Manteca City Council
January 20, 2026

Fiscal Year Ended June 30, 2025
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
City of Manteca
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CITY OF MANTECA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
Prepared by

FINANCE DEPARTMENT
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CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
INTRODUCTORY SECTION:

Table of Contents .................................................................................................................................................. A-1 Letter of Transmittal ............................................................................................................................................. B-1 Mayor and City Council and Executive Team ..................................................................................................... C-1 California Map ...................................................................................................................................................... C-2 Citywide Organization Chart ................................................................................................................................ C-3 FINANCIAL SECTION:

Independent Auditor’s Report ................................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ...................................................................................................................... 20 Statement of Activities .......................................................................................................................... 21 Fund Financial Statements:

Governmental Funds:

Balance Sheet ..................................................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet with the Governmental Activities Net Position .......................................................................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 30 Reconciliation of the Net Change in Fund Balances Governmental Funds with the Change in Net Position Governmental Activities ............................................... 32 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund ............................................................................................................................... 34 Low and Moderate Income Housing Assets Special Revenue Fund .......................................... 36 Homeless Navigation Center Special Revenue Fund .................................................................. 37 Recreation Special Revenue Fund ............................................................................................... 38 Development Services Special Revenue Fund ............................................................................ 39 A-1

CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
FINANCIAL SECTION (Continued):

Proprietary Funds:

Statement of Net Position ...................................................................................................................... 42 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 43 Statement of Cash Flows ...................................................................................................................... 44 Fiduciary Fund:

Statement of Fiduciary Net Position ..................................................................................................... 48 Statement of Changes in Fiduciary Net Position .................................................................................. 49 Notes to Basic Financial Statements ........................................................................................................ 51 Required Supplementary Information:

Pension Plans:

Miscellaneous Plans:

Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 122 Schedule of Contributions ........................................................................................................ 124 Safety Plan
Schedule of Proportionate Share of the Net Pension Liability ................................................. 125 Schedule of Contributions ........................................................................................................ 126 PARS Enhancement Excess Benefit:

Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 127 Schedule of Contributions ........................................................................................................ 128 Other Post-Employment Benefits Plan:

Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................... 129 A-2

CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
FINANCIAL SECTION (Continued):

Supplementary Information:

Major Governmental Funds Other Than the General Fund and Special Revenue Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Public Facilities Implementation Plan Fund .............................................................................. 134 State Gasoline Tax Fund ............................................................................................................ 135 Gas Tax SB1 Fund ..................................................................................................................... 136 Government Building Facilities Fees Fund ................................................................................ 137 Non-major Governmental Funds:

Combining Balance Sheet .................................................................................................................... 142 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 146 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ....................................................................................................................... 150 Internal Service Funds:

Combining Statement of Net Position ............................................................................................ 160 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 161 Combining Statements of Cash Flows ............................................................................................ 162 Custodial Funds:

Combining Statement of Fiduciary Net Position ............................................................................ 164 Combining Statement of Changes in Fiduciary Net Position ......................................................... 165

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years ............................................................................. 170 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 172 A-3

CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
STATISTICAL SECTION (Continued):

Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................................. 174 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................ 176 General Revenues by Source – Last Ten Fiscal Years ............................................................................. 178 General Expenditures by Function – Last Ten Fiscal Years ................................................................... 179 Revenue Capacity:

Assessed and Estimated Value of Taxable Property – Last Ten Fiscal Years ........................................ 180 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................................... 181 Principal Property Taxpayers – Current Year and Nine Years Ago ....................................................... 182 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 183 Manteca Redevelopment Project Area No. 1 Top Twenty Assessed Values ......................................... 184 Manteca Redevelopment Project Area No. 2 Top Twenty Assessed Values ......................................... 185 Manteca Redevelopment Merged Project Area (2005 Merged Project Amended Area) Top Twenty assessed Values ............................................................................................................. 186 Manteca Redevelopment Amended Merged Project Area (2004 Amended Area) Top Twenty Assessed Values ............................................................................................................ 187 Taxable Sales by Category – Last Ten Calendar Years ......................................................................... 188 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ......................................................... 190 Principal Sales Tax Payers – Current Year and Nine Years Ago ........................................................... 191 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 192 Computation of Direct and Overlapping Debt ........................................................................................ 193 Computation of Legal Bonded Debt Margin .......................................................................................... 194 Revenue Bond Coverage – Water Revenue Bonds – Last Ten Fiscal Years .......................................... 195 Revenue Bond Coverage – Sewer Revenue Bonds – Last Ten Fiscal Years.......................................... 196 Bonded Debt Pledged-Revenue Coverage – Redevelopment Agency Tax Allocation Bonds – Last Ten Fiscal Years .................................................................................................................... 197 A-4

CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
STATISTICAL SECTION (Continued):

Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years ........................................................ 198 Principal Employers – Current Year and Nine Years Ago ..................................................................... 199 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................... 200 Operating Indicators and Capital Asset Statistics Function/Program – Last Ten Fiscal Years .............. 202 FINANCING AUTHORITY SECTION:

Independent Auditor’s Report ........................................................................................................................ 207 Authority-wide Financial Statements:

Statement of Net Position ...................................................................................................................... 212 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 213 Statement of Cash Flows ...................................................................................................................... 214 Notes to Basic Component Unit Financial Statements ......................................................................... 215 A-5
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B-1
B-2
B-3
B-4
B-5
B-6
Mayor and City Council
Gary Singh, Mayor
Charlie Halford, Vice Mayor
Regina Lackey, Councilmember
David Breitenbucher, Councilmember
Mike Morowit, Councilmember
Executive Team1
Toni Lundgren, City Manager
Jose Jasso, Assistant City Manager
David Nefouse, City Attorney
Cassandra Candini-Tilton, Director of Legislative
Services/City Clerk
Stephanie Van Steyn, Director of Human
Resources
Pennie Arounsack, Director of Information
Technology & Innovation
Matt Boring, Interim Director of Finance
Jose Jasso, Interim Director of Public Works
Kevin Jorgensen, Director of Engineering
Brad Wungluck, Director of Development Services
Stephen Schluer, Chief of Police
David Rudat, Interim Chief of Fire
1 Executive Team is as of June 30,
Fiscal Year 2024-2025
2025
C-1
•Manteca
C-2
Voters of Manteca
Mayor and City Council
Office of the City
Manager
Police Chief Fire Chief
Director of
Development
Services
Director of
Engineering
Director of
Public
Works
Director of
Legislative
Services/ City
Clerk
Director of
Finance
Director of
Information
Technology &
Engagement
Director of
Human
Resources
City Attorney
C-3
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Manteca, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Manteca, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

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

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the 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. 1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Emphasis of Matter
As discussed in Note 9E, the City restated the net position of governmental activities, business-type activities, the Sewer, Solid Waste, Golf and Transit Enterprise Funds and the Vehicle and Equipment Internal Service Funds related to the correction of capital asset balances. The emphasis of this matter does not constitute a modification to our opinions.
2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is 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 Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 13, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
January 13, 2026
4 MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management’s Discussion and Analysis provides an overview of the City of Manteca’s financial performance for the fiscal year ended June 30, 2025. This report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standard Board (GASB). The City encourages readers to consider this information in conjunction with the information provided in the accompanying basic financial statements and notes thereto.

FINANCIAL HIGHLIGHTS
The City’s assets and deferred outflows of resources exceeds its liabilities and deferred inflows of resources at the close of the 2024-25 fiscal year (FY) by $1,064.6 million (Net Position). Of this amount, $722.6 million reflects investments in capital assets, debt service and legally segregated taxes, grants, and fees; $305.9 million is Restricted Net Position, of which a substantial portion is associated with the City’s reserve policy; and $36.1 million is the combined Unrestricted Net Position. The combined Unrestricted Net Position reflects the inclusion of a Net Pension Liability of $144.2 million and a total Other PostEmployment Benefits (OPEB) Liability of $37.4 million in accordance with the GAAP. • As of June 30, 2025, the governmental activities reported a total net position of $726.6 million including: $482 million net investment in capital assets, $305.9 million in restricted net position, and a combined unrestricted balance of $(61.3) million.
• Business-type activities reported a combined net position of $338 million including: $240.6 million net investment in capital assets, and $97.4 million in unrestricted net position. • Governmental capital assets increased by $17.8 million in comparison to prior year assets representing additions such as land, streets, storm drainage, equipment, and construction in progress. The increase is also reflected in the governmental activities’ net investment in capital assets. • The City’s total liabilities decreased by $7.6 million over the prior year, primarily due to decreases in net pension and other post-employment benefits (OPEB). This decrease can be attributed to changes in assumptions made by the actuaries.
• As of June 30, 2025, the fund balance for the General Fund was $54.9 million including: $1.1 million for Non-Spendable items such as deposits, prepaid assets, advances from other funds, and inventory; $0.4 million of Restricted; $33.4 million Assigned for items such as economic revitalization and public facilities oversizing; and $20 million Unassigned.

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements within the Annual Comprehensive Financial Report, which is comprised of the following sections:
1) Introductory Section, which includes the Transmittal Letter and general information, 2) Management’s Discussion and Analysis,
3) The Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the Notes to these financial statements, 4) Required Supplemental Information,
5 5) Combining Statements for Non-major Governmental Funds and Internal Service Funds, 6) Statistical Information
The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.

Government-Wide Financial Statements
The Government-wide Financial Statements provide a longer-term view of the City’s activities as a whole and are presented in a manner similar to a private-sector business. These statements are comprised of:

Statement of Net Position – Presents information on all City assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them 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.

Statement of Activities – Presents information reflecting any change in the government’s net position during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs (regardless of the timing of related cash flows). Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation and compensated time leaves), and conversely revenues and expenses not being reported for some items that have already affected cash flows (unearned revenues for unexpended grand funding).

