year primarily due to the issuance of financed purchases and continuance of scheduled debt service payments. Additional information about the City’s long-term debt can be found in Note 8 to the financial statements.
City's Pension and OPEB Liabilities
Governmental Activities Business-type Activities Total
2025 2024 2025 2024 2025 2024
Net pension liability $ 24,249,982 $ 24,753,668 $ 6,898,087 $ 7,060,443 $ 31,148,069 $ 31,814,111 Net OPEB liability 18,957,904 19,389,198 4,478,885 4,590,783 23,436,789 23,979,981 Total $ 43,207,886 $ 44,142,866 $ 11,376,972 $ 11,651,226 $ 54,584,858 $ 55,794,092 The City's net pension liability and net OPEB liability decreased by $1,209,234 or 2%. Additional information on the City's net pension liability and net OPEB obligation can be found in notes 12 and 13, respectively. 14 49
CITY OF LINCOLN
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
New residential and commercial construction within the City follows the conservative assumptions used in revenue forecasting, which has resulted in continued strength in the local economy. The City's property tax revenue remains stable with moderate growth predicted, similarly sales tax has remained generally stable although this is likely somewhat related to inflation versus increased spending.
REQUESTS FOR INFORMATION
This financial statement is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have any questions about this report or need additional financial information, please contact the Administrative Services Department, City of Lincoln, 600 Sixth Street, Lincoln, CA 95648. 15 50
CITY OF LINCOLN
STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental
Activities
Business-Type
Activities Total
ASSETS
Cash and investments (Note 2) $ 176,276,917 $ 72,345,356 $ 248,622,273 Accounts receivable, net 1,003,358 8,255,100 9,258,458
Interest receivable 169,216 71,598 240,814
Taxes receivable 775,102 1,742 776,844
Intergovernmental receivables 1,790,830 - 1,790,830
Leases receivable (Note 3) 2,514,998 423,979 2,938,977
Prepaid items 41,860,507 259,161 42,119,668
Inventory - 59,564 59,564
Internal balances 4,845,651 (4,845,651) -
Advances to Successor Agency (Note 18) 2,089,476 - 2,089,476 Restricted cash and cash equivalents (Note 2) 11,636,955 - 11,636,955 Loans receivable, net of allowance (Note 4) 5,931,344 - 5,931,344 Capital assets (Note 6)
Land and construction in progress 33,551,104 15,933,148 49,484,252 Other capital assets, net of depreciation 297,162,245 309,143,100 606,305,345 Total capital assets 330,713,349 325,076,248 655,789,597 Total Assets 579,607,703 401,647,097 981,254,800
Deferred Outflows of Resources
Changes in the net pension liability (Note 12) 8,830,468 2,529,093 11,359,561 Changes in net OPEB liability (Note 13) 5,248,128 1,389,000 6,637,128 Total Deferred Outflows of Resources 14,078,596 3,918,093 17,996,689
LIABILITIES
Accounts payable 5,743,739 5,465,900 11,209,639
Accrued payroll and benefits 1,390,214 336,189 1,726,403 Accrued liabilities 129,425 - 129,425
Accrued interest payable 311,572 - 311,572
Retention payable 322,275 336,816 659,091
Deposits payable 2,648,645 1,342,131 3,990,776
Unearned revenue (Note 7) 1,830,263 161,277 1,991,540
Net pension liability (Note 12)
Due in more than one year 24,249,982 6,898,087 31,148,069 Other postemployment benefits (Note 13)
Due in more than one year 18,957,904 4,478,885 23,436,789 Accrued compensated absences (Note 8):
Due within one year 2,690,158 556,803 3,246,961
Due in more than one year 672,540 139,201 811,741
Long-term liabilities (Note 8):
Due within one year 1,680,512 66,026 1,746,538
Due in more than one year 22,275,318 152,053 22,427,371 Total Liabilities 82,902,547 19,933,368 102,835,915
DEFERRED INFLOWS OF RESOURCES
Changes in the net pension liability (Note 12) 514,977 340,433 855,410 Changes in net OPEB liability (Note 13) 1,714,676 705,217 2,419,893 Leases (Note 3) 2,608,778 413,570 3,022,348
Total Deferred Inflows of Resources 4,838,431 1,459,220 6,297,651 See accompanying notes to the basic financial statements. 16 51
CITY OF LINCOLN
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2025
Governmental
Activities
Business-Type
Activities Total
NET POSITION
Net investment in capital assets 306,435,245 324,521,171 630,956,416 Restricted for:
Debt service 2,223,732 - 2,223,732
Capital projects 10,784,916 - 10,784,916
Grants 51,476 - 51,476
Loan programs and housing 4,698,484 - 4,698,484
Assessments and fees 60,083,425 - 60,083,425
Public facility element 50,364,122 21,558,514 71,922,636 Pension 3,695,412 - 3,695,412
Endowments
Nonexpendable 356,659 - 356,659
Expendable 232,208 - 232,208
Unrestricted 67,019,642 38,092,917 105,112,559
Total Net Position $ 505,945,321 $ 384,172,602 $ 890,117,923 See accompanying notes to the basic financial statements. 17 52
CITY OF LINCOLN
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Program Revenues Net (Expense) Revenue and Change in Net Position Primary Government
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-Type
Activities
Total Primary
Government
PRIMARY GOVERNMENT
Governmental activities:
General government $ 9,472,027 $ 2,887,138 $ 1,623,035 $ - $ (4,961,854) $ - $ (4,961,854) Public safety 21,693,685 1,769,744 4,170,026 - (15,753,915) - (15,753,915) Public works and facilities 32,726,000 21,306,466 7,026,159 - (4,393,375) - (4,393,375) Culture and recreation 1,676,854 2,313,254 - - 636,400 - 636,400 Urban redevelopment and housing 326,385 27,393 249,653 - (49,339) - (49,339) Education 1,724,863 102,891 - - (1,621,972) - (1,621,972) Interest 889,696 - - - (889,696) - (889,696)
Total governmental activities 68,509,510 28,406,886 13,068,873 - (27,033,751) - (27,033,751) Business-type activities:
Water 21,906,341 25,731,822 1,696 670,681 - 4,497,858 4,497,858 Wastewater 22,899,722 18,822,587 631 611,842 - (3,464,662) (3,464,662) Solid waste 10,710,546 11,329,387 200,242 227,497 - 1,046,580 1,046,580 Airport 1,855,664 1,918,531 28,053 - - 90,920 90,920
Transit 643,806 - 594,949 - - (48,857) (48,857)
Total business-type activities 58,016,079 57,802,327 825,571 1,510,020 - 2,121,839 2,121,839 Total primary government $ 126,525,589 $ 86,209,213 $ 13,894,444 $ 1,510,020 (27,033,751) 2,121,839 (24,911,912) General revenues:
Taxes:
Property taxes 16,815,190 - 16,815,190
Sales and use taxes 5,451,537 58,285 5,509,822
Franchise taxes 1,033,136 - 1,033,136
Other taxes 411,529 - 411,529
Interest and investment earnings 7,928,774 3,338,465 11,267,239 Gain on disposal of capital assets - 19,169 19,169
Other revenue 987,454 312,593 1,300,047
Transfers 1,916,566 (1,916,566) -
Total general revenues and transfers 34,544,186 1,811,946 36,356,132 Change in net position 7,510,435 3,933,785 11,444,220
Net position - July 1, 2024 481,943,063 380,246,018 862,189,081 Change in accounting principle (Note 19) (83,898) (7,201) (91,099) Prior period restatement (Note 19) 16,575,721 - 16,575,721 Net position - July 1, 2024, restated 498,434,886 380,238,817 878,673,703 Net position - June 30, 2025 $ 505,945,321 $ 384,172,602 $ 890,117,923 See accompanying notes to the basic financial statements. 18 53
CITY OF LINCOLN
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
General
Fund
Public Facility
Element (PFE)
Water
Connections
Special
Assessment
Districts
ASSETS
Cash and investments $ 23,880,536 $ 52,768,524 $ 23,436,194 $ 20,117,726 Accounts receivable 706,408 - 5,018 26,730
Interest receivable 24,818 54,066 23,395 13,468
Taxes receivable 553,316 - - 221,786
Intergovernmental receivable 1,116,641 10,457 - -
Leases receivable 2,514,998 - - -
Due from other funds 512,865 - - -
Prepaid items 1,725,829 - 40,000,000 35,760
Advances to other funds 4,675,090 - 1,394,039 -
Advances to Successor Agency - - 2,089,476 -
Restricted cash and investments 11,620,714 - - -
Loans receivable, net - - - -
Total Assets $ 47,331,215 $ 52,833,047 $ 66,948,122 $ 20,415,470
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 2,114,383 $ 672,191 $ - $ 810,609
Accrued payroll and benefits 942,824 - - 59,863
Accrued liabilities 98,546 - - -
Retention payable 209,644 46,301 - 1,158
Deposits and other payables 20,250 - - 27,031
Due to other funds - - - -
Advances from other funds - 1,750,433 - -
Unearned revenue 1,830,263 - - -
Total Liabilities 5,215,910 2,468,925 - 898,661
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Leases 2,608,778 - - -
Total Deferred Inflows of Resources 2,608,778 - - -
FUND BALANCES
Nonspendable 6,400,919 - 40,000,000 35,760
Restricted 11,620,714 50,364,122 26,948,122 19,481,049
Committed 7,770,504 - - -
Assigned - - - -
Unassigned 13,714,390 - - -
Total Fund Balances 39,506,527 50,364,122 66,948,122 19,516,809 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 47,331,215 $ 52,833,047 $ 66,948,122 $ 20,415,470 See accompanying notes to the basic financial statements. 19 54
CITY OF LINCOLN
BALANCE SHEET (continued)
GOVERNMENTAL FUNDS
JUNE 30, 2025
Development
Services
Low/Moderate
Income
Housing
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments $ 25,449,270 $ 1,802,804 $ 22,884,041 $ 170,339,095 Accounts receivable 209,236 - 23,808 971,200
Interest receivable 26,154 1,822 19,230 162,953
Taxes receivable - - - 775,102
Intergovernmental receivable 173,892 - 489,840 1,790,830 Leases receivable - - - 2,514,998
Due from other funds - - - 512,865
Prepaid items 44,963 - 49,057 41,855,609
Advances to other funds - - 526,955 6,596,084
Advances to Successor Agency - - - 2,089,476
Restricted cash and investments - - 16,241 11,636,955
Loans receivable, net - 3,979,969 1,951,375 5,931,344
Total Assets $ 25,903,515 $ 5,784,595 $ 25,960,547 $ 245,176,511
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 1,205,817 $ - $ 595,742 $ 5,398,742
Accrued payroll and benefits 108,571 - 68,755 1,180,013 Accrued liabilities 28,308 - 2,571 129,425
Retention payable - - 65,172 322,275
Deposits and other payables 2,601,364 - - 2,648,645
Due to other funds - - 512,865 512,865
Advances from other funds - - - 1,750,433
Unearned revenue - - - 1,830,263
Total Liabilities 3,944,060 - 1,245,105 13,772,661
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 209,607 3,979,969 2,145,100 6,334,676 Leases - - - 2,608,778
Total Deferred Inflows of Resources 209,607 3,979,969 2,145,100 8,943,454
FUND BALANCES
Nonspendable 44,963 - 932,671 47,414,313
Restricted - 1,804,626 21,915,142 132,133,775
Committed - - - 7,770,504
Assigned 21,704,885 - - 21,704,885
Unassigned - - (277,471) 13,436,919
Total Fund Balances 21,749,848 1,804,626 22,570,342 222,460,396 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 25,903,515 $ 5,784,595 $ 25,960,547 $ 245,176,511 See accompanying notes to the basic financial statements. 20 55
CITY OF LINCOLN
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Total fund balances of governmental funds $ 222,460,396 Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds, net of accumulated depreciation of $319,972,540. 328,237,878
Certain notes, loans, and interest receivables are not available to pay for current period expenditures and therefore are offset by deferred inflow of resources in the governmental funds. 5,931,344
Other long-term assets are not available to pay for current period expenditures and therefore, are reported as unavailable revenues in the governmental funds. 403,332 Deferred outflows of resources related to changes in the net pension liability are not applicable to the current period. 8,830,468
Deferred outflows of resources related to changes in the net OPEB liability are not applicable to the current period. 5,248,128
Long-term liabilities are not due in the current period and, therefore are not reported in the governmental funds.
Net pension liability (24,249,982)
Net OPEB liability (18,957,904)
Compensated absences (2,805,009)
Long-term liabilities net of premiums and discounts (23,466,388) Deferred inflows related to changes in the net pension liability (514,977) Deferred inflows related to changes in the net OPEB liability (1,714,676) Accrued interest payable from the current portion of interest due on long-term liabilities has not been reported in the governmental funds. (311,572) Internal service funds are used by management to charge costs of certain activities such as equipment replacement, to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities of the Statement of Net Position. 6,854,283
Net position of governmental activities $ 505,945,321
See accompanying notes to the basic financial statements. 21 56
CITY OF LINCOLN
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
General Fund
Public Facility
Element (PFE)
Water
Connections
Special
Assessment
Districts
REVENUES
Taxes and assessments $ 23,711,392 $ - $ - $ -
Special assessments - - - 8,333,433
License and permits 1,686,404 - - -
Intergovernmental 4,219,817 - - 520
Fines and forfeitures 117,130 - - -
Use of money and property 1,499,836 2,186,755 961,369 837,666 Charges for services 3,150,243 4,370,569 4,095,416 -
Other revenues 551,391 24,780 - 183,827
Total Revenues 34,936,213 6,582,104 5,056,785 9,355,446
EXPENDITURES
Current:
General government 8,550,322 - - 7,149
Public safety 18,772,450 - - 335,106
Public works and facilities 2,004,310 174,175 8,829 6,292,993 Cultural and recreation 1,569,842 - - -
Urban development and housing 341,584 - - -
Education 1,151,961 80,283 - -
Capital outlay 5,250,895 3,782,850 - 780,654
Debt service:
Principal 300,015 - - 19,616
Interest and fiscal charges 309,168 17,687 - 2,184
Total Expenditures 38,250,547 4,054,995 8,829 7,437,702 Excess (Deficiency) of Revenues over
Expenditures (3,314,334) 2,527,109 5,047,956 1,917,744
OTHER FINANCING SOURCES (USES)
Inception of financed purchases and
leases 12,241,633 - - 47,910
Transfers in 1,745,854 - - 931,034
Transfers out (1,487,250) (1,234) - (202,012)
Total Other Financing Sources (Uses) 12,500,237 (1,234) - 776,932 Net Change in Fund Balances 9,185,903 2,525,875 5,047,956 2,694,676 Fund Balances - July 1, 2024 30,362,671 35,907,413 57,213,232 16,822,133 Prior period restatement (Note 19) (42,047) 11,930,834 4,686,934 - Fund Balances - July 1, 2024, restated 30,320,624 47,838,247 61,900,166 16,822,133 Fund Balances - June 30, 2025 $ 39,506,527 $ 50,364,122 $ 66,948,122 $ 19,516,809 See accompanying notes to the basic financial statements. 22 57
CITY OF LINCOLN
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Development
Services
Low/Moderate
Income
Housing
Other
Governmental
Funds
Total
Governmental
Funds
REVENUES
Taxes and assessments $ - $ - $ - $ 23,711,392
Special assessments - - - 8,333,433
License and permits 3,934,899 - - 5,621,303
Intergovernmental 307,495 - 8,512,661 13,040,493
Fines and forfeitures - - - 117,130
Use of money and property 1,155,149 80,355 828,197 7,549,327 Charges for services 2,479,967 - 252,949 14,349,144
Other revenues 74,190 - 29,223 863,411
Total Revenues 7,951,700 80,355 9,623,030 73,585,633
EXPENDITURES
Current:
General government 304,300 - 436,117 9,297,888
Public safety 121,266 - 195,284 19,424,106
Public works and facilities 5,124,545 841 3,616,405 17,222,098 Cultural and recreation - - - 1,569,842
Urban development and housing - - - 341,584
Education - - - 1,232,244
Capital outlay - - 4,038,830 13,853,229
Debt service:
Principal 50,136 - 1,126,936 1,496,703
Interest and fiscal charges 2,381 - 391,179 722,599
Total Expenditures 5,602,628 841 9,804,751 65,160,293
Excess (Deficiency) of Revenues over
Expenditures 2,349,072 79,514 (181,721) 8,425,340
OTHER FINANCING SOURCES (USES)
Inception of financed purchases and
leases - - 132,565 12,422,108
Transfers in - - 1,351,955 4,028,843
Transfers out (172,063) - (249,718) (2,112,277)
Total Other Financing Sources (Uses) (172,063) - 1,234,802 14,338,674 Net Change in Fund Balances 2,177,009 79,514 1,053,081 22,764,014 Fund Balances - July 1, 2024 19,572,839 1,725,112 21,517,261 183,120,661 Prior period restatement (Note 19) - - - 16,575,721
Fund Balances - July 1, 2024, restated 19,572,839 1,725,112 21,517,261 199,696,382 Fund Balances - June 30, 2025 $ 21,749,848 $ 1,804,626 $ 22,570,342 $ 222,460,396 See accompanying notes to the basic financial statements. 23 58
CITY OF LINCOLN
RECONCILIATION OF THE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the change in fund balances - total governmental funds to the change in net position of governmental activities:
Net change in fund balances - total governmental funds $ 22,764,014 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets are capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital asset purchases 13,818,732
Depreciation expense (17,466,847)
Some revenues reported in the Statement of Activities will not be collected for several months after the City's year-end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds. Some revenues reported in the prior year Statement of Activities were recognized in the governmental funds in the current year. This is the net change in revenues. (8,444) Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Debt principal payments 1,496,703
Proceeds from financed purchase (11,682,638)
Proceeds from leases (739,468)
Net accretion on bond premiums/discounts 60,005
Compensated absences expenditures reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in a governmental fund. This is the net change in compensated absences for the current period. (146,478)
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenue and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the Statement of Net Position.
Loan program receipts (14,129)
Accrued interest on loans 126,196
Accrued interest payable is interest due on long-term liabilities. This is the net change in accrued interest in the current period. (207,620)
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 governmental funds.
Pension expense related to deferred outflows and inflows of resources (1,392,464) OPEB expense related to deferred outflows and inflows of resources (646,852) Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement, to individual funds. The net revenue (expense) of the internal service funds is reported with the governmental funds. 1,549,725 Change in net position of governmental activities $ 7,510,435 See accompanying notes to the basic financial statements. 24 59
CITY OF LINCOLN
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
Business-Type Activities
Major Funds
Water Wastewater Solid Waste Airport
ASSETS
Current Assets
Cash and investments $ 36,533,820 $ 17,999,678 $ 15,633,131 $ 1,119,536 Accounts receivable, net 3,821,253 2,699,808 1,726,390 7,649 Interest receivable 34,897 19,804 16,060 49
Taxes receivable - - - 1,742
Leases receivable - current - - - 57,516
Prepaid items 86,803 90,550 69,318 12,490
Inventory - - - 59,564
Total Current Assets 40,476,773 20,809,840 17,444,899 1,258,546 Non Current Assets
Leases receivable - noncurrent - - - 366,463
Advances to other funds - - 356,394 -
Capital assets, net of accumulated
depreciation 164,002,768 147,374,238 8,053,460 5,222,733 Total Non-Current Assets 164,002,768 147,374,238 8,409,854 5,589,196 Total Assets 204,479,541 168,184,078 25,854,753 6,847,742
DEFERRED OUTFLOWS OF RESOURCES
Changes in net pension liability 806,889 563,462 915,751 135,996 Changes in net OPEB liability 487,053 383,234 418,040 53,614 Total Deferred Outflows of Resources 1,293,942 946,696 1,333,791 189,610
LIABILITIES
Current Liabilities
Accounts payable 3,823,667 617,433 425,451 89,695
Accrued salaries and benefits 103,482 82,267 141,670 7,893 Retention payable 250,461 51,131 35,224 -
Deposits payable 81,000 1,170,677 - 90,454
Unearned revenue - - 115,903 45,374
Compensated absences - current 186,632 125,877 221,435 21,653 Lease payable - current - - - -
SBITA payable - current 27,086 22,118 15,020 1,802
Total Current Liabilities 4,472,328 2,069,503 954,703 256,871 Non-Current Liabilities
Advances from other funds - - - 5,202,045
Compensated absences - noncurrent 46,658 31,469 55,359 5,413 Lease payable - noncurrent - - - -
SBITA payable - noncurrent 62,376 50,937 34,591 4,149
Net pension liability 2,128,332 1,507,074 2,473,347 431,852 Net OPEB liability 1,362,062 1,216,184 1,506,811 208,004 Total Non-Current Liabilities 3,599,428 2,805,664 4,070,108 5,851,463 Total Liabilities 8,071,756 4,875,167 5,024,811 6,108,334
DEFERRED INFLOWS OF RESOURCES
Changes in net pension liability 137,625 147,533 24,438 16,546 Changes in net OPEB liability 240,035 208,471 235,692 16,629 Leases - - - 413,570
Total Deferred Inflows of Resources 377,660 356,004 260,130 446,745
NET POSITION
Net investment in capital assets 163,662,665 147,250,051 7,968,623 5,216,782 Restricted for public facility element 13,791,493 3,284,303 4,482,718 - Unrestricted 19,869,909 13,365,249 9,452,262 (4,734,509) Total Net Position $ 197,324,067 $ 163,899,603 $ 21,903,603 $ 482,273 See accompanying notes to the basic financial statements. 25 60
CITY OF LINCOLN
STATEMENT OF NET POSITION (continued)
PROPRIETARY FUNDS
JUNE 30, 2025
Business-Type Activities
Governmental
Activities
Major Funds
Transit Total
Internal Service
Funds
ASSETS
Current Assets
Cash and investments $ 1,059,191 $ 72,345,356 $ 5,937,822 Accounts receivable, net - 8,255,100 32,158
Interest receivable 788 71,598 6,263
Taxes receivable - 1,742 -
Leases receivable - current - 57,516 -
Prepaid items - 259,161 4,898
Inventory - 59,564 -
Total Current Assets 1,059,979 81,050,037 5,981,141
Non Current Assets
Leases receivable - noncurrent - 366,463 -
Advances to other funds - 356,394 -
Capital assets, net of accumulated
depreciation 423,049 325,076,248 2,475,471
Total Non-Current Assets 423,049 325,799,105 2,475,471
Total Assets 1,483,028 406,849,142 8,456,612
DEFERRED OUTFLOWS OF RESOURCES
Changes in net pension liability 106,995 2,529,093 -
Changes in net OPEB liability 47,059 1,389,000 -
Total Deferred Outflows of Resources 154,054 3,918,093 -
LIABILITIES
Current Liabilities
Accounts payable 509,654 5,465,900 344,997
Accrued salaries and benefits 877 336,189 210,201
Retention payable - 336,816 -
Deposits payable - 1,342,131 -
Unearned revenue - 161,277 -
Compensated absences - current 1,206 556,803 446,151
Lease payable - current - - 7,789
SBITA payable - current - 66,026 171,517
Total Current Liabilities 511,737 8,265,142 1,180,655
Non-Current Liabilities
Advances from other funds - 5,202,045 -
Compensated absences - noncurrent 302 139,201 111,538
Lease payable - noncurrent - - 30,216
SBITA payable - noncurrent - 152,053 279,920
Net pension liability 357,482 6,898,087 -
Net OPEB liability 185,824 4,478,885 -
Total Non-Current Liabilities 543,608 16,870,271 421,674 Total Liabilities 1,055,345 25,135,413 1,602,329
DEFERRED INFLOWS OF RESOURCES
Changes in net pension liability 14,291 340,433 -
Changes in net OPEB liability 4,390 705,217 -
Leases - 413,570 -
Total Deferred Inflows of Resources 18,681 1,459,220 -
NET POSITION
Net investment in capital assets 423,050 324,521,171 1,986,029 Restricted for public facility element - 21,558,514 -
Unrestricted 140,006 38,092,917 4,868,254
Total Net Position $ 563,056 $ 384,172,602 $ 6,854,283
See accompanying notes to the basic financial statements. 26 61
CITY OF LINCOLN
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Major Funds
Water Wastewater Solid Waste Airport
OPERATING REVENUES
Charges for services $ 25,684,222 $ 18,822,587 $ 11,329,387 $ 1,918,531 Connection fees 47,600 - - -
Other revenue 127,077 145,851 27,966 1,352
Total Operating Revenue 25,858,899 18,968,438 11,357,353 1,919,883
OPERATING EXPENSES
Salaries and benefits 2,707,590 2,257,653 3,723,460 355,635 Services and supplies 13,988,830 13,989,972 5,252,746 1,021,930 Support services 1,218,816 1,267,416 977,748 172,092
Depreciation 3,988,507 5,382,559 755,151 206,817
Total Operating Expenses 21,903,743 22,897,600 10,709,105 1,756,474 Operating Income (Loss) 3,955,156 (3,929,162) 648,248 163,409
NON-OPERATING REVENUES (EXPENSES)
Taxes - - - 58,285
Intergovernmental 1,696 631 200,242 28,053
Interest income 1,583,836 942,054 724,428 52,381
Other non-operating revenues 5,623 4,724 - -
Gain on sale of capital assets - 19,169 - -
Interest expense (2,598) (2,122) (1,441) (99,190)
Total Non-Operating Revenues
(Expenses) 1,588,557 964,456 923,229 39,529
Income (Loss) Before Transfers and
Contributions 5,543,713 (2,964,706) 1,571,477 202,938
TRANSFERS AND CONTRIBUTIONS
Capital connection fees 670,681 611,842 227,497 -
Transfers out (618,754) (406,764) (796,543) (94,407)
Total Transfers and Contributions 51,927 205,078 (569,046) (94,407) Change in net position 5,595,640 (2,759,628) 1,002,431 108,531 Net Position - July 1, 2024 191,730,132 166,660,345 20,905,439 373,742 Change in accounting principle (Note 19) (1,705) (1,114) (4,267) - Net Position - July 1, 2024, restated 191,728,427 166,659,231 20,901,172 373,742 Net Position - June 30, 2025 $ 197,324,067 $ 163,899,603 $ 21,903,603 $ 482,273 See accompanying notes to the basic financial statements. 27 62
CITY OF LINCOLN
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Governmental
Activities
Major Funds
Transit Total
Internal Service
Funds
OPERATING REVENUES
Charges for services $ - $ 57,754,727 $ 8,930,481
Connection fees - 47,600 -
Other revenue - 302,246 124,043
Total Operating Revenue - 58,104,573 9,054,524
OPERATING EXPENSES
Salaries and benefits 66,711 9,111,049 4,924,767
Services and supplies 533,806 34,787,284 2,595,977
Support services - 3,636,072 -
Depreciation 43,289 10,376,323 254,646
Total Operating Expenses 643,806 57,910,728 7,775,390
Operating Income (Loss) (643,806) 193,845 1,279,134
NON-OPERATING REVENUES (EXPENSES)
Taxes - 58,285 -
Intergovernmental 594,949 825,571 36,824
Interest income 35,766 3,338,465 253,249
Other non-operating revenues - 10,347 -
Gain on sale of capital assets - 19,169 -
Interest expense - (105,351) (19,482)
Total Non-Operating Revenues
(Expenses) 630,715 4,146,486 270,591
Income (Loss) Before Transfers and
Contributions (13,091) 4,340,331 1,549,725
TRANSFERS AND CONTRIBUTIONS
Capital connection fees - 1,510,020 -
Transfers out (98) (1,916,566) -
Total Transfers and Contributions (98) (406,546) -
Change in net position (13,189) 3,933,785 1,549,725
Net Position - July 1, 2024 576,360 380,246,018 5,327,905 Change in accounting principle (Note 19) (115) (7,201) (23,347) Net Position - July 1, 2024, restated 576,245 380,238,817 5,304,558 Net Position - June 30, 2025 $ 563,056 $ 384,172,602 $ 6,854,283 See accompanying notes to the basic financial statements. 28 63
CITY OF LINCOLN
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Major Funds
Water Wastewater Solid Waste Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 25,680,015 $ 20,071,880 $ 10,956,066 $ 1,971,465 Cash paid to suppliers (12,440,653) (19,082,144) (6,142,524) (1,211,873) Cash paid to employees (2,533,032) (2,119,029) (3,457,862) (332,741) Net Cash Provided by (Used For) Operating Activities 10,706,330 (1,129,293) 1,355,680 426,851
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Intergovernmental 1,696 631 200,242 28,053
Taxes - - - 57,112
Interfund repayments received - - 167,068 -
Interfund repayments paid - - - (182,354)
Transfers to other funds (618,754) (406,764) (796,543) (94,407) Net Cash Provided by (Used for) Non-Capital
Financing Activities (617,058) (406,133) (429,233) (191,596)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Connection fees 670,681 611,842 227,497 -
Proceeds from disposal of capital assets - 19,169 - -
Acquisition of capital assets (5,762,112) (1,549,123) (2,094,358) (105,442) Principal paid on long-term debt (22,912) (18,710) (12,706) (1,524) Interest paid on long-term debt (2,598) (2,122) (1,441) (99,190) Net Cash Used for Capital and Related Financing
Activities (5,116,941) (938,944) (1,881,008) (206,156)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 1,585,042 943,271 727,292 53,484 Net Cash Provided by Investing Activities 1,585,042 943,271 727,292 53,484 Net Increase (Decrease) in Cash and Cash Equivalents 6,557,373 (1,531,099) (227,269) 82,583 Cash and Cash Equivalents - July 1, 2024 29,976,447 19,530,777 15,860,400 1,036,953 Cash and Cash Equivalents - June 30, 2025 $ 36,533,820 $ 17,999,678 $ 15,633,131 $ 1,119,536
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES:
Operating Income (Loss) $ 3,955,156 $ (3,929,162) $ 648,248 $ 163,409 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 3,988,507 5,382,559 755,151 206,817 Other non-operating revenue 5,623 4,724 - -
Pension expense 73,701 65,459 95,634 7,425
OPEB expense 50,021 44,644 65,499 6,029
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (175,507) (72,247) (360,209) 4,957 Decrease in leases receivable - - - 62,672
(Increase) decrease in prepaid expenses 37,769 4,328 13,247 (178) Increase in inventory - - - 14,215
Increase (decrease) in accounts payable 2,638,904 (3,880,215) 39,499 (31,888) Increase (decrease) in accrued wages 11,412 5,854 26,793 (1,006) Increase (decrease) in retention payable 90,320 51,131 35,224 - Increase (decrease) in deposits (9,000) 1,170,965 - 15,586 Increase in compensated absences 39,424 22,667 77,672 10,446 Increase (decrease) in unearned revenue - - (41,078) 45,374 Decrease in deferred inflows of resources leases - - - (77,007) Net Cash Provided by (Used For) Operating Activities $ 10,706,330 $ (1,129,293) $ 1,355,680 $ 426,851 NON CASH SUPPLEMENTAL DISCLOSURE:
Assets acquired under leases $ - $ - $ - $ -
Assets acquired under SBITAs - - - -
See accompanying notes to the basic financial statements. 29 64
CITY OF LINCOLN
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Governmental
Activities
Major Funds
Transit Total
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ - $ 58,679,426 $ 9,205,170 Cash paid to suppliers (253,945) (39,131,139) (2,485,457) Cash paid to employees (63,768) (8,506,432) (4,999,228) Net Cash Provided by (Used For) Operating Activities (317,713) 11,041,855 1,720,485
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Intergovernmental 594,949 825,571 86,270
Taxes - 57,112 -
Interfund repayments received - 167,068 -
Interfund repayments paid - (182,354) -
Transfers to other funds (98) (1,916,566) -
Net Cash Provided by (Used for) Non-Capital
Financing Activities 594,851 (1,049,169) 86,270
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Connection fees - 1,510,020 -
Proceeds from disposal of capital assets - 19,169 -
Acquisition of capital assets - (9,511,035) (433,549)
Principal paid on long-term debt - (55,852) (186,892)
Interest paid on long-term debt - (105,351) (19,482)
Net Cash Used for Capital and Related Financing Activities - (8,143,049) (639,923)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 35,880 3,344,969 252,377
Net Cash Provided by Investing Activities 35,880 3,344,969 252,377 Net Increase (Decrease) in Cash and Cash Equivalents 313,018 5,194,606 1,419,209 Cash and Cash Equivalents - July 1, 2024 746,173 67,150,750 4,518,613 Cash and Cash Equivalents - June 30, 2025 $ 1,059,191 $ 72,345,356 $ 5,937,822
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES:
Operating Income (Loss) $ (643,806) $ 193,845 $ 1,279,134 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 43,289 10,376,323 254,646
Other non-operating revenue - 10,347 -
Pension expense 1,226 243,445 -
OPEB expense 1,629 167,822 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - (603,006) 150,646 Decrease in leases receivable - 62,672 -
(Increase) decrease in prepaid expenses - 55,166 (4,898) Increase in inventory - 14,215 -
Increase (decrease) in accounts payable 279,861 (953,839) 115,418 Increase (decrease) in accrued wages (469) 42,584 30,444 Increase (decrease) in retention payable - 176,675 -
Increase (decrease) in deposits - 1,177,551 -
Increase in compensated absences 557 150,766 (104,905)
Increase (decrease) in unearned revenue - 4,296 -
Decrease in deferred inflows of resources leases - (77,007) - Net Cash Provided by (Used For) Operating Activities $ (317,713) $ 11,041,855 $ 1,720,485 NON CASH SUPPLEMENTAL DISCLOSURE:
Assets acquired under leases $ - $ - $ 42,101
Assets acquired under SBITAs - - 217,299
See accompanying notes to the basic financial statements. 30 65
CITY OF LINCOLN
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
Redevelopment
Obligation
Retirement Fund
OPEB
Trust
Fund
Custodial
Funds
ASSETS
Cash and investments (Note 2) $ 2,308,893 $ - $ 9,923,084 Assessments receivable - - 66,385
Interest receivable 3,481 - 13,168
Deferred costs 23,505 - -
Restricted cash and investments (Note 2) 824 - 17,101,159 Restricted investments held in trust (Note 2):
Mutual funds - 18,588,153 -
Loans receivable 137,561 - -
Capital assets, net of accumulated depreciation (Note 18) 2,544,731 - - Total Assets 5,018,995 18,588,153 27,103,796
LIABILITIES
Accounts payable and other liabilities - - 228,440
Interest payable 28,155 - -
Developer deposits payable - - 61,341
Advances from the City (Note 18) 2,089,476 - -
Long-term liabilities (Note 18) 2,652,218 - -
Total Liabilities 4,769,849 - 289,781
NET POSITION
Restricted for:
OPEB - 18,588,153 -
Individuals, organizations and other governments 249,146 - 26,814,015 Total Net Position $ 249,146 $ 18,588,153 $ 26,814,015
See accompanying notes to the basic financial statements. 31 66
CITY OF LINCOLN
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Redevelopment
Obligation
Retirement Fund
OPEB
Trust
Fund
Custodial
Funds
ADDITIONS
Property taxes and assessments $ 2,387,544 $ - $ 11,187,402 Contributions from employer - 2,080,768 -
Investment income:
Interest income 46,580 917,045 668,830
Net increase in fair value 35,457 1,017,336 172,811
Net investment income 82,037 1,934,381 841,641
Total Additions 2,469,581 4,015,149 12,029,043
DEDUCTIONS
Professional services 11,642 - 749,760
Administrative expense - 70,125 -
Debt service:
Principal - - 7,235,000
Interest 153,914 - 4,418,073
Total Deductions 165,556 70,125 12,402,833
Change in Fiduciary Net Position 2,304,025 3,945,024 (373,790) Fiduciary Net Position - July 1, 2024 (2,054,879) 14,643,129 43,805,573 Prior period restatement (Note 19) - - (16,617,768)
Fiduciary Net Position - July 1, 2024, Restated (2,054,879) 14,643,129 27,187,805 Fiduciary Net Position - June 30, 2025 $ 249,146 $ 18,588,153 $ 26,814,015 See accompanying notes to the basic financial statements. 32 67
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lincoln (the City) was incorporated in March 1878 under the laws and regulations of the State of California. The City operates under a City Manager - Council form of government and provides the following services: public safety (police and fire), highways and streets, water, sewer, sanitation, airport, culture, recreation, public improvements, planning and zoning, and general administrative services.
