Los Banos City Council
May 21, 2025

LOs Banos
At tlie Crossroads of California
www.losbanos.org
AGENDA

CITY COUNCIL MEETING

CITY HALL COUNCIL CHAMBERS
520 J Street
Los Banos, California
MAY 21, 2025 - 6:00 PM
Live stream on YouTube at:
https://www.youtube.com/@losbanos406
If you require special assistance or translation services to attend or participate in this meeting, please call the City Clerk's Office @ (209) 827-7000 at least 48 hours prior to the meeting.

The City of Los Banos complies with the Americans with Disabilities Act (ADA) of 1990. * * * * * * * ** * * * * * * *
Si requiere asistencia especial o asistencia de traducci6n para atender o participar en esta junta por favor /lame a la oficina de la secretaria de la ciudad al (209) 827-7000 a lo menos de 48 horas antes de la junta.

La Ciudad de Los Banos cumple con la ley de Estadounidenses con Discapacidades (ADA) de 1990.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the meeting and in the City Clerk's office located at City Hall, 520 J Street, Los Banos, California during normal business hours. In addition, such writings and documents may be posted on the City's website at www.losbanos.org.
* * * * * * * ** * * * * * * *
Cualquier escritura o /os documentos proporcionaron a una mayorfa de/ Ayuntamiento respecto a cualquier artfculo en este orden def dfa sera hecho disponible para la inspecci6n publica en la reuni6n y en la oficina de la Secretaria de la ciudad en City Hall, 520 J Street, Los Banos, California durante horas de oficina normales. Ademas, tales escrituras y los documentos pueden ser anunciados en el website de la ciudad en www.losbanos.org.

Please note: The Brown Act provides the public with an opportunity to make public comment at any public meeting. As an alternative for in-person comments, written public comment may be made by e-mail to [email protected] or delivered to the City Clerk at City Hall, 520 J Street. All comments received will be read by the City Clerk during Public Forum and added to the agenda packet on the City's website for public review. Agenda packets can be found on th~ City'~ website at the folloy.'ing link: https://losbanos.org/category/city-council/ Los Banos City Council Agenda - May 21, 2025 Page 1 of 4 1 1. CALL TO ORDER - May 21, 2025 6:00 PM

2. PLEDGE OF ALLEGIANCE.

3. ROLL CALL: (City Council Members)
__ [vacant] - District 1
Marcus Chavez - District 3
Michael Amabile - Mayor
Evan Sanders - District 2
Deborah Lewis - District 4

4. CONSIDERATION OF APPROVAL OF AGENDA.

Recommendation: Adopt the agenda as submitted.

5. PRESENTATIONS.

A. Proclamation Recognizing Public Works Week.

B. Proclamation Recognizing the Retirement of City of Los Banos Utilities Maintenance II Gregory Lever.

6. PUBLIC FORUM. (Members of the public may address the City Council Members on any item of public interest that is within the jurisdiction of the City Council; includes agenda and non-agenda items. No action will be taken on non-agenda items. Speakers are limited to a five (5) minute presentation. Detailed guidelines are posted on the Council Chamber informational table.)

7. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. (Items on the Consent Agenda are considered to be routine and will be voted on in one motion unless removed from the Consent Agenda by a City Council Member.) A. Check Register for #251448 - #251793 in the Amount of $2,519,504.23.

Recommendation: Approve the check register as submitted.

B. Minutes for the April 16, 2025 City Council Meeting .

Recommendation: Accept the minutes as submitted.

C. Minutes for the May 6, 2025 Adjourned City Council Meeting.

Recommendation: Accept the minutes as submitted.

D. Minutes for the May 7, 2025 City Council Meeting.

Recommendation: Accept the minutes as submitted.

Los Banos City Council Agenda - May 21, 2025 Page 2of4
2 pgs. 1-4
pgs. 5-6
pgs. 7-8
pgs. 9-12
pgs. 13-20
pgs. 21-22
pgs. 23-32
E. City Council Resolution No. 6930 - Amending the Fiscal Year 2024-2025 Budget by Increase Revenue and Expenditure for Retiree Health Infernal Service Fund Budget in the Amount of $323,418.

Recommendation: Adopt the resolution as submitted.

F. City Council Resolution No. 6931 - Approving an Easement Deed from the City of Los Banos to PG&E Dedicating an Easement Approximately 179 Quarter Feet of Land at the Southeast Corner of Parcel C in the Subdivision The Villages V, Phase 3 and Authorizing the Public Works Director to Execute the Associated Documents.

Recommendation: Adopt the resolution as submitted.

G. City Council Resolution No. 6932 - Accepting the Fire Department Mandated Inspection Report Pursuant to 13146.4 of the California Health and Safety Code.

Recommendation: Adopt the resolution as submitted.

H. City Council Resolution No. 6933 - Approving Memorandum of Understanding Between the City of Los Banos and the Grassland Water District Regarding Cooperative Efforts to Implement the Recharge Basin and Storm Water Capture Project.

Recommendation: Adopt the resolution as submitted.

8. PRESENTATION REGARDING THE LOCAL AGING AND DISABILITYFRIENDLY ACTION PLAN - By Mike King from Pear Street Consulting.

Recommendation: Informational item only, no action to be taken.

9. PUBLIC HEARING. (If you challenge the proposed action as described herein in court, you may be limited to raising only those issues you or someone else raised at the public hearing described herein or in written correspondence delivered to the City at, or prior to, the public hearing.)
A. Public Hearing - To Receive Information Regarding the Status of City Employee Job Vacancies to Comply with Assembly Bill 2561.

Recommendation: Receive staff report, open public hearing, receive public comment, and close the public hearing. Informational item only, no action to be taken.

10. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 6934- ACCEPTING THE 2023/2024 FISCAL YEAR AUDIT REPORTS CONSISTING OF

THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, THE GOVERNMENT AUDITING STANDARDS REPORT, AND THE SINGLE AUDIT REPORT.

Recommendation: Receive staff report and adopt the resolution as submitted.

Los Banos City Council Agenda - May 21, 2025 Page 3of4
3 pgs. 33-38
pgs. 39-56
pgs. 57-60
pgs. 61-72
pgs. 73-74
pgs. 75-78
pgs. 79-235

11. CANCELLATION OF THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR WEDNESDAY, JULY 2, 2025 DUE TO THE 4TH OF JULY HOLIDAY.

Recommendation: Cancel the meeting as stated.

12. CITY DEPARTMENT REPORTS.

Recommendation: Informational item only, no action to be taken.

13. CITY MANAGER REPORT.

Recommendation: Informational item only, no action to be taken.

14. CITY COUNCIL MEMBER REPORTS.

A. Deborah Lewis - District 4
B. [vacant]- District 1
C. Evan Sanders - District 2
D. Marcus Chavez - District 3
E. Michael Amabile - Mayor

15. CLOSED SESSION - Public Employee Release (CalPERS Industrial Disability Retirement) Pursuant to Government Code Section 54957.

16. ADJOURNMENT.

A. Adjourn to 5:00 p.m., Thursday, May 29, 2025 at the Los Banos Community Center, 645 7th Street, Los Banos, California to Hold a Joint Meeting with the Planning Commission to Discuss the Community Design Standards.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting.

Lucille
~IL. Mallonee, ~ City Clerk Dated this 16th day of May 2025 Los Banos City Council Agenda - May 21, 2025 Page 4of4
4 LOsBanos
At the Crossroads of California

PROCLAMATION RECOGNIZING

PUBLIC WORKS WEEK
WHEREAS, public works professionals focus on
infrastructure, facilities, and services that are of vital importance to sustainable and resilient communities, public health, high quality of life, and well-being of the people of the City of Los Banos; and
WHEREAS, these infrastructures, facilities, and services could not be provided -without the dedicated efforts of public works professionals, who are federally mandated first responders, and the engineers, managers and employees at all levels who are responsible for rebuilding, improving, and protecting our Nation I
s transportation, water supply, water treatment and solid waste systems, public buildings, airports, parks and other structures and facilities essential for our citizens; and
WHEREAS, it is in the public interest for the citizens, civic leaders, and children in the City of Los Banos to gain knowledge and maintain ongoing interest and understanding of the importance of public works, first responders and public works programs in their respective communities; and WHEREAS, the year 2025 marks the 65th annual National
Public Works Week sponsored by the American Public Works Association.

NOW, THEREFORE, BE IT PROCLAIMED that the Mayor
and City Council Members of the City of Los Banos do hereby recognize week of May 18-24, 2025 as National Public Works Week in the City of Los Banos and urge all citizens to join in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees.

In witness whereof, I have hereunto set my hand and caused to be affixed the seal of the City of Los Banos, this 21st day of May 2025.

APPROVED: ATTEST:

Michael S. Amabile Lucille L. Mallonee
5 ITEM 5A

THIS PAGE IS INTENTIONALLY LEFT BLANK
6 LOs Banos
At the Crossroads of California
PllOCLAMATION R.ECOGNIZING THE
R.ETIREMENT OF GREGOR YLEVER
WHEREAS, Gregory Lever became a member of the Los Banos Public Works Department on October 27, 2003; and
WHEREAS, Gregory Lever was hired as a full-time Utilities Maintenance I and was promoted through the ranks on July 6, 2005 to Utilities Maintenance II; and
WHEREAS, Gregory Lever has
contributed tremendously throughout his career to the
community of Los Banos through his knowledge and commitment to his job; and
WHEREAS, Gregory Lever will retire from the City
of Los Banos as a Utilities Maintenance II on May 17, 2025 with over 21 years of service as a full-time City employee.

NOW, THEREFORE, BE IT PROCLAIMED that the
Mayor and City Council Members of the City of Los Banos do hereby commend Gregory Lever on his dedication and loyalty to the City of Los Banos and congratulate him on his retirement.

BE IT FURTHER PROCLAIMED that this proclamation was
presented to Gregory Lever at the City Council Meeting held on May 21, 2025
In witness whereof; I have hereunto set my hand and caused to be affixed the seal of the City of Los Banos, this 21st day of May 2025.

APPROVED: ATTEST:

Michael S. Amabile Lucille L. Mallonee
ITEM 5B
7 THIS PAGE IS INTENTIONALLY LEFT BLANK
8 CK# 251448 - # 251793 05/21/2025 $2,519,504.23
Los Banos \1 lhf" c,u,'\mad~ of l.t.ili{ltrn,~
Check Number Payment Date Vendor Module Payment Type Payment Amount 251450 05/02/2025 Ronny's Inc. Accounts Payable Check 46,956.78 251452 05/02/2025 CDTFA California Dept. ofTax & Fee Accounts Payable Check 1,004.00 251453 05/02/2025 City of Los Banos Escrow Account Accounts Payable Check 3,178.96 251454 05/02/2025 Imagine Way More LLC Accounts Payable Check 7,500.00 251455 05/02/2025 Brent Kuhn Accounts Payable Check 14,520.00 251456 05/02/2025 Laboratory Corporation of America Holdings Accounts Payable Check 397.95 251457 05/02/2025 Liebert Cassidy Whitmore Accounts Payable Check 45.00 251458 05/02/2025 Christy McCammond Accounts Payable Check 25.00 251459 05/02/2025 Merced County AAA Accounts Payable Check 95.00 251460 05/02/2025 Merced County Association of Government Accounts Payable Check 75.00 251461 05/02/2025 Paul Sevier Accounts Payable Check 1,000.00 251462 05/02/2025 Ronny's Inc. Accounts Payable Check 65,306.05 251465 05/02/2025 Law Offices of William A Vaughn Accounts Payable Check 15,840.85 251467 05/02/2025 Acorn Engineering Co Accounts Payable Check 1,089.59 251468 05/02/2025 Amsoil Inc. Accounts Payable Check 1,680.87 251469 05/02/2025 Ascent Aviation Group, Inc. Accounts Payable Check 22,333.49 251470 05/02/2025 AT&T Mobility National Accounts, LLC Accounts Payable Check 200.00 251471 05/02/2025 B Safe Playground Inspection Services, Inc. Accounts Payable Check 2,950.00 251472 05/02/2025 Dorothy June Baker Accounts Payable Check 80.45 251473 05/02/2025 Bear State Electric, Inc. Accounts Payable Check 500.00 251474 05/02/2025 Beam Insurance Administrators LLC Accounts Payable Check 19,023.33 251475 05/02/2025 Blueglobes LLC Accounts Payable Check 1,170.23 251476 05/02/2025 Boot Barn Accounts Payable Check 361.28 251477 05/02/2025 California Association of Mutual Water Companies Accounts Payable Check 20,000.00 251478 05/02/2025 Callander Associates Landscape Architecture, Inc. Accounts Payable Check 5,790.23 251479 05/02/2025 Cal Traffic Accounts Payable Check 3,658.20 251480 05/02/2025 CCID Accounts Payable Check 28,251.94 251481 05/02/2025 Central Sanitary Supply, LLC Accounts Payable Check 225.12 251482 05/02/2025 Cook's Communications Corp. Accounts Payable Check 1,082.13 251483 05/02/2025 David Cummins Accounts Payable Check 125.00 251484 05/02/2025 Custom Locksmith & Alarm Inc. Accounts Payable Check 506.10 251485 05/02/2025 Dispensing Technology Corporation Accounts Payable Check 1,853.26 251486 05/02/2025 Dos Palos Publishing Company Accounts Payable Check 220.00 251487 05/02/2025 Dept of Conservation Div of Ad min Services Accounts Payable Check 3,800.49 251488 05/02/2025 Edges Electrical Group, LLC Accounts Payable Check 6,283.92 251489 05/02/2025 Federal Express Corporation Accounts Payable Check 20.25 251490 05/02/2025 Holt of California Accounts Payable Check 1,891.88 251491 05/02/2025 J.J.R. Enterprises Inc. Accounts Payable Check 2,338.72 251492 05/02/2025 TimJ Law Accounts Payable Check 800.00 251493 05/02/2025 Los Banos Veterinary Services Accounts Payable Check 4,925.10 251494 05/02/2025 Tires to you Inc Accounts Payable Check 175.00 251495 05/02/2025 Marfab Inc Accounts Payable Check 239.81 251496 05/02/2025 McNamara Sports Inc Accounts Payable Check 7,515.97 251497 05/02/2025 Susan Mendoza Accounts Payable Check 1,980.00 251498 05/02/2025 Merced Chevrolet Inc. Accounts Payable Check 1,883.98 251499 05/02/2025 Merced Truck & Trailer Inc Accounts Payable Check 142.46 251500 05/02/2025 MJ'S Mobile Fleet LLC Accounts Payable Check 702.15 251501 05/02/2025 Modesto Janitorial Supply Center, Inc. Accounts Payable Check 436.28 251502 05/02/2025 O'Reilly Auto Parts Accounts Payable Check 2,431.39 251503 05/02/2025 PG&E Company Accounts Payable Check 8,905.40 251504 05/02/2025 Park Associates Inc. Accounts Payable Check 5,188.85 251505 05/02/2025 Provost and Pritchard Engineering, Inc. Accounts Payable Check 37,031.78 ITEM 7A
9 251506 05/02/2025 Protech Security & Electronics, Inc. Accounts Payable Check 60.00 251507 05/02/2025 Reliance Standard Life Insurance Company Accounts Payable Check 6,689.45 251509 05/02/2025 Ronny's Inc. Accounts Payable Check 4,057.88 251510 05/02/2025 Moises Rocha Accounts Payable Check 350 .00
251511 05/02/2025 Save Mart Supermarkets Accounts Payable Check 82.03 251512 05/02/2025 Sherwin Williams Co Accounts Payable Check 744.93 251513 05/02/2025 SU Holdings, Inc Accounts Payable Check 266.58 251514 05/02/2025 Sorensens True Value Accounts Payable Check 83.67 251515 05/02/2025 Stantec Consulting Services, Inc. Accounts Payable Check 2,405.50 251516 05/02/2025 Super Seer Corporation Accounts Payable Check 726.80 251517 05/02/2025 Superior Pool Products, LLC Accounts Payable Check 5,837 .37
251518 05/02/2025 Manuel Solano Accounts Payable Check 100 .00
251519 05/02/2025 T-Mobile USA Inc. Accounts Payable Check 165 .00
251520 05/02/2025 Technicon Engineering Services, Inc. Accounts Payable Check 4,580.00 251521 05/02/2025 Terryberry Company LLC Accounts Payable Check 364.09 251522 05/02/2025 The Don Chapin Co., Inc. Accounts Payable Check 1,222.26 251523 05/02/2025 The Heil co Accounts Payable Check 238.00 251524 05/02/2025 Turlock Sheet Metal & Welding Inc. Accounts Payable Check 1,511.44 251525 05/02/2025 Tualau Tauheluhelu Accounts Payable Check 350.00 251526 05/02/2025 United Site Services, Inc. Accounts Payable Check 2,280.42
251527 05/02/2025 VCA Animal Hospitals, Inc. Accounts Payable Check 350.08 251528 05/02/2025 Vestis Group, Inc. Accounts Payable Check 4,328.49 251532 05/02/2025 Vestis Accounts Payable Check 7,624
.13
251537 05/02/2025 Williams Scotsman, Inc. Accounts Payable Check 7,954.42 251538 05/02/2025 Willdan Engineering Accounts Payable Check 37,715.00 251678 05/06/2025 Aflac-Customer Service Accounts Payable Check 186.93 251679 05/06/2025 AFSCME District Council 57 Accounts Payable Check 2,426.91 251680 05/06/2025 Empower Annuity Ins. Co of America Accounts Payable Check 1,612.62 251681 05/06/2025 Empower Annuity Ins. Co of America Accounts Payable Check 2,917.00 251682 05/06/2025 Franchise Tax Board Accounts Payable Check 1,340.24 251683 05/06/2025 Los Banos Police Assn Accounts Payable Check 980.00 251684 05/06/2025 Los Banos Police Assn. Accounts Payable Check 280.00 251685 05/06/2025 Merced County Sheriff Accounts Payable Check 200 .00
251686 05/06/2025 MissionSquare Accounts Payable Check 620.89 251687 05/06/2025 MissionSquare Accounts Payable Check 12,600.00 251688 05/06/2025 Nationwide Retirement Solutions Accounts Payable Check 3,956.49 251689 05/06/2025 Professional Fire Fighter of Los Banos Local 4703 Accounts Payable Check 735.16 251690 05/06/2025 State Disbursement Unit Accounts Payable Check 1,183 .50
251691 05/09/2025 Bryant Whitten, LLP Accounts Payable Check 135,000.00 251692 05/09/2025 Andre Castillo Accounts Payable Check 40.00 251693 05/09/2025 Gabriel Cervantes Accounts Payable Check 40 .00
251694 05/09/2025 Marcus Chavez Accounts Payable Check 89 .00
251695 05/09/2025 Jubenal Nunez Jimenez Accounts Payable Check 85.00 251696 05/09/2025 Deborah Lewis Accounts Payable Check 89 .00
251697 05/09/2025 Liebert Cassidy Whitmore Accounts Payable Check 44,415 .00
251698 05/09/2025 Merced MRI Medical Group Accounts Payable Check 65.00 251699 05/09/2025 Gerald "Obie" O'Brien Accounts Payable Check 77.14 251700 05/09/2025 Juan Ramirez Accounts Payable Check 16 .17
251701 05/09/2025 Ronny's Inc. Accounts Payable Check 13,146.42 251702 05/09/2025 Law Offices of William A Vaughn Accounts Payable Check 14,700.00 251703 05/09/2025 Agee Construction Corporation Accounts Payable Check 755,341.47 251704 05/09/2025 Animal Damage Management, Inc. Accounts Payable Check 3,270.00 251706 05/09/2025 Anthony Gomes Accounts Payable Check 2,582.65 251707 05/09/2025 AT&T Mobility Accounts Payable Check 5,328.30 251708 05/09/2025 AT&T Accounts Payable Check 31
.57
251709 05/09/2025 Barton Overhead Door Inc Accounts Payable Check 1,400.00 251710 05/09/2025 Beacon Athletics LLC Accounts Payable Check 893.94 251711 05/09/2025 Bound Tree medical LLC Accounts Payable Check 2,765.55 251712 05/09/2025 Brinks Inc. Accounts Payable Check 1,069.65 251713 05/09/2025 BSK Associates Accounts Payable Check 449.47 251714 05/09/2025 BWR Tools LLC Accounts Payable Check 3,702.94 10 251715 05/09/2025 California Landscape Supply, Inc. Accounts Payable Check 808.14 251716 05/09/2025 Cal Traffic Accounts Payable Check 1,727.30 251717 05/09/2025 Cellebrite Inc. Accounts Payable Check 27,737.97 251718 05/09/2025 Cintas Corporation No.2 Accounts Payable Check 414.11 251719 05/09/2025 Central Sanitary Supply, LLC Accounts Payable Check 1,244.18 251720 05/09/2025 Clark Pest Control Inc Accounts Payable Check 119.00 251721 05/09/2025 Comcast Accounts Payable Check 374.14 251722 05/09/2025 Copy Shipping Solutions Accounts Payable Check 910.20 251723 05/09/2025 CSG Consultants Inc. Accounts Payable Check 140,634.16 251724 05/09/2025 Custom Locksmith & Alarm Inc. Accounts Payable Check 815.00 251725 05/09/2025 Dos Palos Publishing Company Accounts Payable Check 280.00 251726 05/09/2025 Dept of Transportation Accounts Payable Check 5,921.36 251727 05/09/2025 Electric Drives Inc Accounts Payable Check 4,840.07 251728 05/09/2025 Equipment Simulations LLC Accounts Payable Check 1,775.00 251729 05/09/2025 F S Rod Inc Accounts Payable Check 2,560.00 251730 05/09/2025 Federal Express Corporation Accounts Payable Check 13.63 251731 05/09/2025 Fehr & Peers Accounts Payable Check 23,386.25 251732 05/09/2025 Fresno City College Accounts Payable Check 135.00 251733 05/09/2025 Garton Tractor Inc Accounts Payable Check 49.00 251734 05/09/2025 Governmentjobs.com, Inc. Accounts Payable Check 22,189.60 251735 05/09/2025 Gouveia Engineering Inc. Accounts Payable Check 9,799.13 251736 05/09/2025 Granite Construction Inc Accounts Payable Check 4,371.30 251737 05/09/2025 Great West Equipment, Inc Accounts Payable Check 466.77 251738 05/09/2025 Hach Company Accounts Payable Check 1,229.60 251739 05/09/2025 Halcyon Creek Inc. Accounts Payable Check 3,583.66 251740 05/09/2025 Kimball Midwest Accounts Payable Check 103.64 251741 05/09/2025 Mark Thomas & Company. Inc. Accounts Payable Check 7,483.75 251742 05/09/2025 Tires to you Inc Accounts Payable Check 6,902.70 251743 05/09/2025 Marfab Inc Accounts Payable Check 83.52 251744 05/09/2025 Merced Chevrolet Inc. Accounts Payable Check 1,570.72 251745 05/09/2025 Merced Truck & Trailer Inc Accounts Payable Check 234.60 251746 05/09/2025 Mid-Valley Disposal LLC Accounts Payable Check 604,869.30 251747 05/09/2025 Mid Valley Protection LLC Accounts Payable Check 9,972.08 251748 05/09/2025 Motorola Solutions, Inc. Accounts Payable Check 4,971.66 251749 05/09/2025 NDN International LLC Accounts Payable Check 326.84 251750 05/09/2025 O'Dell Engineering Accounts Payable Check 27,822.50 251751 05/09/2025 OSE Accounts Payable Check 472.93
251752 05/09/2025 O'Reilly Auto Parts Accounts Payable Check 966.29 251753 05/09/2025 PG&E Company Accounts Payable Check 6,237.82 251754 05/09/2025 Pace Supply Corp. Accounts Payable Check 6,325.67 251755 05/09/2025 Pacific Landscape Supply, Inc. Accounts Payable Check 13,273.60 251756 05/09/2025 PSG Fencing Corp. Accounts Payable Check 7,380.00 251757 05/09/2025 Phoenix Group Information Systems Accounts Payable Check 2,033.93 251758 05/09/2025 Enrique Pineda Accounts Payable Check 1,200.00 251759 05/09/2025 Powergen Inc. Accounts Payable Check 2,464.63 251760 05/09/2025 Precision Civil Engineering, Inc Accounts Payable Check 440.00 251761 05/09/2025 Provost and Pritchard Engineering, Inc. Accounts Payable Check 29,886.06 251762 05/09/2025 Purchase Power Inc Accounts Payable Check 3,044.99 251763 05/09/2025 Protech Security & Electronics, Inc. Accounts Payable Check 135.00 251764 05/09/2025 Quad Knopf, Inc. Accounts Payable Check 297.00 251765 05/09/2025 Razzari Dodge Chrysler Jeep Accounts Payable Check 688.24 251766 05/09/2025 Redvector.Com, LLC Accounts Payable Check 12,596.00 251767 05/09/2025 Ronny's Inc. Accounts Payable Check 945.81 251768 05/09/2025 Sherwin Williams Co Accounts Payable Check 334.30 251769 05/09/2025 SHI International Corp Accounts Payable Check 61.89 251770 05/09/2025 Sorensens True Value Accounts Payable Check 1,833.10 251772 05/09/2025 T-Mobile USA Inc. Accounts Payable Check 3,259.42 251773 05/09/2025 Technicon Engineering Services, Inc. Accounts Payable Check 6,471.00 251774 05/09/2025 CalMatCo. Accounts Payable Check 520.93 251775 05/09/2025 Tyler Technologies, Inc. Accounts Payable Check 290.00 251776 05/09/2025 Uline, Inc. Accounts Payable Check 588.60 11 251777 05/09/2025 VCA Animal Hospitals, Inc.
251778 05/09/2025 Vestis Group, Inc.
251779 05/09/2025 Vestis
251780 05/09/2025 Verizon Wireless
251781 05/09/2025 Westside Water Conditioning
251782 05/09/2025 Williams Scotsman, Inc.
251783 05/09/2025 Windecker Inc
Break in check sequence due to the following:

Check #251448 - #251449 (Payroll)
Check #251451 (Manual Void)
Check #251463 - #251464 (Manual Void)
Check #251466 (Manual Void)
Check #251508 (Manual Void)
Check #251529 - #251531 (Manual Void)
Check #251533 - #251536 (Manual Void)
Check #251539 - #251677 (Utility Billing)
Check #251705 (Manual Void)
Check #251771 (Manual Void)
Check #251784 - #251793 (Utility Billing)
Accounts Payable Check 1,363.92
Accounts Payable Check 1,317.03
Accounts Payable Check 684.90
Accounts Payable Check 460.13
Accounts Payable Check 38.50
Accounts Payable Check 4,686.94
Accounts Payable Check 32,014.93
Payment Type
Regular Checks 181 2,519,504.23
Manual Voids 14
Voided Checks 0
2,519,504.23
12 CITY OF LOS BANOS

CITY COUNCIL MEETING MINUTES
APRIL 16, 2025
ACTION MINUTES - These minutes are prepared to depict action taken for agenda items presented to the City Council. For detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record.

CALL TO ORDER: Mayor Amabile called the City Council Meeting to order at the hour of 6:01 p.m.

PLEDGE OF ALLEGIANCE: Police Chief Reyna led the pledge of allegiance.

ROLL CALL - MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Evan Sanders - District 2, Marcus Chavez - District 3, Deborah Lewis - District 4, Mayor Michael Amabile, District 1 - vacant; ABSENT: None
STAFF MEMBERS PRESENT: City Attorney Vaughn, Interim City Manager Brizzee, City Clerk/Human Resources Director Mallonee, City Treasurer Lawrence, Police Chief Reyna, Community & Economic Development Director Souza Elms, Parks & Recreation Director Heim, Fire Chief Tualla, Public Works Director/City Engineer Bergson, Finance Director Moreno
CONSIDERATION OF APPROVAL OF AGENDA: Motion by Lewis, seconded by Chavez to approve the agenda as submitted with the removal of Items 8 and 9 as stated above. The motion carried by the affirmative action of all Council Members present.

PRESENTATIONS - PROCLAMATION RECOGNIZING POPPY DAY; 2025 SAN JOAQUIN VALLEY BLUEPRINT AWARD FOR 7TH AND J STREET PARKING LOT REHABILITATION PROJECT. Mayor Amabile presented the proclamation to Sally Hughes and Barbara Cardenas who were present to accept who were representing American Legion Auxiliary Unit #166.

Public Works Director/City Engineer Bergson spoke regarding the 2025 San Joaquin Valley Blueprint Award for 7th and J Street Parking Lot Rehabilitation Project and presented the Mayor with the plaque and certificate from Senator Caballero.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL

MEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Amabile invited the public to come forward to speak. KELSEY DAGUERRE, Accounting Clerk and newly elected President of the Public Works/Miscellaneous Employees Union, expressed 13 ITEM 7B
appreciation for the City's partnership following the successful ratification of a four-year contract. She thanked City leadership and the negotiations team for their hard work and emphasized the renewed motivation among union members to serve the City effectively and efficiently. JENNIFER FOSTER, Executive Director of Kingsview, Spoke about the valuable services provided, acknowledging those in attendance and highlighting the Elks Lodge's recent grant to upgrade the kitchen. This donation is one of many generous contributions from the community. The organization has been proudly serving the local community for the past 37 years.; KATHY BALLARD spoke about the battery storage area and shared that she has received information regarding the project. She is working on organizing a community meeting and is requesting the City's assistance in helping to coordinate and put the meeting together. MERCED COUNTY SUPERVISOR SILVEIRA, reminded everyone about the upcoming May Day Spring Fair and mentioned that discounted tickets are available for purchase before the event. While things aren't moving as quickly as hoped, he has reached out to the battery facility to organize a community meeting to address questions. That process is still underway. UNNAMED PERSON, expressed concerns about the battery facility project, highlighting the environmental impact of sourcing materials for solar plants and how the community bears the risks while most power benefits go to the Bay Area. He referenced the recent fire at a battery facility in Monterey Bay as a cautionary example. He also spoke about the city's homeless encampments, emphasizing the need for a clear plan to address the issue. The city was hoping for a presentation from Ms. McCammond detailing the current efforts. He encouraged everyone to visit the encampments to understand the situation firsthand, noting that the problem is spreading and requires both short- and long-term solutions.

BLANCHE JORGE, She lives in the downtown area and reminded everyone that summer and the 4th of July are approaching quickly. She asked that the community be reminded about the fireworks rules, especially since the holiday often leads to dogs getting lost, which significantly impacts the animal shelter. City Clerk Mallonee stated that no comments were received to be read into the record. No one else came forward to speak and the public forum was closed.

CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Chavez, seconded by Sanders to approve the consent agenda as follows: Check Register for #250818 - #250994 in the Amount of $1,690,916.59; Third Quarter Investment Report for Fiscal Year 2024/2025; City Council Meeting Minutes for March 19, 2025; City Council Meeting Minutes for April 2, 2025; City Council Resolution No. 6915-Authorizing the City Manager to Execute a Contract to Approve of a 10-Year Purchase Agreement with Axon Enterprise Inc. for the Purchase of Sixty (60) Body Worn Cameras, Data Storage, Taser Devices and a Service Plan for Police Department Use in the Amount of $242,373.67 Each Year; City Council Resolution No. 6916 - Approving a Tentative Agreement (TA)/Memorandum of Understanding (MOU) By and Between the City of Los Banos and the Los Banos Public Employees' Union (LBPEU) for the Time Period July 1 , 2024 - June 30, 2028; City Council Resolution No. 6917 - Amending Division 4, Salary Schedule - Employee Classifications Relating to Changes to Section A - Administration, Section B - Finance, Section C - Community & Economic Development, Section D - Public Works, Section E - Parks & Recreation, Section F - Fire & Building, Section G - Police as it Pertains to the Approval of the TA/MOU with the LBPEU; City Council Resolution No. 14 6918 -Authorizing the City Manager to Execute a Professional Services Agreement with Provost & Pritchard Consulting Group for Pre-Design Engineering Services Regarding Hexavalent Chromium Mitigation Project and Adopting a Budget Amendment for the Fiscal Year 2024-2025 as it Pertains to Expenditures in the Amount of $353,000. The motion carried by the affirmative action of all Council Members present.

CAL TRANS PRESENTATION. Interim City Manager Brizzee presented the staff report and then introduced Anand Kapoor with CalTrans who spoke in more detail to what CalTrans has planned for the highways in Los Banos and also spoke regarding the roundabouts being proposed, the safety benefits, features, different types, what is being planned for Volta Road and Willmott Avenue, which included a PowerPoint presentation.

Council Member Lewis stated that she would like to see the video of the Hollister roundabout. Mayor Amabile asked if you can expand roundabouts in the future after you've installed one, for which Mr. Kapoor stated you can but you will need more right of way and it will need a redesign and delay the project. Ms. Lewis stated that when she used the Hollister roundabout, she found the cars going really fast and had a hard time figuring out which lane to take, it was really dark so it was hard to see, how important signage and lighting is really important, concerns with the roundabout being planned near Willmott Avenue and concerns with pedestrians crossing and really questions if it should be a signal light for which Mr. Kapoor responded that roundabouts slow down traffic to make it safer for vehicles, pedestrians and bikes. Ms. Lewis asked about accidents and if there are statistics related to roundabouts, which they will check to see. Council Member Chavez stated that roundabouts give pedestrians a better chance of surviving if they are in an accident as the traffic is much slower. Ms. Lewis speaking to the repaving of Highway 152 and improvements on West I Street, inquired as to what that will be for which it was explained that there was a proposal to add a left turn lane and that has been removed because of challenges with the right of way and construction costs. Mr. Amabile speaking to the passage way on the north side of Highway 152 going to the college, can we work together to get a path to the north side to Merced College for which they responded that they will need to figure out the co-op, needs headquarters approval and needs final authorization. Ms. Lewis speaking to Highway 152 and the bike lanes, how the speed is faster than 35 mph and wondered how safe is it for bikes to be on the highway for which he responded that he understands that it is going to be a standard two lane with a bike lane with standard turn lanes.

No action taken, informational item only.

PRESENTATION REGARDING AUGUST 26. 2025 SPECIAL ELECTION FOR COUNCIL MEMBER VACANCY IN DISTRICT 1. City Clerk Mallonee presented the staff report which included a brief overview of the upcoming election and the services that Merced County Elections is offering.

No action taken, informational item only.
15 PUBLIC HEARING - TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF

THE ANNUAL ADJUSTMENT TO THE LOS BANOS DEVELOPMENT IMPACT FEE

SCHEDULE BASED ON THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX; CITY COUNCIL RESOLUTION NO. 6919-APPROVING AN INCREASE

IN DEVELOPMENT IMPACT FEES TO REFLECT INCREASES IN THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX FOR 2025. Community & Economic Development Director Souza Elms presented the staff report, which included a PowerPoint presentation.

Mayor Amabile opened the public hearing. BLANCHE JORGE, I was looking ahead and trying to understand how the city's growth, particularly in residential development, is impacting departments like the animal shelter. It would be helpful if we could begin tracking the costs the City is incurring as development expands, especially in relation to the shelter. If we could recover some of those costs, it would help us retain funds that we're currently losing. Operating the animal shelter effectively requires significant investment, and it functions much like a business-it takes a lot of money to do it right.

I'd like to explore whether there's a way to incorporate impact fees from new developments to help support and fund the animal shelter moving forward. No one else came forward to speak and the public hearing was closed.

Council Member Lewis speaking to Exhibit A and the various categories listed, under age restricted, what does that mean for which Ms. Souza Elms explained. Ms. Lewis inquired as to the different types listed for police and fire, the age restricted facilities and why are the rest of the categories not paying into the Parks & Recreation programs for which Ms.

Souza Elms explained.

Motion by Chavez, seconded by Sanders to adopt City Council Resolution No. 6919 - Approving an Increase in Development Impact Fees to Reflect Increases in the Engineering News Record Construction Cost Index for 2025. The motion carried by the affirmative action of all Council Members present.

PUBLIC HEARING - TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF CONDITIONAL USE PERMIT #2025-01 AND A CATEGORICAL EXEMPTION FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15301, EXISTING FACILITIES, TO ALLOW THE USE OF A TYPE 41 ALCOHOL

LICENSE FOR THE ON-SALE OF BEER AND WINE FOR A BONAFIDE EATING PLACE FOR PLA YA SOL WAFFLE CAFE, LOCATED AT 1450 MERCEY SPRINGS ROAD, SUITE 102, APN 083-130-041 ; CITY COUNCIL RESOLUTION NO. 6920 - APPROVING CONDITIONAL USE PERMIT #2025-01 TO ALLOW FOR THE ON-SALE OF BEER AND WINE (TYPE 41 ABC LICENSE) AT PLAYA SOL WAFFLE CAFE LOCATED AT 1450 MERCEY SPRINGS ROAD, SUITE 102. Community & Economic Development Director Souza Elms presented the staff report, which included a PowerPoint presentation.

Mayor Amabile opened the public hearing. LUIS, owner of the restaurant, spoke to what they have planned with their restaurant, offering mimosas with their waffles, breakfast and 16 lunch, date to be opened is yet to be determined. No one else came forward to speak and the public hearing was closed.

Mayor Amabile stated that he's done many of these and he's never had to exempt CEQA and inquired as to why, for which Ms. Souza Elms explained why a CEQA exemption relevant here. Council Member Chavez noted that the security plan state that it will have 6 cameras is that something they have to do, for which Ms. Souza Elms explained it is a conditional of approval.

Motion by Sanders, seconded by Chavez to adopt City Council Resolution No. 6920 - Approving Conditional Use Permit #2025-01 to Allow for the On-Sale of Beer and Wine (Type 41 ABC License) at Playa Sol Waffle Cafe Located at 1450 Mercey Springs Road, Suite 102. The motion carried by the affirmative action of all Council Members present.

PERMANENT LOCAL HOUSING ALLOCATION - BRIDGE HOUSE IN LOS BANOS:

CITY COUNCIL RESOLUTION NO. 6921 - APPROVING AN AMENDMENT AND

RESTATEMENT OF PROFESSIONAL SERVICES AGREEMENT FOR EMERGENCY SHELTER AND CASE MANAGEMENT SERVICES [MISSION MERCED
INCORPORATED]. Community & Economic Development Director Souza Elms presented the staff report.

Council Member Evans inquired as to if this is to increase or just continue for which Ms.

Souza Elms responded to just continue. Mr. Evans inquired as to if this is in the budget or plans to increase for which Ms. Souza Elms responded that in accordance with the allocation no, if new funding sources become available, we will go after it.

Motion by Lewis, seconded by Sanders to adopt City Council Resolution No. 6921 - Approving an Amendment and Restatement of Professional Services Agreement for Emergency Shelter and Case Management Services [Mission Merced Incorporated]. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 6922 - ACCEPTING GRANT DEED FOR 9.52+ ACRES LOCATED AT SOUTHPOINTE AT

REGENCY PARK FOR A FUTURE PARK AND STORM BASSINE FOR PUBLIC USE

AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE ALL REQUIRED DOCUMENTS FOR THIS DEDICATION ACCEPTANCE. Public Works Director/City Engineer Bergson presented the staff report, then turned it over to Parks & Recreation Director Heim who spoke in more detail to the plans for the future park, which included a PowerPoint presentation.

Council Member Sanders made note that all the parks in this area are lacking walking paths and a walking path at this park would be very nice, for which Mr. Heim spoke to the plans for the park and will consider that when planning the park out. Mayor Amabile inquired as to wasn't there a plan for a path on the canal there near this park for which Mr. Heim responded yes there has been talks and there is potential for that. Mr. Amabile stated that we really need to start looking in the future to get away from the giant basic 17 parks in the future, as he does not like them and feels more pocket parks are better for the citizens, would like to see future designs include smaller parks throughout developments and communities. Council Member Lewis stated that she has concerns with the canal, the liability it has with the City, and something to consider.

Motion by Sanders, seconded by Chavez to adopt City Council Resolution No. 6922 - Accepting Grand Deed for 9.52+ Acres Located at Southpointe at Regency Park for a Future Parks and Storm Basin for Public Use and Authorizing the Interim City Manager to Execute All Required Documents for this Dedication Acceptance. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF SELECTION OF AN EXECUTIVE SEARCH FIRM TO ASSIST THE CITY COUNCIL IN THE RECRUITMENT OF A NEW CITY MANAGER (Continued from the March 19, 2025 Meeting). Interim City Manager Brizzee presented the staff report.

Council Member Sanders stated that he reviewed the proposals and his top firms were:

Ralph Andersen & Associates, WBCP and Koff & Associates. Mayor Amabile stated that he too reviewed the proposals and his top firms were: Ralph Andersen & Associates, Baker Tilly and WBCP. Council Member Lewis stated that after reviewing the proposals Ralph Andersen & Associates what her preferred firm. Council Member Chavez stated that his top firms were: Ralph Andersen & Associates, Baker Tilly and WBCP.

Motion by Lewis, seconded by Chavez to select Ralph Andersen & Associates to provide recruitment services for the City's next City Manager. The motion carried by the affirmative action of all Council Members present.

ADVISEMENT OF PUBLIC NOTICES. (One Report). Community & Economic Development Director Souza Elms reported that there will be a public hearing at the Planning Commission Meeting on April 23, 2025 to consider a Categorical Exemption from the CEQA pursuant to Section 15332 (In-fill Development Projects), an Amendment to Site Plan Review #2023-01, and final Development Plan #2023-01 for a reduction of units totaling 16 multi-family units and an accessory dwelling unit for Seventh St.

Apartments. The project consists of four multi-family residential structures totaling 16 multi-family units and an accessory dwelling unit, located southwest quadrant of Seventh Street and Willmott Avenue intersection, APN 082-420-047.

CITY MANAGER REPORT. Interim City Manager Brizzee shared that all of the staff has been working hard behind the scenes, and he truly appreciates their efforts. He noted that the City is currently addressing the Chromium-6 water standard. Regarding the One Tree Project, he acknowledged the great work by Ms. Souza Elms and her team. The closure documents and loan agreements have been signed, and the project is right on track. The next step is moving forward with the Planning Commission. The goal is to have the project open within 24 months. He also provided an update on the animal shelter, with a third yard for the animals has been added to the plans. The City is currently waiting on PG&E for the next steps. He mentioned that staff is aware of the difficulty in viewing the TVs in the council chambers and is working on replacing them with larger screens. 18 CITY COUNCIL MEMBER REPORTS:

EVAN SANDERS - DISTRICT 2: Thank you to the staff for getting the agenda out and for answering all of our questions. We know there's a lot of work that happens behind the scenes, and it's truly appreciated. I encourage everyone to follow the city on lnstagram and Facebook to stay up to date on what's happening, i.e. community meetings, events, grand openings of new businesses, and more. I'm happy to be here and proud that we're getting things done every week, the way it should be.

MARCUS CHAVEZ - DISTRICT 3: Thank you to our staff for everything you do, your hard work is truly appreciated. We need to make sure we follow up with Supervisor Scott Silveira regarding the battery storage meeting and ensure that moves forward. I also spent some time visiting with mobile food vendors to better understand the challenges they're facing. Some of the concerns shared included a need for shade for customers, availability of tables and chairs, and issues related to code enforcement. I'd like to request that the Mobile Vendor Ordinance be added to the next agenda for discussion.

DEBORAH LEWIS - DISTRICT 4: Stated that all of our employees are hardworking, thanking them for everything you do. We recently celebrated grand openings with new businesses like El Pollo Loco. The State of the College address at the Los Banos campus honored the Larry Anderson family and included a presentation on the future of the campus. There was particular excitement about the medical program aspect. On Saturday, we held our 4th Annual Egg Hunt at Oliveira Park. Gregory Hicks, Planning Commissioner and vice principal here in Los Banos attended the event with her. This event continues to grow each year, with a special thanks to Joe Heim, your staff is excellent, and she has enjoyed all the years this event has been happening. There will be a ribbon cutting for Rare Earth on 4/18/25, and the city is also planning a ribbon cutting for the new downtown sign. A suggestion was made to update the sign wording, rather than "Leaving Downtown" consider something more welcoming like "Thank You for Visiting Downtown". There's a request for our staff to make announcements about upcoming projects during meetings, as not everyone is on social media and may miss important updates.

DISTRICT 1: Vacant
MICHAEL S. AMABILE - MAYOR: Reported that he visited Miano School and Charleston School yesterday and it was a fun experience, and both the schools and the kids were very nice. Tomorrow is the MCAG meeting, and LAFCO is also happening, with PCE in a week. Next week, he's heading to Sacramento to represent Los Banos on a legislative matter. The May Day kickoff dinner is coming up and the State of the College event last week at Merced College went well and how he has been selected to be the commencement speaker at Merced College graduation in May and thanked the college and College President Chris Vitelli for the invitation, noting how he last gave the commencement address 25 years ago and is looking forward to doing it again. 19 CLOSED SESSION - PUBLIC EMPLOYEE PERFORMANCE EVALUATION. TITLE:

CITY ATTORNEY. PURSUANT TO GOVERNMENT CODE SECTION 54957. Mayor Amabile stated that advisement was given only, no action taken.

CLOSED SESSION - CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A), NAME OF CASE: GREG HOSTETLER AND STONEFIELD HOMES ET AL V BRETT JONES; MERCED SUPERIOR COURT, CASE NO. 24CV-05443. Mayor Amabile stated that advisement was given only, no action taken.

CLOSED SESSION - CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION, SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(8 ): (ONE POTENTIAL CASE). Mayor Amabile stated that advisement was given only, no action taken.

ADJOURNMENT. The meeting was adjourned at 9:30 p.m. to 9:00 a.m., Tuesday, May 6, 2025 at the Los Banos Police Department, 1111 G Street, Los Banos, California to Conduct a City Council Goals & Objectives Workshop.

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
20 CITY OF LOS BANOS

ADJOURNED CITY COUNCIL MEETING MINUTES
MAY6, 2025
ACTION MINUTES- These minutes are prepared to depict action taken for agenda items presented to the City Council. For detail of this meeting refer to the electronic media.

CALL TO ORDER: Mayor Amabile called the City Council Meeting to order at the hour of 9:00 a.m.

PLEDGE OF ALLEGIANCE: Police Chief Reyna led the pledge of allegiance.

ROLL CALL - MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Evan Sanders - District 2, Marcus Chavez - District 3 [left @ 9:25 am, returned at 12:30 pm], Deborah Lewis - District 4, Mayor Michael Amabile, District 1 - vacant; ABSENT: None STAFF MEMBERS PRESENT: Interim City Manager Brizzee, City Clerk/Human Resources Director Mallonee, Police Chief Reyna, Community & Economic Development Director Souza Elms, Parks & Recreation Director Heim, Fire ChiefTualla, Public Works Director/City Engineer Bergson, Finance Director Moreno, Housing Program Manager McCammond CONSIDERATION OF APPROVAL OF AGENDA: Motion by Lewis, seconded by Sanders to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL

MEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Amabile invited the public to come forward to speak. No one came forward to speak and the public forum was closed.