Both Government-wide financial statements distinguish the functions of the City that are principally supported by taxes, fees and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities). • Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, library, public safety, public works, parks and recreation, and streets and highways. These services are supported by general city revenues such as taxes, and by specific program revenues such as developer fees. • Business-type activities - All of the City’s enterprise activities are reported here, including golf, sewer, water, solid waste and transit. Unlike governmental services, these services are meant to be supported by charges paid by users based on the amount of the service they use.

The City’s business-type activities include not only the City of Manteca but also the activities of a separate legal entity, the Manteca Financing Authority (“MFA”). The City Council serves as the governing body of this component unit and the City is financially accountable for the MFA. The activities of the MFA are reported in the business-type activities.

Pursuant to ABX1 26, approved by Governor Brown on June 28, 2011, and upheld by the California State Supreme Court on December 29, 2011, the Manteca Redevelopment Agency (“RDA”) was dissolved on January 31, 2012. The former RDA is now administered under the name of Successor Agency (SA) to the Manteca Redevelopment Agency. The activities of the SA can be found in the Fiduciary Fund Section of the Financial Statements.
6 Fund Financial Statements
The Fund Financial Statements report the City’s operations in more detail than the Government-wide Statements and focus primarily on the short-term activities for the City’s General Fund and other Major Governmental Funds. The Governmental Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term asset and liability amounts. Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis and include all their assets and liabilities, current and long-term. Each Major Fund is presented individually, with all non-major Funds summarized and presented only in a single column. Subsequent schedules present the details of these non-major funds. Major Funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

A fund is a set of associated accounts that are used to capture and maintain control over resources that have been purposed for specific activities and objectives. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. • Governmental Funds – These funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources and are therefore prepared on the modified accrual basis. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.

The City of Manteca has a variety of governmental funds of which several are considered major funds for presentation purposes. Each major fund is presented separately in the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances. The financial information for the remaining non-major governmental funds is combined into a single, aggregated presentation.
• Proprietary Funds – The City maintains two different types of proprietary funds: Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. Internal Service Funds account for the financial activity of the City’s equipment/information technology pool, vehicle fleet pool, self-insurance/risk management, and payroll tax benefits. The revenues for Internal Service Funds are eliminated in the City-wide financial statements and any related profits or losses are returned to the activities which created them. Financial statements for proprietary funds are prepared on the full accrual basis and include all their assets and deferred outflows of resources, and liabilities and deferred inflows of resources, current and long-term.

Since the City’s Internal Service Funds provide goods and services only to the City’s governmental activities, their activities are reported only in total at the fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City Funds. • Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the Government-wide Financial Statements because the resources of those funds are not available to support the City’s own programs. The accounting used for Fiduciary Funds is similar to that used for Proprietary Funds.

With the dissolution of the RDA per ABX1 26 and AB 1484, the activities of the SA are reported as a Private Purpose Trust Fund in the Fiduciary Fund section. The custodial fund accounts for the Community Facilities District 2023-1 special assessment collections and debt service payments.

The City added the Public Business Improvement District (PBID) fund used to account for the improvement of general areas within Manteca’s downtown business community. 7 Notes to the Financial Statements
The Notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements.

Combining Statements
This section of the report includes additional detailed information about non-major governmental and internal service funds.

Required Supplemental Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the financial activities of the City’s pension and OPEB plans.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position – As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, combined net position (governmental and business-type activities) totaled $1,064.6 million as of June 30, 2025. This is an increase of $95.5 million from June 30, 2024.

The following table reflects the Summary of Net Position for the Fiscal Year Ended June 30, 2025 with comparative data for the Fiscal Year Ended June 30, 2024.

Summary of Net Position as of June 30
(in thousands of dollars)
8 The City’s Government-wide Net Position as of June 30, 2025, comprised the following:
• Cash and investments comprised $485.8 million, an increase of $64.3 million over the prior year.

Restricted cash held by fiscal agents and investments totaled $29.1 million, an increase of $10 million.
• Total Governmental and Business-type receivables were comprised of $41.8 million in current receivables and $30.5 million of long-term receivables. Long-term receivables are related to conditional grants and loans provided by the former RDA designed to encourage the construction of or improvement to low-to-moderate-income housing, as well as leases receivable. The conditional grants and loans have varying repayment terms and interest rates. • Net investment in capital assets of $722.6 million includes the City’s infrastructure in addition to all other City assets, net of the debt incurred to construct and/or acquire those assets. Net capital assets increased $25.8 million primarily due to the start of capital construction projects in various funds and developer dedicated infrastructure from Denali and Villa Ticino West subdivisions that were completed.
• Restricted Net Position, totaling $305.9 million, includes $206.2 million restricted for capital projects, $41.3 million restricted for redevelopment projects, and $58.4 million restricted for other projects as specified by funding source restrictions.
• The combined Unrestricted Net Position totals $36.1 million, which if positive, would be designated for day-to-day operations without constraints established by debt covenants or other legal requirements or restrictions. While these assets are technically unrestricted, most of these assets are committed or assigned for a specific use. The unrestricted balance reflects the inclusion of the Net Pension Liability of $144.2 million and the Total OPEB Liability of $37.4 million. 9 The Change in Net Position as expressed as the change in revenues and expenses through June 30, 2025, is further reflected in the Statement of Activities shown below.

Revenues
Total government-wide revenues increased by $57.4 million, or 21.8% over the prior year to a total of $321.2 million. Governmental Activities charges for services increased by $5.4 million compared to the prior year while operating grants and contributions decreased by $2.2 million. Community Development and Public Safety have seen the largest charges for services revenues increases with $5.3 and $1.3 million respectively. Public Works saw the largest charges for services decrease of $1.5 million.

Business-type Activities charges for services increased by $11.6 million and operating grants and contributions increased by $4.9 million compared to the prior year. Charges for activities can be attributed to an increase of Solid Waste and Sewer of $6 million and $3 million respectively. Water saw the largest 10 growth in PFIP zone 12 fees of $3.7 million and water service fees of $1.3 million. Solid Waste saw the revenue growth in Residential and Drop Box fees of $4.6 million and $0.9 million respectively.

General Revenues increased by $21.5 million including: an increase in property taxes of $2.7 million, a decrease in gain from sales of assets of $1.6 million due to fixed assets remaining in service, an increase of $4.1 million in sales tax as a result of the new Measure Q passing, an increase in other taxes of $0.6 million, an increase in interest income of $14.6 million as interest rates increased during the fiscal year, an increase in development agreements of $1.3 million, and a decrease in other revenue of $0.2 million.

Expenses
Expenses for the City totaled $225.7 million for the fiscal year ending June 30, 2025, an increase of $26.1 million, or 13.1% over the prior year. Governmental activities incurred $135.8 million of expenses. The largest expenses by activity were in Public Safety in the amount of $60.1 million. This was an increase of $7.6 million as compared to FY 2023-24. The bulk of this increase is related to personnel costs with an increase of $3.3 million. This increase is primarily due to higher mutual aid overtime associated with firefighter deployments, a 2% wage adjustment pursuant to the MOU, and the addition of capital projects.

The remaining major expenditures included Public Works $32.3 million, Community Development $16.1 million, and Streets & Highways $5.5 million.

Business-type activities incurred $89.9 million in expenses, an increase of $13.5 million from the previous FY. The largest expenses by activity were Sewer at $36.2 million, an increase of $8.2 million, and Water at $27.7 million, an increase of $3 million, for the year. In the Sewer Fund, there was an overall increase due to capital improvements at the treatment plant.

Governmental Activities
As presented in the following two graphs, the largest funding sources for governmental activities are Grants and Contributions (36.6%) and Taxes (35.4%). The largest uses of resources for governmental activities are Public Safety (44.2%) and Public Works (23.8%).

Charges for Services

16.9%
Grants and
Contributions

36.6%
Taxes

35.4%
Other Revenue

11.1%
11 Expenses by Program – Governmental Activities
Business-type Activities
In the Statement of Revenues, Expenses, and Changes in Fund Net Position for Proprietary Funds, operating income (loss) of Business-type Activities decreased by $1.7 million. From FY 2023-24, net operating income for Solid Waste increased by $3.5 million, Golf increased by $0.4 million, Sewer decreased $5.4 million, Water decreased $0.1 million and Transit decreased by $0.1 million.

General Government

10.8%
Community
Development

11.9%
Public Safety

44.2%
Library

0.4%
Public Works

23.8%
Parks and Recreation

4.8%
Streets and Highways

4.1%
(6,000,000)
(4,000,000)
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
Water Wastewater Solid Waste Transit Golf
2025 2024
12 FUND FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements.

The classification of spendable fund balances to committed, assigned, and unassigned, is intended to be helpful in measuring the resources available for spending at the end of the fiscal year. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

At June 30, 2025, the City’s governmental funds reported combined fund balances of $329.2 million, which is an increase of $64.9 million or 24.6% compared with the prior year. Governmental fund revenues were $194.9 million this year, an increase of $29.9 million, or 18.1%. The General Fund accounted for 42.2% of this revenue total. Expenditures were $130.6 million this year. Of this total, $73.8 million was in the General Fund, $20.7 million was in other major funds and $36.1 million was in non-major funds.

General Fund
General Fund revenues increased in FY 2024-25 by $9.2 million or 12.6% as compared to FY 2023-24.

Property taxes increased 9.6% and licenses and permits increased 44.1%. General Fund expenditures increased by $2.6 million or 3.6% more than the prior year expenditures.

At June 30, 2025, the General Fund balance was comprised of $1.1 million in non-spendable balances, $0.4 million in restricted balances, $33.4 million of assigned balances and $20 million in unassigned balance.

Fund balances have been classified in accordance with GAAP. While amounts have been categorized as unassigned, they may be informally earmarked by the City Council for specific purposes.