The accounting policies of the City of Lincoln conform to accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the more significant policies:
A. The Reporting Entity
Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.
Reporting for component units on the City’s financial statements can be blended or discretely presented. Blended component units are, although legally separate entities, in substance part of the City’s operations and, therefore, data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the government.
For financial reporting purposes, the City’s basic financial statements include all financial activities that are controlled by or are dependent upon actions taken by the City Council.
Blended Component Units
Lincoln Public Financing Authority - The Authority was formed by the execution of a Joint Powers Authority Agreement between the City of Lincoln and the former City of Lincoln Redevelopment Agency. The purpose of the Authority is to provide financing of public capital improvements through the acquisition, construction and improvement thereof by the Authority, or the loan of funds to the City to enable the City to provide for the acquisition construction and improvement of public capital improvements. The Authority is the lessor for the City’s various bond issuances and makes debt service payments on behalf of the City and the Successor Agency to the City of Lincoln Redevelopment Agency. The City Council is the governing body of the Authority and because its financial and operational relationship with the City is closely integrated, the Authority debt is reported as bonds payable in the governmental activities, and long-term debt in the private purpose trust funds. Separate financial statements for the Lincoln Public Financing Authority are not issued.
Discretely Presented Component Units
There are no component units of the City which meet the criteria for discrete presentation.
Joint Agencies
The City is a participant in Northern California Cities Self-Insurance Fund (NCCSIF), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. The NCCSIF is governed by a board of directors appointed by the member cities. Complete financial information can be obtained from the Program Administrator, 2180 Harvard Street, Suite 460, Sacramento, CA 95815. The City is not financially accountable for this organization and therefore it is not considered a component unit. 33 68
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. These standards require that the financial statements described below be presented.
Government-wide Financial Statements:
The Statement of Net Position and Statement of Activities display information on all of the nonfiduciary activities of the City, and its blended component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City.
Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions.
Taxes and other items not properly included among program revenues are reported instead as general revenues.
Fund Financial Statements:
The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary.
An emphasis is placed on major funds within the governmental and proprietary categories with each major fund displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets and deferred outflows of resources, liabilities and deferred inflow of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and b. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
All remaining governmental funds are aggregated and reported as nonmajor funds in a single column, regardless of their fund type.
The City reports the following major governmental funds in the accompanying financial statements:
General Fund - The General fund is the primary operating fund of the City. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, culture and recreation services, public works and facilities, education, and economic development services.
Public Facility Element - The Public Facility Element (PFE) fund is a special revenue fund used to account for the fees collected from developers and community services fees for public facilities improvements including, but not limited to, police, fire, and City administration facilities. Funding comes primarily from developer fees and facility fees.
34 69
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Water Connections - The Water Connections fund is a special revenue fund used to account for water connection fees collected from developers and property owners that are required by the California Government Code to be expended for capacity expansion. Funding comes primarily from connection fees and investment earnings.
Special Assessment Districts - The Special Assessment Districts fund is a special revenue fund used to account for resources received to provide improvements and maintenance to public property within a district. Funding comes primarily from special assessments.
Development Services - Accounts for monies received in relation to all aspects of developing property and/or projects within the City. The activities are accounted for within the community development and public works departments. Monies are received from license and permit costs and additional fees for services within the City of Lincoln and the surrounding areas.
Low/Moderate Income Housing - The Low/Moderate Income Housing fund is a special revenue fund used to account for the housing loans established as part of the former Redevelopment Agency of the City of Lincoln. The major source of revenue for the fund is from program revenue received from the repayment of housing loans.
The City reports the following major proprietary funds in the accompanying financial statements:
Water Fund - The Water fund is an enterprise fund used to account for the activities of the water operating and nonoperating funds of the City of Lincoln’s public services department. Activities include accounting for the Lincoln residents water use, water pipeline installation and repairs, and water meter installation and repairs.
Wastewater Fund - The Wastewater fund is an enterprise fund used to account for the activities of the wastewater operating and non-operating funds of the City of Lincoln’s public services department. Activities include wastewater services and repair.
Solid Waste Fund - The Solid Waste fund is an enterprise fund used to account for the activities of the solid waste operating and non-operating funds of the City of Lincoln’s public services department. Activities include accounting for the City of Lincoln’s residents’ solid waste (garbage) services.
Airport Fund - The Airport fund is an enterprise fund used to account for the activities of the publicly owned Lincoln Regional Airport. The airport was established in 1947 as a regional center for general and corporate aviation.
Transit Fund - The Transit fund is an enterprise fund used to account for transit activities. The transit activity is operated by Placer County.
The City also reports the following additional fund types:
Permanent Funds - Permanent funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs. The permanent funds of the City include Stormwater Retention Maintenance, Suncal Open Space Endowment, Brookview Open Space Maintenance Trust, Sterling Point Endowment, WWTRF Tertiary Storage Basin Maintenance, and Lincoln Aircenter.
Internal Service Funds - The internal service funds account for the City's fleet maintenance and insurance programs, facility maintenance, and technology programs.
Private Purpose Trust Fund - The Private Purpose Trust fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.
OPEB Trust Fund - The OPEB Trust fund is used to report resources that are held in trust for the members and beneficiaries of the City's other postemployment benefit plan. 35 70
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Custodial Funds - The Custodial funds account for resources held by the City as an agent for individuals, private organizations, and other governmental entities. These resources include fees collected on behalf of bonded assessment districts, the Little League organization, and the preservation of the library.
C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental and proprietary activities are presented using the economic resources measurement focus as defined in item "b" below.
In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:
a. All governmental funds are accounted for using a "current financial resources" measurement focus. With this measurement focus, only current assets and deferred outflows of resources, and current liabilities and deferred inflows of resources generally are included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. All proprietary funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and deferred outflows of resources, and all liabilities and deferred inflows of resources (whether current or noncurrent) associated with the operation of these funds are reported. Proprietary fund equity is classified as net position. c. Fiduciary funds use the "economic resources" measurement focus and the accrual basis of accounting.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and proprietary activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used.
Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City defines available to be within 60 days of year-end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term liabilities and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual include taxes, intergovernmental revenues, interest and charges for services.
Certain indirect costs are included in program expenses reported for individual functions and activities.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
36 71
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal operations. The principal operating revenues of the enterprise and internal service funds are charges for services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.
D. Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased including amounts held in the City’s investment pool, to be cash and cash equivalents.
E. Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.
Investment transactions are recorded on the trade date. The fair value of investments is determined annually.
Investments in nonparticipating interest-earning investment contracts are reported at cost; short term investments are reported at amortized cost, investments in Local Agency Investment Fund, an external pool, are reported at amortized cost which approximates fair value, and the fair value of all other investments are obtained by using quotations obtained from independent published sources or by the safekeeping institution. The fair value represents the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller.
Income from pooled investments is allocated to the individual funds based on the fund or participant’s average daily cash and investment balance at quarter end in relation to the total pooled cash and investments. Income from nonpooled investments is recorded based on the specific investments held by the fund.
F. Accounts and Interest Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.
Receivables are recorded in the financial statements net of any allowance for doubtful accounts, if applicable, and estimated refunds due. Management records an allowance for doubtful accounts based on historical trends and the periodic aging of receivables. The allowance for doubtful accounts as of June 30, 2025 totaled $15,904, for business-type activities. There was no allowance for doubtful accounts as of June 30, 2025 for governmental activities. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, fines, interest, and other fees. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available. Loans receivable are recorded in the fund financial statements, but are recorded as deferred inflows of resources to indicate they do not represent current financial resources. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables. 37 72
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Inventory
Governmental fund inventories are recorded as expenditures at the time the inventory is purchased rather than when consumed. Records are not maintained of inventory and supplies on hand, although these amounts are not considered material.
Inventories of proprietary funds are stated at average cost. Inventory recorded by proprietary funds includes supplies for the airport. Proprietary fund inventories are recorded as expenses when consumed.
H. Prepaid Expenses
Payments made for services that will benefit periods beyond June 30, 2025 are recorded as prepaid costs in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
I. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.
Government-wide Statements
In the government-wide financial statements, capital outlay with a cost of $5,000 or more and a useful life of one year or longer, right-to-use lease assets with a net present value of greater than 1% of net assets for proprietary funds and the fund balance for governmental funds, and subscription assets with a net present value of greater than 1% of net assets for proprietary funds and the fund balance for governmental funds are capitalized. All capital assets except right-to use lease assets and subscription assets are valued at historical cost, or estimated historical cost if actual is unavailable. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are not capitalized.
Depreciation/amortization is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation/amortization reflected in the Statement of Net Position. Depreciation/amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows:
Building and improvements 20 - 50 years
Machinery and equipment 5 - 15 years
Land improvements 20 years
Infrastructure 15 - 75 years
Subscription assets 2 - 5 years
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements. 38 73
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Property Taxes
Placer County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.
Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
The City recognizes property taxes when the individual installments are due provided they are collected within 60 days after year-end.
K. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
Loans reported as receivables and payables 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) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.
Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.
All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.
L. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned.
When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue. 39 74
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave. Unused vacation and compensatory time off benefits are paid to employees upon termination. 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. In the government-wide financial statements the accrued compensated absences are recorded as an expense and related liability, with the current portion estimated based on historical trends. In the governmental fund financial statements the expenditures and liabilities related to those obligations are recognized only when they mature. In the proprietary funds the accrued compensated absences are recorded as an expense and related liability in the year earned.
N. Long-Term Liabilities
In the government-wide financial statements and the proprietary fund financial statements, long-term liabilities, and other long term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Initial issue bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. The difference between the reacquisition price of refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt. Bond issuance costs, except for insurance, are expensed in the period incurred. Amortization of bond premiums or discounts, insurance costs, and deferred amounts on refunding are included in interest expense.
In the fund financial statements, governmental funds recognize bond premiums, discounts, and issuance costs during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
O. Leases
Lessor
The City is a lessor for noncancellable leases for land, buildings, equipment, cell tower sites, and airport property.
The City recognizes a lease receivable and a deferred inflow of resources in the government-wide, governmental fund and proprietary fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its leases, and will remeasure the leases receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
40 75
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Lessee
The City is a lessee for noncancellable leases of vehicles. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonable certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
P. Subscription-Based Information Technology Arrangements (SBITA) A SBITA is defined as a contractual agreement that conveys control of the right to use another party's (a SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a minimum contractual period of greater than one year, in an exchange or exchange-like transaction.
The City uses various SBITA assets that it contracts through cloud computing arrangements, such as software as a service and platform as a service. The related obligations are presented in amounts equal to the present value of subscription payments, payable during the remaining SBITA term. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the statement of net position.
Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
41 76
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Section 115 Trust
In fiscal year 2024-25, the City Council approved the creation of a Section 115 Trust Agreement with U.S. Bank National Association, Trustee, and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City's pension obligations. Contributions to the Section 115 trust are irrevocable, the assets are dedicated to providing benefits to plan members, and the assets are protected from creditors of the City. The purpose of the creation of the Section 115 Trust was to address the City's pension obligations be accumulating assets to reduce the net pension liability. However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered to have present service capacity as plan assets and are therefore considered restricted assets of the City rather than plan assets.
Accordingly, the Section 115 Trust's assets are recorded as restricted for pension benefits in the City's General Fund rather than assets of the pension plan during the measurement of the net pension liability. The assets held in trust will be considered pension plan assets at the time they are transferred out of the Trust into the pension plan.
S. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 - June 30, 2024
T. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. It is the deferred amounts related to pension and OPEB.
In addition to liabilities, the Statement of Net Position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category.
Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues and leases that have not been received within the modified accrual period. In the government-wide financial statements the City reports deferred inflows related to leases, pension and OPEB.
42 77
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) U. Equity Classifications
Government-wide Statements
Net position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position, which is determined at the Government-wide level, and are described below:
a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net position that does not meet the definition of "restricted" or "net investment in capital assets."
Fund Statements
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:
a. Nonspendable - Amounts that cannot be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. b. Restricted - Amounts that are restricted for specific purposes when constraints placed on the use of resources are either (1) externally imposed by creditors, grantors, contributors, laws, or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. c. Committed - Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (resolution) of the government's highest level of decision-making authority. d. Assigned - Amounts that are constrained by the City Council's intent to be used for specific purposes through a resolution, but are neither restricted or committed. The City Council assigns fund balances for specific purposes by resolution adopting the annual budget for the upcoming fiscal year, or by an amending budget resolution during the fiscal year.
e. Unassigned - Amounts representing the residual classification for the general fund or any other fund with a negative fund balance.
Further detail about the City's fund balance classification is described in Note 10.
V. Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.
43 78
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) W. Implementation of Governmental Accounting Standards Board Statements Effective July 1, 2024, the City implemented the following accounting and financial reporting standards:
Government Accounting Standards Board Statement No. 101 In June 2022, GASB issued Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The City implemented the provisions of GASB Statement 101 in the fiscal year ending June 30, 2025, see Note 19 for details.
Government Accounting Standards Board Statement No. 102 In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decisionmaking authority. There was no impact to the financial statements as a result of this statement.
X. Future Governmental Accounting Standards Board Statements These statements are not effective until July 1, 2025 or later. The City has not determined the effects on the financial statements.
Government Accounting Standards Board Statement No. 103 In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance it effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. The requirements of this statement are effective for the City's fiscal year ending June 30, 2026.
Government Accounting Standards Board Statement No. 104 In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34 and also requires additional disclosures for capital assets held for sale.
The requirements of this statement are effective for the City's fiscal year ending June 30, 2026.
Government Accounting Standards Board Statement No. 105 In December 2025, GASB issued Statement No. 105, Subsequent Events. The primary objective of this Statement is to improve the financial reporting requirements for subsequent events. The requirements of this Statements will improve financial reporting related to subsequent events by (1) clarifying the subsequent events time frame and the subsequent events that constitute recognized and nonrecognized events and (2) specifying the information items that are required to be disclosed about subsequent events. The requirements of this Statement are effective for the City's fiscal year ending June 30, 2027.
44 79
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:
Cash and
Investments
Restricted
Cash and
Investments Total
Governmental activities $ 176,276,917 $ 11,636,955 $ 187,913,872 Business-type activities 72,345,356 - 72,345,356
Total government-wide cash and investments 248,622,273 11,636,955 260,259,228 Fiduciary activities 12,231,977 35,690,136 47,922,113
Total cash and investments $ 260,854,250 $ 47,327,091 $ 308,181,341 Cash and investments were carried at fair value as of June 30, 2025 and consisted of the following:
Cash on hand $ 1,700
Cash in banks 77,483,653
Total cash 77,485,353
Money market funds 20,352,031
U.S. treasury obligations 81,717,077
Government agency securities 3,773,874
Medium term corporate notes 78,117,109
Local Agency Investment Fund (LAIF) 24,452,332
Held by pension trustee:
Money market funds 79,967
Mutual funds 3,615,445
Held by OPEB trustee:
Money market funds 359,224
Mutual funds 18,228,929
Total investments 230,695,988
Total cash and investments $ 308,181,341
Authorized Investments of the City
Pursuant to Section 53646 of the Government Code, the City prepares an investment policy annually and presents it to the City Council for review and approval. The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law. 45 80
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that addresses interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City or the investments of the pension and OPEB trusts, rather than the general provisions of the California Government Code or the City's investment policy.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
one Issuer
United States Treasury bills, bonds and notes 5 years 100% None Federal Agency or U.S Government-sponsored obligations 5 years 100% None Local Agency Investment Fund (LAIF)
As permitted by
law
As permitted by
law None
Local government investment pools NA 100% None
Money market funds NA 20% 10%
Bankers' acceptances 180 days 40% None
Commercial paper 270 days 25% 10%
Negotiable certificates of deposit 5 years 30% None
Medium term corporate notes 5 years 30% None
California local agency obligations 5 years 15% None
Supranationals 5 years 30% None
Asset-backed securities 5 years 20% None
Investments Authorized by Pension and OPEB Trusts
Investment of funds in the pension and OPEB trusts are managed by a Plan Administrator. The pension and OPEB trust investment policies allow the Plan Administrator to manage the investments consistent with the investment objectives as outlined in the investment policies, the Prudent Expert Rules, and the provisions of the Employee Retirement Income Security Act of 1974.
The investment policies grant the administrator full power and authority to make purchases, sales, exchanges, conversion, and trades in connection therewith as the administrator deems appropriate. The assets in the plans are administered in a manner that is consistent with generally accepted standards of fiduciary responsibility, to insure the security of principal, and maximum yield on all investments through a mix of well diversified, high quality, fixed income and equity securities.
Authorized investment types include the following:
Authorized Investment Type
Maximum
Percentage of
Portfolio
Maximum Investment in one
Issuer
Domestic equity 40% 5% of equity portfolio
International equity 40% 5% of equity portfolio
Other growth assets 20% not specified
Fixed income 50% 5% (U.S. government exempt)
Other income assets 20% Not specified
Real return assets 20% Not specified
Cash equivalents 20% Not specified
46 81
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investment Valuation
The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs
Investments are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period.
Following is a description of the valuation methodologies used:
U.S. Treasuries, Government Agency Obligations, Medium Term Corporate Notes, Municipal Issues and Money Market Funds: Fair values are based on quoted market prices for similar securities in markets that are not active, and model-based techniques for which all significant assumptions are observable in the market, resulting in a Level 2 valuation.
Mutual funds: Fair value is based on quoted market prices in an active market, resulting in a Level 1 valuation.
The City’s position in external investment pools is in itself regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate.
At June 30, 2025, the City had the following recurring fair value measurements:
Fair Value Measurements Using
Investments Level 1 Inputs Level 2 inputs Level 3 inputs Fair Value Money market funds $ - $ 20,352,031 $ - $ 20,352,031
U.S. treasury obligations - 81,717,077 - 81,717,077
Government agency securities - 3,773,874 - 3,773,874
Medium term corporate notes - 78,117,109 - 78,117,109
Local Agency Investment Fund - - - 24,452,332
Held by pension trustee:
Money market funds - 79,967 - 79,967
Mutual funds 3,615,445 - - 3,615,445
Held by OPEB trustee:
Money market funds - 359,224 - 359,224
Mutual funds 18,228,929 - - 18,228,929
Total Investments $ 21,844,374 $ 184,399,282 $ - $ 230,695,988 Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro rata share of the fair value provided by LAIF for the entire portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on an amortized cost basis. 47 82
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosure Relating to Interest Rate Risk
Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To limit exposure to fair value losses resulting from increases in interest rates, the City’s investment policy limits investment maturities to a term appropriate to the need for funds so as to permit the City to meet all projected obligations. Any investments that mature more than five years from the date of purchase cannot occur without prior approval of the City Council.
Information about the sensitivity of the fair values of the City's investments (excluding investments held by bond trustees) to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2025:
Remaining Maturity
Investments Interest Rates < 12 months 1-5 years Fair Value Money market funds 0.010% $ 20,352,031 $ - $ 20,352,031 U.S. treasury obligations 0.50% - 2.75% - 81,717,077 81,717,077 Government agency securities 0.125% - 3.375% - 3,773,874 3,773,874 Medium term corporate notes 0.125% - 3.875% 400 78,116,709 78,117,109 Local Agency Investment Fund Variable 24,452,332 - 24,452,332 Held by pension trustee:
Money market funds Variable 79,967 - 79,967
Mutual funds Variable 3,615,445 - 3,615,445
Held by OPEB trustee:
Money market funds Variable 359,224 - 359,224
Mutual funds Variable 18,228,929 - 18,228,929
$ 67,088,328 $ 163,607,660 $ 230,695,988
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City had no investments that were highly sensitive to interest rate fluctuations as of June 30, 2025. 48 83
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy sets specific parameters by type of investment to be met at the time of purchase. Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, and the actual rating as of year end for each investment type.