CONDUCT A CITY COUNCIL GOALS & OBJECTIVES WORKSHOP. Interim City Manager facilitated the workshop, with PowerPoint presentations from each staff member present.

Informational item only, no action taken.

ADJOURNMENT. The meeting was adjourned at 4:51 p.m.

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
21 ITEM 7C

THIS PAGE IS INTENTIONALLY LEFT BLANK
22 CITY OF LOS BANOS

CITY COUNCIL MEETING MINUTES
MAY 7, 2025
ACTION MINUTES - These minutes are prepared to depict action taken for agenda items presented to the City Council. For detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record.

CALL TO ORDER: Mayor Amabile called the City Council Meeting to order at the hour of 6:02 p.m.

PLEDGE OF ALLEGIANCE: Police Chief Reyna led the pledge of allegiance.

ROLL CALL - MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Evan Sanders - District 2, Marcus Chavez - District 3, Deborah Lewis - District 4, Mayor Michael Amabile, District 1 - vacant; ABSENT: None
STAFF MEMBERS PRESENT: City Attorney Vaughn, Interim City Manager Brizzee, City Clerk/Human Resources Director Mallonee, Police Chief Reyna, Community & Economic Development Director Souza Elms, Parks & Recreation Director Heim, Fire Chief Tualla, Public Works Director/City Engineer Bergson, Finance Director Moreno CONSIDERATION OF APPROVAL OF AGENDA: Motion by_, seconded by_ to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present.

PRESENTATIONS: PROCLAMATION RECOGNIZING NATIONAL DAY OF PRAYER:

PROCLAMATION RECOGNIZING LOS BANOS POLICE EXPLORER POST #864:

PROCLAMATION RECOGNIZING THE 561H ANNUAL PROFESSIONAL MUNICIPAL CLERKS WEEK: CERTIFICATE OF RECOGNITION - EMPLOYEE OF THE MONTH FOR APRIL 2025 - ALEXANDER VALDEZ, COMMUNITY SERVICES OFFICER, POLICE DEPARTMENT. Mayor Amabile presented the National Day of Prayer Proclamation to Pastors Steve Hammond & Mike Neu; the members of the Los Banos Police Explorers accepted their proclamation; and City Clerk Lucy Mallonee accepted the Proclamation Recognizing the 56th Annual Professional Municipal Clerks Week.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL MEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT 15 WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Amabile invited the public to come forward to speak. UNNAMED PERSON, addressed Item 10 on the agenda and requested that it be pulled for a 60-day pause to allow time for further review and examination of financial records. The speaker expressed concern that despite having 23 ITEM 7D
been on the council for five months, they have not had adequate access to financial records. She noted that some bills have not been paid and questioned whether the city has sufficient funds to meet its obligations. The speaker criticized the use of property owner funds to support city entertainment events, requesting profit statements and a list of expenses for transparency. She pointed out ongoing issues such as broken windows and graffiti that remain unaddressed, and raised concerns about payments to Civitas, delays from the city's accountants, and unclear reporting on salaries. She questioned what specific improvements will be made with the $16,000 mentioned in the budget and concluded by stating that whoever is managing the money is not managing. INIAS BROWN, expressed concern that downtown businesses are struggling and stated that it is painful to witness the ongoing difficulties faced by local establishments. He remarked that he is uncertain about what plans the city has to provide support and urged the council to take action to help revitalize the area. He also requested that the mayor and council research Casasarra following the adjournment of the meeting. The speaker referenced Dr. Kia Pruitt, noting that she has been discussing this topic for several years on platforms such as YouTube and Rumble. SHAWN GEORGE, spoke in regard to Item 10, emphasizing the importance of accountability and transparency in funding decisions. He referenced the balance sheets that had been provided, noting concerns about what they reveal. He urged the council to reconsider Item 10, requesting that the matter be delayed to allow the public more time to review the information before any decision is made. The speaker expressed disappointment, stating that he is not seeing the outcomes that were originally promised when the initiative was first introduced. FRANK L. VIERRA, JR., property owner, spoke regarding Item 10, expressing strong disappointment and frustration with the lack of visible improvements. He stated that he has been opposed to this initiative since day one and remains against it. He criticized the decision to raise rates despite ongoing concerns and argued that any such decision should be voted on by the people who actually pay the taxes. He voiced opposition to the proposed extension of the initiative to 2034, urging the council to instead focus on supporting those who are invested in the community. The speaker also noted that four local businesses are closing, which he sees as a sign that the city is losing people, not gaining them. CAROLYN VIERRA, finally able to attend a PBID meeting and provided remarks on what was discussed. She noted that meeting minutes were reviewed, and it was explained that any interested individual must formally apply to be involved. She expressed that she was pleased to see Deborah appointed to the PBID, but raised concerns about the lack of transparency and consistency, stating that she has a scheduling conflict and doesn't even know when the meetings are held, as they are not scheduled regularly. UNNAMED PERSON, speaking to item 10, stated that through FOIA (Freedom of Information Act) requests, they have been seeking detailed records of specific PBID expenditures, not just QuickBooks summaries. He emphasized the need to review full accounting records of the PBID from its inception in order to properly evaluate its effectiveness before any vote on approval. He noted that he has been requesting these records since the beginning and highlighted a concern regarding the Oddfellows property, which is being assessed additional fees due to a parking lot that is used by the city. He added that the Oddfellows had submitted a letter requesting the assessment be waived. UNNAMED PERSON stated that he believes a comprehensive forensic audit of the city's finances should be conducted, not limited to ARPA (American Rescue Plan Act) funds, but also including the 24 PBID and all other city funds to ensure full transparency and accountability. MARIBEL GARCIA, Los Banos Downtown Association, Maribel Garcia, representing the Los Banos Downtown Association, sincerely apologized for her absence, explaining that she experienced a family tragedy. She thanked the community for their support and shared that the association is now preparing for the upcoming Farmers Market, offering a special thank you to Morning Star for their sponsorship. Maribel expressed disappointment that only those opposed to the PBID chose to speak at the meeting and noted that their comments did not reflect all the work the PBID has accomplished. She highlighted efforts such as power washing, tree trimming, the installation of flower pots, the gateway sign, and numerous events hosted downtown last year. She pointed out that while PBID meetings have been held, very few people attend, despite the fact that financial information has been presented openly. Maribel shared that she has been belittled by some individuals but feels the PBID has operated transparently and has already been audited by the city. She also mentioned that this was the first day she received a records request from Elaine Corey. Maribel expressed her hope that the PBID will continue, stating that although it began as a trial, it has produced visible improvements. She mentioned upcoming additions such as new security cameras, blooming flower pots, and new board members. She closed by thanking the city for its continued support in helping to improve and celebrate downtown. MIKE NEU resident living near Willmott spoke about the urgent need for repaving Willmott Avenue, noting that the road is way overdue for maintenance. He described how truck grooves have formed on both sides of the street from Mercey Springs to Johnson Road, making the road condition poor and concerning.

He requested that someone review the current state of Willmott Avenue and consider moving its repaving up on the city's maintenance schedule. City Clerk Mallonee stated that there is one (1) comment to be read into the record regarding the mobile food vendor item on the agenda and Mayor Amabile stated that that comment will be read during that item. No one else came forward to speak and the public forum was closed.

CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Chavez, seconded by Sanders to approve the consent agenda as follows: Check Register for #250995 - #251447 in the Amount of $2,493,611.13; Measure H Citizens' Oversight Committee Report; Measure P Oversight Committee Report; City Council Resolution No. 6923 - Authorizing Investment of Monies in the Local Agency Investment Fund (LAIF) and to Revise the List of Authorized Signers for the City of Los Banos; City Council Resolution No. 6924 - Amending the Fiscal Year 2024-2025 Budget by Increasing Revenue in the Amount of $785,000 and Expenditures in the Amount of $510,150 as it Pertains to Building Department Services; City Council Resolution No. 6925 -Amending Division 5 - Personnel Benefits as it Pertains to Notary Public Certification Pay, Project Management Professional Certification Pay, Water/Wastewater Certificate Pay, Heavy/Special Equipment Operator Differential Pay, and Refuse Collection Pay for Unrepresented Miscellaneous Employees; City Council Resolution No. 6926 - Confirming the Appointment of William A. Vaughn as City Attorney and Approving Agreement for City Attorney Services in the Amount of $14,700 a Month Retainer. The motion carried by the affirmative action of all Council Members present. 25 CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 6927 -

AUTHORIZING THE AWARD OF CONSTRUCTION CONTRACT TO ROLFE CONSTRUCTION, INC. IN THE AMOUNT OF $4.432,440 WITH A 15% CONTINGENCY OF $664,866 FOR THE CONSTRUCTION OF THE FINAL KILOMETER SEWER TRUNK LINE REPLACEMENT PROJECT. Public Works Director/City Engineer Bergson presented the staff report.

Motion by Lewis, seconded by Chavez to adopt City Council Resolution No. 6927 - Authorizing the Award of Construction Contract to Rolfe Construction, Inc. in the Amount of $4,432,440 with a 15% Contingency of $664,866 for the Construction of the Final Kilometer Sewer Trunk Line Replacement Project. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 6928 -

AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE A PURCHASE ORDER WITH AGEE CONSTRUCTION CORPORATION IN THE AMOUNT OF $175,269 FOR

THE PROCUREMENT OF REINFORCED CONCRETE PIPE PURSUANT TO SECTION 3-10.250(M) OF THE CITY MUNICIPAL CODE. Public Works Director/City Engineer Bergson presented the staff report.

Motion by Chavez, seconded by Sanders to adopt City Council Resolution No. 6928 - Authorizing the Interim City Manager to Execute a Purchase Order with Agee Construction Corporation in the Amount of $175,269 for the Procurement of Reinforced Concrete Pipe Pursuant to Section 3-10-250(M) of the City Municipal Code. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF APPROVAL OF CITY COUNCIL RESOLUTION NO. 6929 -

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR

IMPLEMENTATION OF THE LOS BANOS DOWNTOWN PROPERTY AND BUSINESS

IMPROVEMENT DISTRICT (PBID) MANAGEMENT DISTRICT PLAN BETWEEN THE

CITY OF LOS BANOS AND LOS BANOS DOWNTOWN ASSOCIATION THROUGH DECEMBER 31, 2034. City Attorney Vaughn stated that he will be recusing himself as he owns his business property which is in the PBID and left his eat at the dais and the Council Chambers.

Community & Economic Development Director Souza Elms presented the staff report.

Mayor Amabile inquired as to what responsibilities the City holds regarding the PBID, which Community & Economic Development Director Souza Elms explained. She clarified that the PBID functions similarly to a homeowner's association and is primarily managed by the Downtown Association, with the City being one participant among about 68 property owners. The City has one vote, equal to each property owner. The City's role includes overseeing the adoption and renewal of the PBID but does not extend to direct control of the district. Meetings are held quarterly in accordance with the PBID' s bylaws and comply with the Brown Act. Additionally, the PBID is required to maintain insurance, financial record-keeping, and auditing practices. The agreement between the City and the 26 PBID ensures that both entities fulfill their obligations, with the City acting as an intermediary. Mr. Amabile thought the City had more control over the PBID. They noted that, in reality, the City's role seems limited to overseeing the agreement to ensure that funds are properly sent to the county. Interim City Manager Brizzee referencing page 105 and 106 of the agreement which outline the City's responsibilities regarding the PBI D.

They clarified that tonight's discussion is not about voting to continue the PBID, but rather to formalize the City's role in collecting and transferring PBID funds. Mr. Amabile noted that if the council did not act on the agreement tonight, the PBID funds would still be collected but would not be disbursed. He added that he would need to consult with legal counsel to determine the appropriate course of action should the agreement fail to be approved. Council Member Lewis stated that she had Ms. Mallonee distribute information regarding the Brown Act, which the Downtown Association is required to follow, as requested by Ms. Lewis. She referenced Government Code Section 54950 and noted that a workshop will be held prior to the adoption of the budget. Council Member Lewis expressed concerns about a lack of transparency under the prior administration, stating that past audits did not provide a full picture. She explained that the City holds the majority of property square footage within the PBID, which determines voting power; although more individuals voted "no," those voting "yes" represented more square footage.

Regarding the agreement's termination clause under section 1.1, she questioned how the City can provide notice if it is not fully informed. She emphasized her desire to understand the PBID' s finances, specifically the taxpayer funds collected and how they are spent, requesting detailed, line-by-line accounting. If the PBID is operating in the red, she expressed serious concern and stressed the obligation to ensure taxpayer dollars are spent appropriately according to agreed-upon plans. She referenced the master plan approved in August 2024 and asked for a timeline of improvements. While not singling out any organization, she insisted on accountability for tax dollars and believes the City Council has the authority to discontinue the agreement if necessary. After speaking with downtown merchants, she shared that some are unhappy with the flower pots and the unannounced tree trimming, though she personally appreciates the beautification efforts and security cameras. She noted that watering is done occasionally to maintain the plants. Council Member Lewis concluded that the financial records require deeper review before the agreement is signed. Over the past five years, improvements such as benches and flower pots have been made, but she feels much information was not shared with her as a council member, and the council needs clarity on what the City is receiving in return.

Mr. Amabile stated that the City only has one vote and does not have sole decisionmaking authority over the PBID. He emphasized that if the City does not sign the agreement, it will not receive the PBID funds. He noted that the PBID is financially in the black overall, although the recent casino night event operated at a loss. Council Member Chavez asked who collects the PBID funds for which Ms. Souza Elms responded that the county collects the funds, then passes them to the City, which in turn distributes the money to the PBID. Ms. Lewis stated that the public has requested an audit and a detailed financial breakdown. She emphasized that the City, the public, and the business owners are entitled to receive this information, especially given the resistance that has been encountered. Mr. Chavez expressed concerns about a lack of transparency and questioned why information was withheld for so long. They felt the process seemed onesided, favoring what is best for the organization rather than the public. They also noted 27 that only individuals who align with the organization's goals and who are agreeable are allowed to participate, leading to a perception that the process is neither fair nor transparent. Interim City Manager Brizzee The best way to obtain the audit being requested is through this agreement. If any fraud, waste, or abuse is discovered, the City can then exercise the termination clause to address those issues accordingly. Council Member Sanders asked what agreement was in place prior to this one, Ms. Souza Elms noted that the previous agreement had expired. Mr. Amabile stated that he does not believe there is any fraud involved. Mr. Chavez asked why the agreement is for so long, which Mr. Brizzee responded that the duration is related to the length of the PBID itself, adding that staff does not have a hesitation in requesting an audit. Mr. Amabile acknowledged that people have been asking for transparency about where the money has gone for quite some time. He expressed that if the agreement is not approved, the City's hands would be tied in accessing the funds. Therefore, he feels it is necessary to approve the agreement while simultaneously requesting an audit. He also noted that since the PBID has been voted on, it is not going away. Ms. Lewis noted that the last audit was very minimal and emphasized the need to clearly outline the specific information required in the audit to ensure that business owners and taxpayers are satisfied. Mr. Brizzee explained that if a third-party audit is produced and it's deemed insufficient, additional audits or reviews can always be requested. explained that if a third-party audit is produced and it's deemed insufficient, additional audits or reviews can always be requested. Mr. Chavez stated that if there had been transparency earlier, many of these issues could have been avoided. Finance Director Moreno responded that auditing standards are consistent and rigorous, and she would honor the council's wishes regarding the audit. She explained that the contract includes a termination clause if needed. Ms. Lewis asked whether there are minimum standards for audits and if the council could request something more detailed, such as a step-by-step review from the beginning. Ms. Moreno affirmed that audits include verifying and testing all disbursements and revenues to ensure everything is approved, balanced, signed, and cross-checked, high standards common to all businesses, and that they can work with the auditors to ensure the audit is thorough. Gary added that the City has access to all PBID records. Mr. Chavez inquired about the timeline for the audit, and Ms. Moreno estimated approximately six months. Mr. Sanders clarified that the City is not conducting the audit itself but is coordinating the process.

Mayor welcomed the public to come forward. MR. VIEIRA asked if the agreement needed to be approved that night, to which Mike confirmed it did. KATHY BALLARD explained that although the City has only one vote, it is weighted based on the square footage of property it owns, giving it significant influence; Ms. Souza Elms clarified that this weighted vote was used during the initial PBID assessment and establishment. CAROLYN VIEIRA expressed confusion, and Ms. Souza Elms explained that the City only has one vote on the board, while Ms. Lewis added that renewals are based on weighted votes. Mr. Vieira asked who represents the City on the board, and the Mayor said Lewis was appointed but has a scheduling conflict, so Ms. Souza Elms would represent the City temporarily.

Vieira mentioned she was never invited or informed about PBID meetings until she persistently reached out. Ms. Ballard questioned why the issue was brought up four months earlier and voted on by members who were later recalled. Ms. Souza Elms 28 responded by referencing the Downtown Master Plan approval. Ms. Lewis inquired about when the PBID was voted on, and Ms. Souza Elms stated it occurred in August of the previous year to meet county tax roll deadlines. RAUL GRANILLO asked how often PBID meetings occur, and Ms. Souza Elms said they are held every third Thursday at 10 a.m.

Mr. Granillo noted that many seem unaware of this schedule and suggested slowing down to evaluate priorities, ensuring bills are paid first, before deciding on the PBID' s future role. He expressed skepticism about the PBID' s creation, emphasized the City's dominant vote, and highlighted a serious lack of communication. He recommended the Downtown Association, business owners, and the City collaborate more closely to facilitate better conversation moving forward. Mr. Chavez asked what happens if the agreement is not approved. Mr. Amabile explained that the money would still be collected by the county but would not be dispersed to the City to pass on to the PBID and addressed concerns about the Oddfellows parking lot assessments, stating that all parking lots are being assessed equally and that this decision is final. He expressed confidence that the Downtown Association will handle the situation appropriately. Interim City Manager Brizzee suggested that as part of the motion, the Council should request a formal audit of the PBID.

Motion by Lewis, seconded by Chavez to adopt City Council Resolution No. 6929 - Authorizing the City Manager to Execute an Agreement for Implementation of the Los Banos Downtown Property and Business Improvement District Management District Plan Between the City of Los Banos and Los Banos Downtown Association Through December 31, 2034, adding and requesting that a full audit be done from the beginning of the PBID to present, to not include the 501c organization. The motion carried by the affirmative action of all Council Members present.

City Attorney Vaughn returned to the Council Chambers and his seat at the dais.

COUNCIL MEMBER REQUEST - DISCUSSION REGARDING THE MOBILE VENDOR ORDINANCE (COUNCIL MEMBER CHAVEZ). Council Member Chavez shared that he has spoken with mobile food vendors and is requesting the City revisit the current ordinance. He suggested exploring ways to allow seating and weather protection, such as tables, chairs, and tents, to better support vendors during inclement weather. He also raised concerns about illegal food vendors and emphasized the need to review the ordinance to find practical solutions that work for everyone.

Mayor Amabile asked the City Clerk to read a letter and invited public comments, the letter was from Ninive Villagomez who wrote in support of allowing tables, chairs and canopies, I own a local taco truck near City Hall, serving hardworking community members with quick, affordable meals. Our business is family-run and aims to work alongside other local businesses, not compete with them. Having a few tables and chairs for customers, many of whom have short lunch breaks or disabilities, makes a big difference by creating a welcoming space where they can rest and enjoy their food comfortably. We ask the city to support small businesses like ours by allowing seating and coverage, helping us contribute positively to the community. A business owner next to City Hall spoke, emphasizing that it was never their intent to be defiant, noting that it is 29 common practice for food trucks to have tables and chairs, and expressing hope that the ordinance can be changed accordingly. Ivan Gonzales complained about the current ordinance, saying it is unfair for his customers to stand without seating when brick-andmortar establishments have that option. As a disabled person who cannot stand for long periods, he feels it is important to provide chairs for his customers' comfort. Refugio added that the ordinance is over 20 years old and overdue for review, with vendors requesting allowances for tables, chairs, and canopy covers-not permanent structures-which align with recently approved Senate bills. He also expressed concern that fees are excessive and should only cover actual costs, urging a review of the fee schedule. Raul Granillo, although not a food vendor himself, expressed support for revisiting the ordinance, stressing that food trucks are simply people trying to make an honest living and are not harming brick-and-mortar restaurants. He encouraged the city to remember the importance of these individuals in the community and to not overlook their needs.

Mr. Chavez acknowledged that the current council cares and understands government processes take time. He supports reviewing the ordinance to allow chairs, tables, and tents that can be easily removed each day. Mr. Amabile noted that government moves slowly by design to ensure public input. He encouraged more restaurants to come to town for the benefit of the whole community. He pointed out that mobile vendors originally moved frequently but now often stay in one spot, so rules need to fairly balance the interests of both mobile vendors and brick-and-mortar restaurants. He agreed the ordinance should be reviewed.

Motion by Chavez, seconded by Sanders to have staff move forward with reviewing new options for the Mobile Food Ordinance to include what has been talked about and bring back to Council at a later date to consider. The motion carried by the affirmative action of all Council Members present.

APPOINTMENT OF MEMBERS TO THE FOLLOWING COMMISSIONS: MEASURE H CITIZENS' OVERSIGHT COMMITTEE, ONE (1) TWO (2) YEAR TERM - EXPIRING DECEMBER 31 1 2026; TREE COMMISSION, ONE (1) UNEXPIRED TERM - EXPIRING DECEMBER 31 , 2025, TWO (2) TWO (2) YEAR TERMS - EXPIRING DECEMBER 31 , 2026. City Clerk/Human Resources Director Mallonee presented the staff report.

Motion by Amabile, seconded by Lewis, to appoint Letty Guerra to the Measure H Citizens' Oversight Committee, a one (1) two (2) year term -expiring December 31, 2026.

The motion carried by the affirmative action of all Council Members present.

Motion by Amabile, seconded by Chavez, to appoint Thomas Kaljian and Brian Hollaran to the Tree Commission to two (2) two (2) year terms - expiring December 31, 2026. The motion carried by the affirmative action of all Council Members present.

CITY DEPARTMENT REPORTS. Interim City Manager Brizzee introduced a new agenda item for quick reports from department heads. Community & Economic Development Director Souza Elms provided an update on upcoming Planning Commission public hearings and noted that the California Department of Finance recently 30 released new population estimates, reflecting a 1.4% increase to 48,896 residents.

Finance Director Moreno announced that starting July 1, 2025, the city will begin accepting credit card payments at all locations. Parks & Recreation Director Heim shared that a ceremonial $1 million check, secured with assistance from Assemblywoman Soria, will be presented on May 17 at Colorado Ball Park. He also mentioned the soft opening of Sunrise Ranch on May 12 and upcoming progress on Shaunessey Village. Police Chief Reyna expressed gratitude to Jason Walsh and Los Banos Junior High School for their collaboration and noted that with approved funding, the Police Department plans to build a mobile speed trailer to monitor traffic throughout the city. Public Works Director/City Engineer reported that the city is currently soliciting construction proposals and that Ortigalita is temporarily shut down.

CITY MANAGER REPORT. Interim City Manager Brizzee thanked the staff and council for attending the budget priorities workshop, noting that it was very productive with a lot of information exchanged. He emphasized the continued effort toward transparency and mentioned that the press spent the entire day with them. Additionally, he announced that new, larger 1Vs have been ordered for the council chambers.

CITY COUNCIL MEMBER REPORTS:

MARCUS CHAVEZ - DISTRICT 3: Yesterday's goals and objective workshop/meeting was very informative, and he thanked the staff for their presentation and the valuable information shared. He described it as a great learning experience and pretty cool to see everything firsthand. The homeless encampment was a significant topic of discussion, and he mentioned that he personally went through the encampment. He noted that staff is already working on solutions to address the issue.

DEBORAH LEWIS - DISTRICT 4: The recent CalCities news reported a population increase of 108 in California, noting that the state experienced a significant exodus during COVID-19. While growth has been slow in the Bay Area, the Central Valley is seeing more positive growth. Congratulations were extended to Chief Reyna's explorers, Greco and Marchese, for their work engaging youth in law enforcement. Director Mallonee was also congratulated on receiving her first-ever award, with thanks given for her dedicated service. Regarding street projects, there was a request to avoid routing heavy truck traffic through residential areas during large projects in Los Banos. The Citizen's Academy was highlighted as an important community program that brings all city departments together to educate residents and help maintain full commissions and promote city vacancies.

Finally, the SJVAPCD meeting focused mostly on statistics and staff appreciation, with a key recommendation for residents to stop burning wood. Funding is still available for those interested in switching to gas appliances or inserts.

DISTRICT 1: Vacant
EVAN SANDERS - DISTRICT 2: Yesterday's workshop/meeting was really cool and a great opportunity to bring everyone together to talk, especially since the Brown Act usually limits how we can meet. It was an informative day and honestly the most fun I've had so 31 far. I appreciate the thought and effort everyone put into their presentations-they helped us understand what to expect in the coming years. It's clear that everyone truly wants what's best for the city.

MICHAEL S. AMABILE - MAYOR: A few weeks ago, there was the city-county dinner in Merced, a quarterly meeting where city and county officials network, share ideas, and plan for future events. They discussed how Merced secured grant funding for their new terminal, and he shared that he was recently appointed to another commission. At 11 a.m., there was a ribbon-cutting at the Lorraine Street Bridge in Dos Palos, funded by Measure V. Congratulations were extended to the Merced County Spring Fair Board for another great May Day week. While there wasn't much talk about potholes, it's clear our streets need attention. Last week, he spent 12 hours in Sacramento at Senate hearings for SB 466, a bill the city is co-sponsoring that involves expanding the Capitol. He thanked staff for yesterday's meeting, saying he enjoyed it, looks forward to more, and appreciates the council and staff's dedication to the city's goals.

CLOSED SESSION - PUBLIC EMPLOYMENT: TITLE: CITY ATTORNEY, PURSUANT TO GOVERNMENT CODE SECTION 54957(8 ). Mayor Amabile stated that direction was given to staff.

ADJOURNMENT. The meeting was adjourned at 9:02 p.m.

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
32 LOsBanos . { tluAgenda Staff Report
TO:

FROM:

DATE:

Michael S. Amabile & City Council Members
Minerva Moreno, Finance Director/'1',-J
May 21, 2025
TYPE OF REPORT: Consent Agenda
SUBJECT: Budget Amendment - Retiree Health OPEB ADC
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution to amend the budget for the 2024-2025 Fiscal Year, reflecting adjustments to revenues and expenditures.

BACKGROUND:

The City Council has the authority to revise the budget by resolution at any time during the fiscal year, provided there are available funds and consensus among council members regarding the requested adjustment.

DISCUSSION:

The City provides healthcare benefits to retirees through the CalPERS PEMHCA program. Contributions vary by tier;
• Tier 1: The City covers premiums for elected coverage up to the Blue Shield Access+ HMO (pre-Medicare) and Blue Shield Medicare PPO (Medicareeligible retirees). • Tier 2: The City contributes up to a percentage of the Blue Shield Access+ HMO premium (pre-Medicare) and the elected Medicare plan, ensuring no less than the PEMHCA minimum employer contribution.
• Tier 3: The City provides only the PEMHCA minimum, which is $158 for 2025. 33 ITEM 7E
Additionally, the City incurs an implicit subsidy, as pre-Medicare retirees' expected healthcare costs exceed the premiums charged by PEMHCA. Actuarial Standards of Practice (ASOP 6) requires valuation of this implicit subsidy for agencies participating in pooled plans like CalPERS. The City follows a funding policy that fully prefunds the Actuarially Determined Contribution (ADC).

Under GASS Statement 75, the ADC represents the target or recommended contribution to an OPES plan, in alignment with Actuarial Standards of Practice. While GASS 75 does not require immediate payment of any unfunded liability or adjustment for surplus assets, these amounts are amortized over time.

The ADC consists of the Normal Cost (benefits earned annually) plus amortization of the Unfunded Actuarial Accrued Liability (UAAL) over a 22-year closed period, calculated as a percentage of payroll. Employer contributions include payments to CERST, as well as premiums and implicit subsidies paid directly to retirees. While contributing the ADC is not mandatory, any difference between ADC and actual contributions affects future unfunded liability and UAAL amortization. ■ Discount Rate
■ Fiscal Year
■ Nom1al cost
■ Estimated administrative expenses
■ UAAL Amortization
■ Actuarially Detennined Contribution (ADC)
■ Estimated Payro/16
■ ADC as a percent of estimatedpayroll
■ Actuarially Detennined Contribution (ADC)
■ Estimated cash benefit payments'
■ Implicit subsidy benefit payments
■ Estimated PEMHCA administrative expenses
■ Net ADC trust contribution 7
June 30. 2023 Valuation

6.25%
2024/25
$ 676,808
B,074

1.205,055
1~894,937
13,257,088

14.3%
$1,894,937
(l ,315,599)
(J 79,946)
(4,282)
395,H0
2025/26
$ 669,191
14,353
1,238.194
1,921,738
13,621,658

14.1%
$1,921,738
(1,463,757) . .
(223,966)
(4.836)
229,179
The City's commitment to retiree health benefits remains steadfast, supported by allocated funding. The FY 2024-25 budget originally set aside $1,571 ,519 for ADC funding; however, the revised ADC now reflects an increase of $323,418 over the prior year, totaling $1 ,894,937.
2 34
FISCAL IMPACT:

The amendment will increase revenues in account 656-000-341-012 by $323,418 and expenditures in account 656-415-530-125 by the same amount.

Reviewed by:

Ga~1 ~
Interim City Manager
ATTACHMENTS:

Resolution
3 35

THIS PAGE IS INTENTIONALLY LEFT BLANK
36 RESOLUTION NO. ' --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS AMENDING THE FISCAL
YEAR 2024-2025 BUDGET BY INCREASING

REVENUE AND EXPENDITURES FOR RETIREE
HEATH INTERNAL SERVICE FUND BUDGET.

WHEREAS, the City Council of the City of Los Banos has been presented a proposal to increase the appropriations in the Fiscal Year 2024-2025 Budget; and WHEREAS, the City Council of the City of Los Banos may adjust the overall appropriation levels in each fund at any time during the Fiscal Year by action to amend the budget; and
WHEREAS, the proposed increase in revenues is $323,418 for account 656- 000-341-012; and
WHEREAS, the proposed increase in expenditures is $323,418 for account 656- 415-530-125; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos hereby approves an increase to the revenues and expenditures within the 2024- 2025 Fiscal Year Budget to include an increase of $323,418 in revenues for account 656-000-241-012, and an increase in expenditures of$ 323,418 for account 656-415- 530-125; and
The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21 day of May 2025, by Council Member __ _ who moved its adoption, which motion was duly seconded by Council Member __ _ and the Resolution adopted by the following vote:

AYES: Council Members
NOES:

ABSENT:

APPROVED:

Michael Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
37 THIS PAGE IS INTENTIONALLY LEFT BLANK
38 LOsBanos
l th li O Ii
Agenda Staff Report
TO: Mayor & City Council Members
FROM: Charles Bergson, P.E., Public Works Director/City Engi DATE: May 21, 2025
TYPE OF REPORT: Consent Item
SUBJECT: Approving an Easement Deed from the City of Los Banos to PG&E dedicating approximately 179 square feet of land at the southeast corner of Parcel C in the subdivision The Villages V, Unit 3.

Recommendation:

That the City Council adopts the Resolution approving an Easement Deed from the City of Los Banos to PG&E dedicating an easement of approximately 179 square feet of land at the southeast corner of Parcel C in the subdivision The Villages V, Unit 3. The land involved is more specifically, a portion of Assessor Parcel Number 430-010-059. The resolution authorizes the Public Works Director to execute all required documents for this dedication.

Background:

The Tentative Tract Map No. 2021-01 was approved by the City of Los Banos Planning Commission on December 08, 2021 by Resolution No. 2021-16. In June of 2023, the Public Works staff was contacted by, Lodi Development, Inc., a California Corporation, for Final Map approval for The Villages V - Large Lot Final Map. On September 6, 2023 the Los Banos City Council adopted Resolution No. 66686 approving Final Tract Map No. 2021-01 Stonecreek at Los Banos, The Villages V - Large Lot Final Map. The Final Map was recorded with the County of Merced on September 26, 2023. On July 17, 2024 the Los Banos City Council adopted Resolution No. 6810 accepting a grant deed for Parcel C as shown on The Villages V - Large Lot Final Map for the future site of Fire Station #4.

The grant deed was recorded with tlJe County of Merced on December 5, 2024. After the ITEM 7F
39 recording Anderson Homes reached out to the City on behalf of PG&E requesting an Easement Deed from the City of Los Banos to PG&E based on the utility location of a PG&E transformer. Said easement deed is required for the subdivision The Villages V, Unit 3 as well as future Fire Station #4.

Discussion:

The subject is generally located within the area bounded by bounded by Highway 152 to the North, future Pioneer Rd to the West, Stonecreek Blvd to the East, and future extension of Stonecreek Blvd to the South. Based on utility location of a PG&E transformer said easement deed is required for the subdivision The Villages V, Unit 3 as well as future Fire Station #4.

Fiscal Impact:

None
Reviewed by:
rim City Manager
Attachments:

Resolution
Grant Deed Transfer (Copy)
Legal Description - Exhibit A
Plat Map - Exhibit B
Grant of Easement Disclosure Statement - Exhibit C
The Villages V - Large Lot
Site Map
40 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS APPROVING AN EASEMENT

DEED FROM THE CITY OF LOS BANOS TO PG&E

DEDICATING AN EASEMENT APPROXIMATELY
179 SQUARE FEET OF LAND AT THE SOUTHEAST

CORNER OF PARCEL C IN THE SUBDIVISION THE
VILLAGES V, PHASE 3 AND AUTHORIZING THE

PUBLIC WORKS DIRECTOR TO EXECUTE THE
ASSOCIATED DOCUMENTS.

WHEREAS, Anderson Homes, Inc., a California Corporation, has requested on behalf of PG&E the approval of an Easement Deed from the City of Los Banos to PG&E dedicating an easement of approximately 179 square feet of land at the southeast corner of Parcel C in the subdivision The Villages V, Unit 3.

WHEREAS, based on utility location of a PG&E transformer said easement deed is required for the subdivision The Villages V, Unit 3 as well as the future fire station proposed by the City; and
WHEREAS, the City of Los Banos approves the Easement Deed from the City of Los Banos to PG&E for a portion of Parcel C, more specifically identified as a portion of Assessor Parcel Number 430-010-059; and
WHEREAS, the Easement Deed, as presented, has been reviewed and deemed acceptable by a Los Banos City Consulting Firm and the Public Works Director; and WHEREAS, the City Council of the City of Los Banos authorizes the Public Works Director to execute documents associated with approval of the Easement Deed from the City of Los Banos to PG&E; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Los Banos that it does hereby approves an Easement Deed from the City of Los Banos to PG&E dedicating an easement of approximately 179 square feet of land at the southeast corner of Parcel C in the subdivision The Villages V, Unit 3 as described in Exhibit "A", shown in Exhibit "B" and authorizes the Interim City Manager to execute associated documents.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21 st day of May, 2025, by Council Member _ __ who moved its adoption, which motion was duly seconded by Council Member _ __ and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT: APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
41 Utility Distribution Easement (02/2020)
RECORDING REQUESTED BY AND RETURN TO:

PACIFIC GAS AND ELECTRIC COMPANY
300 Lakeside Drive, Suite 210
Oakland, CA 94612
Attn: Land Rights Library
Location: City~ Los Banos
Recording Fee$ _ ___ _ _ _ _ _ _ _
Document Transfer Tax $ ~O.__ _ _ J><( This is a conveyance where the consideration and Value is less than $100.00 (R&T 11911).
[ ] Computed on Full Value of Property Conveyed, or
[ ] Computed on Full Value Less Liens
& Encumbrances Remaining at Time of Sale
[ ] Exempt from the fee per GC 27388.1 (a) (2); This
document is subject to Documentary Transfer Tax
Si nature of declarant or a ent d ~minin tax
LD# 2210-10-10055
(SP ACE ABOVE FOR RECORDER'S USE ONLY)

EASEMENT DEED

CITY OF LOS BANOS, A MUNICIPAL CORPORATION,
hereinafter called Grantor, hereby grants to PACIFIC GAS AND ELECTRJC COMPANY, a California corporation, hereinafter called Grantee, the right from time to time to excavate for, construct, reconstruct, replace ( of initial or any other size), remove, maintain, inspect, and use facilities and associated equipment for public utility purposes, including, but not limited to electric, gas, and communication facilities, together with a right of way therefor, on, over, and under the easement area as hereinafter set forth, and also ingress thereto and egress therefrom, over and across the lands of Grantor situated in the unincorporated area of the City of Los Banos, County of Merced, State of California, described as follows:
(APN 430-010-59)
Parcel C of Tract No. 2021-01 Stonecreek at Los Banos The Villages V -Large Lot Final Map as said parcel is shown upon the map filed for record September 26, 2023 in volume 86 of official plats at page 28, Merced County Records.

The easement area is described as follows:

The strip of land described in Exhibit "A" and shown on Exhibit "B" attached hereto and made a part hereof.

Grantor further grants to Grantee the right, from time to time, to trim or to cut down, without Grantee paying compensation, any and all trees and brush now or hereafter within said easement area, and shall have the further right, from time to time, to trim and cut down trees and brush along each side of said easement area which now or hereafter in the opinion of Grantee may interfere with or be a hazard to the facilities installed hereunder, or as Grantee deems necessary to comply with applicable state or federal regulations. ,
Public
42 Utility Distribution Easement (02/2020)
Grantor a]so grants to Grantee the right to use such portion of said lands contiguous to said easement area as may be reasonably necessary in connection with the excavation, construction, reconstruction, replacement, removal, maintenance and inspection of said facilities.

Grantor hereby covenants and agrees not to place or construct, nor allow a third party to place or construct, any building or other structure, or store flammable substances, or drill or operate any well, or construct any reservoir or other obstruction within said easement area, or diminish or substantially add to the ground level within said easement area, or construct any fences that will interfere with the maintenance and operation of said facilities.

Grantor further grants to Grantee the right to apportion to another public utility (as defined in Section 216 of the California Public Utilities Code) the right to excavate for, construct, reconstruct, replace, remove, maintain, inspect, and use the communications facilities within said easement area including ingress thereto and egress therefrom.

Grantor acknowledges that they have read the "Grant of Easement Disclosure Statement", Exhibit "C", attached hereto and made a part hereof.

The legal description herein, or the map attached hereto, defining the location of this utility distribution easement, was prepared by Grantee pursuant to Section 8730 (c) of the Business and Professions Code.

This document may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

The provisions hereof shal1 inure to the benefit of and bind the successors and assigns of the respective parties hereto, and al1 covenants shall apply to and run with the land.

Dated: ~/ ,Z 8 ,::Z o'Z .'>

CITY OF LOS BANOS, A MUNICIPAL
I hereby certify that a resolution was adopted CORPO ON on the __ day of ____ , 20 __ , by the
authorizing the foregoing grant of easeme
By _____________ __ _ Na~.Fr £ I "f.,,. CJ S °"1
~{ w.,h ~------+'70~-
Public
43 Utility Distribution Easement (02/2020)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of CalifoJti ced
County of l¥
On fll,ri \ 38/ ;u)_:26 , before me, JU6jJr') J~~rt n~unf on personally appeared Cho.rl.es :B~rg.:son
Notary Public,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WI'INESS my hand and official seal.
[ ] Individual(s) signing for oneselfi'themselves
~ Corporate Officer(s) of the above named corporation(s) [ ] Trustee(s) of the above named Trust(s)
[ ] Partner(s) of the above named Partnership(s)
[ ] Attomey(s)-in-Fact of the above named Principal(s)
[ ] Other
Public
JUSTIN JA/IIES ,U.GUM'TOM a Hotuy Pu~llc • ~tlfom!A I ; M•rttel County CommlSIIOII I 2'416771
"'Y comm. £.lplm Jan H, 1021
(Seal)
44 EXHIBIT "A"

LEGAL DESCRIPTION

PUBLIC UTILITY EASEMENT

REAL PROPERTY IN THE CITY OF LOS BANOS, COUNTY OF MERCED, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF PARCEL C, AS SAID PARCEL IS SHOWN UPON THE FINAL MAP ENTITLED "TRACT NO. 2021-01, STONECREEK AT LOS BANOS, THE VILLAGES V- • LARGE LOT FINAL MAP", FILED SEPTEMBER 26, 2023 IN VOLUME 86 OF OFFICIAL PLATS, AT PAGES 28 THROUGH 33, OFFICIAL RECORDS OF MERCED COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL C; THENCE ALONG THE

SOUTHERLY LINE OF SAID PARCEL C, ALONG A CURVE TO THE LEFT HA YING A RADIUS OF 850.00 FEET, FROM WHICH THE CENTER OF SAID CURVE BEARS SOUTH 27°18'03"WEST, THROUGH A CENTRAL ANGLE OF 01 °31 '00" AND AN ARC LENGTH OF 22.50 FEET; THENCE LEA YING SAID SOUTHERLY LINE OF PARCEL C, NORTH 27°18'03" EAST, 8.00 FEET; THENCE SOUTH 63°27'27" EAST, 22.50 FEET TO THE EASTERLY LINE OF SAID PARCEL C; THENCE ALONG SAID EASTERLY LINE, SOUTH 27°18'03" WEST, 8.00 FEET TO THE POINT OF BEGINNING.

CONTAINING 179 SQUARE FEET, MORE OR LESS.

A PLAT OF THE ABOVE DESCRIBED EASEMENT IS A TI ACHED HERETO AS EXHIBIT "B" AND BY THIS REFERENCE MADE A PART HEREOF.

END DESCRIPTION

THIS REAL PROPERTY DESCRIPTION HAS BEEN PREPARED BY ME, OR UNDER MY

DIRECTION, IN CONFORMANCE WITH THE REQUIREMENTS OF THE PROFESSIONAL LAND SURVEYOR'S ACT.

WILLIAM M. KOCH

PROFESSIONAL LAND SURVEYOR
CALIFORNIA NO. 8092
31116-LD Parcel C PUE - -
DATE

45 0)
0 <D
L[)
N
..c
u
0 -"'
..0
01 ;;::
"D
w
:::,
Q..

I u
a3
~
0 Q..

I X
w
I
<D
~
I")
/
01 ;:
0 o_
0 ::::;;
/
>,
QJ
2'.
:J
(/]
/
(I)
;:
0 "D
0 QJ
::::;;
N83°08'02"W (R)
\ ~
\
0 25 50
SCALE: 1" = 50'

LINE TABLE
LINE# DIRECTION LENGTH
L1 N27°18'03"E
L2 S63°27'27"E 22.50'
L3 S27°18'03"W 8.00'
·a CURVE TABLE :J
0 EXHIBIT "B"
N54 ooo•37"W
265.48'
N72°40'57"W (R)

PARCELC
(86 OP 28-33)

PUBLIC UTILITY

EASEMENT
179 S.F.

L1
N25°47'03"E (R)

74.03'
N66°51'21"W
R=850.00'
ll:4°09'24"
L=22.98'
C')
<.O
co
(\J
-
ES
w
C')
0 co
....
0 r---
C\J
z
\
L3
POB
N27°18'03"E (R)

STONECREEK BOULEVARD
LEGEND

LOT LINE

EASEMENTDNE - -
CURVE# RADIUS DELTA LENGTH POB POINT OF BEGINNING
> (R) RADIAL LINE
~ C1 850.00' 1°31'00" 22.50' (T)TOTAL
.2 L':::::~~~::::::=::::::::::==::::::::::, __ r-___ __:_:_~~---_J 5 1 <D
n
/
l!i•i=tll
-ENGlN-E-E-RlNG
1165 Scenic Drive, Suite A
Modesto, CA 95350
odellengineering.com
DESCRIPTION: PUBLIC UTILITY EASEMENT 2
SCALE: AS SHOWN DATE: APRIL 9, 2024 of
JOB NO .: 31116
2 I ____________________ ..,_;;;.;;.__..i,..;;;.;..;.,;.;.._;;_;.;;.;.;..;;,~;..;;,;;;.;_;;;;;,;.;.;.:;:_ FILE: 31116-EX_PARCEL C_PUE.DWG __ .J.. __ _. 46 Utility Distribution Easement (02/2020)
Pacific Gas and Electric Company
EXHIBIT "C"

GRANT OF EASEMENT DISCLOSURE STATEMENT
This Disclosure Statement will assist you in evaluating the request for granting an easement to Pacific Gas and Electric Company (PG&E) to accommodate a utility service extension to PG&E's applicant. Please read this disclosure carefully before signing the Grant of Easement. • You are under no obligation or threat of condemnation by PG&E to grant this easement. • The granting of this easement is an accommodation to PG&E's applicant requesting the extension of PG&E utility facilities to the applicant's property or project. Because this easement is an accommodation for a service extension to a single customer or group of customers, PG&E is not authorized to purchase any such easement.
• By granting this easement to PG&E, the easement area may be used to serve additional customers in the area and may be used to install additional utility facilities. Installation of any proposed facilities outside of this easement area will require an additional easement. • Removal and/or pruning of trees or other vegetation on your property may be necessary for the installation of PG&E facilities. You have the option of having PG&E's contractors perform this work on your property, if available, or granting permission to PG&E's applicant or the applicant's contractor to perform this work. Additionally, in order to comply with California fire laws and safety orders, PG&E or its contractors will periodically perform vegetation maintenance activities on your property as provided for in this grant of easement in order to maintain proper clearances from energized electric lines or other facilities. • The description of the easement location where PG&E utility facilities are to be installed across your property must be satisfactory to you.
• The California Public Utilities Commission has authorized PG&E's applicant to perform the installation of certain utility facilities for utility service. In addition to granting this easement to PG&E, your consent may be requested by the applicant, or applicant's contractor, to work on your property. Upon completion of the applicant's installation, the utility facilities will be inspected by PG&E. When the facility installation is determined to be acceptable the facilities will be conveyed to PG&E by its applicant.

By signing the Grant of Easement, you are acknowledging that you have read this disclosure and understand that you are voluntarily granting the easement to PG&E. Please return the signed and notarized Grant of Easement with this Disclosure Statement attached to PG&E. The duplicate copy of the Grant of Easement and this Disclosure Statement is for your records.