Low and Moderate Income Housing Assets Fund
On June 28, 2011 the State of California adopted ABx1 26, amended by AB 1484 on June 27, 2012, which dissolved redevelopment agencies as of January 31, 2012. All assets of the former RDA were transferred as prescribed by law to either the Housing Successor or to the Successor Agency.

The City of Manteca elected to become the Housing Successor and established the Low and Moderate Income Housing Assets Special Revenue Fund to account for the housing assets and activities previously provided by the Manteca Redevelopment Agency.

Homeless Navigation Center Fund
Established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State, and Federal Grants.

Homeless Navigation Center Fund revenues increased by $434.8 thousand or 583% as compared to FY 2023-24. Revenues exceeded expenses due to mutual aid income for operations resulting in an increase of $0.3 million to fund balance at June 30, 2025.
13 Recreation
Funding for the Recreation Fund is provided through fees collected from those who participate in recreational activities offered by the city. Revenues for the Recreation Fund decreased by $242.4 thousand or 25.9%. While expenditures increased by $56.2 thousand or 3.8%. The decrease in revenue is primarily due to investment earnings while the increase in expenditures is related to personnel costs.

Development Services
Development Services Fund was established to record revenues and expenditures directly related to development services, including planning and building safety. Revenues increased by $2.4 million or 23.9% as compared to FY 2023-24. Licenses and Permits increased by $1.3 million or 18.6%. Charges for Services increased by $409.6 thousand or 19.2%. Expenditures increased by $653 thousand or 11.4%. $230.1 thousand of the increase can be attributed to personnel expenditures. The ending Development Services fund balance at June 30, 2025 was $24.1 million.

Public Facilities Implementation Plan
Development fees are collected in the areas designated by the Public Facilities Implementation Plan (PFIP) to finance the construction of future transportation and storm drainage infrastructure. The PFIP was updated in FY 2012-13 except for the transportation element which was completed in FY 2018-19. Total fund balance was $62.3 million at year end an increase of 20.9% over the prior year. Revenues totaled $16.7 million for the year and expenditures were $5.9 million which includes $5.5 million of capital outlay for construction projects in FY 2024-25.

State Gasoline Tax
Established to account for the construction and maintenance of the street system in Manteca. Financing is provided by the City’s share of state gasoline taxes and State of California under AB2928. The allocation from AB2928 must be spent on local streets and roads maintenance, rehabilitation and reconstruction projects according to the tax levied for that purpose by San Joaquin County.

Revenue in the State Gasoline Tax Fund remained relatively constant at $2.7 million as compared to FY 2023-24. Expenditures remained steady at $3.2 million. Fund balance decreased by $481.2 thousand to $753.1 thousand at June 30, 2025.

Gas Tax SB1
Established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California. Revenues increased by $324.8 thousand or 13.2%. Expenditures increased by $1.8 million due to the increase of capital outlay. Fund Balance at June 30, 2025 was $7 million. 14 Government Building Facilities
Established to account for the financing and construction activities of the Civic Center expansion and other City facilities. Financing is provided by government building facilities fees imposed on developments.

Revenues increased by $2.9 million or 40.1%. Expenditures increased by $0.5 million due to the increase of capital outlay. Fund Balance at June 30, 2025 was $49.6 million.

Enterprise Funds
The City’s Enterprise Funds provide the same type of information found in the Government-Wide Financial Statements, but in more detail. The City’s Enterprise Funds are comprised of the Water Fund, the Sewer Fund, the Solid Waste Fund, the Golf Fund and the Transit Fund. Enterprise Fund net position totaled $338 million at June 30, 2025. Enterprise operating revenues were $87.3 million and operating expenses were $87.8 million in FY 2024-25.

Water Fund
The net position of the Water Fund is $118.7 million, consisting of $49.3 million unrestricted funds and a net investment in capital assets of $69.4 million at the end of the fiscal year.

Activities for the year were comprised of $27.5 million in operating revenues for the current year and $26.9 million in operating expenses. Charges for services showed an increase of 10% as compared to the prior year. Operating expenses increased by 13.5% from FY 2023-24.

Sewer Fund
The net position of the Sewer Fund is $199.2 million for the current year. Of the $199.2 million, $156.8 million of the fund’s net position is invested in capital assets with $42.4 million unrestricted. Operating revenues for the year were $30.8 million, an increase of 10.7% from the prior year due to new rate study and rate increase. Operating expenses increased by $8.4 million or 31.8% over the prior year. Supplies and other expenses, and personnel services experienced the largest increase year over year, a combined total increase of $7.7 million, or 62.1%.

Solid Waste Fund
Operating revenues for FY 2024-25 totaled $27.1 million, an increase of 27.8% over the prior year.

Operating expenses were $20.3 million an increase of 12.9% from the prior year, leaving the fund with a net operating income of $6.8 million for the year. Net position of the Solid Waste Fund is $11.2 million, of which $4 million is invested in capital assets and $7.2 million is unrestricted. Long-term liabilities total $13 million, with $8.5 million for net pension liability and $4.1 million for total OPEB liability. 15 Golf Fund
The operating revenue for this fund totaled $1.8 million as of June 30, 2025, an increase of 11.3%.

Operating expenses totaled $1.4 million, a decrease of 14.7% from the prior year. Net position of the Golf Fund is $1 million, of which $2.4 million is invested in capital assets and $(1.4) million is unrestricted. The General Fund has subsidized this fund when necessary, and there was a subsidy in fiscal year 2025 in the amount of $91.5 thousand in the form of a transfer in.

Transit Fund
The operating revenue for this fund totaled $0.1 million as of June 30, 2025. Operating expenses totaled $4.3 million. Net position of the Transit Fund is $7.9 million, of which $8 million is invested in capital assets and $(0.05) million is unrestricted.

GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget for the General Fund totaled $76.1 million in revenues, $79 million in expenditures, with expenditures exceeding revenues by $2.9 million. The difference between the original budget and the final amended budget was a increase in revenues of $2.3 million and an increase in expenditures of $7.3 million. Charges for current services accounted for the increase in revenues, while a variety of departmental charges accounted for the increase in expenditures, the largest being public safety and capital outlay.

General Fund revenues in total exceed their final budgeted forecasts by $6.2 million. Property taxes, sales taxes, use of money and property, other taxes and other revenue exceeded their final budgeted forecasts by a combined total of $7.9 million. Licenses and permits, fines and forfeitures, revenue from other agencies and charges for current services were under budget forecasts by $1.8 million. At the end of the fiscal year, the total actual expenditures of the General Fund were $73.8 million which was $5.2 million less than the total final amended budget.
16 CAPITAL ASSETS
At the end of FY 2024-25, the City had $775.4 million, net of depreciation, invested in a broad range of capital assets used in governmental and business type activities as outlined in Note 7.

DEBT SERVICE ADMINISTRATION
Each of the City’s debt issuances is discussed in detail in Note 8. At the end of the year, the City had zero long-term outstanding debt associated with Governmental Activities and $50.1 million in debt associated with Business-type Activities. Debt in the Business-type Activities are related to the Sewer and Water Revenue bonds.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Finance Department, at 1001 W Center, Manteca, CA 95337 or [email protected]. 17 This Page Left Intentionally Blank

CITY OF MANTECA

STATEMENT OF NET POSITION

AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all of the City’s Business-type Activities in a single column; these columns are followed by a Total column that presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources, available revenues and measurable expenditures.

The Statement of Activities presents the City’s expenses first, listed by program, followed by the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both of these Statements include the financial activities of the City and the Manteca Financing Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of this entity. 19 CITY OF MANTECA

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments (Note 3) $334,793,512 $150,979,998 $485,773,510 Restricted cash and investments (Note 3) 18,218,783 10,853,616 29,072,399 Accounts receivable, net 10,563,629 17,130,020 27,693,649 Taxes receivable 13,503,369 13,503,369
Interest receivable 577,782 47,007 624,789
Prepaids and deposits 4,124 4,124
Internal balances (Note 4D) 12,032,010 (12,032,010)
Long-term notes receivable (Notes 5 and 16D) 27,744,126 27,744,126 Employee notes receivable (Note 6) 24,374 24,374
Capital assets, not being depreciated (Note 7) 127,923,471 23,057,238 150,980,709 Capital assets, being depreciated (net) (Note 7) 356,893,758 267,597,235 624,490,993 Leases receivable (Note 14) 499,746 2,212,881 2,712,627 Total Assets 902,778,684 459,845,985 1,362,624,669

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 34,058,705 6,687,102 40,745,807 Deferred outflows related to OPEB (Note 11) 4,033,503 1,569,747 5,603,250 Total Deferred Outflows of Resources 38,092,208 8,256,849 46,349,057

LIABILITIES
Accounts payable 10,757,529 9,379,685 20,137,214
Contracts payable (Note 16C) 5,650,358 18,178,763 23,829,121 Refundable deposits 10,615,876 4,065,343 14,681,219
Accrued liabilities 3,974,620 602,564 4,577,184
Unearned revenue 23,045,456 2,555,395 25,600,851
Compensated absences (Note 1G):

Due within one year 1,180,937 379,819 1,560,756
Due in more than one year 5,400,072 1,657,009 7,057,081 Estimated claims liability (Note 13):

Due within one year 1,598,225 1,598,225
Due in more than one year 42,265 42,265
Long-term debt (Note 8):

Due within one year 3,110,000 3,110,000
Due in more than one year 46,979,265 46,979,265
Lease payable (Note 14):

Due within one year 63,583 11,526 75,109
Due in more than one year 63,456 8,180 71,636
Subscription payable (Note 15):

Due within one year 896,544 896,544
Due in more than one year 1,765,097 1,765,097
Net pension liability (Note 10):

