Los Banos City Council
January 21, 2026

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

CITY COUNCIL MEETING
AND

LOS BANOS SUCCESSOR AGENCY MEETING
*Both meetings to run concurrently*

CITY HALL COUNCIL CHAMBERS
520 J Street
Los Banos, California
JANUARY 21, 2026 - 6:00 PM
Live stream on YouTube at:
https ://www .voutube.com/@losbanos406
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 me nos 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.
* * * * * * * * * * ,,. * * * * * *
Cua/quier escritura o los documentos proporcionaron a una mayoria de/ Ayuntamiento respecto a cualquier articulo en este orden def dia sera hecho disponible para la inspecci6n publica en la reunion 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 the City's website at the following link: https://losbanos.org/category/city-council/ • - Los Banos City Council Agenda - January 21, 2026 Page 1 of4 1 1. CALL TO ORDER - January 21, 2026 6:00 PM

2. PLEDGE OF ALLEGIANCE.

3. ROLL CALL: (City Council Members & Successor Agency Board Members) __ Mitzy Perez - District 1
Marcus Chavez - District 3
__ Michael Amabile - Mayor
__ [vacant] - District 2
Deborah Lewis - District 4

4. CONSIDERATION OF APPROVAL OF AGENDA.

Recommendation: Adopt the agenda as submitted.

5. PRESENTATION.

A. Certificate of Recognition - Employee of the Month for December 2025 - Aaron Goins, Police Officer, Police Department.

B. Proclamation Recognizing Reverend Dr. Martin Luther King, Jr. Day C. Proclamation Recognizing the Retirement of Human Resources Director Lucy Mallonee.

D. City Council Resolution No. 7037 - Commendation to Evan Sanders Recommendation: Adopt the resolution as submitted.

6. NEW EMPLOYEE INTRODUCTIONS.

7. 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.)

8. 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 #255329 - #255789 in the Amount of $3,602,235.72.

Recommendation: Approve the check register as submitted.

8. City Council Meeting Minutes for December 17, 2025.

Recommendation: Approve the minutes as submitted.

C. City Council Resolution No. 7038 - Delegate Substitution for the 2026 Merced County Association of Governments (MCAG) One Voice Program.

Recommendation: Adopt the resolution as submitted.

Los Banos City Council Agenda - January 21, 2026 Page 2of4 pgs. 1-4
pgs. 5-12
pgs. 13-20
pgs. 21-30
pgs. 31-34
2 D. City Council Resolution No. 7039 - Accepting the Transportation Development Act Funds Financial Statement for the Years Ended June 20, 2022 and 2021 .

Recommendation: Adopt the resolution as submitted.

E. City Council Resolution No. 7040 - Authorizing the Release of Unclaimed Checks Pursuant to California Government Code Section 50055 to the City of Los Banos.

Recommendation: Adopt the resolution as submitted.

F. City Council Resolution No. 7041 - Rejecting the Bids for the Construction of Well No. 16 Test Well No. 2.

Recommendation: Adopt the resolution as submitted.

G. *CONSIDERATION OF APPROVAL OF THE LOS BANOS SUCCESSOR AGENCY MINUTES FOR JANUARY 15, 2025.

Recommendation: Approve the minutes as submitted.

9. APPOINTMENT OF MEMBERS TO THE FOLLOWING COMMISSIONS:

A. Airport Advisory Commission
Two (2) Two (2) Year Terms - Expiring December 31, 2027 B. Parks & Recreation Commission
Two (2) Two (2) Year Terms - Expiring December 31, 2027 C. Tree Commission
Three (3) Two (2) Year Terms - Expiring December 31, 2027 Recommendation: Appoint commissioners to fill the vacancies.

10. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7042- ACCEPTING THE 2024/2025 FISCAL YEAR AUDIT REPORTS CONSISTING OF

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

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

11. *CONSIDERATION OF APPROVAL OF THE LOS BANOS SUCCESSOR AGENCY RESOLUTION NO. 2026-1 - APPROVING A RECOGNIZED

OBLIGATION PAYMENT SCHEDULE (ROPS) AND ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2026-2027.

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

12. CITY DEPARTMENT REPORTS.

A. Community & Economic Development
Los Banos City Council Agenda - January 21, 2026 Page 3of4 pgs. 35-56
pgs. 57-60
pgs. 61-74
pgs. 75-76
pgs. 77-78
pgs. 79-224
pgs. 225-235
3 B. Finance
C. Fire
D. Human Resources
E. Parks & Recreation
F. Police
G. Public Works
Recommendation: Informational item only, no action to be taken.

13. CITY ATTORNEY REPORT.

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

14. CITY MANAGER REPORT.

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

15. CITY COUNCIL MEMBER REPORTS.

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

16. CLOSED SESSION - Conference with Legal Counsel - Anticipated Litigation, Significant Exposure to Litigation Pursuant to Paragraph (2) or (3) of Subdivision (d) of Section 54956.9 of the Government Code: One Case.

17. ADJOURNMENT.

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

Dated this _lutth day of January 2026
Los Banos City Council Agenda - January 21, 2026 Page 4 of 4 4 LOs Banos
At the Crossroads of California
CERTIFICATE OF RECOGNffiON
Presented to

AARON GOINS
Detective - Police Department
In recognition of your outstanding peifonnance
and dedicated service to tfie City of Los <Banos and for 6eing named "P,mp{oyee of tfie ?rt.ontfi "for (})ecem6er 2025 .ft:waraetf January 21, 2026
Michael S. Amabile, Mayor
ITEM 5A
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6 LOsBanos
At the Crossroads of California

PROCLAMATION RECOGNIZING
REVEREND MARTIN LUTI-IER KING JR. DAY
WHEREAS, the Reverend Dr. MartinLutherKing, Yr. was born in Atlanta, Georgia on Yanuary 15, 1929 and made a lasting impression as a key leader in the American Civil Rights Movement during the 195o's and 196o's; and
WHEREAS, during speeches and rallies in ourNation's capital and throughout America, Reverend Dr. Martin Luther King, Jr. promoted his dream ofa Nation where everyone is treated as equals and isjudged "not by the color of theirskin, but by the content oftheir character"; and
WHEREAS, people throughout the world continue to look to ReverendDr. MartinLutherKing, Jr. 's example as a model on human relations, and his efforts in the daily struggle for civil human rights have continued since his assassination in 1968 and willcontinue until his dream of absolute freedom, equality, and justice for all is fi,nally realized; and
WHEREAS, the City of Los Banos is proud to honor and
celebrate the life of the Reverend Dr. Martin Luther King, Jr.

NOW, THEREFORE, BE IT PROCLAIMED, that theMayor and City Council Members of the City of Los Banos do hereby recognize Monday, Yanuary 19, 2026 as Martin Luther King Jr. Day in the City ofLos Banos and encourage allcitizens to celebrate and remember the many accomplishments ofReverendDr. Martin Luther King, Jr.

In witness whereof, I have hereuntoset my hand and causedto be affixed the seal of the City ofLos Banos, this 21st day ofJanuary, 2026. APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
ITEM 5B
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8 LOsBanos
At the Crossroads of California
PROCLAMATION RECOGNIZING lHE RETIREMENT

OF CITY OF LOS BANOS HUMAN RESOURCES

DIRECTOR LUCY MALLONEE
WHEREAS, Lucy Mallonee joined the City of Los Banos as a Clerk Typist I on August 16, 1994; and
WHEREAS, Lucy Mallonee served as Deputy City Clerk begi,nning in November 1994 and was later appointed City Clerk in August 2002, a position she continues to hold; and
WHEREAS, Lucy Mallonee was promoted to Clerk Typist II in February, 1996 and subsequently to Accounting Lead Clerk in July, 1997, and then Staff Accountant in August 2000; and
WHEREAS, Lucy Mallonee became Human Resources Director in September, 2002 and served as Administrative Services Director from December 2011 to October 2013, overseeing both the Human Resources and Finance departments; and
WHEREAS, Lucy Mallonee has contributed tremendously throughout her career to the community of Los Banos with her knowledge and commitment to her job; and
WHEREAS, Lucy Mallonee retired from the City of Los Banos as Human Resources Director on December 31, 2025 with over 31 years of service as a City employee.

NOW, THEREFORE, BE IT PROCLAIMED that the Mayor and City Council Members of the City of Los Banos do commend Lucy Mallonee on her dedication and loyalty to the City of Los Banos and congratulate her on her retirement.

In witness thereof, I have hereunto set my hand and caused to be affixed the seal of the City of Los Banos, this 2ft day of January, 2026.

APPROVED:

Michael S. Amabile, Mayor
ATTEST:

Lucille L. Mallonee, City Clerk
ITEM 5C
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10 LOsBanos
At the Crossroads o.f California
RESOLUTION NO. 7037

A RESOLUTION OF COMMENDATION TO

EVAN SANDERS
WHEREAS, EVAN SANDERS was appointed as Council Member for District 2 of Los Banos on January 8, 2025; and
WHEREAS, EVAN SANDERS has faithfully served the City of Los Banos and its City Council for one year as Council Member for District 2; and WHEREAS, by his devotion to his duties EVAN SANDERS has greatly contributed to the governmental process of the City of Los Banos; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Los Banos that it hereby expresses its sincere gratitude and appreciation to EVAN SANDERS for his service to the City of Los Banos in his capacity of Council Member for District 2.

BE IT FURTHER RESOLVED that an embossed copy of this resolution be presented to EVAN SANDERS as an expression of the City's appreciation.

The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Los Banos held on the 21 st day of January 2026 by the following affirmative vote:

APPROVED:

Michael S. Amabile, Mayor
Mitzy Perez
Council Member - District 1
Marcus Chavez
Council Member - District 3
Deborah Lewis
Mayor Pro Tem/Council
Member - District 4
ATTEST:

Lucille L. Mallonee, City Clerk
Soknirom Than, City Manager
ITEM 5D
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12 CK# 255329 - # 255789 01/21/26 $3,602,235.72
Los Banos .\f Jh4 Cn.)s.s,oad!t of C ali{tlfnlu
Check Number Payment Date Vendor Module Payment Type Payment Amount 255329 12/12/2025 Anabasis LLC Accounts Payable Check 3,556.25 255330 12/12/2025 Apex Annex Health Center, Inc. Accounts Payable Check 910.00 255331 12/12/2025 Best Best & Krieger Accounts Payable Check 1,258.60 255332 12/12/2025 Raymond Brown Accounts Payable Check 189.00 255333 12/12/2025 Eddie Drum Accounts Payable Check 189.00 255334 12/12/2025 Diego Flores Accounts Payable Check 412.00 255335 12/12/2025 KD Medical Group, Inc. Accounts Payable Check 44.00 255336 12/12/2025 Los Banos Unified School District Accounts Payable Check 499.61 255337 12/12/2025 Christy McCammond Accounts Payable Check 121.00 255338 12/12/2025 Justin Melden Accounts Payable Check 189.00 255339 12/12/2025 Merced County Auditor Controller Accounts Payable Check 775.00 255340 12/12/2025 Merced County Clerk Accounts Payable Check 50.00 255341 12/12/2025 Chetna Patel Accounts Payable Check 189.00 255342 12/12/2025 Alves Management, Inc Accounts Payable Check 318.50 255343 12/12/2025 Associates Lock & Safe Accounts Payable Check 324.36 255344 12/12/2025 AT&T Mobility Accounts Payable Check 6,136.26 255345 12/12/2025 Priscilla Ambriz Accounts Payable Check 40.00 255346 12/12/2025 Lisa Anderson Accounts Payable Check 80.00 255347 12/12/2025 Cecilia Arevalo Accounts Payable Check 80.00 255348 12/12/2025 Alejandra Armenta Accounts Payable Check 600.00 255349 12/12/2025 Debie Ascension Accounts Payable Check 600.00 255350 12/12/2025 Oscar Avalos Accounts Payable Check 40.00 255351 12/12/2025 B Safe Playground Inspection Services, Inc. Accounts Payable Check 1,000.00 255352 12/12/2025 Bear State Electric, Inc. Accounts Payable Check 250.00 255353 12/12/2025 Beam Insurance Administrators LLC Accounts Payable Check 23,337.96 255354 12/12/2025 BJ's Consumers Choice Pest Control Inc. Accounts Payable Check 237.00 255355 12/12/2025 Brinks Inc. Accounts Payable Check 1,008.27 255356 12/12/2025 BSK Associates Accounts Payable Check 1,690.72 255357 12/12/2025 Burton's Fire Inc. Accounts Payable Check 558.99 255358 12/12/2025 Kenneth Baca Accounts Payable Check 40.00 255359 12/12/2025 Naybe Bustos Accounts Payable Check 40.00 255360 12/12/2025 Cal Traffic Accounts Payable Check 4,130.72 255361 12/12/2025 A & E Industrial Cleaning Equipment Accounts Payable Check 577.51 255362 12/12/2025 Cascade Fire Equipment Company Accounts Payable Check 1,828.51 255363 12/12/2025 CENCAL Machine & Fabrication Inc. Accounts Payable Check 1,394.00 255364 12/12/2025 Cintas Corporation No.2 Accounts Payable Check 32.76 255365 12/12/2025 Central Valley Concrete Inc. Accounts Payable Check 3,130.91 255366 12/12/2025 Comcast Accounts Payable Check 274.25 255367 12/12/2025 Critical Reach Inc. Accounts Payable Check 775.00 255368 12/12/2025 Albert Camarillo Accounts Payable Check 40.00 255369 12/12/2025 Diego A Carrillo Gonzalez Accounts Payable Check 40.00 255370 12/12/2025 Lidia Castandea Accounts Payable Check 80.00 255371 12/12/2025 Ashley Cortez Accounts Payable Check 40.00 255372 12/12/2025 Danielle cortez Accounts Payable Check 80.00 255373 12/12/2025 Priscilla Corona Accounts Payable Check 40.00 255374 12/12/2025 Dept. of Industrial Relations Accounts Payable Check 450.00 255375 12/12/2025 Dos Palos Publishing Company Accounts Payable Check 462.00 255376 12/12/2025 Alisha De La Cruz Accounts Payable Check 40.00 255377 12/12/2025 Cassandra Del Rio Accounts Payable Check 40.00 255378 12/12/2025 Ray Delgado Accounts Payable Check 40.00 255379 12/12/2025 Ducks Unlimited Accounts Payable Check 500.00 255380 12/12/2025 Maci Dutra Accounts Payable Check 80.00 255381 12/12/2025 ES West Coast, LLC Accounts Payable Check 136,512.54 255382 12/12/2025 Fehr & Peers Accounts Payable Check 384.25 255383 12/12/2025 Firefighter Inspiration Readiness & Education LLC Accounts Payable Check 12,600.00 255384 12/12/2025 Daniel Field Accounts Payable Check 40.00 255385 12/12/2025 Galvin Preservation Associates, Inc. Accounts Payable Check 2,045.30 255386 12/12/2025 Government Revenue Solutions Holdings I, LLC Accounts Payable Check 3,727.50 ITEM 8A
13 255387 12/12/2025 Sandra Garcia Accounts Payable Check 40.00 255388 12/12/2025 Karl Glick Accounts Payable Check 120.00 255389 12/12/2025 William Gonzalez Accounts Payable Check 40.00 255390 12/12/2025 Alysia Greenwood Accounts Payable Check 40.00 255391 12/12/2025 Kendall Guerrero-Bryant Accounts Payable Check 40.00 255392 12/12/2025 Deanni Marie Higgason Accounts Payable Check 1,475.00 255393_ 12/12/2025 Guadalupe Hernandez Romero Accounts Payable Check 40.00 255394 12/12/2025 Nyah Hornbeak Accounts Payable Check 40.00 255395 12/12/2025 lnfoSend Inc. Accounts Payable Check 9,557.03 255396 12/12/2025 Marciela lnguanzo Accounts Payable Check 40.00 255397 12/12/2025 JB Anderson Land Use Planning Accounts Payable Check 49,703.42 255398 12/12/2025 Gabriela Jurado Accounts Payable Check 80.00 255399 12/12/2025 TimJ Law Accounts Payable Check 2,600.00 255400 12/12/2025 Los Banos Car Wash Inc Accounts Payable Check 300.00 255401 12/12/2025 Los Banos Veterinary Services Accounts Payable Check 4,727.32 255402 12/12/2025 Breanna Landschoot Accounts Payable Check 40.00 255403 12/12/2025 Robert Latham Accounts Payable Check 40.00 255404 12/12/2025 Rogelio Linares Accounts Payable Check 40.00 255405 12/12/2025 Dulce Luana Accounts Payable Check 40.00 255406 12/12/2025 Marfab Inc Accounts Payable Check 233.76 255407 12/12/2025 Merced County Environmental Health Accounts Payable Check 1,440.00 255408 12/12/2025 Merced County Farm Bureau Accounts Payable Check 300.00 255409 12/12/2025 Merced Truck & Trailer Inc Accounts Payable Check 1,121.24 255410 12/12/2025 Mission Merced Incorporated Accounts Payable Check 13,730.44 255411 12/12/2025 Monterey Auto Services Inc. Accounts Payable Check 3,065.28 255412 12/12/2025 Reyna Macias Accounts Payable Check 80.00 255413 12/12/2025 Eduviges Martinez Accounts Payable Check 40.00 255414 12/12/2025 Arisbeth Mejia Accounts Payable Check 40.00 255415 12/12/2025 Pedro Oscare Moreno Accounts Payable Check 40.00 255416 12/12/2025 NDN International LLC Accounts Payable Check 2,254.11 255417 12/12/2025 Irene Nieto Accounts Payable Check 40.00 255418 12/12/2025 Monica Nunez Accounts Payable Check 80.DD 255419 12/12/2025 OSE Accounts Payable Check 3,050.44
255420 12/12/2025 O'Reilly Auto Parts Accounts Payable Check 2,065.25 255421 12/12/2025 PG&E Company Accounts Payable Check 3,000.00 255422 12/12/2025 Precision Civil Engineering, Inc Accounts Payable Check 2,892.50 255423 12/12/2025 Provost and Pritchard Engineering, Inc. Accounts Payable Check 15,224.04 255424 12/12/2025 Cynthia Palacios Accounts Payable Check 40.00 255425 12/12/2025 Edith Quantimilla Accounts Payable Check 40.00 255426 12/12/2025 Razzari Dodge Chrysler Jeep Accounts Payable Check 857.02 255427 12/12/2025 Razzari Ford Accounts Payable Check 147.93 255428 12/12/2025 Reliance Standard Life Insurance Company Accounts Payable Check 6,046.40 255430 12/12/2025 Beverly Resendiz Accounts Payable Check 40.00 255431 12/12/2025 Josefine Rios Accounts Payable Check 40.00 255432 12/12/2025 Adrianna Rivas Accounts Payable Check 40.00 255433 12/12/2025 Alma Robles Accounts Payable Check 40.00 255434 12/12/2025 Juanita Rocha Accounts Payable Check 80.00 255435 12/12/2025 Maria Rocha Accounts Payable Check 40.00 255436 12/12/2025 Lizbeth Rodriguez Accounts Payable Check 40.00 255437 12/12/2025 Nallely Ruiz Accounts Payable Check 40.00 255438 12/12/2025 Santos Ford Inc. Accounts Payable Check 145,000.00 255439 12/12/2025 Save Mart Supermarkets Accounts Payable Check 170.99 255440 12/12/2025 Sherwin Williams Co Accounts Payable Check 52.74 255441 12/12/2025 SHI International Corp Accounts Payable Check 2,494.20 255442 12/12/2025 SU Holdings, Inc Accounts Payable Check 1,306.88 255443 12/12/2025 Sorensens True Value Accounts Payable Check 2,432.45 255444 12/12/2025 Stantec Consulting Services, Inc. Accounts Payable Check 6,954.20 255445 12/12/2025 N lcole Seeba Accounts Payable Check 40.00 255446 12/12/2025 Dania Silva Accounts Payable Check 80.00 255447 12/12/2025 Adreanna Soliz Accounts Payable Check 40.00 255448 12/12/2025 T-Mobile USA Inc. Accounts Payable Check 522.78 255449 12/12/2025 Taylor Backhoe Service, Inc. Accounts Payable Check 879.86 255450 12/12/2025 Technicon Engineering Services, Inc. Accounts Payable Check 1,155.00 255451 12/12/2025 Terryberry Company LLC Accounts Payable Check 719.01 255452 12/12/2025 The Heil CO Accounts Payable Check 297.50 14 255453 12/12/2025 Tractor Supply Credit Plan Accounts Payable Check 1,832.18 255454 12/12/2025 Traffic Logix Corp. Accounts Payable Check 2,850.00 255455 12/12/2025 Cal Mat Co. Accounts Payable Check 254.06 255456 12/12/2025 Erika Trejo Accounts Payable Check 40.00 255457 12/12/2025 Uline, Inc. Accounts Payable Check 1,272.05 255458 12/12/2025 United Site Services, Inc. Accounts Payable Check 2,413.67 255459 12/12/2025 USA Blue Book Accounts Payable Check 1,242.48 255460 12/12/2025 Underground Electric Construction Co. LLC Attn Accounts Payable Dept. Accounts Payable Check 1,902.26 255461 12/12/2025 Stella Uscanga Accounts Payable Check 40.00

2.55462 12/12/2025 Vanir Construction Management, Inc. Accounts Payable Check 15,300.19 255463 12/12/2025 Vestis Group, Inc. Accounts Payable Check 556.08 255464 12/12/2025 Vestis Accounts Payable Check 2,257.63 255465 12/12/2025 Victory Tactical Gear, LLC Accounts Payable Check 2,468.63 255466 12/12/2025 Verizon Wireless Accounts Payable Check 460.13 255467 12/12/2025 Valley Onward Accounts Payable Check 300.00 255468 12/12/2025 Cecilia Vanegas Accounts Payable Check 80.00 255469 12/12/2025 West Coast Arborists, Inc. Accounts Payable Check 4,469.00 255470 12/12/2025 Westside Water Conditioning Accounts Payable Check 719.10 255471 12/12/2025 Willdan Engineering Accounts Payable Check 1,533.00 255472 12/12/2025 Windecker Inc Accounts Payable Check 6,103.82 255473 12/12/2025 Young's Air Conditioning Accounts Payable Check 666.68 255474 12/12/2025 Andrea Zavala Accounts Payable Check 80.00 255475 12/12/2025 Frances Zuniga Accounts Payable Check 120.00 255489 12/17/2025 Merced County Clerk Accounts Payable Check SO.OD 255490 12/17/2025 Ralph Anderson & Associates Accounts Payable Check 11,800.00 255492 12/19/2025 Apex Annex Health Center, Inc. Accounts Payable Check 270.00 255493 12/19/2025 Best Best & Krieger Accounts Payable Check 71.00 255494 12/19/2025 Brenda Ceja Accounts Payable Check 1,017.28 255495 12/19/2025 Jason Brum Accounts Payable Check 926.45 255496 12/19/2025 KD Medical Group, Inc. Accounts Payable Check 33.00 255497 12/19/2025 Gabriela Acosta Mendoza Accounts Payable Check 630.00 255498 12/19/2025 Jose Plascencia Accounts Payable Check 206.61 255499 12/19/2025 Ray Reyna Accounts Payable Check 189.00 255500 12/19/2025 State Water Resources Control Board Accounts Payable Check 65.00 255501 12/19/2025 SWRCB Accounting Office Accounts Payable Check 32,505.00 255502 12/19/2025 Westamerica Bank - Cafeteria Plan Accounts Payable Check 117,758.12 255503 12/19/2025 AAA Business Supplies Accounts Payable Check 456.75 255504 12/19/2025 Agee Construction Corporation Accounts Payable Check 159,111.70 255505 12/19/2025 Anderson Pump Company Inc Accounts Payable Check 143,521.24 255506 12/19/2025 Animal Damage Management, Inc. Accounts Payable Check 225.00 255507 12/19/2025 AT&T Mobility Accounts Payable Check 584.32 255508 12/19/2025 AT&T Accounts Payable Check 999.03
255509 12/19/2025 Barton Overhead Door Inc Accounts Payable Check 675.00 255510 12/19/2025 Bestco Electric Inc. Accounts Payable Check 564.12 255511 12/19/2025 BNP Media II, LLC Accounts Payable Check 99.99 255512 12/19/2025 BSK Associates Accounts Payable Check 9,829.61 255513 12/19/2025 Ca Dept of Justice Cashiering Unit Accounts Payable Check 490.00 255514 12/19/2025 A & E Industrial Cleaning Equipment Accounts Payable Check 257.85 255515 12/19/2025 Carollo Inc. Accounts Payable Check 13,491.50 255516 12/19/2025 Challenger Teamwear Accounts Payable Check 997.93 255517 12/19/2025 Clark Pest Control Inc Accounts Payable Check 221.00 255518 12/19/2025 CSG Consultants Inc. Accounts Payable Check 81,972.12 255519 12/19/2025 Culver Company LLC Accounts Payable Check 3,347.47 255520 12/19/2025 City of Los Banos Utility Accounts Payable Check 5,834.31 255521 12/19/2025 D & D Pest Control Accounts Payable Check 92.00 255522 12/19/2025 Dos Palos Publishing Company Accounts Payable Check 190.00 255523 12/19/2025 Ferrellgas, Inc. Accounts Payable Check 202.98 255524 12/19/2025 Fox Press LLC Accounts Payable Check 1,225.00 255525 12/19/2025 Frontline General Engineering Construction Inc Accounts Payable Check 15,947.69 255526 12/19/2025 Fun Express LLC Accounts Payable Check 517.37 255527 12/19/2025 Garton Tractor Inc Accounts Payable Check 273.80 255528 12/19/2025 GoTo Communications, Inc. Accounts Payable Check 3,973.35 255529 12/19/2025 Gouveia Engineering Inc. Accounts Payable Check 24,159.07 255530 12/19/2025 Granite Construction Inc Accounts Payable Check 2,369.14 255531 12/19/2025 Jerry Witt Accounts Payable Check 2,389.00 15 255532 12/19/2025 Jerry Kelly Inc. Accounts Payable Check 530.70 255533 12/19/2025 J.J.R. Enterprises Inc. Accounts Payable Check 3,757.79 255534 12/19/2025 Kellogg's Supply Accounts Payable Check 525.00 255535 12/19/2025 Killingsworth Gear Accounts Payable Check 9,501.14 255536 12/19/2025 Krazan & Associates Accounts Payable Check 1,538.75 255537 12/19/2025 Language Line Services Accounts Payable Check 59.22 255538 12/19/2025 Lowe1
s Accounts Payable Check 639.99
255539 12/19/2025 Madera Uniform & Accessories, LLC Accounts Payable Check 77.21 255540 12/19/2025 Mark Thomas & Company. Inc. Accounts Payable Check 42,290.71 255541 12/19/2025 Tires to you Inc Accounts Payable Check 39.34 255542 12/19/2025 Marfab Inc Accounts Payable Check 9.00 255543 12/19/2025 McNamara Sports Inc Accounts Payable Check 2,859.75 255544 12/19/2025 Merced County Regional Waste Management Authority Accounts Payable Check 3,866.64 255545 12/19/2025 Modesto Janitorial Supply Center, Inc. Accounts Payable Check 711.82 255546 12/19/2025 Monterey Auto Services Inc. Accounts Payable Check 1,643.64 255547 12/19/2025 NDN International LLC Accounts Payable Check 200.26 255548 12/19/2025 Nossaman, LLP Accounts Payable Check 21,475.50 255549 12/19/2025 OSE Accounts Payable Check 23.91
255550 12/19/2025 O'Reilly Auto Parts Accounts Payable Check 768.07 255551 12/19/2025 OpenGov, Inc Accounts Payable Check 9,776.55 255552 12/19/2025 PG&E Company Accounts Payable Check 70.94 255553 12/19/2025 Pace Supply Corp. Accounts Payable Check 14.70 255554 12/19/2025 Provost and Pritchard Engineering, Inc. Accounts Payable Check 6,840.10 255555 12/19/2025 Sample Traps LLC Accounts Payable Check 440.00 255556 12/19/2025 Save Mart Supermarkets Accounts Payable Check 173.02 255557 12/19/2025 SHI International Corp Accounts Payable Check 112.16 255558 12/19/2025 Sorensens True Value Accounts Payable Check 1,068.78 255560 12/19/2025 SWRCB Accounting Office Accounts Payable Check 7,890.00 255561 12/19/2025 Talley Oil Inc. Accounts Payable Check 1,202.49 255562 12/19/2025 Telstar Instruments Accounts Payable Check 1,346.00 255563 12/19/2025 John Tapia Accounts Payable Check 859.45 255564 12/19/2025 Thirkettle Corporation Accounts Payable Check 33,552.20 255565 12/19/2025 Vanir Construction Management, Inc. Accounts Payable Check 18,979.24 255566 12/19/2025 Vestis Group, Inc. Accounts Payable Check 764.97 255567 12/19/2025 Vestis Accounts Payable Check 417.07
255568 12/19/2025 Verizon Wireless Accounts Payable Check 1,884.56 255569 12/19/2025 Windecker Inc Accounts Payable Check 3,077.30 255570 12/19/2025 Young's Air Conditioning Accounts Payable Check 535.00 255598 12/19/2025 Best Best & Krieger Accounts Payable Check 16,447.90 255599 12/19/2025 Robert Birdsall Accounts Payable Check 157.67 255600 12/23/2025 Aflac-Customer Service Accounts Payable Check 215.93 255601 12/23/2025 AFSCME District Council 57 Accounts Payable Check 2,215.26 255602 12/23/2025 Empower Annuity Ins. Co of America Accounts Payable Check 2,005.00 255603 12/23/2025 Empower Annuity Ins. Co of America Accounts Payable Check 1,665.04 255604 12/23/2025 Franchise Tax Board Accounts Payable Check 12.81 255605 12/23/2025 Los Banos Fitness & Racquet Club Accounts Payable Check 155.00 255606 12/23/2025 Los Banos Police Assn Accounts Payable Check 945.00 255607 12/23/2025 Los Banos Police Assn. Accounts Payable Check 315.00 255608 12/23/2025 MissionSquare Accounts Payable Check 1,595.89 255609 12/23/2025 MissionSquare Accounts Payable Check 11,962.50 255610 12/23/2025 Nationwide Retirement Solutions Accounts Payable Check 5,421.49 255611 12/23/2025 Professional Fire Fighter of Los Banos Local 4703 Accounts Payable Check 735.15 255612 12/23/2025 State Disbursement Unit Accounts Payable Check 1,471.00 255613 12/23/2025 Archer Civil Contruction, LLC Accounts Payable Check 334,672.37 255614 12/23/2025 Best Best & Krieger Accounts Payable Check 11,068.89 255615 12/23/2025 Liebert Cassidy Whitmore Accounts Payable Check 1,931.00 255616 12/23/2025 Jennifer Loa Accounts Payable Check 3,000.00 255617 12/23/2025 Lucky Plumbing & Rooter LLC Accounts Payable Check 350.00 255618 12/23/2025 Nossaman, LLP Accounts Payable Check 632.50 255619 12/23/2025 Rayshawn Owens Accounts Payable Check 1.09 255620 12/23/2025 State Water Resources Control Board Accounts Payable Check 323.00 255621 12/23/2025 Anderson Pump Company Inc Accounts Payable Check 6,879.26 255622 12/23/2025 Animal Damage Management, Inc. Accounts Payable Check 285.00 255623 12/23/2025 AT&T Accounts Payable Check 191.42
255624 12/23/2025 BSK Associates Accounts Payable Check 1,929.50 16 255625 12/23/2025 Burton's Fire Inc. Accounts Payable Check 737.53 255626 12/23/2025 Cal Traffic Accounts Payable Check 1,319.56 255627 12/23/2025 Copy Shipping Solutions Accounts Payable Check 120.70 255628 12/23/2025 D & D Pest Control Accounts Payable Check 75.00 255629 12/23/2025 Fehr & Peers Accounts Payable Check 32,965.68 255630 12/23/2025 Fun Express LLC Accounts Payable Check 388.89 255631. 12/23/2025 Gouveia Engineering Inc. Accounts Payable Check 1,071.00 255632 12/23/2025 Grainger Parts Operations Accounts Payable Check 969.63 255633 12/23/2025 Hach Company Accounts Payable Check 394.77 255634 12/23/2025 Connie ltaro Accounts Payable Check 350.00 255635 12/23/2025 Kellogg's Supply Accounts Payable Check 333.60 255636 12/23/2025 Mark Thomas & Company. Inc. Accounts Payable Check 971.50 255637 12/23/2025 Merced County Assessor Accounts Payable Check 215.00 255638 12/23/2025 Monterey Auto Services Inc. Accounts Payable Check 150.00 255639 12/23/2025 Napa Auto Parts of Los Banos Accounts Payable Check 881.10 255640 12/23/2025 OSE Accounts Payable Check 379.33
255641 12/23/2025 O'Reilly Auto Parts Accounts Payable Check 739.97 255642 12/23/2025 Provost and Pritchard Engineering, Inc. Accounts Payable Check 4,148.50 255643 12/23/2025 Quad Knopf, Inc. Accounts Payable Check 2,818.40 255644 12/23/2025 Save Mart Supermarkets Accounts Payable Check 15.20 255645 12/23/2025 Sorensens True Value Accounts Payable Check 1,028.87 255647 12/23/2025 Stephanie Servin Accounts Payable Check 600.00 255648 12/23/2025 The Webstaurant Store, Inc. Accounts Payable Check 5,202.60 255649 12/23/2025 US Bank Corp Pymt System Accounts Payable Check 64,911.05 255651 12/23/2025 Vestis Accounts Payable Check 911.51
255652 12/23/2025 Verizon Wireless Accounts Payable Check 524.88 255653 12/23/2025 Windecker Inc Accounts Payable Check 24.42 255661 01/06/2026 Aflac-Customer Service Accounts Payable Check 215.93 255662 01/06/2026 AFSCME District Council 57 Accounts Payable Check 2,217.53 255663 01/06/2026 Empower Annuity Ins. Co of America Accounts Payable Check 1,665.04 255664 01/06/2026 Empower Annuity Ins. Co of America Accounts Payable Check 2,942.00 255665 01/06/2026 Franchise Tax Board Accounts Payable Check 12.81 255666 01/06/2026 Los Banos Police Assn Accounts Payable Check 945.00 255667 01/06/2026 Los Banos Police Assn. Accounts Payable Check 315.00 255668 01/06/2026 MissionSquare Accounts Payable Check 2,195.89 255669 01/06/2026 MissionSquare Accounts Payable Check 11,100.00 255670 01/06/2026 Nationwide Retirement Solutions Accounts Payable Check 5,463.16 255671 01/06/2026 Professional Fire Fighter of Los Banos Local 4703 Accounts Payable Check 735.16 255672 01/06/2026 State Disbursement Unit Accounts Payable Check 1,471.00 255673 01/06/2026 Beam Insurance Administrators LLC Accounts Payable Check 27,629.64 255674 01/06/2026 Blue shield of California life & Health Insurance Co. Accounts Payable Check 1,033.97 255675 01/06/2026 Merced County Recorders Accounts Payable Check 42.00 255676 01/06/2026 Reliance Standard life Insurance Company Accounts Payable Check 6,422.21 255678 01/08/2026 Samuel Morales Accounts Payable Check 2,730.00 255679 01/09/2026 Apex Annex Health Center, Inc. Accounts Payable Check 200.00 255680 01/09/2026 Sara Blevins Accounts Payable Check 110.00 255681 01/09/2026 John Butler Accounts Payable Check 227.50 255682 01/09/2026 CSJVRMA Accounts Payable Check 656,336.00 255683 01/09/2026 Brigit Figueroa-Ramirez Accounts Payable Check 1,892.00 255684 01/09/2026 Carlos Granillo Accounts Payable Check 178.83 255685 01/09/2026 Gregory Hicks Accounts Payable Check 40.00 255686 01/09/2026 Imagine Way More LLC Accounts Payable Check 7,500.00 255687 01/09/2026 Phil Jacob Accounts Payable Check 250.00 255688 01/09/2026 Laboratory Corporation of America Holdings Accounts Payable Check 397.95 255689 01/09/2026 Gabriela Acosta Mendoza Accounts Payable Check 600.00 255690 01/09/2026 Gerald "Obie" O'Brien Accounts Payable Check 77.14 255691 01/09/2026 Rey Reyna Jr Accounts Payable Check 189.00 255692 01/09/2026 Trans County Title Co. Accounts Payable Check 400.00 255693 01/09/2026 Amsoil Inc. Accounts Payable Check 8,455.68 255694 01/09/2026 Animal Damage Management, Inc. Accounts Payable Check 4,641.00 255697 01/09/2026 AT&T Accounts Payable Check 2,251.84
255698 01/09/2026 Dorothy June Baker Accounts Payable Check 606.28 255699 01/09/2026 BJ's Consumers Choice Pest Control Inc. Accounts Payable Check 85.00 255700 01/09/2026 Boot Barn Accounts Payable Check 171.27 255701 01/09/2026 Bound Tree medical LLC Accounts Payable Check 694.27 17 255702 01/09/2026 Bruce's Tire Inc Accounts Payable Check 1,170.70 255703 01/09/2026 Carollo Inc. Accounts Payable Check 29,747.75 255704 01/09/2026 Cen-Cal Air Accounts Payable Check 325.00 255705 01/09/2026 Cintas Corporation No.2 Accounts Payable Check 657.68 255706 01/09/2026 Central Valley Concrete Inc. Accounts Payable Check 961.11 255707 01/09/2026 Coffee Break Service Inc. Accounts Payable Check 1,802.08 255708 01/09/2026 Comcast Accounts Payable Check 914.31 255709 01/09/2026 Copy Shipping Solutions Accounts Payable Check 1,134.75 255710 01/09/2026 LN Curtis & Sons Accounts Payable Check 2,021.46 255711 01/09/2026 Christopher Velador Castro Accounts Payable Check 600.00 255712 01/09/2026 De Lage Landen Public Finance LLC Accounts Payable Check 2,788.59 255713 01/09/2026 Display Sales Co Accounts Payable Check 3,848.00 255714 01/09/2026 Dos Palos Publishing Company Accounts Payable Check 660.00 255715 01/09/2026 Double D Towing, LLC Accounts Payable Check 1,132.38 255716 01/09/2026 E.M.S. Electrical Solutions, Inc. Accounts Payable Check 600.00 255717 01/09/2026 Energy Light, Inc. Accounts Payable Check 1,474.92 255718 01/09/2026 Federal Express Corporation Accounts Payable Check 22.61 255719 01/09/2026 Ferro Automotive Group Inc Accounts Payable Check 106,060.20 255720 01/09/2026 Luis F. Freitas Accounts Payable Check 1,455.00 255721 01/09/2026 Fresno City College Accounts Payable Check 150.00 255722 01/09/2026 Frontline General Engineering Construction Inc Accounts Payable Check 100,410.59 255723 01/09/2026 Fun Express LLC Accounts Payable Check 983.74 255724 01/09/2026 Future Pro Inc Accounts Payable Check 1,690.00 255725 01/09/2026 Hach Company Accounts Payable Check 2,277.36 255726 01/09/2026 Home Depot Accounts Payable Check 7,423.97 255731 01/09/2026 Jerry Kelly Inc. Accounts Payable Check 192.87 255732 01/09/2026 TimJ Law Accounts Payable Check 2,400.00 255733 01/09/2026 M3 Service, LLC Accounts Payable Check 675.92 255734 01/09/2026 Magnetar.us Inc Accounts Payable Check 859.45 255735 01/09/2026 Tires to you Inc Accounts Payable Check 1,957.39 255736 01/09/2026 Marfab Inc Accounts Payable Check 127.24 255737 01/09/2026 Matson Alarm Co Inc Accounts Payable Check 215.00 255738 01/09/2026 Merced County Community Action Board Accounts Payable Check 605.00 255739 01/09/2026 Merced Truck & Trailer Inc Accounts Payable Check 1,850.19 255740 01/09/2026 Madera Uniform & Accessories Accounts Payable Check 6,398.31 255741 01/09/2026 Mid-Valley Disposal LLC Accounts Payable Check 316,321.32 255742 01/09/2026 Modesto Janitorial Supply Center, Inc. Accounts Payable Check 890.06 255743 01/09/2026 Monterey Auto Services Inc. Accounts Payable Check 1,231.85 255744 01/09/2026 Napa Auto Parts of Los Banos Accounts Payable Check 233.71 255745 01/09/2026 O'Dell Engineering Accounts Payable Check 5,670.00 255746 01/09/2026 OSE Accounts Payable Check 314.27
255747 01/09/2026 O'Reilly Auto Parts Accounts Payable Check 2,017.42 255748 01/09/2026 PG&E Company Accounts Payable Check 8,117.55 255749 01/09/2026 Plan It Geo LLC Accounts Payable Check 4,600.00 255750 01/09/2026 Plexus Global Accounts Payable Check 22.50 255751 01/09/2026 Price Paige and Company CPA's LLP Accounts Payable Check 200.00 255752 01/09/2026 Provost and Pritchard Engineering, Inc. Accounts Payable Check 18,078.40 255753 01/09/2026 Purchase Power Inc Accounts Payable Check 3,113.53 255754 01/09/2026 Protech Security & Electronics, Inc. Accounts Payable Check 765.00 255755 01/09/2026 Redstone Construction, Inc Accounts Payable Check 64,722.96 255756 01/09/2026 Riggs Ambulance Service Accounts Payable Check 91.00 255757 01/09/2026 RMGY Inc. Accounts Payable Check 265.21 255758 01/09/2026 Maria Ayala Ruiz Accounts Payable Check 600.00 255759 01/09/2026 SJVAPCD Accounts Payable Check 1,823.00 255760 01/09/2026 SESAC, Inc. Accounts Payable Check 1,278.00 255761 01/09/2026 Safe T Lite of Modesto, Inc. Accounts Payable Check 453.49 255762 01/09/2026 Save Mart Supermarkets Accounts Payable Check 337.57 255763 01/09/2026 Shape Inc. Accounts Payable Check 1,480.00 255764 01/09/2026 Sherwin Williams Co Accounts Payable Check 348.65 255765 01/09/2026 Robert & Susan Hansen Accounts Payable Check 413.25 255766 01/09/2026 Smith & Loveless Inc Accounts Payable Check 1,198.65 255767 01/09/2026 Sorensens True Value Accounts Payable Check 1,507.50 255770 01/09/2026 Superior Pool Products, LLC Accounts Payable Check 5,317.37 255771 01/09/2026 SWRCB Accounting Office Accounts Payable Check 50,745.56 255772 01/09/2026 Laura Sanchez Accounts Payable Check 350.00 18 255773 01/09/2026 Moon Schwenke
255774 01/09/2026 T-Mobile USA Inc.
255775 01/09/2026 Technicon Engineering Services, Inc.
255776 01/09/2026 Terminix Processing Center
255777 01/09/2026 The Heil CO
255778 01/09/2026 Cal Mat Co.
255779 01/09/2026 United Site Services, Inc.
255780 01/09/2026 Vanir Construction Management, Inc.
255781 01/09/2026 Vestis Group, Inc.
255782 01/09/2026 Vestis
255783 01/09/2026 Vestis
255784 01/09/2026 Verizon Wireless
255785 01/09/2026 West Coast Arborists, Inc.
255786 01/09/2026 Westwood Professional Services, Inc.
255787 01/09/2026 Windecker Inc
255788 01/09/2026 Young's Air Conditioning
255789 01/09/2026 ZWUSAlnc.