Public
I
47 Utility Distribution Easement (02/2020)
Attach to LD: 2210-10-10055
Area, Region or Location: 5
Land Service Office: Fresno
Line of Business: Electric Distribution (43)
Business Doc Type: Easements
MTRSQ: 22.10.10.21.44
FERC License Number: NI A
PG&E Drawing Number: 35483241
Plat No.: 10103A (E)
LD of Affected Documents: NIA
LD of Cross Referenced Documents: NIA
Type of interest: Communication Easements (6), Electric Underground Easements (4), Utility Easement (86)
SBE Parcel: NIA
% Being Quitclaimed: N/A
Order or PM: 35483241
JCN:NIA
County: Merced
Utility Notice Number: NIA
851 Approval Application No: NIA ;Decision: NIA
Prepared By: A7HO
Checked By: JYPX
Approved By: NIA
Revised by: NIA
Public
48 Pacific Gas and
Electric Company
WE DELIVER ENERGY.

April 09, 2025
Attn: ANDERSON HOMES

MICHAEL ANDERSON
2440 BERT DR BLDG 200 SUITE 201
HOLLISTER, CA 95023
[email protected]
Albert Hong
Land Technician
(805) 471-1708
LS & ES- South Valley
3580 E. California Avenue
Fresno, Ca. 93725
Cell: (805) 471-1708
Mail Bag: 23
A [email protected]
RE: Utility Easement Agreement- GEP VILLAGES V UNIT 3 LOS BANOS Dear MICHAEL ANDERSON:

Attached for signature is the Easement Agreement required to extend utility service to your project.

Please print the document single-sided and at actual size and have the appropriate party sign and return the original to this office for further processing. To speed processing, please scan and email an electronic copy to [email protected].

So that the document will be in recordable form, a Notary Public must notarize the signatures.

The printed name(s) under the signature line(s) must match those listed on the notary acknowledgment. The appropriate form is included in the attachments.

When completed, please send the physical document(s) to the address listed below:

PACIFIC GAS & ELECTRIC
ATTN: ALBERT HONG
3580 E. California Avenue
Fresno, CA 93725
Your cooperation in this matter is appreciated. Please call me at (805) 471-1708 or e-mail me at [email protected] if you have any questions regarding this easement agreement.

Sincerely,
Albert Hong
Land Technician
Public
49 OWNER'S STATEMENT

WE, THE UNDERSIGNED, DO HEREBY STATE THAT WE ARE THE OWNERS OR HAVE SOME RIGHT, TITLE OR INTEREST IN AND TO THE REAL PROPERTY INCLUDED WITHIN THE SUBDIVISION SHOINN ON THE MAP; THAT

WE ARE THE ONLY PERSONS WHOSE CONSENT IS NECESSARY TO PASS CLEAR TITLE TO SAID REAL PROPERTY; AND THAT WE HEREBY CONSENT TO THE MAKING AND RECORDING OF SAll;. MAP AND SUBDIVISION AS SHOWN WITHIN THE DISTINCTIVE BORDER LINE.

THE REAL PROPERTY DESCRIBED BELOW 1S DEOtCATED AS AN EASEMENT FOR PUBLIC PURPOSES:

1. TO THE ClTYOF LOS BANOS, ANON-EXCLUSIVE EASEMENT TOGETHER WITH THE RIGHT TO

CONSTRUCT, RECONSTRUCT, REPAIR ANO MAINTAIN, POLES, WIRES, CABLES, PIPES, ANO CONDUITS

AND THEIR APPURTENANCES UPON, OVER AND UNDER THE STRIPS OF LAND AS SHOWN ON THIS FINAL MAP DESIGNATED AS "P.U.E." (PUBLIC UTILITY EASEMENT).

THE REAL PROPERTY DESCRIBED BELOW IS DEDICATED IN FEE FOR PUBLIC PURPOSES:

1. TO THE CITY OF LOS BANOS, IN FEE, PARCELS AANOB FOR PURPOSES OF PUBLIC PARKS AND OPEN SPACE, INCLUDING PUBLIC VTtUTIES, STORM DRAIN FACILITIES, SANITARY SEWER FACILITIES, FENCE

MAINTENANCE ANO APPURTENANCES THERETO, FOR THE BENEFIT OF THE PUBLIC, AS SHOWN ON THIS FINAL MAP.

THE UNDERSIGNED HEREBY RESERVES PARCELS CTHROUGH L FOR FUTURE DEVELOPMENT.

THE UNDERSIGNED HEREBY RESERVES FOR THE BENEFIT OF THE LOTS CREATED BY THIS MAP,

TEMPORARY ACCESS EASEMENTS OVER LOTS HAND I UNTIL SUCH TIME AS THESE LOTS ARE DEDICATED TO THE CITY AS PUBLIC RIGHTS-OF-WAY.

OWNERS:

LODI DEVELOPMENT, INC, A CALIFORNIA CORPORATION AS DESCRIBED IN DOCUMENT NU"'1BEA 2003-030443, AS DESCRIBED IN DOCUMENT NUMBERS 2019-00643B AND 2019-006439, AND 22.222¾ OF PARCEL TWO AS DESCRIBED IN DOCUMENT NUMBER 2003·030442
BY: ~-,./-- ii':,_',:,i~._r-,r.~;
NAME: '~;•,6~-- ... .; ,. '~;~~-~·:...--:~·t,:,.., (PRINT NAME) ITS: Xt,.~ f· _._ .... ;,. .,)~ (TITLE) •
ANDERSON HOMES, A CALIFORNIA CORPORATION AS TO 77.778% OF PARCEL ONE AS DESCRIBED tN DOCUMENT NUMBER 2022-012213
BY: -~--f ... r../_,,.,, s:LXJ __ ~~:: ... •~;,:z.

DATE
NAME: /':,_.;·.~. ;-;,,! I--~ ~-•,-.,,:~_ .... .,. (PRINT NAME) ITS: i.).~ ... - ,-~~::J~·.,.\ .. ,~';, (TITLE)
LARRYW. ANDERSON AND GEORGEANN M. ANDERSON, TRUSTEES OF THE RESTATED LARRY W.

ANDERSON AND GEORGEANN M.ANDERSON REVOCABLE FAMILY TRUST DATED AUGUST 9, 2004 AS TO DOCUMENT N~BER 20~21788
BY: ~~::::t~·""JLc.:::1~~ •-.;;.~_,;,
L~f;RY ~~D.ERS~.N /'~·· \~~ST~E)
Gto·~~~~ rJ."~£ E~~~~ i ~~M:e,-'
t~f·?;y}~~.;r;;~~~- DATE' •
_jff/-~~.~ I:: ,v.~-; < DATE >
TRACT NO: 2021-01

STONECREEK AT LOS BANOS

THE VILLAGES V - LARGE LOT FINAL MAP
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OF TRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS DESCRIBED IN
DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER
2022-012213, DOCUMENT NUMBER 2003-030442 AND DOCUMENT
NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T. 10 S,, R. 10 E., M.D.B.&M.

WEST PACHECO ROAD
!
N
~

CITY OF LOS BANOS

MERCED COUNTY, CALIFORNIA
AUGUST2023
□ ELL
ENGlNEERlNG
1 ms Scenic Orlve, Su1\e A
Mixleskl, CA 95350
Ph 209.571.1765 odellengineering.com
3/
t:'
c:s,&. f5 ,~C',s,. 8
'Z"b4o'"

VICINITY MAP
N.T.S

CARDOZA ROAD
PLANNING COMMISSION STATEMENT:

I, STACY SOUZA ELMS, COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR FOR THE CITY OF LOS BANOS, DO HEREBY STATE THAT I HAVE EXAM!NEDTHIS FINAL MAP OF "TRACT NO: 2021·01, STONECREEK AT LOS BANOS, THE VILLAGES V • LARGE LOT FINAL MAP", AND THAT THE SUBDIVISION IS SUBSTANTIALLY THE SAME AS THAT SHOWN 00 THE VEST}NG TEIITTATJVE ILIAP APPROVED BY THE CITY PLANNING COMMISSION ON THE 18TH DAY OF JANUARY, 2022, AND THAT THIS FINAL MAP OF "TRACT NO: 2021 ·01, STONECREEK AT LOS BANOS, THE VILLAGES V - LARGE LOT FINAL MAP", COMPLIES WITH ALL REQUIREMENTS OF SAID PLANNING COMMISSION.

DATED THIS ~.f~- DAY OF b~}l..·~t:1!');1/4"' , 2023.

BY:_ ~~:f"v i .... ~ c~·::""J-m:1~ 1UITV .1. crnt.JnUI/"' l"IC\JCI nPUC"-IT r,

SURVEYOR'S STATEMENT

THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED UPON A FIELD SURVEY

MADE IN CONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THE REQUEST OF STONECREEK PROPERTIES, tN APRIL OF 2023. I HEREBY STATE

THAT THIS FINAL MAP SUBSTANTIALLY CONFORMS TO THE CONDITIONALLY APPROVED TENTATIVE MAP. I FURTHER STATE THAT ALL THE MONUMENTS SHOWN HEREON WILL BE OF THE CHARACTER AND OCCUPY THE POSITIONS INDICATED ON OR BEFORE JUNE 30TH, 2024; AND THAT SAID MONUMENTS WILL BE SUFFICIENT TO ENABLE THE SURVEY TO BE RETRACED.

M)H:eW?..,. ,2023.

BY:

CITY ENGINEER'S STATEMENT:
t HEREBY STATE THAT I HAVE EXAMINED THIS FINAL MAP OF "TRACT NO: 2021-01, STONECREEKAT LOS BANOS, THE VILLAGES V • LARGE LOT FINAL MAP", AND STATE THAT THE

SUBDIVISION AS SHOWN HEREON IS SUBSTANTIALLY THE SAME AS IT APPEARED ON THE TENTATIVE MAP,AND At,ff APPROVED ALTERATIONS THEREOF, AND THAT ALL PROVISIONS OF

THE CALIFORNIA SUBDIVISION MAP ACT ANO ANY LOCAL ORDINANCE APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE MAP, IF REQUIRED, HAVE BEEN COMPLIED WITH. ·r', ... ' ' ~~ DATEDTHIS~DAYOF ~. ~:~,!"'""·•··, \;,-•,. , 2023. 'ff/4~\...._...._'f-¥-\\l.ORN~it~ ?~J .... --rf' I~ o., ~ t BY: _,,,.-,y•"--11;,,•,-- \ ~o.C91278 j SOKNIAORNTHAN, R.C.E. 91278 r-. /._ /2 1
CITY ENGINEER \'\~}'~~~£-& 'J
~~~
CITY SURVEYOR'S STATEMENT: l HEREBY STATE THAT I HAVE EXAMINED THIS FINAL MAP OF "TRACT NO: 2021-01, STONECREEK AT LOS BANOS, THE VILLAGES V- LARGE LOT FINAL MAP~, AND I AM SATISFIED THAT THIS FINAL • MAP IS TECHNICALLY CORRECT. • •
DATED THIS --1i!::._ DAY OF .r,:r.--:-,:~1 t'# J J_ 2023.

BY: h ~;..'},--
ANNE-SOPHIE TRUONG, PLS 8998

ACTING CITY SURVEYOR
CITY CLERK'S STATEMENT:
a~·cu.Hif .. ,;/(,i~~,.
~
··''"})'
L..,,,,,N~ ~ 'l~
I, LUCILLE L. MALLONEE, CITY CLERK OF THE CITY OF LOS BANOS, STATE OF CALIFORNIA, DO HEREBY STATE THAT AT THE REC3ULARMEETINGOF THE CITY COUNCIL OF THE CITY OF LOS BANOS, STATE OF CALIFORNIA, HELD ON THIS __ DAY OF ___ ~ 2023, THE HEREIN EMBODIED FINAL MAP ENTITLED "TRACT NO: 2021-01, STONECREEK AT LOS BANOS, THE VILLAGES V - LARGE LOT FINAL MAP", WAS APPROVED AND THAT SAID CITY COUNCIL

ACCEPTED ON BEHALF OF THE PUBLIC FOO PUBLIC USE, THE OFFER OF DEDICATION IN EASEMENT OF ALL PUBLIC UTILITY EASEMENTS (P.U.E.); ACCEPTED THE OFFER OF DEDICATION

IN FEE OF PARCELS A ANO B FOR PUBLIC PARKS AND OPEN SPACE, AS SHOWN ON THIS FINAL MAP.

DATED THIS /tJ'h DAY OF :·-'-;.it\.-~_. 2023.

BY: -~t.:!?..., 'i · j,{,;--_1,.t_.•,--..._~"t
----rBiiLLE L. MALLONEE. CITY CLERK

CITY OF LOS BANOS

COUNTY RECORDER'S STATEMENT
F1LeD TH1s _ 1::2 ·, ~ DAY oF :;,:1" or,~r"-~·_:. 2023, AT ·";'.: 1~ i.o·cL cK. f_M.1N vm ~ OF OFFICIAL PLATS, AT PAGES_:___::~-~.:-{~- , AT THE REQUEST OF FIRST AMERICANTITLE COMPANY.

FEESqjo" t;....~l~•Zt:~~0\~ Ctf 11
MATT H. MAY, RECORDER
MERCED COUNTY. CALIFORNIA ( l,-,(1,
BY, ,,r ,-''J ASSlSTANTd:PU~ RECORDER
{
SHEET 1 OF 6
VOL 5J.b_ PAGE '2T(
50 NOTARY si:_ATEME!:'JT (OWNER)_

A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VE-RIFIES ONLY THE

IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ,l!:r_l.CHED, ANO NOT THE TRUTHFU~-~ESS, ACCURACY, OR VAL1D1TYOFTHAT DOCUMENT,

STATE OF CALIFORNIA
COUNTY OF l::_ i; •: ~,rr,,it•··
ON A,,.11-.:J. Jr'.. IPP. {DAT")
BEFORE~ N. rw~ ANOTARYPUBLIC,
PEASONALL Y APPEARED lf,l,~i,d AMh•.t,~'. {NAME OF SIGNER(S)) WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON{$) WHOSE NAME(S)$fit.AE-SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT f!e"9HEIJHEY EXECUTED THE SAME IN{=1b/HEAfH-IEfR-AUTHORIZED CAPACITY(IES), ANO THAT BY ,J·l~)11QIT~ SIGNATURE($) ON THE INSTRUMENT THE PERSON($), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT.

I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT.

WITNESS MY HANO.
~,.11., \....~ rt· . ........ f'-t~ 1
,'.: 1
_i:t ... ~"'· , NOT ARY PUBl\C
PAINT NAME:~· ' '!. '~'t: ft';Z'tr.~~
COMMISSION NUMBER: ~1~1..cl_,,'.',~~~I.__<~.__ _____ _
COMMISSION EXPIRES: _d.i,~•1,,i,J· :-f zr 1,:, ( DO NOT STAMP) PRINCIPAL OFFICE LOCATION (COUNTY): f . .--.11 '4-,i.?T:

NOTARY STATEMENT {OWNER)
L
- .A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONI..VTHE -lDENTITV OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ~TTACHED,AND NOT THE TAUTHFULNESSI ACCURACY, OR VALIDITY OF THAT ~UMENT.

STATE OF CALIFORNIA
COUNTYOF_(1.1;1, F:l'J'~·tr:,
ON A ·~-.;fl,:.t z;··- :." {,,; BEFOREME,_J:t•) J:: i,.i.. N-T'~Wt ~·r.-: ANOTARYPUBLIC, PE~~~~tLYAPPEARED 1-.•~:rfrv-~ th\'.(,-k(~, (NAME OF SIGNER(S))

TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE :UBSCRIBEO TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT :OUTED THE SAME IN Ei!slHEAffiiEffll AUTHORIZED CAPACITY(IES), AND THAT BY "Hem SIGNATURE(S) ON THE INSTRUMENT THE PERSON[S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT.

I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA TI---IAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT.

WITNESS MY HAND.
~;::!~,·~,-1,~--~: 1!{~ , NOTARYPUBUC
COMMISSION NUMBER: __ :._;l_l.ck]''1· _,,i ______ _
COMMISSIONEXPIRES: d,r;f·.-;t ti :'.·:·;.~ ( 00 NOT STAMP) PRINCIPAL OFFICE LOCATION (; OIJNTY): .~itr·
NOTARY STATEMENT{~
A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VEAfFfEECON LY-TR~

IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT.

STATE OF CALIFORNIA
COUNTY OF S..,1 t;(y,(t!, )
ON J\:tt:.)b:i_· ~ ),l~; BEF~REME, f,!'IM: ~~.1c',.tr;~.~ , ANOTARYPUBUC, PeJ~~~ALLY APPEARED k'•h ; w. Mk~ -,;,..1 ~ ...Jt<Jwi;1 1,1. mM~ lNAME OF SIGNER(SH TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON[S) WHOSE ltisUBSCRIBEO TO THE WITHIN INSIB!,iMENT AND ACKNOWLEDGED TOME THAT ~. EXECUTED THE SAME IN l~~~~~~~l~:UTHOAI2ED CAPACITY(IES), AND THAT BY ................. SMf!Ell,-SS\I616t,_/l,;al"bllffiRl:(S) ON THE E PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT.

I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH tS TRUE ANO CORRECT.

WITNESS MY HAND.
,.J,.'!f t f....• ~\,. ?~-~•t".'/.J_••".. , NOTARY PUBLIC PRINT NAME: !}l':•\~~- b. T~•-ft~"..r'1-".~
COMMISSION NUMBER: _J.......d.U:l'1•\
COMMISSION EXPIRES: ,4 1) d'"""1: t--L ~2-C,
PRINCIPAL OFFICE LOCATION (COUNTYI: t 1;·; l& ◄ ir
( DO NOT STAMP)
TRACT NO: 2021-01

STONECREEK AT LOS BANOS

THE VILLAGES V - LARGE LOT FINAL MAP
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OF TRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS DESCRIBED IN
DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER
2022-012213, DOCUMENT NUMBER 2003-030442 AND DOCUMENT
NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T, 10 S., R. 10 E., M.D.B.&M.

CITY OF LOS BANOS

MERCED COUNTY, CALIFORNIA
AUGUST 2023
••i•i=II I ENGlNEERlNG
1155 Scenic Drive, Suite A
Modosto,CA95350
Ph 209.571.1765 odetlengin~ring.com
RIGHT TO FARM STATEMENT·
PER MERCED COUNTY ORDINANCE NO. 1'213

THE PROPERTY DESCRIBED ON THE HEREON SHOWN MAP IS IN THE VICINITY OF LAND

UTILIZED FOR AGRICULTURAL PURPOSES ANO RESIDENTS OF THIS PROPERTY MAY BE

SUBJECT TO INCONVENIENCE OR DISCOMFORT ARISING FROM THE USE OF AGRICULTURAL

CHEMICALS, INCLUDING BUT NOT LIMITED TO, PESTICIDES ANO FERTILIZERS, ANO FROM THE PURSUIT OF AGRICULTURALOPEAAT!ONSINCLUDING, BY NOT LIMITED TO, PLOWING,

SPRAYING AND BURNING WHICH OCCASIONALLY MAY GENERATE DUST, SMOKE, NOISE, ANO ODOR.

THE COUNTY OF MERCED HAS ESTASLISHl:O AGRICULTURE AS A PRIORITY USE IN

AGRICULTURAL ZONES WHICH ARE OUTSIDE OF AN EST ABU SHED SPECIFIC URBAN DEVELOPMENT PLAN (SUDP) BOUNDARY, AURAL RESIDENTIAL CENTER {ARC) BOUNDARY.

HIGHWAY INTERCHANGE CENTER (HC) BOUNDARY. OR AGRICULTURAL SERVICE CENTER (ASC) BOIJNOARY, AND RESIDENTS OF PROPERTY IN THE VICINITY OF SUCH AGRICULTURAL

ZONES SHOULD BE PREPARED TO ACCEPT INCONVENIENCE OR DISCOMFORT FROM NORMAL, NECESSARY AGRICULTURAL OPERATIONS.

SHEET 2 OF 6
VOLjt~- PAGE4
51 Wl9RASSCAP r-~-:.~.
1 6'.TOSECTK>NCOFlNER.

I ' I (R--4)(R-8)(A·9}
,,., I ~ j CORNEA OF SECTION 21 -----------7 I /I ' }•w --------- ' I ' > ' --------._ r--------- -FD.-, •• w,.;~~~~aRNER, IL / 1 ~----- --------- I / 3Q'WC.TO - L • -----~ ~ I I / I"•"'"~ 0 - ,.,., •;,, . ' " ' '•· ·- - · I ~' I
' ' ' ''%.:;•,,,, . I ~!g I
I ~II I
' ' ' "
1755 O.R. 141 , M.C.R.

FOT ... R, .Ji\ (R-aHR-31 ii I
1r
I!
/1-SEE
TRACT NO: 2021-01

STONECREEK AT LOS BANOS

THE VILLAGES V - LARGE LOT FINAL MAP
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OFTRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS DESCRIBED IN DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER 2022-012213, DOCUMENT NUMBER 2003-030442 AND DOCUMENT NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T. 10 S., R. 10 E., M.D.B.&M. : i : f' I T '"~·eROFsccr,o,w I ;:;;j ' -- ' " ' ' ' ' , '
' I ' ' ' I ' 0 z I I
! ) I I (' \";;
I ~ ~ iij' 55 o R. 14 1, I J P~ 17 ·
I i.l ~ ~~ M.C.R.

I I "" ·~·"'"Jt.. ~~'(, I
I
I
I
I j
:t•,,
C11 ·.?e,
(M)(A-10j ts!: .,.q,
I ~ I
I
I
I
I
I
I
I
6-0•13·41·
L .. 5.2S'{M)(R·1 01
DOC. f-.10 .
2020-0217 BB.

M.C.R.

I
I
I
I l_ ____________ _ I ____________ _j

DETAIL A NOTTO SCALE

LEGEND AND ABBREVIATIONS

SUBDIVISION BOUNDARY LINE

CENTERLINE
EXfSTING-EASEMENT LiNE. -- - • - ·- - ·- - ··-

RESTRICTED ACCESS
BASIS oF BEARING-TIE LINE
AC.

FD
ACRES
FOUND
°' Li
i
ci • z"'
,l'--"' uO"'
oo I
0 "' 0
OJ
~
i
l
§
I
~
:;i
~
i
~.,
/,l',l'
~#
DOC. NO.
2020-021788,
M.C.R.

IR-10)
r 11ss
I/ DET All C
~-4 SHEET 4
L.-.
57 R.S. 11
IR--al
-&li
~i ~ ~
t
N
ll

CITY OF LOS BANOS

MERCED COUNTY, CALIFORNIA
AUGUST 2023
ELL
F N G 1 N-EER1NG
11~5';:enit:OINa,6\0lnA
~lo,CA95J50
OOEU£~NEEP.ffl.COl.4
~1 ~ ~ PA.~CEL ,WO
~ ,. -~gg:i~i:io443 ~~ ' 00
ND9"2G'31"W ~ M,C.R ' SCALE: 1· • 200'

46.84' ~ 364.61'
• N!l9°26'3{:w--1• •
'??J'' O.P. 20
PARCEL ONE . IR-7) /
DOC. NO. ~ /
sf d 2003-030443, ~-----~
~!/ M.C.R. ~ - SE[
"~1 REMAINDER----- ~ / liET/\[I B ~ PARCEL (R- ·71 !E / SHEET 4 .. 1 & DOC. NO. , l .

Z I N89"42'14"W 655 35'(MI I I
NOTES

1. THIS SU8O1VIS1ON CONTAINS A TOTAL OF 70.0!76 ACRES, MORE OR LESS.

2. ALL DISTANCES SHOWN ARE GRID DISTANCES, MUI. TIPL V GRID DISTANCES SHOWN BY 1.0000016 TO GET GROUND DISTANCES.

3. ALL DISTANCES ARE MEASURED UNLESS OTHERWISE NOTED,

4. DISTANCES AND DIMENSIONS ARE SHOWN IN FEET AND DECIMALS THEREOF.

5. ALL FOUND MONUMENTS ARE ACCEPTED UNLESSOTHEAINISE NOTED.

MONUMENT NOTES
• . FOUND l'4" IP WJPLASTIC PLUG 'FCE 2S!1St•,UNLESS OTIER\''1SE N.'.)TEO. @ F()IJMJ 3/4"1RONPIPE WI PL.ASOC PLUG "A:E29651.INwEU.PEA (Al~ ~ 2019-006439, M.C.R, r- / ._---------,
' (655.526'R-1i1 I --.-::: I
I
r --- - - - - - - - r '-'-------;~x~-- ! REFERENCED RECORD DOCUMENTS I .... -- -- -- -· 1 6 ::=--- I MERCED COUNTY RECORDS
I ~ 'f ( I (R-1) VOLUME79OFOFFICIALPLATS,PAGES26-31 M.C.A.

UM.ESS OTrlERW1SE N:ITEO.

I ~ ..... ~ . I._,_ --- I [A-2) VOLUME 109 OF PARCEL MAPS, PAGES 44·45, M.C.R. •,~ \ p; ~ ~ @---@---- I (R-JJ VOLUME 28 OF SURVEYS, PAGES 9·12, M.C.A. §: ~~ ~ 4'J-q •--"•,... I IR·41 VOLUME3OFSURVEYS,PAGE20,M.C.A.

I
~ PARCEL -rwo e~. ~..-.LO ·1, 1 1R-s1 vaLuMesgoFPARcEuAAPs.PAGEss-10,M.c.A. ~ DOC NO 0 N Gi' 1.fl 8 I, I (A-El VOLUME29OFPARCELMAPS,PAGE20,M.C.R. = ' · ~; ~ 1 1 _ _ i @ I (R•7)VOLUME78OFOFFICIALPLATS,PAGES39•4i,J.A.C.R. !r::: 2003-030442 IX !r-. ~ ~ m 0:: - I I (R·81 VOLUME57OFSURVEYS,PAGE11,M.C.R. j~ PARCEL ONE i~ i U ~ L~ !--- I :::~~)~~~~~26e~~~N~;~~~~~.sM~~~~~,J.A.C.A. i; 2022-012213, ~~~-.J L Nj I I (R-11)VESTINGDEEDDN2003-030442M.C.A.

IP
(Ml
(M-BJ
(M·M)
OP
PM
M.C.R
{R-#)
(RJ
SFN
{Tl
w.c.

W,E.

IRON PIPE•DIAME:TER NOTED
MEASURED OtSTANCE

MONUMENT TO BOUNDARY LINE

MONUMENT TO MONUMENT

OFFICIAL PLATS
/~ IR-1 t;;/R-12) ~i,: ig ~?;JjJ ! ;;~;';~o~e;::i~~;
13 McA
/
\V114COANERCFSECTION2t I w 0... U r,.. I I -'---"'-'--'------'---------- -- SS:N !ESTABLISHED AT MOPOINT) ~ • 0 _ I N8g-54'3VE BEING THE BEARING OFTliF LINE BETWEEN MERCED COUNTY I NS9"42•14-w 655.cW(M) .~ ·
0 • I \ ~;;R~~~~~~~1~=~c~~n;~oBcA~~~~
5 c~TL~~1:~~~61NATE
\ N89°42'14"W 820.36.(M) 1655.30' A•lt) i: i ------k._ 1 SYSTEM ZONE U1 NAO SJ. TO GET GROUND DISTANCES MUL T1Pl Y OR10 PARCEL MAP

MERCED COUNTY RECORDS

FIEFERENCED RECORD DOCUMENT

RADIAL BEARING
1475,45'(MJ 11476.90' A-41 (1475.94' A·51 (1475.72' A-91 - I DISTANCES SHO"''N BY 1.0000016.

N89°42'14-W 1786.i3'(M)(1786.15' A·5) I / @ ..._ ..J

SEARCHED, FOUND NOTHINO

TOTAL DISTANCE

WITNESS CORNER

WALL EASEMENT
;9...,,,.

Ali,~
-!','~· '" ~
29 P.M. 20
IR-51
r
SW CORNEA OF SECTION 20 r S 1/ot CORNER / ~J FD 1.114·1P,COUNTY OFSECTION20 ,, SECOANEROFSECTJON20 SURVEYOR TAG, (A 2) A> 314" IP / FD3" MERCED COUNTY BRASS DISK -- ~65~~~1 _ .TAGIILEG,{A,'., / 265495'(MJIR·2J ½ llNBRIDGE(A•lJIA·S) PIONEER ROAD @.::;:: NB9"3133"W 530986(M~ ~ V- --y-- - - ----- - ~•--·-- - --·-- -· --- - - ----- - A-- -- --- -------- GPS STATION 1023 83!1D37.727
FD~ DISK, ACE 15310 Eir6447400.846
PER{A-3)
FD2"1P.LS2402.(A"6)-~----------- ---...J ----
f1-1/4"1P,{R-4)1 • ..,,V~"J,~)1,
<e':f?Z_ GPS STATION 1024
FD 2" DISK. ACE 15310
Ns9•sa·10'':__2670.54'(M~R-t)~·5_J ---
..._ PER (A·3)
S1/4CORNEROFSECTtOri2~ _ N-1838047.846
~~~:N~~~:~:·1)(R·S) ~ ._ ---- 6453911.666
- ---- --- --- -- - - - :=:._ =- ---~ "N89-s4'39"E 6510.83' IA·2)(R-3J BASIS OF BEARINGS --v"- - SHEET 3 OF 6
c· '...}. VOL 2_f,_ , PAGEv~:
52 FD3/ 'IP ,-­
TAG It.LEG. (R-8)
S6J' 9'31"E0.26'

FROM CORNER
I_ d0'~3IRJ FOJJ4"1!'G, (A-BJ 1 TAGILLE · C? •• • S29"54'31"E 0.40' (A)
'• • <.._..j_ FROM CORNER
~ ll 0"01'1 ◄" ----------- - ---------------------
i
' ,-
i , ... I" !' - ~
if[
!.i' ,f ?E:° ~
i~ i
~t ~ ~;; ~ -p ~
~~ ~
~
~
L. 0.22'{B•M)
50' \Jill[

ACCESS EASEMENT
PER D.N. 2'021-050980
..-FDJ/4"1P,ACE29851 _..
/
, INMONUMENTWELL,(R·I) _ -----
- ---- cl\EE\Z ·'f' --- s1ollE p,O
II eouLE~" _...---
------ - r ~rf ~ \ ii~ f :i ,~ ~ ~ \
g& i ~ I\ ~ I ~ ~ "'---------- F03/4"1P,RCE291l5l-._......._...... i ~ ca ·-®, - - ;.~UMENTWELL, ......._ ~ • ·--·--··\{ B(R) \;·"" C9 -·~ ' ~ . --+--- - LL\010 -::::1..:. . --· 0 I j~ 7{R) ~ \ ~ C10 ~!z L \G ;~
PARCEL C I R-5) &
DOC. NO.
201 9-006433,
M.C.R.
~
i ;;;-b
~- ~ g; ~
~~
es
i~ _z
172 , ~~;:-
\ ~~~
I ·1111
~"
17 1
170 _i
I 159
" I
cc ~ ruJ- ::,:~
168 "'
' ·
-
1157
i
::i
~
I
I
®-
i;h
ir~~
I "' ·1 '° ~ l !;. ~
~ r sf : ~ ~~
I ~~ .... "di! NB9"22'0D"W q ~
/
FD<!"IP,LS2402(R8) 101.00'(M)( ·1, -5 ) ~~ ,;-
t fl 114"1P(R-4)J FO:!J 'IP,LS 071{R•5J \ M ~
CORNER 2 gJ ~
~ N1 7°0Z51"E0.1i' FflOM :; g \8d
• oo· 1 w1-
______ ----,,N,"',"·•"2·1"•·"'w","'1:coe"',"'1M"'J1N"'•"•"'·•"'2·,"',"'w"","'10""2""1·"'R"·S,-J--/-r·· I ~; II ~! ¥--3~ DETAIL B FROM SHEET 3 NOTTO SCALE
LINE ANO CURVE TABLES FOR SHEETS 3 & 4 Ohl. V TRACT NO: 2021-01

STONECREEK AT LOS BANOS RADIAL SEARINGS
LINE# DIRECTION
1lRI s22°2 01~
2(RJ N29"05'31"E
3(R) N16°58'23"E
'4(R) N20"44'02"E
S(R) N19"'02'01 "E
6(R) S22"'10'20"W
7(R) N0"38'04"E
O(R) NS"59'3&"W
9(A) N3°32'45-W
10(R) N4°1r2s·w

CURVE TABLE LINE TABLE
CURVE# I RADIUS ] DELTA I LENGTH llNE• DIRECTION LENGTH THE VILLAGES V - LARGE LOT FINAL MAP Cl s3o.oo· I 6°s3•s2· I 6J.s1· c, 530.00' I .112°00•53• I 388.es·
c, s3o.oo- I 48"54'46" 1 452.45•
C4 570.00' I e•31·s3• I ss.e1·
cs e3o.oo l 9•22·3s• I 103.10'
c, 410.00· I s-s9•33• I 377.28'
550J)0' t•45•3e• 16.QO'
777.50' g-JO'OZ" 128.92'
eo3.so· I 6"3740- 92_9,4•

41.11.00 I 1~0-s2" I s.39'
11ss.scr I o-•rse· I 16.56'
500.00' 9°29'58" 82.90'
570,00' 4°58'03' 49. 2'
570.00' 3"39'50" 36. ◄ 5'
C15 630.00' 5°06'43" 56.21'
C16 630.00' 4°15'53" 46.69'
L1
L2
L3
L4
LS
" L7
LS
L9
L10
Lil
L12
L1 3
L14
N1"01'12"E
N1 °01'12"E
s 1°01·12·w
S77°04'38"W
N3"29'37"E
N3"'29'3rE
S77"04'38-W

69.29'
164.12'
233.41'
233.14'

60.50'

60.85'
233.1 ◄'
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OF TRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS OESCRIBEO IN DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER 2022-012213. DOCUMENT NUMBER 2003-030442 AND DOCUMENT NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T. 10 S., R. 10 E., M.D,B.&M.

CITY OF LOS BANOS
MERCED COUNTY. CALIFORNIA
AUGUST 2023
(N01'01'00"E 52.6:l)(R-7)
--,1>--__ -<I (N52"25"Sr'W 20.68,l(R·S}
N1"02"19"E 52.83"
N52"31' 11"W I 20.br
,~1.38){A·5) □ ELL
··- I ----· IN82"08' 7"E76 7)(R-51
N8"'51°5WW 1 1.Ja·
N8roo'S<1 t: I rc.oo
N'41~3'26"E J0.29' (N41"23'20"E 30.3D)(R-5)
$!1"51'5!1"E 41.33'
(NOOc:37'53"E 50.47)(R-5)
--+---; N0-:38'00"E 50.73'
€NGlN€€RlNG
11e&ScerkQri,,,,,Sull:eA
MO<MIIO,Cit..95350
OOElLENGINEERING.COM
us I S5"39'01 "W 1 79.22'
I\
~
i
i
~ w
'-
N
~ ~~....;:_~20
SCALE: 1' • 60'

PARCEL ONE
I
. I
El
f DOC, r:o. 2003-030443, M.C .R.

I
,
I
I
PARCEL lWD
DOC. NO.
2003-030443,
M.C.R.

C1B
9(A)
'.S
I
i
I I

I NOT A PART
1755 O.P. . 141 ,
I
~1 M.C.li'.

I C13
/ 10(R)
I PARCEL lWO
DOC. NO.
2003 - 03044 3, M.C.R.

DETAIL C FROM SHEET 3 NOT TO SCALE
i
I
I
z

MONUMENT NOTES
FOUtJ0 314" !P W@LASTIC PLUG "ACE 29851", Ul'l.ESS Oll1ERWISE NOTEO. @ F0UNOl/4•IAON PIPE WI PLASTIC PLUG "RCE29B51" IN WELL PER (RI), UNLESS OTHERWISE NO TEO.

SHEET 4 OF 6
VOL%., __ ' PAGE .,l L
53 16{A)
,---
w
z
::;
z
0 ~
°' u
i
ci • z"' "' u::::

ON
oo I
0 N
0 o;
r
I
,r ,:,:
~
i;l
a -~f • ~ ~
~ a
a
~-
f,
er 0:
~, r;
~
l1 I~
:::
;
5 :;;
1 0
o,
\}
PARCEL F 6.615 AC
22(Al
231.09'
I
N N88"35'08"E 68.18,
,j,~"'- N45•5g34•E 77.67---.__ /~o I RESTRICTED ACCESS PER 11 $-;;i;::_'1, _7 ~ l7S5 DR 141, MCR
,.,. oSe? WO .. ,-30-,.~ '
li:e6"53 s2·~ P """ Ni'<o r
1 75 150
SCALE: 1"a 150"
14IR~ J •s~ A.s,o 00 E~~ 00 0
I <lfs..,. L.eo.a1 i~ "' PARCEL E '•sew / ;:: r:- - 12(RI 3206 AC J3s 2o ;;-/J ;::., 1? oo.es-1 ~ ~ ,o, • '••s ~ • ., c\5 'I
9 PARCEL C j ... /\--''l ,~•a,.°,~0
, """"''~a-?\_ J 1401 AC/~ •s,, d ~o;:;.:,-- 6050--'1 10(R) •
0 ---- 13(R) i:f Oo ••a 5 _
0 --. o _/;; \c .<? '•• ,3 l•388.6S' o~ C1'f 9(AI
" \~ ~ '••· '·"'·"'' "" E
r $!! o~o ct 1
~ c, ~ lsEEOETAILA • ;,, iii ~ 57 R.S. 11
IR-8I
<> o , THIS SHEET ~ w
; ~ ~ ~~ ,l 19(RI ~ f
,!fr c,,~ li
PARCELJ "

9.B29 AC
$',
fl' .~
.:J: .... .
~ · $,
.5,'
,
' ( L46f ,v4
,P/ ~'/T)
C16
.(q
c.

PARCEL D

10.832 A.C /io
FD 1-1/2" IP, NO TAG. (A-8)---/ J IH/4"1P,(R•4)]

16.00'(M-M)
FD 314'"1P. NO TAG,
["LS4071"(R·8)] \
N89"26'31"W 364.61'(T) \ \
313.GO'(M-M) -·~1 ,.

L35,01'
78 D.P. 20) IR-7)
$
!5i
!J
~;
E1
;f
-"ff ~,
':j'
'.l
i'J
':I
?i
PARCEL K 15215 AC
520.00'
----;:r09°42•14•w 11es.13'(T)
(
,
"' .
✓
;
.:;
~r
i
~
'j
j
1 50' \JlDE

ACCESS EASEMENT
PER. D,N 20.21-050980 /
8(A) .. ,,.-··/
;;;;; --7-s{R)- ~1·~ /
';.oo·~ --- -eoU~~~~? ./ r_____....-~·
( N00°38'00"E
N00"3800"E~ ~I \ 203 SQ'(T)(M)(R-1)
153f-O •~--~~-:::J.~__:.

SEEOETA11.B----- I @------~-) ~-
THISSHEET ~ @ {I

PARCELL
1J.J98AC
PARCELBI ,.,--, ,J ii 2,614SF r::...__ ----- ....LI
-- - le> I
~ -~ 7 I 1 ~ • g i"'J i:::
~ -ib 2-! :. ',ll N I I~;
8 ":le°'" 1::l· SEEDETAILC\ til - , 8 THIS SHEET 8 (l) _ z g
F02"1P,LS2402,(R·B) \PARCEL A...... z t--, 11 ' [1-114"1P,(R-4)1 !0836 S.~_~\... -==--1i Na9•42'14'W 64800 --..._\ Ill 54832' 996B+'i _____ I
29 PM 2DIR-6J •--' L _______ I ...!J
300
DETAIL A Nof"i'oscALE r------7
TRACT NO: 2021-01

STONECREEK AT LOS BANOS
~ I

I THE VILLAGES V - LARGE LOT FINAL MAP
I o I I / ;-,."'- I
'/ ~6'A"c, I
: ll.... _______ ~ ..J
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OF TRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS DESCRIBED IN
DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER
2022-012213, DOCUMENT NUMBER 2003-030442 AND DOCUMENT
NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T. 10 S., R.10 E., M.D.B.&M.

CITY OF LOS BANOS

MERCED COUNTY, CALIFORNIA
AUGUST2D23
ELL
ENGlNEERlNG
1165Scer.'cOrlve,S1111eA
M«ll-31o.C-"i9S:!SO
ODEU.ENGINEERING.COM
NOTES ___________ _

1. SEE SHEET 6 FOR LINE AND CURVE TABLES.

2. SEE SHEET 3 FOR ABBREVIATIONS, BASIS OF BEARINGS, LEGEND AND REFERENCES.

2. ALL DISTANCES SHOWN ARE GRID DISTANCES, MULTIPLY GRID DISTANCES SHOWN BY 1.0000016 TO GET GROUND DISTANCES.

3. ALL DISTANCES ARE MEASURED UNLESS OTHERWISE NOTED.

4. \STANCES AND DIMENSIONS ARE SHOWN IN FEET AND DECIMALS Tl-1EREOF.

5. THE TEMPORARY ACCESS EASEMENTS OVER LOTS HAND I ARE FOR THE BENEFIT OF THE LOTS CREATED BY THIS MAP UNTIL SUCH TIME THESE LOTS ARE DEDICATED TO THE CITY AS PUBLIC RIGHTS-OF-WAY.

MONUMENT NOTES
SET 3/4" x 24"1AON PIPE WI PLASTIC PLUG "PLS 7788" FOR UNPAVED AREAS OR 1.17' BRASS DISK STAMPED "PLS 7788" FOR CONCRETE AREAS.

FOUND 3W IP WIPLASTIC PLUG "RCE 29851", UNLESS OTHERWISE NOTED. 0 FOUND 314" IRON PIPE WI PLASTIC PLUG "ACE 29851" IN WELL PEA (R 1 ), UNLESS OTHERWISE NOTED. i - 0 ~rN004 38'00"E 2:.50•1~'"--------··-;:-;;i,LE •" - 7 I , ; h.i 177.50'(M-MJ(M)(F.l-1) l'tl=- :'/ ---l
I - - <IRI ~ - I I FD3/4"1P,---- / R-777~~ -~® Ne·s1'5a"W(R) I I RCE29851 IN 1®~9 ~Jo•Q?L.::12s.9i-t"M·M r41.33'(M) --J I MONUMENT WELL, q 2(R) 3(R) ....., N8"52'05"W· - I (R-1) / C1{T} '_, ( 41.35'(R·1) I 0 C3 X I I
I
I 1
1RI c, I PARCELS "? •\ \ I ~ 2,614s.r __5!-o ~ 1 I I o~ \ 0 :01; I I ~ , o ll) -:;. , I I PARCELL 0 /,J FD314"1P,ACE 1 8.; ~ 1 I
I I t _ MONUMENT 29651/N WELL, "Jl~:i, c: <l ~ \ I
:J ,~-'-----~~--1 --,,~: ,,_,,__. r • -1 I IR-11 I- , 1 I O 11000· 0 101.00 ai '. I
: w,- N89"22'00"W 211.oo'(T) ~ ~ ~, I 8 fJJ ~ f,:: I~ z ; I I ::-: ~ PARCEL A ~ 8 ..,. i ~ • I 1 ~ "' 10,836 S.F. i ~ ~ 1~ ~ I :

L--o NS9°42'14"W 211.00' r r"J 8 I I N89P4214'W 178613(1 g 8 C ) FD 3/4" IP, LS 4071 (R-5)-- z Z I /
N17"02'51"E0 18 FROM I I CORNER I
FD 3/4" IP, ACE 29851 \ ii I
~~-~)ONUMENT WELL, f.,, I :

L--------------------------~-------~

DETAIL B NOTTO SCALE

DETAILC

NOTTO SCALE
SHEET 5 OF 6
VOLji1.__, PAGE lZ.~-
54 LINE TABLE
~
! LINE TABLE LINE TABLE I E #-- DIRECTION L~N; - - - , LINE # I DIRECTION LENGTH LINE# DIRECTION LENGTH - L1 I N52Q31'11"W 20.67' L21 N0"3El'00"E 195.00' L41 N34•S0'37"E -49.60' L2 ~ 8°51'58"W 1.38' L22 N9"34'58-W 52.78' L42 N38°42'37"E 49.60' L3 Ne2·oa'S4"E 76.88' L23 N0'"1T46"E 110.00' L43 N40"23'36"E 72.04' L4 N41°23'26"E 30.29' -L24 N0°17'46"E 110.00' L44 N40"2707"E 52.00' --- f----
LS ND"38'00"E 51.11' L25 N3"02'08"W 52.09' L45 N43"03'16"E 110.00' LS N24°46'09"W 67.03' L26 N1 "59'46"W 225.18' L4G N46"56'44"W- 2.37' - L7 N66"51'21"W 74.03' L27 N0°05'05"E 50.54' L47 N46°56'44"W 48.82' - L8 N46°56'44"W 51.19' L28 1 N0°30'26"E 50.54' L48 N46"56'44"W 51.18' L9 N1"02'19"E 52.83' L29 N0"48'32"E 60.54' L49 N66°51'21"W 66.20' L10 N38"07'30"W 41.05' L30 N1°57'1fE 50.06' L50 N69"4B'53''E 69.B9' L11 N46°22'04"E 110.51' L31 N4°27'54"E 49,94' L51 N1"01'10"E 109.40' L12 N38"07'30"W 33.40' L32 N6°33'31"E 59.92' L52 N1 "01'10"E 109,40' -
L13 N51°52'30'E 52.00' L33 N9°30'51"E 49.97' L53 N89"42'14"W 73.45' L14 N24°56'15"E 125.35' L34 N12"08'12"E 59.85'
L15 N15°57'02"E 59.15' L35 N14°33'54"E 49.96'
L16 N11°11'09"E 49.26' L36 N17°2B'21"E 59.84'
L17 N6•4S'31"E 51.48' L37 N20•S3'37"E 49.93' ,_
L18 N2°00'00"E 58.89' L38 N23"26'50"E 59.77'
L19 N0"17'46"E 120.00' L39 N26"21'06"E 49.59'
L20 N2~22'15"W 50.05' L40 N30°35'39"E s, . .,. I

I RADIAL BEARINGS RADIAL BEARINGS
LINE# DIRECTION LINE# DIRECTION
1(A) No•3a•o4•E 16(R) N22"24'Dl"E
' 2(R) N0"26'09"W 17(R) NS7°53'12"W
:J<R) N5°59'36"W 18{A) N57"53'12"W
4(R) N0'"38'04"E 19(A) N65":l0'53"W
S(A) N0"37'51"E 20(A) N43"15'31"E
B(A) . N19"02'01"E 21(R) N40"26'38"E
7(A) N20"44'02"E 22(R) N7r04'05"E
O{A) N18°58'23"E 23(A) N77°44'27"E
9(R) N4"17'29"W
1D!A) N3"32'45"W
- 11(R) N29"05'31"E
12(R) N33. 04'11"E
13(R) N12•40•5rw
14(R) N83°09'02"W
15(R} N85"21'30"W
~

CURVE TABLE
CURVE# RADIUS DELTA LENGTH I C1 803,50' 6°37'40" 92.94' C2 803.50' j 1°04'13" "·"· I C3 803.50' 5"33'26" 77.93' C4 474.00' 1"00'52" 8.39'
cs 1551.00' 10"27'05" 282.92'
CB 858,00' 4"09'24" 61.67'
C7 05(1.00· 15°45'13" 233.11· I
CB 850.00' 19"54'37" 295.37'
c, 1250.00' 8"49'14" 192.44'
C10 I 550.00' 32°54'08" 315.84'
C11 550.00' 1°45'39" 16.90'
C12 550.00' 31"08'28" 298.93'
C\3 600.00' 18°24'10" 192.71'
C14 570.00' a•31•s3~ 85.87'
- C15 630.00' 9"22'36~ 103.10'
- - >-- C16 640,00' 2"4'8'53" 31-44'
C17 1150.00' --- 8"49'14" 177.04'
C10 750,00' 19°54'37" 260.62'
C19 1s51.oo· I r10•04• 194.03'
C20 1551.00' l 7"37'41" 206.49'
TRACT NO: 2021-01

STONECREEK AT LOS BANOS

THE VILLAGES V - LARGE LOT FINAL MAP
BEING A SUBDIVISION OF PARCEL C OF MS 2004-02 VOLUME 99 PM, PAGES 9-10, THE REMAINDER PARCEL OF TRACT NO. 2006-12 VOLUME 78 OP, PAGES 39-41, AND THE LANDS DESCRIBED IN
DOCUMENT NUMBER 2020-021788, DOCUMENT NUMBER
2022-012213, DOCUMENT NUMBER 2003-030442 AND DOCUMENT
NUMBER 2003-030443,
LYING IN A PORTION OF SECTION 21, T. 10 S., R. 10 E., M.D.B.&M.