Due in more than one year 115,415,417 28,777,887 144,193,304 Total OPEB liability (Note 11):

Due in more than one year 26,930,275 10,480,656 37,410,931 Total Liabilities 207,399,710 126,186,092 333,585,802

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions (Note 10) 1,707,220 1,707,220 Deferred inflows related to OPEB (Note 11) 4,639,134 1,805,447 6,444,581 Deferred inflows related to leases (Note 14) 470,657 2,157,595 2,628,252 Total Deferred Inflows of Resources 6,817,011 3,963,042 10,780,053 NET POSITION (Note 9):

Net investment in capital assets 482,028,549 240,545,502 722,574,051 Restricted for:

Capital projects 206,216,655 206,216,655
Redevelopment projects 41,333,855 41,333,855
Special revenue projects:

Development mitigation 14,491,182 14,491,182
Landscaping and lighting 1,937,496 1,937,496
Public safety 6,711,809 6,711,809
Other special revenue projects 35,247,426 35,247,426
Total Restricted Net Position 305,938,423 305,938,423
Unrestricted (61,312,801) 97,408,198 36,095,397
Total Net Position $726,654,171 $337,953,700 $1,064,607,871 See accompanying notes to basic financial statements
20 CITY OF MANTECA

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General government $14,647,356 $8,284,171 $4,433,447 ($1,929,738) ($1,929,738) Community development 16,097,481 14,683,017 404,706 $210,558 (799,200) (799,200) Public safety 60,079,637 3,105,403 1,547,135 2,438,366 (52,988,733) (52,988,733) Library 587,467 (587,467) (587,467)
Public works 32,323,376 3,527,153 74,065 12,832,836 (15,889,322) (15,889,322) Parks and recreation 6,529,667 5,826,290 8,776,533 8,073,156 8,073,156 Streets and highways 5,549,087 6,606,132 39,750,392 40,807,437 40,807,437 Interest and fiscal charges 14,103 (14,103) (14,103)
Total Governmental Activities 135,828,174 35,426,034 13,065,485 64,008,685 (23,327,970) (23,327,970) Business-type Activities:

Water 27,663,072 26,863,507 2,207,428 3,537,297 $4,945,160 4,945,160 Sewer 36,170,020 30,647,569 2,725,110 (2,797,341) (2,797,341) Solid waste 20,285,758 27,112,875 885 6,828,002 6,828,002 Golf 1,411,433 1,762,680 90,382 441,629 441,629
Transit 4,338,128 136,489 5,410,802 640,000 1,849,163 1,849,163 Total Business-type Activities 89,868,411 86,523,120 7,619,115 6,992,789 11,266,613 11,266,613 Total $225,696,585 $121,949,154 $20,684,600 $71,001,474 (23,327,970) 11,266,613 (12,061,357) General revenues:

Taxes:

Property taxes 30,296,255 30,296,255
Sales taxes 33,364,542 33,364,542
Other taxes 10,607,216 10,607,216
Interest income 19,844,868 9,330,036 29,174,904
Development agreements, unrestricted 2,066,881 2,066,881 Other revenue 1,336,341 779,049 2,115,390
Gain on sale of capital assets 1,152 1,152
Transfers, net (Note 4A) (618,394) 618,394
Total general revenues and transfers 96,897,709 10,728,631 107,626,340 Change in Net Position 73,569,739 21,995,244 95,564,983 Net Position-Beginning, as Restated (Note 9E) 653,084,432 315,958,456 969,042,888 Net Position-Ending $726,654,171 $337,953,700 $1,064,607,871 See accompanying notes to basic financial statements
21 This Page Left Intentionally Blank

FUND FINANCIAL STATEMENTS

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2025. Individual nonmajor funds may be found in the Supplemental Section.

GENERAL FUND
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.

LOW AND MODERATE INCOME HOUSING ASSETS FUND
Established to account for revenues and expenditures as a result of the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.

HOMELESS NAVIGATION CENTER FUND
Established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State and Federal Grants.

RECREATION FUND
Established to account for the operations of the City’s recreation program. Funding of these programs is provided through fees collected from those who participate in recreational activities.

DEVELOPMENT SERVICES FUND
Established to record revenues and expenditures directly related to development services, including planning and building safety.

PUBLIC FACILITIES IMPLEMENTATION PLAN FUND
This fund was initially established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the drainage and transportation elements of the Plan. The sewer and water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds.

STATE GASOLINE TAX FUND
Established to account for the construction and maintenance of the street system in Manteca. Financing is provided by the City’s share of state gasoline taxes and State of California under AB2928. The allocations from AB2928 must be spent on local streets and roads maintenance, rehabilitation and reconstruction projects according to the tax levied for that purpose by San Joaquin County.
23 FUND FINANCIAL STATEMENTS

MAJOR GOVERNMENTAL FUNDS (CONTINUED)
GAS TAX SB1 FUND
Established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California.

GOVERNMENT BUILDING FACILITIES FUND
Established to account for the financing and construction activities of the Civic Center expansion and other City facilities, as well as fire sprinkler fees. Financing is provided by government building facilities fees and fire fees imposed on developments.
24 This Page Left Intentionally Blank

CITY OF MANTECA

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2025
Low and Moderate Homeless
Income Housing Navigation Development
General Assets Center Recreation Services
ASSETS
Cash and investments (Note 3) $48,601,183 $16,283,087 $1,444,761 $24,204,044 Restricted cash and investments (Note 3) 423,373 $1,134,513 Accounts receivables (net of allowance for
estimated uncollectible accounts) 794,148 41,229 3,700 1,200,541 Taxes receivable 10,543,711
Interest receivable 576,874
Employee notes receivable (Note 6) 24,374
Due from other funds (Note 4B) 6,407,001
Prepaids and deposits 4,124
Advances to other funds (Note 4C) 1,081,780
Long-term notes receivable (Notes 5 and 16D) 405,000 28,307,948 Leases receivable (Note 14)
Total Assets $68,861,568 $29,483,690 $16,283,087 $1,448,461 $25,404,585

LIABILITIES
Accounts payable $3,425,189 $59,844 $73,926 $86,522
Contracts payable
Refundable deposits 912,974 216,168 20,563
Accrued liabilities 3,937,278
Due to other funds (Note 4B)
Advances from other funds (Note 4C)
Unearned revenue 5,102,337 15,995,513
Total Liabilities 13,377,778 16,055,357 290,094 107,085

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 184,113 1,172,830 Unavailable revenue - notes receivable
(Notes 5 and 16D) 405,000 $28,307,948
Deferred inflows related to leases (Note 14)
Total Deferred Inflows of Resources 589,113 28,307,948 1,172,830

FUND BALANCES
Fund balance (Note 9):

Nonspendable 1,085,904
Restricted 423,373 1,175,742 227,730 1,158,367 24,124,670 Committed
Assigned 33,357,433
Unassigned 20,027,967
Total Fund Balances 54,894,677 1,175,742 227,730 1,158,367 24,124,670 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $68,861,568 $29,483,690 $16,283,087 $1,448,461 $25,404,585 See accompanying notes to basic financial statements
26 Public Facilities State Government Other Total
Implementation Gasoline Gas Tax Building Governmental Governmental Plan Tax SB1 Facilities Funds Funds
$56,420,256 $742,642 $6,732,641 $50,033,550 $122,552,626 $327,014,790 5,255,542 11,405,355 18,218,783
2,557,831 560,905 5,299,145 10,457,499
216,433 437,211 2,306,014 13,503,369
908 577,782
24,374
6,407,001
4,124
10,797,628 11,879,408
28,712,948
499,746 499,746
$75,031,257 $959,075 $7,169,852 $50,594,455 $142,063,794 $417,299,824 $1,640,717 $205,987 $188,052 $409,966 $4,180,655 $10,270,858 721,140 28,406 749,546
6,373,786 3,091,577 10,615,068
3,937,278
4,070,530 4,070,530
1,521,666 1,521,666
1,947,606 23,045,456
10,257,309 205,987 188,052 409,966 13,318,774 54,210,402 2,485,366 560,905 319,392 4,722,606
28,712,948
470,657 470,657
2,485,366 560,905 790,049 33,906,211
1,085,904
62,288,582 753,088 6,981,800 49,623,584 124,455,509 271,212,445 538,578 538,578
2,960,884 36,318,317
20,027,967
62,288,582 753,088 6,981,800 49,623,584 127,954,971 329,183,211 $75,031,257 $959,075 $7,169,852 $50,594,455 $142,063,794 $417,299,824 27 CITY OF MANTECA
Reconciliation of the

GOVERNMENTAL FUNDS-BALANCE SHEET
with the

GOVERNMENTAL ACTIVITIES NET POSITION
JUNE 30, 2025
Total fund balances reported on the Governmental Funds Balance Sheet $329,183,211 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 480,110,323

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.