Break in check sequence due to the following:

Check #255429 (Manual Void)
Check #255476 -#255488 {Utility Billing)
Check #255491 (Payroll)
Check #255559 (Manual Void)
Check #255571-#255597 (Utility Billing)
Check #255646 (Manual Void)
Check #255650 (Manual Void)
Check #255654 - #255658 {Utility Billing)
Check #255659 - #255660 {Payroll)
Check #255677 (Manual Void)
Check #255695 - #255696 (Manual Void)
Check #255727 - #255730 (Manual Void)
Check #255768 - #255769 (Manual Void)
Check #255790 - #255810 (Utility Billing)
Accounts Payable Check 600.00
Accounts Payable Check 522.78
Accounts Payable Check 790.00
Accounts Payable Check 13S.OO
Accounts Payable Check 297.50
Accounts Payable Check 599.73
Accounts Payable Check 133.25
Accounts Payable Check 10,200.00
Accounts Payable Check 291.31
Accounts Payable Check 521.18
Accounts Payable Check 57.60
Accounts Payable Check 880.03
Accounts Payable Check 9,701.00
Accounts Payable Check 113,018.50
Accounts Payable Check 35,252.59
Accounts Payable Check 419.00
Accounts Payable Check 1,931.11
Payment Type
Regular Checks 400 3,602,235.72
Manual Voids 13
Voided Checks
3,602,235.72
19 THIS PAGE IS INTENTIONALLY LEFT BLANK
20 CITY OF LOS BANOS

CITY COUNCIL MEETING MINUTES
DECEMBER 17, 2025
ACTION MINUTES – These minutes are prepared to depict
action taken for agenda items presented to the City
Council. For a detailed account of this meeting, refer to the video recording available on YouTube, which serves
as a permanent record.

CALL TO ORDER: Mayor Amabile called the City Council Meeting to order at the hour of 6:03 p.m.

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

ROLL CALL – MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Mitzy Perez – District 1, Evan Sanders – District 2, Marcus Chavez – District 3, Deborah Lewis – District 4, Mayor Michael Amabile
STAFF MEMBERS PRESENT: City Manager Than, City Attorney Lerner, City Clerk/Human Resources Director Mallonee, Community & Economic Development Director Souza Elms, Police Chief Reyna, Public Works Director Via, Fire Chief Tualla, Finance Director Moreno
CONSIDERATION OF APPROVAL OF AGENDA: Motion by Lewis, seconded by Chavez to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present.

PRESENTATION – CERTIFICATE OF RECOGNITION – EMPLOYEE OF THE YEAR 2025 – MARC HEGUY, FOREMAN, PUBLIC WORKS DEPARTMENT. Mayor Amabile presented the certificate to Marc Heguy who was in attendance to accept.

PRESENTATION – PROCLAMATIONS RECOGNIZING MEMBERS OF CITY COMMITTEE/COMMISSIONS: DENISE TARKA – AIRPORT ADVISORY
COMMISSION MEMBER, DENNIS REED – AIRPORT ADVISORY COMMISSION MEMBER, HERMAN JACKSON – MEASURE H CITIZENS’ OVERSIGHT COMMITTEE MEMBER, DOUGLAS YOUNG – MEASURE H CITIZENS’ OVERSIGHT COMMITTEE MEMBER, RICHARD STEWART – MEASURE P COMMITTEE MEMBER, NATHAN MANCEBO – MEASURE P COMMITTEE MEMBER, GERALD GIESEL – MEASURE P COMMITTEE MEMBER, JERI BLEVINS – PARKS & RECREATION COMMISSION MEMBER, JOHN SPEVAK – PARKS & RECREATION COMMISSION MEMBER, ABEL MOLINA – TREE COMMISSION MEMBER, LAURENCE BYERS – TREE
COMMISSION MEMBER. Mayor Amabile presented the proclamations to those that were present to accept, as follows: Denise Tarka, Dennis Reed, Herman Jackson, Richard Stewart, Gerald Giesel, Jeri Blevins, John Spevak and Laurence Byers.

ITEM 8B
21 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. Public Works Director Via introduced the City’s new City Engineer, James Cozad, who addressed the Mayor and City Council, expressed appreciation for the warm welcome, and stated his enthusiasm for working with City staff and Council. It was noted that this was James Cozad’s second day with the City. Public Works Director Via also announced the promotion of Jelene De Melo to the position of Engineering Operations Manager in the Public Works Department. It was noted that Ms. De Melo has approximately 22 years of service with the City.

Mayor Amabile opened the public forum. INIAS BROWN addressed the City Council regarding NESARA/GESARA, describing it as a national financial and governmental reform initiative. He spoke about debt tracking by banks, a farmer-wide lawsuit dating back to the early 1900s, and stated that the implementation would affect taxation, debt forgiveness, and government financial practices. He indicated the changes would primarily affect new homes, not older homes, and stated that real estate would remain relatively healthy. He further discussed a return to constitutional law, an end to bankruptcy in the United States, retraining of judges and attorneys, and stated that the initiative would have positive economic impacts, including the reduction of poverty. He referenced Dr. Kia Pruitt and emphasized the importance of managing affairs going forward. BLANCHE JORGE, a resident of the downtown area, thanked the Mayor, City Council, City staff, Police Chief, and Animal Control for approving funding for spay and neuter services. She described the positive experience with the SNIP bus, noting that residents waited patiently, expressed gratitude, and that the program benefited both dogs and cats in the community. She also described her past efforts transporting animals to Hollister and stated that the current program significantly reduced that burden. She expressed appreciation for the program and noted that it has been helpful to families and pets in the community.

No one else came forward to speak and the public forum was closed.

City Clerk Mallonee read a letter into the record from Julie Creighton regarding the City Council’s prior decision to dismiss option three, the purchase and rehabilitation of a local motel, specifically the La Plaza Inn, for use as a long-term shelter for unhoused individuals. JULIE CREIGHTON stated that after speaking directly with La Plaza Inn management, information presented at the previous City Council meeting was not fully accurate. According to the letter, motel management indicated they are willing to participate in such an effort and had not been contacted by the City for over a year. The letter further stated that current occupancy is extremely low, generating minimal transient occupancy tax revenue, and that long-term stays are infrequent and inconsistent. Concerns regarding displacement of residents and loss of tax revenue were described as unsupported by current occupancy conditions. The letter requested 22 that the City Council reconsider option three and conduct a fact-based re-evaluation, noting ongoing homelessness issues and encampment conditions within the City.

CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Chavez, seconded by Sanders to approve the consent agenda items as follows: Check Register for #255135 – #255328 in the Amount of $2,088,333.15; City Council Meeting Minutes for November 19, 2025; City Council Meeting Minutes for December 3, 2025; City Council Resolution No. 7033 – Accepting Public Improvement for Dove Hollow, The Villages V Phase 3, Unit 3. The motion carried by the affirmative action of all Council Members present.

PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF ACCEPTING THE DEVELOPMENT IMPACT FEE REPORT (AB 1600 REPORT) FOR FISCAL YEARS 2021 THROUGH 2025. Finance Director Moreno presented the staff report, which included a PowerPoint presentation.

Mayor Amabile opened the public hearing. No one came forward to speak and the public hearing was closed.

Motion by Lewis, seconded by Sanders to accept the AB 1600 Report as submitted. The motion carried by the affirmative action of all Council Members present.

APPOINTMENT OF MEMBER TO THE FOLLOWING COMMISSION. Mayor Amabile, spoke regarding the process the City Council follows when selecting commissioners, noting that for district-based seats the Mayor and the respective council member jointly participate in interviews conducted by staff using standardized questions to ensure fairness and consistency among all applicants. He stated that three qualified applications were received for the District One vacancy and that the selection process can be difficult due to the quality of the candidates, and he encouraged residents to con tinue applying for future commission and committee openings. Council Member Perez then announced her selection of SHUYUE MARTINEZ for the Planning Commission vacancy. Ms.

Martinez came forward, introduced herself to the Council, and stated that she is a local realtor and community school’s liaison who has lived in Los Banos for approximately 25 years and looks forward to serving the community.

Motion by Perez seconded by Lewis to appoint Shuyue Martinez to the Planning Commission – District 1 for an unexpired term expiring December 31, 2028. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7034 – ADOPTING THE 2025 CITY OF LOS BANOS’ EMERGENCY OPERATIONS PLAN REVISION AND THE 2025 EMERGENCY OPERATIONS ANNEXES. Fire Chief Tualla presented the staff report, which included a PowerPoint presentation.

Fire Chief Tualla presented the item and explained that the plan is updated approximately every five years and establishes coordinated emergency response procedures, continuity of government operations, hazard identification, communications, evacuation and 23 sheltering, and recovery and mitigation strategies, while maintaining compliance with state and federal requirements and eligibility for disaster reimbursement funding. He noted the update began in 2023 and was developed in coordination with the County of Merced, a consultant funded through Homeland Security grants, City departments, and regional partners, and included on-site assessments to tailor the plan to local conditions.

City Manager Than stated that the plan is very comprehensive and noted that many staff remember the 2023 storm events and rising creek levels, emphasizing the importance of preparing for disasters. He added that the plan is a starting point that will guide implementation, search and rescue operations, and recovery from financial losses, and that it will be integrated into the design of the City’s future Emergency Operations Center (EOC). He further noted that the plan will serve as a living document and will be updated as the City moves forward.

Mayor Amabile commented that it is a good plan and commended staff for their work.

Motion by Chavez, seconded by Perez to adopt City Council Resolution No. 7034 – Adopting the 2025 City of Los Banos’ Emergency Operations Plan Revision and the 2025 Emergency Operations Annexes. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7035 –

AUTHORIZING CITY CONTRIBUTIONS TO MAYOR AND CITY COUNCIL MEMBERS,

CITY CLERK AND CITY TREASURER HEALTH AND WELFARE BENEFITS AND REIMBURSEMENTS. Human Resources Director Mallonee presented the staff report.

Mayor Amabile invited the public to come forward to speak. No one came forward to speak.

Motion by Lewis, seconded by Sanders to adopt City Council Resolution No. 7035 – Authorizing City Contributions to Mayor and City Council Members, City Clerk and City Treasurer Health and Welfare Benefits and Reimbursements. The motion carried by the affirmative action of all Council Members present.

CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7036 –

REJECTING ALL BIDS RECEIVED FOR THE CANAL TRAIL SOLAR LIGHTING PROJECT. Public Works Director Via presented the staff report.

Mayor Amabile asked whether additional grant funding could be pursued. Public Works Director Via responded that additional grants may be possible, but staff first needs to determine realistic project costs, and that the rebid would likely include fewer lights spaced farther apart, with optional bid items to add additional lighting if funding allows.

Mayor Amabile stated that he would prefer to complete the project correctly rather than proceed with substandard materials or inadequate coverage.

City Manager Than explained that staff intends to phase the project by prioritizing highuse areas such as school crossings, bridges, and park locations, while allowing future expansion as funding becomes available.
24 Council Member Chavezasked about the expected lifespan of the solar lighting batteries, and Public Works Director Via confirmed that the batteries proposed by the lowest bidder were insufficient and did not meet the City’s long-term performance standards.

Motion by Lewis, seconded by Chavez to adopt City Council Resolution No. 7036 – Rejecting All Bids Received for the Canal Trail Solar Lighting Project. The motion carried by the affirmative action of all Council Members present.

CITY DEPARTMENT REPORTS.

Community & Economic Development. Director Souza Elms reported on recent actions by the Planning Commission. She stated that on December 10 the Commission approved the demolition and redevelopment project at 1015 East Pacheco Boulevard, located next to the Chevron station near 10th Street, as well as the Villages 6 Subdivision for 30 residential units southwest of Walmart. She further reported that at an adjourned meeting the following day, the San Luis Estates Subdivision was approved for 96 residential u nits.

She noted that the Villages 6 project will be brought before the City Council for consideration of a final development plan and development agreement. She also informed the Council that the regularly scheduled Planning Commission meeting on December 24 will be canceled, and the next meeting will be held on January 14, with the newly appointed Planning Commissioner in attendance.

Finance. Director Moreno reminded utility customers with high account balances to contact Customer Service to arrange payment plans or other billing accommodations, noting that water service shutoffs are scheduled to begin at the end of January. She also thanked the community for its strong support of the “Shop Smart, Support Local” campaign, citing positive participation and visibility through promotional materials and emphasizing the benefit to downtown businesses. She further reported that mid-year budget review meetings with City departments will begin in mid-January, and that the midyear budget update will be presented to the City Council in February.

Fire. Fire Chief Tualla reported that the Fire Department recently held its largest swearingin ceremony to date, during which two new Battalion Chiefs were sworn in, and he thanked the City Council for funding the positions in the current budget. He noted that the event was well attended and appreciated the community’s support. He also announced that the annual Santa in the Fire Engine event is underway, with appearances scheduled throughout the week. Additionally, he reported that the Merced County Board of Supervisors approved the transition to American Medical Response (AMR) ambulance services, effective at noon on New Year’s Eve to avoid a midnight transition on January

1. He stated that AMR has been coordinating closely with local fire, law enforcement, and dispatch agencies to ensure a smooth transition and that the Fire Department will support the process.

Human Resources. Director Mallonee reported that since the last City Council meeting, the City has welcomed five new employees across several departments and promoted two employees, with at least three additional hires anticipated by year end and approximately ten more expected to begin on January 1. She highlighted several major 25 milestones achieved over the past year, including the hiring of the City’s first full-time City Attorney and first full-time City Engineer, as well as the onboarding of a new City Manager. She stated that during the year the City posted 52 recruitments and onboarded 47 new employees across departments including Public Works, Police, Fire, Finance, Parks and Recreation, Community and Economic Development, and Administration. She also reported that the City is currently recruiting for additional positions, in cluding Community Services Officer, lateral Police Officer, and Administrative Coordinators, and encouraged interested applicants to visit the City’s website or contact Human Resources.

She recognized the Human Resources team for their contributions and noted that over the past year the department processed 4,990 payroll checks and prepared multiple City Council agenda packets, including 170 resolutions and eight ordinances. She concluded by thanking the Mayor, City Council, City Manager, and department heads for their continued support and leadership.

Mayor Amabile announced that this meeting marked Ms. Mallonee’s final City Council meeting as Human Resources Director, as she will be retiring from that position at the end of the year while continuing to serve as City Clerk. Mayor Amabile recognized Ms.

Mallonee’s 31 years of service to the City, noting her long-standing contributions to City operations, leadership, and organizational stability since the early 1990s. He expressed appreciation for her dedication to City government and the residents of Los Banos, credited her with playing a key role in the City’s progress, and thanked her for her continued service in her role as City Clerk. He concluded by expressing gratitude on behalf of the City Council and the community for her outstanding service.

Parks & Recreation. Public Works Director Via spoke on behalf of Parks & Recreation Director Heim, who was on vacation. He reported that the annual Breakfast with Santa event held the previous Saturday was very successful and has continued to grow each year since its inception. He also noted Mr. Heim’s involvement in organizing the recent Christmas Parade, including coordination of the tree setup at the conclusion of the event.

He further announced that Shaughnessy Park is now open to the public, with a formal grand opening planned for the spring when weather conditions improve.

Police. Chief Reyna thanked the Los Banos community for its support of the Police Department’s 12th Annual Canned Food Drive, which collected more than 10,000 pounds of food that was distributed to the Salvation Army and Bethel Community Church to assist local residents. He also highlighted several December community events hosted by the department, including the Hot Cocoa event, the annual Cops for Kids toy giveaway which distributed approximately 400–500 bags of toys, and the Shop with a Cop program, during which 53 local children identified by the school district were taken shopping for essential items and gifts. He recognized Officer Will Marchese, who was named VFW Officer of the Year, and thanked the City Council for funding the SNIP bus program to help reduce the number of unwanted animals in the community. He announced that lateral Police Officer Zach Zuspan would be sworn in the following morning at 9:30 a.m. at the Police Department. He concluded by thanking the City Council for its continued support, commending department staff for their dedication throughout a busy year, and wishing the Council and community a safe and Merry Christmas.
26 Public Works. Public Works Director Via reported that the contractor for the basin project on the east side of town mobilized earlier in the week and has begun site preparation, including clearing and grubbing, noting that progress may be delayed due to upcoming rain. He also provided an update on seasonal leaf collection, stating that crews will continue leaf pickup throughout the holidays, except on Christmas and New Year’s Day, and thanked staff for their efforts to keep up with increased leaf fall due to cooler temperatures and rain. He concluded by congratulating Ms. Mallonee on her retirement as Human Resources Director and thanked her for her assistance in filling multiple City positions in recent months.

CITY MANAGER REPORT. City Manager Than stated that he had completed approximately seven weeks with the City and expressed appreciation to City staff for their continued dedication, professionalism, and commitment to serving the community. He thanked staff for providing technical expertise to the City Council and commissions, remaining open and responsive to the public, and working on long-term initiatives such as water quality issues, infrastructure improvements, and intersection projects. He also commended staff for strengthening partnerships with neighboring jurisdictions and regional agencies to support the City’s growth and overall quality of life. He noted that many projects discussed briefly at Council meetings often require months or years of preparation, citing the Emergency Operations Plan update as an example. He further stated that beginning in January 2026, the City will undertake several master plan updates and encouraged continued community participation in that process. He concluded by thanking Ms. Mallonee for her guidance and years of service and expressed appreciation for her continued role with the City.

CITY COUNCIL MEMBER REPORTS:

DEBORAH LEWIS – DISTRICT 4: Stated that it had been a fruitful month and highlighted several community events and recognitions. She reported attending the grand opening of Ono Hawaiian BBQ and congratulated James Cozad, the City’s new City Engineer, as well as Ms. De Melo on her promotion. She also congratulated Fire Chief Tualla and Fire Department staff on recent promotions. She noted that the annual Movie Night at Fire Station No. 1 was held on December 3, featuring Home Alone, and thanked the Fire Chief for hosting the event. She also shared that this was her 13th year participating in the Breakfast with Santa event, describing it as a fun and successful community activity, and commented that the “Cocoa with the Popo” event was well attended despite cold weather.

She expressed appreciation to Ms. Mallonee for her service and support to the City and concluded by wishing City staff and the community a very Merry Christmas.

MITZY PEREZ – DISTRICT 1: Thanked City staff for all of their hard work and stated that the month’s community events were “absolutely amazing.” She noted that she participated in the Breakfast with Santa event for the first time and described it as a very fun experience. She also thanked everyone involved, with special recognition to Ms.

Mallonee for her support, and congratulated her on her retirement. She concluded by wishing all City staff and residents a very Merry Christmas and happy holidays. 27 EVAN SANDERS – DISTRICT 2: Congratulated Mr. Heguy on being named Employee of the Year and recognized all newly hired City employees. He stated that it has been “really cool” to be part of the City Council this past year and thanked City staff for their continued support and professionalism, noting that he greatly appreciates their work and preparation. He shared that whenever he needed assistance or guidance, he often turned to Ms. Mallonee, and he thanked her for her help and service. He commented that the City has made meaningful progress over the past year, including improvements in addressing the local homeless situation. He also mentioned attending the Cocoa with the Popo event and concluded by wishing everyone a happy Christmas.

MARCUS CHAVEZ – DISTRICT 3: Stated that many of his comments had already been shared by other members. He thanked the Police Department for hosting the Cocoa with the Popo event and Fire Chief Tualla and staff for their work on the Christmas Parade, noting the strong community turnout. He congratulated Mr. Heguy on being named Employee of the Year and recognized recent City hires and promotions. Council Member Chavez expressed appreciation to Ms. Mallonee for her service and said he was glad she would continue with the City. He thanked City staff for their ongoing support, noted that the past year had been an interesting one, and expressed appreciation to City Manager Than, stating that the transition had gone smoothly and did not feel like the City had missed a beat. He also welcomed City Attorney Lerner to the organization and emphasized the Council’s commitment to continuing efforts to improve the City. He concluded by wishing everyone a Merry Christmas and Happy New Year.

MICHAEL S. AMABILE – MAYOR: Stated that a City Attorney report should be added to the agenda now that the City has a full-time City Attorney department rather than an outside contractor. He addressed the letter submitted by JULIE CREIGHTON regarding the homeless encampment and explained the Council’s reasoning for selecting stateapproved pallet homes rather than purchasing and rehabilitating an existing motel for bridge housing. He reiterated that the City’s long-term goal is to eliminate the need for bridge housing through development of One Tree Village, which is intended to be the permanent solution for unhoused residents, but that the City must still meet current state requirements. Mayor Amabile explained that purchasing an older motel would involve lengthy negotiations, appraisals, compliance with state regulations, potential code upgrades, engineering requirements, and a public bidding process, which could take two to three years and significantly increase costs. He noted that pallet homes are already approved by the State of California, including engineering and design standards, allowing the City to move forward more quickly with fewer unforeseen expenses and greater flexibility if bridge housing is no longer needed in the future. He emphasized that this decision does not end future discussions on homelessness solutions and stated that the Council will continue evaluating long-term strategies, including potential programs that encourage able-bodied unemployed individuals using City services to participate in work or job training opportunities. Mayor Amabile noted this was the last City Council meeting of the calendar year and thanked the City’s department heads and employees for their professionalism, adaptability, and dedication during a year of significant organizational change. He acknowledged that approximately 30 new employees, including several department heads, were hired to improve City operations and service delivery, and stated that while change is often difficult, it is necessary to strengthen the organization. He thanked the City Council for supporting difficult decisions and remaining focused on 28 rebuilding the City’s workforce and operations. He also discussed the City’s approach to managed and controlled growth, emphasizing the importance of expanding housing options, supporting first-time homebuyers, attracting businesses and good-paying jobs, protecting infrastructure, maintaining quality of life, and complying with state growth requirements. Mayor Amabile concluded by thanking the residents of Los Banos for their patience, involvement, and support, expressed pride in serving the community, wished everyone a Merry Christmas.

ADJOURNMENT. The meeting was adjourned at 7:56 p.m.

APPROVED:
____________________________
Michael S. Amabile, Mayor
ATTEST:
_______________________________
Lucille L. Mallonee, City Clerk
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30 Agenda Staff Report
TO: Mayor & City Council Members
FROM: Soknirorn Than, City Manager
DATE: January 21, 2026
TYPE OF REPORT: Consent Agenda
SUBJECT: Delegate Substitution for the 2026 MCAG One Voice Program ______________________________________________________________________ Recommendation:

Staff recommends that the City Council appoint Mayor Pro Tem, Deborah Lewis, to substitute for Mayor Amabile as a delegate to represent the City at the 2026 MCAG One Voice Program and authorize Mayor Pro Tem to execute the Delegate Agreement.

Background:

The Merced County Association of Governments (MCAG) One Voice Program is scheduled for May 12–14, 2026, in Washington, D.C. This program is a county-wide advocacy effort to secure federal funding and legislative support for regional priorities.

The City has participated annually alongside other jurisdictions in Merced County.

On November 19, 2025, City Council provided directions to staff on the priority platform for 2026 and appointed Mayor Amabile and the City Manager as the delegate and Councilmember Perez as an alternate delegate for the City.

Discussion:

The Mayor will be unable to attend the program this year. Staff recommends appointing Mayor Pro Tem, Deborah Lewis, to join the City Manager in representing the City. The substitution ensures the City maintains full participation in meetings with legislators and ITEM 8C
31 federal agencies. Mayor Pro Tern participated in the program last year and is well verse in the process.