CURVE#
C21
C22

CITY OF LOS BANOS

MERCED COUNTY, CALIFORNIA
AUGUST 2023
...,. ELL
NGlNEERlNG
111158ci,nk: Drive, Suiti, A
Modesto,CA~J50
ODELLENOINEERING.COM

CURVE TABLE

RADIUS DELTA LENGTH
-- 1549,00' 0"25'37" 11.54'
1196.50' 0°4758" 16.56'
SHEET 6 OF 6
VOL _f~ , PAGE "s.J
55 Cl.
<C
~
LLJ
tVl
..
f
.... _____ ........ ..:::::--7~11t,"li;;_n:<44-
·•···---........... ....... ········-· ............ ... .............. -·- w..-.. .. -,., ......... . •••••·· ............... Cites .. SC - , .... ........................ •••Ml ... f a ea., ...... ,, 12 1 ...... ,., . ..,
-- ~ ,
# .., .
.................. _., __ ==~== ..." ...... .. .._ a ..... . .. ......... ~
.:.. .,•. ·~-:.:.:,.. ............... ' .. ... .. t fl l 11 •
56 TO:

FROM:

DATE:

LOsBanos , c, ,, ad ,
Agenda Staff Report
Mayor and Council Members
Paul Tualla, Fire Chief "P7
May 21 , 2025
SUBJECT: State Mandated Fire Inspection Report. (SB 1205) TYPE OF REPORT: Consent Agenda
Recommendation:

It is recommended that the City Council approve the report on all State mandated fire and life safety inspections in the City of Los Banos in accordance with California Senate Bill No. 1205 Section 13146.4 of the California Health and Safety Code.

Background:

On September 27, 2018, California Senate Bill 1205 (SB 1205) went into effect, introducing a new section to the California Health and Safety Code that impacts all fire departments and fire districts across the state. Under existing law, fire departments and districts providing fire protection services are required to conduct annual inspections of all buildings used as public or private schools, as well as hotels, motels, lodging houses, and apartment houses.

With the enactment of SB 1205, the California Health and Safety Code was amended to include Section 13146.4. This addition mandates that all fire departments responsible for conducting annual inspections under Sections 13146.2 and 13146.3 must submit an annual compliance report to their administrative authority, confirming adherence to these inspection requirements.

ITEM 7G
57 Discussion:

Each year, the City of Los Banos Fire Department is responsible for inspecting all public and private schools, as well as hotels, motels, lodging houses, and apartment/condominium buildings, in accordance with California Health and Safety Code Sections 13146.2 and 13146.3. The primary goal of these inspections is to identify and mitigate potential hazards, reduce risks to the community, and ensure compliance with the California Fire Code.

Under California Health and Safety Code Section 13146.2, local fire departments are required to conduct annual inspections of all hotels, motels, and apartment/condominium buildings with three or more units. During Fiscal Year (FY) 2024-2025, the Fire Department inspected 26 out of the 43 properties within its jurisdiction. The remaining inspections, primarily for apartment buildings, they are in the process of being scheduled for inspections and should be completed by July 2025.

Similarly, Section 13146.3 mandates yearly inspections of both public and private schools. In FY 2024-2025, the Fire Department successfully completed inspections for all 22 school facilities.

In total, the Fire Department conducted 42 out of the 56 required inspections for FY 2024-2025, achieving a completion rate of 75%. This figure does not account for re-inspections, which are performed by CRRD staff to address any deficiencies identified during the initial inspections.

Acceptance of this compliance report confirms that the Fire Department has fulfilled the statutory obligations outlined in California Health and Safety Code Sections 13146.2, 13146.3, and 13146.4, as amended by SB 1205.

Fiscal Impact:

None.

Reviewed by:

MinervafMoreno Finance Director
Attachments:

Resolution
c'JJi:;;m City Manager
58 RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS ACCEPTING THE FIRE

DEPARTMENT MANDATED INSPECTION
REPORT PURSUANT TO 13146.4 OF THE

CALIFORNIA HEAL TH AND SAFETY CODE
WHEREAS, on September 27, 2018, the Governor of the State of California signed Senate Bill #1205
WHEREAS, SB 1205 mandates that every city fire department shall report annually, to its administering authority, its compliance with the Health and Safety Code, sections 13146.2 and 13146.3; and,
WHEREAS, the bill states that the report shall occur when the administering authority discusses its annual budget, or at another time determined by the administering authority; and, NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Los Banos that the adoption of this resolution fulfills the statutory requirements contained in the California Health and Safety Code, sections 13146.2 and 13146.3 and 13146.4, as amended by CA SB 1205.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21 st day of May 2025, by Council Member ___ who moved its adoption, which motion was duly seconded by Council Member ___ and the Resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

ATTEST: Michael Amabile, Mayor
Lucille L. Mallonee, City Clerk
Staff Report- S81205 Resolution (05-21-25).doc
59 THIS PAGE IS INTENTIONALLY LEFT BLANK
60 1
LOsBanos
At tlie Crossroads of California
Agenda Staff Report
TO: Mayor and City Council Members
FROM: Charles Bergson, P.E., Public Works Director/City En DATE: May 21, 2025
TYPE OF REPORT: Consent Agenda Item
SUBJECT: Approving the Phase 2 Memorandum of Understanding with Grassland Water District regarding cooperative efforts to implement the Basins and Storm Water Capture Project
Recommendation:

That the City Council adopt the Resolution authorizing the Interim City Manager, or Designated Agent to execute the Phase 2 Memorandum of Understanding (MOU-2) with Grassland Water District outlining cooperative efforts to implement the Basins and Storm Water Capture Project on City property east of the San Luis Canal.

Background:

On July 6, 2022, City Council adopted an amendment to the Groundwater Sustainability Plan (GSP) for the Delta Mendota Sub basin to address comments received form the California Department of Water Resources. In addition to reductions in groundwater pumping, the City's GSP plan identifies stormwater capture and recharge as an important component to stabilizing groundwater levels.

Currently, the City contracts with the Central California Irrigation District (CCID) and Grassland Water District (GWD) to convey and dispose of upwards of 437 cubic feet per second of City stormwater. The main conveyances are the CCID Main Canal, and GWD San Luis and Santa Fe Canals.

In late 2022, GWD received a $1,000,000 Proposition 68, Sustainable Groundwater Management Implementation Grant through the Delta-Mendota Subbasin. The intent of this grant is to improve and enhance water and stormwater conveyance and control structures for groundwater recharge, and to enhance water management for improved habitat management in the spring and summer months. In July 2023 the City Council 61 ITEM 7H
adopted Resolution No. 6664 approving the Phase 1 MOU initiating a partnership with GWD to develop a project that would be mutually beneficial to both parties. The identified benefits of the project include: Increased stormwater capture capacity; Increased resiliency for flood protection; Increased groundwater recharge capacity; Improve groundwater quality; and Create wildlife refuge water supply flexibility.

Discussion:

Pursuant to the Prop 68 grant and previous Council action, the City and GWD have worked together to develop a water and stormwater project to improve both parties' water and stormwater management operations. The proposed project would be located between GWD's Santa Fe and San Luis Canals on approximately 160 owned by the City as shown on Attachment 1 .

The City contracted with Provost and Pritchard to prepare design plans and assist in the environmental review process. Plans have been prepared to the 60% design level, the CEQA process has been completed and a Notice of Determination filed with the County of Merced and the State Office of Planning and Clearing House.

As the proejct moves closer bidding for construction it is desirable to enter into a Phase 2 MOU with GWD outlinning the copperative efforts the parties will undertake to construct the Basin Proejct and develop backbone parameters for maintenace and operation of the Basin project once constructed. Construction of the Basin Project is expected to begin later this summer and completed by early next year.

The recommended Resolution authorizes the Interim City Manager or Designated Agent to execute the Phase 2 MOU in substantial conformance with Exhibit A of the Resolution.

This agreement has been reviewed and approved by the City Attorney.

Fiscal Impact:

The total cost of the project is estimated to be $3,000,000. GWD has agreed to use their Prop 68 grant proceeds for construction. The City has budgeted $3,000,000 in FY 24/25 budget under the NE Recharge/Detention Basin Project No. 25WC0001 (account 502-432-100-739) to cover the total estimated cost and will seek quarterly reimbursements totaling $1,000,000 from GWD during construction, as referenced in Phase 2 MOU.

Reviewed by:
6 '
Gary Br~ m City Manager Miii~~e Director
Attachments:
62 Resolution
Attachment 1, Location Map
Exhibit A, Phase 2 Memorandum of Understanding
63 THIS PAGE IS INTENTIONALLY LEFT BLANK
64 RESOLUTION NO. -----

RESOLUTION APPROVING MEMORANDUM OF

UNDERSTANDING BETWEEN THE CITY OF LOS

BANOS AND THE GRASSLAND WATER DISTRICT

REGARDING COOPERATIVE EFFORTS TO

IMPLEMENT THE RECHARGE BASINS AND STORM

WATER CAPTURE PROJECT
WHEREAS, In September 2014, the California Legislature enacted the Sustainable Groundwater Management Act (SGMA), which established a statewide framework for sustainable management of groundwater resources; WHEREAS, SGMA requires all groundwater subbasins designated as high- or medium-priority by the California Department of Water Resources (DWR) to manage groundwater in a sustainable manner;
WHEREAS, the Delta-Mendota Subbasin (Basin Number 5-22.07, DWR Bulletin 118) within the San Joaquin Valley Groundwater Basin, has been designated as a highpriority, critically overdrafted basin by DWR; WHEREAS, the Grassland Water District (GWD), in conjunction with the Grassland Groundwater Sustainability Agency (GGSA) and the City of Los Banos (CITY) in conjunction with the Los Banos Groundwater Sustainability Agency (LBGSA), have developed a project that includes the construction of detention basins (Project) for water and storm water capture on approximately 160-acres of City owned property located between the San Luis and Santa Fe Canals;
WHEREAS, GWD has received Proposition 68, Sustainable Groundwater Management Implementation Grant, Round 1 funding through the Delta-Mendota Subbasin award in the amount of $1,000,000.00; and
WHEREAS, The City has included $3,000,000 in its 2024/25 CIP Budget for the design and construction of the Project;
WHEREAS, the potential benefits of the Project are storm water capture, flood protection, groundwater recharge, wildlife refuge water supply flexibility, and groundwater quality and quantity improvements for the City of Los Banos; and WHEREAS, the parties wish to enter into a Phase 2 MOU to memorialize the parties' intent and expectations relative to cooperative efforts to implement and construct the Recharge Basins and Storm Water Capture Project and develop initial parameters for operation and maintenance responsibilities once the Project is constructed for the mutual benefit of the City and GWD.

NOW THEREFORE, The City Council of The City of Los Banos Does Hereby Find, Determine, And Resolve As Follows:
65 SECTION 1. The foregoing recitals are true and correct and are incorporated by reference herein.

SECTION 2. The City Council hereby approves and adopts the Memorandum of Understanding - Phase 2, Recharge Basins and Storm Water Capture Project, in substantial conformance with Exhibit "A" attached thereto, and authorizes the Interim City Manager or Designated Agent to execute the same on behalf of the City.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21 st day of May 2025, by City Council Member _______ , who moved its adoption, which motion was duly seconded by City Council Member _____ _, and the Resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
66 Attachment 1
Basin and Recharge Project Location
67 EXHIBIT A

MEMORANDUM OF UNDERSTANDING, BETWEEN THE CITY OF

LOS BANOS AND GRASSLAND WATER DISTRICT

REGARDING COOPERATIVE EFFORTS TO IMPLEMENT THE

BASINS AND STORM WATER CAPTURE PROJECT
This Phase 2 Memorandum of Understanding ("MOU-2") between the City of Los Banos, a general law city in Merced County, California ("City") and Grassland Water District, a California Water District ("GWD") ( collectively the "Cooperating Agencies") sets forth the terms on which the Cooperating Agencies will pursue the planning, construction, and operation of the City of Los Banos Basins and Storm Water Capture Project.

RECITALS
WHEREAS, the City is partnering with GWD on the proposed City of Los Banos Basins and Storm Water Capture Project ("Project") to provide storm water capture, flood protection, groundwater recharge, groundwater quality and quantity improvements, and improvements to GWD's refuge water supply; and WHEREAS, the Project involves the planning, construction, and operation of 160 acres of multi-celled detention basins to store a maximum of approximately 500 acrefeet ("AF"), recharge groundwater at an estimated rate of 1.4 AF per day, and reduce on-site groundwater demand by approximately 800 AF per year; and WHEREAS, in order to advance the Project in cooperation with each other, the City has undertaken planning and permitting for the Project, including but not limited to the preparation and adoption of a Mitigated Negative Declaration ("MND") under the California Environmental Quality Act, which GWD also has adopted as a cooperating agency, and GWD has secured funding for the Project through a Proposition 68 Sustainable Groundwater Management Act Implementation Grant (Grant No. 4600014644) from the State of California; and
WHEREAS, the City and GWD desire to work cooperatively to seek regulatory approvals, secure funding for the Project, proceed with Project construction, and operate the Project for the life of the Project facilities.

TERMS

1. Project Planning. The City has and will continue to take the lead on Project planning efforts, including but not limited to CEQA compliance, permitting, and facility design.
a) Project planning has and will continue to be funded by the City. The City's investments in Project planning will be reported as a local cost share under any future Project grants or funding agreements. 1 68
b) The City and GWD have and will continue to cooperate on Project planning activities, by sharing and reviewing permitting and design documents as they are developed, and contributing available staff and consultant resources as needed.

2. Project Construction. The City will take the lead on Project construction, including but not limited to Project contracting and construction oversight, which is expected to take 9 to 12 months, and may occur over a two-year period. a) Project construction will be partially funded by a State of California Proposition 68 grant (Grant No. 4600014644) for $1 million secured by GWD. This grant is administered by the Del Puerto Water District (DPWD) as the grant recipient for the Delta-Mendota Groundwater Subbasin. The City agrees to cooperate with GWD in spending the grant funding on Project construction activities before the deadline established under the grant (April 2026) and also agrees to submit quarterly invoices for reimbursement in a timely manner to DPWD and its consultant, Woodard & Curran.
b) The parties will cooperate to identify additional local, state, and/or federal sources of funding for the remaining Project construction costs, estimated to be $3,000,000. Project construction costs not covered by grants or outside funding agreements will be paid by the City.
c) The City and GWD will cooperate on Project construction activities, including but not limited to site access, Project bidding and contracting, and contributing available staff and consultant resources as needed. d) Construction is expected to be phased, first with earthwork and initial construction of the Project basin levees and water return structures, then with installation of Project lift pump(s), monitoring wells, and related structures. However, the Cooperating Agencies will meet and confer regarding an alternative sequence of construction if the need arises due to funding or operational considerations. One alternative sequence of construction may include partial construction of one or more Project basins and a water return structure in the northern Project basin, to receive Project benefits sooner.
e) Upon completion of construction, the Project facilities will be owned by the City.

3. Project Operations. The City will take the lead on Project operations but in close coordination with GWD. The Cooperating Parties agree to operate the Project as 2 69
generally described in the Project's Environmental AssessmenUlnitial Study, and to maximize Project operations to benefit both the City and GWD. a) Water used in Project operations will be provided by the Cooperating Agencies from stormwater sources and excess flows as they are available and at no cost.
b) The City will be responsible for Project operations, maintenance, monitoring and repairs ("OMM&R"), including electrical power. c) Operation of the Project's lift pump in the San Luis Canal will require advance notice and coordination with GWD's
Watermaster, or his designated representative. GWD will notify the City of the availability, duration and flow rate of excess water in the San Luis Canal that can be recaptured by the lift pump station.
d) Approval for OMM&R funding by a third party, if desired by either of the Cooperating Agencies, will not be unreasonably withheld. e) The Cooperating Parties will meet and confer regarding responsibilities for current and future extraordinary OMM&R costs if they arise and will work together to address any extraordinary OMM&R needs. GWD will notify City of schedule of water transfer in and out of the Basins and Stormwater Capture Project. f) Operation of the release structure will require advance notice and coordination with the City. Releases of water from the Project will be at the discretion of GWD, subject to a minimum water "leave behind" for continued groundwater recharge benefits; or stormwater storage if requested by the City. GWD will notify the City when available downstream demand can be met, or the availability of canal capacity, and will specify the flow rate to inform the operation of the basin release structure.
g) All on-site groundwater recharge benefits associated with Project operations will be credited to the City of Los Banos Groundwater Sustainability Agency under the Sustainable Groundwater Management Act.
h) Any City stormwater runoff that is utilized for Project operations will be considered in future adjustments to the stormwater drainage agreement between the City and GWD and credited in favor of the City.
i) The Project will be operated by the Cooperating Agencies in conformance with all applicable water quality and water rights requirements, including but not limited to: (1) GWD's contract for water supply with the U.S. Bureau of Reclamation and its associated conveyance and water quality programs; and (2) City permits or water quality requirements. The Cooperating Agencies do not anticipate the need for water rights monitoring and 3 70
reporting, but if it should arise, the responsibility for such monitoring and reporting will be on the Cooperating Agency who holds the applicable water rights. The Cooperating Agencies will meet and confer regarding responsibilities for new water rights if they are needed.
j) The City will monitor and be responsible for reporting, as necessary, the flow of water into the Project's lift pumps and basin releases, water quality in the Project's ponds, groundwater recharge, and influence of basin operations on groundwater quality at the City's domestic well( s ).
k) The City will monitor and be responsible for reporting, as necessary, the flow of water leaving the Project's water release structure, and surface water quality upstream and downstream of the Project.

I) If requested by either the City or GWD, the Cooperating Agencies will develop a definitive written operations agreement or standard operating procedures setting forth the terms of Project operations.

Neither will unreasonably delay or deny execution of an operations agreement or standard operating procedures for the Project.

4. This MOU-2 is a non-binding expression of the Cooperating Agencies' intentions to work together cooperatively to implement construction of the Project and to negotiate a definitive agreement regarding Project operations.

City of Los Banos Grassland Water District
By: By:

Gary Brizzee, Interim City Manager Ricardo Ortega, General Manager Dated: Dated:
4 71

THIS PAGE IS INTENTIONALLY LEFT BLANK
72 LOsBanos
Agenda Staff Report
TO: Mayor & City Council Members
FROM:

DATE:

Gary Brizzee, Interim City Manager iS;z,\"l---7-~
May 21, 2025
TYPE OF REPORT: Agenda Item
SUBJECT: Local Aging and Disability-Friendly Action Plan Presentation There will be a presentation by Mike King from Pear Street Consulting regarding the Local Aging and Disability-friendly Action Plan (LADAP).

This is an informational item only, no action to be taken.

GB/Im
73 ITEM 8

THIS PAGE IS INTENTIONALLY LEFT BLANK
74 LOsBanos . \1 ti, ( ro "ad o ali{m 111,1
Agenda Staff Report
TO:

FROM:

Mayor & City Council Members
Lucy Mallonee, MMC~
City Clerk/Human Resources Director
DATE: May 21, 2025
SUBJECT: Status of City Employee Job Vacancies to Comply with Assembly Bill 2561
TYPE OF REPORT: Public Hearing
Recommendation:

Open the public hearing, receive public comment, and close the public hearing.

No action to be taken, informational item only
Background:

On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB 2561) into law to amend the Meyers-Milias-Brown Act and created a new obligation for public agencies to publicly address the status of their employee job vacancies. As a basis for the new requirements, the California Legislature determined that employee job vacancies are widespread and can be a significant problem in the public sector.

Employee job vacancies require employees to take on heavier workloads, resulting in burnout and increased turnover, which could negatively impact the delivery of public services. AB 2561 became effective on January 1, 2025.

AB 2561 imposed three requirements on local agencies: (1) at least once each fiscal year, local agencies must hold a public hearing and report on the status of vacancies and recruitment and retention efforts; (2) during the hearing, the agency must identify any necessary changes to policies, procedures, and recruitment activities that may lead to hiring obstacles; and, (3) the agency must allow the recognized bargaining units an opportunity to make a presentation at the hearing.
75 ITEM 9A
Discussion:

As of May 1, 2025, the City of Los Banos has 199 full-time equivalent (FTE) budgeted positions. Of the 199 FTE's, 160 are represented by bargaining groups. The City's overall vacancy rate is currently 7.5% which is considered low. No bargaining group currently meets or exceeds the 20% vacancy threshold that would trigger enhanced reporting under AB 2561.

Vacancy rates are calculated as follows:

Vacancy Rate (%) = (Number of Vacant Positions in employee group + Total Number of Authorized Positions) x 100.

The following table summarizes the City's vacancy rate by employee group as of May 1, 2025:

Vacancies as of %Unit
Bargaining Unit Budgeted FTE May 1, 2025 Vacancy Rate
Police Officers Association (LBPOA) 37 Police Officers 3 Police Officers 8.10% 19 {Fire Captains, Fire
Engineers, and
Firefighters Association (LBFFA) Firefighters combined) 1 Firefighter 5.30% Police Sergeants Association {LBPSA) 8 Sergeants 0 0%
3 (2 Police Commanders
Police Middle Managers Association and 1 Police Services {LBPMMA} Manager) 0 0%
Public Safety Dispatcher and
Community Services Officers 19 (Dispatchers and 2 Dispatchers Association (LBPDCSOA} CSOs) 1 cso 15.80%
1 Recreation
Coordinator
1 Utilities
Public Works/Miscellaneous Unit Maintenance
{PEU Local 1} 74 Worker 2.70%
Unrepresented 39 6 15.30%
TOTAL CITY-WIDE 199 15 7.50%
Employee job vacancies within the City arise from a range of factors including retirements, internal promotions, resignations, and terminations. In 2024, the City filled 30 full-time positions and hired 14 part-time employees.

Every position is evaluated and, if necessary, updated and finalized prior to opening a recruitment. Human Resources staff work, with the respective departments, to determine the best approach in order to fill the position. The City uses an online tracking system, NeoGov, to ensure all candidates are reviewed and screened systematically. 76 Written examinations, if necessary, as well as interviews are planned to help identify the best candidate for the position. Once a candidate is selected, an offer letter is drafted for the Department Head to sign. Any negotiations are handled amongst Human Resources staff, Department Head, Finance staff, and City Manager.

The City strives to retain talent by offering competitive pay, health and welfare benefits, paid time off, an employee assistance program, opportunities for annual merit increases up to Step 6, and retirement plans. In addition, annual cost of living assessments are conducted to ensure the City remains competitive. The City promotes a positive workplace culture with activities such as Employee of the Month recognitions and awards, work anniversary certificates, anniversary milestone gifts, annual employee appreciation events, and monthly birthday celebrations.

Staff has been met with a few recruitment challenges that we continue to try and mitigate. Some higher-level positions have advanced requirements such as degrees or specialized licenses, certifications, experience; salary is oftentimes a factor especially if these candidates are currently a part of the bay area workforce. The City has, however, recently conducted a compensation study that identified those positions that needed salary raises in order to stay up-to-market in comparison to other local cities, and those salaries were increased accordingly effective February 16, 2025.

In summary, the City of Los Banos has met its obligation to AB 2561 by holding a public hearing and presenting the information provided in this report to the governing body prior to the adoption of an annual budget. As staff routinely assesses recruitment efforts and challenges, and modifies processes when needed, there are no currently policy change recommendations.

Fiscal Impact:

None
Reviewed by:
77 THIS PAGE IS INTENTIONALLY LEFT BLANK
78 TO:

FROM:

DATE:

SUBJECT:

TYPE OF REPORT:

RECOMMENDATION:

LOsBanos
J\t the Crossroads of California
Mayor Amabile and City Council Mem~
Minerva Moreno, Finance Director /1"
May 21, 2025
Fiscal Year 2023-2024 Annual Comprehensive Finance Report Agenda Item
Staff recommends that Council adopt a Resolution accepting the 2023-2024 Annual Comprehensive Financial Report (ACFR), the Government Auditing Standards Report and the Single Audit Report prepared by Price Paige & Company, our independent auditors.

BACKGROUND:

The City's fiscal year runs from July 1 through June 30. Price Paige & Company, independent auditors who specialize in governmental audits, audited the City's books for fiscal year ending June 30, 2024. They assisted staff in preparing the City's ACFR.

The ACFR summarizes financial activity in the previous fiscal year and fund balances at June 30, 2024, as well as provides a narrative explanation in the transmittal letter and notes of significant policies, events, and activities of the past year. The report presents historical and comparative information that can be useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City's residents.

DISCUSSION:

The City's ACFR is prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). The attached ACFR has received an unmodified, or clean, opinion from our independent auditors, Price Paige & Company. An unmodified report communicates that the ACFR, and audited information within, fairly present the City's financial position for the fiscal year ending June 30, 2024. Also, The results of our audit disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City has received a "clean" audit report for the past several years and has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers' Association (GFOA) for ten (10) consecutive years. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted ITEM 10
79 accounting principles to prepare annual comprehensive financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal. The City, once again, has chosen to submit its ACFR to the GFOA for review and consideration of the award.

The Single Audit was performed as required and the Auditors determined that 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, 2024.

The ACFR and the Single Audit for the Fiscal Year Ending June 30, 2024 is available for review in the Finance Department located at City Hall and on the City's website, www.losbanos.orn.

FISCAL IMPACT:

There is no immediate financial impact or budget action necessary as a result of the recommended action.

Reviewed by:
(3 . Gary Briz'i3~
Interim City Manager
ATTACHMENTS:
2023/24 Audit Key Points
Resolution
2023/24 audited ACFR
2023/24 single audit report
Audit communication letter
Management comment letter
2 80
LOs Banos
\t tlu..: Crossroads o.f California
The ACFR communicates the City's financial condition and activity for the fiscal year ending June 30, 2024. The City's ACFR includes the following major sections and information and key points:

Introductory Section: (Page 6) Letter of Transmittal - prepared by management and used to communicate information on areas that may have an impact on the City's finances now and in the future. This includes economic factors as well as budget and management factors.

Financial Section (the main body of the ACFR for current year information) •
•
•
(Page 14) Independent Auditors' Report - the City's report card (Page 18) Management Discussion and Analysis (MD&A) - provides an analytical overview of the City's financial status and results for the year Basic Financial Statements - reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows o Government-Wide Statements - overview of financial information including all of the City's operations by financial activity
o Fund Financial Statements - a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance o Notes to the Financial Statement (Notes) - a narrative explanation that accompanies the Basic Financial Statements
Required Supplementary Information Section
• OPEB Information-four years of Other Post-Employment Benefits funding information • Pension Information - schedule of changes in the pension liability and related ratios; schedule of contribution by plan
• Budget to Actual Comparisons - for all governmental funds with a legally adopted budget
Combing and Individual Financial Statements and Schedules Section • A breakout of individual funds - for funds that were presented in a cumulative manner in the Financial Section
Statistical Section
• Financial Trends
• Revenue Capacity Information
• Debt Capacity Information
• Demographic and Economic Information
• Operating Information
81 Financial Highlights
The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $323,771,119 (net position). The unrestricted net position of $63,526,114 may be used to meet the government's ongoing obligations to citizens and creditors.

The City's total net position increased by $18,119,067, with $13,144,541 attributable to governmental activities and $4,974,526 attributable to business-type activities. The City's total assets increased by $19,109,356 due to various equipment purchases and infrastructure improvements throughout the year. Liabilities increased by $6,011,303. An increase in pension and other post-employment benefits (OPEB) liabilities contributed to this increase.

The deferred outflows of resources increased by $3,186,352 and was mainly due to pension and OPEB related activity within the governmental type activities funds. The deferred inflows of resources decreased by $1,834,662. The decrease can be largely attributed to pension and OPEB activities in the governmental type funds as well.

As of the close of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $103,209,931. This is an increase of $1,806,931 in comparison with the prior fiscal year. Approximately 21.4% or $22,205,484 is available for spending at the government's discretion and is referred to as the unassigned fund balance.

At the end of the current fiscal year, total fund balance for the General Fund was $43,815,854. Of this amount:
• $13,313,123 was assigned for various capital projects and Measure H expenditures, • $8,276,926 was committed for Police Annex renovation & the City's general plan update. • $1,066 was considered nonspendable.
• $22,224,739 was unassigned for discretionary use.

The unassigned fund balance of $22,224,739 is 79.5% of the total General Fund expenditures. $7,524,356 of this balance is required as a reserve per the fund balance policy (30% minimum reserve level). The established fund balance plays a key role in the City's budget forecasting allowing staff to mitigate economic uncertainty and pursue funding essential capital projects.

The General Fund balance increased by $3,049,652 over the prior year, primarily due to expenditure variations and an increase in property tax, motor vehicle in-lieu, and interest earnings.

Final budget compared to actual results for the General Fund reported total revenues exceeded budget expectations by $2,913,369 or 10.3% and expenditure variances were positive in the amount of $7,079,883 between the amended budget and actual expenditures, or 19.85% under the amended budget.
2 82
Citywide Net Position
The Statement of Net Position, similar to a balance sheet, reports total assets and liabilities of the City as of June 30, 2024. The total net position of the City for all activities was $323. 7 million.

Net position is broken out into three categories; capital, restricted and unrestricted (Page 19) Net Capital Position ($173.5 million)
Capital assets may include land, buildings, equipment, improvements, infrastructure and construction in progress.

Restricted Net Position($ 86. 7 million)
These assets are subject to agreements with creditors, developers, grantors, or laws or regulations of other governments. Approximately 39% of this amount is restricted for development projects, 36% is restricted for various capital projects, 10% is restricted for public safety, 7% is restricted for highways and streets, and the remaining amounts are restricted for parks and recreation, economic development and other constraints.

Unrestricted Net Position($ 63.5 million)
This represents the balance of net position that is neither part of capital assets nor restricted.

Healthy capital and operating reserves in the business-type activities support rate stabilization and recovery strategies for the City's many activities.

Cash and Investments
The ACFR also includes detailed information on the City's cash and investments. As of June 30, 2024, the City had $191.2 million in total cash and investments, all of which are in the form of investments authorized by the California Government Code and are reported quarterly. More information on cash and investments can be found in Note 3, pages 41 through 46 of the ACFR.

Capital assets
The City's investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $186,995,996 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, wells, and the wastewater treatment plant. There was a total increase in capital assets (net of accumulated depreciation) for the current fiscal year in the amount of $14,307,410.

Long-term Debt
There was no change in the financing lease with the California Infrastructure and Economic Development Bank (!Bank). The balance as of June 30, 2024 remained in the amount of $14,000,000. Compensated absences balance for the year ended June 30, 2024 was $1,411,187.

Pension Liabilities
For greater transparency, beginning in FY 2014-15, new GASB pronouncements for pension accounting require that entities report unfunded liability in the financial statements rather than in the footnotes. These GASB pronouncements do not affect either the amount of contributions a government makes to pension plans or the total net pension liability, which is still actuarially determined. Total net pension liability, or unfunded liability, is based on projected future benefit 3 83
payments attributed to the current and past employees' service, less the assets accumulated to pay those liabilities. As shown on pages 18 of the ACFR, the City has a combined net pension liability of $32,432,029. The City's various pension plans are approximately 70% funded.

The City's annual payments include a portion to fund current benefits as well as an amount to pay down the unfunded liability. Annual actuarial valuations provide the City with the amount of the contribution that must be paid annually into the plan to ensure that the current unfunded liability is paid off over the subsequent 30 years. A detailed explanation of the employee's benefits programs including detailed pension information by plan is included in the Notes section (see Note 11, pages 56 through 61) and the Required Supplementary Information (pages 79 and 80).

The ACFR for the Fiscal Year Ending June 30, 2024 is available for review in the Finance Department located at City Hall and on the City's website, www .losbanos.org. 4 84
RESOLUTION NO. --

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS ACCEPTING THE
2023/2024 FISCAL YEAR AUDIT REPORTS

CONSISTING OF THE ANNUAL

COMPREHENSIVE FINANCIAL REPORT, THE

GOVERNMENT AUDITING STANDARDS
REPORT, AND THE SINGLE AUDIT REPORT.

WHEREAS, the City of Los Banos is required to undergo an annual fiscal audit performed by an independent auditor; and
WHEREAS, the auditing firm of Price Paige & Company has completed the 2023/2024 Fiscal Year audit and all related reports and presented their findings to the Los Banos City Council;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos hereby accept the 2023/2024 Fiscal Year Audit Reports consisting of the Annual Comprehensive Financial Report (ACFR), the Government Auditing Standards Report and the Single Audit Report.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21 st day of May 2025, by Council Member _____ who moved for its adoption, which motion was duly seconded by Council Member _ _____ , and the Resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
85 THIS PAGE IS INTENTIONALLY LEFT BLANK
86 Police
Oep,lftment
87 CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024 Financial Statements

TABLE OF CONTENTS

INTRODUCTORY SECTION
PAGE
Letter of Transmittal ........................................... ....................................................................................... ........................... i GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................................. v Organization Chart ........................................................................................................................... .. .... .. ............................ vi Directory of City Officials ............................................................ ............................................................ ............................. vii

FINANCIAL SECTION
Independent Auditor's Report ... ....................................... ... ........ .. ........................................ ....................... ...................... 1 Management's Discussion and Analysis ..... .................. ............. ......................... ..... ....... .................... ..... .............. ............. S Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ....................................................... ................................................................................. .. 18 Statement of Activities .............. ..................................................... ............................................................................ 20 Fund Financial Statements:

Governmental Funds:

Balance Sheet ........................................................................................................................... ............................ 22 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ..................................................................................... .............. 23 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 24 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 2S Proprietary Funds :

Statement of Net Position .. ......................................................................................................... ......................... 27 Statement of Revenues, Expenses and Changes in Net Position .............................................. ......... .................. 28 Statement of Cash Flows ........................................... ...................................................................... ................... .. 29 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 31 Statement of Changes in Fiduciary Net Position .... .................................................... .......................................... 32 Notes to the Basic Financial Statements ............................................................................................................................ 34 88 CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024 Financial Statements
TABLE OF CONTENTS (Continued)
FINANCIAL SECTION (Continued)
Required Supplementary Information:

Budgetary Comparison Schedules:

PAGE
General Fund ............................................................................................................................................................... 71 Impact Fees Special Revenue Fund ............................................................................................................................. 73 Community Development Block Grant and Home Grants Special Revenue Fund ...................................................... 74 Streets and Roads Special Revenue Fund ................. ............................................. , .................................................... 75 Public Safety Special Revenue Fund ............................................................................................................................ 76 Notes to the Budgetary Comparison Schedules ........................................................ .................................................. 77 Pension Plans:

Cost-Sharing Multiple-Employer Plan:

Schedule of Proportionate Share of Net Pension Liability ................................................................................... 79 Schedule of Contributions .................................................................................................................................... 80 Retiree Healthcare Plan (OPEB):

Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................................... 81 Schedule of Contributions ................................................................................. ................................................... 82 Combining and Individual Fund Financial Statements and Schedules:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 86 Budgetary Comparison Schedules:

Assessment Districts Fund ........................................................................................................................................... 88 CMAQ Grant Fund ....................................................................................................................................................... 89 HCD Grant Fund .............................................................................. ............................................................................ 90 Capital Projects Funds ..................................................................................................................................... ............ 91 Internal Service Funds:

Combining Statement of Net Position ............................................................................................ ............................. 93 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 94 Combining Statement of Cash Flows ........................................................................................................................... 95 89 CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024 Financial Statements
TABLE OF CONTENTS (Continued)

STATISTICAL SECTION
PAGE
Net Position by Components - Last Ten Fiscal Years ........................................ ................................................................. 98 Changes in Net Position - Last Ten Fiscal Years ................................................................................................................. 99 Fund Balances - Governmental Funds - Last Ten Fiscal Years ........................................ ............................ ....... .............. 101 Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years ...................................................................... 102 Assessed Value of Taxable Property- Last Ten Fiscal Years ............................................................................................ 104 Tax Revenue by Source - General Fund - Last Ten Fiscal Years ....................................................................................... 105 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ................. .................................................... .... ........ 106 Principal Property Taxpayers - Current Year and Ten Years Ago .. ....... ..................................................... .. ..................... 107 Property Tax Levies and Collections - Last Ten Fiscal Years ............... ................................ ................................ ............. 108 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................................ 109 Ratios of General Fund Debt Outstanding - Last Ten Fiscal Years ................................. ...... .. ........................... ............... 110 Direct and Overlapping Governmental Activities Debt.. .................................................................................................. 111 Legal Debt Margin Information - Last Ten Fiscal Years .... ................................................ ................................................ 112 Pledged-Revenue Coverage - Last Ten Fiscal Years ......................................................... ................................................ 113 Demographic and Economic Statistics - Last Ten Fiscal Years ......................................................................................... 114 Principal Employers - Current Year and Nine Years Ago .................................................................................................. 115 Full-Time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years ................................... 116 Operating Information, Operating Indicators by Function/Program - Last Ten Fiscal Years ........................................... 117 Operating Information, Capital Assets Statistics by Function/Program - Last Ten Fiscal Years ...................................... 118 90 INTRODUCTORY SECTION
91 I.:osBanos
Al 1h, Cmm11<1ds oj C,<tlifim,ia
May 2, 2025
Honorable Mayor,
Members of the City Council, and
Citizens of the City of Los Banos
City Hall
520J Street
Los Banos, CA 93635
SUBJECT: Annual Comprehensive Financial Report -June 30, 2024 Phone: {209) 827-7000
Fax: (209) 827-7010
www.losbanos.org
We are pleased to submit the Annual Comprehensive Financial Report {ACFR) of the City of Los Banos (City) for the fiscal year ended June 30, 2024. This report is published in accordance with local ordinance and state law requirements that financial statements be presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited in accordance with Generally Accepted Auditing Standards by a firm of licensed certified public accountants.

This report consists of management's representations concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of all Information presented in this report. In order to provide a reasonable basis for making these representations, management of the City has established an internal control framework designed both to ensure the assets of the government are protected from loss, theft or misuse, and to ensure adequate accounting data is compiled to allow for the preparation of the financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. As a recipient of federal, state, and local financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to the appropriate programs. This internal control structure is subject to periodic evaluation by management.

Price Paige & Company, a firm of licensed certified public accountants approved by the City Council, has audited the City's financial statements. The soal of the Independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2024 were free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disdosures in the financial statements, assessing the accounting principles used and significant estimates made by manasement, and evaluating the overall financial statement presentation.

Price Paige & Company concluded that there is reasonable basis for renderins an unmodified tdean") opinion for the City's financial statements for the fiscal year ended June 30, 2024, were fairly presented in conformity with GAAP. The independent auditors' report Is presented as the first component of the financial section of this report.

In addition, the City may be required to undergo an annual single audit in compliance with provisions of the Title 2 U.S. Code of Federal Regulations. The report of the Single Audit is published separately from this ACFR. This fiscal year a Single Audit of federal awards was required as the City expended more than the expenditure threshold amount of federal awards which is outlined In the requirements.

Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Manasement's Discussion and Analysis (MD&A).

This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's 92 MD&A can be found in the financial section of this document, immediately following the report of the independent auditor.

Profile of the City Los Banos
The City, incorporated in 1907 as a General Law Clty has a population of 48,533, and is the second largest city in Merced County. The City is located near the geographical center of California in the San Joaquin Valley approximately 70 miles northwest of Fresno, 80 miles east of the Pacific Ocean and 120 miles south of Sacramento. The Crossroads of California describes Los Banos because State Highway 33, 165 and 152 pass through the City and Interstate 5 is six miles to the west. Los Banos is famous for its agricultural products, Including melons, almonds, walnuts, apricots, cotton, tomatoes, and dairy products.

The City delivers a full range of municipal services which include Police, Fire, Community and Economic Development, Recreation, Park Maintenance, and Public Utilities under the Council-Manager form of government.

The City Council meets the first and third Wednesdays of every month. Policy making and legislative authority are vested in the Oty Council, which consists of a mayor and four Council Members. The Mayor is directly elected by the people and serves a two-year term. Four Council Members, a City Clerk, and a City Treasurer are elected and serve four-year terms. The City Manager is appointed by the City Council and is responsible for Implementing policies and overseeing the day-to-day operations of the City.

The City Council is required to adopt a budget no later than the close of the prior fiscal year. The budget is prepared by fund (e.g., General Fund) and department (e.g., Police). After adoption, departmental adjustments may be done with the approval from the City Manager provided that there is no change to the fund balance. Budget amendments to increase appropriations may be taken to the Oty Council for their approval throughout the year.

Local Economy
The economic condition and outlook at the national, state, and city levels play a vital role in shaping community dynamics. In Los Banos and Merced County, economic forecasts continue to show encouraging signs of recovery.

Retail stores, fitness centers, and restaurants are operating at full capacity, driving improvements in sales and transient occupancy tax revenues within our city. Indicators of economic recovery are promising, with inflation trending downward and recent Federal Reserve rate cuts enhancing the overall outlook. However, some challenges remain, including elevated oil prices and the persistent risk of stagflation.

The unemployment rate for the City remained steady at 12.100/o compared to the previous year. Meanwhile, Merced County experienced an increase in unemployment, rising to 9.60% from 8.60% the prior year. California's unemployment rate also saw an uptick, moving from 4.60% to 5.30%. This according to the Bureau of labor statistics Metro Area employment and unemployment. Recognizing employment as a vital component of the local economy, Oty staff continues to collaborate with two recruitment firms to attract potential businesses to the community.

These partnerships-one with a retail recruiter and the other with an industrial recruiter-are aimed at soliciting national retailers, major businesses, and Industries to establish themselves in the City of Los Banos.

As more businesses relocate to the City through these efforts, the community stands to benefit significantly from job creation, increased sales tax revenue, and a broader property tax base. During the 2023/24 fiscal year, ten (10) commercial building permits were finalized, including Tenant Improvements for Negrete Panaderia, Blue Agave, and Royal Nails & Lashes. Other completed commercial projects included Always Rescue Plumbing, Merced School Employees Federal Credit Union, the new Los Banos Police Station, Tenant Improvements for Laundry Depot, Five Below, Kagome Breakroom Expansion, Soya Tea Lounge, and Memorial Hospital Breakroom Expansion.

Additionally, three {3) new commercial building permits were issued in Fiscal Year 2023/24, further benefiting the City: camarena Health, Starbucks, and Day & Night Market and Gas Station. In the residential sector, over 223 new permits were issued, and 145 permits were finalized last fiscal year. However, the rising costs of construction and ii
93 interest rates have caused a slowdown in the housing market. Despite these challenges, we anticipate a gradual recovery in residential permits during Fiscal Year 2024/25.

Long Term Financial Planning
The City adopts an annual budget, which serves as the cornerstone of its financial planning and control framework.

These measures are designed to ensure compliance with the legal provisions outlined in the annual appropriated budget approved by the City Council. Budgetary oversight is maintained at the departmental level for the General Fund and at the fund level for all other funds. Department heads, with the City Manager's approval, may reallocate resources within their departments. Additionally, the City Council may amend funds through an affirmative vote during any regular or special City Council meeting.

To bolster fiscal stability and emergency preparedness, the City Council has established a policy to maintain a 30% General Fund reserve. For the current fiscal year, the General Fund boasts an 87% operating reserve, providing additional security against economic uncertainties.

Retirement rates have risen due to changes implemented by CalPERS, including adjustments to the amortization period for unfunded accrued Habllities and a phased reduction of the discount rate introduced in prior years. While CalPERS reported a 4.5% favorable investment gain, the discount rate decreased to 6.9% reduced its overall funded status to 70%. Consequently, the unfunded liability and employer normal costs are projected to rise, with these changes taking effect in FY 2023- 2024.

In anticipation of these challenges, the City has allocated $2,000,000 to mitigate the impact of increased employer contribution rates. Strategies under consideration include investing in a Section 115 Trust, reducing the unfunded accrued liability, or using the funds to offset future employer contributions. These efforts underscore the City's commitment to sound fiscal management and long-term financial resilience.

Major Achievements and Future Objectives
The City's continued exploration of new revenues sources as well as expense management has proven positive in its efforts as the City strives to keep up with personnel, infrastructure and equipment needs. There is an outlined fiveyear Capital Improvement Plan in the current budget to recognize capital needs throughout the City.

Some of those objectives by department are highlighted as follows:

Administration Public Works
• City Hall Security System and Key Entry • F Street Yard Improvements Community and Economic Development
• Downtown Gateway Signage Parks & Recreation
• Downtown Master Plan/Civic Plaza • Community Center Security Upgrade • Traffic Box Murals • Various Playground replacements
• Various Landscape Improvements
Police • Ag Sports Complex Improvements
• Fleet Replacement • Colorado Ball Park Improvements
• K-9 Vehicle
• Body Cameras Streets
• Street Rehabilitations Work
Fire • 7th St Public Parking Lot Improvements
• Fire Station #1 Kitchen Remodel • Fleet Replacement
iii
94 Facilities Maintenance Information Technology
• ADA Tr,insltion Plan • Desktop/Laptop Replacement
• Network/Server Replacement
Cash Management
The City finance staff focuses on safety, liquidity and yield of investments. The highest priority of cash management and investments is to ensure adequate funds are available to meet the City's obligations and all investments are in safe instruments. Yield, while important, is considered in third priority after safety and liquidity. The City invests in the Local Agency Investment Fund (LAIF) operated by the state for the benefit of local governments. The City also has investments in Wells Fargo Institutional Securities. Bond proceeds, debt service monies, debt service reserves, etc. are Invested according to the bond covenants of each issue. Finance staff continues to work on updating the City's Investment policy In order to improve the rate of returns on the City's investments, while still maintaining the safety and liquidity needs of the City.