Cash and investments 7,778,722
Accounts receivable 106,130
Prepaid items
Capital assets, not being depreciated 1,507,629
Capital assets (net of accumulated depreciation) 3,199,277 Contracts and accounts payable (486,671)
Accrued liabilities (33,038)
Due to other funds (662,203)
Compensated absences (328,570)
Refundable deposits (808)
Estimated claims liability (1,640,490)
Net pension liability and deferred outflows/inflows related to pensions (3,408,977) Total OPEB liability and deferred outflows/inflows related to OPEB (751,967) Long-term debt - leases and subscriptions (1,566,131)

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 33,435,554

LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:

Long-term debt, including leases and subscription-based information technology arrangements (1,222,549)
Net pension liability and deferred outflows/inflows related to pensions (79,654,955) Total OPEB liability and deferred outflows/inflows related to OPEB (26,783,939) Compensated absences (6,252,439)
Interest payable (accrued liabilities) (4,304)
Contracts payable (4,900,812)
Allowance for conditional grants (968,822)
NET POSITION OF GOVERNMENTAL ACTIVITIES $726,654,171
See accompanying notes to basic financial statements
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CITY OF MANTECA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
Low and Moderate Homeless
Income Housing Navigation Development
General Assets Center Recreation Services

REVENUES
Property taxes $30,296,255
Sales taxes 23,129,313
Other taxes 11,930,796
Licenses and permits 1,902,176 $8,503,385
Fines and forfeitures 618,015
Use of money and property 3,005,795 $251,308 $237,172 $52,298 1,318,886 Revenue from other agencies 533,652 60,000
Charges for current services 10,058,081 641,836 2,547,819 Other revenue 807,428 272,208
Total Revenues 82,281,511 251,308 509,380 694,134 12,430,090

EXPENDITURES
Current:

General government 11,588,188 197,830 270,016
Community development 5,845,398
Public safety 41,111,652
Library 584,431
Public works 9,252,956
Parks and recreation 102,796 1,546,191
Streets and highways
Nondepartmental 9,587,616
Capital outlay 1,403,575 5,480 18,992
Debt service:

Principal 147,112 2,024 266,261
Interest and fiscal charges 11,469 3 2,416
Total Expenditures 73,789,795 197,830 1,553,698 6,403,083

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 8,491,716 251,308 311,550 (859,564) 6,027,007

OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 67,500
Issuance of lease 103,416 18,992
Issuance of SBITA 18,165 124,077
Transfers in (Note 4A) 24,640 840,000
Transfers (out) (Note 4A) (1,458,394)
Total Other Financing Sources (Uses) (1,244,673) 840,000 143,069 NET CHANGE IN FUND BALANCES 7,247,043 251,308 311,550 (19,564) 6,170,076 FUND BALANCES - as previously reported 47,647,634 924,434 (83,820) 1,177,931 17,954,594 ADJUSTMENTS (Note 9E)
Changes from nonmajor fund to major fund

BEGINNING FUND BALANCES (DEFICITS),
as adjusted 47,647,634 924,434 (83,820) 1,177,931 17,954,594 ENDING FUND BALANCES $54,894,677 $1,175,742 $227,730 $1,158,367 $24,124,670 See accompanying notes to basic financial statements
30 (Previously
NonMajor)
Public Facilities State Government Other Total
Implementation Gasoline Gas Tax Building Governmental Governmental Plan Tax SB1 Facilities Funds Funds
$30,296,255
$10,235,229 33,364,542
11,930,796
$7,333,739 2,492,372 20,231,672
618,015
$3,091,487 $171,301 $301,826 2,783,397 8,099,432 19,312,902 2,537,490 2,481,043 22,207,911 27,820,096
13,556,123 22,917,197 49,721,056
29,766 535,622 1,645,024
16,647,610 2,738,557 2,782,869 10,117,136 66,487,763 194,940,358 340,509 12,396,543
5,845,398
10,757,833 51,869,485
584,431
404,402 30 4,162,146 13,819,534
2,013,977 3,662,964
3,217,436 63,830 2,593,850 5,875,116
28,592 9,616,208
5,478,228 2,326 2,828,579 497,862 16,236,811 26,471,853 7,122 422,519
1,076 14,964
5,882,630 3,219,792 2,892,409 497,862 36,141,916 130,579,015 10,764,980 (481,235) (109,540) 9,619,274 30,345,847 64,361,343 67,500
22,108 144,516
794,682 936,924
864,640
(1,458,394)
816,790 555,186
10,764,980 (481,235) (109,540) 9,619,274 31,162,637 64,916,529 51,523,602 1,234,323 7,091,340 136,796,644 264,266,682
40,004,310 (40,004,310)
51,523,602 1,234,323 7,091,340 40,004,310 96,792,334 264,266,682 $62,288,582 $753,088 $6,981,800 $49,623,584 $127,954,971 $329,183,211 31 CITY OF MANTECA
Reconciliation of the

NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS
with the

CHANGE IN NET POSITION - GOVERNMENTAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
The schedule below reconciles the Net Change in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $64,916,529 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capitalized expenditures are therefore added back to fund balance 18,227,962 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $527,891 which has already been allocated to serviced funds) (18,713,069) Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Fund Statements because no cash changed hands. 16,497,958

LONG-TERM DEBT ISSUANCE AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Issuance of debt (lease liabilities) is deducted from fund balance (144,516) Issuance of debt (subscription liabilities) is deducted from fund balance (936,924) Repayment of lease principal is added back to fund balance 201,836 Repayment of SBITA principal is added back to fund balance 220,683

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Unavailable revenue (541,722)
Contracts and accounts payable 3,209,186
Compensated absences (110,209)
Interest payable 861
Allowance for conditional grants (40,499)
Net pension liability and deferred outflows/inflows related to pensions (7,275,849) Total OPEB liability and deferred outflows/inflows related to OPEB (687,602)

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds (1,254,886) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $73,569,739 See accompanying notes to basic financial statements
32 This Page Left Intentionally Blank

CITY OF MANTECA

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Property taxes $28,427,500 $28,325,686 $30,296,255 $1,970,569 Sales taxes 18,967,207 19,496,634 23,129,313 3,632,679
Other taxes 11,740,000 11,740,000 11,930,796 190,796
Licenses and permits 2,061,000 2,181,000 1,902,176 (278,824) Fines and forfeitures 1,675,000 1,675,000 618,015 (1,056,985) Use of money and property 1,000,000 1,000,000 3,005,795 2,005,795 Revenue from other agencies 500,000 551,000 533,652 (17,348) Charges for current services 8,811,800 10,479,720 10,058,081 (421,639) Other revenue 604,500 670,445 807,428 136,983
Total Revenues 73,787,007 76,119,485 82,281,511 6,162,026 EXPENDITURES:

Current:

General government:

Legislative 1,487,549 1,561,352 1,267,305 294,047
City Attorney 1,566,722 1,532,422 1,345,371 187,051
Administration 4,565,512 4,863,687 4,203,819 659,868
Human resources 1,448,842 1,555,745 1,554,057 1,688
Financial services 3,185,309 3,329,143 3,217,636 111,507 Total general government 12,253,934 12,842,349 11,588,188 1,254,161 Public safety:

Police 24,953,040 25,745,158 25,522,565 222,593
Fire 12,862,853 14,770,785 14,948,339 (177,554)
Animal control 641,346 667,723 640,748 26,975
Total public safety 38,457,239 41,183,666 41,111,652 72,014 Library 687,862 746,888 584,431 162,457
Public works:

Engineering 700,196 660,065 764,003 (103,938)
Street maintenance 220,883 180,133 110,552 69,581
Storm drain maintenance and operation 919,895 884,407 857,193 27,214 Vehicle maintenance 331,397 383,642 376,946 6,696
Building maintenance 7,618,885 7,708,523 7,144,262 564,261 Total public works 9,791,256 9,816,770 9,252,956 563,814 (Continued)
34 CITY OF MANTECA

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
Parks and recreation:

Senior center 960 102,796 (101,836)
Total parks and recreation 960 102,796 (101,836)
Nondepartmental charges 9,568,080 9,890,248 9,587,616 302,632 Capital outlay 906,000 4,507,733 1,403,575 3,104,158
Debt service:

Principal 147,112 (147,112)
Interest and fiscal charges 11,469 (11,469)
Total debt service 158,581 (158,581)
Total Expenditures 71,664,371 78,988,614 73,789,795 5,198,819

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,122,636 (2,869,129) 8,491,716 11,360,845

OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 67,500 67,500
Issuance of lease 103,416 103,416
Issuance of SBITA 18,165 18,165
Transfers in 24,640 24,640
Transfers (out) (1,281,500) (1,281,500) (1,458,394) (176,894) Total Other Financing Sources (Uses) (1,281,500) (1,256,860) (1,244,673) 12,187 NET CHANGE IN FUND BALANCE $841,136 ($4,125,989) 7,247,043 $11,373,032 BEGINNING FUND BALANCE 47,647,634
ENDING FUND BALANCE $54,894,677
See accompanying notes to basic financial statements
35 CITY OF MANTECA

LOW AND MODERATE INCOME HOUSING ASSETS FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Use of money and property $251,308 $251,308
Total Revenues 251,308 251,308
NET CHANGE IN FUND BALANCE 251,308 $251,308
BEGINNING FUND BALANCE 924,434
ENDING FUND BALANCE $1,175,742
See accompanying notes to basic financial statements
36 CITY OF MANTECA

HOMELESS NAVIGATION CENTER FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Use of money and property $237,172 $237,172
Revenue from other agencies $3,000,000 (3,000,000)
Other revenue 272,208 272,208
Total Revenues 3,000,000 509,380 (2,490,620)
EXPENDITURES:

Current:

General government 182,414 197,830 (15,416)
Capital outlay 18,742,998 18,742,998
Total Expenditures 18,925,412 197,830 18,727,582
NET CHANGE IN FUND BALANCE ($15,925,412) 311,550 $16,236,962 BEGINNING FUND BALANCE (DEFICIT) (83,820)
ENDING FUND BALANCE (DEFICIT) $227,730
See accompanying notes to basic financial statements
37 CITY OF MANTECA

RECREATION FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Use of money and property $52,298 $52,298
Charges for current services $509,260 $509,260 641,836 132,576 Total Revenues 509,260 509,260 694,134 184,874
EXPENDITURES:

Current:

Parks and recreation: 1,759,240 1,773,563 1,546,191 227,372 Capital outlay 17,956 5,480 12,476
Debt service:

Principal 2,024 (2,024)
Interest and fiscal charges 3 (3)
Total Expenditures 1,759,240 1,791,519 1,553,698 237,821

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,249,980) (1,282,259) (859,564) 422,695