Due to personal circumstances, Council Member Perez will no longer be able to participate in this program this year. She will continue to provide support to staff as needed on the policy platform.

The City's priorities for the 2026 program remain unchanged:
• Water Infrastructure Funding (SRF Funding forwatertreatment-Cr-6 and water distribution system)
• Public Safety Capital Improvements (Fire Station and Emergency Operations Center)
Costs for two attendees are already budgeted in the FY 2025-26 operating budget.

Fiscal Impact:

There are sufficient funds budgeted in FY2025-2026 to support the expenditure fortwo delegates.

Reviewed by:

Soknirom Than, City Manager
Attachments:

A) Delegate Agreement
Minerva ~reno, Finance Director
32 Delegate Agreement
One Voice 2026
May 12 – 14, 2026
The purpose of the Merced County Association of Governments One Voice program is to develop a shared platform of projects and issues of regional significance that serves as the foundation for a federal advocacy effort.

The goals of the program are to:

1. Clearly communicate the region’s legislative priorities

2. Communicate the need for additional federal funding for regional projects

3. Advocate for legislation or policy changes that will benefit the region In order to accomplish these goals, a delegation of community leaders from throughout the region come together as a unified voice to communicate key messages to legislators, federal agencies and staff in Washington, DC. The platform and unified message are developed through a coordinated and collaborative process that involves MCAG along with staff and elected officials from its member jurisdictions.

To participate in this federal advocacy effort, delegates are required to:
• Commit to the goals of the program,
• Regularly attend planning and debrief meetings,
• Participate in all scheduled appointments during the trip, including group dinner meetings (no-shows will be invoiced for the cost of their meal), • Only communicate shared messages to policymakers which were developed through the collaborative planning process,
• Respect the roles of the designated speakers and refrain from presenting information other than the agreed upon platform, projects and messages during the trip,
• Avoid using your cell phone at meetings (if you must take a call please step out), • Refrain from using the “One Voice” name to promote issues that are not part of the shared platform,
• Dress in business attire for meetings;
• Attend in-person preparation and advocacy meetings in Washington D.C.

To confirm your participation as a 2026 One Voice trip delegate, please sign and return this agreement by December 1, 2025. By signing this document, you agree to comply with the intent and procedures of the One Voice trip and will participate according to the statement above.
_______________________________________________ __________________________ Delegate Signature Date
_______________________________________________
Print Name
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34 Formatting instructions: 1” margins and use Arial 12 pt for the font Do not include a footer or page number
Agenda Staff Report
TO: Mayor Amabile and City Council Members
FROM: Minerva Moreno, Finance Director
DATE: January 21, 2026
SUBJECT: Accepting the Transportation Development Act Funds Financial Statement for the Years Ended June 30, 2022 and 2021
TYPE OF REPORT: Consent Agenda
______________________________________________________________________ Recommendation:

Staff recommends that Council adopt a Resolution accepting the Transportation Development Act Funds Financial Statement for the Years Ended June 30, 2021 and 2020 as prepared by Price Paige & Company, Merced County Associations of Governments’ (MCAG) auditors.

Background:

The Transportation Development Act (TDA) is a California state law enacted in 1971. TDA funds are generated from a one-quarter of one percent sales tax on all retail transactions within each county. These funds are designated to support public transit, specialized transit services for individuals with disabilities, and bicycle and pedestrian infrastructure.

TDA revenues are collected by the State and allocated by the Merced County Association of Governments (MCAG) to support local transit operations and related programs. In nonurban areas, and under specific conditions, TDA funds may also be used for streets and roads.

As the designated Regional Transportation Planning Agency (RTPA), the MCAG Governing Board oversees the distribution of these funds. Each year, the Board approves the apportionment schedule for Local Transportation Fund (LTF) monies through a formal resolution.

The City of Los Banos is an annual recipient of TDA funding to support its transportation services and infrastructure.

ITEM 8D
3535
Formatting instructions: 1” margins and use Arial 12 pt for the font Do not include a footer or page number
Discussion:

As a recipient of Transportation Development Act (TDA) funds—including Local Transportation Fund (LTF) and State Transit Assistance (STA) allocations—the City is required by State statute to undergo an independent financial audit. MCAG, as the regional funder responsible for passing through these funds to each jurisdiction in the County, is also expected to provide oversight to ensure compliance with these audit requirements.

For the fiscal year ending June 30, 2022 and 2021, the City of Los Banos fulfilled this requirement in coordination with Price Paige & Company (Price Paige), who conducted and finalized the Financial Report. The audit concluded with no reported risks or findings.

To address a Generally Accepted Accounting Principles (GAAP) reporting requirement, an amount of $1,530 — determined to be an ineligible reduction of revenues—was reconciled to the financial statement presentation for the TDA Audit, as disclosed in Note 3 of the Financial Statements.

However, it is important to acknowledge that both MCAG and the City did not meet their respective obligations to initiate and complete the audit process in a timely manner for 2017-2024.

To address this gap, MCAG has since taken a more proactive role. Although audit compliance is traditionally the responsibility of each individual city, MCAG has contracted with Price Paige to conduct audits for all jurisdictions in the County from fiscal year 2017 through 2024 and potentially beyond. This coordinated effort is intended to ensure that all audit requirements are met moving forward and that every entity is brought current with their statutory obligations. As each financial report is finalized and received, the Finance Department will present them to Council for acceptance. This is the fifth of eight Financial Statements that has been completed and presented to the Council.

Fiscal Impact:

There is no fiscal impact to the City, as MCAG will be covering all costs associated with these audits.

Reviewed by:
______________________________
Soknirorn Than, City Manager
Attachments:

A. Resolution
B. Transportation Development Act Funds Financial Statements ending June 30, 2022 and 2021
36 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS ACCEPTING THE

TRANSPORTATION DEVELOPMENT ACT

FUNDS FINANCIAL STATEMENT FOR THE
YEARS ENDED JUNE 30, 2022 AND 2021.

WHEREAS, the City of Los Banos collaborated with the Merced County Association of Governments and its designated auditing firm, Price Paige & Company, to conduct an audit of Transportation Development Act (TDA) funds received for the Years Ended June 30, 2022 and 2021; and WHEREAS, Price Paige & Company has completed the audit and reported no findings or areas of concern; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos hereby accepts the Transportation Development Act Funds Financial Statement for the Years Ended June 30, 2022 and 2021, as presented by Price Paige & Company.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21st day of January 2026, 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
37 THIS PAGE IS INTENTIONALLY LEFT BLANK
38 December 30, 2025
To the City Council
City of Los Banos, California
And the Board of Directors
Merced County Association of Governments
Merced, California
We have audited the financial statements of Merced County Association of Governments’ pass-through Transportation Development Act Funds (TDA Funds) of the City of Los Banos, California (the City) for the year ended June 30, 2022.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter. 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 of the City (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 2022. 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. We are not aware of any significant estimates for the fiscal year ended June 30, 2022.

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

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

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
39 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.

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.

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.

These risks were addressed within our audit procedures and we have no findings to report related to these risks.

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

Very truly yours,
40 Transportation Development Act Funds
Non-Transit Operations
City of Los Banos| CA
Financial Statements
For the Years Ended June 30, 2022 and 2021
41 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS |FOR THE YEARS ENDED JUNE 30, 2022 AND 2021 Financial Statements

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1 Financial Statements:

Article 8 Streets and Roads:

Balance Sheets .............................................................................................................................................................. 5 Statements of Revenues, Expenditures and Changes in Fund Balance ......................................................................... 6 Notes to the Financial Statements ....................................................................................................................................... 8 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 and the Rules and Regulations of the Transportation Development Act .............................................................................................. 10 Findings and Questioned Costs:

Schedule of Findings and Questioned Costs ...................................................................................................................... 13 Summary Schedule of Prior Audit Findings ........................................................................................................................ 14 42 1
INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Los Banos, California
And the Board of Directors
Merced County Association of Governments
Merced, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Merced County Association of Governments’ passthrough Transportation Development Act Funds (TDA Funds) of the City of Los Banos, California (the City), as of and for the years ended June 30, 2022 and 2021, and the related notes to the financial statements, which collectively comprise the TDA Funds of the City’s 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 TDA Funds of the City, as of June 30, 2022 and 2021, and the respective changes in financial position thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audits 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 discussed in Note 1, the financial statements of the TDA Funds of the City are intended to present the financial position and the changes in financial position of only that portion of the TDA Funds of the City that is attributable to the transactions related to the Merced County Association of Governments’ pass-through TDA Funds. They do not purport to, and do not present fairly the financial position of the City as of June 30, 2022 and 2021, or the changes in its financial position for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. 43 2
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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 as it relates to TDA Funds. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Management has omitted the management’s discussion and analysis and budgetary comparison information that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information. 44 3
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2025, on our consideration of the City’s internal control over financial reporting as it relates to the TDA Funds, 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 as it relates to the TDA Funds.

Clovis, California
December 30, 2025
45 4

FINANCIAL STATEMENTS
46 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | JUNE 30, 2022 AND 2021
Article 8 Streets and Roads
Balance Sheets
The notes to the financial statements are an integral part of this statement. 5 2022 2021
ASSETS
Cash and investments $ 411,918 453,865 $
Due from other funds - 1,530
Interest Receivable 157 332
Total assets 455,727 $ 412,075 $
LIABILITIES $ - - $

FUND BALANCE
Restricted 455,727 412,075
Total fund balance 455,727 412,075
Total liabilities and fund balance 455,727 $ 412,075 $
47 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | FOR THE YEARS ENDED JUNE 30, 2022 AND 2021 Article 8 Streets and Roads
Statements of Revenues, Expenditures and Changes in Fund Balance The notes to the financial statements are an integral part of this statement. 6 2022 2021

REVENUES
Intergovernmental allocations $ 43,652 $ 41,320
Interest revenue 266 -
Total revenues 41,586 43,652

EXPENDITURES - -
Net change in fund balance 43,652 41,586
Fund balance - beginning 370,489 412,075
Fund balance - ending $ 412,075 455,727 $
48 7

NOTES TO THE FINANCIAL STATEMENTS
49 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | JUNE 30, 2022 AND 2021
Notes to the Financial Statements
8 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Merced County Association of Governments’ pass-through Transportation Development Act Funds (TDA Funds) of the City of Los Banos, California (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The financial statements presented are only from the accounts and financial transactions of the TDA Funds of the City. Accordingly, they do not present the financial position or the results of operations of the City. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below.

A. Basis of Accounting
The City uses fund accounting to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.

The operations of the TDA Funds of the City are accounted for in a separate set of self-balancing accounts that comprise the funds' assets, liabilities, fund balance, revenues and expenditures.

The TDA Funds allocated for non-transit operations purposes are accounted for in the City’s Local Transportation Fund, a special revenue fund type within the governmental category using the modified accrual basis of accounting whereby revenues are recognized when they become measurable and available, and expenditures are recognized when the liabilities are incurred.

Intergovernmental revenues (primarily grants and subventions), which are received as reimbursement for specific purposes or projects, are recognized based upon the expenditures recorded. Intergovernmental revenues, which are usually unrestricted as to use are revocable only for failure to meet prescribed compliance requirements, and are reflected as revenues at the time of receipt or earlier, if they meet the availability criterion.

B. Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Nonspendable – Amounts cannot be spent either because they are in nonspendable form (such as inventory or prepaid expense, and long-term loans and notes receivable) or because they are legally or contractually required to be maintained intact (such as principal of a permanent fund).

Restricted – Amounts with external constraints placed on the use of these resources (such as debt covenants, grantors, contributors, or laws or regulations of other governments, etc.) or imposed by law through constitutional provisions or enabling legislation.

Committed – 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. 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. 50 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | JUNE 30, 2022 AND 2021
Notes to the Financial Statements
9 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Fund Balance Classification (Continued)
Assigned – Amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. For all governmental funds other than the General Fund, any remaining positive amounts not classified as nonspendable, restricted or committed must be designated as assigned fund balance.

Unassigned – This classification includes amounts that have not been assigned to other funds or restricted, committed or assigned to a specific purpose within the City.

The City would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to deter the use of these other classified funds.

NOTE 2 – CASH AND INVESTMENTS
Cash is pooled with the City’s cash and investments. Income from the investment of pooled cash is allocated based upon the actual balance of the fund as a percentage of the total pooled cash balance. The City values all of its cash and investments at fair value on a portfolio basis. The City manages its pooled idle cash and investments under a formal investment policy that is adopted and reviewed by the City, and that follows the guidelines of the State of California Government Code.

City-wide information concerning cash and investments for the years ended June 30, 2022 and 2021, including authorized investments, custodial credit risk and interest rate risk for debt securities and concentration of investments, carrying amount and market value of deposits and investments, may be found in the notes of the City’s annual financial report.

NOTE 3 – INELIGIBLE REDUCTION OF REVENUES
During the year ended June 30, 2022, the City recorded a fair market value adjustment to its investment in the Local Agency Investment Fund (LAIF), consistent with GAAP requirements to report investments at fair value. The City allocates changes in fair value proportionately to each fund based on cash balances held. Although this accounting treatment is in accordance with GAAP, the resulting decrease in reported revenue for the Transportation Development Act (TDA) fund is considered an ineligible reduction of revenue by the transportation planning agency under the Guidelines Relating to Gas Tax Expenditures for Cities and Counties issued by the State Controller’s Office. Accordingly, the fair market value adjustment has been reclassified for TDA reporting purposes and is presented as a Due From Other Funds on the Balance Sheet, rather than as a reduction of revenue.
51 10
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 AND THE

RULES AND REGULATIONS OF THE TRANSPORTATION DEVELOPMENT ACT To the City Council
City of Los Banos, California
And the Board of Directors
Merced County Association of Governments
Merced, 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 Merced County Association of Governments’ pass-through Transportation Development Act Funds (TDA Funds) of the City of Los Banos, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s TDA Funds financial statements, and have issued our report thereon dated December 30, 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 it relates to the TDA Funds, 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 TDA Funds of the City’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. 52 11
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Funds of 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. Our audit was further made to determine that TDA Funds allocated to and received by the City were expended in conformance with applicable statutes, rules and regulations of the Transportation Development Act and the allocation instructions and resolutions of the Merced County Association of Governments as required by Sections 6666 and 6667 of Title 21 of the California Code of Regulations. 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 or the Rules and Regulations of the Transportation Development Act.

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 as it related to the TDA Funds. 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
December 30, 2025
53 12

FINDINGS AND QUESTIONED COSTS
54 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | FOR THE YEAR ENDED JUNE 30, 2022
Schedule of Findings and Questioned Costs
13 SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:

Material weaknesses identified? Yes X No
Significant deficiencies identified that
are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No SECTION II – FINANCIAL STATEMENT FINDINGS
None reported.
55 TRANSPORTATION DEVELOPMENT ACT FUNDS NON-TRANSIT OPERATIONS CITY OF LOS BANOS | FOR THE YEAR ENDED JUNE 30, 2022
Summary Schedule of Prior Audit Findings
14 FINANCIAL STATEMENT FINDINGS
None reported.
56 Agenda Staff Report
TO: Mayor & City Council Members
FROM: Rosemarie Souto, Accountant II
DATE: January 21, 2026
TYPE OF REPORT: Consent Agenda
SUBJECT: Authorizing the Release of Unclaimed Checks Pursuant to California Government Code Section 50055 to the City of Los Banos
______________________________________________________________________ Recommendation:

That the City Council Authorize the release of attached unclaimed checks to the City of Los Banos.

Background:

Section 50055 of the California Government Code allows for unclaimed checks of less than fifteen dollars ($15.00) held over one (1) year to become the property of the local agency.

Staff has reviewed all outstanding checks and has determined that the checks on the attached list meets this criteria.

Fiscal Impact:

This will increase the Funds upon which the original checks were drawn, in the amount of $ 539.49.

ITEM 8E
57 Reviewed by:
__________________________ __________________________
Soknirorn Than, City Manager Minerva Moreno, Finance Director Attachments:

Resolution - Release of Unclaimed Checks
Exhibit A - List of Unclaimed Checks
58 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS AUTHORIZING THE

RELEASE OF UNCLAIMED CHECKS PURSUANT

TO CALIFORNIA GOVERNMENT CODE
SECTION 50055 TO THE CITY OF LOS BANOS
WHEREAS, Section 50055 of the California Government Code allows any unclaimed checks of less than fifteen dollars ($15.00) held over one (1) year to become the property of the local agency; and
WHEREAS, Staff has reviewed all unclaimed checks and had determined that the checks on the attached list meets this criteria.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby transfer the unclaimed checks on the attached list in the total amount of $539.49 to the City of Los Banos Funds upon which the original checks were drawn in accordance with Section 50055 of the California Government Code.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21st day of January 2026, 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 Amabile, Mayor
ATTEST:
___________________________
Lucille L. Mallonee, City Clerk
59 Check Number Fund Amount Payee
01/08/2021 225324 501 7.86 Maria Rodriguez-Romero
01/22/2021 225480 501 1.71 Maricela Maciel Gutierrez
01/22/2021 225486 501 4.80 Cheryl Moody
03/05/2021 226019 501 8.79 Maria and Carlos Marrero
03/26/2021 226369 501 9.64 Mariah Diaz
04/16/2021 226625 100 14.00 D and D Bros. Construction
05/14/2021 227006 501 4.57 Brian Clark
05/21/2021 227130 501 7.86 Jose Juan and Gloria Pineda
05/21/2021 227178 501 1.71 Rosalina Perez
06/10/2021 227435 501 14.01 Kevin Harden
09/03/2021 228850 501 15.00 Dawn Wright
09/10/2021 228922 501 1.64 Akram Ibrahim
10/08/2021 229374 501 1.35 April Ortega
10/15/2021 229415 100 15.00 Ramon McDonald
10/22/2021 229535 501 9.47 Kimberly Bowden
11/05/2021 229762 501 11.25 Omar Alburati
11/05/2021 229767 501 1.74 Antonio Alvarado Crespin
12/23/2021 230469 501 8.04 Ricardo Hernandez
12/23/2021 230484 501 4.91 Maria Pineda
01/28/2022 230869 501 11.67 Beatriz Carreon
03/11/2022 231513 501 4.91 Teresa Garrido-Salgado
03/11/2022 231521 501 9.82 Sybil Panchal
03/14/2022 231621 510 4.01 Maurice Etcheverry
04/15/2022 232317 501 9.82 Adan Maturino
05/06/2022 232620 501 9.82 Jessica Jaramillo
05/06/2022 232623 501 9.82 Marisa Alvarez
05/20/2022 232803 100 12.76 Michael Trujillo
05/20/2022 232840 100 3.58 TDJ & Associates Photography 05/27/2022 232965 501 8.08 Yvonne Gloria Hernandez
06/03/2022 233019 501 11.20 Court of Fountains, LLC
06/10/2022 233399 501 14.02 Michael Ibarra
08/23/2022 234805 501 11.25 Alyssa Silva
09/09/2022 235058 501 10.29 Angie Quintero Bojorquez
09/16/2022 235150 501 1.87 Benjamin Alvarez
10/21/2022 235723 501 10.94 Francisco Corro
11/10/2022 236005 501 5.14 Karl Andres
12/02/2022 236500 501 8.42 Vera Mireles
12/09/2022 236616 501 13.55 Ranulfo Alday
01/13/2023 237062 501 7.01 Melodie Manzano
08/04/2023 240411 501 11.98 Carlos Dominguez
10/27/2023 241741 501 7.86 Ambrosio Aranda
11/07/2023 242074 100 0.39 Granillo Jr, Carlos
12/28/2023 242748 501 11.54 Yvette and Odilon Macias Gopar 12/28/2023 242784 501 5.00 Yolanda Pimentel
01/31/2024 243274 501 11.13 Maria Guerrero
01/31/2024 243277 501 12.85 Bernardina Galaviz
03/01/2024 243988 101 12.00 Mayla Aguilar
03/01/2024 244002 101 12.00 Ramon McDonald
04/26/2024 245059 501 6.41 Jose Antonio Becerra
05/03/2024 245183 501 7.30 Ruben Castro
05/10/2024 245374 501 14.82 Dolores Rodriguez
07/26/2024 246562 501 5.50 Cynthia Rose Gonzales
08/09/2024 246896 501 13.94 Patricia Contreras
08/09/2024 246901 501 10.69 Maria Elena Becerra
10/04/2024 247853 501 14.36 Derek Powers
10/04/2024 247869 501 12.13 Griselda Tejada
11/01/2024 248335 501 15.49 Gang Jing
11/22/2024 248822 501 12.76 Maria Martinez Guerra
12/13/2024 249127 501 13.30 Sandra Contreras
12/24/2024 249352 501 6.71 Beverly Joyce Stenberg
539.49
Unclaimed Checks To Be Released to The City of Los Banos Exhibit A
Check Date
60 Agenda Staff Report
TO: Mayor and City Council Members
FROM: William Via, Public Works Director
DATE: January 21, 2026
TYPE OF REPORT: Consent Agenda
SUBJECT: Rejecting all bids for the Well No. 16 Test Well No. 2 Project _____________________________________________________________________ Recommendation:

That the City Council adopts the Resolution rejecting all bids for the Well No. 16 Test Well No. 2 Project.

Background:

In October 2025, Public Works released the Well No. 16 Test Well No. 2 Project bid package for advertisement. On November 17, 2025 five (5) sealed bids were received and were officially opened by the office of the City Clerk. The bids received are included below.

Contractor Location Bid Amount
Calwater Drilling Co, Inc. Turlock, CA $177,202.00
Anthony J. Prieto Water Well Drilling, Inc. San Jose, CA $256,300.00 Quality Well Drillers, Inc. Atwater, CA $256,640.00
Bradley & Sons Inc. Del Rey, CA $414,500.00
Zim Industries, Inc. Fresno, CA $451,940.00
Discussion:

On November 26, 2025, Public Works received a bid protest letter from Zim Industries protesting specific experience requirements that were allegedly not met by the apparent ITEM 8F
61 lowest bidder, and other bidders. The bid protest procedure, identified in the bid documents, was then followed. The process consists of payment of a non-refundable $1,000 fee, a written formal protest that identifies the specific grounds for the protest, notification of bidders who may be affected by the protest, and a limited time for those bidders to respond. Staff received no responses from the affected bidders.

Public Works staff reviewed the bid documents against the claims of insufficient experience, discussed with the Engineering Consultant hired for this project, on at least two occasions, asked for more detail about experience from the apparent lowest bidder, and determined that there were inconsistencies in the required experience requested in the bid documents and the actual required experience needed for the project. The difference in the experience is based on the depth of previous wells drilled and the type of drilling method used. The bid documents called for experience to a depth of 1,000 feet using a reverse rotary drilling method, but the test well is expected to be only about 350 feet in depth before reaching the Corcoran Clay Layer, which is as deep as the well would go. Through this review and consultation process, the Public Works Director, in consultation with the City Attorney, determined that it is in the City’s best interest to reject all bids, and re-bid after further review and editing of the bid documents.

Per section 3-16.07 of the municipal code, the City Council may reject any and all bids presented if the Public Works Director, prior to rejecting all bids, furnishes a written notice to an apparent low bidder, informing the bidder of the City’s intention to reject the bid at least two (2) business days prior to the hearing at which the City Council intends to reject the bid. On December 16, 2025, a notice of intent to reject all bids was provided to all bidders, all builder exchanges included in the original notification requesting bids, and posted on the City Website. All bids may be rejected whenever the agency determines that the cost is not reasonable, the cost exceeds the amount estimated, or is otherwise in the best interest of the agency. Per section 6.02B of the State Contracting Manual, there is no basis for protest if the awarding agency rejects all bids based on the best interest of the agency.

Fiscal Impact:

No fiscal Impact from Bid Rejection.

Reviewed by:
______________________________
Soknirorn Than, City Manager
Attachments:

A. Resolution
B. Bid Opening Sheet
C. Bid Protest from Zim Industries, Inc.
62 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS REJECTING THE BIDS
FOR THE WELL NO. 16 TEST WELL
WHEREAS, Sealed Bids for the Well No. 16 Test Well No. 2 Project were officially opened on October 23, 2025; and
WHEREAS, the City Clerk of the City of Los Banos received eleven (11) sealed bids for the Well No. 16 Test Well No. 2 Project; and
WHEREAS, a bid protest was submitted by one of the bidders, pointing out a lack of required experience by some bidders; and
WHEREAS, since the required experience and actual experience needed were not consistent within the bid documents, the Public Works Director has determined that the protest has merit; and
WHEREAS, it is in the City’s best interest to reject all bids, review and edit the bid documents, and re-bid the project; and
WHEREAS, a notice of intent to reject all bids was provided to all bidders, all builder exchanges included in the original notification requesting bids, and posted on the City Website on December 16, 2025; and
WHEREAS, if said notice was given, per section 3-16.07 of the municipal code, the City Council has the authority to reject any and all bid proposals; and WHEREAS, the City Council may then: (a) abandon the project; (b) re-advertise for bids in the manner prescribed by this chapter; or (c) perform the work with City employees, after passing a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by City employees.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Los Banos does hereby:

1. Reject all bids received for the Well No. 16 Test Well Project; and

2. Hereby directs the Public Works Director to re-advertise for bids after reviewing and editing the bid documents.

The foregoing Resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21st day of January 2026, by Council Member 63 ______ 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
64 65

THIS PAGE IS INTENTIONALLY LEFT BLANK
66 67
68 69
70 71
72 73
74 CITY OF LOS BANOS

LOS BANOS SUCCESSOR AGENCY MEETING MINUTES
JANUARY 15, 2025
ACTION MINUTES – These minutes are prepared to depict action taken for agenda items presented to the Agency Board. For detail of this meeting refer to the electronic media (video/or audio) kept as a permanent record.

CALL TO ORDER: Mayor Amabile called the Agency Meeting to order at the hour of 6:49 p.m.

ROLL CALL – MEMBERS OF THE CITY COUNCIL PRESENT: Agency Board Members Evan Sanders – District 2, Marcus Chavez– District 3, Deborah Lewis – District 4, Mayor Michael Amabile; District 1 – vacant (Agency Member Lambert resigned earlier before the City Council Meeting)
STAFF MEMBERS PRESENT: City Attorney Vaughn, City Clerk/Human Resources Director Mallonee, City Treasurer Lawrence, Acting Police Chief Melden, Community & Economic Development Director Souza Elms, Parks & Recreation Director Heim, Public Works Director/City Engineer Bergson, Fire Chief Tualla, Financial Consultant Kuhn CONSIDERATION OF APPROVAL OF AGENDA: Motion by Chavez, seconded by Sanders to approve the agenda as submitted. The motion carried by the affirmative action of all Agency Members present.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE AGENCY

BOARD 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.

CONSIDERATION OF APPROVAL OF THE LOS BANOS SUCCESSOR AGENCY MINUTES FOR JANUARY 3, 2024. Motion by Lewis, seconded by Sanders to approve the January 3, 2024 Los Banos Successor Agency Minutes as submitted. The motion carried by the affirmative action of all Agency Board Members present.

CONSIDERATION OF APPROVAL OF LOS BANOS SUCCESSOR AGENCY RESOLUTION NO. 2025-1 – APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR FISCAL YEAR 2025-26. Financial Consultant Kuhn presented the staff report.

ITEM 8G
75 Motion by Lewis, seconded by Chavez to adopt Los Banos Successor Agency Resolution No. 2025-1 – Approving a Recognized Obligation Payment Schedule (ROPS) for Fiscal Year 2025-26. The motion carried by the affirmative action of all Agency Members present.

ADJOURNMENT. The meeting was adjourned at 7:03 p.m.

APPROVED:
____________________________
Michael S. Amabile, Mayor
ATTEST:
_______________________________
Lucille L. Mallonee, City Clerk
76 LOsBanos
Al tlte Cros~roa,ls of California
Agenda Staff Report
TO:

FROM:

Mayor & City Council Members
Vionna Lin
Assistant City Clerk/Records Coordinator
DATE: January 21, 2026
TYPE OF REPORT: Agenda Item
SUBJECT: City Commission Appointments
Recommendation:

Appoint members to the following City Commissions:

Airport Advisory Commission- Two (2) Vacancies
Two (2) Two (2) Year Terms - Expiring December 31, 2027 Parks & Recreation Commission - Two (2) Vacancies
Two (2) Two (2) Year Terms - Expiring December 31, 2027 Tree Commission - Three (3) Vacancies
Three (3) Two (2) Year Terms - Expiring December 31, 2027 Discussion:

Staff advertised the above vacancies on the City's website, on social media, and on the bulletin board outside of City Hall. Applicants were interviewed by a committee per City policy. Any remaining vacancies on City commissions will continue to be advertised.

Fiscal Impact:

None
ITEM 9
77 Reviewed by:
~ IL
Soknirorn Than, City Manager
78 Agenda Staff Report
TO: Mayor and City Council Members
FROM: Minerva Moreno, Finance Director
DATE: January 21, 2026
TYPE OF REPORT: Agenda
SUBJECT: Fiscal Year 2024 – 2025 Annual Comprehensive Financial Report Recommendation:

Staff recommends that Council adopt a Resolution accepting the 2024–2025 Annual Comprehensive Financial Report (ACFR) and the Government Auditing Standards Report prepared by CliftonLarsonAllen LLP, the City’s independent auditors.

Background:

The City’s fiscal year runs from July 1 through June 30. CliftonLarsonAllen LLP (CLA), independent auditors who specialize in governmental audits, audited the City’s financial records for the fiscal year ended June 30, 2025, and assisted staff in preparing the City’s ACFR.

The ACFR summarizes financial activity for the previous fiscal year and fund balances as of June 30, 2025, and provides narrative explanations in the transmittal letter and notes regarding significant policies, events, and activities of the past year. The report presents historical and comparative financial information that is 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 Governmental Accounting Standards Board (GASB). The attached ACFR has received an unmodified, or “clean,” audit opinion from the City’s independent auditors, CLA. An unmodified opinion indicates that the ACFR and the audited information contained therein fairly present the City’s financial position ITEM 10
79 for the fiscal year ended June 30, 2025. In addition, the audit disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards.

An independent auditor plays a critical role in issuing a clean audit opinion by objectively examining the City’s financial statements and internal control environment.

This process promotes transparency, accountability, and compliance with applicable accounting and regulatory standards, thereby supporting public confidence in the City’s financial reporting. The auditor evaluates financial records, assesses risk management practices, and performs testing to verify the accuracy and completeness of reported information. In accordance with generally accepted auditing standards, the auditor determines whether the City’s financial statements fairly present its financial position and results of operations. A clean opinion indicates that the financial statements are free of material misstatements and reflects sound fiscal management and responsible stewardship of public resources. This independent assurance is essential to City officials, residents, and other stakeholders in evaluating the City’s financial integrity and governance practices.

The City has received a clean audit opinion for several consecutive years and has been awarded the Government Finance Officers’ Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for ten (10) consecutive fiscal years.

The GFOA established this program to encourage and assist state and local governments in exceeding the minimum requirements of generally accepted accounting principles by preparing Annual Comprehensive Financial Reports that demonstrate transparency and full disclosure, while recognizing governments that achieve this standard of excellence. The City has once again submitted its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024, to the GFOA for review and consideration, and the award application is currently under review.

The City did not meet the federal expenditure threshold and, therefore, was not subject to the requirements of a Single Audit for the fiscal year.

The draft ACFR for the fiscal year ended June 30, 2025, is available for review in the Finance Department located at City Hall and on the City’s website at www.losbanos.org.

Fiscal Impact:

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

Reviewed by:
_________________________________
Soknirorn Than, City Manager
80 Attachments:

Resolution
2024 – 2025 Audit Key Points
Draft 2024 – 2025 audited ACFR
81 THIS PAGE IS INTENTIONALLY LEFT BLANK
82 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LOS BANOS ACCEPTING THE
2024/2025 FISCAL YEAR AUDIT REPORTS

CONSISTING OF THE ANNUAL

COMPREHENSIVE FINANCIAL REPORT AND

THE GOVERNMENT AUDITING STANDARDS
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 CliftonLarsonAllen LLP has completed the 2024/2025 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 2024/2025 Fiscal Year Audit Reports consisting of the Annual Comprehensive Financial Report (ACFR) and the Government Auditing Standards Report.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Los Banos held on the 21st day of January 2026, 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
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The Annual Comprehensive Financial Report (ACFR) communicates the City’s financial condition and activity for the fiscal year ending June 30, 2025. The City’s ACFR includes the following major sections and information and key points:

Introductory Section: (Page i) 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 1) Independent Auditors’ Report – the City’s report card • (Page 5) Management Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year • (Page 16) 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
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• Revenue Capacity Information
• Debt Capacity Information
• Demographic and Economic Information
• Operating Information
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 $351,830,794 (net position). The unrestricted net position of $54,695,683 may be used to meet the government’s ongoing obligations to citizens and creditors.

The City’s total net position increased by $28,059,675, with $16,118,979 attributable to governmental activities and $11,940,696 attributable to business-type activities. The City’s total assets increased by $46,261,427 due to various equipment purchases and infrastructure improvements throughout the year. Liabilities increased by $15,456,246.

An increase in unearned revenue from State Grant received contributed to this increase.

The deferred outflows of resources decreased by $4,232,501 and was mainly due to pension and OPEB related activity within the business type activities funds. The deferred inflows of resources decreased by $1,486,995. The decrease can be largely attributed to pension and OPEB activities in both the governmental and business type funds.