Awards and Acknowledgments
Government Finance Officers Association of the United States and Canada {GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Los Banos for its annual comprehensive financial report for the fiscal year ended June 30, 2023. This is the nineth consecutive year that the government has achieved this prestigious award. In order to receive the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

We would like to recognize the Mayor and City Council for their guidance and support in the City's pursuit of excellence in financial reporting. The preparation of the Annual Comprehensive Financial Report (ACFR) was made possible by the dedicated service of the entire Finance Department staff. We are profoundly proud of the ACFR and our department is committed to producing financial statements that are accountable and informative to the public.

Credit must also be given to all members of the departments who assisted and contributed to the preparation of this report. The City continues to strive to maintain fiscal sustainability, efficiency in services, and a safe and healthy community for our citizens to live and thrive.

Respectfully submitted,
4N1(~
Minerva Moreno
Finance Director
iv
~~,(,J
Gary Brizzee
Interim City Manager
95 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Los Banos
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
V
96 I

CITY OF LOS BANOS

ORGANIZATION CHART
Citizens of Los Banos I
Mayor Pro Tern Connell Member Council Member Council Member District 1 DlstrlctZ Mayor DlstrlctJ District 4
Kenneth Lambert Douglas Begonia Paul Llanez Brett Jones Deborah Lewis I
atyaerk I I City Treasurer
Lucy Mallonee I I Lucy Lawrence I
aty Manager
Josh Pinheiro
I Planning Commission rH Tree Commission
aty Attorney
I
Airport Advisory William Vauglm Commtsslon
I Traffic Safety I Parks & Recreation
Committee Commission
I I l l
Public Works Commantty & IntoimPllli<s& Human Resources Interim Flnance Ecoo.omlc Director Fire Chief Director /City Director Police Chief Dcvdopm<ut Rtcreatl.on Engineer Dir«tor Paul Tualla Gary Brlzzee Director Lucy Mallonee Brent Kuhn Nlrorn Than Stac,· Souza Elms JoeHelm vi
97 Mayor
Mayor Pro Tern
Council Member
Council Member
Council Member
City Clerk
City Treasurer
City Manager
City Attorney
Human Resources Director
Fire Chief
Police Chief
Public Works Director/Engineer
Interim Finance Director
. City of Los Banos
Directory of City Officials
June 30, 2024
Elected Officials
Appointed Officials
Community & Economic Development Director
Parks & Recreation Director
vii
Paul Llanez
Kenneth Lambert
Brett Jones
Deborah Lewis
Douglas Begonia
Lucy Mallonee
Lucy Lawrence
Josh Pinheiro
William Vaughn
Lucy Mallonee
Paul Tuai la
Gary Brizzee
Nirorn Than
Brent Kuhn
Stacy Souza Elms
Joe Heim
98 FINANCIAL SECTION
99 II PRICE PAIGE & COMPANY
Certified Public Ac~ountants
The Place to Be

INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of the City Council
City of Los Banos, 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 Los Banos, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, 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.

Emphasis of Matter
As described in Note 15 to the financial statements, in 2024, the City absorbed the activity of the Los Banos Successor Agency. The activity has been included in the financial statements as a private purpose trust fund within the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. 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. 1 570 N. Magnolia Avenue, Suite I 00
Clovis, CA 93611
www.ppc.cpa
tel 559.299 95 0
fax 559.299.2344
100
In preparing the fina.r,cial statements, management is required to evaluate whether there are condi_tions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's 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 on pages 5-15, budgetary comparison information on pages 71-77, the proportionate share of net pension liability on page 79, the schedule of pension contributions on page 80, the schedules of changes in the net OPEB liability and related ratios on page 81, and the schedule of OPEB contributions on page 82, 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. 2 101
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other 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 May 2, 2025, 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.

Clovis, California
May 2, 2025
3 102

MANAGEMENT'S DISCUSSION AND ANALYSIS
4 103
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
As management of the City of Los Banos (the 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, 2024. We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in our letter of transmittal, which can be found on pages i-iv of this report.

Financial Highlights
The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $323,771,119 (net position). The unrestricted net position of $63,526,114 may be used to meet the government's ongoing obligations to citizens and creditors.

The City's total net position increased by $18,119,067, with $13,144,541 attributable to governmental activities and $4,974,526 attributable to business-type activities. The City's total assets increased by $19,109,356 due to various equipment purchases and infrastructure improvements throughout the year. Liabilities increased by $6,011,303. An increase in pension and other post-employment benefits (OPEB) liabilities contributed to this increase.

The deferred outflows of resources increased by $3,186,352 and was mainly due to pension and OPEB related activity within the governmental type activities funds. The deferred inflows of resources decreased by $1,834,662. The decrease can be largely attributed to pension and OPEB activities in the governmental type funds as well.

As of the close of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $103,209,931. This is an increase of $1,806,931 in comparison with the prior fiscal year. Approximately 21.4% or $22,205,484 is available for spending at the government's discretion and is referred to as the unassigned fund balance.

At the end of the current fiscal year, total fund balance for the General Fund was $43,815,854. Of this amount, $13,313,123 was assigned for various capital projects and Measure H expenditures, $8,276,926 was committed for Police Annex renovation and the City's general plan update. $22,224,739 was unassigned for discretionary use and $1,066 was considered nonspendable. The unassigned fund balance is 79.5% of the total General Fund expenditures.

Overview of the Financial Statements
This Management's Discussion and Analysis is intended to serve as an introduction to the City's basic financial statements.

The City's basic financial statements consist of three components: 1) government-wide financial statements 2) fund financial statements, and 3) notes to the basic financial statements. This report also includes supplementary information intended to furnish additional details to support 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 financial information on all the City's assets, liabilities, and deferred inflows/outflows of resources, with the difference 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 improving or deteriorating.

The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 5 104
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues, referred to as governmental activities from other functions that are intended to recover all or a significant portion of their costs through user fees and charges, known as business-type activities. The governmental activities of the City include general government, public safety, highways and streets, parks and recreation, and economic development. The business-type activities of the City include water, wastewater, airport, and solid waste operations.

The government-wide financial statements include not only the City itself, which is known as the primary government, but all legally separate entities or component units for which the government is financially accountable. Currently, there are no component units of the City.

The government-wide financial statements can be found on pages 18-20 of this report.

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. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, 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 assessing a government's near-term financing requirements.

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 similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains sixty-nine (69) individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, impact fee special revenue funds, CDBG & HOME grant special revenue funds, streets and roads special revenue funds, public safety special revenue funds, and capital grants capital projects fund, which are considered to be major funds. Data from the nineteen (19) non-major 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 in the combining and individual fund statements and schedules section of this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 22-25 of this report.

Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprises funds to account for its water, wastewater, airport, and solid waste operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for the management of its retiree health benefits, its information technology, and for its fleet of vehicles. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. 6 105
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
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 about the activities the government operates like businesses, such as the water, wastewater, and solid waste systems as well as the municipal airport, all of which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The basic proprietary fund financial statements can be found on pages 27-29 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

At this time, the City maintains the Neighborhood Stabilization Program (NSP) Impound Custodial Fund and the Los Banos Successor Agency Private-Purpose Trust Fund as a fiduciary funds. These custodial funds reports resources held by the City in a custodial capacity for individuals, private organizations, and other governments.

The fiduciary fund financial statements can be found on page 31-32 of this report.

Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 34-68 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City's progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its employees. Required supplementary information can be found on pages 71-82 of this report.

The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions and OPEB. Combining and individual fund statements and schedules can be found on pages 85-86 of this report.

Government-Wide Overall Financial Analysis
Net Position: A condensed presentation of the City's net position shown below totals $323,771,119 as of June 30, 2024. (in thousands of dollars)
Governmental Activities Business-Ttee Activities Total Activities 2023 2024 2023 2024 2023 2024
Current and other assets $ 109,909 $ 110,290 $ 86,215 90,636 196,124 $ 200,926 Capital assets 117,355 130,585 55,333 56,411 172,688 186,996 Total assets 227,264 240,875 141,548 147,047 368,812 387,922 Deferred outflows of resources 14,415 16,934 3,909 4,576 18,324 21,510 Long-term liabilities outstanding 48,133 53,634 17,109 18,261 65,242 71,895 Other liabilities 7,047 5,962 2 456 2,899 9,503 8,861
Total liabllities 55,180 59,596 19,565 21,160 74 745 80,756 Deferred Inflows of resources 5,066 3 635 1,673 1,270 6,739 4,905 Net position:

Net investment in capital assets 103,770 117,217 55,241 56,324 159,011 173,541 Restricted 56,060 61,048 24,902 25,656 80,962 86,704
Unrestricted 21,603 16,313 44,076 47,213 65,679 63,526
Total net position $ 181,433 194,578 124,219 $ 129,193 $ 305,652 $ 323,771 7 106
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
By far, the largest portion of the City's net position $173,541,152 (53.6%) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City's net position $86,703,853 (26.8%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $63,526,114 {19.6%) is unrestricted and may be used to meet the government's ongoing needs and obligations to its citizens and creditors.

At the end of the current fiscal year, the City is able to report positive balances in all of the reported categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The prior fiscal year showed positive balances in all but one of the reported categories.

Changes in Net Position: Below is a current year recap of the changes in net position. The full Statement of Activities can be seen on page 20.
2023 2024
Program revenues s 38,372,121 s 44,131,452
General revenues 33,599,792 40,220,740
Governmental expenses (37,368,233) (43,046,923)
Business-type expenses (19,505,741) {23,186,202)
Net increase (decrease) s 15,097,939 s 18,119,067
Program revenues reflect charges for services, operating and capital grants or contributions for other sources.

General revenues consist of a variety of taxes, unrestricted investment earnings, and gain on sale of capital assets. These revenues reflect a $6,620,948 overall increase from the 2024 fiscal year. This increase was primarily due to increased interest earnings and assessment revenue in fiscal year 2024.

The City's overall net position increased $18,119,067 (20.01%) from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities. 8 107
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
Key elements of this increase are as follows:
(in thousands of dollars)
Governmental Activities
Program revenues:

Charges for services
Operating grants
Capital grants
General revenues:

Property taxes
Sales taxes
Other taxes
Use of money and property
American Rescue Plan Act
Motor vehicle in-lieu
Gain on sale of capital assets
Settlement
Miscellaneous
Total revenues
Expenses:

General government
Public safety
Highways and streets
Parks and recreation
Economic development
Interest on long-term debt
Water
Sewer
Airport
Solid waste
Total expenses
Increase (decrease) in
net position before transfers
Transfers
2023 2024
7,502 $
5,470
3,204
12,268
14,521
1,387
3,150
48 49
116
47,715
4,583
18,935
7,178
5,389
1,281
3 37,369
10,346
(9)
10,716 $
6,311
3,151
13,288
14,530
1,358
6,058
59 265
456
56,192
2,403
23,369
7,865
7,745
1,663
2 43,047
13,145
Business-Type Activities
2023 2024
21,751 $
33 412
6 1,880
5 170
24,257
5,250
5,730
380
8,145
19,505
4,752
9 23,070 $
49 834
8 3,736
78 385
28,160
6,438
9,447
400
6,901
23,186
4,974
Increase (decrease) in
net position ___ 1_0.,_,3_37 ____ 1_3.,_,1_45 _____ 4.,_,7-'-61_ 4,974 Net position - beginning
Net position - ending $
171,096 181,433 119 458 124,219
181,433 $ 194,578 $ 124,219 $ 129,193 $
Total Activities
2023 2024
29,253 $
5,503
3,616
12,274
14,521
1,387
5,030
48 54
286
71,972
4,583
18,935
7,178
5,389
1,281
3 5,250
5,730
380
8,145
56,874
15,098
33,786
6,360
3,985
13,296
14,530
1,358
9,794
59 343
841
84,352
2,403
23,369
7,865
7,745
1,663
2 6,438
9,447
400
6,901
66,233
18,119
%
Change

15.5%

15.6%

10.2%

8.3%

0.1%
-2.1%

94.7%
100.0%

22.9%
535.2%
100.0%
194.1%

17.2%
-47.6%

23.4%

9.6%

43.7%

29.8%
-33.3%

22.6%

64.9%

5.3%
-15.3%

16.5%

20.0%

0.0%
15,098 18,119 20.0%
290,554 305,652 5.2%
305,652 =$==32=3=,7=71= ====2=5.=2=%
Governmental Activities. During the current fiscal year, net position for governmental activities increased $13,144,541 or

7.24% from the prior fiscal year for an ending balance of $194,5777,774. The City is still experiencing growth in property tax due to development and home sales (this growth has also produced increased fees) and a small increase in sales tax due to consumer spending. The increase in the overall net position of governmental activities is the result of this tax revenue growth and interest earnings. The full Statement of Net Position can be found on pages 18-19.

Business-type Activities. For the City's business-type activities, the results for the current fiscal year were positive in that overall net position increased to reach an ending balance of $129,193,345. The total increase in net position for businesstype activities (water, wastewater, and solid waste and airport funds) was $4,974,526 or 3.85% from the prior fiscal year.

The growth, in large part, is attributable to charges for services in the water, wastewater and solid waste activities being greater than the expense (in order to build reserves for replacing infrastructure). The actual charges for services increased $1,318,523 from the previous year's amounts. The City adopted rate increases effective July 1, 2024, for five years.
9 108
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
Net Cost of Services: The table below presents the total cost of each of the City's governmental activities as well as each of the activities' net cost (total cost less fees generated by the activities and intergovernmental aid). The net cost shows the financial burden that was placed on the City's taxpayers by each of these functions. The total governmental activities cost of $43,046,923 were offset by charges for services of $10,716,224, operating grants/contributions of $6,310,780, and capital grants/contributions of $3,151,009, bringing the net expense to cost of services to $22,868,910. Streets received a total of $2,888,665 from capital grants/contributions reflecting the restricted subventions for infrastructure and other capital improvements. Public Safety represents the highest proportion of total net costs at $19,494,912. (in thousands of dollars)
Total Cost of Service Net Cost of Service
2023 2024 2023 2024
General government $ 4,582 $ 2,403 $ (3,858) $ (1,381)
Public safety 18,934 23,369 (16,526) (19,495)
Highways and streets 7,178 7,865 1,478 2,006
Parks and recreation 5,389 7,745 (1,381) (2,519)
Economic development 1,281 1,663 (902) (1,477)
Interest of long-term debt 3 2 ______ (3___ ) (3)
Total $ 37,367 $ 43,047 $ (21,192) $ (22,869)
Financial Analysis of Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These funds have been classified as governmental or proprietary.

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

To provide an overview of the City's funds, the following is a table showing the increases and decreases to total assets, liabilities, revenues, and expenditures of the City fund types from fiscal year 2023 to 2024. The total revenues and expenditures do not include any "other financing sources (uses)".

Increase (Decrease) from Prior Year
Assets Liabilities Revenues Exeenditures
General fund $ 4,210,355 $ 1,160,703 $ 3,625,143 $ 3,074,185 Special revenue funds 3,306,952 (2,337,062) 4,058,739 4,436,772 Capital projects fund (8,205,973) (2,847,204) 591,634 (10,980,776) Other funds 898,926 281,161 320,204 452,639
As of June 30, 2024, the City's governmental funds reported combined ending fund balances of $103,209,931 or an increase of $1,806,931 from the prior fiscal year. Approximately 57.3% of this total amount ($59,169,932) is not available for new spending because it is restricted to public safety street maintenance, impact fee related projects and capital grant projects.

Of the remaining balance, $200,960 is committed for vehicle replacement, $8,000,000 is committed for City Hall and the Police Annex, $75,966 is committed for General Plan updates, $61,546 is assigned for economic development, $2,000,000 is assigned for future PERS employer contributions, and $11,251,577 is assigned for Measure H activity and other capital projects. $22,205,484 or 21.52% as unassigned and available for spending in the future at the government's discretion.

However, approximately $7.S3 million of the General Fund's unassigned fund balance is needed to comply with the City's minimum fund balance policy.
10 109
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
General Fund
The assets in the General Fund realized an increase of 9.87% whereas liabilities increased by 38.06%. The total fund balance for General Fund ended the year at $43,815,854 with $22,224,739 as unassigned and available for discretionary use. This was an overall fund balance increase of 6.8% from the previous fiscal year. The significant reasons for the increase to the total General Fund balance was due to growth in property tax revenues, permit activity due to increased development within the City and interest earnings. Further analysis of the General Fund budget is discussed below under the "General Fund Budgetary Highlights".

Major Governmental Funds. There are six major governmental funds: General Fund, Impact Fees Special Revenue Fund, CDBG and HOME Grants Special Revenue Fund, Streets and Roads Special Revenue Fund, Public Safety Special Revenue Fund, and Capital Grants Capital Projects Fund. Changes in the General Fund are highlighted in the Financial Analysis section above. The following are changes in the other major funds:

Impact Fee Fund. These funds account for fees collected from developers for new development and used for future impact of capital needs within the City. At June 30, 2024, the impact fee funds had a total fund balance of $32,609,789.

The entire amount of the fund balance has been restricted for capital projects except for $243,000 of nonspendable prepaid item. During the current year, funds were expended towards City Hall and Community Center rehabilitations, upgrades to City Public Works Facilities, street rehabilitation, and expenditures related to the new safety facilities and parks. Most of the remaining fund equity position will be used on expanding public safety facilities and traffic improvements in order to mitigate safety and traffic impact from new development. Fund equity increased due to increased development and interest earnings.

CDBG and HOME Grants. These funds account for grant funding received from the State of California to assist low to moderate income homeowners. The total fund balance at June 30, 2024, was $837,459 and was generated from repayment of loans. These funds are restricted and are required to be sent back to the State or used back into the program. The City will utilize all program income available. Fund equity increased due to interest earnings.

Streets and Roads. These funds include Regional Surface Transportation Program (RSTP), Transportation Expenditure Plan (TEP), Gas Tax, and Local Transportation Fund (LTF}. These funds are used to maintain, repair, and improve the City's 136 miles of streets, 5 miles of alleys, 272 miles of curbs and gutters, and 262 miles of sidewalks. The fund balance at June 30, 2024 was $8,244,533. Fund equity decreased due to Measure V and S81 overlay projects.

Public Safety Special Revenue. These funds are generated from a special half cent sales tax for public safety known as Measure P, and revenues received from public safety grants, public safety impact fees, and community facility districts for police and fire services. The total fund balance at June 30, 2024 was $9,831,367. Fund equity increased due to an increase in CFO Assessments and increased development.

Capital Grants. These funds are used for major capital projects. They include the Traffic Mitigation fund which are fees collected from developers to help mitigate the development impact on the City. The Emergency Operations Fund is also in this grouping. The City received $5,000,000 from the state in fiscal year 2019-2020 to build an emergency operations center in the future and the Police Facilities CIP fund which is accounting for the construction of the new police station.

The total fund balance at June 30, 2024 was $6,412,622. Fund equity decreased due to the construction and completion of the Police Station.

Non-Major Governmental Funds. These funds include Assessment Districts which are used to maintain the sidewalks, landscaping, parks, street signs, streetlights, trees, fences, and storm drains within designated districts throughout the City; and Housing Community Development grant used to help cities prepare and implement plans and process improvements that streamline housing approvals and accelerate housing production. The total fund balance at June 30, 2024 was $1,458,307. Fund equity increased due to a 5% increase in Assessment Revenue and interest earnings.

There are no restrictions, commitments, or other limitations that would significantly affect the availability of fund resources for the future.
11 110
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
General Fund Budgetary Highlights
Original budget compared to final budget. At mid-year, the City Council approved budget adjustments for the General Fund. The most significant adjustments to expenditures at mid-year were increases to technical services in the building department in the amount of $375,000 for contracted permitting services, and an increase to insurance for all departments in the aggregate amount of $69,000 to account for the change in estimated member contributions to CSJVRMA.

Final budget compared to actual results. Total revenues exceeded budget expectations by $2,913,369 or 10.3%. The most significant differences between estimated revenues and actual revenues were property taxes and use of property and money. Revenue for property taxes was anticipated at $10,580,545 but the actual amount received was $11,460,593 for a $880,048 amount over budget. Estimated revenues for use of property and money was $1,342,128 and the actual amount received was $2,887,958 exceeding the budget by $1,545,830. These positive variances exceeded the budget by 21% or $2,425,878. This was due to increased property values and home sales for property taxes and higher yield on interest earnings.

Expenditure variances were positive, coming in 19.85% under the amended budget. The most significant savings were found in general government (administration), public safety, parks and recreation, and capital outlay. General government (administration) realized a positive variance of $688,401, public safety $1,536,328, community development $1,043,246 and capital outlay $3,107,845. There was a total positive variance of $7,079,883 between the amended budget and actual expenditures.

In fiscal year 2018-2019, the citizens of Los Banos passed a½ percent sales tax measure known as the Los Banos Essential City Services Measure (Measure H). The sales tax proceeds from this measure are used to support vital services of the City, such as Public Safety and Recreation, and to maintain fiscal sustainability. A Citizens' Oversight Committee was established to review, make recommendations, and annually report on the revenue and expenditures of these funds.

Since the establishment of Measure H, the City has been able to hire additional Public Safety and Recreation personnel as well as purchase equipment for Police and Fire and offer more recreational activities. The City budgeted $4,021,358 in Measure H sales tax revenue and received $3,90S,905 failing to meet budget expectations by $115,453. Measure H expenditures were budgeted at $3,432,930 and ended the year at $1,378,676. This was an expenditure savings of $2,054,254 for the fiscal year.

Capital Assets and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $186,995,996 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, wells, and the wastewater treatment plant.

There was a total increase in capital assets (net of accumulated depreciation) for the current fiscal year in the amount of $14,307,410.

For governmental activities, capital assets (net of accumulated depreciation) increased $13,229,530 and business-type activities increased by $1,077,880 in fiscal year 2023-2024. 12 111
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
A recap of the City's capital assets, net of accumulated depreciation, is shown next:

Governmental Activities Business-t:z:ee Activities
Descrietlon 2023 2024 2023 2024
Land $ 32,160 $ 32,161 $ 8,068 $ 8,068
Buildings, structures and improvements 21,654 48,886 10,063 10,185 Equipment 21,347 24,478 12,684 13,359
Right-to-use IT scubscription 73 73 89 14
Infrastructure 150,824 157,835 74,945 76,779
Construction in progress 22,596 3,577 1,135 2,316
Less: accumulated depreciation (131,299) (136,425} (51,651) (54,310) Total capital assets $ 117,355 $ 130,585 $ 55,333 $ 56,411 Total %
2023 2024 Chan1:1e
$ 40,228 $ 40,229 0.0%
31,717 59,071 86.2%
34,031 37,837 11.2%
162 87 -46.3%
225,769 234,614 3.9%
23,731 5,893 -75.2%
ps2,9soi (190,73Sl 4.3%
$ 172,688 $ 186,996 8.3%
The City's depreciation expense for the year totals $9,291,287. This includes $6,350,397 in depreciation expense for governmental activities and $2,940,890 for the business-type funds. There is more detailed information about the City's capital assets in Note 6 to the financial statements on page 48-49 of this report.

Major capital asset events during the current fiscal year include the projects stated as follows:
• Street Overlays paid by Public Works Street & Roads Fund. • 2 ¾ Ton Utility Trucks paid by General Fund.
• 5 Yard Dump Truck paid by Solid Waste Fund.
• Playground Equipment at City Parks paid by Recreation Measure H. • Community Center Cameras and HVAC Replacement paid by Recreation Measure H. • 7th Street Ballpark Improvements paid by Recreation Measure H. • Purchase of a Chevy Tahoe SUVs paid by the General Fund. • Downtown Gateway Sign paid by the General Fund.
• Wastewater canal dredging paid by the Wastewater fund.

Long-term Debt: A recap of the City's long-term debt is shown below. There was no change in the financing lease with the California Infrastructure and Economic Development Bank (IBank). The balance remained in the amount of $14,000,000 ($13,336,944 for project uses and $663,056 for capitalized interest). A decrease in IT subscription liability of $76,349 was due to expiration of subscription licenses. An increase of $277,616 was recorded for employee compensated absences.
(in thousands of dollars)
Governmental Activities Business-Tyee Activities Total
Debt Ti~' 2023 2024 2023 2024 2023 2024
Financing lease $ 14,000 $ 14,000 14,000 $ 14,000
IT subscription liability 73 48 60 9 133 57
Comp. absences 860 1,111 273 300 1,133 1,411
Total debt $ 14,933 15,159 333 309 $ 15,266 $ 15,468
More detailed information about the City's long-term debt is presented in Note 6 to the financial statements.

Economic Factors and Next Year's Budgets and Rates
The City's property taxes are received in January and April whereas sales taxes are received on a monthly basis requiring the City to maintain a reserve in order to meet cash-flow needs of the General Fund. Property tax values have risen, therefore so have the property taxes in lieu of vehicle license fees. Sales taxes have flattened out for the City. The City remains consistent with a conservative approach to revenues and anticipates a modest growth in General Fund revenues in the next fiscal year. The City will continue to work diligently to preserve existing reserves in order to meet additional personnel expenditures that will impact the General Fund in future fiscal years as well as impending infrastructure/capital project needs. Sales tax is the City's largest source of revenue representing 36.1% of the General Fund. Sales tax is anticipated to increase by .8%. The second largest revenue is property tax which makes up 33.1% of the General Fund.

Property tax revenues are budgeted to increase 7 .67% in 2024-2025. 13 112
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
Personnel costs will increase for next fiscal year due to step increases for all employee groups and increases due to the Memorandum of Understandings (MOU) entered into with the bargaining groups in 2021, A new MOU is expected to be executed in 24-25 further increasing this cost. Health benefits continue to rise as well as employer contributions to Cal PERS for retirement benefits for employees.

The City is a member of a public entity risk pool (see notes to these financial statements). The City will see a 9% increase in workers compensation as well as an overall 21% increase in property, auto, and liability.

The City participates in the CalPERS retirement program for its employees. Changes that have affected the City's employer's rates include the changing of the amortization period for the unfunded accrued liability from a 30-year to a 20-year amortization period as well as phasing down the discount rate to 7%.

The following is the employee rate, employer's normal cost rate, and unfunded accrued liability (UAL) by fiscal year:
2022
2023
2024
2022
2023
2024
2022
2023
2024
Employee

8.00%

8.00%

8.00%
Employee

7.00%

7.00%

7.00%
Employee

7.25%

7.25%

8.25%

2.7%@ 55
Miscellaneous
Employer
Normal Cost

14.870%

14.900%

16.870%

2.0%@60
Miscellaneous
Employer
Normal Cost

9.300%

9.300%

10.870%

2.0%@62
Miscellaneous
Employer
Normal Cost

7.730%

7.760%

8.000%
UAL
$940,667
$1,070,875
$1,067,086
UAL
$5,206
$6,093
$0
UAL
$7,616
$8,980
$0
Employee

9.00%

9.00%

9.00%
Employee

9.00%

9.00%

9.00%
Employee

13.75%

13.75%

14.50%

14.50%
3%@50
Safety
Employer
Normal Cost

25.590%

25.640%

29.090%
3%@55
Safety
Employer
Normal Cost

22.470%

22.480%

24.790%

2.7%@57
Safety
Employer
Normal Cost

13.980%

13.660%

14.500%

14.500%
UAL
$875,076
$1,012,162
$1,018,478
UAL
$7,273
$8,860
$0
UAL
$5,471
$6,984
$0 Fire
$5,492 Police
The City completed an actuarial study to comply with Governmental Accounting Standards Board (GASB) pronouncement 75 to determine the unfunded liability for other post-employment benefits (OPEB). The City paid $1,192,598 for retirement health benefits and sent another $378,920 for future retiree health benefits to the California Employers' Retiree Benefit Trust (CERBT) in order to comply with the City's Actuarially Determined Contribution (ADC).

A five-year utility rate increase was adopted by City Council on June 5, 2024, that increased water, wastewater, and solid waste rates by CPI not to exceed 3.5%. These rate changes complied with Prop 218 and were approved by the City Council. In fiscal year 2023-2024 utility rates were increased by a CPI of 2.4% as of July 1, 2025. The City will continue to evaluate current rates in the coming fiscal years to determine if the water, wastewater, and solid waste rates require additional adjusting in the future.
14 113
CITY OF LOS BANOS I JUNE 30, 2024
Management's Discussion and Analysis
The City began work on an impact fee study to determine if the current impact fees in place were cost effective or if there was a need for an increase to meet future demands on the City. The development impact fee justification study was completed on December 31, 2019. The revised impact fees were adopted by City Council on January 15, 2020 and became effective April 5, 2020. These impact fees were increased by CPI in September 2020. In Fiscal year 2023-24 the Impact Fees were increased by the Construction Price Index.

The local economy has been steadily improving over the last 5 years, however, there are indications of a looming recession due to rising inflation and tariffs. Our local economy has been enjoying an increase in property tax revenue, indicating an uptick in housing, however, consumer spending will probably stay static as the economy works through the existing macroeconomic cycles A continued conservative budget approach has been prepared for FY 2024-2025 in anticipation of any lingering effects of the forementioned economic issues.

REQUESTS FOR INFORMATION
This financial report is designed to provide the citizens, taxpayers, customers, investors, and creditors of the City with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional information, please contact:

City of Los Banos
Finance Department
520 J Street
Los Banos, CA 93635
(209) 827-7000
15 114

BASIC FINANCIAL STATEMENTS
16 115

GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 116
CITY OF LOS BANOS I JUNE 30, 2024
Statement of Net Position
ASSETS
Cash and investments
Restricted cash and investments with fiscal agents
Restricted cash and investments
Receivables:

Accounts receivable
Taxes receivable
Interest receivable
Intergovernmental receivables
Loans receivable
Internal balances
Inventories
Prepaid items
Capital assets, not being depreciated or amortized :

Land
Construction in progress
Capital assets, being depreciated and amortized:

Building and structures
Machinery and equipment
Infrastructure
Right-to-use IT subscription
Less: accumulated depreciation and amortization
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pensions
Deferred outflows from OPEB
Total deferred outflows of resources

LIABILITIES
Accounts payable and other current liabilities
Retainage payable
Unearned revenue
Interest payable
Deposits
Noncurrent liabilities:

Due within one year:

Compensated absences
IT subscription liability
Long-term debt
Due in more than one year:

Compensated absences
IT subscription liability
Long-term debt
Net pension liability
Net OPEB liability
Landfill closure and postclosure liability
Total liabilities
Governmental Business-Type
Activities Activities
$ 101,849,801 $ 56,279,469
699,877
32,426,531
674,045 1,671,410
3,763,175
345,020 256,784
780,588
1,878,119
54,871 {54,871)
48,974
244,999 7,132
32,160,818 8,067,666
3,577,116 2,316,502
48,886,126 10,185,032
24,478,256 13,358,750
157,834,471 76,779,405
72,733 13,854
(136,424,543) {54,310,190)
240,875,472 147,046,448
11,253,171 2,611,182
5,680,478 1,965,154
16,933,649 4,576,336
4,287,470 1,676,899
20,169 77,347
188,184 33,084
163,333
142,854 900,552
770,378 206,536
22,440 4,274
367,023
340,778 93,495
25,612 4,879
13,632,977
25,819,703 6,612,326
13,815,580 4,779,480
6,770,729
59,596,501 21,159,601
The notes to the basic financial statements are an integral part of this statement. 18 Total
$ 158,129,270
699,877
32,426,531
2,34S,455
3,763,175
601,804
780,588
1,878,119
48,974
252,131
40,228,484
5,893,618
59,071,158
37,837,006
234,613,876
86,587
{190,734,733)
387,921,920
13,864,353
7,645,632
21,509,985
5,964,369
97,516
221,268
163,333
1,043,406
976,914
26,714
367,023
434,273
30,491
13,632,977
32,432,029
18,595,060
6,770,729
80,756,102
117
CITY OF LOS BANOS I JUNE 30, 2024
Statement of Net Position
(Continued)

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions
Deferred inflows from OPEB
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Public safety
Highways and streets
Parks and recreation
Development projects
Capital projects
Economic development
Landfill closure and postclosure costs
Total restricted
Unrestricted
Total net position
Governmental Business-Type
Activities Activities
994,564 356,437
2,640,282 913,401
3,634,846 1,269,838
117,216,633 56,324,519
9,831,367
8,263,720
1,458,375
32,366,389
6,412,622 25,556,566
2,715,578
99,236
61,048,051 25,655,802
16,313,090 47,213,024
$ 194,577,774 $ 129,193,345
The notes to the basic financial statements are an integral part of this statement. 19 Total
1,351,001
3,553,683
4,904,684
173,541,152
9,831,367
8,263,720
1,458,375
32,366,389
31,969,188
2,715,578
99,236
86,703,853
63,526,114
$ 323,771,119
118
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Statement of Activities
Charges for
Expenses Services
Functions/Programs
Primary govern ment:

Governmental activities:

General government 2,403,080 $ 908,029
Public safety 23,368,656 3,325,211
Highways and streets 7,864,617 1,219,801
Parks and recreation 7,744,514 5,077,315
fconomic development 1,663,222 185,868
Interest on tong-term debt 2,834
Total governmental activities 43,046,923 10,716,224
Business-type activities:

Water 6,438,529 7,693,167
Wastewater 9,446,931 8,261,325
Airport 400,176 152,502
Solid waste 6,900,566 6,962,689
Total business-type activities 23,186,202 23,069,683
Total primary government 66,233,125 33,785,907
General revenues:

Taxes:

Property
Sales
Transient taxes and other
Franchise
Use of money and property
Motor vehicle in-lieu
Gain on sale of capital assets
Miscellaneous
Total general revenues
Change in net position
Net position - beginning
Net position - ending
Net (Expense) Revenue and
Pro~ram Revenues Chan&;es in Net Position
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities
114,537 (1,380,514)
548,533 (19,494,912)
5,762,247 2,888,665 2,006,096
147,807 (2,519,392)
(1,477,354)
(2,834)
6,310,780 3,151,009 122,868,910)
432,380 1,687,018
401,950 (783,656)
10,000 (237,674)
39,426 101,549
49,426 834,330 767,237
6,360,206 3,985,339 122,868,910) 767,237
13,288,031 7,590
14,530,025
630,572
727,742
6,057,749 3,735,821
58,484
265,257 78,557
455,591 385,321
36,013,451 4,207 289
13,144,541 4,974,526
181,433,233 124,218,819
194,577,774 $ 129,193,345
The notes to the basic financial statements are an integral part of this statement. 20 Total
11,380,514)
(19,494,912)
2,006,096
12,519,392)
(1,477,354)
(2,834)
(22,868,910)
1,687,018
(783,656)
(237,674)
101,549
767,237
(22,101,673)
13,295,621
14,530,025
630,572
727,742
9,793,570
58,484
343,814
840 912
40 220 740
18,119,067
305,652,052
323/71,119
119

FUND FINANCIAL STATEMENTS
The funds described below were determined to be major funds by the City in fiscal year 2024. Individual non major funds may be found in the Combining Financial Statements and Schedules.

GENERAL FUND
This fund is the primary operating fund of the City. It accounts for normal recurring activities traditionally associated with government, which are not required to be accounted for in another fund. These activities are funded primarily by property taxes, sales and use taxes, interest and rental income, charges for services, and State grants.

IMPACT FEES SPECIAL REVENUE FUND
This fund accounts for fees collected from developers to cover the anticipated costs of improvements that will be necessary as a result of the impact the development has on the City.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME GRANTS SPECIAL REVENUE FUND This fund accounts for certain designated projects paid for with Community Development Block Grant (CDBG) and HOME Investments Partnership Program (HOME) Federal program monies received from the State, along with repayments of CDBG and HOME loans.

STREETS AND ROADS SPECIAL REVENUE FUND
These funds are used for the maintenance, repair, and improvements of the City's 136 miles of streets, 5 miles of alleys, 272 miles of curbs and gutters, and 262 miles of sidewalks. Street services accomplishes a wide range of duties that include pavement management, concrete improvements, sidewalk maintenance, painting street and curb markings, traffic signs and signals, bridges, minor construction, flood control, and traffic surveys.

PUBLIC SAFETY SPECIAL REVENUE FUND
This fund accounts for a half-cent sales tax approved by local citizens in November 2004 by 77.9%. This measure passed is to be used for 911 services, Police, and Fire Protection. These funds are split 50/50 with the Police and Fire Departments.

These funds also account for revenues received for public safety grants, impact fees and community facility districts.

CAPITAL GRANTS CAPITAL PROJECTS FUND
This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.
21 120
CITY OF LOS BANOS I JUNE 30, 2024
Governmental Funds
Balance Sheet
Capital
Projects
Special Revenue Funds Fund
COBG Non major
Impact and Home Streets and Public Capital Governmental General Fees Grants Roads Safet:t Grants
ASSETS
Cash and Investments 43,600,608 s 32,668,456 827,122 7,693,931 s 9,235,524 5,7ll,084 Restricted cash with fiscal agents 699,877
Accounts receivable 332,903 48,259 7,632 240,423 14,135 Taxes receivable 2,657,523 320,878 69S,566
Interest receivable 147,278 109,484 2,705 27,225 31,085 18,346 Intergovernmental receivables 126,351 654,237
Prepaid items 1,066 243,400
loans re ceivable l,878,ll9
Total assets s 46,865,729 s 33,723,836 $ 2,715,578 8,282,457 $ 9,976,310 $ 6,429 307

LIABILITIES
Accounts payable $ 2,907,021 s 826,266 37,924 $ 144,943 $ 16,685 s Unearned revenue Retainaee payable 20,169
Deposits 142,854
Total liabilities 3,049,875 846 435 37,924 144 943 16,685

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 267,612
Unavailable revenue - loans 1,878,119
Total deferred inflows of resources 267,612 1,878,119

FUND BALANCES
Nonspendable 1,066 243,400
Restricted 32,366,389 837,459 8,244,533 9,831,367 6,412,622 Committed 8,276,926
Assigned 13,313,123
Unassigned 22,224,739
Total fund balances 43,SlS,854 32,609.789 837,459 8 244,533 9,831,367 6,412,622 Total liabilities, deferred inflows of
resources and fund balances 46,865,729 $ 33,723,836 s 2,71S,S78 $ 8,282,457 $ 9,976,310 $ 6,429 307 $ The notes to the basic financial statements are an integral part of this statement. 22 Funds
1,806,833
30,693
89,208
8,067
1,934,801
288,310
188,184
476,494
1,477,562
{19,255)
1,458,307
1,934,801
Tota l
Governmental
Funds
101,543,558
699,877
674,045
3,763,175
344,190
780,588
244,466
1,878,119
109,928,018
4,221,149
188, 184
20,1 69
142,854
41S72,356
267,612
1,878,ll9
2 145 731
244,466
59,169,932
8,276,926
13,313,123
22,205,484
103,209,931
s 109,928,018
121
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances - governmental funds $ 103,209,931
Capital assets used in governmental activities are not current assets or financial resources and, therefore, were not reported in the governmental funds.

Pension related deferrals are reported as deferred outflows and inflows of resources on the Statement of Net Position.

OPEB related deferrals are reported as deferred outflows and inflows of resources on the Statement of Net Position.

Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds.

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds.

Net pension liability
Net OPEB liability
Compensated absences
IT subscription liability
Long-term debt
Interest payable on long-term debt does not require the use of current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds balance sheet.

Internal service funds are not governmental funds; however, they are used by management to charge the costs of certain activities, such as fleet maintenance, information technology, and retiree health benefits to individual governmental funds. The net current assets of the internal service funds are therefore included in governmental activities in the following line items of the Statement of Net Position:

Cash and investments
Interest receivable
Prepaid items
Capital assets, net of accumulated depreciation
Deferred outflows from pensions
Deferred outflows from OPEB
Accounts payable and other current liabilities
Compensated absences
Net pension liability
Net OPEB liability
Deferred inflows from pensions
Deferred inflows from OPEB
Internal balances
Net position of governmental activities $
The notes to the basic financial statements are an integral part of this statement. 23 130,290,250
9,910,664
2,935,200
2,145,731
(24,818,558)
(13,338,449)
{1,084,281)
(48,052)
{14,000,000)
(163,333)
306,243
830
533
294,727
395,348
196,180
(66,321)
(26,875)
(1,001,145)
(477,131)
{47,405)
(91,184)
54,871
194,577,774
122
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances Capital
Projects
Seecial Revenue Funds Fund
CDBG Nonmajor
Impact and Home Streets and Public Capital Governmental General Fees Grants Roads Safet:t: Grants Funds

REVENUES
Taxes:

Property 11,460,593 $ 1,827,440
Sales 10,570,537 1,595,028 3,959,488
Franchise 727,742
Other 630,572
Licenses and permits 1,708,015
Intergovernmental 383,497 1,576,855 3,558,210 209,717
Charges for services 2,255,076 3,479,779 13,803 3,259,GOS Fines 45,532
Use of property and money 2,887,958 1,542,719 39,179 354,371 380,156 781,127 72,239 loan repayments 54,987
Miscellaneous 431,773 2,380 1,320 479 19 711 578
Total revenues 31,101,295 6,601,733 95,486 5,508,088 6,410 315 781,705 3,331,844 EXPENDrTURES
Current:

General government 2,056,173
Public safetv 17,353,434 88,096 3,597,294
Highways and streets 694,218 974,970 1,675,542
Parks and recreation 3,891,877 1,833 2,677,630
Economic development 1,481,145 4,021
Debt service:

Principal 24,681
Interest and fiscal charges 2,834 308,000
Capital outlay:

General government 68,573 891,764
Public safety 951,524 1,681,433 455,BOS 6,607,474
Highways and streets 40,004 95,620 4,340,049
Parks and recreation 1,062,968 762,124 296,449
Economic development 317,794
Total expenditures 27,945,225 4,495,840 4,021 6,015 591 4,053,099 6,915,474 2,974,079 Excess (deficiency) of revenues over
(under) expenditures 3,156,070 2,105,893 91,465 !507,503) 2,357,216 (6,133,769) 357,765

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 39,045 215,148 11,064 Insurance recoveries 114,537
Transfers in 775,000 260,000
Transfers out (260,000) (775,000)
Total other financing sources (uses) (106,418) (559,852) 11,064 775,000 260,000 Net change in fund balances 3,049,652 1,546,041 91,465 (507,503) 2,368,280 (5,358,769) 617,765 Fund balances (deficits) - beginning 40,766,202 31,063,748 745,994 8,752,036 7,463,087 11,771,391 840,542 Fund balances (deficits) - ending 43,815,854 32,609,789 837,4S9 8,244,533 9 831,367 6,412,622 $ 1,458,307 The notes to the basic financial statements are an integral part of this statement. 24 Tot.ii
Governmental
Funds
$ 13,288,033
16,125,053
727,742
630,572
1,708,015
5,728,279
9,008,263
45,532
6,057,749
54,987
456,241
53,830,466
2,0SG,173
21,038,824
3,344,730
6,571,340
1,485,166
24,681
310,834
960,337
9,696,236
4,475,673
2,121,541
317 794
52,403,329
1,427,137
265,257
114,537
l,03S,OOO
(1,035,000)
379,794
1,806,931
101,403,000
103,209,931
123
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are capitalized and allocated over their estimated useful lives, and reported as depreciation expense.

The capital outlay expenditures are, therefore, added back to fund balance.

Depreciation and amortization expense is deducted from the fund balance.

Depreciation expense is net of internal service fund depreciation of $59,103.

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of longterm debt consumes the current financial resources of governmental funds .

Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Accrued interest payable on long-term debt is reported in the government-wide statement of activities, but does not require the use of current financial resources. This amount represents the change in accrued interest payable not reported in governmental funds.

Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Changes to net OPEB liability and OPEB related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Some amounts included in the statement of activities do not provide or require the use of current financial resources and, therefore, are not reported as revenues or expenditures in the governmental funds (net change).

Unavailable revenue
Deferred loans
Compensated absences
Internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance, information technology, and retiree health benefits to individual funds. The portion of net revenue (expense) of these internal service funds arising out of the transactions with governmental funds is reported with governmental activities because they service those activities. $ 1,806,931
19,427,723
(6,291,293)
24,681
(35,000)
(1,815,415)
112,904
267,612
(87,420)
(241,084)
(25,098}
Change in net position of governmental activities $ 13,144,541 The notes to the basic financial statements are an integral part of this statement. 25 124

MAJOR PROPRIETARY FUNDS
Proprietary funds account for the City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City reported all of its enterprise funds as major funds in fiscal year 2024.

WATER
Accounts for activities associated with the acquisition or construction of water facilities and production, distribution, and transmission of potable water to users.

WASTEWATER
Accounts for activities associated with the acquisition or construction, and operation and maintenance of wastewater facilities for drainage, treatment, and disposal of sanitary wastewater.

AIRPORT
Accounts for activities associated with the operations and capital improvements of the City's municipal airport.

SOLID WASTE FUND
Accounts for activities associated with the collection and disposal of refuse throughout the City.