OTHER FINANCING SOURCES (USES)
Transfers in 840,000 840,000 840,000
Total Other Financing Sources (Uses) 840,000 840,000 840,000 NET CHANGE IN FUND BALANCE ($409,980) ($442,259) (19,564) $422,695 BEGINNING FUND BALANCE 1,177,931
ENDING FUND BALANCE $1,158,367
See accompanying notes to basic financial statements
38 CITY OF MANTECA

DEVELOPMENT SERVICES FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:

Licenses and permits $5,000,000 $7,100,000 $8,503,385 $1,403,385 Use of money and property 20,000 670,000 1,318,886 648,886 Revenue from other agencies 60,000 60,000
Charges for current services 1,630,000 2,304,500 2,547,819 243,319 Total Revenues 6,650,000 10,074,500 12,430,090 2,355,590 EXPENDITURES:

Current:

General government:

City Attorney 250,000 250,000 135,296 114,704
Financial services 100,000 158,000 134,720 23,280
Total general government 350,000 408,000 270,016 137,984 Community development 7,571,317 9,722,242 5,845,398 3,876,844 Capital outlay 18,992 (18,992)
Debt service:

Principal 266,261 (266,261)
Interest and fiscal charges 2,416 (2,416)
Total debt service 268,677 (268,677)
Total Expenditures 7,921,317 10,130,242 6,403,083 3,727,159

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,271,317) (55,742) 6,027,007 6,082,749

OTHER FINANCING SOURCES (USES)
Issuance of lease 18,992 18,992
Issuance of SBITA 124,077 124,077
Transfers (out) (270) 270
Total Other Financing Sources (Uses) (270) 143,069 143,339 NET CHANGE IN FUND BALANCE ($1,271,317) ($56,012) 6,170,076 $6,226,088 BEGINNING FUND BALANCE 17,954,594
ENDING FUND BALANCE $24,124,670
See accompanying notes to basic financial statements
39 This Page Left Intentionally Blank

MAJOR PROPRIETARY FUNDS
Proprietary funds account for 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 has determined all of its enterprise funds to be major funds in fiscal 2025, as identified below.

WATER FUND
Accounts for the provision of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance and billing and collection.

SEWER FUND
Accounts for the provision of sewer services to residents of the City and some residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

SOLID WASTE FUND
Accounts for the provision of solid waste collection services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

GOLF FUND
Accounts for the operations of the City’s municipal golf course. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

TRANSIT FUND
Established to account for all funding received (federal, state, and local transportation) associated with the formation and operation of a city managed public transit system. 41 CITY OF MANTECA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2025
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds
ASSETS
Current assets
Cash and investments (Note 3) $61,847,901 $72,706,040 $16,106,580 $319,477 $150,979,998 $7,778,722 Accounts receivables (net of allowance for
estimated uncollectible accounts) 2,611,684 5,729,181 3,907,335 55,780 $4,826,040 17,130,020 106,130 Interest receivable 47,007 47,007
Prepaids and deposits
Lease receivable (Note 14) 54,772 54,772
Total Current Assets 64,459,585 78,435,221 20,013,915 477,036 4,826,040 168,211,797 7,884,852 Non-current assets
Restricted cash and investments (Note 3) 6,455,769 4,397,847 10,853,616 Advances to other funds (Note 4C) 453,082 346,567 799,649 Lease receivable (Note 14) 2,158,109 2,158,109
Capital assets not being depreciated (Note 7) 6,348,849 14,529,089 361,619 1,240,955 576,726 23,057,238 1,507,629 Capital assets (net of accumulated
depreciation) (Note 7) 86,236,058 169,203,149 3,650,013 1,133,777 7,374,238 267,597,235 3,199,277 Total Non-Current Assets 99,493,758 188,476,652 4,011,632 4,532,841 7,950,964 304,465,847 4,706,906 Total Assets 163,953,343 266,911,873 24,025,547 5,009,877 12,777,004 472,677,644 12,591,758

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 1,963,186 2,409,936 1,972,624 232,814 108,542 6,687,102 1,031,930 Deferred outflows related to OPEB (Note 11) 474,001 354,034 613,604 128,108 1,569,747 110,150 Total Deferred Outflows of Resources 2,437,187 2,763,970 2,586,228 360,922 108,542 8,256,849 1,142,080

LIABILITIES
Current liabilities
Accounts payable 2,910,339 4,592,992 1,574,955 88,255 213,144 9,379,685 486,671 Due to other funds (Note 4B) 1,674,268 1,674,268 662,203 Refundable deposits 3,124,261 889,025 36,166 15,891 4,065,343 808 Unearned revenue 2,555,395 2,555,395
Interest payable 495,509 107,045 10 602,564 33,038
Compensated absences (Note 1G) 124,485 140,689 103,820 8,845 1,980 379,819 48,342 Estimated claims liability (Note 13) 1,598,225
Revenue bonds (Note 8) 1,800,000 1,310,000 3,110,000
Lease liability (Note 14) 1,582 4,970 4,974 11,526 11,810 Subscription liability (Note 15) 752,508
Total Current Liabilities 8,456,176 7,044,721 1,719,925 97,100 4,460,678 21,778,600 3,593,605 Long-term liabilities
Contracts payable 1,963,985 16,214,778 18,178,763
Advances from other funds (Note 4C) 3,313,092 7,844,299 11,157,391 Compensated absences (Note 1G) 447,881 643,089 418,087 90,043 57,909 1,657,009 280,228 Estimated claims liability (Note 13) 42,265
Revenue bonds (Note 8) 21,402,623 25,576,642 46,979,265 Net pension liability (Note 10) 8,448,554 10,371,141 8,489,172 1,001,912 467,108 28,777,887 4,440,907 Total OPEB liability (Note 11) 3,164,741 2,363,763 4,096,817 855,335 10,480,656 735,428 Lease liability (Note 14) 4,088 4,092 8,180 12,338
Subscription liability (Note 15) 789,475
Total Long-Term Liabilities 38,740,876 63,017,800 13,008,168 1,947,290 525,017 117,239,151 6,300,641 Total Liabilities 47,197,052 70,062,521 14,728,093 2,044,390 4,985,695 139,017,751 9,894,246

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to lease (Note 14) 2,157,595 2,157,595 Deferred inflows related to OPEB (Note 11) 545,173 407,193 705,737 147,344 1,805,447 126,689 Total Deferred Inflows of Resources 545,173 407,193 705,737 2,304,939 3,963,042 126,689 NET POSITION (Note 9):

Net investment in capital assets 69,380,702 156,836,538 4,002,566 2,374,732 7,950,964 240,545,502 3,140,775 Unrestricted 49,267,603 42,369,591 7,175,379 (1,353,262) (51,113) 97,408,198 572,128 Total Net Position $118,648,305 $199,206,129 $11,177,945 $1,021,470 $7,899,851 $337,953,700 $3,712,903 See accompanying notes to basic financial statements
42 CITY OF MANTECA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds

OPERATING REVENUES
Charges for services $26,863,507 $30,647,569 $27,112,875 $1,762,680 $136,489 $86,523,120 $6,358,250 Insurance premium contribution from other funds 7,990,830 Miscellaneous 638,194 112,010 27,800 1,045 779,049 409,718 Total Operating Revenues 27,501,701 30,759,579 27,112,875 1,790,480 137,534 87,302,169 14,758,798

OPERATING EXPENSES
Personnel services 6,152,151 7,591,773 5,903,259 807,687 313,909 20,768,779 4,141,615 Contractual services 661,076 2,176,401 6,521,926 2,916 2,550,917 11,913,236 218,041 Supplies and other expenses 11,650,293 12,547,069 2,488,421 161,840 228,376 27,075,999 456,180 Utilities 1,345,676 2,861,004 45,186 164,760 70,732 4,487,358 728,388 Repairs and maintenance 292,295 1,250,915 99,999 117,727 121,193 1,882,129 2,163,537 Vehicle maintenance and operations 3,257 16,388 641,130 660,775 Interdepartmental 1,835,496 2,018,391 2,234,137 14,549 544,124 6,646,697 356,295 Insurance 483,261 892,187 546,094 73,821 1,995,363 6,539,421 Claims 1,223,968
Depreciation (Note 7) 4,349,306 5,308,551 1,730,477 66,295 470,086 11,924,715 527,891 Miscellaneous 91,012 278,714 74,904 1,838 38,791 485,259 91,690 Total Operating Expenses 26,863,823 34,941,393 20,285,533 1,411,433 4,338,128 87,840,310 16,447,026 Operating Income (Loss) 637,878 (4,181,814) 6,827,342 379,047 (4,200,594) (538,141) (1,688,228)