As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $106,646,221. This is an increase of $3,436,290 in comparison with the prior fiscal year. Approximately 25.8% or $27,520,574 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 $44,362,785. Of this amount:
• $8,561,838 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.
• $3,447 was considered nonspendable.
• $27,520,574 was unassigned for discretionary use.

The unassigned fund balance of $27,520,574 is 85.3% of the total General Fund expenditures. $7,669,725 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.
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The General Fund balance increased by $546,931 over the prior year, primarily due to growth in property tax revenues, permit activity due to increased development within the City and interest earnings
Final budget compared to actual results for the General Fund reported total revenues exceeded budget expectations by $683,937 or 2.2% and expenditure variances were positive in the amount of $6,209,948 between the amended budget and actual expenditures, or 19.3% under the amended budget.

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, 2025. The total net position of the City for all activities was $351.8 million. Net position is broken out into three categories; capital, restricted and unrestricted (Page 17)
Net Capital Position ($ 198.4 million)
Capital assets may include land, buildings, equipment, improvements, infrastructure and construction in progress.

Restricted Net Position ($ 98.7 million)
These assets are subject to agreements with creditors, developers, grantors, or laws or regulations of other governments. Approximately 34.09% of this amount is restricted for development projects, 35.05% is restricted for various capital projects, 11.55% is restricted for public safety, 9.83% is restricted for highways and streets, and the remaining amounts are restricted for parks and recreation, economic development and other constraints.

Unrestricted Net Position ($ 54.7 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, 2025, the City had $209.9 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 45 through 50 of the ACFR.

Capital assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, 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 $26,341,303.
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Long-term Debt
The financing lease with the California Infrastructure and Economic Development Bank (IBank decreased, resulting in an outstanding balance of $13,632,997 as of June 30, 2025. Compensated absences decreased by $544,334 from the prior fiscal year’s restated balance as a result of a change in accounting principle; the outstanding balance as of June 30, 2025 was $3,422,335. The IT subscription liability increased by $917,003 due to the addition of new subscription licenses, resulting in an outstanding balance of $965,055.

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 payments attributed to the current and past employees’ service, less the assets accumulated to pay those liabilities. As shown on pages 17 of the ACFR, the City has a combined net pension liability of $31,984,899. The City’s various pension plans are approximately 79% 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 20 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 58 through 64) and the Required Supplementary Information (pages 82 and 83).

The draft ACFR for the Fiscal Year Ending June 30, 2025 is available for review in the Finance Department located at City Hall and on the City’s website, www.losbanos.org. 88 City of Los Banos
California
Annual Comprehensive Financial
Report for Fiscal Year Ending
June 30, 2025
City of Los Banos
520 J Street
Los Banos, CA 93635

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TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
ORGANIZATION CHART v
DIRECTORY OF CITY OFFICIALS vi

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 17
STATEMENT OF ACTIVITIES 19

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 21

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL

FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 22

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS 23

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF
ACTIVITIES 24

PROPRIETARY FUNDS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS 26

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION – PROPRIETARY FUNDS 27
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 28

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YEAR ENDED JUNE 30, 2025

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

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULES

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND 76

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL – IMPACT FEES SPECIAL
REVENUE FUND 78

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL – PUBLIC SAFETY SPECIAL
REVENUE FUND 79

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL – ENCAMPMENT RESOLUTION
SPECIAL REVENUE FUND 80
NOTES TO BUDGETARY COMPARISON SCHEDULES 81

PENSION PLANS

COST-SHARING MULTIEMPLOYER PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION
LIABILITY 82
SCHEDULE OF CONTRIBUTIONS 83

RETIREE HEALTHCARE PLAN (OPEB)

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED
RATIOS 84
SCHEDULE OF CONTRIBUTIONS 85

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

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YEAR ENDED JUNE 30, 2025

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 88

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 89

BUDGETARY COMPARISON SCHEDULES

COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME GRANTS
SPECIAL REVENUE FUND 90
STREETS AND ROADS SPECIAL REVENUE FUND 91
ASSESSMENT DISTRICTS FUND 92
CMAQ GRANT FUND 93
HCD GRANT FUND 94
BADGER FLAT PIONEER 95
CAPITAL PROJECTS FUNDS 96

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 98

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 99
COMBINING STATEMENT OF CASH FLOWS 100

STATISTICAL SECTION
NET POSITION BY COMPONENTS – LAST 10 FISCAL YEARS 103
CHANGES IN NET POSITION – LAST 10 FISCAL YEARS 104
FUND BALANCES – GOVERNMENTAL FUNDS – LAST 10 FISCAL YEARS 106 CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS – LAST 10 FISCAL YEARS 107
ASSESSED VALUE OF TAXABLE PROPERTY – LAST 10 FISCAL YEARS 108 TAX REVENUE BY SOURCE – GENERAL FUND – LAST 10 FISCAL YEARS 109

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YEAR ENDED JUNE 30, 2025
DIRECT AND OVERLAPPING PROPERTY TAX RATES – LAST 10 FISCAL YEARS 110
PRINCIPAL PROPERTY TAXPAYERS – CURRENT YEAR AND TEN YEARS AGO 111
PROPERTY TAX LEVIES AND COLLECTIONS – LAST 10 FISCAL YEARS 112 RATIOS OF OUTSTANDING DEBT BY TYPE – LAST 10 FISCAL YEARS 113 RATIOS OF GENERAL FUND DEBT OUTSTANDING – LAST 10 FISCAL YEARS 114
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT – As of June 30, 2025 115
LEGAL DEBT MARGIN INFORMATION – LAST 10 FISCAL YEARS 116 PLEDGED REVENUE COVERAGE – LAST 10 FISCAL YEARS 117
DEMOGRAPHIC AND ECONOMIC STATISTICS – LAST 10 FISCAL YEARS 118 PRINCIPAL EMPLOYERS – CURRENT YEAR AND NINE YEARS AGO 119

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/PROGRAM – LAST 10 FISCAL YEARS 120

OPERATING INFORMATION, OPERATING INDICATORS BY
FUNCTION/PROGRAM – LAST 10 FISCAL YEARS 121

OPERATING INFORMATION, CAPITAL ASSETS STATISTICS BY
FUNCTION/PROGRAM – LAST 10 FISCAL YEARS 122

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94 (i)
City Hall Phone: (209) 827-7000
520 J Street Fax: (209) 827-7010
Los Banos, CA 93635 www.losbanos.org
[REPORT DATE]
Honorable Mayor,
Members of the City Council, and
Citizens of the City of Los Banos
SUBJECT: Annual Comprehensive Financial Report – June 30, 2025 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, 2025. 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.

CliftonLarsonAllen LLP, a firm of licensed certified public accountants approved by the City Council, has audited the City’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025 were free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

CliftonLarsonAllen LLP concluded that there is reasonable basis for rendering an unmodified (“clean”) opinion for the City's financial statements for the fiscal year ended June 30, 2025, 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 accordance with the provisions of the Federal Single Audit Act and Title 2 of the U.S. Code of Federal Regulations, Part 200. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements related to the administration of federal awards. The Single Audit, when required, is issued separately from this ACFR. However, for the current fiscal year, a Single Audit of federal awards was not required, as the City did not expend federal awards in excess of the applicable expenditure threshold.

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

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This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s 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 City has a population of 47,419 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, Streets, Solid Waste, Street Sweeping, Water and Sewer 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 City Council, which consists of a mayor and four Council Members.

The Mayor is elected at-large 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 City 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, the persistent risk of stagflation, and sale tax leakage to other jurisdictions outside of Merced County.

The unemployment rate for the City has risen to 13.4% from 12.10% the previous year. Meanwhile, Merced County experienced a decrease in unemployment, falling to 8.50% from 9.60% of the prior year. California’s unemployment rate saw a slight uptick, moving from 5.30% to 5.60%. This according to the Bureau of labor statistics Metro Area employment and unemployment. Recognizing employment as a vital component of the local economy, City 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 2024/25 fiscal year, five (5) commercial building permits were issued, including tenant improvements for Kagome, Ono Hawaiian BBQ, Dutch Bros, UG Plumbing & Electrical, and Los Banos Express Car Wash. Other finalized commercial projects includes El Pollo Loco and Starbuck. Additionally, in the residential sector, over 145 new permits were issued, and 53 permits were finalized. Rising costs of construction and interest rates have caused a slowdown in the housing market. Despite these challenges, we anticipate a gradual recovery in residential permits during Fiscal Year 2025/26.

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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 reinforce fiscal stability and emergency preparedness, the City Council has established a policy to maintain a 30% General Fund reserve. The City also incorporates a 5-year Capital Improvement Plan with the budget approval process. This plan is a tool that is used for strategic decision making and presents further context for balancing shortterm and long-term goals.

Retirement contribution rates have increased in recent years due to CalPERS policy changes, including a shortened amortization period for unfunded accrued liabilities and the phased reduction of the discount rate adopted in prior years. Although CalPERS achieved a favorable 11.6% investment return, the discount rate remained at 6.9%, resulting in an overall funded status of approximately 79%. As a result of recent investment performance and stabilized assumptions, employer contribution rates are projected to level off over the next several years.

In anticipation of these challenges, the City has assigned $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.

Even with sound financial planning and long-term forecasting, not all future outcomes can be predicted. In recognition of this uncertainty, the City has taken proactive steps by building financial reserves, adopting strong fiscal policies, and approving key revenue measures to support City services. Nevertheless, like other public agencies, the City will continue to face unmet needs in an environment of limited resources.

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
 ERP Tyler Software Project
Community and Economic Development
 Downtown Gateway Signage
 Civic Center Project
 Tyler Land Management and Permitting
System
Police
 Fleet Replacement
 Body Cameras
Fire
 Fire Station #4 and EOC
 Fire Station #3
Streets
 Street Overlay Rehabilitations
 Alley Overlays
 Pioneer Road Widening Project
 Transportation masterplan updates
Parks & Recreation
 Pickleball Courts
 Ag Sports Complex Improvements
 Colorado Ball Park Improvements
Utilities
 Mercey Springs Water Line
 Sewer Lift Stations Rehabilitations
 Water quality and treatment – Chromium 6
 Water, Sewer, and Storm Drain masterplan
updates

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Solid Waste
 Old Landfill Closure
Facilities Maintenance
 ADA Transition Plan
 HVAC Replacement
Information Technology
 Desktop/Laptop Replacement
 Network/Server Replacement
 City facilities interconnectivity
 SB 707 implementation
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
The City submitted an application for the Government Finance Officers Association of the United States and Canada (GFOA) award of 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, 2024. The City’s application is still under review. For nine consecutive years, the City 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,
Minerva Moreno Soknirorn Than
Finance Director City Manager

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ORGANIZATION CHART
(v)

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DIRECTORY OF CITY OFFICIALS
JUNE 30, 2025
(vi)

ELECTED OFFICIALS
Mayor Michael Amabile
Council Member District 1 Vacant
Council Member District 2 Evan Sanders
Council Member District 3 Marcus Chavez
Mayor Pro Tem District 4 Deborah Lewis
City Clerk Lucy Mallonee
City Treasurer Lucy Lawrence

APPOINTED OFFICIALS
Interim City Manager Gary Brizee
City Attorney William Vaughn
Human Resources Director Lucy Mallonee
Fire Chief Paul Tualla
Police Chief Ray Reyna
Public Works Director Vacant
Finance Director Minerva Moreno
Community & Economic Development Director Stacy Souza Elms Parks & Recreation Director Joe Heim

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(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members
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 businesstype activities, each major fund, and the aggregate remaining fund information of the City of Los Banos, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Los Banos’s basic financial statements as listed in the table of contents.

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

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Los Banos 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
Adoption of New Accounting Standard
As discussed in Note 1 to the financial statements, effective July 1, 2024, the City of Los Banos adopted new accounting guidance for compensated absences. The guidance requires that liabilities for compensated absences be recognized for leave that has not been used and leave that has been used but has not yet been paid. Our opinions are not modified with respect to this matter.

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Honorable Mayor and Members
City Council
City of Los Banos, California
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, 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 GAAS 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 City of Los Banos’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 City of Los Banos’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.

DRAFT REPORT

FOR DISCUSSION

PURPOSES ONLY
103
Honorable Mayor and Members
City Council
City of Los Banos, California
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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 the net OPEB liability and related ratios, and the schedule of OPEB contributions 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Los Banos’s basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. 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 auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material 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.

DRAFT REPORT

FOR DISCUSSION

PURPOSES ONLY
104
Honorable Mayor and Members
City Council
City of Los Banos, California
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated REPORT DATE, on our consideration of the City of Los Banos’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 of Los Banos’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Los Banos’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Roseville, California

REPORT DATE

DRAFT REPORT

FOR DISCUSSION

PURPOSES ONLY
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Management’s Discussion and Analysis
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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, 2025. 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 $351,830,794 (net position). The unrestricted net position of $54,695,683 may be used to meet the government’s ongoing obligations to citizens and creditors.

The City’s total net position increased by $28,059,675, with $16,118,979 attributable to governmental activities and $11,940,696 attributable to business-type activities. The City’s total assets increased by $46,261,427 due to various equipment purchases and infrastructure improvements throughout the year. Liabilities increased by $15,456,246. An increase in unearned revenue from State Grant received contributed to this increase.

The deferred outflows of resources decreased by $4,232,501 and was mainly due to pension and OPEB related activity within the business type activities funds. The deferred inflows of resources decreased by $1,486,995. The decrease can be largely attributed to pension and OPEB activities in both the governmental and business type funds.

As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $106,646,221. This is an increase of $3,436,290 in comparison with the prior fiscal year. Approximately 25.8% or $27,520,574 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 $44,362,785. Of this amount, $8,561,838 was assigned for various capital projects, $8,276,926 was committed for Police Annex renovation and the City’s general plan update. $27,520,574 was unassigned for discretionary use and $3,447 was considered nonspendable. The unassigned fund balance is 85.3% 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 detail 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).

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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 17–19 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 a total of 84 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. Of this total, 7 funds are accounted for within the General Fund, which includes the General Fund and other programs reported as part of General Fund activities. In addition to the General Fund, certain special revenue funds are reported as major governmental funds due to their significance. These include 24 impact fee funds, 13 public safety funds, and 1 encampment resolution. In total, 38 special revenue funds are reported as major governmental funds. All remaining governmental funds that do not meet the criteria for major fund reporting are presented as non-major governmental funds, which total 39 funds and are reported in the combining statements accompanying the basic financial statements.

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 21–24 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, its facilities maintenance 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. 107
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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, considered to be major funds, as well as the municipal airport considered to be a nonmajor fund 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 26–28 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 Redevelopment 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 30–31 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 32–74 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 postemployment benefits (OPEB) to its employees. Required supplementary information can be found on pages 76–85 of this report.

The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on pensions and OPEB. Combining and individual fund statements and schedules for non-major governmental funds are presented first, followed by those of the internal service funds. These statements and schedules can be found on pages 88–100 of this report.

Government-Wide Overall Financial Analysis
Net Position: A condensed presentation of the City’s net position shown below totals $351,830,794 as of June 30, 2025. 108
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By far, the largest portion of the City’s net position $198,378,137 (56.4%) 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 $98,756,974 (28.1%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $54,695,683 (15.5%) 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.

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 19.

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 $748,319 overall increase from the 2024 fiscal year. This increase was primarily due to increased sales tax revenue and assessment revenue in fiscal year 2025. (in thousands of dollars)
2024 2025 2024 2025 2024 2025
Current and other assets 110,290 125,714 90,635 95,132 200,926 220,846 Capital assets 130,585 151,675 56,411 61,662 186,996 213,337 Total assets 240,875 277,390 147,046 156,794 387,922 434,183 Deferred outflows of resources 16,934 15,020 4,576 2,257 21,510 17,277 Long-term liabilities outstanding 53,635 59,405 18,261 14,344 71,896 73,749 Other liabilities 5,962 19,526 2,899 2,937 8,861 22,463 Total liabilities 59,597 78,931 21,160 17,281 80,756 96,212 Deferred inflows of resources 3,635 2,782 1,270 636 4,905 3,418 Net position:

Net investment in capital assets 117,217 136,867 56,325 61,511 173,541 198,378 Restricted 61,048 62,820 25,656 35,937 86,704 98,757
Unrestricted 16,313 11,010 47,213 43,686 63,526 54,696
Total net position 194,578 210,697 129,193 141,134 323,771 351,831 Governmental Activities Business Type Activities Total Activities 2024 2025
Program revenues $ 44,131,452 $ 56,243,566
General revenues 40,220,740 40,969,059
Governmental expenses (43,046,923) (48,297,775)
Business-type expenses (23,186,202) (18,299,966)
Net increase (decrease) 18,119,067 $ $ 30,614,884
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The City’s overall net position increased $28,059,675 (8.7%) from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities.

Key elements of this increase are as follows:

Governmental Activities. During the current fiscal year, net position for governmental activities increased $18,061,234 or 9.4% from the prior restated fiscal year for an ending balance of $210,696,753. 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 sales tax revenue. The full Statement of Net Position can be found on pages 17–18.

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 $141,134,041. The total increase in net position for business-type activities (water, wastewater, solid waste and airport funds) was $12,553,650 or 9.8% from the prior restated fiscal year ending balance. 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 $1,180,174 from the previous year’s amounts. The City adopted rate increases effective July 1, 2024, for five years. (in thousands of dollars) %
2024 2025 2024 2025 2024 2025 Change
Programs revenues:

Charges for services 10,716 11,999 23,070 24,250 33,786 36,249 6.8% Operating grants 6,311 2,697 49 86 6,360 2,783 -128.5%
Capital grants 3,151 14,651 834 2,560 3,985 17,211 76.8% General revenues:

Property taxes 13,347 14,366 8 8 13,354 14,374 7.1%
Sales taxes 14,530 15,959 0 0 14,530 15,959 9.0%
Other taxes 1,358 1,398 0 0 1,358 1,398 2.8%
Use of money and property 6,058 4,737 3,736 3,405 9,794 8,143 -20.3% Gain on sale of capital assets 265 35 79 30 344 65 -430.5% Miscellaneous 456 806 385 224 841 1,030 22.5% Total revenues 56,191 66,649 28,161 30,564 84,352 97,213 15.2% Expenses:

General government 2,403 1,611 0 0 2,403 1,611 -33.0%
Public safety 23,369 28,416 0 0 23,369 28,416 21.6%
Highways and streets 7,865 6,648 0 0 7,865 6,648 -15.5% Parks and recreation 7,745 8,600 0 0 7,745 8,600 11.1%
Economic development 1,663 2,719 0 0 1,663 2,719 63.5%
Interest on long-term debt 3 304 0 0 3 304 10625.6% Water 0 0 6,439 6,106 6,439 6,106 -5.2% Sewer 0 0 9,447 5,025 9,447 5,025 -46.8%
Airport 0 0 400 433 400 433 8.3%
Solid waste 0 0 6,901 6,735 6,901 6,735 -2.4%
Total expenses 43,047 48,298 23,186 18,300 66,233 66,598 0.6% Increase (decrease) in
net position before transfers 13,145 18,351 4,975 12,264 18,119 30,615 69.0% Transfers 0 -290 0 290 0 0 - Increase (decrease) in
net position 13,145 18,061 4,975 12,554 18,119 30,615 69.0% Net position - beginning (restated) 181,433 192,636 124,219 128,580 305,652 321,216 5.1% Net position - ending 194,578 210,697 129,193 141,134 323,771 351,831 8.7% Governmental Activities Business Type Activities Total Activities 110
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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 $48,297,775 were offset by charges for services of $11,999,389, operating grants/contributions of $2,696,826, and capital grants/contributions of $14,650,970, bringing the net expense to cost of services to $18,950,590. Streets received a total of $6,787,297 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 $26,703,973.

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, following is a table showing the increases and decreases to total assets, liabilities, revenues, and expenditures of the City fund types from fiscal year 2024 to 2025. The total revenues and expenditures do not include any “other financing sources (uses).” During fiscal year 2025, the grouping of non-major governmental funds was modified; therefore, amounts presented for non-major funds may not be directly comparable to the prior fiscal year.

As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $106,646,221 or an increase of $3,436,290 from the prior fiscal year. Approximately 58.4% of this total amount ($62,283,436) is not available for new spending because it is restricted to public safety, street maintenance, impact fee related projects (in thousands)
2024 2025 2024 2025
General Government $ 2,403,080 $ 1,611,209 $ (1,380,514) $ 10,496,160 Public safety 23,368,656 28,415,530 (19,494,912) (26,703,973) Highways and streets 7,864,617 6,647,958 2,006,096 2,606,592 Parks and recreation 7,744,514 8,600,493 (2,519,392) (2,999,391) Economic development 1,663,222 2,718,622 (1,477,354) (2,046,015) Interest of long-term debt 2,834 303,963 (2,834) (303,963) $ 43,046,923 $ 48,297,775 $ (22,868,910) $ (18,950,590) Total Cost of Services Net Cost of Services
Increase (Decrease) from Prior Year
Assets Liabilities Revenues Expenditures
General fund $ (16,117) $ (563,048) $ 361,669 $ 4,310,375 Special revenue funds (3,511,391) 11,776,178 (5,453,646) (9,346,495) Nonmajor funds 18,780,448 2,212,922 6,582,932 5,206,797 Net increase (decrease) 15,252,940 $ $ 13,426,052 $ 1,490,955 $ 170,677 111
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and capital grant projects. Of the remaining balance, $200,960 is committed for vehicle replacement Public Safety, $8,000,000 is committed for City Hall and the Police Annex renovation, $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 $2,725,211 is assigned for unforeseen financial challenges and $3,775,081 is assigned for capital improvements. $27,520,574 or 25.8% as unassigned and available for spending in the future at the government’s discretion. However, approximately $7.66 million of the General Fund’s unassigned fund balance is needed to comply with the City’s minimum fund balance policy.

General Fund
The assets in the General Fund realized a decrease of 0.03% whereas liabilities decreased by 18.5%. The total fund balance for General Funded ended the year at $44,362,785 with $27,520,574 as unassigned and available for discretionary use. This was an overall fund balance increase of 1.2% 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 four major governmental funds: General Fund, Impact Fees Special Revenue Fund, Public Safety Special Revenue Fund, and Encampment Resolution Special Revenue 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, 2025, the impact fee funds had a total fund balance of $32,547,424. The entire amount of the fund balance has been restricted for capital projects. 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 public safety facilities and parks. Most of the remaining fund equity position will be used on expanding public safety facilities, utility infrastructure and traffic improvements in order to mitigate safety and traffic impact from new development. Fund equity decreased primarily due to increased expenditures associated with capital improvement activities.

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, 2025 was $11,403,758. Fund equity increased due to increase in CFD Assessments and increased development.

Encampment Resolution Fund. This fund accounts for revenues and expenditures associated with the City’s participation in the State of California Encampment Resolution Fund (ERF) grant program. Resources in this fund are restricted for activities that support the resolution of homeless encampments and the transition of unsheltered individuals into safe and stable housing. The total fund balance at June 30, 2025 was $306,421. In addition, the fund reported $11,578,593 in unearned revenue, which will be recognized and available for future expenditures as eligibility requirements are met.

Non-Major Governmental Funds. These funds include Community Development Block Grant (CDBG) and HOME Grants, which account for grant funding received from the State of California to assist low- to moderate-income homeowners; Streets and Roads funds, which include the Regional Surface Transportation Program (RSTP), Transportation Expenditure Plan (TEP), Gas Tax, and Local Transportation Fund (LTF) used to maintain and improve the City’s street and sidewalk infrastructure; Assessment Districts, which are used to maintain sidewalks, landscaping, parks, street signs, streetlights, trees, fences, and storm drains within designated districts throughout the City; CMAQ Grant, which accounts for grant revenues received for transportation projects intended to reduce 112
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traffic congestion and improve regional air quality; the Housing Community Development Grant, which supports planning and process improvements to streamline housing approvals and accelerate housing production; the Badger Flat Pioneer Fund, which accounts for development fees restricted for future roadway design and construction; and Capital Grants funds, which account for major capital projects, including traffic mitigation, emergency operations, and police facilities improvements. The total fund balance at June 30, 2025 was $18,025,833. Fund equity increased as a result of the reclassification and combining of previously reported major funds into non-major governmental funds.

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 all departments for salaries, benefits and overtime in the amount of $445,430, interest transfer from ARPA to general fund in the amount of $556,000, transfer to close out Police Station capital project fund in the amount of $1,000,000 and an increase to insurance for all departments in the aggregate amount of $56,331 to account for the change in estimated member contributions to CSJVRMA.

Final budget compared to actual results. Total revenues exceeded budget expectations by $683,937 or 2.22%. 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 $11,401,607 but the actual amount received was $12,363,034 for a $961,427 amount over budget. Estimated revenues for use of property and money was $1,881,675 and the actual amount received was $2,675,213 exceeding the budget by $793,538. These positive variances exceeded the budget by 13.21% or $1,754,965. This was due to increased property values and for property taxes on home sales and higher yield on interest earnings.

Expenditure variances were positive, coming in 16.04% under the amended budget. The most significant savings were found in general government (administration), public safety, community and economic development, and capital outlay. General government (administration) realized a positive variance of $451,529, public safety $1,685,325, community and economic development $819,174 and capital outlay $2,446,858. There was a total positive variance of $6,161,149 between the amended budget and actual expenditures.

In fiscal year 2018-2019, the citizens of Los Banos passed a ½ 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 $4,069,000 in Measure H sales tax revenue and received $3,923,024 failing to meet budget expectations by $145,976. Measure H expenditures were budgeted at $4,743,324 and ended the year at $4,095,546. This was an expenditure savings of $647,778 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, 2025, amounts to $213,337,299 (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 $26,341,303.
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For governmental activities, capital assets (net of accumulated depreciation) increased $21,090,479 and businesstype activities increased by $5,250,824 in fiscal year 2024-2025.

A recap of the City’s capital assets, net of accumulated depreciation, is shown next:

The City’s depreciation expense for the year totals $10,838,747. This includes $7,800,979 in depreciation expense for governmental activities and $3,037,768 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 52–53 of this report.

Major capital asset events during the current fiscal year include the projects stated as follows:
 F Street Perimeter Fence by General Fund/Solid Waste
 Street Overlays paid by Public Works Street & Roads Fund.  Public Safety Motorola Radio Project by Measure H
 Park Playground Shade Structure by Park Impact Fees
 Playground Equipment at City Parks paid by Recreation Measure H.  Seventh and J Street Parking Lot by General Fund
 Purchase of Public Safety vehicles paid by the General Fund/Impact Fees  Wastewater Treatment Plant Perimeter Fence w/Gate by Wastewater  Public Works Fleet Replacement by Water/Wastewater
 Leaf Machine, Kubota Tractor and Street Sweeper by Solid Waste Long-term Debt: A recap of the City’s long-term debt is presented below. During the fiscal year, the financing lease payable to the California Infrastructure and Economic Development Bank (IBank) decreased, resulting in an outstanding balance of $13,632,997 as of June 30, 2025. The IT subscription liability increased by $917,003 due to the addition of new subscription licenses. Additionally, employee compensated absences decreased by $544,344 from the prior fiscal year’s restated balance as a result of a change in accounting principle.

More detailed information about the City’s long-term debt is presented in Note 8 to the financial statements.

Economic Factors and Next Year’s Budgets and Rates
Governmental Activities Business-type Activities %
Description 2024 2025 2024 2025 2024 2025 Change
Land 32,161 40,248 8,068 8,068 40,229 48,316 20.1
Buildings, structure and improvements 48,885 49,947 10,185 10,341 59,070 60,288 2.1 Equipment 24,478 27,566 13,359 14,887 37,837 42,453 12.2 Right-to-use IT subscriptions 73 1,016 14 - 87 1,016 1067.8 Infrastructure 157,835 165,141 76,779 80,924 234,614 246,065 4.9 Construction in progress 3,577 11,395 2,316 4,693 5,893 16,088 173.0 Less: accumulated depreciation (136,425) (143,637) (54,310) (57,251) (190,735) (200,888) 5.3 Total capital assets 130,584$ 151,676$ 56,411$ 61,662$ 186,995$ 213,338$ 14.1 Total
(in thousands of dollars)
Debt Types 2024 2025 2024 2025 2024 2025
Financing lease 14,000 13,633 - - 14,000 13,633
IT subscription liability 48 965 9 - 57 965
Comp. absences (restated) 3,053 2,622 913 800 3,966 3,422 Total Debt 17,101 17,221 922 800 18,024 18,020
Governmental Activities Business Type Activities Total
114
CITY OF LOS BANOS | JUNE 30, 2025
Management’s Discussion and Analysis
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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 assessed values increased during the fiscal year, resulting in higher property taxes in lieu of vehicle license fees (VLF). Sales tax has flatten 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. Property tax is the City’s largest source of revenue representing 37.74% of the General Fund. Property tax is anticipated to increase by 1.21 %. The second largest revenue is Sales tax which makes up 31.86% of the General Fund.

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 2024 and 2025. A new MOU is expected to be executed in fiscal year 2027-2028 and 2028-2029 further increasing this cost. Health benefits continue to rise as well as employer contributions to CalPERS 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 14% increase in workers compensation as well as an overall 24% 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 6.9%.

Following is the employee rate, employer’s normal cost rate, and unfunded accrued liability (UAL) by fiscal year:

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 Employer Employer
Employee Normal Cost UAL Employee Normal Cost UAL
2023 8.00% 14.90% 1,070,875$ 9.00% 25.64% 1,012,162$
2024 8.00% 16.87% 1,067,086$ 9.00% 29.09% 1,018,478$
2025 8.00% 16.94% 1,223,902$ 12.00% 29.30% 1,213,742$
Employer Employer
Employee Normal Cost UAL Employee Normal Cost UAL
2023 7.00% 9.30% 6,093$ 9.00% 22.48% 8,860$
2024 7.00% 10.87% -$ 9.00% 24.79% -$
2025 7.00% 10.93% 4,551$ 12.00% 24.96% 7,928$
Employer Employer
Employee Normal Cost UAL Employee Normal Cost UAL
2023 7.25% 7.76% 8,980$ 13.75% 13.66% 6,984$
2024 8.25% 8.00% -$ 14.50% 14.50% -$
2025 8.25% 8.18% 10,755$ 14.50% 14.72% 12,673$ Police

14.50% 14.72% 1,529$ Fire

2.7% @ 55 3% @ 50
Miscellaneous Safety

2.0% @ 60 3% @ 55
Miscellaneous Safety

2.0% @ 62 2.7% @ 57
Miscellaneous Safety
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CITY OF LOS BANOS | JUNE 30, 2025
Management’s Discussion and Analysis
(15)
$1,373,676 for retirement health benefits and sent another $521,293 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 19, 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 2024-2025 utility rates were increased by a CPI of 2.4% as of July 1, 2024. 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.

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 are reviewed annually and are subject to annual adjustment; in fiscal year 2024–25, the fees were increased based on the Consumer Price Index (CPI).

Over the past several years, the local economy has continued to show steady improvement; however, rising inflationary pressures and ongoing tariff impacts suggest the possibility of a broader economic slowdown ahead. Los Banos has benefited from sustained growth in property tax revenues, reflecting continued strength in the housing market, but consumer spending is expected to remain relatively flat as national and global economic cycles stabilize.

In response, a prudent and conservative budgeting strategy has been developed for FY 2025–26 to help safeguard City operations against any residual or emerging economic challenges.