Rating as of Fiscal Year End
Total
Minimum
Legal
Rating S&P Moody's
Money market funds $ 20,352,031 N/A Not rated Not rated U.S. Treasury obligations 80,752,737 N/A N/A AAA
U.S. Treasury obligations 964,340 N/A N/R N/R
Government agency securities 3,773,874 N/A AA+ AAA
Medium term corporate notes 2,720,049 A A A1
Medium term corporate notes 6,703,971 A A A2
Medium term corporate notes 1,280,126 A A AA3
Medium term corporate notes 1,027,727 A A- A1
Medium term corporate notes 4,421,737 A A- A2
Medium term corporate notes 4,867,574 A A- A3
Medium term corporate notes 3,487,582 A A+ A1
Medium term corporate notes 2,217,575 A A+ A2
Medium term corporate notes 3,400,533 A A+ AA2
Medium term corporate notes 3,699,110 A A+ AA3
Medium term corporate notes 1,890,086 A AA AA2
Medium term corporate notes 1,024,780 A AA- A1
Medium term corporate notes 4,373,456 A AA- AA2
Medium term corporate notes 97,010 A AA- AA3
Medium term corporate notes 1,390,690 A BBB+ A2
Medium term corporate notes 5,478,438 A AAA N/A
Medium term corporate notes 19,989,954 A N/R N/R
Medium term corporate notes 5,014,468 A AAA AAA
Medium term corporate notes 5,032,243 A N/A AAA
Local Agency Investment Fund 24,452,332 N/A Not rated Not rated Held by pension trustee:
Money market funds 79,967 N/A Not rated Not rated
Mutual funds 3,615,445 N/A Not rated Not rated
Held by OPEB trustee:
Money market funds 359,224 N/A Not rated Not rated
Mutual funds 18,228,929 N/A Not rated Not rated
$ 230,695,988
49 84
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. The City’s investment policy contains limitations on the amount that can be invested in any one issuer.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) at June 30, 2025, that represent 5 percent or more of total City investments are as follows:
Issuers Investment Type Amount
Federal Home Loan Banks Government agency securities $ 20,170,623 Custodial Credit Risk
Custodial credit risk for investments is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. To mitigate the custodial credit risk, the City’s investment policy requires that all of its managed investments shall be held in the name of the City in safekeeping by a third party bank trust department.
The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits more than the $250,000 insured amount are collateralized.
As of June 30, 2025, the carrying amount of the City's deposits was $77,483,653 and bank balances were $77,751,917. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit.
Allocation of Interest Income Among Funds
Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated quarterly based on the ending cash balances of the previous quarter in each fund receiving interest.
NOTE 3: LEASES RECEIVABLE
The City is reporting leases receivable of $2,938,977 at June 30, 2025. For the year ended June 30, 2025, the City reported lease revenue of $117,593 and interest revenue of $154,187 related to lease payments received.
Buildings and Equipment -
On January 23, 2007, the City entered into an agreement with Flightline - Rockwell for the lease of a storage container. The lease has a term of 30 years and interest rate of 8.25%.
Cell Tower Site -
On March 12, 2019, the City entered into a lease agreement with PCS Structures Towers, LLC for the lease of land for a cell tower site. The lease has a term of 25 years and an interest rate of 5%.
Airport Property -
On July 15, 1987, the City entered into an agreement with Flightline - Lincoln Air for the lease of airport property.
The lease has a term of 40 years and interest rate of 8.25%. On September 26, 2012, the City entered into an agreement with Flightline - Kracon for the lease of airport property. The lease has a term of 25 years and interest rate of 3.25%. On December 4, 2012, the City entered into an agreement with Flightline - ITAPOL for the lease of airport property. The lease has a term of 25 years and interest rate of 3.25%. 50 85
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 3: LEASES RECEIVABLE (CONTINUED)
Future payments due to the City under the non-cancelable agreements are as follows:
Governmental Activities
For the Year Ending June 30, Principal Interest Total
2026 $ 67,657 $ 125,803 $ 193,460
2027 71,990 122,418 194,408
2028 76,559 118,817 195,376
2029 81,376 114,988 196,364
2030 86,456 110,917 197,373
2031 - 2035 518,528 484,146 1,002,674
2036 - 2040 693,147 337,896 1,031,043
2041 - 2045 919,285 143,077 1,062,362
Total $ 2,514,998 $ 1,558,062 $ 4,073,060
Business-type Activities
For the Year Ending June 30, Principal Interest Total
2026 $ 57,516 $ 21,736 $ 79,252
2027 61,240 18,011 79,251
2028 28,251 14,013 42,264
2029 29,493 12,770 42,263
2030 30,803 11,461 42,264
2031 - 2035 176,336 34,983 211,319
2036 - 2040 40,340 1,923 42,263
Total $ 423,979 $ 114,897 $ 538,876
The City has recorded a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease terms. As of June 30, 2025, the balance of the deferred inflow of resources was $3,022,348.
NOTE 4: LOANS RECEIVABLE
The City has made various business loans to qualifying businesses through programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. In addition, the City has made various loans under the Community Development Block Grant (CDBG) revolving loan program, the Home Investment Partnerships (HOME) program, and the CalHome program. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City's terms.
The balance of the loans receivable, net of allowance, has been offset in the fund financial statements by deferred inflows of resources as they are not deemed measurable and available (within 60 days). In the government-wide Statement of Net Position, the City has provided a 100% allowance for all loans receivable subject to long-term deferral and/or payment from future refinancing except those accounts that have current payment activity and are not delinquent. Individual loans range from $2,500 to $2,000,000. 51 86
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 4: LOANS RECEIVABLE (CONTINUED)
Total loans receivable, including accrued interest, net of allowance as of June 30, 2025 are as follows:
Loans
Receivable
Accrued
Interest Allowance
Total Loans
Receivable, net
Community development block grants $ 228,408 $ 135,599 $ - $ 364,007 Home investment partnership 970,059 412,096 - 1,382,155 CalHOME 177,004 28,209 - 205,213
Low/Moderate Income Housing 2,358,000 1,621,969 - 3,979,969 Totals $ 3,733,471 $ 2,197,873 $ - $ 5,931,344
NOTE 5: INTERFUND AND INTRA-FUND TRANSACTIONS
Due to/from Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The composition of due to/from other funds as of June 30, 2025 was as follows:
Receivable Fund Payable Fund Description Amount
Governmental Funds
General Fund CDBG-CV Overdrawn cash $ 240,304
General Fund Federal Grants Overdrawn cash 272,561
Total Governmental Funds $ 512,865
The overdrawn cash noted above was a result of expenditures incurred in advance of receipt of grant revenues.
Advances to/from Other Funds
Advances to/from other funds are non-current interfund loans and are offset by a nonspendable fund balance in applicable governmental funds to indicate they are not in spendable form. The composition of advances to/from other funds as of June 30, 2025 was as follows:
Receivable Fund Payable Fund Description Maturity Amount Governmental Funds
General Fund Airport Fund deficit June 2079 $ 4,675,090 Water Connections Public Facility Element Capital project funding June 2026 1,394,039 LPFA Series 2016 Airport Capital lease refinance October 2028 526,955 Total Governmental Funds $ 6,596,084
Proprietary Funds
Solid Waste Public Facility Element Capital project funding June 2028 $ 356,394 Total Proprietary Funds $ 356,394
52 87
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5: INTERFUND AND INTRA-FUND TRANSACTIONS (CONTINUED) Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2025 were as follows:
Transfer From Transfer To Description of Transfer Amount Governmental Funds
General Fund LPFA Refunding Series 2016 Debt service $ 556,216 General Fund Special Assessment Districts Budget 931,034 Public Facility Element (PFE) General Fund Pension trust 1,234 Special Assessment Districts General Fund Pension trust 137,987 Special Assessment Districts LPFA Refunding Series 2016 Debt service 64,025 Development Services General Fund Pension trust 76,026
Development Services LPFA Refunding Series 2016 Debt service 96,037 Park In-Lieu Gas Tax NCCSIF allocation 18,106
Gas Tax LPFA Refunding Series 2016 Debt service 32,012
Gas Tax General Fund Pension trust 97,719
Street Fund LPFA Refunding Series 2016 Debt service 32,012 Street Fund General Fund Pension trust 69,358
Parks and Recreation Tax General Fund Pension trust 163 Police Grants General Fund Pension trust 348
Total Governmental Interfund Transfers $ 2,112,277
Proprietary Funds
Water General Fund Pension trust $ 433,349
Water LPFA Refunding Series 2016 Debt service 185,405
Wastewater General Fund Pension trust 213,356
Wastewater LPFA Refunding Series 2016 Debt service 193,408 Solid Waste General Fund Pension trust 648,486
Solid Waste LPFA Refunding Series 2016 Debt service 148,057 Airport General Fund Pension trust 67,730
Airport LPFA Refunding Series 2016 Debt service 26,677
Transit General Fund Pension trust 98
Total Proprietary Interfund Transfers $ 1,916,566
Intra-fund Transfers between Funds
The following table represents intra-fund transfers made during the year ended June 30, 2025:
Transfer From Transfer To Description Amount
Supplemental Fees General Fund Annual budget transfer $ 316,273 Public Safety Tax General Fund Public safety tax share 44,745 Standard Allowance General Fund Budget transfer 762
Wastewater Wastewater Capital Improvement Budget transfer 2,616,591 Solid Waste Solid Waste Capital Improvement Budget transfer 1,180,000 Total Intra-fund Transfers $ 4,158,371
53 88
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025, was as follows:
Governmental Activities:
Balance at
July 1, 2024 Additions Retirements Transfers
Balance at
June 30, 2025
Capital assets not being
depreciated/amortized
Land $ 14,470,390 $ 76,000 $ - $ - $ 14,546,390
Easements 242,604 - - - 242,604
Construction-in-progress 7,669,709 12,561,567 - (1,469,166) 18,762,110 Total capital assets not being
depreciated/amortized 22,382,703 12,637,567 - (1,469,166) 33,551,104 Capital assets being depreciated/amortized
Buildings and improvements 83,204,761 - - 903,731 84,108,492 Machinery and equipment 11,980,822 821,053 (159,908) - 12,641,967 Infrastructure 483,747,775 74,285 - 31,613 483,853,673
Land improvements 34,032,289 - - 533,822 34,566,111
Lease assets - vehicles - 781,572 - - 781,572
Subscription assets 965,671 217,299 - - 1,182,970
Total capital assets being
depreciated/amortized 613,931,318 1,894,209 (159,908) 1,469,166 617,134,785 Less accumulated depreciation/amortization
Buildings and improvements (30,527,781) (2,339,825) - - (32,867,606) Machinery and equipment (8,493,848) (1,057,700) 159,908 - (9,391,640) Infrastructure (247,685,106) (12,381,668) - - (260,066,774) Land improvements (15,313,413) (1,647,329) - - (16,960,742) Lease assets - vehicles - (85,280) - - (85,280)
Subscription assets (390,807) (209,691) - - (600,498)
Total accumulated
depreciation/amortization (302,410,955) (17,721,493) 159,908 - (319,972,540) Total capital assets being
depreciated/amortized, net 311,520,363 (15,827,284) - 1,469,166 297,162,245 Total Capital Assets, net $ 333,903,066 $ (3,189,717) $ - $ - $ 330,713,349 Depreciation/amortization expense was charged to governmental functions as follows:
Governmental Activities:
General government $ 824,707
Public safety 950,069
Public works and facilities 15,148,939
Culture and recreation 69,466
Education 473,666
Internal service funds 254,646
Total governmental activities depreciation/amortization expense $ 17,721,493 54 89
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6: CAPITAL ASSETS (CONTINUED)
Business-type Activities:
Balance at
July 1, 2024 Additions Retirements
Balance at
June 30, 2025
Capital assets not being depreciated
Land $ 1,549,390 $ - $ - $ 1,549,390
Easements 42,250 - - 42,250
Construction-in-progress 6,349,293 7,992,215 - 14,341,508 Total capital assets not being depreciated 7,940,933 7,992,215 - 15,933,148 Capital assets being depreciated
Buildings and improvements 26,356,615 - - 26,356,615
Machinery and equipment 15,242,999 1,518,819 (275,000) 16,486,818 Infrastructure 459,211,334 - - 459,211,334
Land improvements 1,154,850 - - 1,154,850
Subscription assets 361,052 - - 361,052
Total capital assets being depreciated 502,326,850 1,518,819 (275,000) 503,570,669 Less accumulated depreciation
Buildings and improvements (15,775,450) (486,253) - (16,261,703) Machinery and equipment (8,572,875) (1,297,440) 275,000 (9,595,315) Infrastructure (159,213,727) (8,461,531) - (167,675,258) Land improvements (740,124) (58,889) - (799,013)
Subscription assets (24,070) (72,210) - (96,280)
Total accumulated depreciation (184,326,246) (10,376,323) 275,000 (194,427,569) Total capital assets being depreciated, net 318,000,604 (8,857,504) - 309,143,100 Total Capital Assets, net $ 325,941,537 $ (865,289) $ - $ 325,076,248 Depreciation expense was charged to the business-type functions as follows:
Business-type Activities:
Water $ 3,988,507
Wastewater 5,382,559
Solid Waste 755,151
Airport 206,817
Transit 43,289
Total business-type activities depreciation/amortization expense $ 10,376,323 55 90
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7: UNEARNED REVENUE
At June 30, 2025, components of unearned revenue were as follows:
Amount
Governmental Funds
General Fund
ARPA advance $ 1,830,263
Total Governmental Funds $ 1,830,263
Proprietary Funds
Solid Waste
Beverage Container Recycling Program advance $ 115,903
Airport
Airport Improvement Program grant advances 45,374
Total Proprietary Funds $ 161,277
NOTE 8: LONG-TERM LIABILITIES
A. Governmental Activities
Governmental activities long-term debt issued and outstanding at June 30, 2025 was comprised of the following:
Type of Indebtedness Maturity Interest Rates
Authorized
and Issued
Outstanding
June 30, 2025
LPFA Refunding Bonds Series 2016A 2037 5.69-6.12% $ 18,296,066 $ 9,980,000 Bond issuance premiums (discounts)
Series 2016A net premium 688,780
Financed purchases 1,946,900 12,170,621
Lease liability 781,572 611,598
Subscription (SBITA) liability 1,084,394 504,831
Compensated absences 3,362,698
Total Governmental Activities $ 27,318,528
56 91
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: LONG-TERM LIABILITES (CONTINUED)
The following is a summary of changes in the City's governmental long-term liabilities for the fiscal year ended June 30, 2025:
Balance at
July 1, 2024
Prior Period
Restatement Additions Reductions
Balance
June 30, 2025
Current
Portion
Governmental Activities:
Bonds, financed purchases,
leases, and SBITAs
payable:
LPFA Refunding Bonds
Series 2016A $ 11,065,000 $ - $ - $ (1,085,000) $ 9,980,000 $ 1,125,000 Premium (discount) on
bonds, net 748,785 - - (60,005) 688,780 60,006
Financed purchases 670,001 - 11,682,638 (182,018) 12,170,621 188,205 Lease liability - - 781,569 (169,971) 611,598 119,619
Subscription (SBITA) liability 534,138 - 217,299 (246,606) 504,831 187,682 Total bonds, financed
purchases, leases, and
SBITAs payable 13,017,924 - 12,681,506 (1,743,600) 23,955,830 1,680,512 Other liabilities:
Compensated absences 3,237,226 83,898 41,574 - 3,362,698 2,690,158 Total Governmental
Activities $ 16,255,150 $ 83,898 $ 12,723,080 $ (1,743,600) $ 27,318,528 $ 4,370,670 Long-term liabilities including compensated absences, net pension liability and net OPEB liability are generally liquidated by the fund incurring the liability which is primarily the General fund.
A description of the long-term liabilities related to governmental activities at June 30, 2025 follows:
LPFA Refunding Bonds Series 2016 A&B
In October 2016, the City approved the issuance of the Lincoln Public Financing Authority Revenue Refunding Bonds, Series 2016A in the aggregate principal amount of $13,355,000, and Series 2016B in the aggregate principal amount of $4,205,000 to provide funds to refinance (i) the Authority's Lease Revenue Refunding Bonds, Series 2003; (ii) the Authority's Lease Revenue Refunding Bonds, Series 2006; (iii) Airport capital improvements financed through a lease dated July 8, 2008 between CaLease Public Funding Corporation and the City, and to pay costs of issuance incurred in connection with the issuance, sale and delivery of the bonds. The net proceeds of the bonds were deposited into an irrevocable trust with an escrow agent to provide for future debt service payments on the refunded bonds. As a result, the refundable bonds are considered to be defeased, and the related liabilities for the bonds have been removed from the City's liabilities. The advance refunding was done in order to reduce debt payments in the short-term. The net present savings on the debt payments was approximately $3,147,000. 57 92
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: LONG-TERM LIABILITES (CONTINUED)
Interest on the bonds is payable on April 1 and October 1 of each year, commencing on April 1, 2017 with interest rates ranging from 1.35% to 4.00%. The bonds are payable solely from and secured by a pledge of revenues and certain other monies pledged as listed in the trust agreement. The Series 2016 A bonds mature in October 2036 and the Series 2016 B bonds matured in October 2021. Future debt service payments on the bonds are as follows:
For the Year Ending 2016A
June 30, Principal Interest
2026 $ 1,125,000 $ 345,338
2027 1,175,000 299,338
2028 1,220,000 251,438
2029 1,125,000 204,538
2030 585,000 170,338
2031 - 2035 3,285,000 502,777
2036 - 2037 1,465,000 47,568
Total $ 9,980,000 $ 1,821,335
Premium/Discount on Bonds
Net capitalized premiums (discount) on bonds related to the above issuances have been recorded in the amount of $688,780 and netted with the balance of the bonds as presented on the government-wide financial statements. The balance is amortized using the straight line method over the bond term. Net accretion for the year ended June 30, 2025 totaled $60,005.
Financed Purchases
In July 2018, the City entered into a financed purchase agreement with US Bancorp Government Leasing and Finance, Inc. in the initial amount of $1,337,394 for the purchase of fire trucks. Principal and interest payments of $157,586 are due annually until February 2028. Interest on the financed purchase agreement is 3.43%. At June 30, 2025, equipment, net of accumulated depreciation under the financed purchase agreement totaled $514,996.
In September 2021, the City entered into a financed purchase agreement with KS State Bank. in the initial amount of $220,000 for the purchase of police vehicles. Principal and interest payments of $47,242 are due annually until January 2026. Interest on the financed purchase agreement is 3.28%. At June 30, 2025, equipment acquired under the financed purchase agreement was fully depreciated.
In July 2024, the City entered into a financed purchase agreement with Banc of America Public Capital Corp. in the initial amount of $11,682,638 for the acquisition and installation of solar equipment. Principal and interest payments ranging from $266,489 to $648,996 are due semi-annually until February 2044. Interest on the financed purchase agreement is 4.368%. At June 30, 2025, installation of the equipment is in progress and $4,192,865 is included in construction in progress.
58 93
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: LONG-TERM LIABILITES (CONTINUED)
Future debt service payments on the agreements are as follows:
For the Year Ending
June 30, Principal Interest
2026 $ 188,205 $ 526,920
2027 338,521 518,435
2028 387,788 504,548
2029 283,341 488,572
2030 304,229 475,968
2031 - 2035 2,573,069 2,103,846
2036 - 2040 3,626,377 1,443,571
2041 - 2044 4,469,091 459,413
Total $ 12,170,621 $ 6,521,273
Lease Liability
As of June 30, 2025, the City has vehicles with lease payments ranging from $4,992 to $38,668 and interest rates that range from 4.2235% to 7.0907%. The total of the City's right-to-use lease assets are recorded at $781,572 with accumulated amortization of $85,280.
Future debt service payments on the leases are as follows:
For the Year Ending
June 30, Principal Interest
2026 $ 119,619 $ 31,852
2027 126,536 24,935
2028 133,873 17,597
2029 141,657 9,813
2030 89,913 2,492
Total $ 611,598 $ 86,689
Subscription Liability (SBITAs)
The City has entered into SBITAs involving various software subscriptions. The subscriptions have interest rates that range from 2.312% to 7.75%. The total of the City's SBITA assets are recorded at a cost of $1,182,970 less accumulated amortization of $600,498.
Future debt service payments on the SBITAs are as follows:
For the Year Ending
June 30, Principal Interest
2026 $ 187,682 $ 14,131
2027 176,476 12,833
2028 46,861 6,655
2029 26,100 5,025
2030 27,275 3,850
2031 - 2032 40,437 3,963
Total $ 504,831 $ 46,457
59 94
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: LONG-TERM LIABILITES (CONTINUED)
Compensated Absences
Compensated absences for governmental activities are generally liquidated by the fund where the accrued liability occurred.
Total Governmental Activities Long-Term Liabilities Future Debt Service For the Year Ending
June 30, Principal Interest
2026 $ 1,620,506 $ 918,241
2027 1,816,533 855,541
2028 1,788,522 780,238
2029 1,576,098 707,948
2030 1,006,417 652,648
2031 - 2035 5,898,506 2,610,586
2036 - 2040 5,091,377 1,491,139
2041 - 2045 4,469,091 459,413
Total $ 23,267,050 $ 8,475,754
B. Business-type Activities
Business-type activities long-term debt issued and outstanding at June 30, 2025 was comprised of the following:
Type of Indebtedness
Outstanding
June 30, 2025
Subscription (SBITA) liability $ 218,079
Compensated absences 696,004
Total Business-type Activities $ 914,083
The following is a summary of changes in the City's business-type long-term liabilities for the fiscal year ended June 30, 2025:
Balance at
July 1, 2024
Prior Period
Restatement Additions Reductions
Balance
June 30, 2025
Current
Portion
Business-Type Activities:
Subscription (SBITA) liability $ 273,931 $ - $ - $ (55,852) $ 218,079 $ 66,026 Other liabilities:
Compensated absences 538,037 7,202 150,765 - 696,004 556,803 Total Business-Type
Activities $ 811,968 $ 7,202 $ 150,765 $ (55,852) $ 914,083 $ 622,829 60 95
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: LONG-TERM LIABILITES (CONTINUED)
Subscriptions (SBITAs)
The City has entered into SBITAs involving various software subscriptions. The subscriptions have interest rates that range from 2.312% to 7.75%. The total of the City's SBITA assets are recorded at a cost of $361,052 less accumulated amortization of $96,280.
Future debt service payments on the SBITAs are as follows:
For the Year Ending June 30, Principal Interest
2026 $ 66,026 $ 5,042
2027 72,527 3,516
2028 79,526 1,839
Total $ 218,079 $ 10,397
NOTE 9: SPECIAL ASSESSMENT DEBT WITH NO CITY COMMITMENT The City reports the debt service transactions of various special assessment issues for which the City is not obligated in any manner, in Custodial funds. The debt will be paid from and is secured solely by the revenues of these special assessment districts and does not constitute an indebtedness of the City. At June 30, 2025, the principal amount of special assessment debt outstanding for which the City is not obligated was as follows:
Assessment Debt
Project
Description
Original
Amount
Outstanding
June 30, 2025
Refunding Bond, Series 2011A
Twelve Bridges Series 2004 Twelve Bridges $ 28,305,000 $ 3,255,000 Refunding Bond, Series 2011B
Twelve Bridges Series 2004 Twelve Bridges 13,495,000 1,676,000 Special Tax Refunding Bonds 2018
CFD Lincoln Crossing Project Series 2018 Lincoln Crossing 64,470,000 48,325,000 Special Tax Refunding Bonds, Series 2021
Lakeside Series 2021 Refunding Lakeside 4,510,000 4,050,000 Special Tax Revenue Bonds, Series 2013
CFD Sorrento Series 2013 Sorrento Project 5,165,000 1,105,000 Special Tax Revenue Bonds, Series 2014
CFD Sorrento Series 2014 Sorrento Project 5,680,000 5,490,000 Special Tax Revenue Bonds, Series 2017
CFD Lakeside Series 2006-1 Lakeside 6,235,000 4,690,000 Special Tax Revenue Bonds, Series 2016
CFD Sorrento Series 2005-1 Sorrento Project 8,860,000 7,970,000 Special Tax Revenue Bonds, Series 2017
CFD Foskett Ranch 2017-1 Foskett Ranch 2,975,000 1,940,000 Special Tax Bonds, Series 2022 CFD 2019-1
Independence at
Lincoln 13,225,000 13,050,000
$ 91,551,000
61 96
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10: FUND BALANCE
As prescribed by GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions” governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent. The City established the following fund balance policies:
Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. The City has classified prepaids and long-term advances as being nonspendable as these items are not expected to be converted to cash or are not expected to be converted to cash within the next year.
Restricted: Amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
Committed: Amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority. The City Council is the City's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the City Council. Once adopted, the limitation imposed remains in place until a similar action is taken to remove or revise the limitation. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.
Assigned: This classification includes amounts that are constrained by the City's intent to be used for a specific purpose but are neither restricted or committed. The City Council has authorized the City Manager and Finance Manager as officials authorized to assign fund balance to a specific purpose.
Unassigned: This classification includes the residual balance for the General Fund. The unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts.
It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund at fiscal year end of not less than $500,000. If the unassigned fund balance at fiscal year end falls below the goal, the City shall develop a restoration plan to achieve and maintain the minimum fund balance. In the event that at the end of the prior fiscal year there is an increase in the General Fund Unassigned Fund Balance, based on the annual audited financial statements, 50% of the increase will be used as identified in the General Fund Reserve Policy. The transfer of funds will occur during the budget process following each year in which an increase occurs.
The accounting policies of the City consider restricted fund balance to have been spent first when an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds.
62 97
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10: FUND BALANCE (CONTINUED)
The fund balances for all major and nonmajor governmental funds as of June 30, 2025, were distributed as follows:
General
Fund
Public
Facility
Element
(PFE)
Water
Connections
Special
Assessment
Districts
Development
Services
Low/
Moderate
Income
Housing
Non-Major
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Prepaid items $ 1,725,829 $ - $ 40,000,000 $ 35,760 $ 44,963 $ - $ 49,057 $ 41,855,609 Advances to other
funds 4,675,090 - - - - - 526,955 5,202,045
Endowments -
principal - - - - - - 356,659 356,659
Total Nonspendable 6,400,919 - 40,000,000 35,760 44,963 - 932,671 47,414,313 Restricted
Public facility
improvements - 50,364,122 - - - - - 50,364,122
Water capacity
expansion - - 26,948,122 - - - - 26,948,122
Public improvements
and maintenance - - - 19,481,049 - - - 19,481,049
Parks and recreation - - - - - - 1,820,415 1,820,415
Streets and roads - - - - - - 11,352,027 11,352,027
Grants - - - - - - 51,476 51,476
Debt service - - - - - - 2,223,732 2,223,732
Loan programs - - - - - - 2,893,858 2,893,858
Capital projects 7,925,302 - - - - - 2,859,614 10,784,916 Housing - - - - - 1,804,626 - 1,804,626
Oak tree
replacement - - - - - - 481,812 481,812
Pension 3,695,412 - - - - - - 3,695,412
Endowments - open
space preservation - - - - - - 232,208 232,208
Total Restricted 11,620,714 50,364,122 26,948,122 19,481,049 - 1,804,626 21,915,142 132,133,775 Committed
Operating reserve 6,760,956 - - - - - - 6,760,956
Capital replacement 1,009,548 - - - - - - 1,009,548
Total Committed 7,770,504 - - - - - - 7,770,504
Assigned
Fees for future
improvements - - - - 21,704,885 - - 21,704,885
Total Assigned - - - - 21,704,885 - - 21,704,885
Unassigned 13,714,390 - - - - - (277,471) 13,436,919
Total Fund Balance $ 39,506,527 $ 50,364,122 $ 66,948,122 $ 19,516,809 $21,749,848 $1,804,626 $22,570,342 $ 222,460,396 63 98
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 11: DEFICIT FUND BALANCE / UNRESTRICTED NET POSITION Governmental Funds
As of June 30, 2025, the following governmental funds had a fund balance deficit:
Governmental Fund Amount
CDBG-CV $ 4,910
Federal Grants 272,561
The deficits are a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues.
NOTE 12: DEFINED BENEFIT PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors five plans (three miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan 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 (age 62 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.
The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The rate plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:
Miscellaneous
Hire Date
Prior to
February 13, 2011
Between
February 13, 2011 and
January 1, 2013
On or After
January 1, 2013
Tier I Tier II PEPRA
Benefit Formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 - 55 50 - 60 52 - 62
Monthly Benefits, as a % of Eligible
Compensation 2.000 - 2.700% 1.092 - 2.418% 1.000 - 2.500% Required Employee Contribution Rate 8.00% 7.00% 7.75%
Required Employer Contribution Rate 16.02% 10.15% 7.87% Required UAL Contribution $1,756,338 $7,364 $20,553
64 99
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Safety
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
On or After
January 1, 2013
Tier I PEPRA Fire PEPRA Police
Benefit Formula 3.0% @ 50 2.7% @ 57 2.7% @ 57
Final compensation Three-year average Three-year average Three-year average Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 50 - 57 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.0% - 2.7% 2.0% - 2.7%
Required Employee Contribution Rate 9.00% 13.75% 13.75% Required Employer Contribution Rate 25.86% 13.76% 13.76% Required UAL Contribution $981,368 $820 $6,072
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City's contributions to the Plan for the year ending June 30, 2025 were $5,019,019.