NONOPERATING REVENUES (EXPENSES)
Interest income 3,905,344 4,679,124 696,065 117,452 (67,949) 9,330,036 337,399 Gain on sale of capital assets 1,152 1,152 154,346
Interest (expense) and fiscal charges (799,249) (1,228,627) (225) (2,028,101) (33,763) Intergovernmental grants 2,207,428 885 5,410,802 7,619,115 Net Nonoperating Revenues (Expenses) 5,313,523 3,451,649 696,725 117,452 5,342,853 14,922,202 457,982 Income (Loss) Before Contributions and Transfers 5,951,401 (730,165) 7,524,067 496,499 1,142,259 14,384,061 (1,230,246) Capital grants 90,382 640,000 730,382
Contributions 3,537,297 2,725,110 6,262,407
Transfers in (Note 4A) 526,894 91,500 618,394
Transfers out (Note 4A) (24,640)
Net Contributions and Transfers 3,537,297 3,252,004 181,882 640,000 7,611,183 (24,640) Change in net position 9,488,698 2,521,839 7,524,067 678,381 1,782,259 21,995,244 (1,254,886) BEGINNING NET POSITION, as previously reported 109,159,607 196,559,188 3,778,980 333,199 5,551,609 315,382,583 5,056,436 ADJUSTMENTS (Note 9E)
Error Correction - Capital Assets 125,102 (125,102) 9,890 565,983 575,873 (88,647) BEGINNING NET POSITION, AS RESTATED 109,159,607 196,684,290 3,653,878 343,089 6,117,592 315,958,456 4,967,789 ENDING NET POSITION $118,648,305 $199,206,129 $11,177,945 $1,021,470 $7,899,851 $337,953,700 $3,712,903 See accompanying notes to basic financial statements
43 CITY OF MANTECA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Transit Totals Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $28,111,019 $28,469,895 $26,250,007 $1,770,458 $140,535 $84,741,914 $14,670,810 Payments to suppliers (14,180,952) (19,342,362) (9,381,678) (676,080) (3,033,841) (46,614,913) (10,686,131) Payments to or on behalf of employees (6,200,985) (7,424,755) (6,440,428) (1,054,489) (371,582) (21,492,239) (3,477,783) Internal activity - payments to other funds (1,835,496) (2,018,391) (2,234,137) (14,549) (544,124) (6,646,697) Claims paid (933,065)
Cash Flows from Operating Activities 5,893,586 (315,613) 8,193,764 25,340 (3,809,012) 9,988,065 (426,169)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Intergovernmental grants 2,207,428 885 5,421,339 7,629,652 Interfund receipts (payments) (384,423) (384,423) 662,203 Transfers in from other funds 526,894 91,500 618,394
Transfers (out) to other funds (24,640)
Cash Flows from Noncapital Financing Activities 2,207,428 526,894 885 91,500 5,036,916 7,863,623 637,563

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Lease activity (72,715) (72,715)
Acquisition of capital assets, net (4,988,712) (3,511,923) (666,970) (349,169) (1,799,955) (11,316,729) (1,394,745) Proceeds from sale of capital assets 1,152 1,152 154,346 Capital grants 90,382 640,000 730,382
Long-term debt payment - principal (1,710,000) (1,200,000) (2,910,000) Lease payment - principal (1,572) (5,266) (4,046) (10,884) (9,039) Subscription payment - principal (774,974)
Long-term debt payment - interest and fiscal charges (1,035,314) (1,317,661) (223) (2,353,198) (19,946) Cash Flows from Capital and Related Financing Activities (7,735,598) (6,033,698) (671,239) (331,502) (1,159,955) (15,931,992) (2,044,358)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest 3,905,344 4,679,124 696,065 94,741 (67,949) 9,307,325 337,399 Cash Flows from Investing Activities 3,905,344 4,679,124 696,065 94,741 (67,949) 9,307,325 337,399 Net Cash Flows 4,270,760 (1,143,293) 8,219,475 (119,921) 11,227,021 (1,495,565) Cash and investments at beginning of period 64,032,910 78,247,180 7,887,105 439,398 150,606,593 9,274,287 Cash and investments at end of period $68,303,670 $77,103,887 $16,106,580 $319,477 $161,833,614 $7,778,722 (Continued)
See accompanying notes to basic financial statements
44 CITY OF MANTECA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Transit Totals Funds
Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:

Operating income (loss) $637,878 ($4,181,814) $6,827,342 $379,047 ($4,200,594) ($538,141) ($1,688,228) Adjustments to reconcile operating income (loss) to cash flows from operating activities:

Depreciation 4,349,306 5,308,551 1,730,477 66,295 470,086 11,924,715 527,891 Change in assets and liabilities:

Accounts receivables (net of allowance for
estimated uncollectible accounts) (154,758) (1,141,597) (870,945) (20,022) (2,187,322) (87,988) Prepaids and deposits 26,544
Accounts payable and other accrued expenses 1,309,692 882,263 1,044,059 (153,178) (20,831) 3,062,005 (159,123) Contracts payable (199,698) (1,350,034) (1,549,732)
Compensated absences 1,177 137,698 (25,608) 6,030 17,692 136,989 328,570 Claims liability 290,903
Net pension liability, deferred outflows and inflows (208,154) (9,174) (77,220) (73,827) (75,365) (443,740) 346,515 Total OPEB liability, deferred outflows and inflows 158,143 38,494 (434,341) (179,005) (416,709) (11,253) Cash Flows from Operating Activities $5,893,586 ($315,613) $8,193,764 $25,340 ($3,809,012) $9,988,065 ($426,169) NONCASH TRANSACTIONS:

Contributions of capital assets, net $3,537,297 $2,725,110 $6,262,407 Amortization of bond premium $193,316 $84,094 $277,410
Issuance of lease asset $9,948 $9,958 $19,906 $30,026
Issuance of lease liability ($9,948) ($9,958) ($19,906) ($30,026) Issuance of SBITA asset $1,577,706
Issuance of SBITA liability ($1,577,706)
See accompanying notes to basic financial statements
45 This Page Left Intentionally Blank

FIDUCIARY FUNDS

FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND The Fund is used to account for the activities of the Successor Agency to the former Manteca Redevelopment Agency.

CUSTODIAL FUNDS
Custodial funds account for assets held by the City in a custodial capacity for individuals or other parties outside of the City’s reporting entity.
47 CITY OF MANTECA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments (Note 3) $8,187,004 $935,722
Restricted cash and investments (Note 3) 45,078 2,127,494 Accounts receivable 47,500
Capital assets, not being depreciated (Note 17C) 726,026 Capital assets, being depreciated (net) (Note 17C) 1,363,472 Total Assets 10,321,580 3,110,716

LIABILITIES
Accounts payable 249 93,888
Due to the County Auditor-Controller (Note 17E) 1,760,625 Interest payable 602,688
Refundable deposits 50,284
Long-term obligations (Note 17D):

Due in one year 4,450,000
Due in more than one year 78,466,197
Total Liabilities 85,279,759 144,172

NET POSITION (DEFICIT)
Restricted for private purpose trust ($74,958,179)
Restricted for other purposes $2,966,544
See accompanying notes to basic financial statements
48 CITY OF MANTECA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Successor Agency
to the
Redevelopment
Agency
Private-Purpose Custodial
Trust Fund Funds

ADDITIONS
Property taxes $5,238,030
Net investment income 286,232 $72,699
Charges for services 1,112,352
Contributions from property owners 16,220,775
Other revenue 77,500
Total additions 5,524,262 17,483,326

DEDUCTIONS
Professional services 13,938,496
General government 144,092
Community development 259,330
Depreciation (Note 17C) 125,618
Interest and fiscal charges 2,201,086 1,358,537
Total deductions 2,586,034 15,441,125
CHANGE IN NET POSITION 2,938,228 2,042,201

NET POSITION (DEFICIT) RESTRICTED FOR PRIVATE

PURPOSE OR OTHER PURPOSES
Beginning of year (77,896,407) 924,343
End of year ($74,958,179) $2,966,544
See accompanying notes to basic financial statements
49 This Page Left Intentionally Blank

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Manteca was incorporated as a general law city on May 28, 1918. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, sanitation, water, solid waste, culture-recreation, public improvements, planning and zoning, general administration services, and redevelopment.

A. Reporting Entity
The accompanying basic financial statements of the City of Manteca include the financial activities of the City as well as the Manteca Financing Authority, which is controlled by and dependent on the City. While this is a separate legal entity, City Council serves in separate session as its governing body and its financial activities are integral to those of the City. The financial activities have been aggregated and merged (termed “blended”) with those of the City in the accompanying financial statements.

The Manteca Financing Authority is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. The Authority has the power to purchase bonds issued by any local agency at public, or negotiated sale, and may sell such bonds to public or private purchasers at public, or negotiated sale. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the Sewer Enterprise Fund. Financial statements for the Manteca Financing Authority component unit may be obtained from the City of Manteca at 1001 West Center Street, Manteca, California, 95337.

The City of Manteca Housing Authority, formed in February 2011, is a separate government entity whose purpose is to assist with the housing for the City’s low and moderate income residents. The Housing Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Housing Authority. The Housing Authority did not undertake any transactions during fiscal year 2025. Separate financial statements are not issued for the City of Manteca Housing Authority.

The financial statements of the City of Manteca Recreational Facilities, Inc. are excluded from the City’s basic financial statements because the City does not control the Corporation’s daily operations or operating budgets and because the Corporation has provided its own capital.

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. 51 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City and its blended component units). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities, except for interfund services provided and used. Interfund services provided and used are not eliminated in the process of consolidation. 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 meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. 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 (proprietary) 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 and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. Major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type. 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 used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund. 52 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) LOW AND MODERATE INCOME HOUSING ASSETS FUND - Established to account for revenues and expenditures as a result of the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the revenues and expenditures related to the low and moderate income housing program. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.

HOMELESS NAVIGATION CENTER FUND - Established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State and Federal Grants.

RECREATION FUND - Established to account for the operations of the City’s recreation program.

Funding of these programs is provided through fees collected from those who participate in recreational activities.

DEVELOPMENT SERVICES FUND - Established to record revenues and expenditures directly related to development services, including planning and building safety.

PUBLIC FACILITIES IMPLEMENTATION PLAN FUND - Established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the drainage and transportation elements of the Plan. The sewer and water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds.

STATE GASOLINE TAX FUND - Established to account for the construction and maintenance of the street system in Manteca. Financing is provided by the City’s share of state gasoline taxes and State of California under AB2928. The allocations from AB2928 must be spent on local streets and roads maintenance, rehabilitation and reconstruction projects according to the tax levied for that purpose by San Joaquin County.

GAS TAX SB1 FUND - Established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California.

GOVERNMENT BUILDING FACILITIES FUND - Established to account for the financing and construction activities of the Civic Center expansion and other City facilities, as well as fire sprinkler fees. Financing is provided by government building facilities fees and fire fees imposed on developments.