INTERNAL SERVICE FUNDS
Accounts for financial transactions related to the City's fleet maintenance and repairs, information technology services, and retiree health programs. These services are provided to other departments or agencies of the City on a cost reimbursement basis.
26 125
CITY OF LOS BANOS I JUNE 30, 2024
Proprietary Funds
Statement of Net Position
Business-Type Activities - Entererise Funds
Water Wastewater Airport Solid Waste Total
ASSETS
Current assets:

Cash and investments $ 33,414,441 16,305,270 7901784 $ 5,768,974 56,279,469 Restricted cash and investments 13,660,809 11,895,757 6,869,965 32,426,531 Accounts receivable 446,376 580,936 46,988 597,110 1,671,410 Interest receivable 139,073 79,142 2,547 36,022 256,784 Inventories 11,340 37,634 48,974
Prepaid items 533 6,066 533 7,132
Total current assets 47 672 572 28,867171 877,953 13,272,604 90,690,300 Noncurrent assets:

Capital assets:
land 760,822 7,306,844 8,067,666
Construction in progress 176,711 2,053,810 85,981 2,316,502 Buildings and improvements 381,807 9,095,350 669,767 38,108 10,185,032 Machinery and equipment 6,627,005 3,844,087 451,584 2,436,074 13,358,750 Infrastructure 34,225,556 39,751,013 2,782,918 19,918 76,n9,405 Right-to-use IT subscription 13,854 13,854
Less: accumulated depreciation and amortization (21,577,783) (27,843,879) (3,231,308} (1,657,220) (54,310,190) Total noncurrent assets 20,594,118 34 207 225 672,961 936,715 56,411019 Total assets 68,266,690 63 074 396 1550,914 14,209,319 147101319

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pensions 1,004,687 940,051 666,444 2,611,182 Deferred outflows from OPES 693 342 712,737 559,075 1,965,154 Total deferred outflows of resources 1,698,029 1,652,788 1,225,519 4,576,336

LIABILITIES
Current liabilities:

Accounts payable and other current liabilities 410,429 519,544 7,312 739,614 1,676,899 Reti:linage payable 77,347 77,347
Unearned revenue 33,084 33,084
Deposits 891,972 5,000 3,580 900,552
IT subscription liability 4,274 4,274
Compensated absences 83,783 64,383 58,370 206,536
Total current liabilities 1,386,184 666,274 10 892 835,342 2,898,692 Noncurrent liabilities:

IT subscription liability 4,879 4,879
Compensated absences 33,969 31,075 28,451 93,495
Net pension liability 2,544,180 2,380,501 1,687,645 6,612,326 Net OPEB liability 1,686,288 1,733,457 1,359,735 4,779,480 Landfill closure and postclosure liability 6,770729 6 770,729 Total noncurrent liabilities 4,264,437 4 145 033 9,851,439 18,260,909 Total liabilities 5 650,621 4,811,307 10,892 10,686 781 21,159,601

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions 135,147 126,929 94,361 356,437 Deferred inflows from OPES 322 265 331 279 259,857 913,401 Total deferred inflows of resources 457,412 458 208 354,218 1,269 838

NET POSITION
Net investment in capital assets 20,594,118 34,129,878 672,961 927,562 56,324,519 Restricted for capital projects 13,660,809 11,895,757 25,556,566 Restricted for landfill closure and postclosure costs 99,236 99,236 Unrestricted 29 601 759 13 432 034 867,061 3,367 041 47 267,895 Total net position $ 63,856,686 $ 59,457,669 $ 1,540,022 $ 4,393,839 129,248,216 Adjustment to report the cumulative internal balance for the net effect of the acttvity between the internal service funds and the enterprise funds overtime (54,871) Net position of business-type activities (page 20) $ 129,193,345 The notes to the basic financial statements are an integral part of this statement. 27 Governmental
Activities -
Internal Service
Funds
306,243
830
533
307 606
104,738
1,497,842
(1,307,853}
294 727
602 333
395,348
196,180
591528
66,321
19,398
85,719
7,477
1,001,145
477,131
1485 753
1,571,472
47,405
91,184
138,589
294,727
(810,927}
$ (516,200)
126
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position Business-Type Activities - Entererise Funds
Water Wastewater Aireort Solid Waste Total
Operating revenues:

Water charges $ 7,693,167 $ $ $ $ 7,693,167
Wastewater charges 8,261,325 8,261,325
Solid waste charges 6,962,689 6,962,689
Airport charges 152,502 152,502
Interdepartmental charges
Miscellaneous 170,240 142,304 299 2,968 315,811
Total operating revenues 7,863,407 8,403,629 152,801 6,965,657 23,385,494 Operating expenses:

Personnel services 2,091,989 2,109,881 22,344 1,547,805 5,772,019 Contractual services 874,950 4,417,864 15,294 3,839,657 9,147,765 Utilities 1,130,422 311,296 140,949 140,412 1,723,079
Repairs and maintenance 537,248 679,632 39,649 831,577 2,088,106 Insurance 147,356 111,342 22,293 77,382 358,373
Other supplies and expenses 416,467 409,895 3,688 108,705 938,755 Depreciation and amortization 1,194,312 1,401,834 92,652 252,092 2,940,890 Total operating expenses 6,392,744 9,441,744 336,869 6,797,630 22,968,987 Operating income (loss) 1,470,663 (1,038,115) (184,068) 168,027 416,507 Nonoperating revenues (expenses):

Investment earnings 1,913,453 1,175,017 36,702 472,164 3,597,336 Interest and fiscal charges (245) (245)
Rental income 34,965 103,520 138,485
Intergovernmental revenue 10,000 39,426 49,426
Property tax revenue 7,590 7,590
Gain (loss) on sale of assets (7,295) 21,953 (63,307) 21,904 (26,745) Landfill closure fees
Landfill closure/postclosure change
in estimate (90,513) (90,513)
Agricultural sales 69,510 69,510
Total nonoperating revenues (expenses) 1,906,158 1,301,445 94,505 442,736 3,744,844 Income (loss) before capital contributions 3,376,821 263,330 (89,563) 610,763 4,161,351 Capital contributions 432,380 401,950 834,330
Total capital contributions 432,380 401,950 834,330
Change in net position 3,809,201 665,280 (89,563) 610,763 4,995,681 Net position - beginning 60,047,485 58,792,389 1,629,585 3,783,076 Net position - ending $ 63,856,686 $ 59,457,669 $ 1,540,022 $ 4,393,839 Adjustments for the net effect of the current year activity between the internal service funds and the enterprise funds (21,155) Changes in net position of business-type activities (page 20) $ 4,974,526 The notes to the basic financial statements are an integral part of this statement. 28 Governmental
Activities -
Internal Service
Fund
$
3,263,796
81 3,263,877
2,349,952
210,708
332,007
368,947
21,110
45,997
59,103
3,387,824
(123,947)
55,928
21,766
77,694
(46,253)
(46,253)
(469,947)
$ (516,200)
127
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Cash Flows
Business-Type Activities - Entererise Funds
Water Wastewater Airport Solid Waste

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 7,696,506 8,272,729 148,553 $ 6,890,159 $ Receipts from interfund services provided
Payments to suppliers (3,094,267) (5,817,256) (218,012) (4,699,823) Payments to or on beha If of employees for services (2,083,267) (2,006,142) (22,344) (1,515,554) Receipts from other operating revenues 170,240 142,304 299 2,968 Net cash provided by (used for) operating activities 2,689,212 591,635 (91,504) 677,750

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Advances to other funds 155,000
Property taxes and grants received 17,590 16,960
Agricultural sales - co-op 69,510
Net cash provided by (used for) noncapital financing activities 155,000 69,510 17 590 16,960

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Principal payments on subscription liabilities (46,162) (4,701) Acquisition of capital assets (771,017) (2,430,085) (49,445) (57,267) Proceeds from the sale of assets 52,770 21,953 21,904
Interest paid (245)
Net cash provided by (used for) capital and related
financing activities (764,409) (2,408,132) (49,445) (40,309)

CASH FLOWS FROM INVESTING ACTIVITIES
Rental receipts 34,96S 103,520
Investment earnings (losses) 1,869,471 1,152,163 36,168 456,644 Net cash provided by (used for) Investing activities 1,869,471 1,187,128 139,688 456,644 Net increase (decrease) in cash and cash equivalents 3,949,274 (559,859) 16,329 1,111,045 Cash and cash equivalents - beginning 43,125,976 28,760,886 774,455 11,527,894 Cash and cash equivalents - ending $ 47,075,250 28,201,027 790,784 s 12,638,939 s RMS:HJCi!iill0n Qf 0Qeratin1 Income flossl to Cash FIQW::i Prgvided 8~ tUt~d Eor! Q~r~tlng Activities Operating lncome (loss) $ 1,470,663 $ (1,038,115) $ (184,068) $ 168,027 $ Adjustments to reconcile operating Income (loss) to
net cash provided by {used for) operating activities:

Depreciation and amortlzation expense 1,194,312 1,401,834 92,6S2 252,092 Landfill closure/postclosure change in estimate (90,513) (Increase) decrease in:

Accounts receivable 25,759 11,404 (3,949) (72,530)
Inventories 851
Prepaid items (389) 42,246 (447)
Deferred outflows of resources for pensions 69,796 62,889 88,009 Deferred outflows of resources for OPEB (294,880) (330,262) (262,972) Increase (decrease} in:

Accounts payable and other liabilities 12,565 25,033 3,010 388,870 Retainage payable 45,494
Customer deposits (22,420)
Compensated absences 7,386 10,876 8,496
Net pension liability 14,749 19,699 (88,179)
Net OPES liability 377,711 477,380 387,314
Deferred inflows of resources for pensions (94,154) (89,785) (67,37S) Deferred inflows of resources for OPEB (71,886) {47,058) {33,042) Net cash provided by (used for) operating activities $ 2,689,212 $ 591,635 $ !91,504) $ 677,750 S:thedule of NQn-Cash ca eltal and Financial Related Ag:ivili~~ Capltal contributions $ 432,380 $ 401,950 $ $ - $
The notes to the basic financial statements are an integral part of this statement. 29 Governmental
Activities -
Internal Service
Total Fund
23,007,947 $
3,263,796
(13,829,358) (989,910)
(5,627,307) (2,225,730 1
315,811 81
3,867,093 48,237
155,000
34,550
69 510
259,060
(50,863)
(3,307,814) (152,202)
96,627 21,766
(245)
(3,262,295) (130,436)
138,485
3,514,446 55,990
3,652,931 55,990
4,516,789 (26,209)
84,189,211 332,452
88,706,000 $ 306,243
416,507 $ (123,947)
2,940,890 59,103
(90,513)
(39,316)
851
41,410 (516)
220,694 (23,382)
(888,114) (9S,729)
429,478 (10,625)
45,494
(22,420)
26,758 9,774
(53,731) 125,172
1,242,405 147,244
(251,314) (30,677)
(lSl,986) {8,180)
3,867,093 $ 48,237
834,330 $
128

FIDUCIARY FUNDS
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City administers the activity of a private-purpose trust fund and a custodial fund. Fiduciary funds are not reflected in the government-wide statements because the resources of those funds are not available to support the City's own programs.

LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND This fund is used to account for assets and liabilities of the former Los Banos Designated Local Authority, as Successor Agency to the Redevelopment Agency of the City of Los Banos until they are distributed to other units of state and local government as a result of the dissolution of the redevelopment agency.

NSP IMPOUND CUSTODIAL FUND
A custodial fund is used to account for assets held by the City as a custodian for individual homeowners participating in the Habitat Neighborhood Stabilization Program by collecting and disbursing property taxes and insurance. The financial activities of this fund are excluded from the entity-wide financial statements but is presented in separate Fiduciary Fund financial statements.
30 129
CITY OF LOS BANOS I JUNE 30, 2024
Fiduciary Funds
Statement of Fiduciary Net Position
ASSETS
Cash and investments
Accounts receivable
Loans receivable
Tota I assets

LIABILITIES
Accounts payable
Interest payable
Long-term liabilities:

Due within one year
Due in more than one year
Total liabilities

NET POSITION (DEFICIT)
Restricted for:

Net position (deficit) held in trust for the retirement of obligations of the Redevelopment Successor Agency
Individuals and other organizations
Total net position (deficit)
Los Banos
Redevelopment
Successor Agency
Private-Purpose NSP Impound
Trust Fund Custodial Fund
$ 1,263,182 $ 32,769
1,886
84,245
1,347,427 34,655
37,749 29,718
233,047
1,190,466
15,455,717
16,916,979 29,718
(15,569,552)
4,937
$ (15,569,552) $ 4,937
The notes to the basic financial statements are an integral part of this statement. 31 130
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Redevelopment
Successor Agency
Private-Purpose NSP Impound
Trust Fund Custodial Fund

ADDITIONS
Collections on behalf of others:

Property taxes $ 1,934,780 $
Impound collections 21,478
Total collections on behalf of others 1,934,780 21,478
Total additions 1,934,780 21,478

DEDUCTIONS
Administrative expense 111,691
Interest expense 706,034
Payments of property insurance 8,034
Payments of property taxes 13,216
Total deductions 817,725 21,250
Net increase (decrease) in fiduciary net position
before special item 1,117,055 228
Special item (16,686,607)
Changes in net position (15,569,552) 228
Net position - beginning 4,709
Net position - ending $ (15,569,552) $ 4,937
The notes to the basic financial statements are an integral part of this statement. 32 131

NOTES TO THE BASIC FINANCIAL STATEMENTS
33 132
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Los Banos, California (the City) was incorporated as a general law city on May 8, 1907. The City operates under the Council-Manager form of government consisting of five elected council members, including the Mayor and a City Manager appointed by the City Council. The City provides the following services as authorized: public safety (police and fire), sanitation (solid waste disposal, sanitary, wastewater, and storm water utilities), water utility, community and economic development, streets, parks and recreation, and general administrative services.

The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. Significant accounting policies are summarized below:

A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of Los Banos as the primary government. The City does not have any component units.

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 Government 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 the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
34 133
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported 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 normal recurring activities traditionally associated with government, which are not required to be accounted for in another fund. These activities are funded primarily by property taxes, sales and use taxes, interest and rental income, charges for services and State Grants.

Impact Fees Special Revenue Fund - This fund accounts for fees collected from developers to cover the anticipated costs of improvements that will be necessary as a result of the impact the development has on the City.

Community Development Block Grant {CDBG} and Home Grants Special Revenue Fund - This fund accounts for certain designated projects paid for with Community Development Block Grant (CDBG) and HOME Investments Partnership Program (HOME) Federal program monies received from the State, along with repayments of CDBG and HOME loans.

Streets and Roads Special Revenue Fund - These funds are used for the maintenance, repair, and improvement of the City's 123 miles of streets, S miles of alleys, 227 miles of curbs and gutters, and 216 miles of sidewalks. Street Services accomplishes a wide range of duties that include pavement management, concrete improvement, sidewalk maintenance, painting street and curb markings, traffic signs and signals, bridges, minor construction, flood control, and traffic surveys.

Public Safety Special Revenue Fund - This fund accounts for a half-cent sales tax approved by local citizens in November 2004 by 77.9%. This measure was passed to be used for 911 services, police, and fire protection. These funds are split 50/50 with the Police and Fire Departments. These funds also account for revenues received for public safety grants, impact fees and community facility districts.

Capital Grants Capital Projects Fund - This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

The City reported all of its enterprise funds as major funds in the accompanying financial statements:

Water Fund - Accounts for activities associated with the acquisition or construction of water facilities and production, distribution, and transmission of potable water to users.

Wastewater Fund - Accounts for activities associated with the acquisition or construction, operation and maintenance of wastewater facilities for drainage, and treatment and disposal of sanitary wastewater.

Airport Fund - Accounts for activities associated with the operations and capital improvements of the City's municipal airport.

Solid Waste Fund - Accounts for activities associated with the collection and disposal of refuse throughout the City. 35 134
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
The City also reports the following fund types:

Internal Service Funds - Accounts for financial transactions related to the City's fleet maintenance and repairs, information technology services, and retiree health programs. These services are provided to other departments or agencies of the City on a cost reimbursement basis.

Fiduciary Funds - A Private Purpose Trust Fund is used to record the assets, liabilities, and activities of the Successor Agency. A custodial fund is used to account for assets held by the City as a custodian for individual homeowners participating in the Habitat Neighborhood Stabilization Program by collecting and disbursing property taxes and insurance. The financial activities of these funds are excluded from the entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.

D. Basis of Accounting
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues other than grant reimbursements reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. The City considers all grant reimbursement revenues reported in the governmental funds to be available if the revenues are collected within 180 days. Expenditures are recorded when the related liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions under capital leases are reported as other financing sources.

Those revenues susceptible to accrual at both the City-wide and Fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from entitlements and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

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 may be 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.

Certain indirect costs are included in program expenses reported for individual functions and activities.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's business-type activities and various other functions of the government. Elimination of these charges would distort the direct cost and program revenues reported for the various functions concerned. 36 135
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting (Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.

Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

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 ongoing operations. The principal operating revenues of the City's enterprise funds, and internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service 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.

E. Property Tax Revenues
Merced County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 31 and becomes delinquent on August 31.

The term "unsecured" refers to taxes on personal property other than real estate, land, and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.

F. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

G. Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments (including all restricted assets) with a maturity of three months or less when purchased to be cash equivalents. The City maintains a cash and investment pool that is available for use by all funds. As the proprietary funds' share of this pool is readily available when needed, this share is also considered to be a cash equivalent. Deposit assets in the proprietary funds are related to insurance and benefits and are not considered cash equivalents for purposes of the Statement of Cash Flows. 37 136
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Compensated Absences
City employees are granted vacation in varying amounts and sick leave at eight hours per month. In the event of termination, an employee is reimbursed for accumulated vacation and compensatory time off leave at various rates as determined by the employee personnel manual. The value of accumulated vacation allowance is accrued as appropriated for all funds. With respect to obligations of the governmental fund types, the amounts are presented in the governmentwide financial statements. Historically, the compensated absences liability for governmental activities has generally been liquidated by the General fund and other governmental funds.

Compensated absences activity for the year ended June 30, 2024 was as follows:

Governmental Business-Type
Activities Activities Total
Beginning balance $ 860,298 $ 273,273 $ 1,133,571
Additions 1,059,103 245,441 1,304,544
Payments (808,245) (218,683) (1,026,928)
Ending balance $ 1,111,156 $ 300,031 $ 1,411,187
Current portion $ 770,378 $ 206,536 $ 976,914
I. lnventorl£ of Supplies and Prepaid Items
Inventories are physically counted annually and valued at cost, on a first-in-first-out method, which approximates market value. Inventories consist of expendable supplies held on a consumption basis, wherein the cost is recorded as an expense at the time an item is consumed.

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

J. Subscription-Based Information Technologl£ Arrangements (SBITAs) Lessee: The City enters into noncancellable subscription-based information technology arrangements (SBITAs) for the acquisition of various information technology services. SBITAs are accounted for in accordance with GASB Statement No.

96. Upon commencement of a subscription, the City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized when their initial individual values are $25,000 or more. The subscription liability is initially measured at the present value of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, and any directly attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life. 38 137
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected subscription payments to present value, the subscription term, and the composition of subscription payments.

The City generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate charged by the provider is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs, which is the prime rate at the inception of the subscription.

The subscription term includes the noncancellable period of the subscription and subscription payments that the City is reasonably certain to make.

The measurement of subscription liability excludes any variable payments such as payments based on the number of user seats unless they depend on an index or a rate or are fixed in substance.

The City monitors changes in circumstances that would require a remeasurement of its SBITAs and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other intangible assets, and subscription liabilities are reported as liabilities on the Statement of Net Position.

This disclosure provides information on the accounting policies related to Subscription-Based Information Technology Arrangements (SBITAs) in accordance with GASB Statement No. 96 and should be read in conjunction with the accompanying financial statements.

K. Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).

L. Unavailable Revenue
In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.

M. 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 of Los Banos' (City) California Public Employees' Retirement System (Cal PERS) 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 Cal PERS. 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.
39 138
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. 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 Retirees Benefits 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
Measurement Date
Measurement Period
June 30, 2023
June 30, 2023
July 1, 2022 to June 30, 2023
NOTE 2- BUDGET AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The City Council reviews and adopts an annual budget for the General, Special Revenue, Capital Projects and Enterprise Funds. The City Council holds public hearings and may modify the appropriations by general approval. Budgeted amounts may be transferred between line items within departments with the City Manager's approval. The legal level of expenditure control in the funds is considered to be at the department level. Operating appropriations lapse at the end of each fiscal year.

The budget is reported on the same basis as the fund types and on a basis consistent with accounting principles generally accepted in the United States of America. Additional appropriations or other changes during the fiscal year may be submitted by the department for Council review and approval.

B. Deficit Fund Balance/Net Position
The following funds contained a deficit fund balance or net position as of June 30, 2024. The deficit net position in the Internal Service Funds is caused by each fund's portion of the City's pension and other postemployment benefits liabilities. In the event the pension and other postemployment benefits liabilities become due in the future, the remaining balances will be subsidized by the City through a transfer of funds.

Governmental Funds
HCD Grant Special Revenue Fund
Internal Service Funds
Fleet Maintenance
Information Technology
$ 19,255
644,218
133,929
40 139
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS
The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except cash and investments held by trustees so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

A. Policies
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a market value of 1S0% of the deposit, as collateral for these deposits. Under California Law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City-managed investments, regardless of their form.

The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end, and it includes the effects of these adjustments in income for that fiscal year.

Except as described below, the City pools idle cash from all funds for the purpose of maximizing interest through investment activities. Pooled investments do not include certain bond proceeds. Investments are carried at fair value with the exception of money market investments and certain nonparticipating guaranteed investment contracts, which are carried at cost. The fair value of investments is based on published market prices and quotations from major investment brokers.

The State Local Agency Investment Fund (LAIF) is an external investment pool established under California State statutes.

LAIF is not registered with the Securities and Exchange Commission. LAIF falls under the regulatory oversight of the State of California. Based on information obtained from the State of California, the investment in LAIF has been recorded at fair value.

Interest income on pooled investments is allocated on the basis of quarterly ending cash balances in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Water Fund, Wastewater Fund, Airport Fund, and Solid Waste Fund as required by law or as directed by the City Council adopted budget. The remainder or interest income is credited to all funds, as required by California Government Code. 41 140
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
B. Classifications
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of the City debt instruments or Agency agreements.

Primary Government:

Cash and investments
Restricted cash with fiscal agents
Restricted cash and investments
Cash and investments in primary government
Fiduciary Funds:

Cash and investments
Total cash and investments
Cash and investments as of June 30, 2024 consisted of the following:

Cash on hand and in bank
Cash with fiscal agents
Investments
Total cash and investments
$ 158,129,270
699,877
32,426,531
191,255,678
1,295,951
$ 192,551,629
$ 27,777,234
699,877
164,074,518
$ 192,551,629
Restricted cash and investments of $25,556,566 are held in the Water and Wastewater Enterprise Funds for future infrastructure impacted by development.

Restricted cash and investments of $6,869,965 are held in the Solid Waste Enterprise Fund to pay for landfill closure and postclosure costs.
42 141
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City's Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio In One Issuer Non-negotiable Certificates of Deposit 1 year No limit $250,000 Bankers' Acceptances 180 days No limit No Limit
U.S. Treasury Bills and Notes 5 years No limit No Limit U.S. Government Agency Securities 5 years No limit No Limit U.S. Government Sponsored Securities 5 years No limit No Limit Repurchase Agreements N/A No limit $1 Million
Commercial Paper 270 days No limit $1 Million
State Local Agency Investment Fund N/A No limit $50 Million per Account
Money Market Mutual Funds N/A No limit None
Insured Passbook on Demand Deposits
with Banks and Savings and Loans N/A No limit $250,000
D. Investments Authorized bl£ Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements.

Minimum
Maximum Credit
Authorized Investment Tyee Maturity Quality
Bankers' Acceptances 360 days A-1
U.S. Treasury Bills and Notes None N/A
State General Obligations None A
Municipal Obligations None Aaa/AAA
U.S. Government Agency Securities 3 years AAA
U.S. Government Sponsored Securities 3 years AAA
Federal Housing Administration Debentures None N/A
Repurchase Agreements 1 year A
Commercial Paper 270 days A-1+
State Local Agency Investment Fund N/A N/A
Money Market Fund N/A AAm
Defeasance Securities N/A N/A
Pre-funded Municipal Obligations None AAA
Investment Agreements N/A AA
Unsecured Certificates of Deposit 30 days A-1
CalTrust None N/A
43 142
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Normally, the longer the maturity of an investment, the greater sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date:

Investment Type
Held by City;
State Local Agency Investment Fund
Money Market Mutual Funds
Total investments
Cash with fiscal agents
Cash on hand and in bank
Total cash and investments
$
$
12 Months 13 to 24
or Less Months
53,140,824 $
110,933,694
164,074,518 $
25 to 36 More than
Months 36 Months Total
- $ - $ - $ 53,140,824
110,933,694
- $ $ 164,074,518
699,877
27,777,234
$ 192,551,629
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investments in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pooled share. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain State funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. At June 30, 2024, these investments matured in an average of 217 days.
44 143
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
F. 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 actual ratings as of June 30, 2024 were provided by Standard and Poor's investment rating system. The Local Agency Investment Fund was not rated as of June 30, 2024.

Investment Type AAAm Total
Held by City:

Money Market Mutual Funds $ 110,933,694 $ 110,933,694
Total $ 110,933,694 110,933,694
Not rated:

State Local Agency Investment Fund 53,140,824
Cash with fiscal agents 699,877
Cash on hand and in banks 27,777,234
Total cash and investments $ 192,551,629
G. Concentration of Credit Risk
The City's potential losses from credit risk are increased if a significant portion of its resources are invested in a single issuer. If the issuer did not make good on its obligation to the City, the impact could be potentially damaging. At June 30, 2024, the City did not have any investments in any one issuer, other than money market mutual funds and the Local Agency Investment Fund, which represent 5% or more of the total investments.

H. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a city will not be able to recover its deposits or will not be able to recover collateral securities that are in possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpart (e.g., brokerdealer) to a transaction, a city will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits and investments other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by the state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under the state law (unless so waived by the government unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

As of June 30, 2024, the carrying amount of the City's bank deposits was $25,427,675 and the respective bank balances totaled $28,427,675. Of the total bank balance, $500,000 was insured through the Federal Depository Insurance Company (FDIC). The remaining balance was collateralized with pooled securities held by the financial institution's trust department. These securities are held in the name of the financial institution and not that of the City. 45 144
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
I. Investment Valuation
Investments, including derivative instruments that are not hedging derivatives, 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. Fair value measurements are categorized based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City does not have any investments that are measured using Level 3 inputs. Fair value measurements of the City's investments are as follows:

Investment in the State Local Agency Investment Fund: valued at $53,140,824, based on the City's pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio. LAIF invests in numerous types of investments ranging from all levels in the fair value hierarchy. Accordingly, LAIF is not an investment type that can be categorized in any level in the fair value hierarchy.

Investment in the Money Market Mutual Funds is valued at $111,633,571. Money market funds have a maturity of less than one year and are presented at amortized costs, which approximates fair value. Since they are presented at amortized costs, they are not an investment type that can be categorized at any level in the fair value hierarchy.

NOTE 4-INTERFUND TRANSACTIONS
A. Due From/To Other Funds
Due From/To Other Funds represents short-term borrowings resulting from a fund's temporary need for additional cash.

Primarily, these amounts have been recorded when timing differences between when the services are provided and when they are paid for/reimbursed causes the funds to temporarily overdraw their share of pooled cash. These balances are generally expected to be repaid within the next few months and not longer than a 12-month fiscal operating cycle. As of June 30, 2024, there were no Due To/From Other Funds balances.

B. Advances Between Funds
In July 2012, the Water Enterprise Fund provided an interfund loan to the General Fund in the amount of $1,200,000 to pay off the City's 1993 Certificates of Participation and 2002 Lease Revenue Bonds early, thereby reducing future interest costs. The interfund advance bears an interest rate equivalent to the yield of the average quarterly investment portfolio or 1%, whichever is greater. The General Fund repaid $155,000 in principal during the fiscal year ended June 30, 2024.

The advance was paid in full as of June 30, 2024.

C. lnterfund Transfers
The following schedule summarizes the City's transfer activity for the year ended June 30, 2024:

Fund Making Transfer
General Fund
Impact Fees Fund
Fund Receiving Transfers
Assessment Districts Fund
Capital Projects Fund
(A) Supplement of funds for operational costs from the General Fund. (B) Transfer remaining funding for Police Department construction. 46 $
Amount
Transferred
260,000 (A)
775,000 (B)
$ 1,035,000
145
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 5- LOANS RECEIVABLE
At June 30, 2024, the City had the following loans receivable:

Governmental Activities:

Residential Rehabilitation Program
First-Time Home Buyer Program
Neighborhood Stabilization Program
Total
A. Residential Rehabilitation Program
Outstanding
Balance as of
June 30, 2024
$ 803,884
585,769
488,466
$ 1,878,119
The City administers a Housing Rehabilitation Loan Program using the Housing and Community Development Act Funds.

Under this program, residents with incomes below a certain level are eligible to receive low-interest loans, secured by deeds of trust, for construction work on their homes. Federal grants are used to fund these loans. Upon approval of loans, the City disburses the funds, and arranges for and collects repayments. As of June 30, 2024, outstanding loans of this program amounted to $803,884.

B. First-Time Home Buyer Program
The City along with Merced County Association of Governments (MCAG} administered a First-Time Home Buyer Program using the Housing and Community Development Act Funds. Under this program, residents with incomes below a certain level are eligible to receive low or no interest loans, secured by deeds of trust, for the purchase of their first home. The First-Time Home Buyer Program encourages those that would not be able to receive a bank loan due to low income to be able to purchase their own home. Upon approval of the loan, the City disburses the funds, and arranges for and collects repayments. As of June 30, 2024, outstanding loans of this program amounted to $585,769.

C. Neighborhood Stabilization Program
In fiscal year 2012-13, the City was awarded the Neighborhood Stabilization Program (NSP) grant from the State of California Housing and Community Development Department. The purpose of the NSP is to address the housing crisis occurring within the City by providing funds to purchase, rehabilitate, and resell vacant and foreclosed properties. The City entered into various loan agreements with residents, with zero interest and a maturity of 20/30 years. At June 30, 2024, loans outstanding totaled $488,466.
47 146
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 6 -CAPITAL ASSETS
Capital assets, which include land, equipment, buildings, construction in progress, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements and proprietary fund financial statements.

Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset's lives are not capitalized.

Equipment, buildings, and infrastructure of the City are depreciated using the straight-line method over the following estimated useful lives:

Machinery and equipment
Buildings, structures and improvements
Infrastructure
3-20 years
25-50 years
20-60 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.

A. Governmental Activities
Capital assets activity of the governmental activities for the year ended June 30, 2024 was as follows:

Balance Transfers/ Balance
June 30, 2023 Additions Deletions Reclassifications June 30, 2024 Governmental Activities:

Capital assets not being depreciated or amortized:

Land $ 32,160,818 $ $ $ $ 32,160,818
Construction in progress 22,595,650 12,849,645 (304,438) (31,563,741) 3,577,116 Total capital assets not being depreciated or amortized 54,756,468 12,849,645 (304,438) (31,563,741) 35,737,934 Capital assets being depreciated and amortized:

Buildings, structures and improvements 21,653,548 388,691 26,843,887 48,886,126 Machinery and equipment 21,346,826 2,381,416 (1,224,413) 1,974,427 24,478,256 Infrastructure 150,824,431 4,264,613 2,745,427 157,834,471 Right-to-use IT subscription 72,733 72,733
Total capital assets being depreciated and amortized 193,897,538 7,034,720 (1,224,413) 31,563,741 231,271,586 Less accumulated depreciation and amortization for:

Buildings, structures and improvements (9,046,924) (708,739) (9,755,663) Machinery and equipment (15,158,954) (1,150,825) 1,224,413 (15,085,366) Infrastructure (107,090,767) (4,467,865) (111,558,632)
Right-to-use IT subscription (1,914) (22,968) (24,882)
Total accumulated depreciation and amortization (131,298,559) (6,350,397) 1,224,413 (136,424,543) Total capital assets being depreciated and amortized, net 62,598,979 684,323 31,563,741 94,847,043 Governmental activities capital assets, net $ 117,355,447 $ 13,533,968 $ (304,438) $ $ 130,584,977 48 147
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 6 - CAPITAL ASSETS (Continued)
B. Business-Type Activities
Capital assets activity of the business-type activities for the year ended June 30, 2024 was as follows:

Balance Transfers/
June 30, 2023 Additions Deletions Reclassifications
Business-Type Activities:

Capital assets not being depreciated or amortized:

Land $ 8,067,666 $ $ $
Construction in progress 1,134,859 2,245,044 (91,399) (972 002) Total capital assets not being depreciated or amortized 9,202,525 2,245,044 (91,399) (972,002) Capital assets being depreciated and amortized:

Buildings, structures and improvements 10,062,987 86,101 35,944 Machinery and equipment 12,684,982 883,546 (267,038) 57,260 Infrastructure 74,945,064 955,543 878,798
Right-to-use IT subscription 88.935 (75,081)
Total capital assets being depreciated and amortized 97,781,968 1,925,190 (342,119) 972,002 Less accumulated depreciation and amortization for:

Buildings, structures and improvements (9,774,781) (109,387) Machinery and equipment 18,426,994) (851,849) 267,038
Infrastructure (33,434,198) (1,975,279)
Right-to-use IT subscription (15,381) (4,375) 15,016
Total accumulated depreciation and amortization (51,651,354) (2,940,890) 282,054 Total capital assets being depreciated and amortized, net 46,130,614 (1,015,700) (60,065) 972,002 Business-type activities capital assets, net $ 55,333,139 $ 1,229,344 $ (151,464) $ C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. allocated to each function or programs are as follows for the year ended June 30, 2024:

Depreciation Allocation
Governmental Activities:

General government
Public safety
Economic development
Parks and recreation
Highways and streets
Internal service fund
Total governmental activities
Business-type Activities:

Water
Wastewater
Airport
Solid Waste
Total business-type activities
$
$
$
$
49 121,956
737,696
44,550
1,405,381
3,981,711
59,103
6,350,397
1,194,312
1,401,834
92,652
252,092
2,940,890
Balance
June 30, 2024
$ 8,067,666
2,316,502
10,384,168
10,185,032
13,358,750
76,779,405
13,854
100,337,041
(9,884,168)
(9,011,805)
(35,409,477)
(4,740)
(54,310,190)
46,026,851
$ 56,411,019
The amounts
148
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 7 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs) AS A LESSEE In fiscal year 2023, the City entered a three-year SBITA as a lessee for OpenGov software, which has been recorded in the General Fund and Solid Waste Fund. An initial SBITA liability was recorded in the amount of $86,587 during fiscal year 2023. As of June 30, 2024, the value of the SBITA liability was $57,202. The city is required to make annual principal and interest payments of $29,936, $31,433, and $33,007, respectively. The SBITA has an interest rate of 8.25%. The software has a three-year subscription term. The value of the right-to-use software as of the end of the current fiscal year was $86,587 and had accumulated amortization of $29,622. In accordance with GASB 96, certain variable and other payments are not included in the measurement of the subscription liability. There were no outflows of resources recognized in the reporting period for variable and other payments.

In fiscal year 2023, the City entered into a five-year SBITA as lessee for Sensus software, which has been recorded in the Water Fund. An initial SBITA liability was recorded in the amount of $59,631 during fiscal year 2023. As of June 30, 2024, the agreement for the software was amended and no longer met the qualifications of a SBITA. The SBITA liability and related right-to-use asset was written off in fiscal year 2024. Subscription payments for this software arrangement are now expensed as incurred.

The future principal and interest SBITA payments as of June 30, 2024, are as follows:

Fiscal Years Opengov
Ending June 30 Principal Interest Total
2025 $ 26,714 $ 4,719 $ 31,433
2026 30,491 2,516 33,007
Total $ 57,205 $ 7,235 $ 64,440
NOTE 8 - LONG-TERM DEBT
In the government-wide financial statements and the proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts, including prepaid bond insurance, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Bond issuance costs are reported as debt service expenditures. 50 149
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 8- LONG-TERM DEBT (continued)
A. Current Vear Transactions and Balances
The following is a summary of the long-term liabilities' transactions of the City for governmental activities for the year ended June 30, 2024:

Original
Issue Balance Balance Current
Amount June 30, 2023 Additions Retirements June 30, 2024 Portion Governmental Activities
Direct Borrowings
IT subscription liability $ 72,733 $ 72,733 $ $ 124,681) $ 48,052 $ 22,440 iBank Financing Lease 14,000,000 14,000,000 14,000,000 367,023 Total Governmental Activity Debt $ 14,072,733 s 14,072,733 $ $ (24,681) $ 14,048,052 $ 389,463 The following is a summary of the long-term liabilities' transactions of the City for business-type activities for the year ended June 30, 2024:

Original
Issue Balance Balance Current
Amount June 30, 2023 Additions Retirements June 30, 2024 Portion Business-type Activities
Direct Borrowings
IT subscription liability $ 46,162 $ 46,162 $ 13,854 $ (50,863) $ 9,153 $ 4,274 Total Business-Type Activities Debt $ 46,162 $ 46,162 $ 13,854 $ (50,863) $ 9,153 $ 4,274 B. !Bank Financing Lease
On December 6, 2021, the City entered into a financing lease with California Infrastructure and Economic Development Bank (!Bank) for an amount not to exceed $14,000,000 ($13,336,944 for project uses and $663,056 for capitalized interest). The proceeds from this obligation will help finance the cost of constructing a new police station and finance interest payments. The capitalized interest payments commence February 1, 2021 thru February 1, 2024. The City paid the 1% origination fee from the General Fund. The financing lease has a fixed interest rate of 2.2% and payments are due every February 1 and August 1, commencing August 1, 2024 and maturing on August 1, 2051. In addition to the base rental payment that consists of principal and interest payments, commencing August 1, 2024, an additional rental payment of 0.3% of the outstanding principal component is due August 1 of each year thereafter. The additional rental payment is represented in its own column in annual payments required below. 51 150
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 8- LONG-TERM DEBT (Continued)
B. IBank Financing Lease (Continued)
As of June 30, 2024, the City has drawn down the full amount of $13,336,944 of the loan proceeds for project costs.

The City has certain reporting covenants required by the financing lease including providing the annual audited financial statements, annual budget approved by City Council, and annual certification of compliance. Should the City fail to cure any reporting covenant noncompliance within 30 days, an amount of $1,000 shall automatically be imposed monthly as liquidated damages charged to the City and shall continue to be imposed throughout the liquidated damages period.

The City is not permitted to prepay all or a portion of the outstanding principal until December 6, 2031, which is ten years after the effective date.

The annual debt service requirements for the City's financing lease are as follows:

Base Additional
For the Years Principal Interest Rental Rental Total
Ending June 30 Component Component Payments Payments Payments 2025 367,023 303,963 670,986 42,000 712,986
2026 375,098 295,799 670,897 40,899 711,796
2027 383,350 287,456 670,806 39,774 710,580
2028 391,784 278,930 670,714 38,624 709,338
2029 400,403 270,216 670,619 37,448 708,067
2030-2034 2,138,088 1,213,510 3,351,598 137,514 3,489,112 2035-2039 2,383,857 965,038 3,348,895 142,169 3,491,064 2040-2044 2,657,875 688,005 3,345,880 105,608 3,451,488 2045-2049 2,963,392 379,128 3,342,520 64,843 3,407,363
2050-2052 1,939,130 64,610 2,003,740 19,393 2,023,133
Total $ 14,000,000 $ 4,746,655 $ 18,746,655 $ 668,272 $ 19,414,927 NOTE 9- LANDFILL CLOSURE AND POSTCLOSURE CARE COST
State and Federal laws and regulations require the City to clean close its landfill site (due to subsurface hydrologic condition - the site operated under waste discharge requirements) when the landfill stopped accepting waste in 1991. The City received a clean closure extension until December 2017. The City has requested a review of the clean closure requirement by the State Water Resource Control Board and has asked to pursue alternative closure methods. Due to this request, the City's requirement to close the landfill was placed on hold until the State Water Resource Control Board finished reviewing the City's request. The State Water Resource Control Board approved an alternative method of clean closure for the landfill at the end of thi s fiscal year. Clean closure is expected to begin in fiscal year 2025.

Most of the costs associated with closure and post closure care will be the construction cost associated with the clean closure process directly. The closure costs are ongoing with the start of the construction planned for fiscal year 2024- 2025. Due to the change in construction materials, the City anticipates ongoing maintenance costs will be virtually eliminated and thus, they expect no annual costs.
52 151
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 9 - LANDFILL CLOSURE AND POSTCLOSURE CARE COST (Continued) The City reports a portion of these closure and post closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $6,770,729 reported as landfill closure and postclosure care liability at June 30, 2024, represents the cumulative amount reported to date based on the use of 100 percent of the estimated capacity of the landfill. These amounts are based on what it would cost to perform all closure and postclosure care. Actual cost may be higher due to inflation, changes in technology, or changes in regulations.

The City is required by State and Federal laws and regulations to have financial assurance in place to finance closure and post closure care. The City has chosen to set up and fund a trust in order to meet this obligation.

In fiscal year 2024, the City received a revised estimate for the City's liability of post-closure costs which was approved by the State Water Resource Control Board. The June 30, 2024 financial statements reflect this updated estimate as it best reflects the City's liability for these costs. At June 30, 2024, there is $6,869,96S restricted for closure and post closure costs. The City expects to fund any additional closure and post closure costs from revenues of the solid waste collection operations, interest earnings on the accumulated assets held in trust, and internal financing if necessary.

NOTE 10 - NET POSITION AND FUND BALANCES
A. Net Position
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. It is the City's policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. In the government-wide financial statements, net position is classified in the following categories:

Net investment in capital assets groups all capital assets netted by related debt into a component of net position.

Restricted net position presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. These restrictions principally include developer fees received for use on capital projects, debt service requirements, and grant-funding sources.

Unrestricted net position presents the net position of assets that do not meet the definition of "net investment in capital assets" or "restricted net position",
53 152
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 10 - NET POSITION AND FUND BALANCES (Continued)
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities.

The City's fund balances are classified in accordance with Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable fund balances represents balances set aside to indicate items that do not represent available spendable resources even though they are a component unit of assets. Fund balances are required to be maintained intact such as Permanent Funds, and assets not expected to be converted to cash such as prepaids, notes receivable, and land held for redevelopment are included.

Restricted fund balances have external restrictions imposed by creditors, granters, contributors, laws, regulations, or enabling legislation, which requires the resources to be used only for a specific purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances are amounts that can only be used for specific purposes pursuant to constraints imposed by City Council, the City's highest level of decision-making authority, through an ordinance or resolution (equally binding). These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified uses through the same type of formal action taken to establish the commitment.

Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the direction of the City Council or its designee. This category includes encumbrances and nonspendables when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of special revenue, capital projects and debt service funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds. 54 153
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 10- NET POSITION AND FUND BALANCES (Continued)
B. Fund Balances (Continued)
Detailed classifications of the City's fund balances as of June 30, 2024 are as follows:

CDBG
Impact and Home Streets and Public
Fund Balance Classifications General Fees Grants Roads Safety Nonspendabfe:

Items not in spendable form:

Prepaid items l,066 243,400 $ $
Total nonspendable l,066 243,400
Restricted for:

Public safety 9,831,367
Highways and streets 8,244,533
Parks and recreation
Development projects 32,366,389
Capital projects
Economic development 837,459
Total restricted 32,366,389 837 459 8,244,533 9,831,367 Committed for:

Public safety 200,960
Police Station 8,000,000
Economic development 75,966
Total committed 8 276 926
Assigned for:

General government 9,637,470
Public safety 1,614,107
Economic development 61,546
Pension reserve 2,000,000
Total assigned 13,313,123
Unassigned: 22,224,739
Total Fund Balances 43,815,854 32,609,789 $ 837,459 $ 8,244,533 9,831,367 (A) Various operating costs, vehicle purchases and capital projects Other
Capital Governmental
Projects Funds Total
$ $ $ 244,466
244,466
9,831,367
19,187 8,263,720
1,458,375 1,458,375
32,366,389
6,412,622 6,412,622
837,459
6,412,622 1,477,562 59,169,932
200,960
8,000,000
75,966
8,276 926
9,637,470
1,614,107
61,546
2,000,000
13,313,123
(19,2551 22,205,484
6,412,622 $ 1,458,307 103,209,931
(B) Projects include various street improvements such as overlays throughout the City as needed and various park improvements such as playground equipment for the parks located in the assessment districts
(C) Projects include improvements to City Hall, improvements to the Community Center, traffic related improvements due to new development, Police and Fire equipment purchases and facility improvements and various economic development projects (D) Projects include a new Emergency Operations center and various other capital projects (E) Purchase of fire vehicles for future fleet replacement (F) Renovation of City Hall and Police Annex
IG) Costs associated with the completion of the City's General Plan Update IH) Various one-time expenditures for equipment, capital improvements, and Measure H activity (I) Projects include relocation of the municipal airport, development of an industrial park and various other economic development projects (J) Funds to pay down the Unfunded Accrued Liability or future increases in employer pension contributions C. Minimum Fund Balance Policies
(Al
(B)
(Bl
(C)
(D)
(C)
(El
(F)
(GI
(HI
(HI
(II
(JI
The City's Budget and Fiscal Policy requires the City to strive to maintain 20-40% of the subsequent year's budgeted revenues for restricted fund balances in the special revenue funds and cash flow of 30% of General Fund expenditures for unassigned fund balance in the General Fund.
55 154
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11- 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 Plan (the 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 others). 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 GASS Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools.

The City sponsors seven rate plans (three miscellaneous and four safety). Benefit provisions under the Plan are established by State statute and City resolution. Cal PERS 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 Cal PERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for 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 the Plan are applied as specified by the Public Employees' Retirement Law.

The rate plan provisions and benefits in effect at June 30, 2024 are summarized as follows:

Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a% of annual salary
Required employee contribution rates
Required employer contribution rates
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Miscellaneous
1st Tier
Prior to
January 1, 2011

2.7%@55
5 years service
monthly for life
50 to 55

2.0% to 2.7%

8.000%

16.870%
Safety
1st Tier
Prior to
January 1, 2013
3%@50
5 years service
monthly for life
so

3.0%

9.000%

29.090%
Miscellaneous
2nd Tier
January 1, 2011 thru
December 31, 2012
2%@60
5 years service
monthly for life
50 to 63

1.092% to 2.418%

7.000%

10.870%
Safety
2nd Tier
January 1, 2011 thru
December 31, 2012
3%@55
5 years service
monthly for life
50 to 55

2.4%to 3.0%

9.000%

24.790%
Miscellaneous
PEPRA
On or after
January 1, 2013
2%@62
5 years service
monthly for life
52 to 67

1.0% to 2.5%

8.250%

8.000%
Safety
PEPRA
Fire and Police
On or after
January 1, 2013

2.7%@57
s years service
monthly for life
50 to 57

2.0% to 2.7%

14.500%

14.500%
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability.

The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $2,023,391 for the fiscal year ended June 30, 2024.
56 155
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11- PENSION PLAN (Continued)
A. General Information about the Pension Plan (Continued) Contributions - Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City's contributions to the plan recognized as a part of pension expense for the year ended June 30, 2024 were $3,777,240.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $32,432,029.

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, 2023, 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, 2022, rolled forward to June 30, 2023, 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 the measurement dates ended June 30, 2022 and 2023 was as follows:

Proportion - June 30, 2022
Proportion - June 30, 2023
Change - Increase (Decrease)

0.2567%

0.2600%

0.0033%
For the year ended June 30, 2024, the City recognized pension expense of $5,917,135. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of
of Resources Resources
Pension contributions subsequent to the measurement date $ 4,114,958 $ Changes of assumptions 1,924,768
Differences between actual and expected experience 2,026,210 229,897 Net difference between projected and actual earning on plan investments 4,836,537
Change in employer's proportion 857,174 219,111
Differences between the employer's actual contributions and the employer's proportionate share of contributions 104,706 901,993 Total $ 13,864,353 $ 1,351,001
57 156
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11- PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) $4,114,958 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, 2025. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30
2025
2026
2027
2028
2029
Thereafter
$ 2,603,732
1,790,367
3,867,284
137,011
Historically, the pension liability for governmental activities has generally been liquidated by the General Fund.

C. Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
June 30, 2022
June 30, 2023
Entry-Age Normal Cost Method

6.90%

2.30%

2.80%
Varies by Entry Age and Service

6.90%
Derived using CalPERS' Membership
Data for all Funds(1l
(ll The mortality table was developed based on CalPERS specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020.
58 157
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11- PENSION PLAN (Continued)
C. Actuarial Assumptions (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022, valuation were based on the results of December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experiences Study can be found on the Cal PERS website.

Change of Assumptions - There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, Cal PERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

D. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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 both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. 59 158
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11- PENSION PLAN (Continued)
D. Discount Rate (Continued)
The expected real rates of return by asset class are as follows:

New Strategic
Asset Class Allocation
Global Equity - Cap-weighted 30.00%
Global Equity - Non-Cap-weighted 12.00%
Private Equity 13.00%
Treasury 5.00%
Mortgage-backed Securities 5.00%
Investment Grade Corporates 10.00%
High Yield 5.00%
Emerging Market Debt 5.00%
Private Debt 5.00%
Real Assets 15.00%
Leverage -5.00%
Total 100.00%
(ll An expected inflation of 2.30% used for this period.

Real Return(1'
2 )

4.54%

3.84%

7.28%

0.27%

0.50%

1.56%

2.27%

2.48%

3.57%

3.21%
-0.59%
(Z) Figures are based on the 2021-22 Asset Liability Management study.

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, 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 1-percentage point lower or !-percentage point higher than the current rate:
$
Discount Rate -1%

5.90%
49,042,848 $
Current Discount Rate

6.90%
32,432,029
E. Pension Plan Fiduciary Net Position
$
Discount Rate +1%

7.90%
18,809,170
Detailed information about the Plan's fiduciary net position is available in the separately issued Cal PERS financial reports.

F. Payable to the Pension Plan
The City had outstanding contributions payable to the pension plan of $148,139 as of June 30, 2024. 60 159
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - POSTEMPLOVMENT BENEFITS
A. Plan Description
The City administers the City Retirees Benefits Plan (OPEB Plan), an agent multiple-employer defined benefit postemployment healthcare plan. Benefits are provided to eligible employees as follows:

Dispatchers Fire General Police
(Hired before 1/1/08) (Hired before 4/1/10) (Hired before 7 /1/08) (Hired before 4/1/10) § Eligibility 50% at 10 years plus 5% per year to 100% at 20 years § Benefits Medical only Provided
§ Required Age !?D wLlQ+ ~rs. of service Age 50 w[lD+ ~rs. of ~~rvi,e Ag~ !?Q w[lO+ ~rs. of service 8&~ ~Q lll!llQ+ ~rs. cf secvi,e Service City pays all medical benefits City pays all medical benefits City pays all medical benefits City pays all medical benefits up to HMO rates based on up to HMO rates based on up to HMO rates based on up to HMO rates based on eligibility rate above eligibility rate above eligibility rate above eligibility rate above Note: No limitation to Note: No limitation to Note: No limitation to Note: No limitation to benefits for employees benefits for employees benefits for employees benefits for employees hired prior to 8/ 7 /02 hired prior to 8/7/02 hired orior to 8/7/02 hired prior to 8/7/02 Dependents are eligible to enroll, and benefits continue on to surviving spouses.

Eligible employees hired after the dates listed above, or with less than 10 years of service will receive the Public Employees Medical and Hospital Act minimum benefit.

B. Employees Covered
As of the June 30, 2022 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB plan:

Active employees
Inactive employees, spouses, or beneficiaries currently receiving benefit payments Inactive employees entitled to, but not yet receiving benefits Total
C. Contributions
176
90 12
278
The OPEB Plan and its contribution requirements were established by a resolution incorporated into the City's policies and procedures manual and Memoranda of Understanding with the applicable employee bargaining units and has since been eliminated for all employees hired after the dates provided in the plan description chart found in Section A of this note. The City makes contributions based on an actuarially determined rate. For the fiscal year ended June 30, 2024, the City's cash contributions were $1,575,809 in payments to the trust and the estimated implied subsidy was $99,382 resulting in total payments of $1,675,191.
61 160
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - POSTEMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023, 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 in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

Discount Rate
General Inflation
Salary Increases
Investment Rate of Return
Moratlity, Retirement, Disability, Termination
Moratlity Improvement
Healthcare cost trend rates
PEMHCA Minimum Increases
Healthcare participation for Future Retirees
Changes of assumptions:

6.25%

2.50%

2.75% annually, in aggregate

6.25%
CalPERS 2000-2019 Experience Study
Moratlity projected fully generational with Scale MP-2021 Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076

3.50% annually
Eligible for Supplmental Benefits - 90%
Eligible for PEMHCA Minimum Only - 50%
(1) Medical trend and PEMHCA minimum trend were updated (2) Medical plan election was modified for waived participants The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Global Equities
Fixed Income
TIPS
Commodities
REITs
Target
Allocation

49.00%

23.00%

5.00%

3.00%

20.00%
Assumed Long-Term Rate of Inflation
Expected Long-Term Net Rate of Return, Rounded
Total 100.00%
Long-Term
Expected Real
Rate of Return

4.56%

1.56%
-0.08%

1.22%

4.06%

2.50%

6.25%
* The long-term expected real rates of return are presented as geometric means.
62 161
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - POSTEMPLOYMENT BENEFITS (Continued)
E. Discount Rate
The discount rate used to measure the total OPEB liability is 6.25%. This is the expected long-term rate of return on City assets using investment Strategy 1 within the California Employers' Retiree Benefit Trust (CERBT). The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.

F. Changes in the OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Increase (Decrease)
Total OPEB OPEB Fiduciary
Liability Net Position Net OPEB Liability
Balance at June 30, 2023
(Measurement Date June 30, 2022) $ 28,158,290 $ 13,740,413 $ Changes recognized for the measurement period:

Service cost 675,278
Interest on total OPEB liability 1,763,270
Actual vs expected experience 2,552,901
Assumption changes 1,728,571
Contributions:

Employer - City's contribution 1,667,576
Net investment income 883,116
Benefit payments, including refunds of employee
contributions (1,242,506) (1,143,124)
Implicit Rate Subsidy fulfilled (99,382)
Administrative expenses (7,855)
Net changes 5,477,514 1,300,331
Balance at June 30, 2024
(Measurement Date June 30, 2023) $ 33,635,804 $ 15,040,744 $ Historically, the OPES liability for governmental activities has generally been liquidated by the General Fund.

G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate 14,417,877
675,278
1,763,270
2,552,901
1,728,571
(1,667,576)
(883,116)
(99,382)
99,382
7,855
4,177,183
18,595,060
The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
$
1% Decrease

5.25%
23,085,567 $
Current Discount Rate

6.25%
18,595,060
63 $
1% Increase

7.25%
14,892,888
162
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - POSTEMPLOVMENT BENEFITS (Continued)
H. Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
$ 14,532,371
Current Healthcare Cost
Trend Rates
$ 18,595,060
1% Increase
$ 23,582,054
I. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized an OPEB expense of $1,807,927. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to the measurement date $ 1,675,191 $ Changes of assumptions 2,784,459
Differences between actual and expected experience 2,282,293 3,553,683 Net difference between projected and actual earning on OPEB Plan investments 903,689
Total $ 7,645,632 $ 3,553,683
The $1,675,191 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025.

Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Year Ending
June 30
2025 $ 203,519
2026 142,092
2027 581,443
2028 148,523
2029 175,661
Thereafter 1,165,520
64 163
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 13-RISK MANAGEMENT
The City manages risk by participating in the public entity risk pools described below and by retaining certain risks.

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

The City participates with other public entities in a joint venture under a joint venture powers agreement, which establishes the Central San Joaquin Valley Risk Management Authority {CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each worker's compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula, which among other expenses, charges the City's account for liability losses under $1,000,000 and worker's compensation losses under $500,000. The CSJVRMA participates in excess pools, which provide general liability coverage from $1,000,000 to $29,000,000 and Workers Compensation coverage from $500,000 to $5,000,000 and purchases excess insurance above $50,000,000 to the statutory limit.

CSJVRMA is a consortium of fifty-four (54) cities in the San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et. seq. A Board of Directors governs the CSJVRMA, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA. The annual financial report may be obtained from the consortium's executive office at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.

NOTE 14 - COMMITMENTS AND CONTINGENCIES
The City is subject to litigation arising in the normal course of business. In the opinion of the City attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the government's compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the government anticipates such amounts, if any, will be immaterial.
65 164
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 15 - LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND On September 4, 2023, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X26 (the "Bill") which dissolved all redevelopment agencies in the State of California. The Successor Agency was formerly being managed by the Los Banos Designated Local Authority.

Under the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies are only allocated revenue in the amount that is necessary to pay estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

A. Cash and Investments
A reconciliation of the Los Banos Redevelopment Successor Agency Private Purpose Trust Fund's cash and investments as of June 30, 2024 is as follows:

Cash and investments $ 1,263,182
Total cash and investments $ 1,263,182

8. Receivables
A reconciliation of the Los Banos Redevelopment Successor Agency Private Purpose Trust Fund's receivable balances as of June 30, 2024 is as follows:

Loan receivables:

Commercial Micro-Enterprise Program
Total receivables
C. Commercial Micro-Enterprise Program
$
$
Outstanding
Balance as of
June 30, 2024
84,245
84,245
The City along with Merced County Economic Development Corporation (MCEDCO) administered a Micro-Enterprise Loan Program for technical assistance in development and implementation of small businesses. Under this program, business owners with incomes below a certain level are eligible to receive low interest loans, secured by deeds of trust, for capital or operations of their businesses. The Micro-Enterprise Program also encourages business owners to upgrade, renovate and improve their businesses. Upon approval of the loan, the City disburses the funds, and arranges for and collects repayments. As of June 30, 2024, outstanding loans of this program amounted to $84,245. 66 165
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 15 - LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND (Continued) D. long-term Liabilities
The following is a summary of long-term liabilities transactions for the Los Banos Redevelopment Successor Agency Private Purpose Trust Fund at June 30, 2024:

Balance Balance Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Direct borrowings and direct placements
2014 tax allocation refunding bonds $ 17,783,013 $ - $ (1,136,830) $ 16,646,183 $ 1,190,466 Total long-term debt $ 17,783,013 $ - $ (1,136,830) $ 16,646,183 $ 1,190,466 E. 2014 Tax Allocation Refunding Bonds
On December 17, 2014, the Successor Agency issued the 2014 Series A and Series B Tax Allocation Refunding Bonds in the amount of $26,050,699. The purpose is to refund the 2001 Tax Allocation Refunding Bonds, the 2004 Tax Allocation Refunding Bonds and the 2006 Tax Allocation Refunding Bonds. Principal payments are payable semi-annually on March 1 and September 1 and interest is payable semi-annually each March 1 and September 1 through 2035. There is a provision within the bond agreement whereby in the event of default, the principal may be declared immediately due and payable.

The following is a schedule of the future estimated minimum payments related to the 2014 Bonds at June 301 2024:

For the Years Principal Interest Total
Ending June 30 Component Component Payments
2025 1,190,466 686,945 1,877,411
2026 1,242,794 636,335 1,879,129
2027 1,296,317 583,649 1,879,966
2028 1,355,955 528,568 1,884,523
2029 1,418,960 471,002 1,889,962
2030-2034 7,700,386 1,411,443 9,111,829
2035-2039 2,441,305 103,300 2,544,605
Total $ 16,646,183 $ 4,421,242 $ 21,067,425
F. Refunded Debt
The Agency issued $26,050,699 of 2014 Series A and Series B Tax Allocation Refunding Bonds to provide resources to purchase U.S. Government and State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments on $26,040,000 of refunded debt. As a result, the 2001 Tax Allocation Refunding Bonds, the 2004 Tax Allocation Refunding Bonds and the 2006 Tax Allocation Refunding Bonds are considered to be defeased and the liability has been removed from the statement of fiduciary net position. This advance refunding was undertaken to reduce total debt service payments over the next 21 years by $2,929,403 and resulted in an economic gain of $1,827,430. 67 166
CITY OF LOS BANOS I JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 15 - LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND (Continued) G. Corrective Action Clean-Up
The contamination on the Pacheco Oil Facility property contained subsurface contaminations of hydrocarbon and arsenic as initially detailed in a 1995 Problem Assessment Report. Monitoring wells were installed, and additional site assessments were performed from 1995 forward . On November 2007 letter to the City, the Merced County Department of Environmental Health required an additional site assessment. The City hired a Consultant to perform this work, subject to the approval of the work plan by the County. In fiscal 2008-09, the Corrective Action Clean-Up plan was approved by the former RDA. The DLA assumed this contingent liability as part of the dissolution process and the corrective action was monitored and evaluated by the State Water Resources Control Board and the Merced County Department of Environmental Health. The DLA complied with the corrective action order and received a notice of completion from the State Resource Water Board in Fiscal Year 2022. The affected properties were transferred to the City of Los Banos in Fiscal Year 2023.

NOTE 16-SUBSEQUENT EVENTS
Purchase Commitments
On April 21, 2025, The City entered into a 10-year Agreement ($241,491.83 per annum) with Axon Enterprise, Inc. in the amount of $2,414,917.48 for the purpose of providing public safety surveillance solutions and related equipment, software, and accessories.
68 167

REQUIRED SUPPLEMENTARY INFORMATION
69 168

BUDGETARY COMPARISON SCHEDULES
70 169
CITY OF LOS BANOS I FOR THE VEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
General Fund
Budgeted Amount
Variance with
Original Final Actual Final Budget

REVENUES
Taxes:

Property $ 10,580,545 $ 10,580,545 $ 11,460,593 $ 880,048 Sales 11,042,508 11,042,508 10,570,537 (471,971)
Franchise 756,000 756,000 727,742 (28,258)
Other 561,000 561,000 630,572 69,572
Licenses and permits 714,885 1,289,885 1,708,015 418,130 Intergovernmental 94,915 527,042 383,497 (143,545)
Charges for services 1,966,218 1,966,218 2,255,076 288,858 Fines 38,600 38,600 45,532 6,932
Use of property and money 1,342,128 1,342,128 2,887,958 1,545,830 Miscellaneous 84,000 84,000 431,773 347,773
Total revenues 27,180,799 28,187,926 31,101,295 2,913,369

EXPENDITURES
Current:

General government:

Administration 2,663,337 2,694,574 2,047,702 646,872
Contingency 50,000 50,000 8,471 41,529
Total general government 2,713,337 2,744,574 2,056,173 688,401 Public safety:

Police 13,447,965 13,827,507 12,530,306 1,297,201
Fire 2,770,591 2,907,232 2,495,998 411,234
Building 554,811 931,811 1,175,618 {243,807)
Code enforcement 1,064,425 1,223,212 1,151,512 71,700
Total public safety 17,837,792 18,889,762 17,353,434 1,536,328 Highways and streets:

Engineering 602,777 598,777 504,990 93,787
Facilities maintenance 66,482 68,982 49,729 19,253
Streets 604,942 106,459 498,483
Total highway and streets 669,259 1,272,701 661,178 611,523 Parks and recreation :

Administration 455,000 733,910 733,910
Recreation 1,652,017 1,750,058 1,622,059 127,999
Maintenance 1,137,515 1,199,101 1,208,596 {9,495)
Total parks and recreation 3,244,532 3,683,069 3,564,565 118,504 Economic development:

Community development 2,515,391 2,524,391 1,481,145 1,043,246 Total economic development 2,515,391 2,524,391 1,481,145 1,043,246 Debt service:

Principal 24,681 {24,681)
Interest and fiscal charges 1,551 1,551 2,834 (1,283)
Total debt service 1,551 1,551 27,515 (25,964)
Capital outlay 5,824,544 5,909,060 2,801,215 3,107,845
Tota I expenditures 32,806,406 35,025,108 27,945,225 7,079,883 (Continued)
71 170
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
General Fund
(Continl!ed)
Budgeted Amount
Original Final
Excess (deficiency) of revenues over
(under) expenditures (5,625,607) (6,837,182)

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
Insurance recoveries
Transfers out {311,000) {311,000)
Total other financing sources (uses) (311,000) (311,000) Net change in fund balance s (5,936,607) s (7,148,182)
Fund balance - beginning
Fund balance - ending
72 Variance with
Actual Final Budget
3,156,070 9,993,252
39,045 39,045
114,537 114,537
(260,000) 51,000
(106,418) 204,582
3,049,652 s 10,197,834
40,766,202
$ 43,815,854
171
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
Impact Fees Special Revenue Fund
Budgeted Amount
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 1,029,000 $ 1,029,000 $ 1,576,855 $ 547,855 Charges for services 1,221,742 1,221,742 3,479,779 2,258,037 Use of property and money 218,450 218,450 1,542,719 1,324,269 Miscellaneous 2,816,649 2,816,649 2,380 (2,814,269)
Total revenues 5,285,841 5,285,841 6,601,733 1,315,892

EXPENDITURES
Current:

Public safety:

Police 88,096 88,096
Total public safety 88,096 88,096
Highways and streets:

Road 1,727,680 1,738,480 974,970 763,510
Total highway and streets 1,727,680 1,738,480 974,970 763,510 Parks and recreation:

Park development 101 1,833 (1,732)
Total parks and recreation 101 1,833 (1,732)
Capital outlay 10,348,695 10,774,325 3,430,941 7,343,384 Total expenditures 12,076,375 12,601,002 4,495,840 8,105,162 Excess (deficiency) of revenues over
(under) expenditures {6,790,534) (7,315,161) 2,105,893 9,421,054

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 215,148 215,148
Transfers out (1,925,000) {1,925,000) {775,000) 1,150,000 Total other financing sources (uses) (1,925,000) (1,925,000) {559,852) 1,365,148 Net change in fund balance $ (8,715,534) $ {9,240,161) 1,546,041 $ 10,786,202 Fund balance - beginning 31,063,748
Fund balance - ending $ 32,609,789
73 172
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
Community Development Block Grant and Home Grants Special Revenue Fund Budgeted Amount
Variance with
Original Final Actual Final Budget

REVENUES
Use of property and money $ 350 $ 350 $ 39,179 $ 38,829 Loan repayments 55,000 55,000 54,987 (13)
Miscellaneous 1,320 1,320
Total revenues 55,350 55,350 95,486 40,136

EXPENDITURES
Current:

Economic development:

Economic development 51,000 51,000 4,021 46,979
Total economic development 51,000 51,000 4,021 46,979
Total expenditures 51,000 51,000 4,021 46,979
Net change in fund balance s 4,350 s 4,350 91,465 s 87,115 Fund balance - beginning 745,994
Fund balance - ending $ 837,459
74 173
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
Streets and Roads Special Revenue Fund
Bud~eted Amount
Variance with
Ori~inal Final Actual Final Budget

REVENUES
Taxes:

Sales $ 1,533,750 $ 1,533,750 $ 1,595,028 $ 61,278
Intergovernmental 3,276,903 3,276,903 3,558,210 281,307 Use of property and money 39,000 39,000 354,371 315,371 Miscellaneous 390 390 479 89
Total revenues 4,850,043 4,850,043 5,508,088 658,045

EXPENDITURES
Current:

Highways and streets:

Roads 2,068,797 2,068,797 1,675,542 393,255
Total highways and streets 2,068,797 2,068,797 1,675,542 393,255 Capital outlay 4,373,080 4,373,080 4,340,049 33,031
Total expenditures 6,441,877 6,441,877 6,015,591 426,286 Net change in fund balance $ (1,591,834) $ (1,591,834) (507,503) $ 1,084,331 Fund balances - beginning 8,752,036
Fund balances - ending $ 8,244,533
75 174
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
Public Safety Special Revenue Fund
Budgeted Amount
Variance with
Original Final Actual Final Budget

REVENUES
Taxes :

Property $ 1,695,770 $ 1,695,770 $ 1,827,440 $ 131,670
Sales 4,009,490 4,009,490 3,959,488 {50,002)
Intergovernmental 215,762 215,762 209,717 {6,045)
Charges for services 12,500 12,500 13,803 1,303
Use of property and money 70,390 70,390 380,156 309,766 Miscellaneous 19,711 19,711
Total revenues 6,003,912 6,003,912 6,410,315 406,403

EXPENDITURES
Current:

Public safety:

Police 1,721,061 1,756,101 1,488,392 267,709
Fire 2,191,527 2,287,185 2,108,902 178,283
Total public safety 3,912,588 4,043,286 3,597,294 445,992 Capital outlay 668,136 630,097 455,805 174,292
Total expenditures 4,580,724 4,673,383 4,053,099 620,284 Excess (deficiency) of revenues over
{under) expenditures 1,423,188 1,330,529 2,357,216 1,026,687

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 11,064 11,064
Transfers in 51,000 51,000 (51,000)
Total other financing sources {uses) 51,000 51,000 11,064 (39,936) Net change in fund balance s 1,474,188 s 1,381,529 2,368,280 s 986,751 Fund balance - beginning 7,463,087
Fund balance - ending $ 9,831,367
76 175
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Notes to the Budgetary Comparison Schedules
NOTE 1- BUDGETARY DATA
The City Council reviews and adopts an annual budget for the General, Special Revenue, Capital Projects and Enterprise Funds. The City Council holds public hearings and may modify the appropriations by general approval. Budgeted amounts may be transferred between line items within departments with the City Manager's approval. The legal level of expenditure control in the funds is considered to be at the department level. Operating appropriations lapse at the end of each fiscal year.

The budget is reported on the same basis as the fund types and on a basis consistent with accounting principles generally accepted in the United States of America. Additional appropriations or other changes during the fiscal year may be submitted by the department for Council review and approval.

NOTE 2 - EXCESS EXPENDITURES OVER APPROPRIATIONS
The City incurred expenditure in excess of appropriations in the following amounts for the year ended June 30, 2024:

General Fund
Current:

Public safety:

Building
Parks and recreation:

Maintenance
Debt service:

Principal
Interest and fiscal charges
Im pact Fees Special Revenue
Current:

Parks and recreation:

Park development
Capital Grants Ca pital Pro jects
Debt service:

Interest and fiscal charges
$ 243,807
9,495
24,681
1,283
1,732
308,000
77 176

PENSION PLANS
78 177
CITY OF LOS BANOS I LAST 10 FISCAL YEARS
Pension Plans - Cost-Sharing Multiple-Employer Plan
Schedule of Proportionate Share of Net Pension Liability 2015 2016
Proportion of the net pension liability 0.2286% 0.2416% Proportionate share of the net pension
liability 14,362,655 16,582,007
Covered payroll 7,839,915 8,075,142
Proportionate share of the net pension
liability as percentage of covered payroll 183.20% 205.35% Plan fiduciary net position as a percentage
of the total pension liability 78.86% 75.82%

NOTES TO SCHEDULE
Changes in Benefit Terms•
2017

0.2311%
19,994,163
8,274,888
241.62%

71.81%
2018 2019 2020 2021 2022 2023

0.2261% 0.2262% 0.22519' 0.2298% 0.2639% 0.2567%
22,419,524 21,796,766 23,063,963 24,997,926 14,269,911 29,653,285 9,052,650 9,437,456 9,995,545 10,680,273 10,465,119 10,709,965 247.66% 230.96% 230.74% 234.06% 136.36% 276.88%

71.38% 73.65% 74.49% 74.26% 86.19% 74.08%
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge. The impact on the unfunded liabllity is included in the pool's differences between expected and actual experience.

ChanH!S in Assump1K>ns • None
79 2024

0.2600%
32,432,029
11,425,144
283.87%

73.39%
178

CITY OF LOS BANOS I LAST TEN YEARS
Pension Plans - Cost-Sharing Mu lti ple-Employer Plan
Schedule of Contributions
Actu21ri11lly rl!quired contribution {actuarially determined) Contributions in relation to the actuarially determined contributions
Contribution dl!fitil!ncy (f'xcess)
Covered payroll
Contributions ai a percentage of covered payroll
2015 2016
2,092,368 2,438,630
2,092,368 2,438,630
$ ____ _ $ __ _
8,075,142 8,274,888

25.91" 29.47%
2017
2,720,626
2,720,626
9,052,650

30.05%
2018
2,937,919
2,937,919
$ ____
80 9,U7,45&

31.13%
2019
2,874,876
2,874,876
_$ ___
9,995,545

28.7£,%
2020
3,012,522
3,012,522
_ $___
10,680,273

28.21%
2021
3,223,098
~
_$ ___
10,465,119
'°·"""
2022
3,484,241
3,464,241
10,709,965

32.53%
2023 2024
3,777,240 4,114,958
3,777,240 4,114,958
_ $___ _$ ___
11,425,144 13,533,668

33.06% 30.41%
179
CITY OF LOS BANOS I LAST TEN YEARS*
Pension Plans - Retiree Healthcare Plan (OPEB)
Schedule of Changes in Net OPEB Liability and Related Ratios 2018 2019 2020 2021 2022 2023 2024
Total OPEB Liability:

Service cost $ 948,983 $ 977,452 $ 821,453 $ 781,199 804,635 677,250 675,278 Interest on total OPES liability 1,580,117 1,634,419 1,954,156 1,788,099 1,899,949 1,687,371 1,763,270 Changes of assumptions 839,742 602,389 1,092,741 1,728,571 Differences between expected and actual experience 69,969 {2,795,350) {3,799,097) 2,552,901 Benefit payments, including refunds of employee contributions (580,388) (685,805) (754,824) (784,836) {881,555) (950,036) (1,143,124) Implicit rate subsidy (150,022) (150,022) {150,022) (100,000) {105,000) (104,000) {99,382) Net change in total OPEB liability 1,798,690 2,685,755 {322,198) 1,684,462 {988,327) 1,310,585 5,477,514 Total OPEB liability - beginning 21,989,323 23,788,013 26,473,768 26,151,570 27,836,032 26,847,705 28,158,290 Total OPEB liability - ending (a) $ 23,788,013 $ 26,473,768 $ 26,151,570 $ 27,836,032 26,847,705 28,158,290 $ 33,635,804 OPEB Plan Fiduciary Net Position:

Net investment income (loss) $ 516,055 $ 472,333 $ 461,290 $ 308,600 2,913,771 (1,979,055) $ 883,116 Contributions:

Employer - City's Contribution 1,080,904 1,848,085 1,883,561 1,951,758 2,106,055 1,941,389 1,568,194 Employer- Implicit Subsidy 150,022 150,022 150,022 105,000 105,000 104,000 99,382 Administrative expenses (2,512) (3,079) (1,614) (4,446) (4,017) (6,251) {7,855) Benefit payments, including refunds of employee contributions (580,388) {685,805) {754,824) (784,836) (881,555) (950,036) (1,143,124) )mplicit rate subsidy fulfilled (150,022) (150,022) (150,022) (100,000) (105,000) (104,000) (99,382) Net change in plan fiduciary net position 1,014,059 1,631,534 1,588,413 1,476,076 4,134,254 (993,953) 1,300,331 Plan fiduciary net position beginning 4,890,030 5,904,089 7,535,623 9,124,036 10,600,112 14,734,366 13,740,413 Plan fiduciary net position - ending {b) $ 5,904,089 $ 7,535,623 9,124,036 $ 10,600,112 14,734,366 13,740,413 15,040,744 Net OPEB liability- ending (a) - {b) $ 17,883,924 $ 18,938,145 17,027,534 $ 17,235,920 12,113,339 14,417,877 18,595,060 Plan fiduciary net position as a percentage of the total OPES liability 24.82% 28.46% 34.89% 38.08% 54.88% 48.80% 44.72% Covered-employee payroll (I) 9,057,433 $ 9,057,433 9,306,512 $ 11,322,323 $ 11,563,678 13,722,458 14,824,737 Net OPES liability as a percentage of covered-employee payroll 197.45% 209.09% 182.96% 152.23% 104.75% 105.07% 125.4% Notes to Schedule:
*Schedule is intended to show information for ten years. Additional information will be displayed as it becomes available. 111 Covered-employee payroll is not based on measure of pay 81 180
CITY OF LOS BANOS I LAST TEN YEARS*
Pension Plans - Retiree Healthcare Plan (OPEB)
Schedule of Contributions
Actuarially Determined Contribution (ADC)
Contributions in relation t o the actuarially
determined contributions
Contribution deficiency (excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Notes to Schedule:

Methods and assumptions used to determine contributions:

Actuarial Cost Method
Amortization Method
Amortization Period
Inflation
Entry age normal, level percent of pay
Level percent of pay
23-year dosed period for 2023/24

2.50%

2.75% annually
2018
1,997,107
(1,230,926)
766,181
9,057,433

13.59%
2019 2020
2,115,559 1,871,790
11,998,107) (2,056,758)
117,452 (184,968)
9,306,512 11,322,323

21.47% 18.17%
Assumed Payroll Growth
Health Trend Rates
Investment Rate of Return
Retirement Age
Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3. 75% in 2076 Medicare {Non-Kaiser) • 5.65% for 2023, decreasing Lo an ultimate rate of 3. 75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3. 7S% in 2076

6.25%
SO years
Mortality Cal PERS 2000-2019 Experience Study
•Schedule is intended to show Information for ten years. Additional information will be displayed as it becomes available. 82 2021 2022 2023 2024
1,906,609 1,938,870 1,555,716 1,571,519
12,211,055) (2,045,389) 11,667,5761 !1,675,191)
(304,446) (106,519) $ (111,860) s (103,672)
11,563,678 13,722,458 14,824,737 15,983,659

19.12% 14.91% 11.25% 10.5%
181

COMBINING AND INDIVIDUAL FUND

FINANCIAL STATEMENTS AND SCHEDULES
83 182

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

ASSESSMENT DISTRICTS
These funds are used for maintenance of sidewalks, landscaping, parks, street signs, streetlights, trees, fences, storm drains and professional services in designated districts within the City that are then charged to the residents through the property tax roll.

CMAQGRANT
This fund is used to account for the sale of equipment purchased with grant funding from the Congestion Mitigation and Air Quality (CMAQ) grants in previous fiscal years.

HCD GRANT
This fund is used to account for two HCD grants. The first grant provides funding for the Planning Grants Program (PGP) that is used to prepare, adopt, and implement a plan for Accelerating Housing Production and Streamlined Housing Production. This includes updating planning documents, entitlement processes or zoning ordinances in accordance with this plan. The se.cond grant provides funding for the Local Early Action Plan (LEAP) which provides financial assistance for technical assistance, preparation, and adoption of planning documents and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing needs assessment. 84 183
CITY OF LOS BANOS I JUNE 30, 2024
Nonmajor Governmental Funds
Combining Balance Sheet
Special Revenue Funds
Total
Nonmajor
Assessment CMAQ HCD Governmental
Districts Grant Grant Funds
ASSETS
Cash and investments $ 1,619,335 $ 19,124 $ 168,374 $ 1,806,833 Accounts receivable 30,693 30,693
Taxes receivable 89,208 89,208
Interest receivable 7,449 63 555 8,067
Total assets $ 1,746,685 $ 19,187 $ 168,929 $ 1,934,801

LIABILITIES
Accounts payable $ 288,310 $ - $ - $ 288,310
Unearned revenue 188,184 188,184
Total liabilities 288,310 188,184 476,494
FUND BALANCES:

Restricted 1,458,375 19,187 1,477,562
Unassigned (19,255) (19,255)
Total fund balances 1,458,375 19,187 (19,255) 1,458,307 Total liabilities and fund balances $ 1,746,685 $ 19,187 $ 168,929 $ 1,934,801 85 184
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Spec~I Revenue Funds
Total
Nonmajor
Assessment CMAQ HCD Governmental
Districts Grants Grant Funds

REVENUES
Intergovernmental $ - $ - $ - $
Charges for services 3,259,605 3,259,605
Use of property and money 69,895 893 1,451 72,239
Total revenues 3,329,500 893 1,451 3,331,844

EXPENDITURES
Current:

Parks and recreation 2,677,630 2,677,630
Capital outlay:

Parks and recreation 296,449 296,449
Total expenditures 2,974,079 2,974,079
Excess (deficiency) of revenues over
(under) expenditures 355,421 893 1,451 357,765

OTHER FINANCING SOURCES (USES)
Transfers in 260,000 260,000
Total other financing sources (uses) 260,000 260,000
Net change in fund balances 615,421 893 1,451 617,765
Fund balances - beginning 842,954 18,294 (20,706) 840,542 Fund balances - ending $ 1,458,375 $ 19,187 $ (19,255) $ 1,458,307 86 185

BUDGETARY COMPARISON SCHEDULES
87 186
CITY OF LOS BANOS I JUNE 30, 2024
Budgetary Comparison Schedule
Assessment Districts Fund
Budgeted Amount
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for services $ 3,274,532 $ 3,274,532 $ 3,259,605 $ (14,927) Use of property and money 5,107 5,107 69,895 64,788
Total revenues 3,279,639 3,279,639 3,329,500 49,861

EXPENDITURES
Current:

Parks and recreation 3,129,292 3,154,594 2,677,630 476,964 Capital outlay:

Parks and recreation 291,000 297,073 296,449 624
Total expenditures 3,420,292 3,451,667 2,974,079 477,588 Excess (deficiency) of revenues over
( under) expenditures (140,653) (172,028) 355,421 527,449

OTHER FINANCING SOURCES (USES)
Transfers in 260,000 260,000 260,000
Total other financing sources (uses) 260,000 260,000 260,000 Net change in fund balance $ 119,347 $ 87,972 615,421 $ 527,449 Fund balance - beginning 842,954
Fund balance - ending $ 1,458,375
88 187
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
CMAQ Grant Fund
Special Revenue
Budgeted Amount
Original Final

REVENUES
Use of property and money ~$ ____ - ~$ _ ___ - $
Total revenues

EXPENDITURES
Total expenditures
Net change in fund balance
Fund balance - beginning
Fund balance - ending $
89 Actual
Amounts
893 $
Variance with
Final Budget
893 - - ----
893 893
18,294
19,187
188
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
HCD Grant Fund
Special Revenue
Budgeted Amount
Original Final
Actual
Amounts
Variance with
Final Budget

REVENUES
Intergovernmental
Use of property and money
Total revenues

EXPENDITURES
Current:

Economic development
Total expenditures
Net change in fund balance
Fund balance - beginning
Fund balance - ending
$ - $
90 188,184 $
188,184
188,184
188,184
$
- $
1,451
1,451
(188,184)
1,451
(186,733)
188,184
188,184
1,451 $ 1,451 ""==--------
(20,706)
(19,255)
189
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Budgetary Comparison Schedule
Capital Projects Fund
Budgeted Amount
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of property and money $ 25,000 $ 25,000 $ 781,127 $ 756,127 Miscellaneous 578 578
Total revenues 25,000 25,000 781,705 756,705

EXPENDITURES
Current:

General government:

Contingency 100,000 100,000 100,000
Debt service:

Interest and fiscal charges 308,000 (308,000)
Capital outlay 11,950,000 11,950,000 6,607,474 5,342,526 Total expenditures 12,050,000 12,050,000 6,915,474 5,134,526 Excess (deficiency) of revenues over
( under) expenditures (12,025,000) (12,025,000) (6,133,769) 5,891,231

OTHER FINANCING SOURCES (USES)
Cost of issuance 1,950,000 1,950,000 (1,950,000)
Transfers in 1,925,000 1,925,000 775,000 (1,150,000)
Total other financing sources (uses) 3,875,000 3,875,000 775,000 (3,100,000) Net change in fund balance $ (8,150,000) $ (8,150,000) (5,358,769) $ 2,791,231 Fund balance - beginning 11,771,391
Fund balance - ending $ 6,412,622
91 190

INTERNAL SERVICE FUNDS

FLEET MAINTENANCE
This fund is used for the maintenance, service, and repair of the City's fleet.

INFORMATION TECHNOLOGY
This fund is used to support, maintain, and enhance the City's information technology hardware, software, and communications infrastructure.

RETIREE'S HEALTH BENEFITS
This fund is used to charge the departments for retiree health benefits. 92 191
CITY OF LOS BANOS I JUNE 30, 2024
Internal Service Funds
Combining Statement of Net Position
Retiree's
Fleet Information Health
Maintenance Technology Benefits Total
ASSETS
Current assets:

Cash and investments $ 34,127 $ 10,169 $ 261,947 $ 306,243 Interest receivable 376 454 830
Prepaid items 533 533
Total current assets 35,036 10,623 261,947 307,606
Noncurrent assets:

Ca pita I assets:

Buildings and improvements 104,738 104,738
Machinery and equipment 661,908 835,934 1,497,842
Less: accumulated depreciation (678,069) (629,784) (1,307,853) Total noncurrent assets 88,577 206,150 294,727
Total assets 123,613 216,773 261,947 602,333

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pensions 231,561 163,787 395,348 Deferred outflows from OPEB 158,883 37,297 196,180
Total deferred outflows of resources 390,444 201,084 591,528

LIABILITIES
Current liabilities:

Accounts payable and other current liabilities 60,633 5,688 66,321 Compensated absences 15,604 3,794 19,398
Total current liabilities 76,237 9,482 85,719
Noncurrent liabilities:

Compensated absences 7,477 7,477
Net pension liability 586,385 414,760 1,001,145
Net OPEB liability 386,422 90,709 477,131
Total noncurrent liabilities 980,284 505,469 1,485,753
Total liabilities 1,056,521 514,951 1,571,472

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions 27,905 19,500 47,405
Deferred inflows from OPEB 73,849 17,335 91,184
Total deferred inflows of resources 101,754 36,835 138,589

NET POSITION (DEFICIT)
Net investment in capital assets 88,577 206,150 294,727 Unrestricted (732,795) (340,079) 261,947 {810,927)
Total net position (deficit) $ (644,218) $ {133,929) $ 261,947 $ (516,200) 93 192
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position Retiree's
Fleet Information Health
Maintenance Technology Benefits Total
Operating revenues:

Interdepartmental charges $ 1,287,101 $ 405,176 $ 1,571,519 $ 3,263,796 Miscellaneous 81 81
Total operating revenues 1,287,182 405,176 1,571,519 3,263,877 Operating expenses:

Personnel services 586,719 191,714 1,571,519 2,349,952
Contractual services 18,126 192,582 210,708
Utilities 331,660 347 332,007
Repairs and maintenance 368,947 368,947
Insurance 16,769 4,341 21,110
Other supplies and expenses 45,285 712 45,997
Depreciation 3,686 55,417 59,103
Total operating expenses 1,371,192 445,113 1,571,519 3,387,824 Operating income (loss) (84,010) (39,937) (123,947)
Nonoperating revenues (expenses):

Gain (loss) on sale of assets 21,766 21,766
Investment earnings 28,057 14,524 13,347 55,928
Total nonoperating revenues (expenses) 49,823 14,524 13,347 77,694 Change in net position (34,187) (25,413) 13,347 (46,253) Net position (deficit) - beginning (610,031) (108,516) 248,600 (469,947) Net position (deficit) - ending $ (644,218) $ (133,929) $ 261,947 $ (516,200) 94 193
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Internal Service Funds
Combining Statement of Cash Flows
Retiree's
Fleet Information Health
Maintenance Technologies Benefits Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided $ 1,287,101 $ 405,176 $ 1,571,519 $ 3,263,796 Payments to suppliers (791,221) (198,689) (989,910)
Payments to or on behalf of employees for services (489,163) (165,048) (1,571,519) (2,225,730) Receipts from other operating revenue 81 81
Net cash provided by (used for) operating activities 6,798 41,439 48,237

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (67,027) (85,175) (152,202) Proceed from sale of capital assets 21,766 21,766
Net cash provided by (used for) capital and related
financing activities (45,261) (85,175) (130,436)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 27,680 14,268 14,042 55,990
Net cash provided by (used for) investing activities 27,680 14,268 14,042 55,990 Increase (decrease) in cash and cash equivalents (10,783) (29,468) 14,042 (26,209) Cash and equivalents - beginning 44,910 39,637 247,905 332,452 Cash and equivalents - ending $ 34,127 $ 10,169 $ 261,947 $ 306,243 Reconciliation of OQerating Income {Loss} to Net Cash Provided Bir: {Used For} OQerating Activities Operating income (loss) $ (84,010) $ (39,937) $ - $ (123,947) Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation expense 3,686 55,417 59,103
(Increase) decrease in:

Prepaid items (516) (516)
Deferred outflows of resources for pensions (11,678) (11,704) (23,382) Deferred outflows of resources for OPEB (82,292) (13,437) (95,729) Increase (decrease) in:

Accounts payable and other liabilities (9,918) (707) (10,625) Compensated absences 8,027 1,747 9,774
Net pension liability 68,561 56,611 125,172
Net OPEB liability 134,893 12,351 147,244
Deferred inflows of resources for pensions (18,042) (12,635) (30,677) Deferred inflows of resources for OPEB (1,913) (6,267) (8,180) Net cash provided (used) by operating activities $ 6,798 $ 41,439 $ - $ 48,237 95 194

STATISTICAL SECTION
96 195

STATISTICAL SECTION - OVERVIEW
This part of the City of Los Banos' 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 government's overall financial health.

Contents
Financial Trends: These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity: These schedules contain information to help the reader assess the government's most significant local revenue sources, sales and property taxes.