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
116
(16)

DRAFT REPORT

BASIC FINANCIAL STATEMENTS

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CITY OF LOS BANOS

STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(17)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments $ 117,503,051 $ 56,446,220 $ 173,949,271 Restricted Cash and Investments 35,937,209 - 35,937,209 Receivables:

Accounts Receivable 278,476 2,460,587 2,739,063
Taxes Receivable 4,105,573 - 4,105,573
Interest Receivable 335,416 260,477 595,893
Intergovernmental Receivables 1,755,236 - 1,755,236
Loans Receivable 1,677,925 - 1,677,925
Internal Balances 54,871 (54,871) -
Inventories - 80,478 80,478
Prepaid Items 3,714 1,686 5,400
Capital Assets, Not Being Depreciated or Amortized:

Land 40,247,774 8,067,666 48,315,440 Construction in Progress 11,394,724 4,693,273 16,087,997 Capital Assets, Being Depreciated and Amortized:

Building and Structures 49,946,689 10,341,187 60,287,876 Machinery and Equipment 27,566,535 14,929,552 42,496,087 Infrastructure 165,140,674 80,880,924 246,021,598 Right-to-Use IT Subscription 1,016,139 - 1,016,139 Less: Accumulated Depreciation and Amortization (143,637,079) (57,250,759) (200,887,838) Total Assets 277,389,718 156,793,629 434,183,347

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows from Pensions 9,775,773 923,678 10,699,451 Deferred Outflows from OPEB 5,244,666 1,333,367 6,578,033 Total Deferred Outflows of Resources 15,020,439 2,257,045 17,277,484

LIABILITIES
Accounts Payable and Other Current Liabilities 3,716,668 1,928,024 5,644,692 Due to Other Governments 1,677,925 - 1,677,925
Retainage Payable 210,160 150,970 361,130
Unearned Revenue 12,431,012 1,146 12,432,158
Interest Payable 163,333 - 163,333
Deposits 116,180 856,940 973,120
Noncurrent Liabilities:

Due Within One Year:

Compensated Absences 958,989 249,189 1,208,178
IT Subscription Liability 85,008 - 85,008
Long-Term Debt 375,098 - 375,098
Due in More Than One Year:

Compensated Absences 1,663,488 550,669 2,214,157
IT Subscription Liability 880,047 - 880,047
Long-Term Debt 13,257,879 13,257,879 - Net Pension Liability 29,026,982 2,957,917 31,984,899 Net OPEB Liability 14,368,540 3,652,958 18,021,498
Landfill Closure and Postclosure Liability - 6,933,226 6,933,226 Total Liabilities 78,931,309 17,281,039 96,212,348

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CITY OF LOS BANOS

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(18)
Governmental Business-Type
Activities Activities Total

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows from Pensions $ 577,863 $ 75,205 $ 653,068 Deferred Inflows from OPEB 2,204,232 560,389 2,764,621 Total Deferred Inflows of Resources 2,782,095 635,594 3,417,689

NET POSITION
Net Investment in Capital Assets 136,867,264 61,510,873 198,378,137 Restricted for:

Public Safety 11,403,758 11,403,758 - Highways and Streets 9,709,896 - 9,709,896 Parks and Recreation 1,469,374 - 1,469,374
Development Projects 33,661,423 33,661,423 - Capital Projects 5,614,147 29,003,983 34,618,130 Economic Development 961,167 - 961,167
Landfill Closure and Postclosure Costs - 6,933,226 6,933,226 Total Restricted 62,819,765 35,937,209 98,756,974
Unrestricted 11,009,724 43,685,959 54,695,683 Total Net Position $ 210,696,753 $ 141,134,041 $ 351,830,794

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CITY OF LOS BANOS

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(19)
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expense Services Contributions Contributions Activities Activities Total Primary Government:

Governmental Activities:

General Government $ 1,611,209 $ 3,713,595 $ 546,440 $ 7,847,334 $ 10,496,160 $ 10,496,160 - $ Public Safety 28,415,530 1,350,523 344,695 16,339 (26,703,973) (26,703,973) - Highways and Streets 6,647,958 1,497,687 969,566 6,787,297 2,606,592 2,606,592 - Parks and Recreation 8,600,493 5,169,382 431,720 (2,999,391) - (2,999,391) - Economic Development 2,718,622 268,202 404,405 (2,046,015) - (2,046,015) - Interest on Long-Term Debt 303,963 - - - (303,963) - (303,963) Total Governmental Activities 48,297,775 11,999,389 2,696,826 14,650,970 (18,950,590) (18,950,590) - Business-Type Activities:

Water 6,105,780 8,325,642 1,456,320 - 3,676,182 - 3,676,182 Wastewater 5,025,305 8,191,993 1,104,120 - 4,270,808 - 4,270,808 Airport 433,434 308,750 55,000 - - (69,684) (69,684)
Solid Waste 6,735,447 7,423,472 31,084 - - 719,109 719,109 Total Business-Type Activities 18,299,966 24,249,857 86,084 2,560,440 8,596,415 - 8,596,415 Total Primary Government $ 66,597,741 $ 36,249,246 $ 2,782,910 $ 17,211,410 (18,950,590) 8,596,415 (10,354,175) General Revenues:

Taxes:

Property 14,365,992 8,292 14,374,284 Sales 15,959,009 15,959,009 - Transient Taxes and Other 698,168 - 698,168 Franchise 699,912 - 699,912
Unrestricted Investment Income 4,737,240 3,405,335 8,142,575 Gain on Sales of Capital Assets 35,205 29,602 64,807 Miscellaneous 806,034 224,270 1,030,304 Transfers (289,736) 289,736 - Total General Revenues 37,011,824 3,957,235 40,969,059 CHANGE IN NET POSITION 18,061,234 12,553,650 30,614,884 Net Position - Beginning of Year, as originally reported 194,577,774 129,193,345 323,771,119 Change in accounting principle (1,942,255) (612,954) (2,555,209) Net Position - Beginning of Year, as restated 192,635,519 128,580,391 321,215,910 NET POSITION - END OF YEAR $ 210,696,753 $ 141,134,041 $ 351,830,794 Program Revenues Changes in Net Position
Net (Expense) Revenue and

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FUND FINANCIAL STATEMENTS
The funds described below were determined to be major funds by the City in fiscal year 2025. Individual nonmajor 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.

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.

ENCAMPMENT RESOLUTION SPECIAL REVENUE FUND
The Encampment Resolution Fund is a special revenue fund established to account for revenues and expenditures associated with the City’s participation in the State of California Encampment Resolution Fund (ERF) grant program. Resources in this fund are restricted for activities that support the resolution of homeless encampments and the transition of unsheltered individuals into safe and stable housing.

All activity within the Encampment Resolution Fund is accounted for in accordance with the grant agreement, applicable state regulations, and generally accepted accounting principles.

DRAFT REPORT

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121

CITY OF LOS BANOS

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(21)
Nonmajor Total
Impact Public Encampment Governmental Governmental
General Fees Safety Resolution Funds Funds
ASSETS
Cash and Investments $ 43,415,568 $ 32,960,903 $ 10,687,113 $ 11,907,383 $ 18,057,072 $ 117,028,039 Accounts Receivable 231,116 2,485 2,820 - 42,055 278,476 Taxes Receivable 2,920,533 - 703,332 - 481,708 4,105,573 Interest Receivable 135,182 108,261 32,735 - 56,084 332,262 Due from Other Governments 143,766 1,211,065 - - 400,405 1,755,236 Prepaid Items 3,447 - - - - 3,447
Loans Receivable - - - - 1,677,925 1,677,925
Total Assets $ 46,849,612 $ 34,282,714 $ 11,426,000 $ 11,907,383 $ 20,715,249 $ 125,180,958

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 2,370,647 $ 765,773 $ 22,242 $ 22,369 $ 382,100 $ 3,563,131 Due to other Governments - - - - 1,677,925 1,677,925
Unearned Revenue - 223,028 - 11,578,593 629,391 12,431,012 Retainage Payable - 210,160 - - - 210,160
Deposits 116,180 - - - - 116,180
Total Liabilities 2,486,827 1,198,961 22,242 11,600,962 2,689,416 17,998,408

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 536,329 - - - 536,329
Total Deferred Inflows
of Resources - 536,329 - - - 536,329

FUND BALANCES
Nonspendable 3,447 - - - - 3,447
Restricted - 32,547,424 11,403,758 306,421 18,025,833 62,283,436 Committed 8,276,926 - - - - 8,276,926
Assigned 8,561,838 - - - - 8,561,838
Unassigned 27,520,574 - - - - 27,520,574
Total Fund Balances 44,362,785 32,547,424 11,403,758 306,421 18,025,833 106,646,221 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 46,849,612 $ 34,282,714 $ 11,426,000 $ 11,907,383 $ 20,715,249 $ 125,180,958 Special Revenue Funds

DRAFT REPORT

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122

CITY OF LOS BANOS

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL

FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(22)
Total Fund Balances - Governmental Funds $ 106,646,221
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current assets or financial resources and, therefore, were not reported in the governmental funds. 151,236,344 Pension related deferrals are reported as deferred outflows and inflows of resources on the statement of net position. 9,071,772
OPEB related deferrals are reported as deferred outflows and inflows of resources on the statement of net position. 2,946,795
Other long-term assets are not available to pay for the current period expenditures and, therefore, are reported as unavailable revenue in the funds. 536,329 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds.

Net Pension Liability (28,587,243)
Net OPEB Liability (13,926,020)
Compensated Absences (2,572,121)
IT Subscription Liability (965,055)
Long-Term Debt (13,632,977)
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. (163,333)
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 statement of net position. 51,170 Adjustments for internal service funds are necessary to "close" those funds by charging additional amounts to participating business-type activities to completely cover the internal service funds' costs for the year. 54,871
Net Position of Governmental Activities $ 210,696,753

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123

CITY OF LOS BANOS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(23)
Capital
Projects Fund CDBG Nonmajor Total Impact Public Encampment and Home Streets and Capital Governmental Governmental General Fees Safety Resolution Grants Roads Grants Funds Funds REVENUES Taxes: Property $ 12,363,034 $ - $ 2,002,958 $ - $ - $ - $ - $ - $ 14,365,992 Sales 10,436,794 3,923,682 - - - - 1,598,533 - 15,959,009 Franchise 699,912 - - - - - - - 699,912 Other 698,168 - - - - - - - 698,168 Licenses and Permits 1,523,273 - - - - - - 1,523,273 -
Intergovernmental 484,862 1,810,225 211,256 264,028 - - 3,371,560 - 6,141,931 Charges for Services 2,229,990 3,076,526 8,661 - - - 3,932,449 - 9,247,626 Fines 31,304 - - - - - - - 31,304 Use of Property and Money 2,675,213 1,427,892 428,909 306,421 - - - 1,009,737 5,848,172 Miscellaneous 320,414 316,065 167,058 - - - - 2,497 806,034 Total Revenues 31,462,964 6,630,708 6,742,524 570,449 - - - 9,914,776 55,321,421 EXPENDITURES Current: General Government 1,723,461 246,418 - - - - - 1,969,879 - Public Safety 18,609,914 4,367,730 - - - - - 22,977,644 - Highways and Streets 245,836 71,378 - - - - 1,502,682 - 1,819,896 Parks and Recreation 3,080,298 - - - - - - 3,008,175 6,088,473 Economic Development 1,906,240 - - 264,028 - - - 258,247 2,428,515 Debt Service: Principal 26,403 - 367,023 - - - - - 393,426 Interest and Fiscal Charges - - 303,963 - - - - - 303,963 Capital Outlay: General Government 3,546,795 340,606 - - - - - 3,887,401 - Public Safety 2,034,600 525,506 131,417 - - - - 212,160 2,903,683 Highways and Streets 2,752,195 - - - - - 2,255,726 - 5,007,921 Parks and Recreation 683,340 2,767,266 - - - - - 943,886 4,394,492 Economic Development 398,713 - - - - - - - 398,713 Total Expenditures 32,255,600 6,703,369 5,170,133 264,028 - - - 8,180,876 52,574,006 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (792,636) (72,661) 1,572,391 306,421 - - - 1,733,900 2,747,415 OTHER FINANCING SOURCES (USES) - Proceeds from Sale of Capital Assets 24,751 10,296 - - - - - 158 35,205 Issuance of SBITAs 943,406 - - - - - - - 943,406 Transfers In 898,146 - - - - - - 237,000 1,135,146 Transfers Out (526,736) - - - - - (898,146) - (1,424,882) Total Other Financing
Sources (Uses) 1,339,567 10,296 - - - - - (660,988) 688,875 NET CHANGE IN FUND BALANCES 546,931 (62,365) 1,572,391 306,421 - - - 1,072,912 3,436,290 Fund Balances - Beginning, as Originally Reported 43,815,854 32,609,789 9,831,367 837,459 - 8,244,533 6,412,622 1,458,307 103,209,931 Adjustment / Restatement - - - (837,459) - (8,244,533) (6,412,622) 15,494,614 - Fund Balances - Beginning of Year, as Adjusted or Restated 43,815,854 32,609,789 9,831,367 - - - 16,952,921 - 103,209,931 FUND BALANCES - END OF YEAR $ 44,362,785 $ 32,547,424 $ 11,403,758 $ 306,421 $ - $ - $ 18,025,833 - $ $ 106,646,221 Special Revenue Funds

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CITY OF LOS BANOS

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(24)
Net Change in Fund Balances - Total Governmental Funds $ 3,436,290 Amounts reported for governmental activities in the statement of activities are different because:

Government 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. 16,054,948 Depreciation and amortization expense is deducted from the fund balance. (7,720,886) Net effect of various miscellaneous transactions involving capital assets (donations of assets). 12,612,032
Debt proceeds provide current financial resources for governmental funds, but issuing debt increases long-term liabilities in the statement of net position.

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Also, governmental funds report the effect of premiums and discounts when debt is first issued. These amounts are deferred and amortized in the statement of activities.

Principal Payments on Ibank Financing Lease 367,023
Subscriptions (943,406)
Principal Payments on Subscriptions Payable 26,403
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. (4,607,577) 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. (575,976) 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 (1,609,402)
Compensated Absences 424,276
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. 597,509 Change in Net Position of Governmental Activities $ 18,061,234

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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 the Water, Wastewater, and Solid Waste enterprise funds as major funds in fiscal year 2025.

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 (NONMAJOR)
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

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126

CITY OF LOS BANOS

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(26)
Governmental
Activities
Internal
(Nonmajor)
Water Wastewater Airport Solid Waste Total Service Funds ASSETS

CURRENT ASSETS
Cash and Investments $ 34,631,164 $ 15,740,375 $ 809,933 $ 5,264,748 $ 56,446,220 $ 475,012 Restricted Cash and Investments 15,246,849 13,757,134 - 6,933,226 35,937,209 - Accounts Receivable 743,982 794,711 37,756 884,138 2,460,587 - Interest Receivable 144,003 81,020 2,571 32,883 260,477 3,154 Inventories 21,451 1,497 55,983 1,547 80,478 - Prepaid Items 473 740 - 473 1,686 267 Total Current Assets 50,787,922 30,375,477 906,243 13,117,015 95,186,657 478,433

NONCURRENT ASSETS
Capital Assets:

Land 760,822 7,306,844 - - 8,067,666 - Construction in Progress 398,917 4,180,657 - 113,699 4,693,273 947 Buildings and Improvements 407,980 9,200,291 669,767 63,149 10,341,187 127,225 Machinery and Equipment 7,160,616 4,096,667 451,584 3,220,685 14,929,552 1,665,393 Infrastructure 36,390,010 41,647,778 2,823,218 19,918 80,880,924 - Less: Accumulated Depreciation and Amortization (22,842,666) (29,141,548) (3,330,462) (1,936,083) (57,250,759) (1,354,453) Total Noncurrent Assets 22,275,679 37,290,689 614,107 1,481,368 61,661,843 439,112 Total Assets 73,063,601 67,666,166 1,520,350 14,598,383 156,848,500 917,545

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows from Pensions 375,685 290,057 - 257,936 923,678 137,319 Deferred Outflows from OPEB 500,588 469,014 - 363,765 1,333,367 161,524 Total Deferred Outflows of Resources 876,273 759,071 - 621,701 2,257,045 298,843

LIABILITIES

CURRENT LIABILITIES
Accounts Payable and Other Current Liabilities 343,458 924,311 5,451 654,804 1,928,024 153,537 Retainage Payable 10,852 139,282 - 836 150,970 - Unearned Revenue - 1,146 - - 1,146 - Deposits 848,360 5,000 3,580 - 856,940 - Compensated Absences 97,868 80,436 - 70,885 249,189 23,152 Total Current Liabilities 1,300,538 1,150,175 9,031 726,525 3,186,269 176,689

NONCURRENT LIABILITIES
Compensated Absences 192,987 162,527 - 195,155 550,669 27,204 Net Pension Liability 1,203,065 928,857 - 825,995 2,957,917 439,739 Net OPEB Liability 1,371,436 1,284,933 - 996,589 3,652,958 442,520 Landfill Closure and Postclosure Liability - - - 6,933,226 6,933,226 - Total Noncurrent Liabilities 2,767,488 2,376,317 - 8,950,965 14,094,770 909,463 Total Liabilities 4,068,026 3,526,492 9,031 9,677,490 17,281,039 1,086,152

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows from Pensions 30,588 23,616 - 21,001 75,205 11,181 Deferred Inflows from OPEB 210,388 197,117 - 152,884 560,389 67,885 Total Deferred Inflows of Resources 240,976 220,733 - 173,885 635,594 79,066

NET POSITION
Net Investment in Capital Assets 22,264,827 37,151,407 614,107 1,480,532 61,510,873 439,112 Restricted for Capital Projects 15,246,849 13,757,134 - - 29,003,983 - Restricted for Landfill Closure and Postclosure Costs - - - 6,933,226 6,933,226 - Unrestricted 32,119,196 13,769,471 897,212 (3,045,049) 43,740,830 (387,942) Total Net Position $ 69,630,872 $ 64,678,012 $ 1,511,319 $ 5,368,709 141,188,912 $ 51,170 Adjustment to Report the Cumulative Internal Balance for the Net Effect of the Activity Between the Internal Service Funds and the Enterprise Funds Over Time (54,871) Net Position of Business-Type Activities $ 141,134,041
Business-Type Activities - Enterprise Funds

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CITY OF LOS BANOS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(27)
Governmental
Activities
Internal
(Nonmajor)
Water Wastewater Airport Solid Waste Total Service Funds

OPERATING REVENUES
Water Charges $ 8,325,642 $ - $ - $ - $ 8,325,642 $ - Wastewater Charges - 8,185,940 - - 8,185,940 - Solid Waste Charges - - - 7,423,472 7,423,472 - Airport Charges - - 205,720 - 205,720 - Interdepartmental Charges - - - - - 4,177,581
Miscellaneous 161,395 13,911 297 12,508 188,111 1,693
Total Operating Revenues 8,487,037 8,199,851 206,017 7,435,980 24,328,885 4,179,274

OPERATING EXPENSES
Personnel Services 1,264,514 925,715 22,711 872,840 3,085,780 2,291,477 Contractual Services 1,068,757 1,106,675 26,959 4,135,067 6,337,458 263,760 Utilities 1,187,168 302,201 174,404 115,473 1,779,246 318,939 Repairs and Maintenance 647,490 764,154 51,254 448,322 1,911,220 842,170 Insurance 197,253 149,375 27,370 90,753 464,751 25,451
Other Supplies and Expenses 475,715 387,057 31,582 551,724 1,446,078 58,500 Depreciation and Amortization 1,264,883 1,390,128 99,154 283,603 3,037,768 80,093 Total Operating Expenses 6,105,780 5,025,305 433,434 6,497,782 18,062,301 3,880,390 OPERATING INCOME (LOSS) 2,381,257 3,174,546 (227,417) 938,198 6,266,584 298,884

NONOPERATING REVENUES (EXPENSES)
Investment Earnings 1,879,432 1,056,940 32,392 436,571 3,405,335 86,254 Rental Income - 6,053 103,030 - 109,083 -
Intergovernmental Revenue - - 55,000 31,084 86,084 211,356 Property Tax Revenue - - 8,292 - 8,292 - Gain (Loss) on Sale of Assets - 29,602 - - 29,602 1,015 Landfill Closure/Postclosure Change in Estimate - - - (237,665) (237,665) - Miscellaneous - 36,159 - - 36,159 - Total Nonoperating Revenues (Expenses) 1,879,432 1,128,754 198,714 229,990 3,436,890 298,625

INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 4,260,689 4,303,300 (28,703) 1,168,188 9,703,474 597,509

CONTRIBUTIONS AND TRANSFERS
Capital Contributions 1,456,320 1,104,120 - - 2,560,440 - Transfers 289,736 - - - 289,736 - Total Contributions and Transfers 1,746,056 1,104,120 - - 2,850,176 - CHANGE IN NET POSITION 6,006,745 5,407,420 (28,703) 1,168,188 12,553,650 597,509 Net Position - Beginning of Year, as originally reported 63,856,686 59,457,669 1,540,022 4,393,839 129,248,216 (516,200) Change in accounting principle (232,559) (187,077) - (193,318) (612,954) (30,139) Net Position - Beginning of Year, restated 63,624,127 59,270,592 1,540,022 4,200,521 128,635,262 (546,339) NET POSITION - END OF YEAR $ 69,630,872 $ 64,678,012 $ 1,511,319 $ 5,368,709 $ 51,170 Adjustments for the Net Effect of the Current Year Activity Between the Internal Service Funds and the Enterprise Funds - CHANGE IN NET POSITION OF BUSINESS-TYPE ACTIVITIES $ 12,553,650 Business-Type Activities - Enterprise Funds

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CITY OF LOS BANOS

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(28)
Governmental Activities
(Nonmajor) Internal Water Wastewater Airport Solid Waste Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users $ 8,145,819 $ 7,987,222 $ 215,249 $ 7,115,868 $ 23,464,158 $ - Receipts from Interfund Services Provided - - - - 4,179,274 - Payments to Suppliers (3,586,434) (2,705,633) (329,918) (5,180,329) (11,802,314) (1,508,554) Payments to or on Behalf of Employees for Services (2,363,765) (2,147,278) (22,711) (1,687,414) (6,221,168) (2,660,990) Net Cash Provided (Used) by
Operating Activities 2,195,620 3,134,311 (137,380) 248,125 5,440,676 9,730 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipts from Other Funds 289,736 - - - - Property Taxes and Grants Received - 36,159 63,292 31,084 130,535 211,356 Net Cash Provided by
Noncapital Financing Activities 289,736 36,159 63,292 31,084 130,535 211,356 CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal Payments on Subscription Liabilities - - - (9,153) (9,153) - Acquisition of Capital Assets (1,557,095) (2,964,705) (42,161) (908,326) (5,472,287) (137,262) Proceeds from the Sale of Assets - 29,602 - - 29,602 1,015 Net Cash Used by Capital
and Related Financing Activities (1,557,095) (2,935,103) (42,161) (917,479) (5,451,838) (136,247) CASH FROM INVESTING ACTIVITIES Rental Receipts - 6,053 103,030 109,083 - - Investment Earnings (Losses) 1,874,502 1,055,062 32,368 197,305 3,159,237 83,930 Net Cash Provided by
Investing Activities 1,874,502 1,061,115 135,398 197,305 3,268,320 83,930

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 2,802,763 1,296,482 19,149 (440,965) 3,387,693 168,769 Cash and Cash Equivalents - Beginning of Year 47,075,250 28,201,027 790,784 12,638,939 88,706,000 306,243 CASH AND CASH EQUIVALENTS - END OF YEAR $ 49,878,013 $ 29,497,509 $ 809,933 $ 12,197,974 $ 92,093,693 $ 475,012 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES Operating Income (Loss) $ 2,381,257 $ 3,174,546 $ (227,417) $ 938,198 $ 6,266,584 $ 298,884 Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization Expense 1,264,883 1,390,128 99,154 283,603 3,037,768 80,093 Landfill Closure/Postclosure Change in Estimate - - 162,497 - 162,497 - Changes in Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in: Accounts Receivable (297,606) (213,775) 9,232 (287,028) (789,177) - Inventories (10,111) (1,497) (18,349) (1,547) (31,504) - Prepaid Items 60 5,326 - 60 5,446 266 Deferred Outflows of Resources for Pensions 629,002 649,994 408,508 - 1,687,504 258,029 Deferred Outflows of Resources for OPEB 192,754 243,723 195,310 - 631,787 34,656 Increase (Decrease) in: Unearned Revenue - 1,146 - (33,084) (31,938) - Retainage Payable 10,852 61,935 - 836 73,623 - Customer Deposits (43,612) - - - (43,612) - Compensated Absences (59,456) (39,572) - (14,099) (113,127) (6,658) Net Pension Liability (1,341,115) (1,451,644) (861,650) - (3,654,409) (561,406) Net OPEB Liability (314,852) (448,524) (363,146) - (1,126,522) (34,611) Deferred Inflows of Resources for Pensions (104,559) (103,313) - (73,360) (281,232) (36,224) Deferred Inflows of Resources for OPEB (111,877) (134,162) (106,973) - (353,012) (23,299) Net Cash Provided (Used) by
Operating Activities $ 2,195,620 $ 3,134,311 $ (137,380) $ 248,125 $ 5,440,676 $ 9,730 SUPPLEMENTAL DISCLOSURE OF NONCASH CAPITAL AND FINANCIAL RELATED ACTIVITIES Capital Contributions $ 1,456,320 $ 1,104,120 $ - $ 2,560,440 - $ $ - Business-Type Activities - Enterprise Funds

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(29)

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.

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130

CITY OF LOS BANOS

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(30)
Los Banos
Redevelopment
Successor
Agency
Private-Purpose NSP Impound
Trust Fund Custodial Fund
ASSETS
Cash and Investments $ 1,251,033 $ 5,231
Accounts Receivable - 3,533
Loans Receivable 84,245 - Total Assets 1,335,278 8,764

LIABILITIES
Interest Payable 233,047 - Long-Term Liabilities:

Due Within One Year 1,242,794 - Due in More Than One Year 14,212,923 - Total Liabilities 15,688,764 - NET POSITION (DEFICIT) Restricted for:

Net Position (Deficit) Held in Trust for the Retirement of Obligations of the Redevelopment Successor Agency (14,353,486) - Individuals and Other Organizations - 8,764
Total Net Position (Deficit) $ (14,353,486) $ 8,764

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131

CITY OF LOS BANOS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(31)
Los Banos
Redevelopment
Successor
Agency
Private-Purpose NSP Impound
Trust Fund Custodial Fund
ADDITIONS:

Collections on Behalf of Others:

Property Taxes $ 1,934,779 $ -
Impound Collections - 22,293
Total Collections on Behalf of Others 1,934,779 22,293
Total Additions 1,934,779 22,293
DEDUCTIONS:

Administrative Expense 29,768 -
Interest Expense 688,945 - Payments of Property Insurance - 11,690 Payments of Property Taxes - 6,776
Total Deductions 718,713 18,466
CHANGES IN NET POSITION 1,216,066 3,827
Net Position - Beginning of Year (15,569,552) 4,937
NET POSITION - END OF YEAR $ (14,353,486) $ 8,764

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132

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(32)
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 accounting principles generally accepted in the United States of America, 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.

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133

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(33)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
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 nonmajor 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.

C. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to 10% of their fund-type total and 5% 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. These funds are restricted for use for the costs of improvements.

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.

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134

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(34)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Major Funds (Continued)
Encampment Resolution Fund
The Encampment Resolution Fund is a special revenue fund established to account for revenues and expenditures associated with the City’s participation in the State of California Encampment Resolution Fund (ERF) grant program. Resources in this fund are restricted for activities that support the resolution of homeless encampments and the transition of unsheltered individuals into safe and stable housing. All activity within the Encampment Resolution Fund is accounted for in accordance with the grant agreement, applicable state regulations, and generally accepted accounting principles.

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.

Solid Waste Fund
Accounts for activities associated with the collection and disposal of refuse throughout the City.

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.

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135

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 60 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.

Nonexchange 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.

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136

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Basis of Accounting (Continued)
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-inlieu 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.

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.

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137

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Net Position and Fund Balances
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.” 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.

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138

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Net Position and Fund Balances (Continued)
Restricted fund balances have external restrictions imposed by creditors, grantors, 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 decisionmaking 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.

F. 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.

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CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Property Tax Revenues (Continued)
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.

H. 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.

I. 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.

J. 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 straightline method over the following estimated useful lives:

Machinery and Equipment 3 to 20 Years
Buildings, Structures and Improvements 25 to 50 Years
Infrastructure 20 to 60 Years

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140

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued)
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.

K. 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.

L. 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 government-wide financial statements. Historically, the compensated absences liability for governmental activities has generally been liquidated by the General fund and other governmental funds.

The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave.

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141

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Inventory 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.

N. Subscription-Based Information Technology 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.

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.

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142

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) 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 SubscriptionBased Information Technology Arrangements (SBITAs) in accordance with GASB Statement No. 96 and should be read in conjunction with the accompanying financial statements.

O. 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).

P. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to pensions and other postemployment benefits. Deferred outflows on pension and other postemployment benefits are more fully discussed in Note 11 and Note 12.

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143

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements. The City’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Note 11 and 12.

Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues for property taxes, grants, and special assessments. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available.

Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Los Banos’ (City) California Public Employees’ Retirement System (CalPERS) plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

R. 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.

Accounting principles generally accepted in the United States of America require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

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144

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Adoption of New Accounting Standards
GASB Statement No. 101, Compensated Absences
In June of 2022, the GASB issued GASB Statement No. 101, Compensated Absences.

This standard requires that liabilities for compensated absences be recognized for leave that has not been used and leave that has been used but has not yet been paid. The City adopted the requirements of the guidance effective July 1, 2024, and has applied the provision of this standard to the beginning of the period of adoption.

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, Internal Service 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, 2025.

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. Refer to Note 15 for further disclosures relating to the Redevelopment Successor Agency.

Fiduciary Funds:

Redevelopment Successor Agency $ (14,353,486)
Internal Service Funds:

Fleet Maintenance (304,296)
Information Technology (32,423)

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145

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(45)
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 150% 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 accounting principles generally accepted in the United States of America. 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.

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146

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(46)
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 $ 173,945,521
Imprest Cash 3,750
Restricted Cash and Investments 35,937,209
Cash and Investments in Primary Government 209,886,480 Fiduciary Funds:

Cash and Investments 1,256,264
Total Cash and Investments $ 211,142,744
Cash and investments as of June 30, 2025, consisted of the following:

Cash on Hand and in Bank $ 29,117,252
Investments 182,025,492
Total Cash and Investments $ 211,142,744
Restricted cash and investments of $29,003,983 are held in the Water and Wastewater Enterprise Funds for future infrastructure impacted by development.

Restricted cash and investments of $6,933,226 are held in the Solid Waste Enterprise Fund to pay for landfill closure and postclosure costs.

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.

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147

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(47)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
C. Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Nonnegotiable 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 by 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 Type 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
Prefunded Municipal Obligations None AAA
Investment Agreements N/A AA
Unsecured Certificates of Deposit 30 Days A-1
CalTrust None N/A

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148

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(48)
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:
12 Months 13 to 24 25 to 36 More Than
Investment Type of Less Months Months 36 Months Total
Held by City:

State Local Agency Investment Fund $ 65,821,994 $ - $ - $ - $ 65,821,994 Money Market Mutual Funds 116,203,498 - - - 116,203,498 Total Investments $ 182,025,492 $ - $ - $ 182,025,492 - Cash on Hand and in Bank 29,117,252 Total Cash and Investments $ 211,142,744
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, 2025, these investments matured in an average of 217 days.

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, 2025, were provided by Standard and Poor’s investment rating system. The Local Agency Investment Fund was not rated as of June 30, 2025.

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149

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(49)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
F. Credit Risk (Continued)
Investment Type AAAm Total
Held by City:

Money Market Mutual Funds $ 116,203,498 $ 116,203,498
Total $ 116,203,498 116,203,498
Note Rated:

State Local Agency Investment Fund 65,821,994
Cash on Hand and in Banks 29,117,252
Total Cash and Investments $ 211,142,744
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, 2025, 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., broker-dealer) 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, 2025, the carrying amount of the City’s bank deposits was $29,113,502 and the respective bank balances totaled $29,892,776. 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.

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150

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(50)
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 $65,821,994, 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: valued at $116,203,498. 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. Interfund Transfers
The following schedule summarizes the City’s transfer activity for the year ended June 30, 2025:

Amount
Fund Making Transfer Fund Receiving Transfer Transferred General Fund Water Fund $ 289,736
General Fund Nonmajor Government Funds 237,000
Nonmajor Government Funds General Fund 898,146
$ 1,424,882

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151

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(51)
NOTE 5 LOANS RECEIVABLE
At June 30, 2025, the City had the following loans receivable:

Outstanding
Balance as of
June 30, 2025
Governmental Activities:

Residential Rehabilitation Program $ 744,328
First-Time Home Buyer Program 494,269
Neighborhood Stabilization Program 439,328
Total $ 1,677,925
A. Residential Rehabilitation Program
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, 2025, outstanding loans of this program amounted to $744,328.

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, 2025, outstanding loans of this program amounted to $494,269.

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152

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(52)
NOTE 5 LOANS RECEIVABLE (CONTINUED)
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, 2025, loans outstanding totaled $439,328.