B. Pension Liabilities, Pension Expense, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $31,148,069. $24,249,982 of the liability is reported in governmental activities and $6,898,087 of the liability is reported in business-type activities.
The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:
Proportion - June 30, 2023 0.25502%
Proportion - June 30, 2024 0.25684%
Change - Increase 0.00182%
65 100
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12: DEFINED BENEFIT PENSION PLAN (CONTINUED)
For the year ended June 30, 2025, the City recognized pension expense of $5,270,561. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to the measurement date $ 5,019,019 $ - Changes of assumptions 786,924 -
Differences between expected and actual experience 2,630,839 95,846 Differences between projected and actual investment earnings 1,674,752 - Differences between employer's contributions and proportionate share of contributions 538,536 293,076
Change in employer's proportion 709,491 466,488
Total $ 11,359,561 $ 855,410
$5,019,019 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
For the Fiscal Year
Ending June 30,
Net Deferred Outflows
(Inflows) of Resources
2026 $ 1,900,977
2027 4,036,420
2028 121,322
2029 (573,587)
Actuarial Assumptions
The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:
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 2.30%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.90% net of pension plan investment expenses; includes inflation
Mortality (1) Derived using CalPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.30% until purchasing power protection allowance floor on purchasing power applies
(1) The mortality table used was developed based on CalPERS' specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report available on CalPERS website. 66 101
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Changes in Assumptions
For the measurement period June 30, 2024, there were no changes in assumptions.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. 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.
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 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 20-year market return expectations as well as the expected pension fund (PERF) cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
The table below reflects long-term expected real rates of return by asset class.
Asset Class
Assumed
Asset
Allocation
Real Return
Years 1-10
(a,b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.0%) (0.59%)
(a) An expected inflation of 2.3% used for this period
(b) Figures are based on the 2021-22 Asset Liability Management study. 67 102
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for the Plan as of the measurement date, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate:
Discount Rate -1%
(5.90%)
Current Discount
Rate
(6.90%)
Discount Rate +1%
(7.90%)
Net Pension Liability $ 49,599,014 $ 31,148,069 $ 16,004,269 Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
NOTE 13: OTHER POST EMPLOYMENT BENEFITS
Plan Description
Plan administration: The City administers a single employer defined benefit other postemployment healthcare (OPEB) plan providing health plan coverage to eligible retired employees and their eligible dependents. The City maintains the same medical plans for its retirees as for its active employees.
Benefits provided: Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of service. For retirees hired prior to January 1, 1998, the City pays the full premium of the retiree, spouse, and eligible dependents. Supplemental contributions are paid from a City-funded Retirement Medical Account to the extent necessary to achieve compliance with PEMHCA's equal contribution method with respect to these retirees. For all others, the City pays 50% of the applicable "State Formula" dollar amount for retirees with 10 years of service, plus an additional 5% per year of service, to a maximum of 100% after 20 years. Benefits are paid for the lifetime of the retiree, spouse or surviving spouse, and dependents up to the age of 26. The 2025 State Formula monthly dollar amounts are $1,060 single, $2,039 two-party, and $2,551 family. In addition, the City pays a
0.33%-of-premium administrative fee to PEMHCA for each retiree.
The City reports the financial activity of the other post-employment benefits (OPEB) in the fiduciary OPEB Trust Fund, and no separate financial report is prepared.
Employees Covered
As of the June 30, 2024 measurement period, membership consisted of the following:
Active plan members 192
Inactive plan members or beneficiaries currently receiving benefit payments 77 Inactive plan members entitled to, but not yet receiving benefits 19 Total 288
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements. Total contributions for the year ended June 30, 2025 were $3,501,911
68 103
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 13: OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Net OPEB Liability
The City's net OPEB liability ("NOL") was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability was determined using the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:
Funding Method Entry Age Normal Cost, level percent of pay Long Term Return on Assets 6.00%, net of plan investment expenses and including inflation Discount Rate 6.00%
Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation.
Assumed Wage Inflation 3.00% per annum
Salary Increases 3.00% per annum
General Inflation Rate 2.50% per annum
Investment Rate of Return 6.00%, net of OPEB plan investment expense Healthcare Cost Trend Rate 6.5% in 2025, grading down to 3.9% by 2075 Mortality rates were based on MacLeod Watts Scale 2022 applied generationally from 2017.
Demographic actuarial assumptions used in the June 30, 2023 valuation were based on the CalPERS 2021 Experience Study using data from 1997 to 2019, except for a different basis used to project future mortality improvements.
Changes in Assumptions
For the measurement period June 30, 2024, there were no changes in assumptions.
Expected Long-term Return on Trust Assets
The expected long-term return on trust assets was derived from information provided by the City's Trust Asset Manager summarized in the following table:
Correlation Matrix
Asset Class/Investment
Geometric
Return Volatility
Domestic
Equity
Fixed
Income
International
Equity
Real
Assets
Domestic Equity 8.30 % 14.90 % 100.00 % 22.00 % 58.00 % 69.00 % Fixed Income 3.80 % 5.20 % 22.00 % 100.00 % 15.00 % 20.00 % International Equity 7.20 % 15.40 % 58.00 % 15.00 % 100.00 % 52.00 % Real Assets 6.10 % 12.30 % 69.00 % 20.00 % 52.00 % 100.00 % The given geometric returns were increased upward 10 bps to adjust the inflation assumption used to develop the projected returns from 2.4% to the 2.5% inflation assumption. 50 bps was then subtracted to account for assumed trust investment fees. The target allocation and estimates of geometric returns for each major asset class and the portfolio are summarized in the table below:
Asset
Class/Investment
Target
Allocation
Net Geometric
Return
Domestic Equity 34.00% 7.90%
Fixed Income 39.00% 3.40%
International Equity 18.36% 6.80%
Real Assets 8.64% 5.70%
69 104
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 13: OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Discount Rate
GASB 75 requires a discount rate that reflects the following:
a. The long-term expected rate of return on OPEB plan investments - to the extent that the OPEB plan's fiduciary net position (if any) is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return;
b. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher - to the extent that the conditions in (a) are not met.
To determine a resulting single (blended) rate, the amount of the plan's projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. The discount rate used to measure the City's total OPEB liability is based on these requirements and the following information:
Reporting
Date
Measurement
Date
Long-Term Expected Return
of Plan Investments (if any)
Discount
Rate
June 30, 2025 June 30, 2024 6.00% 6.00%
Changes in the Net OPEB Liability
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability/(Asset)
(c) = (a) - (b)
Balance June 30, 2023 (measurement date) $ 35,403,722 $ 11,423,741 $ 23,979,981 Service cost 1,721,545 - 1,721,545
Interest cost 2,190,442 - 2,190,442
Employer contributions - 2,835,028 (2,835,028)
Net investment income - 732,211 (732,211)
Change due to investment experience - 927,615 (927,615) Benefit payments (1,235,791) (1,235,791) -
Administrative expense - (39,675) 39,675
Net change during 2023-24 2,676,196 3,219,388 (543,192) Balance at June 30, 2024 (measurement date) $ 38,079,918 $ 14,643,129 $ 23,436,789 Plan fiduciary net position as a percentage of the total OPEB liability 38.45 % Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease
(5.00%)
Current Discount
Rate
(6.00%)
1% Increase
(7.00%)
Net OPEB Liability $ 28,748,790 $ 23,436,789 $ 19,072,280 70 105
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 13: OTHER POST EMPLOYMENT BENEFITS (CONTINUED)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trend rate:
1% Decrease
Current Healthcare
Cost Trend Rate 1% Increase
Net OPEB Liability $ 18,476,972 $ 23,436,789 $ 29,599,319 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $4,316,585. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 3,501,911 $ - Changes of assumptions 1,965,717 1,066,147
Differences between expected and actual experience 1,169,500 1,328,088 Net difference between projected and actual return on investments - 25,658 Total $ 6,637,128 $ 2,419,893
$3,501,911 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 subsequent fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as follows:
For the
Fiscal Year
Ending June 30,
Recognized
Net Deferred Outflows
(Inflows)
of Resources
2026 $ 1,067,533
2027 555,977
2028 (805,296)
2029 (408,185)
2030 113,492
Thereafter 191,803
NOTE 14: ENDOWMENTS
The City’s permanent funds account for the financial activities and balances of donor-restricted endowments for open space and wetland preservation and maintenance. Interest earned on the funds may be used pursuant to California Government Code for purposes that meet the criteria of the endowments. It is the City’s policy for the City Council to authorize all approved expenditures according to the trust. At June 30, 2025, the nonspendable amount was $356,659 and the spendable amount was $232,208.
71 106
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 15: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
There is no claims liability to be reported based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
There were no significant reductions in insurance coverage from prior years and there have been no settlements exceeding the insurance coverage for each of the past three fiscal years.
The City is a member of Northern California Cities Self-Insurance Fund (NCCSIF), a joint powers agency which provides the City with a shared risk layer of coverage above the self-insured retention amount for liability and workers’ compensation. The City pays an annual premium to NCCSIF for its insurance coverage.
General Liability Coverage: Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city, including Lincoln, self-insures for the first $50,000 of each loss. Participating cities share in loss occurrences in excess of $50,000 up to a maximum of $500,000. Premiums accrue based on the ultimate cost of the experience of the group of Cities. Coverage in excess of $500,000 is provided through the California Joint Powers Insurance Risk Management Authority, a joint powers authority organized to provide excess coverage for its members.
Workers’ Compensation Coverage: Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. The City self-insured for the first $100,000 of each loss and has purchased excess coverage with limits of $5,000,000 per occurrence.
NCCSIF is a joint powers agency organized in accordance with Article 1, Chapter 5, Division 7, Title 1 of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The Authority provides claims processing administrative services, risk management services, and actuarial studies. It is governed by a member from each city. The City of Lincoln council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The Authority is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance.
Upon termination of the JPA agreement, all property of the Authority will vest in the respective parties which theretofore transferred, conveyed or leased said property to the Authority. Any surplus of funds will be returned to the parties in proportion to actual balances of each equity.
The Authority establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors. A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.
The City’s investment in the NCCSIF of $624,485 is recorded in the funds as prepaid insurance. The net change is shown as an income or expenditure/expense item in the funds. 72 107
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16: EXCESS EXPENDITURES AND TRANSFERS OVER APPROPRIATIONS The following funds incurred expenditures and transfers in excess of appropriations in the following amounts for the year ended June 30, 2025:
Fund
Excess
Expenditures
and Transfers
Water Connections $ 8,829
Low/Moderate Income Housing 841
Park In-Lieu 18,642
Police Grants 8,127
Revitalization and Rehabilitation Loans 449
The excess expenditures were covered by available fund balance in the funds.
NOTE 17: CONTINGENCIES AND COMMITMENTS
Grant Awards
The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any disallowed claims, including amounts already collected, may constitute a liability of the appreciable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.
Litigation
The City is involved in several pending lawsuits of a nature common to many similar jurisdictions that are being covered by insurance or third party indemnity obligations. City management estimates that potential claims against the City for any lawsuits not covered by insurance will not have a material adverse effect on the financial statements of the City.
Contracts
At June 30, 2025, the City had construction contracts outstanding of approximately $11,074,439 related to various capital projects.
Contingent Developer Liabilities
JMC Pay-As-You-Go CFD No. 2006-1 Lakeside Improvement Area 1 In 2006, the City of Lincoln City Council approved the formation of Community Facilities District (CFD) No. 2006-1 Lakeside pursuant to the Mello Roos Improvement District Act of 1982, for the purpose of incurring bonded indebtedness to fund public improvements on land contained there within. An improvement area within the CFD was established as “Area 1”.
In 2008 the City entered into an Acquisition, Funding, and Disclosure Agreement with John Muir Construction, Inc. (JMC) to construct residential development, including infrastructure and improvements on property located within Area 1 of the CFD. The infrastructure and public improvements to be constructed by JMC were anticipated to exceed the funding generated by the sale of Bonds, net formation fees and costs, and to provide additional financing thereof, the City agreed to a ”Pay-As-You-Go” clause which details the agreement between the parties for the City to annually reimburse the developer for any unfunded and approved costs with any excess Special Taxes on hand within the district. The City further agreed to continue annual tax levies within the district until all such unfunded costs of JMC were fully reimbursed.
73 108
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 17: CONTINGENCIES AND COMMITMENTS (CONTINUED)
Within the Area 1 Improvement District, a total of $3,261,095.09 in costs were approved by the City for reimbursement to JMC for the construction of critical improvements and fees paid. As of June 30, 2025, the remaining balance due to JMC was $2,517,516. City management considers the amount owed to be contingent on certain future events and therefore has not recorded a liability on the statement of fiduciary net position.
JMC Pay-As-You-Go CFD No. 2006-1 Lakeside Improvement Area 2 In 2006 the City of Lincoln City Council approved the formation of Community Facilities District (CFD) No. 2006-1 Lakeside pursuant to the Mello Roos Improvement District Act of 1982, for the purpose of incurring bonded indebtedness to fund public improvements on land contained there within. An improvement area within the CFD was established as “Area 2”.
In 2008 the City entered into an Acquisition, Funding, and Disclosure Agreement with John Muir Construction, Inc. (JMC) to construct residential development, including infrastructure and improvements on property located within Area 2 of the CFD. The infrastructure and public improvements to be constructed by JMC were anticipated to exceed the funding generated by the sale of Bonds, net formation fees and costs, and to provide additional financing thereof, the City agreed to a ”Pay-As-You-Go” clause which details the agreement between the parties for the City to annually reimburse the developer for any unfunded and approved costs with any excess Special Taxes on hand within the district. The City further agreed to continue annual tax levies within the district until all such unfunded costs of JMC were fully reimbursed.
Within the Area 2 Improvement District, a total of $2,293,028.30 in costs were approved by the City for reimbursement to JMC for the construction of critical improvements and fees paid. As of June 30, 2025, the remaining balance due to JMC was $1,279,364. City management considers the amount owed to be contingent on certain future events and therefore has not recorded a liability on the statement of fiduciary net position.
Del Webb/Pulte Critical Facilities Fees
In 1998 the City entered into a developer agreement with Del Webb to clarify the terms of development between the developer and the City for the Sun City Lincoln Hills, active adult development project. Within the agreement, the City identified certain critical public facilities to be constructed as part of the development project that would also benefit users outside of the identified project area. Due to the extended benefit, if constructed by Del Webb these critical facilities would, as agreed by both parties, entitle the developer to Public Facility Element (PFE) fee credits, equal to the cost of construction of the improvements, which was later determined to be $8,092,551.
The City’s agreement with Del Webb allowed the developer to apply fee credits to building permits and also to receive semi-annual reimbursements based on a formulaic calculation of permit revenue received periodically by the City.
In 2012, the Del Webb developer agreement was terminated and replaced by an agreement with Pulte Home Corporation. At that time, the balance due to Pulte for the remaining PFE credits was $2,692,290 and an additional $270,457.50 was due for wastewater interceptor oversizing. As of June 30, 2025, the balance due to the developer was $1,104,936 for PFE fees and $0 for wastewater oversizing. City management considers the amount owed to be contingent on certain future events and therefore has not recorded a liability on the government-wide statement of net position.
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY In accordance with Assembly Bill 1X26 and Assembly Bill 1434, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. The activity of the Successor Agency Trust for assets of the Former Redevelopment Agency (Successor Agency) is recorded in a private purpose trust fund.
74 109
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the Successor Agency Trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. Amounts owed to the City are included in Advances to Successor Agency and consisted of $2,089,476 due to the Water Connections fund.
Capital assets activity for the year ended June 30, 2025, was as follows:
Balance
July 1, 2024 Additions Retirements
Balance
June 30, 2025
Capital assets, not being depreciated
Land $ 2,544,731 $ - $ - $ 2,544,731
Total capital assets, not being depreciated 2,544,731 - - 2,544,731 Capital assets, net $ 2,544,731 $ - $ - $ 2,544,731
The following is a summary of changes in long-term liabilities for the year ended June 30, 2025:
Balance at
July 1, 2024 Additions Reductions
Balance
June 30, 2025
Current
Portion
Tax Allocation Refunding
Series 2016A $ 3,300,000 $ - $ (845,000) $ 2,455,000 $ 885,000 Premium (discount) on bonds, net 220,420 - (23,202) 197,218 23,202 Total Long-Term Liabilities $ 3,520,420 $ - $ (868,202) $ 2,652,218 $ 908,202 A description of the long-term liabilities related to the Successor Agency at June 30, 2025 follows:
Tax Allocation Refunding Bonds Series 2016 A&B
In September 2016, the Oversight Board of the Successor Agency approved the issuance of the Tax Allocation Refunding Bonds, Series 2016A in the aggregate principal amount of $6,100,000, and Series 2016B in the aggregate principal amount of $2,105,000 to provide funds to (i) refund certain obligations of the dissolved redevelopment agency of the City that were incurred in connection with certain redevelopment activities of the dissolved redevelopment agency; (ii) to pay the premiums for a policy of bond issuance and a municipal bond debt service insurance policy; and (iii) to pay the cost of issuing the Series 2016 bonds.
The net proceeds of the bonds were deposited into an irrevocable trust with an escrow agent to provide for future debt service payments on the refunded bonds. As a result, the refunded bonds are considered to be defeased, and the related liabilities for the bonds have been removed from the Successor Agency's liabilities. The refunding was done in order to reduce debt payments in the short-term. The net present savings on the debt payments was approximately $589,000.
75 110
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 18: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
Interest on the bonds is payable on March 15 and September 15 of each year, commencing on March 15, 2017 with interest rates ranging from 1.60% - 5.00%. The Series 2016 bonds are payable from and secured by the tax revenues deposited in the redevelopment property tax trust fund. The Series 2016A bonds mature in September 2033 while the Series 2016B bonds matured in September 2020. Future debt service payments on the bonds are as follows:
For the Year Ending 2016A
June 30, Principal Interest
2026 $ 885,000 $ 74,181
2027 715,000 41,331
2028 110,000 28,888
2029 115,000 25,229
2030 115,000 21,276
2031 - 2034 515,000 39,702
Total $ 2,455,000 $ 230,607
NOTE 19: RESTATEMENT OF BEGINNING BALANCES
During the fiscal year ending June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. These changes were incorporated in the financial statements and are reported as a change in accounting principle. The effects of the change in accounting principle are summarized in the "Restatement - GASB 101 Implementation" column in the following table.
In 2025, the City determined the following items had been incorrectly recorded in a prior year:
1. Governmental activities and governmental fund expenditures were recorded in an incorrect fund;
2. Governmental activities and governmental fund revenues were not recorded in the proper period;
3. Fiduciary fund expenditures were incorrectly recorded.
The effects of these changes are summarized in the "Adjustments" column in the following table.
Net
Position/Fund
Balance June
30, 2025, as
Previously
Reported
Restatement -
GASB 101
Implementation Adjustments
Net
Position/Fund
Balance June
30, 2025, as
Restated/
Adjusted
Government-Wide
Governmental Activities $ 481,943,063 $ (83,898) $ 16,575,721 $ 498,434,886 Business-type Activities 380,246,018 (7,201) - 380,238,817 Total Government-Wide $ 862,189,081 $ (91,099) $ 16,575,721 $ 878,673,703 Governmental Funds
General Fund $ 30,362,671 $ - $ (42,047) $ 30,320,624
Public Facility Element (PFE) 35,907,413 - 11,930,834 47,838,247 Water Connections 57,213,232 - 4,686,934 61,900,166
Total Governmental Funds $ 123,483,316 $ - $ 16,575,721 $ 140,059,037 76 111
CITY OF LINCOLN
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 19: RESTATEMENT OF BEGINNING BALANCES (CONTINUED)
Net
Position/Fund
Balance June
30, 2025, as
Previously
Reported
Restatement -
GASB 101
Implementation Adjustments
Net
Position/Fund
Balance June
30, 2025, as
Restated/
Adjusted
Enterprise Funds
Water $ 191,730,132 $ (1,705) $ - $ 191,728,427
Wastewater 166,660,345 (1,114) - 166,659,231
Solid Waste 20,905,439 (4,267) - 20,901,172
Transit 576,360 (115) - 576,245
Total Enterprise Funds $ 862,189,081 $ (91,099) $ 16,575,721 $ 878,673,703 Total Internal Service Funds $ 5,327,905 $ (23,347) $ - $ 5,304,558 Total Custodial Funds $ 43,805,573 $ - $ (16,617,768) $ 27,187,805 NOTE 20: SUBSEQUENT EVENTS
On November 6, 2025, the City issued $9,145,000 of City of Lincoln Community Facilities District No. 2019-1 (Independence at Lincoln) Special Tax Bonds, Series 2025 to finance certain public improvements. The interest rate on the bonds is 5 percent and the maturity date is September 1, 2055.
On December 2, 2025, the City issued $11,995,000 of City of Lincoln Community Facilities District No. 2025-1 (Joiner Ranch East) Special Tax Bonds, Series 2025 to finance certain public improvements. The interest rate on the bonds ranges from 4 percent to 5.05 percent and the maturity date is September 1, 2055.
Management has evaluated subsequent events through March 16, 2026 the date on which the financial statements were available for issuance. Management has determined no other subsequent events requiring disclosure have occurred.
77 112
REQUIRED SUPPLEMENTARY INFORMATION
113
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Prepared for the City's Miscellaneous and Safety Plan, a Cost Sharing Defined Benefit Pension Plan As of June 30, 2025
Last 10 Years
Measurement Period
2024 2023 2022 2021 2020
Proportion of the net pension
liability 0.25684 % 0.25502 % 0.25046 % 0.24620 % 0.22617 % Proportionate share of the net
pension liability $ 31,148,069 $ 31,814,111 $ 28,929,618 $ 13,315,051 $ 24,608,405 Covered payroll $ 19,560,322 $ 16,856,371 $ 14,436,812 $ 13,343,483 $ 13,246,028 Proportionate share of the net
pension liability as a
percentage of covered
payroll 159.24 % 188.74 % 200.39 % 99.79 % 185.78 %
Plan fiduciary net position as a
percentage of the total
pension liability 78.08 % 76.21 % 76.68 % 88.30 % 75.10 % Notes to Schedule:
Changes in assumptions. In 2024 and 2023, there were no changes in assumptions. In 2022, the accounting discount rate was reduced from 7.15% to 6.90%. In 2021, 2020 and 2019, there were no changes in assumptions.
In 2018, assumptions for individual salary increases and overall payroll growth are reduced from 3.00 percent to 2.75 percent. In 2017, the discount rate was lowered from 7.65 percent to 7.15 percent. In 2016, there were no changes.