Debt Capacity: These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the government provides and the activities it performs. 97 196

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Net Position by Components
2014-2015
~~1:ro1m:atill iSli!liti;s
Net investment in capital assets 74,482,065
Rutrkted 12,507,436
Unrestricted (639,257)
Tot11I governmental activit iei
net position 86,350,244
fhai ftH·Il:'.12!1: i!g}vities
Net investment in capital as!ets 45,206,093
Restricted 8,748,625
Unrestricted Hl,127,680
Total business-t\•pe a~tivilies
net position 72,082,398
Primary government
Net imestment In capita l aneU 119,688,158
Restricted 21,256,061
Unre,tricted 17,488,423
Total primary government
net position $ 158,432,642
s
s
s
s
2015-2016 2016-2017 2017-2018
83,051,535 n,s13,8J3 73,679,314
l ◄ ,01'1,590 19,345,542 28,042,938
4,527,558 5,374816 {10,084,047)
101.593,683 102,534,171 91,638,205
45,816,837 46,906,196 51,171,643
10,468,0241 12,796,446 14,747,937
21,106896 23,730,905 20,300,902
77,391,757 $ 83,433,547 $ 86,220,482
128,868,372 124,720,009 124,850,957
24,482,614 32,141,988 42,790,875
25,634,4S4 29,105,nl 10,216,855
178,985,440 $ 185,967,718 s 177,858,687
98 2018,,2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 71,701,732 70,986,296 s n,183,010 97,029,611 103,769,799 117,216,633 34,310,692 41,605,638 50,090,885 50,602,889 56,060,038 61,048,051 (9,035,174) (4,680,881) 1,265,673 23,462,779 21,603,396 16,313,090 96,927,250 107,911,053 123,540,628 171,095,279 $ 181,433,233 194,577,774 SS,063,074 55,419,531 54,939,541 54,500,208 55,241,270 56,324,519 15,627,011 18,399,7A3 23,107,727 24,760,556 24,901,408 25,655,002 22,318,541 26,982,634 32,746,134 40,ta2,220 44,076,141 47,213,024 s 931008,626 $ 100,801,948 s 110,793,402 $ 119,443,384 $ 124,218,819 $ 129,193,345 126,764,806 126,405,827 127,122,611 151,529,819 159,011,069 173,S41 ,152 49,937,703 60,005,421 73,198,612 75,363,845 80,961,446 86,703,853 131233,.367 22,301,753 34,012,807 63,644,999 65,679,537 63,526,114 $ 189,935,876 s 208,713,001 $ 234,334,030 $ 290,538,663 s 305,652,052 $ 323,771,119 197

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Changes in Net Position
2014-2015
Expenses
Governmental activities:
~neral governme nt 1,142,994
Pub!icsafetv 11,382,513
Highways and streets 5,581,131
Parks and recreation 3,319,476
Economic development 770,417
Interest on long-term debt 10,451
Total govemmenh.l actrvities 22,200,982
Business-type activities:

Water 4,012,484
Wasteweler 3,996,860
Airport 427,161
Solid waste 5,419,558
Total business-type activities 13,856,063
Total prlmilry government expenses 36,063,045
Proer•m flevenue
Governmental activities:

Charges for services 4,022,788
Operating grants and contributions 3,596,504
Capital grants and contributions 1,775,933
Total governmental activities 9,395,225
BusinesHype activities:

Chargu for services 17,823,033
Opcrating grants and contributions 15,334
Capital grants and c:ontributions
Total business-type activities 17 838367
Total primarr &overnment program
revenul!: 27,233,592
2015-2016 2016-2017 2017-2018
1,371,651 1,186,905 1,487,571
9,687,489 12,473,523 15,813,709
6,023,160 6,222,855 6,436,759
4,281,104 4,735,095 4,612,509
582,985 681,828 945,745
11,594 11,232 9,779
211957!983 25,311,438 29,306,072
4,400,180 4,356,044 4,772,454
4,418,235 4,197,226 4,527,236
361,224 330,699 336,645
6,060,817 6,282,604 5,745,491
15,240,456 15166~73 15381,826
37,198,439 40,478,011 44,687,898
5,CXJl,906 5,593,570 8,037,154
3,385,289 3,808,707 5,172,313
2623,070 4,75 3,878 3,469,161
11010,265 14,156,155 16,678,628
19,539,564 20,693,974 21,568,675
24,812 34,SBS 27,363
159,298
19,564,376 20,728,562 21755,336
s 30,574,641 s 34,884,717 s 38,433,964
99 2018-2019 2019,-2020 2020-2021 2021-2022 2022-2023 2023-2024 1,535.597 1,615,041 1,680,9'16 2,817,462 4,582,391 2,403,080 16,098,104 18,938,351 18,002,198 16,319,501 18,934,458 23,368,656 6,987,449 6,456,997 6,232,243 6,408,485 7,178,208 7,864,617 4,799,711 5,131,771 4,812,593 5,647,346 5,389,019 7,744,514 980,764 1,018,880 942,026 1,287,958 1,281,357 1,663,222 8249 6,641 1203 3,950 ~ 2,834
30,409,874 33,167,681 31,671,209 32,484 702 37,368,233 43!046,923 4,928,253 4,810,242 5,132,183 5,368,9S4 5,251,235 6,438,529 4,557,451 4,896,520 4,878,692 5,095,317 5,729,799 9,446,931 337,840 335,588 305,973 356,282 379,962 400,176
6,732,856 7,593,755 8,027,609 6,399,144 8,144,745 6,900,566 16,S561400 17,637,105 18,344,457 17,229,697 19505741 23,186,202 46,956,274 50,804,766 50,015,666 49,714 399 ~ 66,233,125 7,799,743 8,896,352 10,355,202 12,870,076 s 7,501,980 10,716,224 5,673,812 6,015,032 4,052,293 3,757,028 5,469,842 6,310,780 6,650,241 10,976,153 8,218,079 2513181868 3,204,332 31151,009

20.123 796 25,887,537 22 625,574 42,945 972 16,176,154 20!178013 20,979,032 22,831,073 26,263,090 23,579,704 21,751,160 23,069,683 22,604 25,342 130,305 25,696 32,605 49,426
653,940 833,776 1,146,422 1,314,669 ~ 634 330
2116551576 23,6901191 27 539,817 24,920,069 22,195,967 23.SS3,439 $ 41,779,372 49,577,728 $ 50165,391 $ 67,866,041 $ 38,372,121 44,131,452 198

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Changes in Net Position
(Continued)
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Net (expen~)/revenue:

Governmental activities (U,811,757) $ (10,947,718) (11,155,283) $ {12,627,444) $ (10,286,078) $ (7,280,144) (9,045,635) $ 10,461,270 $ (21,192,079) (22,868,910) Business-type activities 3,982,304 4 323,920 s,sst,989 6,373,510 S,099,176 6,053,086 9,195 360 7690372 2,690,226 767;137 Tota! primary government !expenses)
revenue, net {8,829,453) $ 16,623,798) (5,593,294) (6,253,934) (5,186,902) (1,227,058) 149,725 18,151,642 $ {18,501,853) (22,101,673) General Rei,enues
GovRrnmentalactivities:

Ta11:e5:

Property taxes 5,704,220 6,229,501 6,793,6~ 6,793,665 7,305,948 9,382,154 9,382,15-4 10,416,190 12,268,378 B,2sa,o:n Sales ta>o:es 4,012,401 4,613,579 5,594,516 5,594,516 7,750,981 12,762,086 12,762,086 14,498,643 14,520,721 14,530,025 OthertaJtes 1,158,812 1,237,553 1,181,620 1,181,620 1,118,412 1,233,S40 1,233,540 1,485,952 1,435,212 1,416,798 Use of money and propeny 1,145,64S 1,287,188 1,935,306 1,935,306 1,876,676 902,417 902,417 629,466 3,149,636 6,057,749 American Rescue Plan Act 9,816,684
Miscellaneous 80,389 124,913 76,560 76,560 215,189 395,013 395,013 246,446 164,921 720,848 Transfers (5,696) (3,776) 16,544) j6,544) {3,259) ~
Total governmental activities 12,095,771 13 488,958 15,575,123 15,575,123 18,263,947 24,675210 24!5751210 37,093,381 31,530,033 36,013,451 Business-type activities:

PropertytaJtes 8,454 3,860 3,717 3,717 3,963 4,077 4,077 6,073 7,590 Use of mone;• and propen)" 334,106 529,413 1,245,717 1,245,717 1,138,933 188,669 188,569 1120,628} l,SS0,468 3,735,821 Settlement 600,000
Miscellaneous 131,545 158,676 432,990 432,990 594,081 603,348 603,348 480,238 174,383 463,878 Transfers (Note 4) 5 696 3,776 6544 6,544 3,259 ~
Total business-type activities 479,801 695,725 1,688968 1,688,968 1,740,236 796,094 796,094 959,610 2 069,759 4,207,289 Total primary government general
12,575,572 $ 14184,683 $ 17,264,091 s 17,264,091 $ 20.~.183 $ 25,471,304 $ 25,471,304 $ 38,052.991 $ 33,599,792 401 220?4D
Chances In Net Position
Governmental (715,986) $ 2,541,240 861,514 2,947,679 7,977,869 17,395,066 15,629,575 47,554,651 $ 10,337,954 13,144,S41 Business-type 4,462,105 5,019,645 7069 235 8062478 6,839412 6,849,180 9991,454 a,649982 4,759,985 4,974,526 Total primary government 3,746,119 $ 7,560,885 7,930 749 11,010,157 1"1,817281 24,244,246 25,621,029 56,204,633 ~ 18,119,067 100
199

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Governmental Funds
Fund Ba lances
2014-2015
General Fund:

Nonspendoble 2,933
CC>fl'\mlrted
Assigned 2,179,757
Unassigned 7,843,490
Total gll!!neral funds llllll 10,026,180
All other governmental funds:

Nonspendable
Res;trlc:ttd 12,294,820
Committed
Unassi.11ned {733,613)
Totil o1\I other sovernmental funds 11,561,207
Source; Cny of lo~ Sano~ Financll! Departmem
Notes.:
2015-2016
3,938
3,335,429
8,638,970
s 11,978,337
852,459
13,818,032
(701,772 )
s 13,968.719
2016-2017 2017-2018 2018-2019
, .. 2,970 1,087
494,657 674,349
3,266,323 3,916,672 3,717,891
9,017100 8,709,292 11437 736
12,283,671 13,123,591 15,831,063
s 7,293 4,862
19,174,130 24,888,393 31,350,743
(672,702) (659.139) (635,273)
s 18,501,428 s 24,236,547 s 30,120,332
(1) Increase In fund balanQ for FY 2013·2014 due to o ne time revenue from the dissolution of the- Los Banos Redevelopment Agency. 2019-2020
2,381
457,876
6,214,047
15,011,639
s 21,685,943
s 2,431
38,833,S91
s 38,836,022
(2) lnaease in fund balance for FY 2014•2015 d ue to one limes.pike from the end of the St2te of Cllllfornia Triple Flip prosram and an increas.e in p,openy raw. 101
2020-2021 2021-2022 2022-2023 2023-2024
127 1,066
4,457,852 276,926 276,926 8,276,926
5,911,193 5,836,627 8,561,711 13,313,123
18,269,391 32 046,537 31,9271438 22,224,739
s 28,638,436 s 38160,090 40 766 202 s 43,815,854
s 615,945 308,000 243,400
47,685,213 67,707,434 55,224,504 59,169,932
S,125,000 5, 125,000
(20,706) {20,706) (19,255)
s 47,635,213 s 73,427,673 60,636,798 $ 59,394,077
200

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Governmental Funds
Changes in Fund Balances
2014-2015 2015-2016 2016-2017 2017-2018 201B-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 R•v•nuas
Tnes:

Property 6,863,634 6,316,878 6,504,693 7,198,259 7,859,108 8,546,862 9,382,154 s 10,416,190 s 12,268,379 13,288,033 S.i!es 5,026,IGO 6,094,290 6,458,115 8,075,623 9, 248,865 11,767,581 13,873,892 15,872,165 15,992,266 16,125,053 Fra nchise 511,5-45 534,702 546,061 563,611 540,449 566,328 619,158 687,723 752,176 n1,142 Motorvehic:I! 919,197
Other taxes 398,625 523,261 595,119 652,890 621,498 518,924 583,634 748,70S 635,230 630,572 Licen$eSe ndpermits 456,341 855,171 1,123,244 1,012,757 763,207 1,169,141 2,168,888 1,983,293 859,724 1,708,015 lnter1overnmental 1,050,293 1,595,939 2,019,191 2,141,795 2,602,521 8,125,304 3,558,388 12,396,321 4,604,876 5,728,279 Charge,forsl!rvices 3,477,841 5,581,250 7,702,436 8,538,554 8,661,055 8,562,532 12,331,082 10,833,175 6,601,466 9,008,263 Fines 62,505 50,546 64,129 67,496 59,806 45,227 35,593 60,238 43,723 45,532 Ust or property and mont'{ 1,092,444 1,205,110 1,145,645 1,287,188 1,935,306 1,876,676 902,417 629,444 3,149,636 6,057,749 Loan repayments 182,611 166,407 391,262 49,128 54,987
Mlscellaneous 98,708 250,317 280468 356,333 271,538 216,264 358,418 218192 126,485 456,241 Total revenues 19,957,963 23,007,464 26,439,101 29,894,506 32563353 41,577,460 43,980,031 54,236,708 45,093,089 53,830466 Expenditures
Current:

Generat1overnm1rnt 1,067,648 1,083,155 1,117,098 1,276,300 1,229,744 1,315,025 1,325,624 2,579,438 4,599,377 2,055,173 Public:nfetv 11,167,699 12,202,688 13,423,807 14,592,038 14,442,012 15,509,530 16,767,602 17,425,855 18,412,360 21,038,824 Highways and streets l,158,S87 1,248,137 1,583,281 2,084,503 2,253,092 2,424,323 2,292,767 2,650,115 3,817,599 3,344,730 Parks and recreation 2,555,130 2,858,994 3,S46,943 3,228,685 .3,'81,902 3,825,646 3,561,389 4,174,850 4,571,810 6,571,340 Economic development SS0,212 S03,184 630,829 803,714 890,423 903,798 860,877 1,201,133 1,306,336 1,485,166 Oebtuirvk•:

Prlnclpal 9,828 13,263 24,681
Interest 10,451 11,594 11,232 7,950 7,049 6,100 5,100 51,005 310,BOO 310,834 102
201

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Governmental Funds
Changes in Fund Balances
(Continued)
2014·2015 2015-2016 2016-2017 2017•2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Capital outlay:

General government 5,425 5,000 28,245 412,723 55,642 413,056 200,676 342,250 260,847 950,337 Public safety 349,660 477,051 1,191,984 320,1 23 141,586 2,740,067 2,593,217 3,313,303 18,820,132 9,696,236 Hi&hwaysandstreets 254,298 199,387 250,037 424,544 2,348,437 4,056 1,279 919,050 4,475,673 Parks and recreation 200,162 372,016 65,670 358,599 522,532 425,141 655,977 779,103 2,087,413 2,121,541 Economic development ____ .,_, ~ 3348 100 4392 251 ~ 304,774 317,794 Total e•penditures 17,319,745 18,977,SSS 2.1,615,700 23,334,772 23!4521918 29,911,374 28,277,285 32,865,749 55,410,498 52,403,329 Excess (defkiency) of revenues over
(under)upenditures ~ 4,029,909: 4,823401 6~59,734 9110 ~35 11,666,086 15,702,746 21,370,9S9 (10,317,409) 1,427,137 otht,r finuicin& Sources (Uses)
lnuanceoffinilncinglei!Se 70,501 14,000,CXJO
Cost of issuance (140,000)
Insurance recoveries 240,396 81,779 50,659 57,632 2,387 20,138 114,537 Transfe r in 130,932 235,979 126,993 27,025 1,004 824,533 13,0ll,700 1,176 1,035,000 Transfer out {137,694) (241,102) {132,688) (30,801) (7,548} {827,792} {13,0ll,700) (10,011) {1,035,000) Proceeds from IT subscriptions 72,734
Sale of capital assets 83,243 17,910 20,337 19081 5587 2,257,084 41,306 ~ 48,609 265,257 Total otherfinancingsources(uses} 76481 323,684 14,642 15,305 80,822 2,304,484 98,938 13 893155 132,646 379 794 Net changes in fund balances $ 2 714,699 s 4,353,593 s 4,838,043 s 6,575,039 s 9,191,257 13,970,570 15,801,684 35,264114 (10,184,763) 1,806,931 Debt srrvice a.s a percentage of
noncapital upenditcres 0.06" 0.12'.l' 0.12% OJX" 0.03% 0.03% 0.02% 0.18% 0.95% 0.97% Soon:,: c ,1yof l os8allOSfinanceD~nmem
103
202

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Assessed Value of Taxable Property
(In thousands of dollars)
Real Pro~rt}:'.

Fiscal Year Land Improvements
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
448,810
543,391
573,208
633,774
715,389
783,078
847,060
923,911
1,010,882
1,168,150
1,686,158
1,738,793
1,881,326
2,025,405
2,195,513
2,380,184
2,522,661
2,668,290
3,025,638
3,432,162
Personal
Propert~
Person;,I
67,439
67,619
67,928
67,987
66,186
68,165
72,207
71,507
79,809
113,SOl
Source: County Assessor data, MuniServices, LLC, / Avenu Insights & Analytics Merced County Auditor-Controller's Office
Less Total Taxable Total Direct
Utility (l) Total Exemptions Assessed Value Rate
3,167 2,205,574 78,314 2,127,260 1.00%
3,163 2,352,966 82,650 2,270,316 1.00'%
3,152 2,525,614 103,904 2,421,710 1.00%
3,147 2,730,313 109,628 2,620,685 1.00%
111 2,977,199 118,291 2,858,908 1.00%
111 3,231,538 122,474 3,109,064 1.00%
109 3,442,037 125,358 3,316,679 1.00%
107 3,663,815 124,677 3,539,138 1.00%
104 4,116,433 128,023 3,988,410 1.00%
115 4,713,928 139,361 4,574,567 1.00%
Notes: Estimated value of taxable property not readily available in the State of California. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of actual property and is subject to the limitations of Proposition 13 passed in 1978. (1) Aircraft value not available after FY 2017-2018
104
203

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
General Fund
Ta x Revenue by Source
Fiscal Year Propertl
2014-2015 6,112,770 (1)
201S-2016 5,551,292
2016-2017 5,675,697
2017-2018 6,200,655
2018-2019 6,764,382
2019-2020 7,275,270
2020-2021 7,987,042
2021-2022 8,839,328
2022-2023 10,522,723
2023-2024 11,460,593
Source: City of Los Banos Finance Department
Notes:

Sales and Use Franchise
2,842,662 511,545
3,829,042 (2) 534,702
4,012,401 546,061
4,613,579 563,611
5,594,516 540,449
7,750,981 566,328
9,282,344 619,158
10,515,455 687,723
10,599,511 752,176
10,570,537 727,742
(1) Increase in property tax due to Triple Flip ending; last admin fee settlement payment. (2) Sales tax increase due to increase in Triple Flip ending and true up payments. 105
Motor Vehicle Other Total
15,232 398,625 9,880,834
523,261 10,438,297
595,119 10,829,278
652,890 12,030,735
621,498 13,520,845
518,924 16,111,503
583,634 18,472,178
748,705 20,791,211
635,230 22,509,640
630,572 23,389,444
204

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Direct and Overlapping Property Tax Rates (rate per $1,000 of assessed value) Fiscal Year
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
202D-2021
2021-2022
2022-2023
2023-2024
Source:

Notes:

Citl Direct Rates Overlapping Rates
Los Banos
City of County of Total Unified School Merced
Los Banos Merced District District Bond College Bond Total Rate

0.1953 0.8047 1.0000 0.0961 0.0234 0.1195

0.1953 0.8047 1.0000 0.1070 0.0214 0.1284

0.1953 0.8047 1.0000 0.1144 0.0207 0.1351

0.1953 0.8047 1.0000 0.0792 0.0209 0.1001

0.1953 0.8047 1.0000 0.0711 0.0202 0.0913

0.1953 0.8047 1.0000 0.0797 0.0218 0.1015

0.1953 0.8047 1.0000 0.0796 0.0199 0.0995

0.1950 0.8050 1.0000 0.0796 0.0198 0.0994

0.1954 0.8046 1.0000 0.0703 0.0177 0.0880

0.1954 0.8046 1.0000 0.0646 0.0171 0.0817
County Auditor data, MuniServices, LLC, / Avenu Insights & Analytics In 1978, California voters passed Proposition 13 which sets the_ property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies, including the City of Los Banos1 for which the subject p'roperty resides within. The City of Los Banos's portion varies by several Tax Rate Areas !TRAs) within the City.
106
205

CITY OF LOS BANOS I CURRENT YEAR AND TEN YEARS AGO
Principal Property Taxpayers
2023-2024
Owner Assessed Value
Kagome Usa Inc. $ 42,135,461
Wal-Mart Real Estate Business Trust 27,361,134
Los Ba nos 109 LP 24,998,488
Target Corp 23,692,140
California Dairies Inc. 22,295,746
Conrad Ethan 20,476,664
Stonefield Home Inc. 17,563,733
Home Depot Usa Inc. 15,947,690
Anderson Homes 15,427,355
Holt Of California 14,517,670
California Milk Producers
Lowes Hiw Inc.

Solomon Frank Jr
Colorado Eagle Rock LLC
Mccorduck Properties Los Banos
Camera Properties LLC
Top 10 Assessed Values $ 224,416,081
Total Assessed Value 2014-2015 $ 2,028,963,325
Total Assessed Value 2023-2024 s 4,327,081,961
Source:

Note:

County Assessor data, MuniServices, LLC, / Ave nu Insights & Analytics 2024 Taxpayers, Includes Secured and Unsecured data.
2015 Taxpayers, Includes Secured only, Unsecured data unavailable.

Rank
1 2
3 4
5 6
7 8
9 10
107
2014-2015
Percent of Percent of
Total City Total City
Assessed Value Assessed Value Rank Assessed Value

0.97% $ 20,279,121 3 1.00%

0.63% 20,300,831 2 1.00%

0.58% 0.00%

0.55% 18,983,510 4 0.94%

0.52% 0.00%

0.47% 11,477,830 6 0.57%

0.41% 0.00%

0.37% 0.00%

0.36% 0.00%

0.34% 0.00%
32,233,140 1 1.59%
11,979,940 5 0.59%
11,428,942 7 0.56%
10,763,871 8 0.53%
10,243,483 9 0.50%
9,142,109 10 0.45%

5.20% $ 156,832,777 7.74%
206
CITY OF LOS BANOS f LAST TEN FISCAL YEARS
Property Tax Levies and Collections
Fiscal
Year
Current Tax
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Source:

Levies
2,861,634
3,006,979
3,197,238
3,537,012
3,843,207
4,098,951
4,565,361
4,834,896
5,420,501
6,089,057
Merced County Auditor-Controller
Current Tax
Collections
2,861,634
3,006,979
3,197,238
3,537,012
3,843,207
4,098,951
4,565,361
4,834,896
5,420,501
6,089,057
Percent of Delinquent
Current Taxes Tax Total Tax
Collected <
11 Collections Collections
100% 2,861,634
100% 3,006,979
100% 3,197,238
100% 3,537,012
100% 3,843,207
100% 4,098,951
100% 4,565,361
100% 4,834,896
100% 5,420,501
100% 6,089,057
Notes: (1) Revenue and Taxation Code Sections 7401 through 4717 provide for an alternative method of distribLrtion of tax levies and collections known as the Teeter Plan. Merced County distributes 100% of the current secured roll to the City of Los Ba nos. 108
207

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Ratios of Outstanding Debt by Type
Governmental Activities
Lease Tax
Fiscal Revenue Allocation Capital Financed
Years Bond Bond, Leases leases
2014-2015 173,077
2015-2016 351,212
2016-2017 253,750
2017-2018 151,203
2018-2019 65,593
2019-2020 7,573
2020-2021
2021-2022 14,000,000
2022-2023 14,000,000
2023-2024 14,000,000
Source: City of Los Banos Finance Department
Notu: (1 ) See Asses~ Value of Taxable Prop,!rt'f schedule for Autssed Valuei;.

COP's
(2) 8usiness AcU11!ties are 1ero In Fiscal Year 2019-2020, due to City paying offOebt.

Notes
Payable Bonds
109
Buslness-T~ee Activities121
Total Percent of
capital Notes Primary Pee Assessed
Leases COP's Payable Government Population Capita Valuation 111 1,897,114 39,780 2,109,971 38,670 55 0.10%
1,570,796 14,347 1,936,355 39,359 49 0.09%
1,229,477 1,483,227 39,993 37 0.06%
868,159 1,019,362 40,986 25 0.04%
428,159 493,752 41,898 12 0.02%
7,573 41,923 0.00%
42,869 0.00%
14,000,000 1'16,639 300 0.40%
14,000,000 47,347 296 0.35%
14,CKXJ,000 47,419 295 0.32%
208

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Ratios of General Fund Debt Outstanding
General Debt Outstanding
General Fund
Fiscal Debt Redevelopment
Year Outstandin~ l>l Bonds 1'l
2014-2015 173,077
2015-2016 351,212
2016-2017 253,750
2017-2018 151,203
2018-2019 65,593
2019-2020 7,573
2020-2021
2021-2022
2022-2023
2023-2024
Source: City of Los Ba nos Finance Department
Total Assessed
Total Proeertl Value
173,077 2,127,260,281
351,212 2,270,316,588
253,750 2,620,761,000
151,203 2,620,685,704
65,593 2,858,907,614
7,573 3,109,064,142
3,316,678,388
3,539,138,117
3,988,408,584
4,327,081,961
Notes: (1) Tax Allocation Bonds are zero in 2011-2012 due to the State dissolving the RDAs. (2) General Fund debt paid off in 2013.
110
Percent of Actual
Taxable Value
Poeulation of Proeerty Per Capita
38,670 0.01% 4
39,359 0.02% 9
39,993 0.01% 6
40,986 0.01% 4
41,898 0.00% 2
41,923 0.00%
42,869 0.00%
46,639 0.00%
47,347 0.00%
47,419 0.00%
209

CITY OF LOS BANOS
Direct and Overlapping Governmental Activities Debt
2023-2024 Assessed Valuation: 4,327,081,961
Total Debt City's Share of
6/30/2024 % Applicable Uj Debt 6/30/2024
Oyerlapping Tax and Assessment Debt
Merced Community College District School Facilities Improvement District No. 2 Los Banos Unified school District
Total Overlapping Tax and Assessment Debt
Direct and Overlapping General Fund Debt
Merced County General Fund Obligations
Merced County Office of Education Certificates of Participation Los Banos Unified School District Certificate of Participation City of Los Banos Lease Obligations
Total Direct and Overlapping General Fund Debt
Overlapping Tax Increment Debt (Successor Agency)
Total Direct Debt
Total Overlapping Debt
Combined Total Debt
Ratios to 2023-2024 Assessed Valuation:

Total Overlapping Tax and Assessment Debt
Total Direct Debt ($14,000,000)
Combined Total Debt
Ratios to Successor Agency Redevelopment Incremental valuation($ 818,023,644):

Total Overlapping Tax Increment Debt
Notes:
2,672,052 57.610% $
77,113,714 67.826%
45,141,791 12.873%
6,530,000 12.873%
17,620,000 67.826%
14,000,000 100.000%
$ 16,646,183 99.292%
$

1.24%

32.00%

2.38%

2.00%
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percenages 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, revenue and mortgage revenue obligations.

Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.
111
1,539,369
52,303,148
53,842,517
5,811,103
840,607
11,950,941
14,000,000
32,602,651
16,528,328
14,000,000
88,973,496
102,973,496 ,,,
210

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Legal Debt Margin Information
(In Thousands of Dollars)
Fiscal Years
2014-2015 2015-2016 2016·2017 2017-2018 2018·2019 2019-2020 2020-2021 2021·2022 2022-2023 2023·2024 Assessed value 2,127,260 2,270,317 2,421,710 2,620,686 2,858,908 3,109,064 3,316,679 3,539,138 3,988,410 4,327,082 25¾ of full <155e55ed value 531,815 567,579 605,428 655,172 714,727 777,266 829,170 884,785 997,103 1,081,771 Debt limit
(15% of reduced assessed value) 79,772 85,137 90,814 98,276 107, 209 116.590 124.375 132.718 149,565 162.266 Total net debt applicable to limit
legal debt margin 79,772 85,137 $ 90,814 98,276 s 107,209 s 116,590 $ 124,375 132,718 $ 149,565 ~ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: Assessed Valuation California Municipal Statistics Note: The City has no General Obligation Bonds
112
211

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Pledged-Revenue Coverage
2014-2015
Water Revenue Bonds:

Water revenue 5,413,681
Less: operating expenses111 (3,107,370)
Net available revenue 2,306,311
Debt service
Coverag.e ratio N/A
Wastewater Revenue Bonds:

Wastewater revenue12l 5,565,988
Less: operating expenses(ll (2,752,898)
Net available revenue 2,813,090
Debt service 470,309
Coverage ratio 5.98
Source: City of Los Banos Finance Department
2015-2016 2016-2017 2017-2018
6,001,003 6,342,156 6,653,861
(3,115,891) (3,342,002) 13,528,711)
2,885,112 3,000,154 3,125,150

N/A N/A N/A
6,184,581 6,930,523 7,345,806
12,832,174) 13,077,148) 13,235,389)
3,352,407 3,853,375 4,110,417
470115 468 929 471,598

7. 13 8.22 8.72
(11 Depreciation, Compensated Absences and Charge Outs not included in Operating Expenses (2) Revenue indudes Ag Farming Income
113
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 6,247,950 $ 7,333,876 8,508,884 8,343,075 $ 7,191,004 $ 7,863,407 (3,646,595) (3,617,167) (3,977,327) (4,124,429) !4,411,755) 15,190,064) 2,601,355 3,716,709 4,531,557 4,218,646 2 779,249 2,673,343

N/A N/A N/A N/A N/A N/A
6,962,261 7,507,222 9,299,700 8,896,888 7,801,789 8,506,409 (3,269,692) (3,260,548) !3,573,699) (3,608,221) 13,889,555) {7,871,965) 3,692,569 4,246,674 5 726,001 5,288,667 3,912,234 634,444 468,124 468,433

7.89 9.07 N/A N/A N/A N/A
212

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Demographic and Economic Statistics
calendar
Year
2015
2016
2017
2018
2019
20201'
1 2021
2022
2023
2024
Source:

City of Los Ba nos
Unemeloyment
Labor
Population° 1 Force<
1 J Emelo~ment Rate<
2) Numbers Population11>
38,670 15,800 14,000 11.6% 1,800 266,134
39,359 15,900 14,100 11.0% 1,800 271,579
39,993 15,789 14,178 10.3% 1,633 274,665
40,986 16,100 14,700 10.4% 1,700 279,977
41,898 16,200 14,700 10.1% 1,700 282,928
41,923 17,400 13,900 20.0% 3,500 283,521
42,869 17,500 15,100 13.5% 2,400 284,836
46,639 17,000 15,400 9.7% 1,700 283,311
47,347 17,400 15,600 13.2% 2,200 285,337
47,419 18,000 15,800 12.4% 2,200 287,303
MuniServices, LLC, / Avenu Insights & Analytics, U.S. Census Bureau {1) Population Projections are provided by the Californla Department of Finance Projections. (2) Per Capita Income Data is provided by the United States Census Data and is adjusted for inflation.

Personal Income has been added to this table.
(3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. (4) Student Enrollment reflects the total number of students enrolled in Los Banos Unified School District. 114
Merced County
UnemEovment
Labor
Force121 Emeloyment Rate111 Numbers
115,100 102,000 11.4% 13,100
115,500 103,000 10.7% 12,400
114,578 103,022 10.1% 10,676
115,700 106,500 8.0% 9,300
113,400 104,000 8.1% 9,300
114,600 96,700 15.6% 17,900
116,400 103,900 10.8% 12,600
115,600 107,400 7.0% 8,100
119,500 108,700 9.3% 10,700
125,000 114,100 8.7% 10,900
213

CITY OF LOS BANOS I CURRENT YEAR AND NINE YEARS AGO
Principal Employers
Em eloyer Employees
Los Banos Unified School District 1203
Sutter Health Memorial Hospital - Los Banos 342
Wal mart Supercenter 327
Los Banos Nursing Rehab 223
Kagome 192
City of Los Banos 188
Target 178
The Home Depot 150
APEX 100
Save Mart 85
Central California Irrigation
Food 4 Less
Total 2,988
Total City Labor Force (1) 18,000
Source: (1) City of Los Banos Finance Department.

MuniServices, LLC, / Avenu Insights & Analytics, U.S. Census Bureau Results based on direct correspondence with city's local businesses. (1) Total City Labor Force provided by EDD Labor Force Data 2023-2024
Rank
1 2
3 4
5 6
7 8
9 10
115
2014-2015
Percent of Total Percent of Total
Citz'. Emeloz:ment Emplol'.ees Rank City Emplol'.ment

6.68% 995 1 7.21%

1.90% 235 2 1.70%

1.82% 317 3 2.30%

1.24% 0.00%

1.07% 144 5 1.04%

1.04% 180 4 1.30%

0.99% 117 6 0.85%

0.83% 110 7 0.80%

0.56% 0.00%

0.47% 64 10 0.46%

0.00% 72 8 0.52%

0.00% 70 9 0.51%

16.60% 2,304 16.70%
214

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Full-Time Equivalent City Government Employees by Function/Program 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 rn!:lQION/ PROGRAM
General Government:

Administration 5.35 5.35 5.68 5.13 5.13 5.13 5.13 5.13 5.13 6.18 Community and Economic 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 4.CO 6.00 Water Admin 4.27 4.27 4.60 4.72 4.72 4.72 4.72 4.72 4.72 5.74 Wastewater Ad min 4.19 4.19 4.52 4.72 4.72 4.72 4.72 4.72 4.72 5.70 Solid Waste Ad min 4.17 4.17 4.49 4.72 4.72 4.72 4.72 4.72 4.72 5.70 Police:

Sworn 39.00 39.00 40.00 41.00 41.00 47.00 48.00 48.00 48.00 48.00 Non-Sworn 19.50 20.50 23.50 24.50 24.50 26.50 26.50 26.50 26.50 27.50 Code Enforcement 2.50 2.50 2.50 2.50 4.50 5.50 5.50 5.50 5.50 8.50 Fire:

Sworn 15.90 15.90 15.90 15.90 15.90 17.90 17.90 17.90 17.90 20.90 Non-Sworn 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Bulldlng Sworn 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Building Non-Sworn 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Public Works:

Engineering 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 1.10 Water 11.19 11.19 11.76 11.76 11.76 11.76 11.76 11.76 11.95 12.85 Wastewater 10.59 10.59 10.90 10.90 10.90 10.90 10.90 10.90 11.31 13.40 Solid Waste 6.33 6.33 7.65 7.65 7.65 7.65 7.65 7.65 7.69 9.29 Streets 7.80 8.80 11.05 11.05 11.05 11.05 11.05 11.05 11.41 11.61 Maintenance 7.15 7.15 9.40 10.40 10.05 10.05 JO.OS JO.OS JO.OS 10.15 Recreation 1.19 1.19 1.19 1.19 2.54 3.54 3.54 3.54 3.54 4.54 Airport 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fleet 2.22 2.22 2.21 2.21 2.21 2.21 2.21 2.21 3.21 4.26 F3cilities Maintenenace 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 Redevelopment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Information Technology 3.00 3.00 3.00 3.00 3.00 3.00 1.00 1.00 l.OC 1.00 148.00 151.00 164.00 167.00 170.00 182.00 181.00 181.00 184.00 205.00 Source: City of Los Banos Finance Department
116
215

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Operating Information, Operating Indicators by Function/Program 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

FUNCTION/ PROGRAM
Police:

Jail Bookincs 121 1,610 1,724 1,905 1,508 1,261 1,063 1,206 985 877 547 Traffic Collisions 121 421 546 631 361 425 369 404 487 497 442 Parking Citations t
2 J 654 966 889 611 778 443 743 888 492 407
Moving Citations t:Zl 2,929 3,803 2,919 1,509 707 1,162 2,653 3,381 1,408 2,270 Fire:

Fire Calls 677 914 973 989 961 983 1,080 1,075 1,077 1,546 Medical calls 1,664 1,793 1,737 1,923 1,889 1,930 1,854 2,097 2,311 1,925 Inspections (7) 720 751 732 751 816 559 541 890 989 N/A Public Works
Streets:

Street Surfacing (Miles) 141 0.55 0.52 1.04 1.04 3.12 10.27 5.53 2.04 0.64 2.55 Parks and Recreation:

Rec. Youth Program Enrollments 11 >13}(5
) 1,240 1,202 1,266 1,295 1,264 1,231 0 1,621 2,241 2,230 Water:

Water Delivered (millions) 2,389 2,169 2,158 2,415 2,496 2,455 2,707 2,757 2,726 2,552 Connections 10,816 11,369 11,648 11,974 11,974 12,425 12,781 13,168 13,394 13,490 Sewer:

Average Daily Flow (mgd) 2.93 2.90 2.80 2.70 2.50 2.80 3.30 3.30 3.46 3.46 Connections 10,640 11,077 11,294 11,601 11,843 12,062 12,428 12,783 12,990 12,718 Solid Waste:

Street Sweeping,
Miles per Year 22,576 22,386 21,225 22,163 23,406 20,730 20,133 21,903 23,796 23,950 Green Waste Pick•ups 10,193 10,491 10,546 10,822 11,341 11,284 11,658 12,035 12,271 11,788 Recycling Pick-ups 10,205 10,600 10,535 10,807 10,807 11,268 11,646 12,029 12,268 11,780 Source: Various Gty Departments
Notes: (1) In FY 2014·2015 the city offered British Soccer (2) Bookings, Collisions and Citation numbers have decreased due to Law changes and reduction in staffing. (3) In FV 2019-2020 the City offered 2 new youth programs {4h Stem & Volleyball}, however did not offer Tee-Ball or Spring Soccer due to Covid-19. (4) In FY 2019-2020 the increase is due to Measure V funding and the city now owns its own equipment and is able to complete more projects. (5) No youth enrollment due to covis-19 and all programs being suspended. (6) In FV 2023-2024 the Solid Waste provider took over the billing for commercial Solid Waste accounts. (7) IN FV 2023-2024 there was a software conversion and data is not available. 117
216

CITY OF LOS BANOS I LAST TEN FISCAL YEARS
Operating Information, Capital Assets Statistics by Function/Program 2014-2015 2015-2016 2016-2017 2017-2018 2018·2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 EU~OIQ~lEBQGRAM
Police:

Stations 1 1
Patrol Units 18 15 14 18 16 19 19 22 23 23
Motorcycle Units 2 2
Fire:

Stations ' Service Units 13 14 16 16 15 15 16 16 16 12
Public Works
Streets:

Miles 123 123 123 123 123 123 125 131 136 136
Parks and Recreation:

Acreage 233 233 233 233 233 233 281 270 275 275
Playgrounds 32 32 32 32 32 32 36 36 35 35
Baseball/Softball Diamonds 5 5 5 s 5 9
Soccer/Football Fields 4 4 4 4 4 4
Basketbc1II Courts 13 13 13 13 13 13 14 14 18 18
Water:

Water Mains (miles) 172 172 172 172 172 172 172 172 172 172 Fire Hydrant s 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,610 1,620 1,620 Storage Capacity (gallons) 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 5,100,000 Sewer:

Sanitary Sewers (miles} 130 130 130 131 131 131 133 133 133 133 Solid Waste:

Street Sweepers
Source: Various City Departments
118
217
City of Los Banos I CA
Single Audit Report
For the Year Ended June 30, 2024
~ PRICE PAIGE & COMPANY 11!1 Certified Public Accountants 218
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Single Audit Report

TABLE OF CONTENTS
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
PAGE
Accordance with Government Auditing Standards ....................... ................................................................................... l Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ....................... ................................................... ............................................................................. 3 Schedule of Expenditures of Federal Awards .................................................................. ................................................... 6 Notes to the Schedule of Expenditures of Federal Awards .................... ............................................................................ 7 Schedule of Findings and Questioned Costs ..................................................................................... ..... .-............................ 8 Summary Schedule of Prior Audit Findings ....................................................................................................................... 10 219
ii PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Los Banos, 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 Los Banos, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise The City's basic financial statements, and have issued our report thereon dated May 2, 2025.

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

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

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

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 1 570 N . Magnolia Avenue, Suite I 00
Clovis, CA 93611
www.ppc.cpa
tel 559.299.9540
fax 559.299.2344
220
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 City'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 City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
May 2, 2025
2 221
Iii PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Los Banos, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Los Banos, California's (the City) compliance with the types of compliance requirements identified as subject to audit in the 0MB 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 2024. 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, 2024.

Basis for Opinion an 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. 3 570 N. Magnolia Avenue, Su ice I 00
Clovis, CA 93611
www.ppc.cpa
tel 559.299.9540
fax 559.299.2344
222
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. • 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.
4 223
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Los Banos, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements.

We issued our report thereon dated May 5, 2025, 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.

Clovis, California
May 5, 2025
5 224
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Expenditures of Federal Awards
Federal Granter/Pass-Through Granter/Program Title
U.S. DEPARTMENT OF TRANSPORTATION
Pass-through California Department ofTransportation:

Highway Planning and Construction:

Signal Synch Project
Pioneer Road Widening
Pioneer Road/Intersection
Total U.S. Department of Transportation
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Pass-through California Department of Housing and Community Development:

Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii:

Neighborhood Stabilization Program - Program Income
Total U.S. Department of Housing and Urban Development

TOTAL EXPENDITURES OF FEDERAL AWARDS
Assistance
Listing
Number

20.205

20.205

20.205

14.228
The accompanying notes are an integral part of this statement, 6 Pass-Through
Grantor's
Number
CML-5160-028
HIPLPPSB-5160(029)
CML-5160(031)
09-NSPl-6063
$
$
Federal
Expenditures
585,421
128,197
198,816
912,434
3,979
3,979
916,413
225
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Notes to the Schedule of Expenditures of Federal Awards

GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Los Banos (the City). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA is presented in accordance with the 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).

BASIS OF ACCOUNTING
The accompanying SEFA is presented using the modified accrual basis of accounting, except for the programs recorded in the City's enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 of the City's basic financial statements.

RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the City's basic financial statements.

INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 7 226
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Findings and Questioned Costs

SECTION I -SUMMARY OF AUDITOR'S RESULTS

FINANCIAL STATEMENTS
Type of auditor's report issued:

Internal control over financial reporting:

Material weaknesses identified?
Significant deficiencies identified -
not considered to be material weaknesses?
Noncompliance material to financial statements noted?

FEDERAL AWARDS
Internal control over major programs:

Material weaknesses identified?
Significant deficiencies identified -
not considered to be material weaknesses?
Type of auditor's report issued on compliance for
major programs:

Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)?
IDENTIFICATION OF MAJOR PROGRAMS:

Assistance Listing Number(s)

20.205
Dollar threshold used to distinguish
between Type A and Type B programs:

Auditee qualified as low-risk auditee?
8 Unmodified
Yes X No ---- ----
Yes ---- __ x__ None reported
Yes X No ---- ----
Yes X No ----
Yes X None reported ---- ----
Unmodified
Yes X No ----
Name of Federal Program or Cluster
Highway Planning and Construction
$750,000
Yes X No ---- - - --
227
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Schedule of Findings and Questioned Costs (Continued)

SECTION II - FINANCIAL STATEMENT FINDINGS
None reported.

SECTION Ill - FEDERAL AWARD FINDINGS
None reported.
9 228
CITY OF LOS BANOS I FOR THE YEAR ENDED JUNE 30, 2024
Summary Schedule of Prior Audit Findings

FINANCIAL STATEMENT FINDINGS
None reported.

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
10 229
Iii PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be
May 2, 2025
To the Management of the
City of Los Banos
Los Banos, California
In planning and performing our audit of the financial statements of the City of Los Banos (the City) as of and for the year ended June 30, 2024, 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 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.

However, during our audit we became aware of other matters that are opportunities for strengthening internal controls and operating efficiency. The following points summarize our comments and suggestions regarding those matters.

User Access Controls
During our audit, we identified multiple instances whereby the City did not remove user access to the City's accounting software following their resignation . This increases the risk of unauthorized access as the individuals retained system privileges beyond their employment period. Failure to promptly revoke system privileges following an employee's termination or resignation increases the potential for data manipulation or misuse of financial information. We recommend that the City implement a process to ensure that system access is promptly (within the same day) revoked upon employee termination or resignation.

Grant Reconciliations
During our audit, we identified an instance where grant activity was excluded from the grant reconciliation and the City improperly recognized grant revenue that was not in accordance with the matching principal of accounting. We recommend that the City design and implement controls to ensure the preparation of a complete and accurate grant reconciliation and ensure that revenues are accrued in accordance with the matching principle of accounting.

We will review the status of these comments during our next audit engagement. We have already discussed 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 these recommendations.

This communication is intended solely for the information and use of management of the City, and others within the City, and is not intended to be, and should not be, used by anyone other than those specified parties. This letter does not affect our report dated May 2, 2025, on the financial statements of the City of Los Banos.

Sincerely,
570 N. Magnolia Avenue, Suite I 00
Clovis, CA 9361 I
www.ppc.cpa
tel 559.299. 9540
fax 559.299.2344
230
liDII PRICE PAIGE & COMPANY
1111 Certified Public Accountants
The Place to Be
May 2, 2025
To the Honorable Mayor and Members of the City Council
City of Los Banos, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Los Banos, California (the City), for the year ended June 30, 2024.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, 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 engagement letter previously provided to you. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

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

Management's estimate of the net pension liability and related deferrals is based on actuarial valuations.

We evaluated the methods, assumptions, and data used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

Other postemployment benefit obligations are determined using terms of various healthcare plans offered, together with relevant actuarial assumptions and healthcare cost trend rates, projected annual rates and discount rates. We evaluated the key factors and assumptions used to develop the other postretirement benefit obligation in determining that is it reasonable in relation to the financial statements taken as a whole.

Management's estimate of the landfill closure and postclosure care cost is based on various factors including: landfill total estimated capacity, cumulated capacity used, estimated costs to close (adjusted annually for inflation). We evaluated the key factors and assumptions used to develop the landfill closure and post closure care cost in determining that it is reasonable in relation to the financial statements taken as a whole.
570 N. Magn,.,lia Avenue, Suite I 00
Clovis, CA 9361 I
www.ppc.cpa
tel 559.299.9540
fax 559.299.2344
231
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the financial statements were:

The disclosure of the Deficit Fund Balance/Net Position in Note 2 to the financial statements provides information regarding the City's funds that have liabilities which exceed their assets resulting in a deficit fund balance.

The disclosure of the City's Defined Benefit Pension Plan in Note 11 to the financial statements provides detailed information on the pension plan including a description of the plan, benefits provided, contributions, calculations of the net pension liability and related deferrals, actuarial assumptions and discount rate used to measure the liability.

The disclosure of the City's Other Postemployment Benefit (OPEB) Plan in Note 12 to the financial statements provides detailed information on the OPEB plan including a description of the plan, benefits provided, contributions, calculations of the OPEB liability and related deferrals, actuarial assumptions and discount rate used to measure the liability.

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 attached schedule (Uncorrected Audit Differences) summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. In addition, the attached schedule of material misstatements (Corrected Audit Adjustments) detected as a result of audit procedures were corrected by management.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. 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 May 2, 2025.

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

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 232
In our audit engagement letter previously provided to you, we communicated the following significant risks of material misstatement (significant risks) as part of our audit planning:
• Management override of controls
• Improper revenue recognition due to fraud
During the course of the audit, we identified additional significant risks:
• Risk of error in transferring data during implementation of new accounting software • Integration of Successor Agency activity into the City's financial statements • The City may not properly account for the completion of the closing of the landfill These risks were addressed within our audit procedures and we have no findings to report related to these risks.

Other Matters
We applied certain limited procedures to management's discussion and analysis, budgetary comparison information, the proportionate share of net pension liability, the schedule of pension contributions, the schedule of changes in net OPEB liability and related ratios, and the schedule of OPEB contributions, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund financial statements and schedules, as listed within the table of contents of the financial statements, and the Schedule of Expenditures of Federal Awards (supplementary information), but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements.

We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

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

Very truly yours,
233
Client:

Engagement:

Current Period:

Workpaper:

Account
PJEOl

CITY OF LOS BANOS
6-30-24 Audit
06/30/2024
Attachment: Uncorrected Audit Differences
Descrip_tlon
Proposed entry to correct grant revenues that should have been recognized in the PY per the matching principl, 229-000-331-010 Federal Grant
229-000-253-020 Fund Balance
Total
PJEDZ
Proposed entry to record lease in accordance with GASB 87 PPC-LA Right to use lease asset
PPC-LL Lease Liability
Total
PJE03
Proposed entry to accrue pending litigation liability
PPC-L TL Pending litigation liability
PPC-LEX Pending litigation expense
Total

GRAND TOTAL
Misstatement Workpaper Reference Debit Credit Net Income Effect Known Classification RE600
200,135.29 0.00

0.00 200,135.29
200,135.29 200,135.29 ~ 135.29)
Projected Misstatement L500
20,121.00 0.00

0.00 20,121.00
20,121.00 20,121.00 0.00
Projected Misstatement 0552.1

0.00 50,000.00
50,000.00 0.00
50,000.00 50,000.00 o.oo
270,256.29 270,256.29 1200,135.29)
234
Client:

Engagement:

Current Period:

Workpaper:

Account
AJE01
To reconcile opening fund balance/net position

CITY OF LOS BANOS
6-30-23 Audit
6/30/2023
Corrected Audit Adjustments
Descrie_tion
100-000-253-020 Fund Balance
100-410-100-260 Office Supplies
250-000-253-020
250-454-220-231
293-000-253-020
293-463-100-238
236-000-253-020
236-421-100-260
214-000-253-020
214-430-210-233
287-000-253-020
287-458-200-230
505-000-253-020
505-435-100-260
323-000-253-020
323-421-100-740
510-490-100-734
510-000-253-020
510-000-253-020
510-410-100-260
601-000-253-020
601-480-210-260
502-432-990-739
502-000-253-020
510-000-101-009
510-000-102-051
501-000-253-020
501-410-100-260
Total
AJE06
Fund Balance
Professional Services
Fund Balance
Technical Services
Fund Balance
Office Supplies
Fund Balance
Consulting Services
Fund Balance
Administrative Services
Retained Earnings
Office Supplies
Fund Balance
Miscellaneous Equipment
Landfill Closure
Retained Earnings
Retained Earnings
Office Supplies
Fund Balance
Office Supplies
Master Plan Improvements
Retained Earnings
Claim On Cash
Restricted Cash-Landfill
Retained Earnings
Office Supplies
To reclass PHLA funding received but not unearned in FY23/24 296-000-334-010 State Grant
296-000-222-000
Total
Deferred Revenues
Workpaper Refe Debit
N200
0207
Credit Net Income Effect

0.00 1,863.70
1,863.70 0.00

0.00 1,731.94
1,731.94 0.00

0.00 42.31

42.31 0.00

0.00 278.26
278.26 0.00

0.00 382.61
382.61 0.00

0.00 32.54

32.54 0.00

0.00 32.48

32.48 0.00

0.00 785.15
785.15 0.00

0.00 1,967,884.09
1,967,884.09 0.00

0.00 622.00
622.00 0.00

0.00 90.00

90.00 0.00
33,344.00 0.00

0.00 33,344.00

0.00 1,722,280.31
1,722,280.31 0.00

0.00 2,332.00
2,332.00 0.00
3,731,701.39 3,731,701.39 1,926,347.10
188,184.00 0.00

0.00 188,184.00
188,184.00 188,184.00 (188,184.00)
235