NOTE 6 CAPITAL ASSETS
A. Governmental Activities
Capital assets activity of the governmental activities for the year ended June 30, 2025, was as follows:

Balance Transfers/ Balance
June 30, 2024 Additions Deletions Reclassifications June 30, 2025 Governmental Activities:

Capital Assets, Not Being Depreciated or Amortized:

Land $ 32,160,818 $ 8,086,956 $ - $ 40,247,774 - $
Construction in Progress 3,577,116 10,172,192 (2,354,584) - 11,394,724 Total Capital Assets, Not Being
Depreciated or Amortized 35,737,934 18,259,148 (2,354,584) - 51,642,498 Capital Assets, Being Depreciated and Amortized:

Buildings, Structures, and Improvements 48,886,126 661,599 - 398,964 49,946,689 Machinery and Equipment 24,478,256 2,920,190 (592,035) 760,124 27,566,535 Infrastructure 157,834,471 6,110,707 1,195,496 - 165,140,674 Right-to-Use IT Subscription 72,733 943,406 - - 1,016,139 Total Capital Assets, Being
Depreciated and Amortized 231,271,586 10,635,902 (592,035) 2,354,584 243,670,037 Less Accumulated Depreciation and Amortization:

Buildings, Structures, and Improvements (9,755,663) (1,299,310) - (11,054,973) - Machinery and Equipment (15,085,366) (1,869,477) 588,443 (16,366,400) - Infrastructure (111,558,632) (4,609,224) - (116,167,856) - Right-to-Use IT Subscription (24,882) (22,968) - - (47,850) Total Accumulated Depreciation
and Amortization (136,424,543) (7,800,979) 588,443 (143,637,079) - Total Capital Assets, Being Depreciated and Amortized, Net 94,847,043 2,834,923 (3,592) 2,354,584 100,032,958 Total Governmental Activities
Capital Assets, Net $ 130,584,977 $ 21,094,071 $ (3,592) $ 151,675,456 - $

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153

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(53)
NOTE 6 CAPITAL ASSETS (CONTINUED)
B. Business-Type Activities
Capital assets activity of the business-type activities for the year ended June 30, 2025, was as follows: Balance Transfers/ Balance
June 30, 2024 Additions Deletions Reclassifications June 30, 2025 Business-Type Activities:

Capital Assets, Not Being Depreciated or Amortized: Land $ 8,067,666 $ - $ - $ - $ 8,067,666 Construction in Progress 2,316,502 3,857,122 (1,480,351) - 4,693,273 Total Capital Assets, Not Being
Depreciated or Amortized 10,384,168 3,857,122 (1,480,351) - 12,760,939 Capital Assets, Being Depreciated and Amortized:

Buildings, Structures, and Improvements 10,185,032 156,155 - 10,341,187 - Machinery and Equipment 13,358,750 1,620,600 (92,459) 14,886,891 - Infrastructure 76,779,405 2,663,829 1,480,351 - 80,923,585 Right-to-Use IT Subscription 13,854 - (13,854) - - Total Capital Assets, Being Depreciated and Amortized 100,337,041 4,440,584 (106,313) 1,480,351 106,151,663 Less Accumulated Depreciation and Amortization:

Buildings, Structures, and Improvements (9,884,168) (23,880) - (9,908,048) - Machinery and Equipment (9,011,805) (960,673) 92,459 (9,880,019) - Infrastructure (35,409,477) (2,053,215) - (37,462,692) - Right-to-Use IT Subscription (4,740) - 4,740 - - Total Accumulated Depreciation and Amortization (54,310,190) (3,037,768) 97,199 (57,250,759) - Total Capital Assets, Being Depreciated and Amortized, Net 46,026,851 1,402,816 (9,114) 1,480,351 48,900,904 Total Business-Type Activities
Capital Assets, Net $ 56,411,019 $ 5,259,938 $ (9,114) $ 61,661,843 - $ C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows for the year ended June 30, 2025:

Governmental Activities:

General Government $ 202,177
Public Safety 1,780,350
Economic Development 55,828
Parks and Recreation 1,596,728
Highways and Streets 4,085,803
Internal Service Fund 80,093
Total Governmental Activities $ 7,800,979
Business-Type Activities:

Water $ 1,264,883
Wastewater 1,390,128
Airport 99,154
Solid Waste 283,603
Total Business-Type Activities $ 3,037,768

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154

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(54)
NOTE 7 SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAS)

AS A LESSEE
The City has entered into various long-term, noncancellable subscription-based information technology agreements. Total future minimum lease payments under these agreements are as follows:

Fiscal Years
Ending June 30, Principal Interest Total
2026 $ 85,008 $ 71,977 $ 156,985
2027 68,789 64,031 132,820
2028 74,684 58,137 132,821
2029 81,084 51,737 132,821
2030 88,032 44,789 132,821
2031-2035 434,309 86,463 520,772
2036 - 2040 133,149 10,537 143,686
Total $ 965,055 $ 387,671 $ 1,352,726
SBITAs
NOTE 8 LONG-TERM DEBT
A. Current Year 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, 2025.

Original Restated
Issue Balance Balance Current
Amount June 30, 2024 Additions Retirements June 30, 2025 Portion Governmental Activities:

Direct Borrowings:

IT Subscription Liability $ 1,016,139 $ 48,052 $ 943,406 $ (26,403) $ 965,055 $ 85,008 IBank Financing Lease 14,000,000 14,000,000 (367,023) - 13,632,977 375,098 Compensated Absences 3,053,411 - (430,934) - 2,622,477 959,409 Total Governmental
Activities Debt $ 15,016,139 $ 17,101,463 $ 943,406 $ (824,360) $ 17,220,509 $ 1,419,515 The following is a summary of the long-term liabilities’ transactions of the City for business-type activities for the year ended June 30, 2025:

Original Restated
Issue Balance Balance Current
Amount June 30, 2024 Additions Retirements June 30, 2025 Portion Business-Type Activities:

Direct Borrowings:

IT Subscription Liability $ 46,162 $ 9,153 $ (9,153) - $ $ - $ - Compensated Absences 912,985 - (113,127) - 799,858 249,189 Total Business-Type
Activities Debt $ 46,162 $ 922,138 $ - $ (122,280) $ 799,858 $ 249,189 The beginning balances of compensated absences for both Governmental Activities and Business-Type Activities were restated in accordance with implementation of GASB Statement No. 101. The change in compensated absences is presented as a net amount.

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155

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(55)
NOTE 8 LONG-TERM DEBT (CONTINUED)
B. IBank Financing Lease
On December 6, 2021, the City entered into a financing lease with California Infrastructure and Economic Development Bank (IBank) 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.

As of June 30, 2025, 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 10 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 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 38,630 709,344
2029 400,403 270,216 670,619 37,448 708,067
2030 409,212 261,310 670,522 36,247 706,769
2031 - 2035 2,185,126 1,165,954 3,351,080 162,271 3,513,351 2036 - 2040 2,436,301 912,016 3,348,317 128,020 3,476,337 2041 - 2045 2,716,349 628,888 3,345,237 89,832 3,435,069 2046 - 2050 3,028,587 313,216 3,341,803 47,254 3,389,057 2051 - 2055 1,306,767 28,905 1,335,672 5,902 1,341,574
Total $ 13,632,977 $ 4,442,690 $ 18,075,667 $ 626,277 $ 18,701,944

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156

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(56)
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 this fiscal year. Clean closure is expected to begin in fiscal year 2027.

Most of the costs associated with closure and postclosure 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 2027-2028. Due to the change in construction materials, the City anticipates ongoing maintenance costs will be virtually eliminated and thus, they expect no annual costs.

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 $6,933,226 reported as landfill closure and postclosure care liability at June 30, 2025, represents the cumulative amount reported to date based on the use of 100% 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 postclosure costs which was approved by the State Water Resource Control Board. The June 30, 2025, financial statements reflect this updated estimate as it best reflects the City’s liability for these costs. At June 30, 2025, there is $6,933,226 restricted for closure and postclosure 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.

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157

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(57)
NOTE 10 NET POSITION AND FUND BALANCES
A. Fund Balances
Detailed classifications of the City’s fund balances as of June 30, 2025, are as follows:

Encampment Other
Impact Public Resolution Governmental
General Fees Safety Fund Funds Total
Fund Balance:

Nonspendable:

Items Not in
Spendable Form:

Prepaid Items $ 3,447 $ - $ - $ - $ - $ 3,447
Total
Nonspendable 3,447 - - - - 3,447
Restricted:

Public Safety - 11,403,758 - - 11,403,758 - Highways and Streets - - - 9,712,674 - 9,712,674 Parks and Recreation - - - 1,469,374 - 1,469,374
Development Projects - - 306,421 - 271,249 577,670
Capital Projects - - - 5,611,369 - 5,611,369
Economic Development 32,547,424 - - 961,167 - 33,508,591 Total Restricted 32,547,424 - 11,403,758 306,421 18,025,833 62,283,436 Committed:

Public Safety 200,960 - - - 200,960 - Police Station 8,000,000 - - - 8,000,000 - Economic Development 75,966 - - - - 75,966 Total Committed 8,276,926 - - - 8,276,926 - Assigned:

General Government 6,561,838 - - - 6,561,838 - Pension Reserve 2,000,000 - - - 2,000,000 - Total Assigned 8,561,838 - - - 8,561,838 - Unassigned 27,520,574 - - - 27,520,574 - Total Fund Balances $ 44,362,785 $ 32,547,424 $ 11,403,758 $ 306,421 $ 18,025,833 $ 106,646,221 B. Minimum Fund Balance Policy
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.

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158

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(58)
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 Multiemployer 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 GASB 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. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

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159

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(59)
NOTE 11 PENSION PLAN (CONTINUED)
A. General Information About the Pension Plan (Continued) Benefits Provided (Continued)
The rate plan provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous Miscellaneous Miscellaneous
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or After
Hire Date January 1, 2011 December 31, 2012 January 1, 2013 Benefit Formula 2.7% at 55 2% at 60 2% at 62
Benefit Vesting Schedule 5 Years Service 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 to 55 50 to 63 52 to 67
Monthly Benefits, as a Percentage
of Annual Salary 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 8.000% 7.000% 8.250% Required Employer Contribution Rates 16.870% 10.870% 8.000% Safety
Safety Safety PEPRA
1st Tier 2nd Tier Fire and Police
Prior to January 1, 2011 thru On or After
Hire Date January 1, 2013 December 31, 2012 January 1, 2013 Benefit Formula 3% at 50 3% at 55 2.7% at 57
Benefit Vesting Schedule 5 Years Service 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 to 55 50 to 57
Monthly Benefits, as a Percentage
of Annual Salary 3.0% 2.4% to 3.0% 2.0% to 2.7%
Required Employee Contribution Rates 9.000% 9.000% 14.500% Required Employer Contribution Rates 29.090% 24.790% 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.

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160

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(60)
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, 2025, were $1,874,455 for the miscellaneous plan and $2,240,503 for the Safety plan.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $15,749,924 for the miscellaneous plan and $16,234,975 for the safety plan.

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of the measurement dates ended June 30, 2025 and 2024, was as follows:

Miscellaneous Safety
Proportion - June 30, 2023 0.3178% 0.2213%
Proportion - June 30, 2024 0.3256% 0.2227%
Change - Increase (Decrease) 0.0078% 0.0014%

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161

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(61)
NOTE 11 PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2025, the City recognized pension expense of $2,902,417 for the miscellaneous plan and $3,776,873 for the safety plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources of Resources
Pension Contributions Subsequent
to the Measurement Date $ 2,093,934 $ - Changes of Assumptions 404,806 - Differences Between Actual and Expected Experience 1,361,725 53,134 Net Difference Between Projected and Actual Earning
on Plan Investments 906,703 - Change in Employer's Proportion 1,836 258,595 Differences Between the Employer's Actual Contributions and the Employer's Proportionate Share of Contributions 149,278 88,714 Total $ 4,918,282 $ 400,443
Deferred Deferred
Outflows of Inflows of
Resources of Resources
Pension Contributions Subsequent
to the Measurement Date $ 2,565,520 $ - Changes of Assumptions 399,996 - Differences Between Actual and Expected Experience 1,324,918 43,079 Net Difference Between Projected and Actual Earning
on Plan Investments 784,725 - Change in Employer's Proportion 522,256 - Differences Between the Employer's Actual Contributions and the Employer's Proportionate Share of Contributions 183,754 209,546 Total $ 5,781,169 $ 252,625
Safety
Miscellaneous
The City reported $2,093,934 for the miscellaneous plan and $2,565,520 for the safety plan as deferred outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ended June 30, 2026.

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162

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(62)
NOTE 11 PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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, Miscellaneous Safety
2026 $ 680,446 $ 1,208,459
2027 2,025,663 1,971,675
2028 28,514 51,389
2029 (310,718) (268,499)
2030 - - Thereafter - -
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, 2023, actuarial valuations were determined using the following actuarial assumptions:

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

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%
Derived Using CalPERS' Membership
Mortality Data for All Funds (1)
(1) 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.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023, 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 CalPERS website.

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163

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(63)
NOTE 11 PENSION PLAN (CONTINUED)
C. Actuarial Assumptions (Continued)
Change of Assumptions
There were no assumption changes in 2024. 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, CalPERS 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.

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164

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(64)
NOTE 11 PENSION PLAN (CONTINUED)
D. Discount Rate (Continued)
The expected real rates of return by asset class are as follows:

Long-Term
Expected Real
New Strategic Rate of
Asset Class Allocation Return (1, 2)
Global Equity - Cap-Weighted 30.0 % 4.54%
Global Equity - Noncap-Weighted 12.0 3.84%
Private Equity 13.0 7.28%
Treasury 5.0 0.27%
Mortgage-Backed Securities 5.0 0.50%
Investment Grade Corporates 10.0 1.56%
High Yield 5.0 2.27%
Emerging Market Debt 5.0 2.48%
Private Debt 5.0 3.57%
Real Assets 15.0 3.21%
Leverage (5.0) -0.59%
Total 100.0 %
(1) An expected inflation of 2.30% used for this period. (2) 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 1-percentage point higher than the current rate:
1% Decrease Current 1% Increase
Discount Rate Discount Rate Discount Rate
(5.90%) (6.90%) (7.90%)
Miscellaneous $ 23,951,899 $ 15,749,924 $ 8,998,491
Safety $ 25,980,863 $ 16,234,975 $ 8,264,209
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

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165

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(65)
NOTE 12 POSTEMPLOYMENT BENEFITS
A. Plan Description
The City administers the City Retirees Benefits Plan (OPEB Plan), an agent multiemployer defined benefit post-employment 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 Provided Medical Only
Required Service Age 50 w/10+ years of Service Age 50 w/10+ years of Service Age 50 w/10+ years of Service Age 50 w/10+ years of Service City pays all medical befits City pays all medical befits City pays all medical befits City pays all medical befits 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 prior 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, 2024, actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB plan:

Active Employees 201
Inactive Employees, Spouses, or Beneficiaries
Currently Receiving Benefit Payments 94
Inactive Employees Entitled to, but Not Yet
Receiving Benefits 19
Total 314
C. Contributions
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, 2025, the City’s cash contributions were $1,463,644 in payments to the trust and the estimated implied subsidy was $179,946 resulting in total payments of $1,643,590.

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166

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(66)
NOTE 12 POSTEMPLOYMENT BENEFITS (CONTINUED)
D. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024. The total OPEB liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified.

Actuarial Assumptions:

Discount Rate 6.25%
General Inflation 2.50%
Salary Increases 2.75% Annually, in Aggregate
Investment Rate of Return 6.25%
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Mortality Projected Fully Generational with Scale MP-2021
Healthcare Cost Trend Rates 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
PEMHCA Minimum Increases 3.50% Annually
Healthcare Participation for Future Retirees Eligible for Supplemental Benefits - 90% Eligible for PEMHCA Minimum Only - 50%
Changes of Assumptions:
(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:

Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global Equities 49.00 % 4.56 %
Fixed Income 23.00 1.56 %
TIPS 5.00 (0.08)%
Commodities 3.00 1.22 %
REITs 20.00 4.06 %
Total 100.00 %
Assumed Long-Term Rate of Inflation 2.50 %
Expected Long-Term Net Rate of Return, Rounded 6.25 %

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167

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(67)
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:

Total OPEB OPEB Fiduciary Net OPEB
Liability Net Position Liability
Balance - Beginning of Year $ 33,635,804 $ 15,040,744 $ 18,595,060 Changes for the Period:

Service Cost 640,958 - 640,958
Interest on Total OPEB Liability 2,101,924 - 2,101,924
Difference Between Expected
and Actual Experience - - - Assumption Changes - - - Contributions:

Employer - City's Contribution - 1,675,191 (1,675,191)
Net Investment Income - 1,650,445 (1,650,445)
Benefit Payments, (1,291,981) (1,291,981) -
Including Refunds of
Employee Contributions - - -
Implicit Rate Subsidy Fulfilled - - - Administrative Expenses - (9,192) 9,192 Net Changes 1,450,901 2,024,463 (573,562)
Balance - End of Year $ 35,086,705 $ 17,065,207 $ 18,021,498 Increase (Decrease)
Historically, the OPEB 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 The following presents the net OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate, for measurement period ended June 30, 2024:
1% Decrease Current 1% Increase
Discount Rate Discount Rate Discount Rate
(5.25%) (6.25%) (7.25%)
Net OPEB Liability $ 22,599,261 $ 18,021,498 $ 14,241,328

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CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(68)
NOTE 12 POSTEMPLOYMENT 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 1-percentage-point lower or 1-percentage-point higher than the current rate, for measurement period ended June 30, 2024:

Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Liability $ 13,591,325 $ 18,021,498 $ 23,467,135 I. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized an OPEB expense of $1,873,399. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB Contributions Subsequent to the Measurement Date $ 2,168,424 $ - Changes of Assumptions 2,293,324 - Differences Between Actual and Expected Experience 1,978,156 2,764,621 Net Difference Between Projected and Actual
Earning on OPEB Plan Investments 138,129 - Total $ 6,578,033 $ 2,764,621 The $2,168,424 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Year Ending June 30,
2026 $ 29
2027 439,380
2028 6,460
2029 33,599
2030 368,970
Thereafter 796,550

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169

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(69)
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 the 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 workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula, which among other expenses, charges the City’s account for liability losses under $1,000,000 and workers’ 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 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 three to four 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, California 95833.

NOTE 14 COMMITMENTS AND CONTINGENCIES
At June 30, 2025, the City had construction commitments outstanding of approximately $13,294,337.

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.

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170

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(70)
NOTE 14 COMMITMENTS AND CONTINGENCIES (CONTINUED)
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.

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, 2025, is as follows:

Cash and Investments $ 1,251,033
Total Cash and Investments $ 1,251,033

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171

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(71)
NOTE 15 LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
B. Receivables
A reconciliation of the Los Banos Redevelopment Successor Agency Private Purpose Trust Fund’s receivable balances as of June 30, 2025, is as follows:

Outstanding
Balance as of
June 30, 2025
Loan Receivables:

Commercial Micro-Enterprise Program $ 84,245
Total Receivables $ 84,245
C. Commercial Micro-Enterprise Program
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, 2025, outstanding loans of this program amounted to $84,245.

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, 2025:

Balance Balance Current
June 30, 2024 Additions Retirements June 30, 2025 Portion Direct Borrowings and Direct Placements:
2014 Tax Allocation Refunding Bonds $ 16,646,183 $ (1,190,466) - $ $ 15,455,717 $ 1,242,794 Total Long-Term Debt $ 16,646,183 $ (1,190,466) - $ $ 15,455,717 $ 1,242,794 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 semiannually 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.

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172

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(72)
NOTE 15 LOS BANOS REDEVELOPMENT SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
E. 2014 Tax Allocation Refunding Bonds (Continued)
The following is a schedule of the future estimated minimum payments related to the 2014 Bonds at June 30, 2025:

Principal Interest Total
For the Years Ending June 30, Component Component Payments 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 1,480,376 410,699 1,891,075
2031 - 2035 7,835,408 1,086,700 8,922,108
2036 - 2040 825,907 17,344 843,251
Total $ 15,455,717 $ 3,734,297 $ 19,190,014
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.

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.

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173

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(73)
NOTE 16 RESTATEMENT OF BEGINNING FUND BALANCE/ NET POSITION A. Changes to or within Financial Reporting Entity
Change in Fund Presentation from Major to Nonmajor
The Community Development Block Grant (CDBG) and HOME Grants Special Revenue Fund, the Streets and Roads Special Revenue Fund, and the Capital Projects Fund, presented as major funds in the prior year, are now presented as nonmajor funds, as they no longer meet the criteria to be major funds during the year.

The impact of the adjustment on the fund balance of the fund financial statements as previously reported is presented below.

Change to or
Within the
June 30, 2024 Financial
As Previously Reporting June 30, 2024
Reported Entity As Adjusted
Governmental Funds:

Major Funds:

General Fund $ 43,815,854 $ 43,815,854 - $
Impact Fees 32,609,789 - 32,609,789
Public Safety 9,831,367 - 9,831,367
Encampment Resolution - - - CDBG and Home Grants 837,459 (837,459) - Streets and Roads 8,244,533 (8,244,533) - Capital Projects Fund 6,412,622 (6,412,622) - Nonmajor Funds 1,458,307 15,494,614 16,952,921 Total Governmental Funds 103,209,931 $ $ 103,209,931 - $

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174

CITY OF LOS BANOS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(74)
NOTE 16 RESTATEMENT OF BEGINNING FUND BALANCE/ NET POSITION (CONTINUED) B. Change in Accounting Principle
During the current year, management recorded a prior period adjustment, restating beginning net position for governmental activities for the implementation of GASB Statement No. 101, Compensated Absences. The impact of the restatement and adjustments on the financial statements is presented below.

June 30, 2024 Change in
As Previously Accounting June 30, 2024
Reported Principle As Restated
Government-Wide
Governmental Activities $ 194,577,774 $ (1,942,255) $ 192,635,519 Business-Type Activities 129,193,345 (612,954) 128,580,391 Total Primary Government $ 323,771,119 $ (2,555,209) $ 321,215,910 Proprietary Funds
Major Enterprise Funds:

Water 63,856,686 (232,559) 63,624,127
Wastewater 59,457,669 (187,077) 59,270,592
Solid Waste 4,393,839 (193,318) 4,200,521
Nonmajor Enterprise Fund 1,540,022 1,540,022 -
Internal Service Funds (516,200) (30,139) (546,339)
Total Proprietary Funds $ 128,732,016 $ (643,093) $ 128,088,923 NOTE 17 SUBSEQUENT EVENT
As of June 30, 2025, the City’s liability for closure and post-closure care costs associated with its old landfill was recorded at $6,933,226 based on the approved closure plan and direction from City Council in place at that time.

Subsequent to year end, on July 16, 2025, the City’s Public Works Department presented City Council with an option to change the closure plan from the previously approved method to a “clean closure.” The engineer’s cost estimate for this alternative method is $16,819,334.

City Council approved this recommendation on July 16, 2025, and on September 8, 2025, the State Water Resources Control Board issued a letter formally approving the clean closure method.

The adoption of the clean closure plan and its approval by the State represent a significant subsequent event. The City will be required to revise its estimate of the landfill closure liability in the fiscal year ending June 30, 2026, to reflect the newly approved closure plan.

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175
(75)

REQUIRED SUPPLEMENTARY INFORMATION

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176

CITY OF LOS BANOS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – GENERAL FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Budgetary Comparison Schedules. (76)
Variance with
Original Final Actual Final Budget

REVENUES
Taxes:

Property $ 690,661 $ 11,401,607 $ 12,363,034 $ 961,427
Sales 10,988,187 10,988,187 10,436,794 (551,393)
Franchise 727,534 727,534 699,912 (27,622)
Other 623,384 623,384 698,168 74,784
Licenses and Permits 1,463,880 2,248,880 1,523,273 (725,607) Intergovernmental 276,243 640,281 484,862 (155,419)
Charges for Services 2,080,242 2,080,242 2,229,990 149,748 Fines 40,000 40,000 31,304 (8,696)
Use of Property and Money 1,873,338 1,881,675 2,675,213 793,538 Miscellaneous 100,250 147,237 320,414 173,177
Total Revenues 18,863,719 30,779,027 31,462,964 683,937

EXPENDITURES
Current:

General Government:

Administration 1,862,914 2,174,990 1,723,461 451,529
Total General Government 1,862,914 2,174,990 1,723,461 451,529 Public Safety:

Police 13,608,938 14,233,020 13,213,406 1,019,614
Fire 3,093,748 3,232,977 2,900,223 332,754
Building 741,648 1,251,843 1,092,008 159,835
Code Enforcement 927,775 1,233,599 1,169,351 64,248
Contingency 575,000 343,800 234,926 108,874
Total Public Safety 18,947,109 20,295,239 18,609,914 1,685,325 Highways and Streets:

Engineering 569,319 570,197 245,836 324,361
Total Highway and Streets 569,319 570,197 245,836 324,361 Parks and Recreation:

Recreation 1,834,604 2,083,361 1,681,021 402,340
Maintenance 1,289,379 1,457,242 1,399,277 57,965
Total Parks and Recreation 3,123,983 3,540,603 3,080,298 460,305 Economic Development:

Community Development 2,393,620 2,725,414 1,906,240 819,174 Total Economic Development 2,393,620 2,725,414 1,906,240 819,174 Debt Service:

Principal - - 26,403 (26,403)
Interest and Fiscal Charges - - - - Total Debt Service - - 26,403 (26,403) Capital Outlay 7,437,120 9,110,306 6,663,448 2,446,858 Total Expenditures 34,334,065 38,416,749 32,255,600 6,161,149 Budgeted Amount

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177

CITY OF LOS BANOS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Budgetary Comparison Schedules. (77)
Variance with
Original Final Actual Final Budget

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES $ (15,470,346) $ (7,637,722) $ (792,636) $ 6,845,086

OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Capital Assets - - 24,751 24,751
Issuance of SBITA - - 943,406 943,406
Transfers In 1,556,000 - 898,146 (657,854) Transfers Out - (793,000) (526,736) 266,264 Total Other Financing
Sources (Uses) - 763,000 1,339,567 576,567
NET CHANGE IN FUND BALANCE $ (15,470,346) $ (6,874,722) 546,931 $ 7,421,653 Fund Balance - Beginning of Year 43,815,854
FUND BALANCE - END OF YEAR $ 44,362,785
Budgeted Amount

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178

CITY OF LOS BANOS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Budgetary Comparison Schedules. (78)
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 1,244,000 $ 1,244,000 $ 1,810,225 $ 566,225 Charges for Services 990,742 990,742 3,076,526 2,085,784 Use of Property and Money 256,900 256,900 1,427,892 1,170,992 Miscellaneous 3,340,000 3,340,000 316,065 (3,023,935)
Total Revenues 5,831,642 5,831,642 6,630,708 799,066

EXPENDITURES
Current:

General Government:

Administration - - 246,418 (246,418)
Total General Government - - 246,418 (246,418)
Highways and Streets:

Road 80,000 182,000 71,378 110,622
Total Highway and Streets 80,000 182,000 71,378 110,622 Capital Outlay 10,825,581 14,046,879 6,385,573 7,661,306 Total Expenditures 10,905,581 14,228,879 6,703,369 7,525,510

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (5,073,939) (8,397,237) (72,661) 8,324,576

OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Capital Assets - - 10,296 10,296
Transfers Out (1,150,000) (1,150,000) 1,150,000 - Total Other Financing Sources (Uses) (1,150,000) (1,150,000) 10,296 1,160,296 NET CHANGE IN FUND BALANCE $ (6,223,939) $ (9,547,237) (62,365) $ 9,484,872 Fund Balance - Beginning of Year 32,609,789
FUND BALANCE - END OF YEAR $ 32,547,424
Budgeted Amount

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179

CITY OF LOS BANOS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – PUBLIC SAFETY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Budgetary Comparison Schedules. (79)
Variance with
Original Final Actual Final Budget

REVENUES
Taxes:

Property $ 1,695,770 $ 1,695,770 $ 2,002,958 $ 307,188
Sales 4,069,000 4,069,000 3,923,682 (145,318)
Intergovernmental 228,721 278,721 211,256 (67,465)
Charges for Services 12,500 12,500 8,661 (3,839)
Use of Property and Money 70,390 70,390 428,909 358,519 Miscellaneous - - 167,058 167,058
Total Revenues 6,076,381 6,126,381 6,742,524 616,143

EXPENDITURES
Current:

Public Safety:

Police 2,939,560 3,045,005 1,862,556 1,182,449
Fire 2,327,816 2,599,478 2,505,174 94,304
Total Public Safety 5,267,376 5,644,483 4,367,730 1,276,753 Debt Service:

Principal 367,023 367,023 367,023 -
Interest 303,963 303,963 303,963 - Total Debt Service 670,986 670,986 670,986 - Capital Outlay 614,287 502,798 131,417 371,381 Total Expenditures 6,552,649 6,818,267 5,170,133 1,648,134

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (476,268) (691,886) 1,572,391 2,264,277

OTHER FINANCING SOURCES (USES)
Transfers In 51,000 51,000 - (51,000)
Total Other Financing
Sources (Uses) 51,000 51,000 - (51,000)
NET CHANGE IN FUND BALANCE $ (425,268) $ (640,886) 1,572,391 $ 2,213,277 Budgeted Amount

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180

CITY OF LOS BANOS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – ENCAMPMENT RESOLUTION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
See accompanying Notes to Budgetary Comparison Schedules. (80)
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 11,842,621 $ 11,842,621 $ 264,028 $ (11,578,593) Use of Property and Money - - 306,421 306,421
Total Revenues 11,842,621 11,842,621 570,449 (11,272,172)

EXPENDITURES
Current:

Economic Development 3,947,541 3,947,541 264,028 3,683,513 Total Economic Development 3,947,541 3,947,541 264,028 3,683,513 Total Expenditures 3,947,541 3,947,541 264,028 3,683,513 NET CHANGE IN FUND BALANCE $ 7,895,080 $ 7,895,080 306,421 $ (7,588,659) Fund Balance - Beginning of Year - FUND BALANCE - END OF YEAR $ 306,421 Budgeted Amount

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181

CITY OF LOS BANOS

NOTES TO BUDGETARY COMPARISON SCHEDULES
JUNE 30, 2025
(81)
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, 2025:

General Fund
Current:

Debt Service:

Principal $ (26,403)
Impact Fees Special Revenue Fund
Current:

General Government:

Administration $ (246,418)

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CITY OF LOS BANOS

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY

COST-SHARING MULTIEMPLOYER PLAN
YEAR ENDED JUNE 30, 2025
LAST 10 FISCAL YEARS
(82)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Miscellaneous
Proportion of the Net Pension Liability 0.3180 % 0.3027 % 0.2991 % 0.3021 % 0.3011 % 0.3014 % 0.4054 % 0.3189 % 0.3178 % 0.3256 % Proportionate Share of the Net
Pension Liability $ 8,725,054 $ 10,516,544 $ 11,791,053 $ 11,384,846 $ 12,056,622 $ 12,712,755 $ 7,697,899 $ 14,922,894 $ 15,891,194 $ 15,749,924 Covered Payroll $ 3,749,183 $ 3,753,666 $ 4,075,774 $ 4,802,763 $ 4,554,209 $ 4,949,452 $ 4,818,716 $ 5,024,486 $ 5,204,408 $ 6,081,959 Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 232.72 % 280.17 % 289.30 % 237.05 % 264.74 % 256.85 % 159.75 % 297.00 % 305.34 % 258.96 % Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 79.89 % 75.87 % 75.39 % 77.69 % 77.73 % 77.71 % 90.49 % 78.19 % 77.97 % 79.91 % Safety
Proportion of the Net Pension Liability 0.1907 % 0.1830 % 0.1779 % 0.1774 % 0.1763 % 0.1844 % 0.1873 % 0.2144 % 0.2213 % 0.2227 % Proportionate Share of the Net
Pension Liability $ 7,856,953 $ 9,477,619 $ 10,628,471 $ 10,411,919 $ 11,007,341 $ 12,285,170 $ 6,572,012 $ 14,730,391 $ 16,540,835 $ 16,234,975 Covered Payroll $ 4,325,959 $ 4,521,222 $ 4,976,876 $ 4,634,693 $ 5,441,336 $ 5,730,821 $ 5,646,403 $ 5,685,479 $ 6,220,736 $ 7,451,709 Proportionate Share of the Net
Pension Liability as a Percentage of
Covered Payroll 181.62 % 209.63 % 213.56 % 224.65 % 202.29 % 214.37 % 116.39 % 259.09 % 265.90 % 217.87 % Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 77.27 % 72.69 % 71.74 % 73.39 % 73.37 % 73.12 % 86.61 % 75.53 % 74.87 % 76.66 % Notes to Schedule
Changes in Benefit Terms:

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 liability is included in the pool's differences between expected and actual experience.

Changes in Assumptions:

None.

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183

CITY OF LOS BANOS

SCHEDULE OF CONTRIBUTIONS

COST-SHARING MULTIEMPLOYER PLAN
YEAR ENDED JUNE 30, 2025
LAST 10 YEARS
(83)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Miscellaneous
Actuarially Required Contribution
(Actuarially Determined) $ 1,132,224 $ 1,234,134 $ 1,322,739 $ 1,463,037 $ 1,372,577 $ 1,493,648 $ 1,604,336 $ 1,772,059 $ 1,874,455 $ 2,093,934 Contributions in Relation to the
Actuarially Determined Contributions 1,132,224 1,234,134 1,322,739 1,463,037 1,372,577 1,493,648 1,604,336 1,772,059 1,874,455 2,093,934 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 3,749,183 $ 3,753,666 $ 4,075,774 $ 4,802,763 $ 4,554,209 $ 4,949,452 $ 4,818,716 $ 5,024,486 $ 5,204,408 $ 6,081,959 Contributions as a Percentage
of Covered Payroll 30.20 % 32.88 % 32.45 % 30.46 % 30.14 % 30.18 % 33.29 % 35.27 % 36.02 % 34.43 % Safety
Actuarially Required Contribution
(Actuarially Determined) $ 1,306,406 $ 1,486,492 $ 1,615,180 $ 1,411,839 $ 1,639,945 $ 1,729,450 $ 1,879,905 $ 2,005,181 $ 2,240,503 $ 2,565,520 Contributions in Relation to the
Actuarially Determined Contributions 1,306,406 1,486,492 1,615,180 1,411,839 1,639,945 1,729,450 1,879,905 2,005,181 2,240,503 2,565,520 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 4,325,959 $ 4,521,222 $ 4,976,876 $ 4,634,693 $ 5,441,336 $ 5,730,821 $ 5,646,403 $ 5,685,479 $ 6,220,736 $ 7,451,709 Contributions as a Percentage
of Covered Payroll 30.20 % 32.88 % 32.45 % 30.46 % 30.14 % 30.18 % 33.29 % 35.27 % 36.02 % 34.43 %

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184

CITY OF LOS BANOS

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS

RETIREE HEALTHCARE PLAN (OPEB)
YEAR ENDED JUNE 30, 2025
LAST 10 YEARS
(84)
2018 2019 2020 2021 2022 2023 2024 2025
Total OPEB Liability:

Service Cost $ 948,983 $ 977,452 $ 821,453 $ 781,199 $ 804,635 $ 677,250 $ 675,278 $ 640,958 Interest on Total OPEB Liability 1,580,117 1,634,419 1,954,156 1,788,099 1,899,949 1,687,371 1,763,270 2,101,924 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) (1,112,035) Implicit Rate Subside (150,022) (150,022) (150,022) (100,000) (105,000) (104,000) (99,382) (179,946) 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 1,450,901 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 33,635,804 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 $ 35,086,705 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 $ 1,650,445 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 1,495,245 Employer - Implicit Subsidy 150,022 150,022 150,022 105,000 105,000 104,000 99,382 179,946 Administrative Expenses (2,512) (3,079) (1,614) (4,446) (4,017) (6,251) (7,855) (9,192) Benefit Payments, Including Refunds
of Employee Contributions (580,388) (685,805) (754,824) (784,836) (881,555) (950,036) (1,143,124) (1,112,035) Implicit Rate Subsidy Fulfilled (150,022) (150,022) (150,022) (100,000) (105,000) (104,000) (99,382) (179,946) 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 2,024,463 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 15,040,744 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 $ 17,065,207 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 $ 18,021,498 Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 24.82 % 28.46 % 34.89 % 38.08 % 54.88 % 48.80 % 44.72 % 48.64 % Covered-Employee Payroll (1) $ 9,057,433 $ 9,057,433 $ 9,306,512 $ 11,322,323 $ 11,563,678 $ 13,722,458 $ 14,824,737 $ 15,983,659 Net OPEB Liability as a Percentage
of Covered-Employee Payroll 197.45 % 209.09 % 182.96 % 152.23 % 104.75 % 105.07 % 125.43 % 112.75 % Notes to Schedule
*Schedule is intended to show information for 10 years. Additional information will be displayed as it becomes available. (1) Covered-employee payroll is not based on measure of pay.