In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
78 114
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) Prepared for the City's Miscellaneous and Safety Plan, a Cost Sharing Defined Benefit Pension Plan As of June 30, 2025
Last 10 Years
Measurement Period
2019 2018 2017 2016 2015
Proportion of the net pension
liability 0.22051 % 0.21781 % 0.21651 % 0.21666 % 0.22580 % Proportionate share of the net
pension liability $ 22,596,016 $ 20,988,366 $ 21,472,079 $ 18,748,220 $ 15,498,852 Covered payroll $ 12,523,804 $ 12,408,728 $ 11,448,542 $ 11,091,872 $ 9,853,264 Proportionate share of the net
pension liability as a
percentage of covered
payroll 180.42 % 169.14 % 187.55 % 169.03 % 157.30 %
Plan fiduciary net position as a
percentage of the total
pension liability 75.30 % 73.69 % 73.29 % 74.06 % 78.40 % 79 115
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS
Prepared for the City's Miscellaneous and Safety Plan, a Cost Sharing Defined Benefit Pension Plan As of June 30, 2025
Last 10 Years
Fiscal Year-End
2025 2024 2023 2022 2021
Contractually required
contribution (actuarially
determined) $ 5,019,019 $ 4,500,524 $ 4,115,514 $ 3,597,502 $ 3,286,549 Contributions in relation to the
actuarially determined
contributions 5,019,019 4,500,524 4,115,514 3,597,502 3,286,549 Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 20,497,548 $ 19,560,322 $ 16,856,371 $ 14,436,812 $ 13,343,483 Contributions as a percentage
of covered payroll 24.49 % 23.01 % 24.42 % 24.92 % 24.63 % 80 116
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS (CONTINUED)
Prepared for the City's Miscellaneous and Safety Plan, a Cost Sharing Defined Benefit Pension Plan As of June 30, 2025
Last 10 Years
Fiscal Year-End
2020 2019 2018 2017 2016
Contractually required
contribution (actuarially
determined) $ 2,951,400 $ 2,357,589 $ 2,387,695 $ 2,413,504 $ 2,325,521 Contributions in relation to the
actuarially determined
contributions 2,951,400 2,357,589 2,387,695 2,413,504 2,325,521 Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 13,246,028 $ 12,523,804 $ 12,408,728 $ 11,448,542 $ 11,091,872 Contributions as a percentage
of covered payroll 22.28 % 18.82 % 19.24 % 21.08 % 20.97 % 81 117
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS For the Measurement Periods Ended June 30
Last 10 Years*
2024 2023 2022 2021
Total OPEB liability
Service cost $ 1,721,545 $ 1,287,049 $ 1,249,562 $ 1,351,867 Interest 2,190,442 2,026,106 1,898,945 1,965,766
Actual vs. expected experience - 678,170 - (2,850,248)
Changes of assumptions - 308,078 - (2,288,095)
Benefit payments (1,235,791) (1,106,878) (1,129,799) (1,054,899) Net change in total OPEB liability 2,676,196 3,192,525 2,018,708 (2,875,609) Total OPEB liability, beginning 35,403,722 32,211,197 30,192,489 33,068,098 Total OPEB liability, ending (a) $ 38,079,918 $ 35,403,722 $ 32,211,197 $ 30,192,489 Plan fiduciary net position
Contributions - employer $ 2,835,028 $ 2,588,311 $ 2,829,392 $ 2,838,692 Net investment income 1,659,826 842,356 (2,151,414) 1,704,885 Benefit payments (1,235,791) (1,106,878) (1,129,799) (1,054,899) Administrative expenses (39,675) (31,493) (30,751) (21,933) Net change in plan fiduciary net position 3,219,388 2,292,296 (482,572) 3,466,745 Plan fiduciary net position, beginning 11,423,741 9,131,445 9,614,017 6,147,272 Plan fiduciary net position, ending (b) $ 14,643,129 $ 11,423,741 $ 9,131,445 $ 9,614,017 Net OPEB liability, ending (a) - (b) $ 23,436,789 $ 23,979,981 $ 23,079,752 $ 20,578,472 Plan fiduciary net position as a percentage
of the total OPEB liability 38.45 % 32.27 % 28.35 % 31.84 % Covered-employee payroll $ 23,197,469 $ 19,926,982 $ 17,459,086 $ 15,553,955 Net OPEB liability as a percentage of
covered-employee payroll 101.03 % 120.34 % 132.19 % 132.30 % Notes to Schedule:
Changes of assumptions: In the June 30, 2023 valuation, the long-term return on assets was adjusted to 6.00% and the discount rate was adjusted to 5.70%. In the June 30, 2021 valuation, the long-term return on assets was adjusted to 6.15% and the discount rate was adjusted to 5.85%. The discount rate was changed from 7.00 percent to
5.80 percent for the measurement period ended June 30, 2019. * Schedule is intended to show information for ten years. Fiscal year 2018 was the first year of implementation, therefore only eight years are shown. Additional years' information will be displayed as it becomes available. 82 118
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS (CONTINUED) For the Measurement Periods Ended June 30
Last 10 Years*
2020 2019 2018 2017
Total OPEB liability
Service cost $ 1,312,491 $ 458,435 $ 458,434 $ 428,445
Interest 1,838,522 1,268,915 1,170,689 1,108,069
Actual vs. expected experience - 3,219,910 - -
Changes of assumptions - 8,596,918 - -
Benefit payments (938,156) (715,734) (642,049) (641,837) Net change in total OPEB liability 2,212,857 12,828,444 987,074 894,677 Total OPEB liability, beginning 30,855,241 18,026,797 17,039,723 16,145,046 Total OPEB liability, ending (a) $ 33,068,098 $ 30,855,241 $ 18,026,797 $ 17,039,723 Plan fiduciary net position
Contributions - employer $ 1,918,161 $ 1,680,769 $ 1,387,317 $ 641,837 Net investment income 170,678 263,013 232,736 265,305
Benefit payments (938,156) (715,734) (642,049) (641,837) Administrative expenses (15,990) (13,083) (32,510) (31,048) Net change in plan fiduciary net position 1,134,693 1,214,965 945,494 234,257 Plan fiduciary net position, beginning 5,012,579 3,797,614 2,852,120 2,617,863 Plan fiduciary net position, ending (b) $ 6,147,272 $ 5,012,579 $ 3,797,614 $ 2,852,120 Net OPEB liability, ending (a) - (b) $ 26,920,826 $ 25,842,662 $ 14,229,183 $ 14,187,603 Plan fiduciary net position as a percentage
of the total OPEB liability 18.59 % 16.25 % 21.07 % 16.74 % Covered-employee payroll $ 15,063,799 $ 14,551,020 $ 14,446,929 $ 13,889,533 Net OPEB liability as a percentage of
covered-employee payroll 178.71 % 177.60 % 98.49 % 102.15 % 83 119
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF OPEB CONTRIBUTIONS
For the Fiscal Year Ended June 30
Last 10 Years*
2025 2024 2023 2022
Actuarially Determined Contribution (ADC) $ 3,529,623 $ 2,774,394 $ 2,693,586 $ 2,973,969 Contributions in relation to the ADC (3,501,911) (2,835,028) (2,588,311) (2,829,392) Contribution deficiency (excess) $ 27,712 $ (60,634) $ 105,275 $ 144,577 Covered-employee payroll $ 24,602,731 $ 23,197,469 $ 19,926,982 $ 17,459,086 Contributions as a percentage of coveredemployee payroll 14.23% 12.22% 12.99% 16.21% * Schedule is intended to show information for ten years. Fiscal year 2018 was the first year of implementation, therefore only eight years are shown. Additional years' information will be displayed as it becomes available. 84 120
CITY OF LINCOLN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF OPEB CONTRIBUTIONS (CONTINUED)
For the Fiscal Year Ended June 30
Last 10 Years*
2021 2020 2019 2018
Actuarially Determined Contribution (ADC) $ 2,887,227 $ 1,918,161 $ 1,291,605 $ 1,222,832 Contributions in relation to the ADC (2,838,692) (1,918,161) (1,680,769) (1,461,479) Contribution deficiency (excess) $ 48,535 $ - $ (389,164) $ (238,647) Covered-employee payroll $ 15,553,955 $ 15,063,799 $ 14,551,020 $ 14,446,929 Contributions as a percentage of coveredemployee payroll 18.25% 12.73% 11.55% 10.12% 85 121
CITY OF LINCOLN
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Taxes and assessments $ 24,192,509 $ 24,792,509 $ 23,711,392 $ (1,081,117) Licenses and permits 1,716,900 1,724,900 1,686,404 (38,496) Intergovernmental 1,528,285 6,524,324 4,219,817 (2,304,507) Fines and forfeitures 82,000 140,000 117,130 (22,870)
Use of money and property 119,376 119,376 1,499,836 1,380,460 Charges for services 2,462,217 2,975,217 3,150,243 175,026 Other revenues 349,772 399,772 551,391 151,619
Total Revenues 30,451,059 36,676,098 34,936,213 (1,739,885)
EXPENDITURES
Current:
General Government
Administration allocation 4,890,220 6,644,358 4,744,034 1,900,324 City council 250,178 250,178 279,098 (28,920)
City treasurer 8,478 8,478 8,741 (263)
City attorney 323,607 622,941 762,391 (139,450)
City manager administration 575,000 824,300 840,890 (16,590) Human resources 48,000 48,000 59,058 (11,058)
Economic development 374,480 820,444 678,472 141,972
Administrative services 67,400 142,400 117,720 24,680
IT 63,781 523,601 345,465 178,136
Finance 688,098 696,619 714,453 (17,834)
Total General Government 7,289,242 10,581,319 8,550,322 2,030,997 Public Safety
Fire operations 8,738,607 8,969,927 9,034,860 (64,933)
Police operations 9,746,969 9,971,280 9,737,590 233,690 Total Public Safety 18,485,576 18,941,207 18,772,450 168,757 Public Works and Facilities
Streets 800,000 810,000 97,238 712,762
Parks 318,900 323,368 322,665 703
Facilities maintenance 1,166,723 1,419,346 1,162,335 257,011 Fleet maintenance 538,128 535,743 422,072 113,671
Total Public Works 2,823,751 3,088,457 2,004,310 1,084,147 Culture and Recreation
Recreation and administration 649,274 679,274 540,031 139,243 Adult sports 115,619 115,619 95,987 19,632
Youth sports 250,046 250,046 228,053 21,993
Community classes/facility rental 229,882 229,882 352,106 (122,224) Special events 122,719 122,719 107,967 14,752
Contract classes 99,932 96,932 62,900 34,032
Aquatic programs 189,402 189,402 182,798 6,604
Total Culture and Recreation 1,656,874 1,683,874 1,569,842 114,032 86 122
CITY OF LINCOLN
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (CONTINUED)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
Urban Development and Housing
Development services administration 105,958 105,958 120,330 (14,372) Planning 52,575 314,796 44,520 270,276
Engineering 97,839 134,928 105,897 29,031
Building 119,601 119,601 70,837 48,764
Total Urban Development and Housing 375,973 675,283 341,584 333,699 Education
Twelve Bridges library 984,723 1,241,455 1,151,961 89,494 Total Education 984,723 1,241,455 1,151,961 89,494
Capital Outlay
City attorney - - 53,844 (53,844)
Information technology 27,825 183,743 183,743 -
Finance - - 315,130 (315,130)
Engineering - 4,422,698 4,192,865 229,833
Parks - 27,302 23,955 3,347
Public works - 170,184 134,102 36,082
Fleet 1,100,000 1,464,954 107,038 1,357,916
Police - 74,151 240,218 (166,067)
Total Capital Outlay 1,127,825 6,343,032 5,250,895 1,092,137 Debt Service:
Principal 200,602 329,853 300,015 29,838
Interest 28,794 305,332 309,168 (3,836)
Total Debt Service 229,396 635,185 609,183 26,002
Total Expenditures 32,973,360 43,189,812 38,250,547 4,939,265 Excess (deficiency) of revenues over expenditures (2,522,301) (6,513,714) (3,314,334) 3,199,380
OTHER FINANCING SOURCES (USES)
Inception of financed purchases and leases - - 12,241,633 12,241,633 Transfers in 456,956 456,956 1,745,854 1,288,898
Transfers out (899,166) (899,166) (1,487,250) (588,084) Total Other Financing Sources (Uses) (442,210) (442,210) 12,500,237 12,942,447 Net change in fund balance $ (2,964,511) $ (6,955,924) 9,185,903 $ 16,141,827 Fund balance - July 1, 2024 30,362,671
Prior period restatement (42,047)
Fund balance - July 1, 2024, restated 30,320,624
Fund balance - June 30, 2025 $ 39,506,527
87 123
CITY OF LINCOLN
PUBLIC FACILITY ELEMENT (PFE) - MAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ - $ 30,000 $ - $ (30,000)
Use of money and property 6,300 6,300 2,186,755 2,180,455 Charges for services 8,000,000 6,400,000 4,370,569 (2,029,431) Other revenues (98,344) 11,832,491 24,780 (11,807,711)
Total Revenues 7,907,956 18,268,791 6,582,104 (11,686,687)
EXPENDITURES
Current:
Public works and facilities 36,864 185,450 174,175 11,275 Education 94,700 94,700 80,283 14,417
Capital outlay 18,274,085 4,133,772 3,782,850 350,922
Debt service:
Interest 17,687 17,687 17,687 -
Total Expenditures 18,423,336 4,431,609 4,054,995 376,614 Excess (deficiency) of revenues over expenditures (10,515,380) 13,837,182 2,527,109 (11,310,073)
OTHER FINANCING SOURCES (USES)
Transfers in 1,200,000 - - -
Transfers out - - (1,234) (1,234)
Total Other Financing Sources (Uses) 1,200,000 - (1,234) (1,234) Net change in fund balance $ (9,315,380) $ 13,837,182 2,525,875 $(11,311,307) Fund balance - July 1, 2024 35,907,413
Prior period restatement 11,930,834
Fund balance - July 1, 2024, restated 47,838,247
Fund balance - June 30, 2025 $ 50,364,122
88 124
CITY OF LINCOLN
WATER CONNECTIONS - MAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ 116,021 $ 116,021 $ 961,369 $ 845,348 Charges for services 4,260,000 4,260,000 4,095,416 (164,584) Total Revenues 4,376,021 4,376,021 5,056,785 680,764
EXPENDITURES
Current:
Public works and facilities - - 8,829 (8,829)
Total Expenditures - - 8,829 (8,829)
Excess of revenues over expenditures 4,376,021 4,376,021 5,047,956 671,935
OTHER FINANCING SOURCES (USES)
Transfers in - 4,686,934 - (4,686,934)
Total Other Financing Sources (Uses) - 4,686,934 - (4,686,934) Net change in fund balance $ 4,376,021 $ 9,062,955 5,047,956 $ (4,014,999) Fund balance - July 1, 2024 57,213,232
Prior period restatement 4,686,934
Fund balance - July 1, 2024, restated 61,900,166
Fund balance - June 30, 2025 $ 66,948,122
89 125
CITY OF LINCOLN
SPECIAL ASSESSMENT DISTRICTS - MAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Taxes and assessments $ 7,518,046 $ 7,986,473 $ 8,333,433 $ 346,960 Intergovernmental - - 520 520
Use of money and property - - 837,666 837,666
Other revenues 22,918 22,918 183,827 160,909
Total Revenues 7,540,964 8,009,391 9,355,446 1,346,055
EXPENDITURES
Current:
General government 49,963 49,963 7,149 42,814
Public safety 330,205 331,205 335,106 (3,901)
Public works and facilities 6,216,537 6,854,344 6,292,993 561,351 Capital outlay 944,150 698,028 780,654 (82,626)
Debt service:
Principal 40,000 22,536 19,616 2,920
Interest - - 2,184 (2,184)
Total Expenditures 7,580,855 7,956,076 7,437,702 518,374 Excess (deficiency) of revenues over expenditures (39,891) 53,315 1,917,744 1,864,429
OTHER FINANCING SOURCES (USES)
Inception of leases - - 47,910 47,910
Transfers in - - 931,034 931,034
Transfers out (58,670) (58,670) (202,012) (143,342)
Total Other Financing Sources (Uses) (58,670) (58,670) 776,932 835,602 Net change in fund balance $ (98,561) $ (5,355) 2,694,676 $ 2,700,031 Fund balance - July 1, 2024 16,822,133
Fund balance - June 30, 2025 $ 19,516,809
90 126
CITY OF LINCOLN
DEVELOPMENT SERVICES - MAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
License and permits $ 3,593,200 $ 4,293,200 $ 3,934,899 $ (358,301) Intergovernmental - 460,000 307,495 (152,505)
Use of money and property - - 1,155,149 1,155,149
Charges for services 2,328,500 2,578,500 2,479,967 (98,533) Other revenues 23,000 39,500 74,190 34,690
Total Revenues 5,944,700 7,371,200 7,951,700 580,500
EXPENDITURES
Current:
General government 247,270 323,296 304,300 18,996
Public safety 352,325 352,325 121,266 231,059
Public works and facilities 5,915,846 6,825,939 5,124,545 1,701,394 Culture and recreation 200 200 - 200
Debt service:
Principal - - 50,136 (50,136)
Interest - - 2,381 (2,381)
Total Expenditures 6,515,641 7,501,760 5,602,628 1,899,132 Excess (deficiency) of revenues over expenditures (570,941) (130,560) 2,349,072 2,479,632
OTHER FINANCING SOURCES (USES)
Transfers out (66,838) (66,838) (172,063) (105,225)
Total Other Financing Sources (Uses) (66,838) (66,838) (172,063) (105,225) Net change in fund balance $ (637,779) $ (197,398) 2,177,009 $ 2,374,407 Fund balance - July 1, 2024 19,572,839
Fund balance - June 30, 2025 $ 21,749,848
91 127
CITY OF LINCOLN
LOW/MODERATE INCOME HOUSING - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original* Final*
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ - $ - $ 80,355 $ 80,355
Total Revenues - - 80,355 80,355
EXPENDITURES
Current:
Public works and facilities - - 841 (841)
Total Expenditures - - 841 (841)
Net change in fund balance $ - $ - 79,514 $ 79,514
Fund balance - July 1, 2024 1,725,112
Fund balance - June 30, 2025 $ 1,804,626
*The City did not adopt a budget for the Low/Moderate Income Housing Fund for the year ended June 30, 2025. 92 128
CITY OF LINCOLN
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY ACCOUNTING AND CONTROL
FOR THE YEAR ENDED JUNE 30, 2025
NOTE 1: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the general fund and special revenue funds, and is controlled at the department level for the City. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). The City has not formally adopted a budget for revenues and expenditures in the Low/Moderate Income Housing major special revenue fund, the ARPA and Revitalization and Rehabilitation Loans nonmajor special revenue funds, or the debt service and capital project funds. The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
(1) In May of the first year of the biennium budget cycle the Finance Department is to submit to the City Council a recommended operating budget for the biennium cycle commencing the following July 1. The operating budget includes recommended expenditures and the means of financing them.
Public hearings are to be conducted at City Hall to obtain taxpayer comments. Generally by the first of July, after adjustment as appropriate by the City Council, the budget is to be legally enacted through council motion.
(2) Council approval is required for transfers between funds, or for an increase in total appropriations. Therefore, the level of budgetary responsibility is by total appropriations; however, for report purposes, this level has been expanded to a functional basis (General Government, Public Safety, etc.). (3) Formal budgetary integration is employed as a management control device during the year for the General fund and special revenue funds. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant adjustments.
(4) All unused appropriations for budgeted amounts lapse at the end of the year. (5) Individual fund budgetary comparisons are not presented at the detail budget unit level due to their excessive length. A separate document presenting this information is available. The City does not use encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.
NOTE 2: EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following General Fund departments had an excess of expenditures over appropriations at the legal level of budgetary control as follows:
Appropriations Expenditures
Excess of
Expenditures
Over
Appropriations
City council $ 250,178 $ 279,098 $ 28,920
City treasurer 8,478 8,741 263
City attorney 622,941 762,391 139,450
City manager administration 824,300 840,890 16,590
Human resources 48,000 59,058 11,058
Finance 696,619 714,453 17,834
Fire operations 8,969,927 9,034,860 64,933
Community classes/facility rental 229,882 352,106 122,224 Development services administration 105,958 120,330 14,372 Capital outlay - city attorney - 53,844 53,844
Capital outlay - finance - 315,130 315,130
Capital outlay - police 74,151 240,218 166,067
Debt service - interest 305,332 309,168 3,836
93 129
COMBINING FINANCIAL STATEMENTS AND SCHEDULES
130
NON-MAJOR GOVERNMENTAL FUNDS
The following funds are reported in total on the Governmental Fund Financial Statements under the column Other Governmental Funds.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or assigned to expenditure for specific purposes other than debt service or capital projects. Nonmajor special revenue funds used by the City are listed below:
Park In-Lieu
Accounts for fees collected from developers in lieu of dedicating land for park or recreational purposes. Fees are used for the development of public parks and recreational facilities and the acquisition of land for parks and recreational facilities.
Gas Tax
Accounts for receipts and expenditures of monies apportioned for street improvements under the Street and Highway Code Section 2105, 2106, 2107 and 2107.5 of the State of California.
Street Fund
Accounts for monies received from Placer County Transportation Planning Agency (PCTPA) and used for streets and roads as well as bikes and pedestrian expenditures.
Parks and Recreation Tax
Accounts for revenues collected pursuant to Municipal Code 3.12.030 to be used solely for the development of public park and recreational facilities, the improvement of existing parks and recreational facilities, and the acquisition of land for parks and recreational facilities.
CDBG-CV
Accounts for funds received under the Community Development Block Grant program which requires that each federal grantee (the City) certify to HUD's satisfaction that federal entitlement funds are administered according to the Fair Housing Act.
Police Grants
Accounts for revenues and expenditures of the State of California Funded Supplemental Law Enforcement Services grant.
ARPA
Accounts for revenues and expenditures of the American Rescue Plan Act (ARPA) grant.
Revitalization and Rehabilitation Loans
Accounts for revitalization and rehabilitation monies lent to local businesses and residents for revitalizing and rehabilitating homes and buildings.
94 131
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (CONTINUED)
Community Development Block Grant (CDBG)
Accounts for the City’s participation in the Community Development Block Grant programs, which provides loans to businesses to generate jobs for new employees in the targeted income group (generally low income).
HOME Investment Partnership Program
Accounts for HOME Investment Partnership grants received for community services.
Cal Home Grants
Accounts for Cal Home grants received and used to provide loans to local residents.
Oak Tree Mitigation
Accounts for monies received from developers to replace oak trees that have been removed for development of land.
Federal Grants
Accounts for Federal grant revenues and project expenditures.
CAPITAL PROJECT FUNDS
The Capital Project Funds are used to account for financial resources that are restricted, committed or assigned to expenditure for capital outlay. Nonmajor capital project funds used by the City are listed below:
Capital Projects
Accounts for the monies provided and used for City capital improvements.
Twelve Bridges Capital Projects
Accounts for monies provided and used for the Twelve Bridges capital project.
Lincoln Crossing
Accounts for monies provided and used for Lincoln Crossing improvements.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Nonmajor debt service funds used by the City are listed below:
Lincoln Public Financing Authority Series 2016
Accounts for the 2016 LPFA Revenue Refunding Bonds which were issued to refund the 2003 and 2006 refunding bonds as well as the Airport capital lease.
95 132
NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the City's programs. Nonmajor permanent funds of the City are listed below:
Stormwater Retention Maintenance
Accounts for resources received for the purpose of protecting open space easements surrounding the stormwater retention area.
Suncal Open Space Endowment
Accounts for the resources received for the purpose of preserving the open space endowment at the Suncal-Lincoln Crossing.
Brookview Open Space Maintenance Trust
Accounts for the resources received for the purpose of preserving the open space within the Brookview 4 subdivision.
Sterling Point Endowment
Accounts for the resources received for the purpose of protecting the open space and wetland habitat at Sterling Point.
WWTRF Tertiary Storage Basin Maintenance
Accounts for the resources received for the purpose of providing erosion protection and vegetation control for the WWTRF storage basins.
Lincoln Aircenter
Accounts for resources received for the purpose of providing open space maintenance and management of the Lincoln Aircenter Open Space.
96 133
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2025
Special Revenue Funds
Park In-Lieu Gas Tax Street Fund
Parks and
Recreation Tax CDBG-CV
ASSETS
Cash and investments $ 1,154,373 $ 4,785,834 $ 6,618,946 $ 675,736 $ - Accounts receivable - - 21,871 - -
Interest receivable 1,155 4,799 6,749 702 -
Intergovernmental receivable - 249,537 - - 240,303
Prepaid items - 14,988 34,069 - -
Advances to other funds - - - - -
Restricted cash and investments - - - - -
Loans receivable, net - - - - -
Total Assets $ 1,155,528 $ 5,055,158 $ 6,681,635 $ 676,438 $ 240,303
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES (DEFICITS)
LIABILITIES:
Accounts payable $ 11,152 $ 77,202 $ 195,917 $ - $ -
Accrued payroll and benefits - 35,044 25,310 - -
Accrued liabilities - - 2,236 - -
Retention payable 399 - - - 4,909
Due to other funds - - - - 240,304
Total Liabilities 11,551 112,246 223,463 - 245,213
DEFERRED INFLOWS OF
RESOURCES:
Unavailable revenues - - - - -
Total Deferred Inflows of
Resources - - - - -
FUND BALANCES (DEFICITS):
Nonspendable - 14,988 34,069 - -
Restricted 1,143,977 4,927,924 6,424,103 676,438 -
Unassigned - - - - (4,910)
Total Fund Balances
(Deficits) 1,143,977 4,942,912 6,458,172 676,438 (4,910) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) $ 1,155,528 $ 5,055,158 $ 6,681,635 $ 676,438 $ 240,303 97 134
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (continued)
JUNE 30, 2025
Special Revenue Funds
Police Grants ARPA
Revitalization
and
Rehabilitation
Loans
Community
Development
Block Grant
(CDBG)
HOME
Investment
Partnership
Program
ASSETS
Cash and investments $ 59,815 $ 453,232 $ 960,962 $ 153,050 $ 685,993 Accounts receivable - - - - 1,937
Interest receivable 61 - 971 - -
Intergovernmental receivable - - - - -
Prepaid items - - - - -
Advances to other funds - - - - -
Restricted cash and investments - - - - -
Loans receivable, net - - - 364,007 1,382,155
Total Assets $ 59,876 $ 453,232 $ 961,933 $ 517,057 $ 2,070,085
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES (DEFICITS)
LIABILITIES:
Accounts payable $ - $ 202,846 $ - $ 390 $ 390
Accrued payroll and benefits 8,401 - - - -
Accrued liabilities - - - - -
Retention payable - 56,660 - - -
Due to other funds - - - - -
Total Liabilities 8,401 259,506 - 390 390
DEFERRED INFLOWS OF
RESOURCES:
Unavailable revenues - 193,725 - 364,007 1,382,155
Total Deferred Inflows of
Resources - 193,725 - 364,007 1,382,155
FUND BALANCES (DEFICITS):
Nonspendable - - - - -
Restricted 51,475 1 961,933 152,660 687,540
Unassigned - - - - -
Total Fund Balances
(Deficits) 51,475 1 961,933 152,660 687,540
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) $ 59,876 $ 453,232 $ 961,933 $ 517,057 $ 2,070,085 98 135
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (continued)
JUNE 30, 2025
Special Revenue Funds Capital Project Funds
Cal Home
Grants
Oak Tree
Mitigation Federal Grants
Capital
Projects
Twelve
Bridges
Capital
Projects
ASSETS
Cash and investments $ 1,091,945 $ 481,640 $ - $ 1,070,815 $ 93,715 Accounts receivable - - - - -
Interest receivable - 507 - 843 95
Intergovernmental receivable - - - - -
Prepaid items - - - - -
Advances to other funds - - - - -
Restricted cash and investments - - - - -
Loans receivable, net 205,213 - - - -
Total Assets $ 1,297,158 $ 482,147 $ - $ 1,071,658 $ 93,810
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES (DEFICITS)
LIABILITIES:
Accounts payable $ 220 $ - $ - $ 756 $ -
Accrued payroll and benefits - - - - -
Accrued liabilities - 335 - - -
Retention payable - - - - -
Due to other funds - - 272,561 - -
Total Liabilities 220 335 272,561 756 -
DEFERRED INFLOWS OF
RESOURCES:
Unavailable revenues 205,213 - - - -
Total Deferred Inflows of
Resources 205,213 - - - -
FUND BALANCES (DEFICITS):
Nonspendable - - - - -
Restricted 1,091,725 481,812 - 1,070,902 93,810
Unassigned - - (272,561) - -
Total Fund Balances
(Deficits) 1,091,725 481,812 (272,561) 1,070,902 93,810 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) $ 1,297,158 $ 482,147 $ - $ 1,071,658 $ 93,810 99 136
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (continued)
JUNE 30, 2025
Capital Project
Funds
Debt Service
Funds Permanent Funds
Lincoln
Crossing
Lincoln Public
Financing
Authority
Series 2016
Stormwater
Retention
Maintenance
Suncal Open
Space
Endowment
Brookview
Open Space
Maintenance
Trust
ASSETS
Cash and investments $ 1,803,146 $ 2,222,783 $ 38,852 $ 291,181 $ 5 Accounts receivable - - - - -
Interest receivable 1,829 942 39 294 -
Intergovernmental receivable - - - - -
Prepaid items - - - - -
Advances to other funds - 526,955 - - -
Restricted cash and investments - 7 - - 16,234
Loans receivable, net - - - - -
Total Assets $ 1,804,975 $ 2,750,687 $ 38,891 $ 291,475 $ 16,239
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES (DEFICITS)
LIABILITIES:
Accounts payable $ 106,869 $ - $ - $ - $ -
Accrued payroll and benefits - - - - -
Accrued liabilities - - - - -
Retention payable 3,204 - - - -
Due to other funds - - - - -
Total Liabilities 110,073 - - - -
DEFERRED INFLOWS OF
RESOURCES:
Unavailable revenues - - - - -
Total Deferred Inflows of
Resources - - - - -
FUND BALANCES (DEFICITS):
Nonspendable - 526,955 25,439 221,220 5,000
Restricted 1,694,902 2,223,732 13,452 70,255 11,239
Unassigned - - - - -
Total Fund Balances
(Deficits) 1,694,902 2,750,687 38,891 291,475 16,239
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) $ 1,804,975 $ 2,750,687 $ 38,891 $ 291,475 $ 16,239 100
137
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (continued)
JUNE 30, 2025
Permanent Funds
Sterling Point
Endowment
WWTRF
Tertiary
Storage Basin
Maintenance
Lincoln
Aircenter
Total
Non-major
Governmental
Funds
ASSETS
Cash and investments $ 71,537 $ 72,307 $ 98,174 $ 22,884,041 Accounts receivable - - - 23,808
Interest receivable 72 73 99 19,230
Intergovernmental receivable - - - 489,840
Prepaid items - - - 49,057
Advances to other funds - - - 526,955
Restricted cash and investments - - - 16,241
Loans receivable, net - - - 1,951,375
Total Assets $ 71,609 $ 72,380 $ 98,273 $ 25,960,547
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES (DEFICITS)
LIABILITIES:
Accounts payable $ - $ - $ - $ 595,742
Accrued payroll and benefits - - - 68,755
Accrued liabilities - - - 2,571
Retention payable - - - 65,172
Due to other funds - - - 512,865
Total Liabilities - - - 1,245,105
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - 2,145,100
Total Deferred Inflows of Resources - - - 2,145,100
FUND BALANCES (DEFICITS):
Nonspendable 50,000 50,000 5,000 932,671
Restricted 21,609 22,380 93,273 21,915,142
Unassigned - - - (277,471)
Total Fund Balances (Deficits) 71,609 72,380 98,273 22,570,342 Total Liabilities, Deferred Inflows of Resources, and
Fund Balances (Deficits) $ 71,609 $ 72,380 $ 98,273 $ 25,960,547 101
138
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Park In-Lieu Gas Tax Street Fund
Parks and
Recreation Tax CDBG-CV
REVENUES
Intergovernmental $ - $ 2,915,320 $ 3,803,344 $ - $ 249,653 Use of money and property 51,225 205,153 226,446 28,661 - Charges for services 9,408 4,609 - 121,665 -
Other revenue 576 - 24,277 - -
Total Revenues 61,209 3,125,082 4,054,067 150,326 249,653
EXPENDITURES
Current:
General government - - 301 - 254,563
Public safety - - - - -
Public works and facilities 536 1,175,561 2,390,355 292 - Capital outlay 11,551 1,486,740 900,249 14,190 -
Debt service:
Principal - 1,724 40,212 - -
Interest - 195 1,446 - -
Total Expenditures 12,087 2,664,220 3,332,563 14,482 254,563 Excess (Deficiency) of Revenues over
Expenditures 49,122 460,862 721,504 135,844 (4,910)
OTHER FINANCING SOURCES
(USES)
Inception of leases - - 132,565 - -
Transfers in - 18,106 - - -
Transfers out (18,106) (129,731) (101,370) (163) -
Total Other Financing Sources
(Uses) (18,106) (111,625) 31,195 (163) -
Net change in fund balances 31,016 349,237 752,699 135,681 (4,910) Fund balances (deficits) - July 1, 2024 1,112,961 4,593,675 5,705,473 540,757 - Fund balances (deficits) -
June 30, 2025 $ 1,143,977 $ 4,942,912 $ 6,458,172 $ 676,438 $ (4,910) 102
139
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Police Grants ARPA
Revitalization
and
Rehabilitation
Loans
Community
Development
Block Grant
(CDBG)
HOME
Investment
Partnership
Program
REVENUES
Intergovernmental $ 194,663 $ 1,349,681 $ - $ - $ -
Use of money and property 2,491 - 42,833 - -
Charges for services - - - - 14,124
Other revenue - - - - -
Total Revenues 197,154 1,349,681 42,833 - 14,124
EXPENDITURES
Current:
General government - 171,260 - 4,798 4,926
Public safety 195,284 - - - -
Public works and facilities - - 449 - -
Capital outlay - 1,178,420 - - -
Debt service:
Principal - - - - -
Interest - - - - -
Total Expenditures 195,284 1,349,680 449 4,798 4,926
Excess (Deficiency) of Revenues over
Expenditures 1,870 1 42,384 (4,798) 9,198
OTHER FINANCING SOURCES
(USES)
Inception of leases - - - - -
Transfers in - - - - -
Transfers out (348) - - - -
Total Other Financing Sources
(Uses) (348) - - - -
Net change in fund balances 1,522 1 42,384 (4,798) 9,198 Fund balances (deficits) - July 1, 2024 49,953 - 919,549 157,458 678,342 Fund balances (deficits) -
June 30, 2025 $ 51,475 $ 1 $ 961,933 $ 152,660 $ 687,540 103
140
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue Funds Capital Projects Funds
Cal Home
Grants
Oak Tree
Mitigation Federal Grants
Capital
Projects
Twelve
Bridges
Capital
Projects
REVENUES
Intergovernmental $ - $ - $ - $ - $ -
Use of money and property - 20,566 - 36,296 4,178
Charges for services - 75,750 - 27,393 -
Other revenue - - - 4,370 -
Total Revenues - 96,316 - 68,059 4,178
EXPENDITURES
Current:
General government - - - - -
Public safety - - - - -
Public works and facilities 2,276 36,037 - 381 44
Capital outlay - - - 4,601 -
Debt service:
Principal - - - - -
Interest - - - - -
Total Expenditures 2,276 36,037 - 4,982 44
Excess (Deficiency) of Revenues over
Expenditures (2,276) 60,279 - 63,077 4,134
OTHER FINANCING SOURCES
(USES)
Inception of leases - - - - -
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources
(Uses) - - - - -
Net change in fund balances (2,276) 60,279 - 63,077 4,134 Fund balances (deficits) - July 1, 2024 1,094,001 421,533 (272,561) 1,007,825 89,676 Fund balances (deficits) -
June 30, 2025 $ 1,091,725 $ 481,812 $ (272,561) $ 1,070,902 $ 93,810 104
141
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) FOR THE YEAR ENDED JUNE 30, 2025
Capital
Projects
Funds
Debt Service
Funds Permanent Funds
Lincoln
Crossing
Lincoln Public
Financing
Authority
Series 2016
Stormwater
Retention
Maintenance
Suncal Open
Space
Endowment
Brookview
Open Space
Maintenance
Trust
REVENUES
Intergovernmental $ - $ - $ - $ - $ -
Use of money and property 92,049 92,791 1,732 12,979 8
Charges for services - - - - -
Other revenue - - - - -
Total Revenues 92,049 92,791 1,732 12,979 8
EXPENDITURES
Current:
General government - - 19 136 -
Public safety - - - - -
Public works and facilities 970 9,504 - - -
Capital outlay 443,079 - - - -
Debt service:
Principal - 1,085,000 - - -
Interest - 389,538 - - -
Total Expenditures 444,049 1,484,042 19 136 -
Excess (Deficiency) of Revenues over
Expenditures (352,000) (1,391,251) 1,713 12,843 8
OTHER FINANCING SOURCES
(USES)
Inception of leases - - - - -
Transfers in - 1,333,849 - - -
Transfers out - - - - -
Total Other Financing Sources
(Uses) - 1,333,849 - - -
Net change in fund balances (352,000) (57,402) 1,713 12,843 8 Fund balances (deficits) - July 1, 2024 2,046,902 2,808,089 37,178 278,632 16,231 Fund balances (deficits) -
June 30, 2025 $ 1,694,902 $ 2,750,687 $ 38,891 $ 291,475 $ 16,239 105
142
CITY OF LINCOLN
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) FOR THE YEAR ENDED JUNE 30, 2025
Permanent Funds
Sterling Point
Endowment
WWTRF
Tertiary
Storage Basin
Maintenance
Lincoln
Aircenter
Total
Non-major
Governmental
Funds
REVENUES
Intergovernmental $ - $ - $ - $ 8,512,661
Use of money and property 3,189 3,224 4,376 828,197
Charges for services - - - 252,949
Other revenue - - - 29,223
Total Revenues 3,189 3,224 4,376 9,623,030
EXPENDITURES
Current:
General government 34 34 46 436,117
Public safety - - - 195,284
Public works and facilities - - - 3,616,405
Capital outlay - - - 4,038,830
Debt service:
Principal - - - 1,126,936
Interest - - - 391,179
Total Expenditures 34 34 46 9,804,751
Excess (Deficiency) of Revenues over Expenditures 3,155 3,190 4,330 (181,721)
OTHER FINANCING SOURCES (USES)
Inception of leases - - - 132,565
Transfers in - - - 1,351,955
Transfers out - - - (249,718)
Total Other Financing Sources (Uses) - - - 1,234,802
Net change in fund balances 3,155 3,190 4,330 1,053,081 Fund balances (deficits) - July 1, 2024 68,454 69,190 93,943 21,517,261 Fund balances (deficits) - June 30, 2025 $ 71,609 $ 72,380 $ 98,273 $ 22,570,342 106
143
CITY OF LINCOLN
PARK IN-LIEU - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ - $ - $ 51,225 $ 51,225
Charges for services 8,256 8,256 9,408 1,152
Other revenues - - 576 576
Total Revenues 8,256 8,256 61,209 52,953
EXPENDITURES
Current:
Public works and facilities - - 536 (536)
Capital outlay - 11,551 11,551 -
Total Expenditures - 11,551 12,087 (536)
Excess (deficiency) of revenues over expenditures 8,256 (3,295) 49,122 52,417
OTHER FINANCING SOURCES (USES)
Transfers out - - (18,106) (18,106)
Total Other Financing Sources (Uses) - - (18,106) (18,106) Net change in fund balance $ 8,256 $ (3,295) 31,016 $ 34,311 Fund balance - July 1, 2024 1,112,961
Fund balance - June 30, 2025 $ 1,143,977
107
144
CITY OF LINCOLN
GAS TAX - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 2,790,906 $ 2,790,906 $ 2,915,320 $ 124,414 Use of money and property - - 205,153 205,153
Charges for services 1,000 6,000 4,609 (1,391)
Total Revenues 2,791,906 2,796,906 3,125,082 328,176
EXPENDITURES
Current:
Public safety 1,800 1,800 - 1,800
Public works and facilities 1,366,683 1,497,003 1,175,561 321,442 Capital outlay 2,325,480 1,482,036 1,486,740 (4,704)
Debt service:
Principal - - 1,724 (1,724)
Interest - - 195 (195)
Total Expenditures 3,693,963 2,980,839 2,664,220 316,619 Excess (deficiency) of revenues over expenditures (902,057) (183,933) 460,862 644,795
OTHER FINANCING SOURCES (USES)
Transfers in - - 18,106 18,106
Transfers out (35,109) (35,109) (129,731) (94,622)
Total Other Financing Sources (Uses) (35,109) (35,109) (111,625) (76,516) Net change in fund balance $ (937,166) $ (219,042) 349,237 $ 568,279 Fund balance - July 1, 2024 4,593,675
Fund balance - June 30, 2025 $ 4,942,912
108
145
CITY OF LINCOLN
STREET FUND - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 3,846,148 $ 3,846,148 $ 3,803,344 $ (42,804) Use of money and property - - 226,446 226,446
Other revenues - 10,100 24,277 14,177
Total Revenues 3,846,148 3,856,248 4,054,067 197,819
EXPENDITURES
Current:
General government - - 301 (301)
Public safety 15,025 15,025 - 15,025
Public works and facilities 3,050,590 3,287,745 2,390,355 897,390 Capital outlay 1,159,312 490,540 900,249 (409,709)
Debt service:
Principal 125,000 53,241 40,212 13,029
Interest - 4,879 1,446 3,433
Total Expenditures 4,349,927 3,851,430 3,332,563 518,867 Excess (deficiency) of revenues over expenditures (503,779) 4,818 721,504 716,686
OTHER FINANCING SOURCES (USES)
Inception of leases - - 132,565 132,565
Transfers out (32,111) (32,111) (101,370) (69,259)
Total Other Financing Sources (Uses) (32,111) (32,111) 31,195 63,306 Net change in fund balance $ (535,890) $ (27,293) 752,699 $ 779,992 Fund balance - July 1, 2024 5,705,473
Fund balance - June 30, 2025 $ 6,458,172
109
146
CITY OF LINCOLN
PARKS AND RECREATION TAX - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ - $ - $ 28,661 $ 28,661
Charges for services 152,000 152,000 121,665 (30,335)
Total Revenues 152,000 152,000 150,326 (1,674)
EXPENDITURES
Current:
Public works and facilities 4,236 4,399 292 4,107
Capital outlay - 14,190 14,190 -
Total Expenditures 4,236 18,589 14,482 4,107
Excess (deficiency) of revenues over expenditures 147,764 133,411 135,844 2,433
OTHER FINANCING SOURCES (USES)
Transfers out - - (163) (163)
Total Other Financing Sources (Uses) - - (163) (163)
Net change in fund balance $ 147,764 $ 133,411 135,681 $ 2,270 Fund balance - July 1, 2024 540,757
Fund balance - June 30, 2025 $ 676,438
110
147
CITY OF LINCOLN
CDBG-CV - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ - $ - $ 249,653 $ 249,653
Total Revenues - - 249,653 249,653
EXPENDITURES
Current:
General government - 718,441 254,563 463,878
Total Expenditures - 718,441 254,563 463,878
Net change in fund balance $ - $ (718,441) (4,910) $ 713,531 Fund balance - July 1, 2024 -
Fund balance (deficit) - June 30, 2025 $ (4,910)
111
148
CITY OF LINCOLN
POLICE GRANTS - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ 175,279 $ 175,279 $ 194,663 $ 19,384 Use of money and property - - 2,491 2,491
Total Revenues 175,279 175,279 197,154 21,875
EXPENDITURES
Current:
Public safety 187,156 187,505 195,284 (7,779)
Total Expenditures 187,156 187,505 195,284 (7,779)
Excess (deficiency) of revenues over expenditures (11,877) (12,226) 1,870 14,096
OTHER FINANCING SOURCES (USES)
Transfers out - - (348) (348)
Total Other Financing Sources (Uses) - - (348) (348)
Net change in fund balance $ (11,877) $ (12,226) 1,522 $ 13,748 Fund balance - July 1, 2024 49,953
Fund balance - June 30, 2025 $ 51,475
112
149
CITY OF LINCOLN
ARPA - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ - $ - $ 1,349,681 $ 1,349,681
Total Revenues - - 1,349,681 1,349,681
EXPENDITURES
Current:
General government - 300,000 171,260 128,740
Capital outlay - 1,178,420 1,178,420 -
Total Expenditures - 1,478,420 1,349,680 128,740
Net change in fund balance $ - $ (1,478,420) 1 $ 1,478,421 Fund balance - July 1, 2024 -
Fund balance - June 30, 2025 $ 1
113
150
CITY OF LINCOLN
REVITALIZATION AND REHABILITATION LOANS - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original* Final*
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ - $ - $ 42,833 $ 42,833
Total Revenues - - 42,833 42,833
EXPENDITURES
Current:
Public works and facilities - - 449 (449)
Total Expenditures - - 449 (449)
Net change in fund balance $ - $ - 42,384 $ 42,384
Fund balance - July 1, 2024 919,549
Fund balance - June 30, 2025 $ 961,933
*The City did not adopt a budget for the Revitalization and Rehabilitation Loans Fund for the year ended June 30, 2025.
114
151
CITY OF LINCOLN
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Total Revenues $ - $ - $ - $ -
EXPENDITURES
Current:
General government 6,192 6,192 4,798 1,394
Total Expenditures 6,192 6,192 4,798 1,394
Net change in fund balance $ (6,192) $ (6,192) (4,798) $ 1,394 Fund balance - July 1, 2024 157,458
Fund balance - June 30, 2025 $ 152,660
115
152
CITY OF LINCOLN
HOME INVESTMENT PARTNERSHIP PROGRAM - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Charges for services $ - $ - $ 14,124 $ 14,124
Total Revenues - - 14,124 14,124
EXPENDITURES
Current:
General government 6,192 6,192 4,926 1,266
Total Expenditures 6,192 6,192 4,926 1,266
Net change in fund balance $ (6,192) $ (6,192) 9,198 $ 15,390 Fund balance - July 1, 2024 678,342
Fund balance - June 30, 2025 $ 687,540
116
153
CITY OF LINCOLN
CAL HOME GRANTS - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Total Revenues $ - $ - $ - $ -
EXPENDITURES
Current:
Public works and facilities 3,492 3,492 2,276 1,216
Total Expenditures 3,492 3,492 2,276 1,216
Net change in fund balance $ (3,492) $ (3,492) (2,276) $ 1,216 Fund balance - July 1, 2024 1,094,001
Fund balance - June 30, 2025 $ 1,091,725
117
154
CITY OF LINCOLN
OAK TREE MITIGATION - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Use of money and property $ - $ - $ 20,566 $ 20,566
Charges for services 100,000 50,000 75,750 25,750
Total Revenues 100,000 50,000 96,316 46,316
EXPENDITURES
Current:
Public works and facilities 99,000 99,000 36,037 62,963 Total Expenditures 99,000 99,000 36,037 62,963
Net change in fund balance $ 1,000 $ (49,000) 60,279 $ 109,279 Fund balance - July 1, 2024 421,533
Fund balance - June 30, 2025 $ 481,812
118
155
CITY OF LINCOLN
FEDERAL GRANTS - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
2024 - 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
REVENUES
Intergovernmental $ - $ 1,321,994 $ - $ (1,321,994)
Total Revenues - 1,321,994 - (1,321,994)
EXPENDITURES
Current:
Capital outlay - (17,250) - (17,250)
Total Expenditures - (17,250) - (17,250)
Net change in fund balance $ - $ 1,339,244 - $ (1,339,244) Fund balance (deficit) - July 1, 2024 (272,561)
Fund balance (deficit) - June 30, 2025 $ (272,561)
119
156
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments on a cost-reimbursement basis. Internal Service Funds used at the City are listed below:
Internal Services
Accounts for the City’s insurance programs which provide services to other departments on a cost reimbursement basis.
Facility Maintenance
Accounts for the City’s facility maintenance program which provides services to other departments on a cost reimbursement basis.
Technology Fund
Accounts for the City’s technology programs which provide services to other departments on a cost reimbursement basis.
120
157
CITY OF LINCOLN
COMBINING STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
Governmental Activities - Internal Service
Funds
Internal
Services
Facility
Maintenance
Technology
Fund
Total Internal
Service
Funds
ASSETS
Current Assets
Cash and investments $ 4,070,716 $ 403,200 $ 1,463,906 $ 5,937,822 Accounts receivable (4,666) 36,824 - 32,158
Interest receivable 4,155 638 1,470 6,263
Prepaid items 4,898 - - 4,898
Total Current Assets 4,075,103 440,662 1,465,376 5,981,141 Non Current Assets
Non-depreciable capital assets - 201,801 825,059 1,026,860 Depreciable capital assets, net 794,445 654,166 - 1,448,611 Total Non-Current Assets 794,445 855,967 825,059 2,475,471 Total Assets 4,869,548 1,296,629 2,290,435 8,456,612
LIABILITIES
Current Liabilities
Accounts payable 305,871 20,316 18,810 344,997
Accrued salaries and benefits 210,201 - - 210,201
Compensated absences 446,151 - - 446,151
Lease payable 7,789 - - 7,789
SBITA payable 171,517 - - 171,517
Total Current Liabilities 1,141,529 20,316 18,810 1,180,655 Non-Current Liabilities
Compensated absences - noncurrent 111,538 - - 111,538
Lease payable - noncurrent 30,216 - - 30,216
SBITA payable - noncurrent 279,920 - - 279,920
Total Non-Current Liabilities 421,674 - - 421,674
Total Liabilities 1,563,203 20,316 18,810 1,602,329
NET POSITION:
Net investment in capital assets 305,003 855,967 825,059 1,986,029 Unrestricted 3,001,342 420,346 1,446,566 4,868,254
Total Net Position $ 3,306,345 $ 1,276,313 $ 2,271,625 $ 6,854,283 121
158
CITY OF LINCOLN
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental Activities - Internal Service
Funds
Internal
Services
Facility
Maintenance
Technology
Fund
Total Internal
Service
Funds
OPERATING REVENUES
Charges for services $ 8,930,481 $ - $ - $ 8,930,481
Other revenue 13,666 - 110,377 124,043
Total Operating Revenue 8,944,147 - 110,377 9,054,524
OPERATING EXPENSES
Salaries and benefits 4,924,767 - - 4,924,767
Services and supplies 2,594,910 340 727 2,595,977
Depreciation 206,211 36,374 12,061 254,646
Total Operating Expenses 7,725,888 36,714 12,788 7,775,390 Operating Income (Loss) 1,218,259 (36,714) 97,589 1,279,134
NON-OPERATING REVENUES (EXPENSES)
Intergovernmental - 36,824 - 36,824
Interest income 152,832 31,428 68,989 253,249
Interest expense (19,482) - - (19,482)
Total Non-Operating Revenues (Expenses) 133,350 68,252 68,989 270,591 Change in net position 1,351,609 31,538 166,578 1,549,725 Net Position - July 1, 2024 1,978,083 1,244,775 2,105,047 5,327,905 Change in accounting principle (Note 19) (23,347) - - (23,347) Net Position - July 1, 2024, restated 1,954,736 1,244,775 2,105,047 5,304,558 Net Position - June 30, 2025 $ 3,306,345 $ 1,276,313 $ 2,271,625 $ 6,854,283 122
159
CITY OF LINCOLN
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental Activities - Internal Service
Funds
Internal
Services
Facility
Maintenance
Technology
Fund
Total Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,094,793 $ - $ 110,377 $ 9,205,170 Cash paid to suppliers (2,473,350) (340) (11,767) (2,485,457) Cash paid to employees (4,999,228) - - (4,999,228)
Net Cash Provided by (Used for) Operating Activities 1,622,215 (340) 98,610 1,720,485
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Intergovernmental revenues received - 86,270 - 86,270
Net Cash Provided by Non-Capital Financing
Activities - 86,270 - 86,270
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets - (190,715) (242,834) (433,549) Principal paid on long-term debt (186,892) - - (186,892) Interest paid on long-term debt (19,482) - - (19,482)
Net Cash Used for Capital and Related Financing
Activities (206,374) (190,715) (242,834) (639,923)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 151,635 31,365 69,377 252,377
Net Cash Provided by Investing Activities 151,635 31,365 69,377 252,377 Net Increase (Decrease) in Cash and Cash Equivalents 1,567,476 (73,420) (74,847) 1,419,209 Cash and Cash Equivalents - July 1, 2024 2,503,240 476,620 1,538,753 4,518,613 Cash and Cash Equivalents - June 30, 2025 $ 4,070,716 $ 403,200 $ 1,463,906 $ 5,937,822
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES:
Operating Income (Loss) 1,218,259 (36,714) 97,589 1,279,134 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 206,211 36,374 12,061 254,646
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 150,646 - - 150,646
Prepaid expenses (4,898) - - (4,898)
Increase (decrease) in:
Accounts payable 126,458 - (11,040) 115,418
Accrued wages 30,444 - - 30,444
Compensated absences (104,905) - - (104,905)
Net Cash Provided by (Used for) Operating Activities $ 1,622,215 $ (340) $ 98,610 $ 1,720,485 NON CASH SUPPLEMENTAL DISCLOSURE:
Assets acquired under leases $ 42,101 $ - $ - $ 42,101
Assets acquired under SBITAs 217,299 - - 217,299
123
160
FIDUCIARY FUNDS
The Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs.
Custodial Funds
These funds are used to report resources held by the City in a purely custodial capacity. The custodial funds maintained by the City include the following:
Little League Fund
Accounts for monies held as agent for Little League activities.
Lincoln Airpark 98-1
Accounts for monies held from the Community Facilities District No. 1998-1 Special Tax Bonds to finance the acquisition of public improvements to property within the community facilities district and finance wetland mitigation measures. Revenues are received from property tax assessments. These bonds are not a liability of the City.
Twelve Bridges Series 2011
Accounts for the monies held from the Twelve Bridges Refunding Bonds Series 2011 for improvements within the assessment district. Monies are received from special tax assessments. These bonds are not a liability of the City.
Foskett Ranch CFD
Accounts for the monies held from the Limited Obligation Revenue Bonds Series 2004-3 and the Special Tax Revenues Bonds Series 2017-1 issued to finance the construction/acquisition of public improvements within the assessment district. Monies are received from special tax assessments. These bonds are not a liability of the City.
Lakeside CFD
Accounts for the monies held from the Special Tax Revenue Refunding Bonds Series 2021 and Special Tax Revenue Bonds Series 2017 for the acquisition of improvements within the Lakeside Area 1 and 2 assessment districts. Monies are received from special tax assessments. These bonds are not a liability of the City.
Lincoln Crossing CFD
Accounts for the monies held from the purchase of the Local Obligations to acquire, construct and improve the Lincoln Crossing assessment district. These bonds are not a liability of the City.
Sorrento CFD
Accounts for the monies held from Special Tax Revenue Bonds Series 2009, 2013, 2014 and 2016 for improvements within the Sorrento Project assessment district. Monies are received from special tax assessments.
These bonds are not a liability of the City.
Independence Development CFD
Accounts for the monies held from the developer for the formation of the Independence at Lincoln Project Community Facilities District and bond issuance disclosure. Monies are received from special tax assessments.
These bonds are not a liability of the City.