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185

CITY OF LOS BANOS

SCHEDULE OF CONTRIBUTIONS

RETIREE HEALTHCARE PLAN (OPEB)
YEAR ENDED JUNE 30, 2025
LAST 10 YEARS
(85)
2018 2019 2020 2021 2022 2023 2024 2025
Actuarially Required Contribution
(Actuarially Determined) $ 1,997,107 $ 2,115,559 $ 1,871,790 $ 1,906,609 $ 1,938,870 $ 1,555,716 $ 1,571,519 $ 1,894,937 Contributions in Relation to the
Actuarially Determined Contributions (1,230,926) (1,998,107) (2,056,758) (2,211,055) (2,045,389) (1,667,576) (1,675,191) (2,168,424) Contribution Deficiency (Excess) $ 766,181 $ 117,452 $ (184,968) $ (304,446) $ (106,519) $ (111,860) $ (103,672) $ (273,487) Covered-Employee Payroll $ 9,057,433 $ 9,306,512 $ 11,322,323 $ 11,563,678 $ 13,722,458 $ 14,824,737 $ 15,983,659 $ 15,873,428 Contributions as a Percentage
of Covered-Employee Payroll 13.59 % 21.47 % 18.17 % 19.12 % 14.91 % 11.25 % 10.48 % 13.66 % Notes to Schedule
Methods and Assumptions Used to Determine Contributions:

Actuarial Cost Method Entry-Age Normal, Level Percent of Pay Amortization Method Level Percent of Pay
Amortization Period 23-Year Closed Period for 2024/25
Inflation 2.50%
Assumed Payroll Growth 2.75% Annually
Health Trend Rates 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 Investment Rate of Return 6.25%
Retirement Age 50 Years
Mortality CalPERS 2000-2019 Experience Study
*Schedule is intended to show information for 10 years. Additional information will be displayed as it becomes available.

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186
(86)

COMBINING AND INDIVIDUAL FUND

FINANCIAL STATEMENTS AND SCHEDULES

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187
(87)

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

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 Partnerships 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.

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.

CMAQ GRANT
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 second 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.

BADGER FLAT PIONEER
The Badger Flat Pioneer Fund accounts for fees received under the Development Agreement between the City of Los Banos and Anderson Homes for the Quail Meadows – Villages at Stonecreek V project.

In lieu of constructing the Badger Flat Loop / Pioneer Connector Road improvements, the developer contributes a fee representing its proportionate share of the estimated design and construction costs, net of credits for excess right-of-way dedication. These revenues are legally restricted for the exclusive purpose of funding future design, construction, and related capital improvements for the roadway corridor. Resources may be accumulated over multiple fiscal years until sufficient funding is available or the City determines the timing and scope of the project.

CAPITAL PROJECTS FUND

CAPITAL GRANTS
This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

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188

CITY OF LOS BANOS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(88)
Capital
Projects Total
CDBG Fund Nonmajor
and Home Streets and Assessment CMAQ HCD Badger Flat Capital Governmental Grants Roads Districts Grant Grant Pioneer Grants Funds ASSETS
Cash and Investments $ 946,919 $ 8,954,998 $ 1,624,737 $ 20,134 $ 646,702 $ 270,372 $ 5,593,210 $ 18,057,072 Accounts Receivable 11,175 187 30,693 - - - - 42,055
Due From Other Governments 400,405 - - 400,405 - Taxes Receivable 337,486 - 144,222 - - - 481,708 - Interest Receivable 3,073 26,246 5,567 65 2,097 877 18,159 56,084 Loans Receivable 1,677,925 - - - - - 1,677,925 - Total Assets $ 2,639,092 $ 9,719,322 $ 1,805,219 $ 20,199 $ 648,799 $ 271,249 $ 5,611,369 $ 20,715,249

LIABILITIES
Accounts Payable $ - $ 29,625 $ 335,845 $ - $ 16,630 $ - $ 382,100 - $ Due to Other Governments 1,677,925 - - - - - - 1,677,925 Unearned Revenue - - - - 629,391 - - 629,391
Total Liabilities 1,677,925 29,625 335,845 646,021 - - 2,689,416 - FUND BALANCES Restricted 961,167 9,689,697 1,469,374 20,199 2,778 271,249 5,611,369 18,025,833 Total Fund Balances 961,167 9,689,697 1,469,374 20,199 2,778 271,249 5,611,369 18,025,833 Total Liabilities and
Fund Balances $ 2,639,092 $ 9,719,322 $ 1,805,219 $ 20,199 $ 648,799 $ 271,249 $ 5,611,369 $ 20,715,249 Special Revenue Funds

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189

CITY OF LOS BANOS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(89)
Capital
Projects Total
CDBG Fund Nonmajor
and Home Streets and Assessment CMAQ HCD Badger Flat Capital Governmental Grants Roads Districts Grant Grant Pioneer Grants Funds

REVENUES
Intergovernmental $ 3,231,183 - $ $ - $ - $ 140,377 $ - $ 3,371,560 - $ Taxes 1,598,533 - 1,598,533
Charges for Services - 3,664,247 - - - 268,202 3,932,449 - Use of Property and Money 240,671 372,266 73,813 854 10,033 3,047 309,053 1,009,737 Miscellaneous 907 1,590 - - - - - 2,497
Total Revenues 241,578 5,203,572 3,738,060 854 150,410 271,249 309,053 9,914,776

EXPENDITURES
Current:

Parks and Recreation - 3,008,175.00 - - - - 3,008,175 - Economic Development 117,870 - - - 140,377 - - 258,247 Highways and Streets 1,502,682 - - 1,502,682
Capital Outlay:

Public Safety - 212,160 212,160
Parks and Recreation - 943,886.00 - - - - - 943,886
Highways and Streets 2,255,726 - - - - - 2,255,726 - Total Expenditures 117,870 3,758,408 3,952,061 - 140,377 - 212,160 8,180,876

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 123,708 1,445,164 (214,001) 854 10,033 271,249 96,893 1,733,900

OTHER FINANCING SOURCES (USES)
Transfers In - - 225,000 - 12,000 - - 237,000
Transfers Out - - - - - - (898,146) (898,146)
Proceeds from sale of capital assets - - - 158 - - - 158 Total Other Financing
Sources (Uses) - - 225,000 158 12,000 - (898,146) (660,988) NET CHANGE IN FUND BALANCE 123,708 1,445,164 10,999 1,012 22,033 271,249 (801,253) 1,072,912 Fund Balance - Beginning of Year,
as Originally Reported - 1,458,375 - 19,187 (19,255) - 1,458,307 - Adjustment / Restatement 837,459 8,244,533 - - - 6,412,622 - 15,494,614 Fund Balance - Beginning of Year,
as Adjusted or Restated 837,459 8,244,533 1,458,375 19,187 (19,255) 6,412,622 - 16,952,921 FUND BALANCE - END OF YEAR $ 961,167 $ 9,689,697 $ 1,469,374 $ 20,199 $ 2,778 $ 271,249 $ 5,611,369 $ 18,025,833 Special Revenue Funds

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190

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT

AND HOME GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(90)
Variance with
Original Final Actual Final Budget

REVENUES
Use of Property and Money $ 1,500 $ 1,500 $ 37,005 $ 35,505 Loan Repayments 55,000 55,000 203,666 148,666
Miscellaneous - - 907 907
Total Revenues 56,500 56,500 241,578 185,078

EXPENDITURES
Current:

Economic Development:

Economic Development 56,500 191,500 117,870 73,630
Total Economic Development 56,500 191,500 117,870 73,630 Total Expenditures 56,500 191,500 117,870 73,630
NET CHANGE IN FUND BALANCE $ - $ (135,000) 123,708 $ 258,708 Fund Balance - Beginning of Year 837,459
FUND BALANCE - END OF YEAR $ 961,167
Budgeted Amount

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191

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

STREETS AND ROADS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(91)
Variance with
Original Final Actual Final Budget

REVENUES
Taxes:

Sales $ 1,588,806 $ 1,588,806 $ 1,598,533 $ 9,727
Intergovernmental 3,458,170 3,458,170 3,231,183 (226,987) Use of Property and Money 109,000 109,000 372,266 263,266 Miscellaneous 550 550 1,590 1,040
Total Revenues 5,156,526 5,156,526 5,203,572 47,046

EXPENDITURES
Current:

Highways and Streets:

Roads 4,746,044 4,303,198 1,502,682 2,800,516 Total Highways and Streets 4,746,044 4,303,198 1,502,682 2,800,516 Capital Outlay 1,000,000 1,000,000 2,255,726 (1,255,726) Total Expenditures 5,746,044 5,303,198 3,758,408 1,544,790 NET CHANGE IN FUND BALANCE $ (589,518) $ (146,672) 1,445,164 $ 1,591,836 Fund Balance - Beginning of Year 8,244,533
FUND BALANCE - END OF YEAR $ 9,689,697
Budgeted Amount

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192

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

ASSESSMENT DISTRICTS FUND
JUNE 30, 2025
(92)
Variance with
Original Final Actual Final Budget

REVENUES
Charges for Services $ 3,669,790 $ 3,669,790 3,664,247 $ (5,543) Use of Property and Money 14,825 14,825 73,813 58,988
Total Revenues 3,684,615 3,684,615 3,738,060 53,445

EXPENDITURES
Current:

Parks and Recreation 3,176,202 3,246,902 3,008,175 238,727 Capital Outlay:

Parks and Recreation 945,000 977,976 943,886 34,090
Total Expenditures 4,121,202 4,224,878 3,952,061 272,817

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (436,587) (540,263) (214,001) 326,262

OTHER FINANCING SOURCES (USES)
Transfers In 260,000 485,000 225,000 (260,000)
Total Other Financing
Sources (Uses) 260,000 485,000 225,000 (260,000)
NET CHANGE IN FUND BALANCE $ (176,587) $ (55,263) 10,999 $ 66,262 Fund Balance - Beginning of Year 1,458,375
FUND BALANCE - END OF YEAR $ 1,469,374
Budgeted Amount

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193

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

CMAQ GRANT FUND
YEAR ENDED JUNE 30, 2025
(93)
Variance with
Original Final Actual Final Budget

REVENUES
Use of Property and Money $ - $ - $ 854 $ 854
Total Revenues - - 854 854

OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 158 158
Total Other Financing
Sources (Uses) 158 158
NET CHANGE IN FUND BALANCE $ - $ - 1,012 $ 1,012
Fund Balance - Beginning of Year 19,187
FUND BALANCE - END OF YEAR $ 20,199
Budgeted Amount
Special Revenue

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194

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

HCD GRANT FUND
YEAR ENDED JUNE 30, 2025
(94)
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 277,710 $ 277,710 $ 140,377 $ (137,333) Use of Property and Money - - 10,033 10,033
Total Revenues 277,710 277,710 150,410 (127,300)

EXPENDITURES
Current:

Economic Development 277,710 277,710 140,377 137,333
Total Expenditures 277,710 277,710 140,377 137,333

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - 10,033 10,033

OTHER FINANCING SOURCES (USES)
Transfers In - 12,000 12,000 - Total Other Financing
Sources (Uses) - 12,000 12,000 - NET CHANGE IN FUND BALANCE $ - $ 12,000 22,033 $ 10,033 Fund Balance - Beginning of Year (19,255)
FUND BALANCE - END OF YEAR $ 2,778
Special Revenue
Budgeted Amount

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195

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

BADGER FLAT PIONEER
YEAR ENDED JUNE 30, 2025
(95)
Variance with
Original Final Actual Final Budget

REVENUES
Charges for Services $ - $ - $ 268,202 $ 268,202
Use of Property and Money - - 3,047 3,047
Total Revenues - - 271,249 271,249
NET CHANGE IN FUND BALANCE $ - $ - 271,249 $ 271,249
Fund Balance - Beginning of Year - FUND BALANCE - END OF YEAR $ 271,249 Special Revenue
Budgeted Amount

DRAFT REPORT

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196

CITY OF LOS BANOS

BUDGETARY COMPARISON SCHEDULE

CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2025
(96)
Variance with
Original Final Actual Final Budget

REVENUES
Use of Property and Money $ - - 309,053 $ 309,053
Total Revenues - - 309,053 309,053

EXPENDITURES
Capital Outlay 250,000 250,000 212,160 37,840
Total Expenditures 250,000 250,000 212,160 37,840

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (250,000) (250,000) 96,893 346,893

OTHER FINANCING SOURCES (USES)
Transfers In 1,150,000 1,150,000 (1,150,000) - Transfers Out (1,000,000) - (898,146) 101,854 Total Other Financing
Sources (Uses) (1,000,000) - (898,146) 101,854
NET CHANGE IN FUND BALANCE $ (250,000) $ (1,250,000) (801,253) $ 448,747 Fund Balance - Beginning of Year 6,412,622
FUND BALANCE - END OF YEAR $ 5,611,369
Budgeted Amount

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197
(97)

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.

FACILITIES MAINTENANCE
This fund is used to charge the departments for facilities maintenance.

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198

CITY OF LOS BANOS

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2025
(98)
Retiree's
Fleet Information Health Facilities
Maintenance Technology Benefits Maintenance Total
ASSETS

CURRENT ASSETS
Cash and Investments $ 29,325 $ 31,628 $ 267,766 $ 146,293 $ 475,012 Interest Receivable 1,079 1,088 - 987 3,154
Prepaid Items 267 - - - 267
Total Current Assets 30,671 32,716 267,766 147,280 478,433

NONCURRENT ASSETS
Capital Assets:

Construction in Progress - - - 947 947
Buildings and Improvements 104,738 - - 22,487 127,225
Machinery and Equipment 639,331 892,473 - 133,589 1,665,393 Less: Accumulated Depreciation (652,979) (701,287) - (187) (1,354,453) Total Noncurrent Assets 91,090 191,186 - 156,836 439,112 Total Assets 121,761 223,902 267,766 304,116 917,545

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows from Pensions 56,165 61,849 - 19,305 137,319 Deferred Outflows from OPEB 93,393 38,196 - 29,935 161,524 Total Deferred Outflows
of Resources 149,558 100,045 - 49,240 298,843

LIABILITIES

CURRENT LIABILITIES
Accounts Payable and
Other Current Liabilities 56,222 27,802 - 69,513 153,537 Compensated Absences - - - - - Total Current Liabilities 56,222 27,802 - 69,513 153,537

NONCURRENT LIABILITIES
Compensated Absences 22,904 - - 4,300 27,204
Net Pension Liability 179,859 198,060 - 61,820 439,739
Net OPEB Liability 255,865 104,643 - 82,012 442,520
Total Noncurrent Liabilities 458,628 302,703 - 148,132 909,463 Total Liabilities 514,850 330,505 - 217,645 1,063,000

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows from Pensions 4,573 5,036 - 1,572 11,181 Deferred Inflows from OPEB 39,251 16,053 - 12,581 67,885 Total Deferred Inflows
of Resources 43,824 21,089 - 14,153 79,066

NET POSITION (DEFICIT)
Net Investment in Capital Assets 91,090 191,186 - 156,836 439,112 Unrestricted (395,386) (223,609) 267,766 (36,713) (387,942) Total Net Position $ (304,296) $ (32,423) $ 267,766 $ 120,123 $ 51,170

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CITY OF LOS BANOS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2025
(99)
Retiree's
Fleet Information Health Facilities
Maintenance Technology Benefits Maintenance Total

OPERATING REVENUES
Interdepartmental Charges $ 1,223,072 $ 430,307 $ 1,894,937 $ 629,265 $ 4,177,581 Miscellaneous 1,023 670 - - 1,693
Total Operating Revenues 1,224,095 430,977 1,894,937 629,265 4,179,274

OPERATING EXPENSES
Personnel Services 82,534 62,850 1,894,969 251,124 2,291,477 Contractual Services 46,362 211,380 - 6,018 263,760
Utilities 318,660 279 - 318,939 - Repairs and Maintenance 374,101 - 468,069 - 842,170 Insurance 20,325 5,126 - - 25,451
Other Supplies and Expenses 42,974 670 25 14,831 58,500 Depreciation 8,403 71,503 - 187 80,093
Total Operating Expenses 893,359 351,808 1,894,994 740,229 3,880,390 OPERATING INCOME (LOSS) 330,736 79,169 (57) (110,964) 298,884

NONOPERATING REVENUES
(EXPENSES)
Gain (Loss) on Sale of Assets 1,015 - - - 1,015
Intergovernmental Revenues - - 211,356 - 211,356
Investment Earnings 37,313 23,334 5,876 19,731 86,254
Total Nonoperating
Revenues (Expenses) 38,328 23,334 5,876 231,087 298,625 CHANGE IN NET POSITION 369,064 102,503 5,819 120,123 597,509 Net Position - Beginning of Year, as Originally Reported (644,218) (133,929) 261,947 (516,200) - Change in accounting principal (29,142) (997) - (30,139) - Net Position - Beginning of Year, as restated (673,360) (134,926) 261,947 (546,339) - NET POSITION - END OF YEAR $ (304,296) $ (32,423) $ 267,766 $ 120,123 $ 51,170

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CITY OF LOS BANOS

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
JUNE 30, 2025
(100)
Retiree's
Fleet Information Health Facilities
Maintenance Technology Benefits Maintenance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Interfund Services Provided $ 1,224,095 $ 430,977 $ 1,894,937 $ 629,265 $ 4,179,274 Payments to Suppliers (802,156) (217,455) (25) (488,918) (1,508,554) Payments to or on Behalf of Employees for Services (449,039) (180,338) (1,894,969) (136,644) (2,660,990) Net Cash Provided (Used) by Operating Activities (27,100) 33,184 (57) 3,703 9,730

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Grants and Subsidies from Other Governmental Agencies - - 211,356 - 211,356 Net Cash Provided by Noncapital
Financing Activities - - 211,356 - 211,356

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets (15,327) (34,425) (87,510) - (137,262) Proceed from Sale of Capital Assets 1,015 - - - 1,015
Net Cash Used by Capital
and Related Financing Activities (14,312) (34,425) (87,510) - (136,247)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Earnings 36,610 22,700 5,876 18,744 83,930
Net Cash Provided by Investing Activities 36,610 22,700 5,876 18,744 83,930 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,802) 21,459 5,819 146,293 168,769 Cash and Cash Equivalents - Beginning of Year 34,127 10,169 261,947 306,243 - CASH AND CASH EQUIVALENTS - END OF YEAR $ 29,325 $ 31,628 $ 267,766 $ 146,293 $ 475,012

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 330,736 $ 79,169 $ (57) $ (110,964) $ 298,884 Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation and amortization expense 8,403 71,503 - 187 80,093 (Increase) Decrease in:

Prepaid Items 266 - - - 266
Deferred Outflows of Resources for Pensions 175,396 101,938 (19,305) - 258,029 Deferred Outflows of Resources for OPEB 65,490 (899) (29,935) - 34,656 Increase (Decrease) in:

Compensated Absences (12,378) (15) - 5,735 (6,658)
Net Pension Liability (406,526) (216,700) 61,820 - (561,406) Net OPEB Liability (130,557) 13,934 82,012 - (34,611)
Deferred Inflows of Resources for Pensions (23,332) (14,464) - 1,572 (36,224) Deferred Inflows of Resources for OPEB (34,598) (1,282) 12,581 - (23,299) Net Cash Provided (Used) by Operating Activities $ (27,100) $ 33,184 $ (57) $ 3,703 $ 9,730

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STATISTICAL SECTION

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(102)
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.

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203

CITY OF LOS BANOS

NET POSITION BY COMPONENTS
LAST 10 FISCAL YEARS
(103)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Governmental Activities:

Net Investment in Capital Assets $ 83,051,535 $ 77,813,813 $ 73,679,314 $ 71,701,732 $ 70,986,296 $ 72,183,070 $ 97,029,611 $ 103,769,799 $ 117,216,633 $ 136,867,264 Restricted 14,014,590 19,345,542 28,042,938 34,310,692 41,605,638 50,090,885 50,602,889 56,060,038 61,048,051 62,819,765 Unrestricted 4,527,558 5,374,816 (10,084,047) (9,085,174) (4,680,881) 1,266,673 23,462,779 21,603,396 16,313,090 11,009,724 Total Governmental
Activities Net Position $ 101,593,683 $ 102,534,171 $ 91,638,205 $ 96,927,250 $ 107,911,053 $ 123,540,628 $ 171,095,279 $ 181,433,233 $ 194,577,774 $ 210,696,753 Business-Type Activities:

Net Investment in Capital Assets $ 45,816,837 $ 46,906,196 $ 51,171,643 $ 55,063,074 $ 55,419,531 $ 54,939,541 $ 54,500,208 $ 55,241,270 $ 56,324,519 $ 61,510,873 Restricted 10,468,024 12,796,446 14,747,937 15,627,011 18,399,783 23,107,727 24,760,956 24,901,408 25,655,802 35,937,209 Unrestricted 21,106,896 23,730,905 20,300,902 22,318,541 26,982,634 32,746,134 40,182,220 44,076,141 47,213,024 43,685,959 Total Business-Type
Activities Net Position $ 77,391,757 $ 83,433,547 $ 86,220,482 $ 93,008,626 $ 100,801,948 $ 110,793,402 $ 119,443,384 $ 124,218,819 $ 129,193,345 $ 141,134,041 Primary Government:

Net Investment in Capital Assets $ 128,868,372 $ 124,720,009 $ 124,850,957 $ 126,764,806 $ 126,405,827 $ 127,122,611 $ 151,529,819 $ 159,011,069 $ 173,541,152 $ 198,378,137 Restricted 24,482,614 32,141,988 42,790,875 49,937,703 60,005,421 73,198,612 75,363,845 80,961,446 86,703,853 98,756,974 Unrestricted 25,634,454 29,105,721 10,216,855 13,233,367 22,301,753 34,012,807 63,644,999 65,679,537 63,526,114 54,695,683 Total Primary Government
Net Position $ 178,985,440 $ 185,967,718 $ 177,858,687 $ 189,935,876 $ 208,713,001 $ 234,334,030 $ 290,538,663 $ 305,652,052 $ 323,771,119 $ 351,830,794

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204

CITY OF LOS BANOS

CHANGES IN NET POSITION
LAST 10 FISCAL YEARS
(104)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

EXPENSES
Governmental Activities:

General Government $ 1,371,651 $ 1,186,905 $ 1,487,571 $ 1,535,597 $ 1,615,041 $ 1,680,946 $ 2,817,462 $ 4,582,391 $ 2,403,080 $ 1,611,209 Public Safety 9,687,489 12,473,523 15,813,709 16,098,104 18,938,351 18,002,198 16,319,501 18,934,458 23,368,656 28,415,530 Highways and Streets 6,023,160 6,222,855 6,436,759 6,987,449 6,456,997 6,232,243 6,408,485 7,178,208 7,864,617 6,647,958 Parks and Recreation 4,281,104 4,735,095 4,612,509 4,799,711 5,131,771 4,812,593 5,647,346 5,389,019 7,744,514 8,600,493 Economic Development 582,985 681,828 945,745 980,764 1,018,880 942,026 1,287,958 1,281,357 1,663,222 2,718,622 Interest on Long-Term Debt 11,594 11,232 9,779 8,249 6,641 1,203 3,950 2,800 2,834 - Total Governmental Activities 21,957,983 25,311,438 29,306,072 30,409,874 33,167,681 31,671,209 32,484,702 37,368,233 43,046,923 47,993,812 Business-Type Activities
Water 4,400,180 4,356,044 4,772,454 4,928,253 4,810,242 5,132,183 5,368,954 5,251,235 6,438,529 6,105,780 Wastewater 4,418,235 4,197,226 4,527,236 4,557,451 4,896,520 4,878,692 5,095,317 5,729,799 9,446,931 5,025,305 Airport 361,224 330,699 336,645 337,840 336,588 305,973 366,282 379,962 400,176 433,434 Solid Waste 6,060,817 6,282,604 5,745,491 6,732,856 7,593,755 8,027,609 6,399,144 8,144,745 6,900,566 6,735,447 Total Business-Type Activities 15,240,456 15,166,573 15,381,826 16,556,400 17,637,105 18,344,457 17,229,697 19,505,741 23,186,202 18,299,966 Total Primary
Government Expenses $ 37,198,439 $ 40,478,011 $ 44,687,898 $ 46,966,274 $ 50,804,786 $ 50,015,666 $ 49,714,399 $ 56,873,974 $ 66,233,125 $ 66,293,778

PROGRAM REVENUE
Governmental Activities:

Charges for Services $ 5,001,906 $ 5,593,570 $ 8,037,154 $ 7,799,743 $ 8,896,352 $ 10,355,202 $ 12,870,076 $ 7,501,980 $ 10,716,224 $ 11,999,389 Operating Grants and Contributions 3,385,289 3,808,707 5,172,313 5,673,812 6,015,032 4,052,293 3,757,028 5,469,842 6,310,780 2,696,826 Capital Grants and Contribut5ions 2,623,070 4,753,878 3,469,161 6,650,241 10,976,153 8,218,079 26,318,868 3,204,332 3,151,009 14,650,970 Total Governmental Activities 11,010,265 14,156,155 16,678,628 20,123,796 25,887,537 22,625,574 42,945,972 16,176,154 20,178,013 29,347,185 Business-Type Activities:

Charges for Services 19,539,564 20,693,974 21,568,675 20,979,032 22,831,073 26,263,090 23,579,704 21,751,160 23,069,683 24,249,857 Operating Grants and Contributions 24,812 34,588 27,363 22,604 25,342 130,305 25,696 32,605 49,426 86,084 Capital Grants and Contributions - - 159,298 653,940 833,776 1,146,422 1,314,669 412,202 834,330 2,560,440 Total Business-Type Activities 19,564,376 20,728,562 21,755,336 21,655,576 23,690,191 27,539,817 24,920,069 22,195,967 23,953,439 26,896,381 Total Primary Government
Program Revenue $ 30,574,641 $ 34,884,717 $ 38,433,964 $ 41,779,372 $ 49,577,728 $ 50,165,391 $ 67,866,041 $ 38,372,121 $ 44,131,452 $ 56,243,566

NET (EXPENSE)/REVENUE
Governmental Activities $ (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) $ (18,646,627) Business-Type Activities 4,323,920 5,561,989 6,373,510 5,099,176 6,053,086 9,195,360 7,690,372 2,690,226 767,237 8,596,415 Total Primary Government
(Expense) Revenue, Net $ (6,623,798) $ (5,593,294) $ (6,253,934) $ (5,186,902) $ (1,227,058) $ 149,725 $ 18,151,642 $ (18,501,853) $ (22,101,673) $ (10,050,212)

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205

CITY OF LOS BANOS

CHANGES IN NET POSITION (CONTINUED)
LAST 10 FISCAL YEARS
(105)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

GENERAL REVENUES
Governmental Activities:

Taxes:

Property Taxes $ 6,229,501 $ 6,793,665 $ 6,793,665 $ 7,305,948 $ 9,382,154 $ 9,382,154 $ 10,416,190 $ 12,268,378 $ 13,288,031 $ 14,365,992 Sales Taxes 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 15,959,009 Other Taxes 1,237,553 1,181,620 1,181,620 1,118,412 1,233,540 1,233,540 1,485,952 1,435,212 1,416,798 1,398,080 Use of Money and Property 1,287,188 1,935,306 1,935,306 1,876,676 902,417 902,417 629,466 3,149,636 6,057,749 4,737,240 American Rescue Plan Act - - - - - - 9,816,684 - - - Miscellaneous 124,913 76,560 76,560 215,189 395,013 395,013 246,446 164,921 720,848 841,239 Transfers (3,776) (6,544) (6,544) (3,259) - - - (8,835) - (289,736) Total Governmental Activities 13,488,958 15,575,123 15,575,123 18,263,947 24,675,210 24,675,210 37,093,381 31,530,033 36,013,451 37,011,824 Business-Type Activities:

Property Taxes 3,860 3,717 3,717 3,963 4,077 4,077 - 6,073 7,590 8,292 Use of Money and Property 529,413 1,245,717 1,245,717 1,138,933 188,669 188,669 (120,628) 1,880,468 3,735,821 3,405,335 Settlement - - - - - - 600,000 - - - Miscellaneous 158,676 432,990 432,990 594,081 603,348 603,348 480,238 174,383 463,878 224,270 Transfers (Note 4) 3,776 6,544 6,544 3,259 - - - 8,835 - 289,736 Total Business-Type Activities 695,725 1,688,968 1,688,968 1,740,236 796,094 796,094 959,610 2,069,759 4,207,289 3,927,633 Total Primary Government
General Revenues $ 14,184,683 $ 17,264,091 $ 17,264,091 $ 20,004,183 $ 25,471,304 $ 25,471,304 $ 38,052,991 $ 33,599,792 $ 40,220,740 $ 40,939,457

CHANGES IN NET POSITION
Governmental $ 2,541,240 $ 4,419,840 $ 2,947,679 $ 7,977,869 $ 17,395,066 $ 15,629,575 $ 47,554,651 $ 10,337,954 $ 13,144,541 $ 18,365,197 Business-Type 5,019,645 7,250,957 8,062,478 6,839,412 6,849,180 9,991,454 8,649,982 4,759,985 4,974,526 12,524,048 Total Primary Government $ 7,560,885 $ 11,670,797 $ 11,010,157 $ 14,817,281 $ 24,244,246 $ 25,621,029 $ 56,204,633 $ 15,097,939 $ 18,119,067 $ 30,889,245

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206

CITY OF LOS BANOS

FUND BALANCES

GOVERNMENTAL FUNDS
LAST 10 FISCAL YEARS
(106)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 General Fund:

Nonspendable $ 3,938 $ 248 $ 2,970 $ 1,087 $ 2,381 $ - $ - $ 127 $ 1,066 $ 3,447 Committed - - 494,657 674,349 457,876 4,457,852 276,926 276,926 8,276,926 8,276,926 Assigned 3,335,429 3,266,323 3,916,672 3,717,891 6,214,047 5,911,193 5,836,627 8,561,711 13,313,123 8,561,838 Unassigned 8,638,970 9,017,100 8,709,292 11,437,736 15,011,639 18,269,391 32,046,537 31,927,438 22,224,739 27,520,574 Total General Fund $ 11,978,337 $ 12,283,671 $ 13,123,591 $ 15,831,063 $ 21,685,943 $ 28,638,436 $ 38,160,090 $ 40,766,202 $ 43,815,854 $ 44,362,785 All Other Governmental Funds:

Nonspendable $ 852,459 $ - $ 7,293 $ 4,862 $ 2,431 $ - $ 615,945 $ 308,000 $ 243,400 $ - Restricted 13,818,032 19,174,130 24,888,393 31,350,743 38,833,591 47,685,213 67,707,434 55,224,504 59,169,932 62,283,436 Committed - - - - - - - - - - Assigned - - - - - - 5,125,000 5,125,000 - - Unassigned (701,772) (672,702) (659,139) (635,273) - - (20,706) (20,706) (19,255) - Total All Other Governmental Funds $ 13,968,719 $ 18,501,428 $ 24,236,547 $ 30,720,332 $ 38,836,022 $ 47,685,213 $ 73,427,673 $ 60,636,798 $ 59,394,077 $ 62,283,436 Source: City of Los Banos Finance Department

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207

CITY OF LOS BANOS

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
LAST 10 FISCAL YEARS
(107)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

REVENUES
Taxes:

Property $ 6,316,878 $ 6,504,693 $ 7,198,259 $ 7,859,108 $ 8,546,862 $ 9,382,154 $ 10,416,190 $ 12,268,379 $ 13,288,033 $ 14,365,992 Sales 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 15,959,009 Franchise 534,702 546,061 563,611 540,449 566,328 619,158 687,723 752,176 727,742 699,912 Motor Vehicle - - - - - - - - - - Other Taxes 523,261 595,119 652,890 621,498 518,924 583,634 748,705 635,230 630,572 698,168 Licenses and Permits 855,171 1,123,244 1,012,757 763,207 1,169,141 2,168,888 1,983,293 869,724 1,708,015 1,523,273 Intergovernmental 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 6,141,931 Charges for Services 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 9,247,626 Fines 50,546 64,129 67,496 59,806 45,227 35,593 60,238 43,723 45,532 31,304 Use of Property and Money 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 5,848,172 Loan Repayments - - - - 182,621 166,407 391,262 49,128 54,987 - Miscellaneous 250,317 280,468 356,333 271,538 216,264 358,418 218,192 126,485 456,241 806,034 Total Revenues 23,007,464 26,439,101 29,894,506 32,563,353 41,577,460 43,980,031 54,236,708 45,093,089 53,830,466 55,321,421

EXPENDITURES
Current:

General Government 1,083,155 1,117,098 1,276,300 1,229,744 1,315,025 1,325,624 2,679,438 4,599,377 2,056,173 1,969,879 Public Safety 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 22,977,644 Highways and Streets 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 1,819,896 Parks and Recreation 2,858,994 3,546,943 3,228,685 3,481,902 3,825,646 3,561,389 4,174,850 4,571,810 6,571,340 6,088,473 Economic Development 503,184 630,829 803,714 890,423 903,798 860,877 1,201,133 1,306,336 1,485,166 2,428,515 Debt Service:

Principal 9,828 13,263 - - - - - - 24,681 393,426
Interest 11,594 11,232 7,950 7,049 6,100 5,100 51,005 310,800 310,834 303,963 Capital Outlay:

General Government 5,000 28,245 412,723 55,642 413,056 200,676 342,260 260,847 960,337 3,887,401 Public Safety 477,051 1,191,984 320,123 141,586 2,740,067 2,593,217 3,313,303 18,820,132 9,696,236 2,903,683 Highways and Streets 199,387 - 250,037 424,544 2,348,437 4,056 1,279 919,050 4,475,673 5,007,921 Parks and Recreation 372,016 65,670 358,599 522,532 425,141 665,977 779,103 2,087,413 2,121,541 4,394,492 Economic Development 6,521 3,348 100 4,392 251 - 247,408 304,774 317,794 398,713 Total Expenditures 18,977,555 21,615,700 23,334,772 23,452,918 29,911,374 28,277,285 32,865,749 55,410,498 52,403,329 52,574,006

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,029,909 4,823,401 6,559,734 9,110,435 11,666,086 15,702,746 21,370,959 (10,317,409) 1,427,137 2,747,415

OTHER FINANCING

SOURCES (USES)
Issuance of Financing Lease 70,501 - - - - - 14,000,000 - - - Cost of Issuance - - - - - - (140,000) - - - Insurance Recoveries 240,396 - - 81,779 50,659 57,632 2,387 20,138 114,537 - Transfer In 235,979 126,993 27,025 1,004 824,533 - 13,011,700 1,176 1,035,000 1,135,146 Transfer Out (241,102) (132,688) (30,801) (7,548) (827,792) - (13,011,700) (10,011) (1,035,000) (1,424,882) Proceeds from IT Subscriptions - - - - - - - 72,734 - 943,406 Sale of Capital Assets 17,910 20,337 19,081 5,587 2,257,084 41,306 30,768 48,609 264,257 35,205 Total Other Financing Sources (Uses) 323,684 14,642 15,305 80,822 2,304,484 98,938 13,893,155 132,646 378,794 688,875 Net Changes in Fund Balances $ 4,353,593 $ 4,838,043 $ 6,575,039 $ 9,191,257 $ 13,970,570 $ 15,801,684 $ 35,264,114 $ (10,184,763) $ 1,805,931 $ 3,436,290 Debt Service as a Percentage of
Noncapital Expenditures 0.06 % 0.12 % 0.04 % 0.03 % 0.03 % 0.02 % 0.18 % 0.95 % 0.97 % 0.01 % Source: City of Los Banos Finance Department

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208

CITY OF LOS BANOS

ASSESSED VALUE OF TAXABLE PROPERTY
LAST 10 FISCAL YEARS
(IN THOUSANDS)
(108)
Fiscal Year
Residential
Property
Comercial
Property
Industrial
Property
Other
Property
Unsecured
Property
Less TaxExempt -
Other
Property
Net Taxable
Assessed
Value
Total Direct
Tax Rate (1)
Estimated
Actual
Taxable
Value (2)
Factor of
Taxable
Assessed
Value (2)
Assessed
Value as a
Percentage of
Actual Value
2015-2016 - - - - - - 2,270,316 1.00% - - - 2016-2017 - - - - - - 2,421,710 1.00% - - - 2017-2018 - - - - - - 2,620,685 1.00% - - - 2018-2019 - - - - - - 2,858,908 1.00% - - - 2019-2020 - - - - - - 3,109,064 1.00% - - - 2020-2021 - - - - - - 3,316,679 1.00% - - - 2021-2022 - - - - - - 3,539,138 1.00% - - - 2022-2023 3,279,359 510,165 80,027 127,237 119,645 128,023 3,988,410 1.00% 6,933,705 1.738464 57.52% 2023-2024 3,572,485 520,928 79,863 145,942 142,378 134,513 4,327,083 1.00% 5,855,468 1.353214 73.90% 2024-2025 3,764,494 556,281 87,399 146,048 159,592 139,361 4,574,452 1.00% 7,740,137 1.692036 59.10% Source: County Assessor data, MuniServices, LLC, / Neumo 2021-22 and Prior Years, Data not available
Notes: Table has been reformatted to comply with GASB No. 44 and include estimated actual value. (-) Historical data unavailable

1.) Total direct tax rate is represented by TRA 004-001.

2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

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CITY OF LOS BANOS

TAX REVENUE BY SOURCE

GENERAL FUND
LAST 10 FISCAL YEARS
(109)
Fiscal Year Property Sales and Use Franchise Motor Vehicle Other Total 2015-2016 $ 5,551,292 $ 3,829,042 (1) 534,702 $ $ - $ 523,261 $ 10,438,297 2016-2017 5,675,697 4,012,401 546,061 - 595,119 10,829,278 2017-2018 6,200,655 4,613,579 563,611 - 652,890 12,030,735 2018-2019 6,764,382 5,594,516 540,449 - 621,498 13,520,845 2019-2020 7,275,270 7,750,981 566,328 - 518,924 16,111,503 2020-2021 7,987,042 9,282,344 619,158 - 583,634 18,472,178 2021-2022 8,839,328 10,515,455 687,723 - 748,705 20,791,211 2022-2023 10,522,723 10,599,511 752,176 - 635,230 22,509,640 2023-2024 11,460,593 10,570,537 727,742 - 630,572 23,389,444 2024-2025 14,374,284 15,959,009 699,912 - 698,168 31,731,373 Source: City of Los Banos Finance Department
Notes: (1) Sales tax increase due to increase in Triple Flip ending and true up payments.

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DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST 10 FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(110)
Los Banos
City of County of Total Unified School Merced
Fiscal Year Los Banos Merced District District Bond College Bond Total Rate 2015-2016 0.1953 0.8047 1.0000 0.1070 0.0214 0.1284
2016-2017 0.1953 0.8047 1.0000 0.1144 0.0207 0.1351
2017-2018 0.1953 0.8047 1.0000 0.0792 0.0209 0.1001
2018-2019 0.1953 0.8047 1.0000 0.0711 0.0202 0.0913
2019-2020 0.1953 0.8047 1.0000 0.0797 0.0218 0.1015
2020-2021 0.1953 0.8047 1.0000 0.0796 0.0199 0.0995
2021-2022 0.1950 0.8050 1.0000 0.0796 0.0198 0.0994
2022-2023 0.1954 0.8046 1.0000 0.0703 0.0177 0.0880
2023-2024 0.1954 0.8046 1.0000 0.0646 0.0171 0.0817
2024-2025 0.1954 0.8046 1.0000 0.1054 0.0176 0.1230
Source: County Auditor data, MuniServices, LLC,/Avenu Insights & Analytics Notes: 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 Banos, for which the subject property resides within. The City of Los Banos's portion varies by several Tax Rate Areas (TRAs) within the City.

City Direct Rates Overlapping Rates

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PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND 10 YEARS AGO
(111)
Percent of Percent of
Total City Total City
Owner Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value Kagome Usa Inc. $ 43,840,471 1 11.65 % $ 20,617,202 3 0.96 % Wal-Mart Real Estate Business Trust 28,200,024 2 7.49 27,073,131 2 1.27 Target Corp 24,152,782 3 6.42 18,886,880 4 0.88
California Dairies Inc. 23,340,563 4 6.20 - 0.00
Stonefield Home Inc. 21,357,326 5 5.67 - 0.00
Conrad Ethan 20,645,035 6 5.48 - 0.00
Holt Of California 20,417,140 7 5.42 - 0.00
California Sun Equipment LLC 19,898,591 8 5.29 - 0.00
Los Banos 109 Lp 16,110,619 9 4.28 - 0.00
BGRE LLC 14,713,279 10 3.91 - 0.00
Home Depot Usa Inc. - 0.00 - 0.00
California Milk Producers - 0.00 34,438,718 1 1.61
Lowes HIW Inc. - 0.00 1,205,666 5 0.06
Solomon Frank Jr - 0.00 11,662,482 6 0.55
Mccorduck Properties Los Banos LLC - 0.00 10,700,945 8 0.50 Los Banos II LLC - 0.00 9,808,128 9 0.46
Trevino Pioneer LLC - 0.00 9,347,359 10 0.44
Top 10 Assessed Values $ 232,675,830 61.81 % 143,740,511 $ 6.72 % Total Assessed Value 2015-2016 $2,138,471,120
Total Assessed Value 2024-2025 $376,429,562
Source: County Assessor data, MuniServices, LLC,/Avenue Insights & Analytics 2024-2025 2015-2016

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CITY OF LOS BANOS

PROPERTY TAX LEVIES AND COLLECTIONS
LAST 10 FISCAL YEARS
(112)
Percent of Delinquent
Fiscal Current Current Tax Current Taxes Tax Total Tax
Year Tax Levies Collections Collected (1) Collections Collections 2015-2016 3,006,979 $ $ 3,006,979 100.00 % $ 3,006,979 - $ 2016-2017 3,197,238 3,197,238 100.00 3,197,238 - 2017-2018 3,537,012 3,537,012 100.00 3,537,012 - 2018-2019 3,843,207 3,843,207 100.00 3,843,207 - 2019-2020 4,098,951 4,098,951 100.00 4,098,951 - 2020-2021 4,565,361 4,565,361 100.00 4,565,361 - 2021-2022 4,834,896 4,834,896 100.00 4,834,896 - 2022-2023 5,420,501 5,420,501 100.00 5,420,501 - 2023-2024 6,089,057 6,089,057 100.00 6,089,057 - 2024-2025 6,402,259 6,402,259 100.00 6,402,259 - Source: Merced County Auditor-Controller Notes: (1) Revenue and Taxation Code Section 7401 through 4717 provide for an alternative method of distribution of tax levies and collections known as the Teeter Plan. Merced County distributes 100% of the current secured roll to the City of Los Banos.

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CITY OF LOS BANOS

RATIOS OF OUTSTANDING DEBT BY TYPE
LAST 10 FISCAL YEARS
(113)
Lease Tax Total Percent of Fiscal Revenue Allocation Capital Financed Notes Capital Notes Primary Per Assessed Years Bond Bonds Leases Leases COPs Payable Bonds Leases COPs Payable Government Population Capita Valuation (1) 2015-2016 $ - $ 351,212 - $ $ - $ - $ - $ - $ 1,570,796 - $ $ 14,347 $ 1,936,355 39,359 $ 49 0.09 % 2016-2017 - 253,750 - - - - - 1,229,477 - 1,483,227 - 39,993 37 0.06 2017-2018 - 151,203 - - - - - 868,159 - 1,019,362 - 40,986 25 0.04 2018-2019 - 65,593 - - - - - 428,159 - 493,752 - 41,898 12 0.02 2019-2020 - - 7,573 - - - - - - - 7,573 41,923 - 0.00
2020-2021 - - - - - - - - - - - 42,869 - 0.00
2021-2022 - - 14,000,000 - - - - - - 14,000,000 - 46,639 300 0.40 2022-2023 - - 14,000,000 - - - - - - 14,000,000 - 47,347 296 0.35 2023-2024 - - 14,000,000 - - - - - - 14,000,000 - 47,419 295 0.32 2024-2025 - - 13,257,879 - - - - - - 13,257,879 - 48,896 271 0.29 Source: City of Los Banos Finance Department Notes: (1) See Assessed Value of Taxable Property schedule for Assessed Values. (2) Business Activities are zero in Fiscal Year 2019-2020, due to City paying off debt.

Governmental Activities Business-Type Activities (2)

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CITY OF LOS BANOS

RATIOS OF GENERAL FUND DEBT OUTSTANDING
LAST 10 FISCAL YEARS
(114)
General Fund Percent of Actual
Fiscal Debt Redevelopment Total Assessed Taxable Value
Year Outstanding (2) Bonds (1) Total Property Value Population of Property Per Capita 2015-2016 $ 351,212 $ - $ 351,212 $ 2,270,316,588 39,359 0.02 % $ 9 2016-2017 253,750 - 253,750 2,620,761,000 39,993 0.01 6 2017-2018 151,203 - 151,203 2,620,685,704 40,986 0.01 4 2018-2019 65,593 - 65,593 2,858,907,614 41,898 0.00 2
2019-2020 7,573 - 7,573 3,109,064,142 41,923 0.00 - 2020-2021 - - - 3,316,678,388 42,869 0.00 - 2021-2022 - - - 3,539,138,117 46,639 0.00 - 2022-2023 - - - 3,988,408,584 47,347 0.00 - 2023-2024 - - - 4,327,081,961 47,419 0.00 - 2024-2025 - - - 4,574,452,208 48,896 0.00 - Source: City of Los Banos Finance Department 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.

General Debt Outstanding

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CITY OF LOS BANOS

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2025
(115)
2024-2025 Assessed Valuation $ 4,574,452,208
Total Debt Percent City's Share of
June 30, 2025 Applicable (1) Debt June 30, 2025
Overlapping Tax and Assessment Debt
Merced Community College District School Facilities Improvement District No. 2 $ 1,397,052 57.611 % $ 804,856 Los Banos Unified School District 116,360,000 67.970 79,089,892 Total Overlapping Tax and Assessment Debt 79,894,748
Direct and Overlapping General Fund Debt
Merced County General Fund Obligations 41,416,084 12.966 5,499,669 Merced County Office of Education Certificates of Participation 6,205,000 12.966 804,540 Los Banos Unified School District Certificate of Participation 17,090,000 67.970 11,616,073 City of Los Banos Lease Obligations 13,632,977 100.000 13,632,977 Total Direct and Overlapping General Fund Debt 31,553,259 Overlapping Tax Increment Debt (Successor Agency) 15,455,717 99.256 15,340,726 Total Direct Debt 13,632,977
Total Overlapping Debt 113,155,756
Combined Total Debt $ 126,788,733 (2)
Ratios to 2024-2025 Assessed Valuation
Total Overlapping Tax and Assessment Debt 1.75 %
Total Direct Debt ($14,000,000) 0.30 %
Combined Total Debt 2.77 %
Rations to Successor Agency Redevelopment Incremental Valuation ($818,023,644):

Total Overlapping Tax Increment Debt 1.72 %
Source: Avenue Insights & Analytics
California Municipal Statistics, Inc.

Notes: (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, revenue, and mortgage revenue obligations.

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CITY OF LOS BANOS

LEGAL DEBT MARGIN INFORMATION
LAST 10 FISCAL YEARS
(IN THOUSANDS)
(116)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Assessed Value $ 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 $ 4,574,452 25% of Full Assessed Value 567,579 605,428 655,172 714,727 777,266 829,170 884,785 997,103 1,081,771 1,143,613 Debt Limit (15% of Reduced Assessed Value) 85,137 90,814 98,276 107,209 116,590 124,375 132,718 149,565 162,266 171,542 Total Net Debt Applicable to Limit - - - - - - - - - - Legal Debt Margin $ 85,137 $ 90,814 $ 98,276 $ 107,209 $ 116,590 $ 124,375 $ 132,718 $ 149,565 $ 162,266 $ 171,542 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

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CITY OF LOS BANOS

PLEDGED REVENUE COVERAGE
LAST 10 FISCAL YEARS
(117)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Water Revenue Bonds:

Water Revenue $ 6,001,003 $ 6,342,156 $ 6,653,861 $ 6,247,950 $ 7,333,876 $ 8,508,884 $ 8,343,075 $ 7,191,004 $ 7,863,407 $ 8,476,298 Less: Operating Expenses (1) (3,115,891) (3,342,002) (3,528,711) (3,646,595) (3,617,167) (3,977,327) (4,124,429) (4,411,755) (5,190,064) (5,944,704) Net Available Revenue 2,885,112 3,000,154 3,125,150 2,601,355 3,716,709 4,531,557 4,218,646 2,779,249 2,673,343 2,531,594 Debt Service - - - - - - - - - - Coverage Ratio N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Wastewater Revenue Bonds:

Wastewater Revenue (2) $ 6,184,581 $ 6,930,523 $ 7,345,806 $ 6,962,261 $ 7,507,222 $ 9,299,700 $ 8,896,888 $ 7,801,789 $ 8,506,409 $ 8,231,607 Less: Operating Expenses (1) (2,832,174) (3,077,148) (3,235,389) (3,269,692) (3,260,548) (3,573,699) (3,608,221) (3,889,555) (7,871,965) (4,918,319) Net Available Revenue 3,352,407 3,853,375 4,110,417 3,692,569 4,246,674 5,726,001 5,288,667 3,912,234 634,444 3,313,288 Debt Service 470,115 468,929 471,598 468,124 468,433 - - - - - Coverage Ratio 7.13 8.22 8.72 7.89 9.07 N/A N/A N/A N/A N/A Source: City of Los Banos Finance Department
Notes: (1) Depreciation, Compensated Absences, and Charge Outs not included in Operating Expenses. (2) Revenue includes Ag Farming Income.

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DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST 10 FISCAL YEARS
(118)
Calendar
Year
City
Population (1)
Personal
Income (in
1000's) (2)
Per Capita
Personal
Income (2)
City Unemployment
Rate (%) (3)
County
Unemployment
Rate (%) (3)
County
Population (1)
Public
School
Enrollment (4)
2016 39,359 713,687 18,133 11.0% 11% 271,579 10,520
2017 39,993 800,319 20,011 10.3% 10% 274,665 10,785
2018 40,986 862,163 21,036 10.4% 8% 279,977 10,863
2019 41,898 966,147 23,059 10.1% 8% 282,928 11,075
2020 41,923 975,877 23,278 20.0% 15% 283,521 11,084
2021 42,869 1,138,439 26,556 13.5% 11% 284,836 10,858
2022 46,639 1,184,819 25,404 9.7% 7% 283,311 10,928
2023 47,347 1,234,620 26,076 13.2% 9% 285,337 11,020
2024 47,419 1,381,752 29,139 12.4% 9% 287,303 11,057
2025 48,896 1,536,190 31,417 13.0% 10% 293,080 11,041
Source: MuniServices, LLC, / Neumo, U.S. Census Bureau
Source: FY 2024 and Prior Years, Los Banos - ACFR Report 2024 Publication (1) Population Projections are provided by the California 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.

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PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
(119)
Percent of Percent of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment Los Banos Unified School District 1,131 1 5.44 % 1,120 1 7.90 % Los Banos Nursing Rehabilitation 382 2 1.84 - - Sutter Health Memorial Hospital - Los Banos 372 3 1.79 208 3 2.29 Walmart Supercenter 329 4 1.58 325 2 1.47
Kagome 196 5 0.94 178 5 1.26
City of Los Banos 192 6 0.92 186 4 1.31
Target Department Store 167 7 0.80 150 6 1.06
The Home Depot 149 8 0.72 118 7 0.83
APEX Medical Group 103 9 0.50 73 9 0.51
New Bethany Residential Care 10 85 0.41 - - Central California Irrigation - - 76 8 0.54 Food 4 Less - - 10 70 0.49
Total 3,106 14.93 % 2,504 17.66 %
Total City Labor Force (1) 20,800
Source: MuniServices, LLC / Neumo
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 2024-2025 2017-2018

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CITY OF LOS BANOS

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST 10 FISCAL YEARS
(120)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

FUNCTION/PROGRAM
General Government:

Administration 5.35 5.68 5.13 5.13 5.13 5.13 5.13 5.13 6.18 5.12 Community and Economic 2.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 6.00 6.00 Water Admin 4.27 4.60 4.72 4.72 4.72 4.72 4.72 4.72 5.74 6.17 Wastewater Admin 4.19 4.52 4.72 4.72 4.72 4.72 4.72 4.72 5.70 6.14 Solid Waste Admin 4.17 4.49 4.72 4.72 4.72 4.72 4.72 4.72 5.70 5.92 Police:

Sworn 39.00 40.00 41.00 41.00 47.00 48.00 48.00 48.00 48.00 48.00 Nonsworn 20.50 23.50 24.50 24.50 26.50 26.50 26.50 26.50 27.50 27.00 Code Enforcement 2.50 2.50 2.50 4.50 5.50 5.50 5.50 5.50 8.50 8.00 Fire:

Sworn 15.90 15.90 15.90 15.90 17.90 17.90 17.90 17.90 20.90 20.90 Nonsworn 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Building Sworn 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Building Nonsworn 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 1.10 1.10 Water Admin 11.19 11.76 11.76 11.76 11.76 11.76 11.76 11.95 12.85 13.43 Wastewater Admin 10.59 10.90 10.90 10.90 10.90 10.90 10.90 11.31 13.40 13.43 Solid Waste 6.33 7.65 7.65 7.65 7.65 7.65 7.65 7.69 9.29 8.22 Streets 8.80 11.05 11.05 11.05 11.05 11.05 11.05 11.41 11.61 10.25 Maintenance 7.15 9.40 10.40 10.05 10.05 10.05 10.05 10.05 10.15 11.40 Recreation 1.19 1.19 1.19 2.54 3.54 3.54 3.54 3.54 4.54 3.50 Airport 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fleet 2.22 2.21 2.21 2.21 2.21 2.21 2.21 3.21 4.26 4.32 Facilities Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 3.00 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 1.00 1.00 1.00 1.00 1.00 Total 151.00 164.00 167.00 170.00 182.00 181.00 181.00 184.00 205.00 205.00 Source: City of Los Banos Finance Department

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OPERATING INFORMATION, OPERATING INDICATORS BY FUNCTION/PROGRAM LAST 10 FISCAL YEARS
(121)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

FUNCTION/PROGRAM
Police:

Jail Bookings (1) 1,724 1,905 1,508 1,261 1,063 1,206 985 877 547 1,038 Traffic Collisions (1) 546 631 361 425 369 404 487 497 442 480 Parking Citations (1) 966 889 611 778 443 743 888 492 407 245 Moving Citations (1) 3,803 2,919 1,509 707 1,162 2,653 3,381 1,408 2,270 1,111 Fire:

Fire Calls 914 973 989 961 983 1,080 1,075 1,077 1,546 1,331 Medical Calls 1,793 1,737 1,923 1,889 1,930 1,854 2,097 2,311 1,925 1,611 Inspections (6) 751 732 751 816 559 541 890 989 N/A 964 Public Works:

Streets:

Street Surfacing (Miles) (3) 0.52 1.04 1.04 3.12 10.27 5.53 2.04 0.64 2.55 6.51 Parks and Recreation:

Rec. Youth Program Enrollments (2, 4) 1,202 1,266 1,295 1,264 1,231 - 1,621 2,241 2,230 2,200 Water:

Water Delivered (Millions) 2,169 2,158 2,415 2,496 2,455 2,707 2,757 2,726 2,552 2,645 Connections 11,369 11,648 11,974 11,974 12,425 12,781 13,168 13,394 13,490 13,710 Sewer:

Average Daily Flow (mgd) 2.90 2.80 2.70 2.50 2.80 3.30 3.30 3.46 3.46 3.20 Connections 11,077 11,294 11,601 11,843 12,062 12,428 12,783 12,990 12,718 12,929 Solid Waste:

Street Sweeping, Miles per Year 22,386 21,225 22,163 23,406 20,730 20,133 21,903 23,796 23,950 21,819 Green Waste Pick-Ups 10,491 10,546 10,822 11,341 11,284 11,658 12,035 12,271 11,788 12,693 Recycling Pick-Ups 10,600 10,535 10,807 10,807 11,268 11,646 12,029 12,268 11,780 12,684 Sources: Various City Departments.

Notes: (1) Bookings, Collisions, and Citation numbers have decreased due to law changes and reduction in staffing. (2) In FY 2019-2020, the City offered two new youth programs (4h Stem & Volleyball), however, did not offer Tee-Ball or Spring Soccer due to COVID-19. (3) 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. (4) No youth enrollment due to COVID-19 and all programs being suspended. (5) In FY 2023-2024, the Solid Waste provider took over the billing for commercial Solid Waste accounts. (6) In FY 2024-2024, there was a software conversion and data is not available.

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OPERATING INFORMATION, CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM LAST 10 FISCAL YEARS
(122)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

FUNCTION/PROGRAM
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 15 14 18 16 19 19 22 23 23 23
Motorcycle Units 2 2 2 2 2 2 2 3 3 3
Fire:

Stations 2 2 2 2 2 2 2 2 2 2
Service Units 14 16 16 15 15 16 16 16 12 12
Public Works:

Streets:

Miles 123 123 123 123 123 125 131 136 136 136
Parks and Recreation:

Acreage 233 233 233 233 233 281 270 275 275 276
Playgrounds 32 32 32 32 32 36 36 35 35 39
Baseball/Softball Diamonds 5 5 5 5 5 9 9 9 9 9
Soccer/Football Fields 4 4 4 4 4 4 4 4 4 4
Basketball Courts 13 13 13 13 13 14 14 18 18 18
Water:

Water Mains (Miles) 172 172 172 172 172 172 172 172 172 172 Fire Hydrants 1,510 1,510 1,510 1,510 1,510 1,510 1,620 1,620 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 Sewer (Miles) 130 130 131 131 131 133 133 133 133 133 Solid Waste:

Street Sweepers 2 2 2 2 2 2 2 2 3 3
Source: Various City Departments

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Agenda Staff Report
TO: Chairperson and Successor Agency Members
FROM: Minerva Moreno, Financial Consultant
DATE: January 21, 2026
SUBJECT: Approval of the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for July 1, 2026 through June 30, 2027 TYPE OF REPORT: Agenda
______________________________________________________________________ Recommendation:

1. Review and approve the annual ROPS and Administrative Budget for July 1, 2026 through June 30, 2027.

2. Authorize staff to submit the ROPS to the Merced Countywide Oversight Board and the State Department of Finance
Background:

Effective February 1, 2012, all redevelopment agencies throughout the State, including the Los Banos Redevelopment Agency were dissolved as a result of the State Supreme Court decision upholding ABx1 26 (the “Dissolution Act”). Under the provisions of the Dissolution Act, the successor agency must prepare a Recognized Obligation Payment Schedule (ROPS) and administrative budget on an annual basis.

The ROPS lists the payments required to meet the Successor Agency’s obligations and serves as the Agency’s budget. Funding of the Successor Agency’s obligations are administered through Merced County after being approved by the State Department of Finance. The ROPS must be approved by the Merced Countywide Oversight Board and the State Department of Finance before it becomes effective. Once approved, the Successor Agency receives RPTTF to pay the obligations listed on the approved ROPS.

ITEM 11
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Discussion:

The attached ROPS lists payments required to meet the Successor Agency’s obligations. This includes bond payments and related costs, reimbursements to property owners for LLD fees, and administrative cost to implement the remaining Successor Agency business.

Fiscal Impact:

None.

Reviewed by:
_______________________________
Soknirorn Than, City Manager
Attachments:
• Resolution of the Successor Agency Board approving the ROPS 2026-27 and Administrative Budget
• Recognized Obligation Payments Schedules (ROPS) for July 1, 2026 through June 30, 2027
• Administrative Budget for July 1, 2026 through June 30, 2027 226
RESOLUTION NO. 2026-1

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY OF THE CITY OF LOS BANOS APPROVING A RECOGNIZED

OBLIGATION PAYMENT SCHEDULE (ROPS) AND ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2026-27
WHEREAS, the Successor Agency to the Redevelopment Agency of the City of Los Banos (the “Successor Agency”) is charged with implementing recognized enforceable obligations and winding down of the affairs of the former Los Banos Redevelopment Agency (the “Agency”) in accordance with the California Health and Safety Code; and
WHEREAS, Health and Safety Code Section 34177 requires the Successor Agency to prepare and adopt a “Recognized Obligation Payment Schedule” that lists all obligations of the Agency, including an administrative budget, that are enforceable within the meaning of subdivision (d) of Section 34171 for twelve-month periods, including July 1, 2026 through June 30, 2027 (“ROPS 2026-27”); and
WHEREAS, applicable law requires that the ROPS 2026-27 must be submitted to the Department of Finance and the State Controller’s office, after approval by the Merced Countywide Oversight Board (“Oversight Board”), no later than February 1, 2026 or be subject to penalties; and
WHEREAS, upon approval of the ROPS 26-27 and administrative budget by the Successor Agency, the Oversight Board to the Successor Agency will consider approval of the ROPS 2026-27 and administrative budget for the period July 1, 2026 through June 30, 2027 at its regularly scheduled meeting on January 21,2026; and WHEREAS, Successor Agency staff has prepared the ROPS 2026-27 for fiscal year 2026-27 attached hereto as Exhibit A and the administrative budget for the ROPS 2026-27 period attached hereto as Exhibit B in accordance with applicable law.

NOW, THEREFORE, THE SUCCESSOR AGENCY DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Recitals. Successor Agency Board hereby finds, resolves, and determines that the foregoing recitals are true and correct, and, together with information provided by the Successor Agency staff and the public, form the basis for the approvals, findings, resolutions, and determinations set forth below.

SECTION 2. CEQA Compliance. The approval of the ROPS through this Resolution does not commit the Successor Agency Board to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061 (b)(3).
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SECTION 3. Approval of the ROPS. The Successor Agency Board hereby approves the proposed ROPS 2026-27 in the form attached hereto as Exhibit A (the “Approved ROPS 2026-27”), including the agreements and obligations described in the Approved ROPS 2026-27, and the administrative budget attached hereto as Exhibit B, and hereby determines that such agreements and obligations constitute “enforceable obligations” and “recognized obligations” for all purposes of the Dissolution Act.

SECTION 4. Implementation. The Successor Agency Board hereby directs the Successor Agency staff to take all actions necessary under the Dissolution Act to file, post, mail or otherwise deliver via electronic mail, internet posting, and/or hardcopy, all notices and transmittals necessary or convenient in connection with the approval of the Approved ROPS 2026-27, and to take any other administrative actions necessary to ensure the validity of the Approved ROPS 2026-27 and the validity of any enforceable obligation approved by this Resolution. In addition, Successor Agency staff is hereby directed to make such non-substantive revisions to the Approved ROPS 2026-27 as may be necessary to submit the Approved ROPS 2026-27 in any modified form required by the Department of Finance, and the Approved ROPS 2026-27 as modified shall thereupon constitute the Approved ROPS 2026-27 as approved by the Successor Agency pursuant to this Resolution.

SECTION 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency Board declares that the Successor Agency Board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

SECTION 6. Certification. The Secretary on behalf of the Successor Agency Board shall certify to the adoption of this Resolution.

Effective Date. This Resolution shall take effect at the time and in the manner prescribed in Health and Safety Code Section 34179(h).

PASSED, APPROVED AND ADOPTED THIS 21st day of January,2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Chairperson, Successor Agency to the Redevelopment
Agency of the City of Los Banos
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ATTEST:
________________________________
Successor Agency Secretary
Exhibit A – ROPS 2026-27
Exhibit B – Administrative Budget FY 2026-27
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THIS PAGE IS INTENTIONALLY LEFT BLANK
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Los Banos
Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 23-24 Cash Balances
(07/01/23 - 06/30/24)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/23)
RPTTF amount should exclude "A" period distribution
amount.
46,033 10,980
2 Revenue/Income (Actual 06/30/24)
RPTTF amount should tie to the ROPS 23-24 total
distribution from the County Auditor-Controller
1,934,780
3 Expenditures for ROPS 23-24 Enforceable Obligations
(Actual 06/30/24)
1,954,555
4 Retention of Available Cash Balance (Actual 06/30/24) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
46,033 10,980
5 ROPS 23-24 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 23-24 PPA
form submitted to the CAC
No entry required (221,520)
6 Ending Actual Available Cash Balance (06/30/24)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $- $201,745
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EXHIBIT B

LOS BANOS SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
Fiscal Year 2026-2027
Audit of Successor Agency $ 10,000
Staff administration/support, reports, bond payments $ 25,000 Leibold McClendon & Mann and City Attorney $ 5,000
Outside Consultants $ 10,000
Total: $50,000
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