Joiner Ranch East CFD
Accounts for the monies held from the developer for the formation of the Community Facilities District and bond issuance disclosure. Monies are received from special tax assessments. These bonds are not a liability of the City. 124
161
CITY OF LINCOLN
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
Little League
Lincoln
Airpark 98-1
Twelve
Bridges Series
2011
Foskett Ranch
CFD
Lakeside
CFD
ASSETS
Cash and investments $ 35,199 $ 46,905 $ - $ 272,850 $ 673,977 Assessments receivable - - 6,365 - 7,319
Interest receivable 36 47 - 504 1,376
Restricted cash and
investments - - 7,503,797 123,202 524,939
Total Assets 35,235 46,952 7,510,162 396,556 1,207,611
LIABILITIES
Accounts payable - - - 2,250 218,250
Developer deposits payable - - - - -
Total Liabilities - - - 2,250 218,250
NET POSITION
Net position restricted for
individuals, organizations,
and other governments 35,235 46,952 7,510,162 394,306 989,361 Total Net Position $ 35,235 $ 46,952 $ 7,510,162 $ 394,306 $ 989,361 125
162
CITY OF LINCOLN
COMBINING STATEMENT OF FIDUCIARY NET POSITION (continued)
CUSTODIAL FUNDS
JUNE 30, 2025
Lincoln
Crossing CFD
Sorrento
CFD
Independence
Development
CFD
Joiner Ranch
East CFD Total
ASSETS
Cash and investments $ 6,101,850 $ 726,703 $ 1,997,552 $ 68,048 $ 9,923,084 Assessments receivable 44,568 2,152 5,981 - 66,385
Interest receivable 7,337 1,074 2,732 62 13,168
Restricted cash and
investments 6,447,010 1,470,819 1,031,392 - 17,101,159
Total Assets 12,600,765 2,200,748 3,037,657 68,110 27,103,796
LIABILITIES
Accounts payable - 1,550 - 6,390 228,440
Developer deposits payable - - - 61,341 61,341
Total Liabilities - 1,550 - 67,731 289,781
NET POSITION
Net position restricted for
individuals, organizations,
and other governments 12,600,765 2,199,198 3,037,657 379 26,814,015 Total Net Position $ 12,600,765 $ 2,199,198 $ 3,037,657 $ 379 $ 26,814,015 126
163
CITY OF LINCOLN
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Little League
Lincoln
Airpark 98-1
Twelve
Bridges Series
2011
Foskett Ranch
CFD
Lakeside
CFD
ADDITIONS
Property taxes and
assessments $ - $ - $ 965,201 $ 256,689 $ 910,375
Investment income:
Interest income 1,569 1,162 383,162 13,293 24,570
Net increase in
fair value - 928 11,672 6,448 15,971
Net investment income 1,569 2,090 394,834 19,741 40,541 Total Additions 1,569 2,090 1,360,035 276,430 950,916
DEDUCTIONS
Professional services 17 21 88,486 25,794 264,508
Debt service:
Principal - - 3,215,000 160,000 365,000
Interest - - 322,923 63,226 320,720
Total Deductions 17 21 3,626,409 249,020 950,228
Net increase (decrease) in
fiduciary net position 1,552 2,069 (2,266,374) 27,410 688 Fiduciary Net Position -
Beginning 33,683 44,883 14,463,470 366,896 988,673
Prior period restatement - - (4,686,934) - -
Fiduciary Net Position -
Beginning, Restated 33,683 44,883 9,776,536 366,896 988,673 Fiduciary Net Position
- Ending $ 35,235 $ 46,952 $ 7,510,162 $ 394,306 $ 989,361 127
164
CITY OF LINCOLN
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS (CONTINUED)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Lincoln
Crossing CFD
Sorrento
CFD
Independence
Development
CFD
Joiner Ranch
East CFD Total
ADDITIONS
Property taxes and
assessments $ 6,707,628 $ 1,009,042 $ 1,338,467 $ - $ 11,187,402 Investment income:
Interest income 83,745 72,883 88,299 147 668,830
Net increase in
fair value 90,486 12,825 34,249 232 172,811
Net investment income 174,231 85,708 122,548 379 841,641 Total Additions 6,881,859 1,094,750 1,461,015 379 12,029,043
DEDUCTIONS
Professional services 131,688 43,635 195,611 - 749,760
Debt service:
Principal 3,170,000 270,000 55,000 - 7,235,000
Interest 2,379,750 680,391 651,063 - 4,418,073
Total Deductions 5,681,438 994,026 901,674 - 12,402,833 Net increase (decrease) in
fiduciary net position 1,200,421 100,724 559,341 379 (373,790) Fiduciary Net Position -
Beginning 23,331,178 2,098,474 2,478,316 - 43,805,573
Prior period restatement (11,930,834) - - - (16,617,768) Fiduciary Net Position -
Beginning, Restated 11,400,344 2,098,474 2,478,316 - 27,187,805 Fiduciary Net Position
- Ending $ 12,600,765 $ 2,199,198 $ 3,037,657 $ 379 $ 26,814,015 128
165
STATISTICAL SECTION
166
STATISTICAL SECTION
This part of the City's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
Contents Page
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. 130 - 134 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. 135 - 138 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. 139 - 141
Economic and Demographic 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 with other governments. 142 - 144 Operating Information
These schedules contain contextual 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. 145 - 146 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
129
167
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net Investment in capital assets 359,758,260 354,718,311 350,361,056 348,742,386 344,847,105 336,402,231 332,378,568 325,142,234 320,885,146 306,435,245 Restricted 106,251,051 76,398,564 86,266,260 82,496,431 69,876,345 71,650,008 110,940,416 74,322,328 93,487,145 132,490,434 Unrestricted (21,706,971) 19,409,294 5,020,121 8,392,145 14,138,806 34,834,119 20,184,955 65,261,933 67,570,772 67,019,642 Total governmental activities net position 430,188,419 450,619,678 444,302,340 450,526,169 441,647,437 439,630,962 428,862,256 442,886,358 463,503,939 505,945,321 Business-type activities
Net Investment in capital assets 349,180,869 345,150,139 348,208,139 347,503,553 353,011,194 349,818,023 346,447,473 331,622,431 325,680,312 324,521,171 Restricted 14,312,412 12,990,446 8,639,096 9,304,148 7,205,080 14,644,566 18,842,976 18,541,435 20,811,511 21,558,514 Unrestricted 15,639,418 28,760,478 34,614,888 29,053,080 29,512,061 32,396,407 31,049,519 25,937,677 33,754,195 38,092,917 Total business-type activities net position 379,132,699 386,901,063 391,462,123 385,860,781 389,728,335 396,858,996 396,339,968 376,101,543 380,246,018 384,172,602 Primary government
Net Investment in capital assets 708,939,129 699,868,450 698,569,195 696,245,939 697,858,299 686,220,254 678,826,041 656,764,665 646,565,458 630,956,416 Restricted 120,563,463 89,389,010 94,905,356 91,800,579 77,081,425 86,294,574 129,783,392 92,863,763 114,298,656 154,048,948 Unrestricted (6,067,553) 48,169,772 39,635,009 37,445,225 43,650,867 67,230,526 51,234,474 91,199,610 101,324,967 105,112,559 Total primary government net position 823,435,039 837,427,232 833,109,560 825,491,743 818,590,591 839,745,354 859,843,907 840,828,038 862,189,081 890,117,923 % change from prior year 68.3% 1.7% -0.5% -0.9% -0.8% 2.5% 2.3% -2.3% 2.5% 3.1% Source : City of Lincoln Audited Financial Reports
City of Lincoln
Net Position by Component
Last Ten Fiscal Years
(Full Accrual Basis of Accounting)
Fiscal Year Ended June 30,
(100,000,000)
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net Investment in capital assets Restricted Unrestricted 130 168
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental Activities
General government 3,936,661 3,135,241 3,697,194 1,517,206 5,110,616 7,237,227 7,978,828 6,705,161 6,489,697 9,472,027 Public safety 11,437,055 9,222,033 11,443,750 12,567,871 13,880,906 14,493,876 11,446,089 19,074,136 20,366,528 21,693,685 Public works and facilities 21,087,881 21,065,618 24,230,516 28,442,592 24,585,754 23,764,510 26,405,413 28,384,075 34,285,306 32,726,000 Culture and recreation 839,156 735,780 939,858 1,043,517 1,017,823 642,096 1,071,344 1,105,148 1,409,450 1,676,854 Education 786,381 1,139,387 1,006,407 810,164 768,182 1,172,252 1,326,178 1,376,724 1,384,998 1,724,863 Urban redevelopment and housing 545,475 522,402 646,213 489,557 1,164,293 683,418 605,557 326,200 334,744 326,385 Interest on long-term debt 988,938 1,143,290 576,397 587,288 586,324 556,611 514,762 645,549 430,101 889,696 Total Governmental Activities 39,621,547 36,963,751 42,540,335 45,458,195 47,113,898 48,549,990 49,348,171 57,616,993 64,700,824 68,509,510 Business-Type Activities
Water 12,618,263 16,370,415 14,598,974 18,975,438 15,416,723 16,976,467 17,972,553 18,967,580 19,964,857 21,906,341 Sewer 12,813,685 13,176,196 14,613,442 15,997,571 15,160,709 14,621,387 17,503,845 15,826,029 16,911,755 22,899,722 Solid Waste 7,355,610 4,448,941 4,983,983 5,713,323 6,291,563 6,139,631 7,551,871 8,705,055 9,520,615 10,710,546 Airport 1,563,378 1,414,739 1,546,662 1,570,314 1,385,498 1,270,254 1,822,575 1,845,053 1,799,086 1,855,664 Transit 796,960 1,208,851 1,019,402 831,545 763,389 445,062 577,606 680,646 562,700 643,806 Total Business-Type Activities 35,147,896 36,619,142 36,762,463 43,088,191 39,017,882 39,452,801 45,428,450 46,024,363 48,759,013 58,016,079 Total Expenses 74,769,443 73,582,893 79,302,798 88,546,386 86,131,780 88,002,791 94,776,621 103,641,356 113,459,837 126,525,589 Program Revenues
Governmental Activities
Charges for Services
General government 1,384,406 1,314,126 1,072,515 1,644,853 1,950,391 2,718,096 3,599,525 2,789,940 2,323,515 2,887,138 Public Safety 746,075 836,963 511,568 698,400 1,053,814 1,797,174 2,333,797 1,126,325 1,288,633 1,769,744 Culture and recreation 1,252,263 1,317,891 1,459,252 1,405,219 2,415,811 3,448,733 4,556,115 3,144,602 3,513,049 2,313,254 Education 32,185 14,933 18,506 17,420 12,715 - 15,495 53,772 108,015 102,891 Urban redevelopment and housing - - - - - 1,372 - - - 27,393 Public works and facilities 9,179,640 11,226,143 8,943,756 8,832,175 13,912,931 21,628,437 31,616,856 20,264,863 22,452,539 21,306,466 Operating Grants and Contributions 651,321 3,977,143 5,587,725 5,264,119 5,184,744 5,355,866 8,298,306 9,533,395 9,094,106 13,068,873 Capital Grants and Contributions 3,255,890 2,685,758 3,806,413 1,354,228 1,119,210 1,559,687 5,124,528 2,329,059 2,958,926 - Total Governmental Activities 16,501,780 21,372,957 21,399,735 19,216,414 25,649,616 36,509,365 55,544,622 39,241,956 41,738,783 41,475,759 Business-Type Activities
Charges for Services
Water 13,400,117 16,383,662 17,982,749 15,661,241 14,132,515 15,322,625 12,998,938 12,884,150 20,610,667 25,731,822 Wastewater 7,692,439 17,547,426 10,905,805 10,914,957 11,715,959 14,256,920 9,311,644 10,360,863 15,585,307 18,822,587 Solid Waste 6,219,021 6,686,470 7,234,003 7,230,150 7,172,944 7,462,223 7,845,387 8,097,993 9,500,109 11,329,387 Airport 1,253,203 1,259,101 1,426,040 1,578,138 1,454,717 1,473,336 1,714,159 2,091,134 2,030,216 1,918,531 Transit 2,589 1,926 2,842 1,344 553 63 - - - -
Operating Grants and Contributions 2,058,693 478,160 4,901,085 398,364 458,708 233,448 518,658 325,791 636,300 825,571 Capital Grants and Contributions 2,125,839 2,174,326 1,401,690 1,288,121 1,636,972 4,578,125 9,994,350 3,036,338 1,152,929 1,510,020 Total Business-Type Activities 32,751,901 44,531,071 43,854,214 37,072,315 36,572,368 43,326,740 42,383,136 36,796,269 49,515,528 60,137,918 Total Program Revenues 49,253,681 65,904,028 65,253,949 56,288,729 62,221,984 79,836,105 97,927,758 76,038,225 91,254,311 101,613,677 *The City restated historical data for Airport and Transit City of Lincoln
Change in Net Position
Last Ten Fiscal Years
(Full Accrual Basis of Accounting)
Fiscal Year Ended June 30,
131 169
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (Expense)/Revenue
Governmental Activities (15,590,794) (21,140,600) (21,140,600) (26,241,781) (21,464,282) (12,040,625) 6,196,451 (18,375,037) (22,962,041) (27,033,751) Business-Type Activities 7,911,929 7,091,751 7,091,751 (6,015,876) (2,445,514) 3,873,939 (3,045,314) (9,228,094) 756,515 2,121,839 Total Net Expense (7,678,865) (14,048,849) (14,048,849) (32,257,657) (23,909,796) (8,166,686) 3,151,137 (27,603,131) (22,205,526) (24,911,912) General Revenues
Governmental Activities
Taxes:
Property taxes 8,983,948 9,705,899 10,066,655 10,527,123 11,103,454 12,605,783 13,819,529 15,804,351 16,534,725 16,815,190 Sales and use taxes 2,844,841 3,686,126 3,660,917 4,158,035 4,210,076 4,900,418 5,732,715 5,923,572 5,910,362 5,451,537 Franchise taxes 852,458 807,201 802,573 906,237 923,555 941,096 928,079 973,152 960,330 1,033,136 Other local taxes 222,229 283,663 303,022 346,865 260,495 202,521 407,621 297,541 298,080 411,529 Interest income 1,661,188 584,516 338,114 3,987,398 4,910,140 569,054 (4,624,516) 1,711,995 5,593,158 7,928,774 Miscellaneous 1,714,705 621,727 602,739 2,485,938 1,123,086 1,054,574 1,410,794 1,156,849 1,718,191 987,454 Special Item - agency fund bond proceeds - - - - 1,500,000 - - - - - Special Item - custodial fund bond proceeds - - - - - - - 5,057,387 - - Special Item - return of unused bond proceeds - - - - (14,048,856) - - (7,744,777) - - Capital Contribution from property owners - - - - - 6,889,963 - - - - Transfers - 1,375,484 2,868,785 2,022,620 840,575 (1,098,682) (3,364,704) (3,473,020) 716,585 1,916,566 Extraordinary gain 523,060 - - - - - - - - -
Total Governmental Activities 16,802,429 17,064,616 18,642,805 24,434,216 10,822,525 26,064,727 14,309,518 19,707,050 31,731,431 34,544,186 Business-Type Activities
Taxes:
Sales and use taxes 492,068 417,342 997,032 127,713 1,296,925 306,900 381,307 71,209 61,266 58,285 Interest income 735,107 75,455 (19,206) 2,191,471 2,329,372 129,650 (2,379,793) 346,329 2,780,424 3,338,465 Miscellaneous 239,418 984,836 200,260 99,153 2,322,591 1,704,393 1,142,019 3,594,886 1,068,597 312,593 Special Item - disposal of operations - - - - - - - (18,326,446) 4,937 - Gain on sale of capital assets 83,688 (40,665) 1,100 18,817 34,133 17,097 18,049 - - 19,169 Loss on disposal of capital assets - - - - - - - (161,092) (105,734) - Transfers (523,060) (1,375,484) (2,868,785) (2,022,620) (840,575) 1,098,682 3,364,704 3,473,020 (716,585) (1,916,566) Total Business-Type Activities 1,027,221 61,484 (1,689,599) 414,534 5,142,446 3,256,722 2,526,286 (11,002,094) 3,092,905 1,811,946 Change in Net Position
Governmental Activities 1,211,635 (4,075,984) (2,497,795) (1,807,565) (10,641,757) 14,024,102 20,505,969 1,332,013 8,769,390 7,510,435 Business-Type Activities 8,939,150 7,153,235 5,402,152 (5,601,342) 2,696,932 7,130,661 (519,028) (20,230,188) 3,849,420 3,933,785 Total Change in Net Position 10,150,785 3,077,251 2,904,357 (7,408,907) (7,944,825) 21,154,763 19,986,941 (18,898,175) 12,618,810 11,444,220 Source : City of Lincoln Audited Financial Reports
City of Lincoln
Change in Net Position (continued)
Last Ten Fiscal Years
(Full Accrual Basis of Accounting)
Fiscal Year Ended June 30,
(30,000,000)
(20,000,000)
(10,000,000)
-
10,000,000
20,000,000
30,000,000
40,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities Business-Type Activities
132 170
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable 387,438 492,748 330,040 5,371,094 5,306,135 5,059,976 5,045,194 5,260,992 5,418,622 6,400,919 Restricted 96 - - - - - - - - 11,620,714
Committed 3,929,856 4,063,745 11,695,956 7,204,704 7,096,007 6,280,471 6,905,274 7,145,829 7,770,504 7,770,504 Assigned - - 678,711 678,711 678,711 678,711 678,711 - - - Unassigned 6,530,612 8,685,506 1,566,065 3,860,869 6,836,827 12,147,645 15,397,663 17,850,646 17,173,545 13,714,390 Total General Fund 7,659,144 9,745,551 10,848,002 13,241,999 14,270,772 17,115,378 19,917,680 24,166,803 30,362,671 39,506,527 All Other Governmental Funds
Nonspendable 437,032 12,667,904 424,560 441,577 436,791 10,884,663 455,716 40,402,869 40,455,157 41,013,394 Restricted 99,829,860 76,041,673 86,304,574 84,105,879 75,718,003 82,956,757 110,583,757 73,965,669 93,130,486 120,513,061 Assigned 5,984,063 5,878,548 5,076,709 4,757,518 4,834,251 8,945,789 13,548,584 15,899,481 19,444,908 21,704,885 Unassigned (16,713,886) (4,251,315) (1,196,249) (1,572,478) (441,536) (252,394) (288,181) (392,561) (272,561) (277,471) Total All Other Governmental Funds 56,624,038 85,267,232 89,537,069 90,336,810 90,609,594 87,732,496 80,547,509 102,534,815 124,299,876 182,953,869 Source : City of Lincoln Audited Financial Reports
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
Fund Balances of Government Funds
City of Lincoln
Fiscal Year Ended June 30,
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total General Fund
Total All Other Governmental Funds
133 171
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes and assessments 16,357,235 20,106,114 18,567,904 19,516,493 20,601,909 23,113,462 26,155,258 29,284,295 31,025,209 32,044,825 Licenses and permits 1,562,852 2,039,503 1,610,635 1,642,440 2,991,491 5,633,116 7,520,490 5,998,348 6,079,173 5,621,303 Fines and penalties 94,962 68,350 64,909 68,102 56,661 52,932 50,196 97,291 86,422 117,130 Interest and investment income 1,620,941 350,746 334,845 3,778,750 4,556,485 424,125 (4,675,930) 1,561,575 5,282,464 7,549,327 Intergovernmental revenue 4,641,768 4,704,926 6,847,168 6,574,382 7,143,718 6,336,978 9,012,115 11,927,640 10,859,852 13,040,493 Charges for services 7,482,996 9,067,969 6,732,616 7,309,292 12,245,106 19,760,802 29,832,762 15,302,633 16,211,552 14,349,144 Other revenue 1,714,705 459,607 379,952 2,527,056 1,140,383 1,034,850 6,157,591 1,022,835 1,490,437 863,411 Total Revenues 33,475,459 36,797,215 34,538,029 41,416,515 48,735,753 56,356,265 74,052,482 65,194,617 71,035,109 73,585,633 Expenditures
Current
General government 3,197,417 3,319,937 3,202,404 3,112,059 3,837,505 4,774,854 6,008,466 7,363,473 6,123,840 9,297,888 Public safety 9,356,075 9,740,100 10,640,805 10,982,420 11,928,284 12,117,860 13,137,552 16,190,061 17,650,800 19,424,106 Public works and facilities 7,146,117 7,692,480 9,204,907 9,283,230 11,339,025 9,103,758 11,450,300 15,221,017 19,435,169 17,222,098 Culture and recreation 712,594 762,026 891,065 971,921 954,402 560,143 922,837 1,120,594 1,326,179 1,569,842 Education 710,838 542,818 610,054 674,174 700,966 651,526 820,449 926,889 899,093 1,232,244 Urban redevelopment and housing 510,589 933,166 840,001 646,904 725,067 666,323 582,316 329,074 282,572 341,584 Debt Service
Principal retirement 911,116 19,386,939 1,008,510 918,697 952,261 1,138,810 1,217,867 1,252,165 1,277,875 1,496,703 Interest and bond issuance costs 1,003,612 (51,400) 632,227 621,105 599,557 619,843 582,144 714,295 500,671 722,599 Capital Outlay 5,224,887 8,512,198 9,982,312 11,154,911 10,291,590 6,547,605 10,554,897 7,549,299 9,795,055 13,853,229 Total Expenditures 28,773,245 50,838,264 37,012,285 38,365,421 41,328,657 36,180,722 45,276,828 50,666,867 57,291,254 65,160,293 Excess(Deficiency) of
Revenue over Expenditures 4,702,214 (14,041,049) (2,474,256) 3,051,094 7,407,096 20,175,543 28,775,654 14,527,750 13,743,855 8,425,340 Other Financing Sources (Uses)
Proceeds from Bond Issuance - 17,760,000 - - 1,500,000 - - - - - Return of Bond Funds - - (123,168) (4,410,054) (14,048,856) - - - - - Inception of SBITA - - - - - - - 145,560 80,118 -
Contribution from property owners - - - - - 6,889,963 - - - - Operating transfers in 2,637,544 20,616,774 5,256,776 6,496,221 2,274,238 2,241,142 2,164,260 1,473,177 2,174,849 4,028,843 Operating transfers out (1,967,470) (19,241,290) (2,596,991) (5,322,452) (1,457,663) (3,070,219) (5,528,964) (5,543,433) (1,458,264) (2,112,277) Proceeds from sale of capital assets - - - 152,699 - - - - - - Proceeds from capital leases - - - - - - 220,000 - - -
Inception of financed purchases and leases - (213,523) - - - - - - - 12,422,108 Total Other Financing Sources (Uses) 670,074 18,921,961 2,536,617 (3,083,586) (11,732,281) 6,060,886 (3,144,704) (3,924,696) 796,703 14,338,674 Special Items (Note 18)
Custodial fund bond proceeds - - - - - - - 5,057,387 - - Return of unused bond funds - - - - - - - (7,744,777) - - Net Change in fund balances before
prior period adjustments and
extraordinary items 5,372,288 62,361 62,361 (4,325,185) 26,236,429 26,236,429 10,603,054 7,915,664 14,540,558 22,764,014 Prior period adjustment - (6,544,385) 1,239,196 - (57,500) - - (109,457) 8,447,178 16,575,721 Net Change in fund balances 5,372,288 (6,482,024) 1,301,557 (4,325,185) 26,178,929 26,236,429 10,603,054 7,806,207 22,987,736 39,339,735 Debt service as a percentage of
noncapital expenditures 8.1% 45.7% 6.1% 5.7% 5.0% 5.9% 5.2% 4.6% 3.7% 4.3% Source : City of Lincoln Audited Financial Reports
City of Lincoln
Changes in Fund Balances of Government Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
134 172
CITY OF LINCOLN
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable
Fiscal Year Assessed Direct
Ending June 30 Secured Unsecured Value % Change Rate
2016 6,700,348,821 89,368,958 197,100 6,789,914,879 7.731% 1.032% 2017 7,086,425,439 98,779,370 197,100 7,185,401,909 5.825% 1.039% 2018 7,511,498,201 91,269,260 - 7,602,767,461 5.809% 1.043% 2019 8,035,437,566 95,245,723 - 8,130,683,289 6.944% 1.056% 2020 8,404,444,524 114,687,131 - 8,519,131,655 4.778% 1.062% 2021 8,806,503,581 130,354,289 - 8,936,857,870 4.903% 1.069% 2022 9,352,403,919 124,469,858 - 9,476,873,777 6.043% 1.063% 2023 10,409,810,083 149,889,921 - 10,559,700,004 11.426% 1.063% 2024 11,328,653,734 154,948,870 - 11,483,602,604 8.749% 1.058% 2025 12,011,379,821 161,489,222 - 12,172,869,043 6.002% 1.051% Notes:
In 1978, the votes of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based upon the assessed value of the property being taxes. Each year, the assessed value of property tax may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the acutal market value of the taxable property and is subject to the limitations described above.
Source: California Municipal Statistics
SBE Non Unitary
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Secured Unsecured SBE Non Unitary
135 173
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City of Lincoln
General purpose 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Western Placer Unified School District 0.03% 0.04% 0.04% 0.06% 0.05% 0.05% 0.05% 0.04% 0.04% 0.04% Sierra Joint Community College District 0.00% 0.00% 0.00% 0.00% 0.02% 0.01% 0.01% 0.02% 0.02% 0.01%
1.03% 1.04% 1.04% 1.06% 1.06% 1.07% 1.06% 1.06% 1.06% 1.05%
CITY OF LINCOLN
Property Tax Rates - All Overlapping Governments
Last Ten Fiscal Years
Fiscal Year Ended June 30, 2025
136 174
% of Total City
Taxable Taxable
Assessed Assessed
Property Owner Primary Land Use Rank Value Value
Sierra Pacific Industries Heavy Industrial 1 $ 108,767,125 0.91% PW Fund B LP Warehouse 2 93,112,331 0.78%
Villas at Twelve Bridges Property LLC Residential- Development 3 41,896,481 0.35% Cyrene at Meadowlands LLC Residential- Development 4 41,443,120 0.35% Tri Pointe Homes Holdings Inc Residential- Development 5 33,265,703 0.28% J B R Inc Commercial 6 29,689,510 0.25%
Taylor Morrison of California LLC Residential Development 7 29,068,396 0.24% Kaiser Foundation Health Plan Inc Medical Buildings 8 27,543,237 0.23% JPS Development LLC Commercial 9 27,293,107 0.23%
Lincoln Summerset ALMC LLC Assisted Living Facility 10 26,486,827 0.22% 458,565,837 3.82%
2024-2025 Local Secured Assessed Valuation $ 12,011,379,821 % of Total City
Taxable Taxable
Assessed Assessed
Property Owner Primary Land Use Rank Value Value
Sierra Pacific Industires Industrial 1 $ 54,465,208 0.81% OK&B Warehouse 2 35,389,719 0.53%
Buzz Oates Enterprises II Warehouse 3 23,202,601 0.35%
JPS Development LLC Shopping Center 4 19,044,372 0.28%
Target Corporation Commercial 5 17,663,480 0.26%
Lowes HIW Inc Commercial 6 17,239,897 0.26%
Auburn Creek Investors Apartments 7 16,915,433 0.25%
J B R Inc Commercial 8 16,423,900 0.25%
Shadowbriar Investments Inc Undeveloped 9 16,207,176 0.24% Sterling Point Station LLC Commercial 10 14,871,703 0.22% 231,423,489 3.45%
2015-2016 Local Secured Assessed Valuation: $ 6,700,545,921 Source: California Municipal Statistics
2015-16
CITY OF LINCOLN
Principal Property Tax Payers
Current Year and Nine Years Ago
2024-2025
137 175
Collected within the
Fiscal Year of the Levy
Taxes Levied
for the Percent
Fiscal Year Fiscal Year Amount of Levy
2015 / 2016 5,046,671 5,004,975 99.17%
2016 / 2017 5,366,078 5,324,911 99.23%
2017 / 2018 5,681,659 5,641,895 99.30%
2018 / 2019 6,101,116 6,060,436 99.33%
2019 / 2020 6,378,293 6,290,019 98.62%
2020 / 2021 6,664,607 6,612,758 99.22%
2021 / 2022 7,072,253 7,015,940 99.20%
2022 / 2023 7,755,930 7,690,780 99.16%
2023 / 2024 8,501,661 8,428,547 99.14%
2024 / 2025 8,930,315 8,852,621 99.13%
Notes:
Source : Placer County Auditor-Controller
CITY OF LINCOLN
Property Tax Levies and Collections
Last Ten Fiscal Years
Current tax collections beginning in 1993 have been reduced by mandatory tax reallocation imposed by the State of California. Placer County uses an estimate for the delinquency rate and compiles delinquency as a lump sum.
Subsequent collections are not out by fiscal year from the County; thus this information is not available. 138 176
Governmental Activities Business-Type Activities
Total Percentage Percentage
Fiscal Year Subscription Financed Lease Subscription Capital Primary of Personal of Assessed Per Ending June 30 Bonds SBITA Purchases Liability Loans SBITA Lease Government Income (1) Value (2) Capita (1) 2016 19,201,120 - 235,448 - 19,201,120 13,410 - 1,534,122 1,790,894 20,992,014 6501.46% 0.31% 464 2017 18,935,573 - 88,510 - 18,935,573 - - - - 18,935,573 7291.04% 0.26% 420 2018 17,959,447 - - - 17,959,447 - - - - 17,959,447 7955.71% 0.24% 379 2019 16,993,319 - 1,443,636 - 16,993,319 - - - - 16,993,319 7965.99% 0.23% 383 2020 16,012,191 - 1,386,471 - 16,012,191 - - - - 16,012,191 9041.75% 0.20% 358 2021 15,008,802 - 1,192,660 - 15,008,802 - - - - 15,008,802 10416.23% 0.18% 336 2022 13,978,796 - 1,164,794 - 13,978,796 - - - - 13,978,796 11683.07% 0.16% 307 2023 12,918,790 679,352 912,629 - 13,598,142 - - - - 13,598,142 14201.57% 0.13% 279 2024 11,813,785 574,864 670,001 - 12,388,649 - - - - 12,388,649 15726.70% 0.11% 255 2025 10,668,780 504,831 12,170,621 611,598 23,955,830 - 218,079 - 218,079 24,173,909 9062.51% 0.21% 462 (1) See Demographic and Economic Statistics schedule for personal income and population data. (2) See Assessed Value and Estimated Actual Value of Taxable Property schedule for property value data. n/a - information is not available
Source: City of Lincoln Audited Financial Reports (Capital Assets Net of Depreciation) in MD&A section of ACFR Total
Governmental
Activities
Total BusinessType Activities
CITY OF LINCOLN
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Legal Bonded Debt Margin
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2016201720182019202020212022202320242025
Total Governmental Activities Total Business-Type Activities 139 177
2024-25 Assessed Valuation: $12,173,613,361
Total Debt City’s Share of
6/30/2025 % Applicable (1) Debt 6/30/25
OVERLAPPING TAX AND ASSESSMENT DEBT:
Sierra Joint Community College District School Facilities Improvement District No. 4 $ 190,940,000 12.659% $ 24,171,095 Western Placer Unified School District 100,115,000 86.096% $ 86,195,010 Western Placer Unified School District Community Facilities District No. 1 6,895,941 100.00% $ 6,895,941 City of Lincoln Community Facilities Districts 84,680,000 100.00% $ 84,680,000 California Municipal Finance Authority Community Facilities Districts 66,315,000 100.00% $ 66,315,000 City of Lincoln 1915 Act Bonds 6,957,000 100.00% $ 6,957,000 California Statewide Communities Development Authority
Community Facilities Districts 8,730,000 100.00% $ 8,730,000 California Statewide Communities Development Authority Assessment Districts 10,050,841 100.00% $ 10,050,841 Total Overlapping Tax and Assessment Debt $ 293,994,887 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Placer County General Fund Obligations $ 73,660,000 10.953% $ 8,067,980 Western Placer Unified School District Certificates of Participation 114,220,000 86.096% 98,338,851 City of Lincoln General Fund Obligations 21,662,638 100.000% 21,662,638 add Premium (discount) on bonds, net 688,780 100.000% 688,780 add Financed purchases 487,983 100.000% 487,983
add Subscription (SBITA) liability 504,831 100.000% 504,831 Placer Mosquito and Vector Control District Certificates of Participation 1,273,000 10.953% 139,432 Total Direct and Overlapping General Fund Debt $ 129,890,495 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) $ 2,455,000 100.00% $ 2,455,000 TOTAL DIRECT DEBT $ 23,344,232
TOTAL OVERLAPPING DEBT 402,996,150
COMBINED TOTAL DEBT $ 426,340,382 (2)
Ratios to 2024-25 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.42%
Total Direct Debt ($21,662,638) 0.18%
Combined Total Debt 3.49%
Ratios to Redevelopment Successor Agency Incremental Valuation ($646,948,584):
Total Overlapping Tax Increment Debt 0.33%
KD:($600)
Source: California Municipal Statistics
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
CITY OF LINCOLN
Direct and Overlapping Bonded Debt
As of June 30, 2025
140 178
Secured Property Assessed Value, Net of Exempt Real Property $ 12,011,379,821 Bonded debt limit (3.75% of assessed value) (a) $ 450,426,743 Amount of Debt Subject to Limit:
Total Bonded Debt 24,173,909
Less Total Bonds not subject to limit (b) -
Amount of debt not subject to limit 24,173,909
Legal debt margin $ 426,252,834
Total net debt
Total net debt Legal applicable to the
Fiscal Year Debt applicable to Debt limit as a %
Ending June 30 Limit Limit Margin of debt limit
2016 251,263,081 19,201,120 232,061,961 7.64%
2017 265,740,954 17,868,510 247,872,444 6.72%
2018 281,681,183 17,959,447 263,721,736 6.38%
2019 301,328,909 18,436,955 282,891,954 6.12%
2020 315,166,670 17,398,662 297,768,008 5.52%
2021 330,243,884 16,201,462 314,042,422 4.91%
2022 350,715,147 15,143,590 335,571,557 4.32%
2023 390,367,878 14,510,771 375,857,107 3.72%
2024 424,824,515 13,291,855 411,532,660 3.13%
2025 450,426,743 24,173,909 426,252,834 5.37%
(a) California Government Code Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value at full market value when it was previously 25% of market value.
Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
(b) Self-supporting debt such as lease revenue bonds and bonds payable from fees and charges of Enterprise Funds are not subject to limit.
Source : California Municipal Statistics, City of Lincoln Audited Financial Reports
CITY OF LINCOLN
Computation of Legal Bonded Debt Margin
June 30, 2025
141 179
Calendar
Year Population Personal Income
Per Capita
Personal Income
Unemployment
Rate
Median
Age
% of Pop25+ with
High Scholl Degree
% of Pop25+ with
Bachelor's Degree
2015 47,339 1,428,801,000 $ 30,182 5.5% 42.3 93.5% 32.6% 2016 48,165 1,468,686,000 $ 30,493 4.9% 42.3 93.0% 33.3% 2017 48,591 1,573,143,000 $ 32,375 3.8% 42.7 93.0% 34.4% 2018 48,277 1,687,581,000 $ 34,956 3.4% 43.1 92.4% 33.2% 2019 49,317 1,769,236,000 $ 35,874 3.4% 43.3 92.4% 33.5% 2020 49,624 1,964,278,000 $ 39,583 7.7% 43.3 92.8% 34.2% 2021 51,252 2,053,695,000 $ 40,070 5.5% 43.7 94.6% 35.3% 2022 52,313 2,190,762,000 $ 41,877 3.5% 43.9 94.0% 35.2% 2023 53,231 2,472,143,000 $ 46,441 4.2% 44.5 95.0% 37.1% 2024 54,520 2,685,043,000 $ 49,248 4.3% 43.7 94.0% 38.4%
CITY OF LINCOLN
Demographic and Economic Statistics
Last Ten Calendar Years
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
$22,000
$27,000
$32,000
$37,000
$42,000
$47,000
$52,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Personal Income and Unemployment
Per Capita
Personal Income
Unemployment
Rate
142 180
Company Business Description Size (employees)
HORIZON CHARTER SCHOOLS SCHOOLS 200
SIERRA PACIFIC LINCOLN LUMBER-MANUFACTURERS 300
LOWE'S HOME IMPROVEMENT HOME CENTERS 164
LINCOLN HIGH SCHOOL SCHOOLS 130
THUNDER VALLEY CASINO CASINOS (EXCEPT CASINO HOTELS) 2500 CITY OF LINCOLN GOVERNMENT OFFICES-CITY 140
SUPERIOR EQUIPMENT REPAIR COMMERCIAL AND INDUSTRIAL MACHINERY AND EQUIPMENT 300 LINCOLN MEADOWS CARE CENTER REHABILITATION SERVICES 140 SAFEWAY GROCERS-RETAIL 120
PACIFIC COAST CO OFFICES OF REAL ESTATE AGENTS AND BROKERS 150 Source: EDD, Labor Market Information Division
CITY OF LINCOLN
Principal Employers
2025
143 181
7 Eleven Service Stations
Aisle 1 Service Stations
Apex Underground Supply Heavy Industrial
Arco AM PM Service Stations
Chevron Service Stations
Chevron Service Stations
Chevron Service Stations
GDAS Lincoln Heavy Industrial
Home Depot Building Materials
In n Out Burger Quick-Service Restaurants
Lowes Building Materials
McDonald's Quick-Service Restaurants
National Building Systems Building Materials
Old Town Pizza Casual Dining
Petsmart Specialty Stores
Plunge Electronics/Appliance Stores
Raley's Grocery Stores
Ross Family Apparel
Safeway Grocery Stores
Safeway Fuel Service Stations
Sun City Lincoln Hills Community Association Leisure/Entertainment Target Discount Dept Stores
TJ Maxx Family Apparel
Ulta Beauty Specialty Stores
Walmart Neighborhood Market Grocery Stores
Sources: HDL, Coren & Cone
CITY OF LINCOLN
Sales Tax Producers - Top 25
FY 2024-2025
144 182
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City Manager
Administration 2.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 2.8 2.0
Human Resources 2.0 2.0 5.0 3.8 2.5 2.8 3.5 3.0 3.0 4.0 Information Technology / GIS - - - - 2.0 4.5 5.0 7.0 8.0 10.0 Economic Development 1.0 1.0 1.0 1.0 1.0 1.5 1.0 1.0 1.0 1.0 Records Management 2.0 2.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0 City Attorney
City Attorney - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0
Code Enforcement - - - 2.0 1.0 1.0 1.0 2.0 2.0 2.0
Finance
Administration 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0
Finance 9.0 9.0 9.0 9.3 11.0 11.0 11.0 11.0 13.0 13.0
Central Services 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Community Development
Administration 5.0 5.0 5.0 4.0 4.0 4.0 4.0 5.0 6.0 6.0
Planning 3.5 4.0 4.0 3.0 3.0 3.0 3.0 4.0 4.0 4.0
Building 2.0 2.0 2.0 2.0 2.0 2.0 3.0 5.0 5.0 5.0
Development & Engineering 1.0 1.0 1.0 2.0 2.0 3.0 3.0 4.0 4.0 4.0 Public Works
Administration 1.0 1.0 1.0 7.0 6.5 6.5 6.5 8.0 9.0 9.0
Engineering - - 7.0 8.5 5.0 5.0 7.0 7.0 8.0 8.0
Water 10.9 10.9 10.9 8.4 9.1 9.1 8.0 9.0 9.0 9.0
Wastewater 7.8 7.8 7.8 6.5 7.0 7.0 7.0 8.0 7.0 8.0
Solid Waste 13.5 13.5 13.5 15.0 15.0 15.0 16.0 18.0 18.0 19.0 Streets 6.3 6.3 6.3 7.9 7.9 8.9 10.0 10.0 10.0 11.0
Transit 2.0 2.0 2.0 1.0 - - - - - -
Airport 2.0 2.0 2.0 2.0 1.0 1.5 1.5 1.5 1.5 1.5
Parks & Facilities 5.0 5.0 5.0 7.0 7.0 7.0 7.0 8.0 7.5 7.5 Fleet Maintenance 5.0 5.0 5.0 5.5 5.5 5.5 6.0 5.5 5.0 5.0 Police
Administration 2.5 3.5 3.5 4.0 4.0 2.5 3.5 3.5 3.5 3.5
Communications 6.0 6.0 6.0 6.0 6.0 6.0 8.0 10.0 10.0 10.0 Operations 19.5 22.5 22.5 22.5 22.5 25.5 28.0 29.0 29.0 30.0 Fire
Administration 2.0 2.0 2.0 2.0 2.0 2.5 3.5 3.5 4.5 4.5
Operations 18.0 18.0 18.0 18.0 18.0 18.0 18.0 27.0 27.0 27.0 Library 3.9 5.6 3.4 5.7 5.9 5.9 6.6 6.6 6.6 7.8
Recreation (a) 4.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 6.0
Total Full-Time Equivalents 142.0 149.2 157.0 168.0 164.9 172.7 185.1 210.6 217.4 227.8 (a) Includes regular employees only, does not include part-time seasonal.
Source: City of Lincoln Original Budget Documents
CITY OF LINCOLN
Full Time Equivalent City Government Employees
Last Ten Fiscal Years
Fiscal Year Ending June 30
145
183
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Business Licenses
Annual business license 1,988 1,979 2,330 2,442 2,239 2,251 2,309 2,229 2,587 3,284 Environment and Utilities
Gallons of wastewater treated per year (in millions) 1,178 1,935 1,709 1,880 1,669 1,602 1,850 2,046 1,952 2,077 Gallons of wastewater discharged per year (in millions) 969 1,748 1,572 1,765 1,626 1,536 1,730 1,949 1,860 1,969 Fire
Fires per year 149 152 158 145 154 153 152 135 140 150
Emergency medical calls per year 2,637 3,153 3,280 3,306 3,529 3,791 4,105 4,356 4,489 4,282 Hazardous materials incidents per year 41 58 52 49 65 52 57 65 76 37 Non-emergency service calls per year 1,250 1,442 1,261 1,176 1,428 1,571 1,813 1,777 1,847 2,107 Police
911 calls per year 10,577 11,082 13,095 13,442 14,027 16,341 15,100 13,919 12,985 13,186 Cases investigated per year 1,872 2,288 2,226 2,310 2,209 2,693 2,627 2,428 2,350 2,194 Arrests per year 403 517 786 812 755 1,118 882 1,038 1,068 966 Building Permits
New Single Family Dwellings 188 252 70 115 404 757 1,624 1,289 613 421 Commercial (New and Tenant Improvements) 146 132 26 119 94 84 104 91 106 108 All Other 2,820 2,314 1,100 1,847 1,945 2,606 3,390 3,594 2,443 2,011 n/a = information not available
** new licenses applied for
Source : City of Lincoln
CITY OF LINCOLN
Operating Indicators
Last Ten Fiscal Years
Fiscal Year Ending June 30
146 184
____________________________________________________________________________________________
CITY OF LINCOLN
SINGLE AUDIT AND RELATED REPORTS
FOR THE YEAR ENDED
JUNE 30, 2025
___________________________________________________________________________________________ MUN CPAs, LLP
1760 Creekside Oaks Drive, Suite 160
Sacramento, California 95833
185
CITY OF LINCOLN
SINGLE AUDIT AND RELATED REPORTS
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2
Independent Auditor's Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 3 - 4 Schedule of Expenditures of Federal Awards 5
Notes to the Schedule of Expenditures of Federal Awards 6 Schedule of Findings and Questioned Costs 7 - 10
Schedule of Prior Year Findings 11 - 12
186
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council
City of Lincoln, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lincoln (City), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 16, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2025-001 to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2025-002 to be a significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
City's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
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Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California
March 16, 2026
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the City Council
City of Lincoln, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Lincoln’s (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City's major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
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MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI 189
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, 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. We issued our report thereon dated March 16, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Sacramento, California
March 16, 2026
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CITY OF LINCOLN
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2025
Federal Grantor/Pass-Through Grantor Program
Assistance
Listing
Number
Pass-Through Entity
Identifying
Number/Grant Number
Federal
Expenditures
U.S Department of Housing and Urban Development
Direct programs:
Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 Beginning Loan Balance $ 228,408 Pass-through California Department of General Services
Community Development Block Grants/Entitlement Grants 14.228 20-CDBG-CV2-3-00238 150,816 Community Development Block Grants/Entitlement Grants 14.228 20-CDBG-CV2-3-00237 103,746 Total Community Development Block Grants /
Entitlement Grants 482,970
Direct programs:
Home Investment Partnerships Program 14.239 Beginning Loan Balance 979,651 Total U.S. Department of Housing and Urban Development 1,462,621 U.S Department of Transportation
Direct programs:
Airport Improvement Program 20.106 3-06-0120-028-2022 26,845 Total Airport Improvement Program 26,845
Pass-Through State of California Office of Traffic Safety Highway Safety Cluster:
State and Community Highway Safety 20.600 PT25042 8,384 National Priority Safety Programs 20.616 TR25013 78,688 Total Highway Safety Cluster 87,072
Total U.S. Department of Transportation 113,917
U.S Department of the Treasury
Pass-Through California State Controller:
COVID-19 - Coronavirus State and Local Fiscal Recovery
Funds 21.027 N/A 5,019,895
Total U.S. Department of the Treasury 5,019,895
Institute of Museum and Library Services
Pass-Through California State Library
Grants to States: Lincoln Public Library Teen Internship Program 45.310 N/A 54,355
Total Institute of Museum and Library Services 54,355
U.S Department of Energy
Direct programs:
Energy Efficiency and Conservation Block Grant Program 81.128 76,610 Total U.S. Department of Energy 76,610
Total Expenditures of Federal Awards $ 6,727,398
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CITY OF LINCOLN
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2025
NOTE 1: REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Lincoln (the City). The City reporting entity is defined in Note 1 of the City's Annual Comprehensive Financial Report. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule. When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity.
NOTE 2: BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on accounting principles generally accepted in the United States of America. The information in this schedule is presented on the accrual basis of accounting and in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
NOTE 3: RELATIONSHIP TO FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the City's basic financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues in the governmental funds.
NOTE 4: CLAIMS
The City of Lincoln has received federal grants for specific purposes that are subject to review and audit by the Federal Government pass-through entity. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material which have not already been recorded.
NOTE 5: LOANS OUTSTANDING
The programs listed below had the following aggregate federally funded loans outstanding at June 30, 2025:
Federal AL
Number Program Title
Amount
Outstanding
14.228 Community Development Block Grants/State's Program and Non-entitlement Grants in Hawaii $ 364,007
14.239 Home Investment Partnerships Program 1,382,155
Total Loans Outstanding $ 1,746,162
NOTE 6: INDIRECT COSTS
The City elected not to use the 10% de minimis indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2025.
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CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2025
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes
Significant deficiency(ies) identified Yes
Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516 of the Uniform Guidance No
Identification of Major Programs:
Coronavirus State and Local Fiscal Recovery Funds, AL 21.027 Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? No
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CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT YEAR FINDINGS
FOR THE YEAR ENDED JUNE 30, 2025
SECTION II: FINANCIAL STATEMENT FINDINGS
Findings relating to the financial statements which are required to be reported in accordance with Generally Accepted Government Auditing Standards.
Finding 2025-001 Special Assessment Debt Proceeds (Material Weakness) - Repeat Finding Criteria
Certain deficiencies in the internal control system over financial reporting could adversely affect an entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.
GASB Statement No. 6 - Accounting and Reporting for Special Assessments, Paragraph 19 - The debt service transactions of a special assessment issue for which the government is not obligated in any manner should be reported in a custodial fund rather than a debt service fund, to reflect the fact that the government's duties are limited to acting as an agent for the assessed property owners and the bondholders. The construction phase should be reported like other capital improvements - in a capital projects fund, or other appropriate fund. The source of funds in the capital project fund should be identified by a description other than - bond proceeds, such as - contribution from property owners. The capital assets constructed or acquired (other than those related to an enterprise fund) should be reported in the governmental activities, as appropriate. Displaying the transactions in this way recognizes that the construction or acquisition is a governmental activity and results in the addition of a governmental asset, but is not financed by governmental debt.
Condition
Approximately $4.7 million relating to costs incurred in prior years for the construction of roadway improvements was transferred from the LPFA 12 Bridges Refunding Series 2011 A & B custodial fund to the Water Connections special revenue fund. Construction of these projects should have been paid with the proceeds of the special assessment debt.
Cause
The City has numerous issues of special assessment debt dating back to 1999 that have been refunded several times.
During the early 2000’s when the City experienced unprecedented growth and development, the Administrative department did not have adequate staffing to keep up with the appropriate accounting required to properly track use of the bond proceeds and the various debt refundings. Therefore, documentation to support the amounts of project funds by funding source and transfers was not properly maintained, and funds have not been properly applied to projects in the year the projects were constructed. The transfers noted above are a result of current management actively working to research and resolve any potential adjustments resulting from these prior transactions.
Effect
The City was not appropriately transferring the special assessment debt proceeds to the capital projects funds for use when the projects were constructed. Consequently, other funding sources may have contributed to the costs of these projects.
Recommendation
We recommend the City continue to reconcile all special assessment debt and related activity (cash with fiscal agent, special assessment revenue, bond payments, and capital projects) to ensure the funds are recorded in the proper fund and being tracked and used for the appropriate projects. Procedures should be developed for the transfer of special assessment bond funds to/from City capital project funds for the approved capital projects. Transfers between the funds should be adequately supported.
Views of Responsible Officials
The City agrees with this finding and we have completed the reconciliation during the Fiscal Year ended 2024/25. 8 194
CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT YEAR FINDINGS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
Finding 2025-002 Financial Close & Financial Reporting (Significant Deficiency) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.
Condition
During the performance of the audit, processes utilized for closing and reporting of financial activity for the fiscal year were not effective. The following conditions existed:
Bank reconciliations were not being performed timely. The monthly Master Close List reconciliation procedures were not being performed. Account reconciliations were not being performed timely. Upon receiving the trial balance to be audited, several issues were identified such as: incorrect classification of funds, incorrect classification of accounts, prior period adjustment noted in 2025-001 was recorded as current year activity, interest receivable was incorrectly recorded as cash, Section 115 trust related to pension pre-funding was incorrectly included with the OPEB trust fund, and the Treasury fund was not in balance. As a result, it was determined that additional reconciliations were needed and approximately 30 journal entries were provided.
Cause
In addition to implementing a new financial Enterprise Resource Planning (ERP) system, the City experienced turnover in the Finance Department during the year. These changes contributed significantly to delays in the reconciliation and financial close processes.
Effect
The financial statements as presented to the auditors contained material misstatements that required adjustment.
Recommendation
As the City continues to work through their first full year with its new financial ERP software, we recommend the City enhance and adjust their monthly and year-end close reconciliations and processes to ensure accurate, timely, and effective completion.
Views of Responsible Officials
The City agrees with this finding. The Finance department was down staffed 50% for over half of the fiscal year resulting in a late close process. In addition, the transition to a new financial ERP required completely new processes and procedures that resulted in some of the issues identified. The City is fortunate to have hired an experienced Accounting Manager, and we are confident that under his leadership these issues have been resolved which will result in a more streamlined and efficient audit process going forward.
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CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT YEAR FINDINGS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
SECTION III: FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Findings and questioned costs for Federal Awards, which includes audit findings as defined in section 200.516 of the Uniform Guidance
None reported.
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CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT YEAR FINDINGS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
Finding 2024-001 Special Assessment Debt Proceeds (Material Weakness) Condition
Approximately $7.2 million relating to costs incurred in prior years for the construction of roadway improvements was transferred from the LPFA 12 Bridges Refunding Series 2011 A & B custodial fund to the PFE Transportation special revenue fund. Construction of these projects should have been paid with the proceeds of the special assessment debt.
Approximately $1.2 million relating to costs incurred in prior years for the construction of roadway improvements including a sound wall was transferred from the CFD 2005-1 Series 2006 (Sorrento) custodial fund to the PFE Transportation special revenue fund. Construction of this project should have been paid with the proceeds of special assessment debt.
Recommendation
We recommend the City continue to reconcile all special assessment debt and related activity (cash with fiscal agent, special assessment revenue, bond payments, and capital projects) to ensure the funds are recorded in the proper fund and being tracked and used for the appropriate projects. Procedures should be developed for the transfer of special assessment bond funds to/from City capital project funds for the approved capital projects.
Transfers between the funds should be adequately supported.
Status
Not implemented, see repeat finding 2025-001
Finding 2024-002 Financial Close & Financial Reporting (Significant Deficiency) Condition
During the performance of the audit, processes utilized for closing and reporting of financial activity for the fiscal year were not effective. Approximately 20 journal entries were proposed and posted to the trial balance for audit. Some of the specific financial statement areas that required adjustments included:
Accounts payable had not been reconciled and had an overall debit balance of approximately $34,000.
Upon inquiry, journal entries were provided to correct the balance. We noted a five-year software agreement entered into during the year was not correctly included in the City's SBITA calculation in accordance with GASB 96. In addition, when recording the activity for this agreement, the City incorrectly posted the allocation between funds and the inception was not included in governmental funds.
The City changed systems for the tracking of capital assets and SBITAs during the year. The City did not reconcile beginning balances and activity between the two systems and spreadsheets, resulting in several errors and adjustments.
Workers’ compensation payable was not properly reconciled resulting in an overstatement of the liability and expenditure account balances of approximately $219,153. In relation to long-term debt, the City recorded principal and interest payments in the same account and did not true up debt balances in the long term debt/asset fund.
Recommendation
We recommend the City develop checklists or other guidance documents over the City's closing process to ensure all supporting schedules agree and reconcile to respective account balances prior to the trial balance being provided for the audit.
Status
Implemented
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CITY OF LINCOLN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT YEAR FINDINGS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
Finding 2024-003 Grant Accounting (Significant Deficiency) Condition
Three grants had revenue recognized in the current year related to expenditures incurred in the prior year. The expenses were not claimed in the appropriate period due to expense miscodings.
Unavailable revenue related to one grant was improperly recorded.
One grant had revenue that was double posted.
Recommendation
We recommend the City enhance their grant reconciliation process. With assistance from department heads/grant managers, summarized grant information and program information should be provided to the Finance Department such as:
Copies of grant agreements and budgets
Copies of material expenditures with proper approvals of coding and application Copies of reimbursement requests submitted
Monitoring of grant cash flow.
The Finance Department should then be able to prepare a reconciliation of grant revenues, expenditures, unearned revenue, cash received, and receivables for fiscal year-end.
Status
Implemented.
12 198
CITY OF LINCOLN
APPROPRIATIONS LIMIT CALCULATION
AS OF JUNE 30, 2025
____________________________________________________________________________________________ MUN CPAs, LLP
1760 CREEKSIDE OAKS DRIVE, SUITE 160
SACRAMENTO, CALIFORNIA 95833
199
INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the City Council of
the City of Lincoln
Lincoln, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Calculation of the City of Lincoln, California, for the year ended June 30, 2025. The City of Lincoln’s management is responsible for the Appropriations Limit Calculation.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for its purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
1. We obtained the completed internal calculations and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by a resolution of the City Council. We compared the population and inflation options included in the aforementioned calculations to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the Appropriations Limit Calculation, we added June 30, 2024’s appropriations limit to the annual permitted adjustments and agreed the resulting amount to the June 30, 2025 appropriations limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared current year information presented in the appropriations limit calculation to supporting worksheets.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the June 30, 2024 appropriations limit presented in the appropriations limit calculation to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
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MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI 200
No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIIIB of the California Constitution.
This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.
Sacramento, California
March 16, 2026
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CITY OF LINCOLN
APPROPRIATIONS LIMIT CALCULATION
JUNE 30, 2025
Amount Source
A. Prior year's appropriations limit at June 30, 2024 $ 40,307,399 B. Adjustment factors for the current fiscal year:
1. Population change 1.0179 * State Finance
2. Inflation (per capita personal income change) 1.0362 * State Finance Total adjustment 1.0547 * [(B1xB2)-1.0]
C. Annual adjustment 2,206,749 AxB
D. Other Adjustments
Lost responsibility (-) -
Transfer to fees (-) -
Assumed responsibility (+) -
-
E. Total adjustments 2,206,749 C+D
F. Current year's appropriations limit at June 30, 2025 $ 42,514,148 A+E * Rounded to the nearest ten thousandth
202
Management Letter
March 16, 2026
City of Lincoln
600 6th Street
Lincoln, California 95648
In planning and performing our audit of the financial statements of the City of Lincoln (the City) as of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
However, during our audit we became aware of deficiencies in internal control other than significant deficiencies and material weaknesses and matters that are opportunities for strengthening internal controls and operating efficiency.
The memorandum that accompanies this letter summarizes our comments and suggestions regarding those matters.
A separate letter dated March 16, 2026, contains our communication of significant deficiencies or material weaknesses in the City’s internal control. This letter does not affect our report dated March 16, 2026, on the financial statements of the City of Lincoln.
We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various City personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
The City’s responses to the comments identified in our audit are described in the accompanying schedule of control deficiencies and internal control recommendations. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
This communication is intended solely for the information and use of management, City Council, and others within the City, and is not intended to be, and should not be, used by anyone other than those specified parties.
Sincerely,
MUN CPAs, LLP
MUNCPAs LLP
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MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI 203
City of Lincoln
Control Deficiencies and Internal Control Recommendations June 30, 2025
Classification of Receivable Accounts
During our testing of receivables, we noted items were not recorded in the proper receivable account. For example, property tax receivables were recorded in both accounts and interest receivable accounts. To facilitate and improve account reconciliations, we recommend the City ensure all receivables are consistently recorded in the proper accounts.
Management’s Response:
The City agrees with this recommendation, and we will carefully review account reconciliations.
Computer Loan Accounts
During our testing of receivables, we noted credit balances in the employee computer loan receivable account across several funds. Upon discussion, it was determined the loan repayments were recorded in individual funds and not transferred to the General Fund where the original receivable balance is recorded. We recommend the City ensure the repayments collected on the employee computer loans are transferred to the General fund at least quarterly.
Management’s Response:
The City agrees with the recommendation and this one-time issue has been resolved.
Inventory
Upon review of airport inventory, we noted the price used to calculate the inventory value did not include taxes, and erroneously multiplied the cost times the quantity reduction rather than the quantity on hand to calculate the ending balance. We recommend the City ensure the correct cost and quantity are used in the calculation of total inventory.
Management’s Response:
The City agrees with this recommendation and will take steps to ensure calculation of inventory.
Accrued Benefits Accounts
During our review of accrued benefits accounts, we inquired and noted the City has been recording items incorrectly and has not properly reconciled these accounts. We recommend the City reconcile the accrued benefits accounts on a monthly basis and post adjustments in a timely manner.
Management’s Response:
The City agrees with this recommendation, and we will carefully review account reconciliations. 204
City of Lincoln
Status of Prior Year Findings
June 30, 2025
Pooled Cash
Upon the City’s transition to a pooled cash system, we noted that the claims on cash balances do not agree to the pooled cash balances. However, we noted the difference is not material. We recommend the City review how transactions are processed to reconcile the claims on cash balances to the pooled cash balances and prevent future errors.
Status: Implemented
Transfers
During our procedures over transfers, we noted the City recorded a transaction to transfer cash from one fund to another incorrectly using fund balance rather than transfers in and transfers out. We recommend the City only post adjustments directly to fund balance in accordance with GAAP.
Status: Implemented
205
March 16, 2026
To the City Council
City of Lincoln
606 6th Street
Lincoln, California 95648
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lincoln (the City) for the year ended June 30, 2025.
Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 20, 2025. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City adopted Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, in 2025. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
• Depreciation – based on the City’s capitalization policy • Allowance for uncollectible accounts – based on current and historical collections and write-offs • Allowance for notes receivable – based on management’s specific identification of loans and long-term deferrals and non-current payments
• Leases receivable and deferred inflows of resources – based on the present value of lease payments to be received
• Right-to-use lease assets and subscription-based information technology arrangements and related liabilities – based on the present value of payments to be made • Compensated absences (sick leave) – based on employment agreement, policy provisions, and historical usage
We evaluated the methods, assumptions, and data used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The material misstatements in Attachment A were detected as a result of audit procedures and were corrected by management.
U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI 206
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated March 16, 2026.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion & analysis; budgetary comparison schedules for the general fund and major special revenue funds; the schedule of proportionate share of the net pension liability; the schedule of contributions to the pension plan; the schedule of changes in the net other post-employment benefit (OPEB) liability and related ratios; and the schedule of contributions to the OPEB plan, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections of the annual comprehensive financial report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of City Council and management of the City of Lincoln and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
MUN CPAs, LLP
MUNCPAs LLP
207
Description
Assets /
Deferred
Outflows of
Resources
Liabilities /
Deferred
Inflows of
Resources Equity Revenue Expenses
To record prior period adjustment for
funds received from custodial funds $ - $ - $ 16,617,768 $ (16,617,768) $ - To correct pension trust contribution 3,695,412 - - 1,997,879 (1,697,533) To correct airport fuel inventory (6,296) - - - 6,296
To correct employee computer loan
balance 913 913 - - -
Total Income Statement Effect $ (14,619,889) $ (1,691,237) Balance Sheet Effect $ 3,690,029 $ 913 $ 16,617,768
Effect - Increase (Decrease)
Attachment A
CITY OF LINCOLN
SUMMARY OF AUDIT ADJUSTMENTS
June 30, 2025
208
SUBJECT: Approval of Meeting Minutes of March 16, 2026 Special City Council Meeting. (Hope Ithurburn)
SUBMITTED BY: City Clerk
DEPARTMENT: City Clerk's Office
DATE: March 24, 2026
Item Number 12.A
ATTACHMENTS:
1.DRAFT - MEETING MINUTES, 03.16.2026.docx
STAFF REPORT
209
MINUTES
CITY OF LINCOLN CITY COUNCIL,
PUBLIC FINANCE AUTHORITY
and REDEVELOPMENT SUCCESSOR AGENCY
Special Meeting – Closed Session
March 16, 2026
CLOSED SESSION MEETING – 2:00pm
1. CALL TO ORDER -The meeting was called to order at City Hall, 600 6th Street, Lincoln, CA in the Council Chambers by Mayor Pro Tem Eklund at 2:00 pm.
2. ROLL CALL Councilmembers present: Holly Andreatta
Whitney Eklund
John Reedy
Attending remote: Richard Pearl
Councilmembers absent: Ben Brown
Mayor Pearl reported he would be participating remotely under Government Code §54953.8.3(c) applying the Just Cause Provision due to a contagious illness that prevents a member from attending in person, noting that he would participate with both audio and video turned on throughout the meeting and that there were no other individuals present in the room.
3. PLEDGE OF ALLEGIANCE – led by Mayor Pro Tem Eklund.
4. REMOTE PARTICIPATION UNDER THE BROWN ACT (Gov. Code §54953.8) *This time is reserved for any Council Member to announce remote participation under the "Just Cause" provision of Gov. Code, §54953.8.
5. PUBLIC COMMENT ON CLOSED SESSION
There was no public comment.
6. CLOSED SESSION
Mayor Pro Tem Eklund announced the following agenda items after which Council recessed to Closed Session with Mayor Pearl rejoining the meeting via Zoom.
This portion of the meeting was conducted in person at City Hall, 600 6th Street, Lincoln, CA in the City Manager’s Conference Room.
Councilmember Ben Brown arrived at 2:28 pm.
6.A Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Gov. Code, § 54956.9(d): (3 cases)
6.B Conference with Legal Counsel – Existing Litigation (Gov. Code, § 54956.9) Name of Case:
(City of Lincoln v. The Gathering Inn, et al., Placer Superior Court Case No. SCV0053711) 210