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

WATER FUND - Accounts for the provision of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, billing and collection. The water developer impact fees collected and expended in connection with the Public Facilities Implementation Plan are also accounted for in this fund.

SEWER FUND - Accounts for the provision of sewer services to residents of the City and some residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection. The sewer developer impact fees collected and expended in connection with the Public Facilities Implementation Plan are also accounted for in this fund.

53 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) SOLID WASTE FUND - Accounts for the provision of solid waste collection services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection.

GOLF FUND - Accounts for the operations of the City’s municipal golf course. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection.

TRANSIT FUND - Established to account for all funding received (federal, state, and local transportation) associated with the formation and operation of a city managed public transit system.

The City also reports the following fund types:

Internal Service Funds. The funds account for vehicle, equipment and insurance; all of which are provided to other departments on a cost-reimbursement basis.

Fiduciary Funds. Fiduciary Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The Successor Agency to the Manteca Redevelopment Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. Custodial funds are used to account for assets held by the City for the Community Facilities District 2023-1 and the Public Business Improvement District (PBID). The financial activities of these funds are excluded from the government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.

D. Basis of Accounting
The government-wide, proprietary fund and fiduciary fund 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 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 reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, including lease liabilities and subscription liabilities, as well as claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and right-to-use subscription assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under financing through leases are reported as other financing sources.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. In addition, contributions from state and federal agencies, developers and others are recorded as revenue.
54 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City may fund 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 resources to such programs, followed by general revenues if necessary.

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

Those revenues susceptible to accrual are intergovernmental revenues, use of money and property revenue, charges for services and fines and penalties. Sales taxes collected and held by the State at year-end on behalf of the City also are recognized as revenue.

Expenditures are also generally recognized under the modified accrual basis of accounting. An exception to this rule is principal and interest on long-term debt, which is not recognized by debt service funds until it is due. Financial resources usually are appropriated in funds responsible for repaying debt for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. Thus, the liability is recognized by the fund responsible for paying the debt, not the debt service fund.

E. Revenue Recognition for Water, Sewer and Solid Waste Revenues are recognized based on cycle billings rendered to customers. Revenues for services provided but not billed at the end of a fiscal period are not material and are not accrued.

F. Property Tax
San Joaquin County assesses properties, and it 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 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and March 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 1, and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the county, which retains all penalties collected.

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.

55 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Compensated Absences
The liability for compensated absences includes the vested portions of vacation, sick leave and compensated time off, administrative leave and furlough for Safety. For governmental funds, a liability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements.

The remaining amounts are reported as a liability in the Statement of Net Position. Proprietary funds’ liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.

Changes in compensated absences were as follows:

Governmental Business Type
Activities Activities Total
Beginning Balance $6,142,230 $1,899,839 $8,042,069
Net Changes 438,779 136,989 575,768
Ending Balance $6,581,009 $2,036,828 $8,617,837
Current Portion $1,180,937 $379,819 $1,560,756
Compensated absences in enterprise funds are liquidated by the fund that has recorded the liability. The long-term portion of the governmental activities compensated absences is liquidated primarily by the General Fund.

H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents 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 City has two items that qualify for reporting in this category. The City has deferred outflows of resources related to pensions and Other Post-Employment Benefits (OPEB) as discussed in Notes 10 and 11, respectively.

In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: accounts receivable, notes receivable and leases.

The City also has deferred inflows of resources which arise under the full accrual basis of accounting related to pensions and OPEB as discussed in Notes 10 and 11, respectively, and leases discussed in Note

14. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

56 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

J. Prepaids and Deposits
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Prepaids and deposits in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.

K. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

L. New Fund
The PBID Custodial Fund was established during fiscal year 2025 to account for the improvement of general areas within Manteca's downtown business community. 57 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Governmental Accounting Standards Board Statements
New Effective Accounting Pronouncements
GASB Statement No. 101 – In June 2022, GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City implemented the provisions of this statement in fiscal year 2025. See Note 1G.

GASB Statement No. 102 – In December 2023, GASB issued GASB Statement No. 102, - Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. GASB Statement No. 102 did not have an effect on the financial statements.

Future Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) releases new accounting and financial reporting standards which may have a significant impact on the City's financial reporting process. Future new standards which may impact the City, include the following:

GASB Statement No. 103 – In April 2024, GASB issued GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. The City has not determined the effect of this Statement.

GASB Statement No. 104 – In September 2024, GASB issued GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. The City has not determined the effect of this Statement. 58 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayer comments.

3. The budget is legally enacted through the adoption of a resolution.

4. All budget adjustments are approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the Fund level for all funds.

5. Budgets are adopted for all funds other than some Fiduciary Funds.

6. Formal budgetary integration is employed as a management control device during the year in all funds.

7. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).

B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.

Encumbrances outstanding at year end are reported as a restriction, commitment or assignment of fund balances since they do not constitute expenditures or liabilities and are reappropriated in the following year.

Unexpended appropriations lapse at year end and must be reappropriated in the following year.

C. Expenditures in Excess of Appropriations
The following funds incurred expenditures in excess of appropriations. Sufficient resources were available within each fund to finance these excesses:

Excess of
Expenditures
Over
Fund Appropriations
Special Revenue Funds:

Landscape and Lighting Maintenance District $185,340
Capital Improvement Funds:

Flood Protection 24,375
59 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
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 with Fiscal Agents so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. Investments are carried at fair value.

A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called 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 maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.

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 value of 150% of the City’s cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the City’s name and places the City ahead of general creditors of the institution pledging the collateral.

The City’s investments are carried at fair value, as required by generally accepted accounting principles.

The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

B. Classification
Cash and investments as of June 30, 2025 are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Agency agreements.

Cash and investments available for City operations $485,773,510 Restricted cash and investments 29,072,399
Total City cash and investments of primary government 514,845,909 Cash and investments in Fiduciary Funds 9,122,726
Restricted cash and investments in Fiduciary Funds 2,172,572 Total cash and investments $526,141,207
Cash and investments as of June 30, 2025 consist of the following:

Cash on hand $2,550
Deposits with financial institutions 177,759,034
Investments 348,379,623
Total cash and investments $526,141,207
Cash and investments are used in preparing Proprietary Fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year. 60 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 - CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer United States Treasury Bills, Bonds and Notes 5 years None 100% No Limit Federal Agency or United States Government-
Sponsored Enterprise Obligations 5 years None 100% No Limit Mortgage Pass Through Federal Agency Securities 5 years None 20% No Limit California State and Local Agency Obligations 5 years A (1) No Limit Other State Obligations 5 years A (1) No Limit
Bankers' Acceptances 180 days Highest Category 30% 5% (2) Commercial Paper 270 days Highest Category 40% 5% (3)
Negotiable Certificates of Deposit 5 years A 30% 5% (2) Repurchase Agreements 90 days None 100% 5% (2)
Local Agency Investment Fund n/a None $75 million/account $75 million/account Time Certificates of Deposit 5 years None 25% 5% (2)
Medium-Term Corporation Notes 5 years A 30% 5% (3)
Money Market Funds n/a Highest Category 100% 5% (2)
Local Government Investment Pools n/a None 50% 5% (2)
Supranationals 5 years AA 30% No Limit
Asset-Backed Securities 5 years AA 20% No Limit
(1) Total investments in California State and Local Agency Obligations and Other State Obligations may not exceed 30% of the City's total portfolio.
(2) Total value invested in any one issuer may not exceed 5% of the issuer's net worth. (3) Total value invested in any one issuer may not exceed 5% of the outstanding commercial paper and the medium term notes of any single issuer.
61 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and Successor Agency 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 or Successor Agency fails to meet the 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 and their minimum credit ratings 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.

Minimum
Maximum Credit
Authorized Investment Type Maturity Quality
United States Treasury Bill, Bonds, Notes 5 years N/A
United States Government Agency Obligations 5 years N/A Bankers' Acceptances 30 days to 1 year A-1
Commercial Paper 270 days to 1 year A-1
Certificates of Deposit 30 days to 5 years None to A
Repurchase Agreements None to 30 days A-1
Local Agency Investment Fund n/a Not rated
Money Market Funds n/a AA-m
Investment Agreements None None to AA
State and Municipal Bonds, Notes None Two Highest Categories 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 the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
62 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 - CASH AND INVESTMENTS (Continued)
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 36 to 60
Investment Type or less Months Months Months Total
Held by City:

U.S. Treasury Notes $27,802,590 $32,182,980 $59,985,570 Mortgage Pass Through Federal Agency Securities $3,663,159 6,373,002 11,127,640 21,163,801 Medium Term Corporate Notes:

Callable 3,188,361 13,400,345 14,905,105 31,493,811
Non-Callable 1,464,610 5,712,278 5,714,271 12,891,159
Negotiable Certificates of Deposit 3,368,786 3,368,786
California Local Agency Investment Fund 52,731,914 52,731,914 Asset-Backed Securities 21,977 2,610,525 5,878,042 $23,351,610 31,862,154 Municipal Bonds 395,000 504,459 899,459
California Asset Management Program 74,990,197 74,990,197 Money Market Mutual Funds (U.S. Securities) 97,198 97,198 Held by Trustees:

Money Market Mutual Funds (U.S. Securities) 58,895,574 58,895,574 Total Investments $195,447,990 $59,267,526 $70,312,497 $23,351,610 $348,379,623 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 investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool 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. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2025, these investments have an average maturity of 248 days.

The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of CAMP participants to invest certain proceeds of debt issues and surplus funds. CAMP investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share in accordance with GASB 79 requirements. At June 30, 2025, the fair value was approximate to the City’s cost. At June 30, 2025, these investments had an average maturity of 41 days. 63 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 - CASH AND INVESTMENTS (Continued)
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in its CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal.

Money market funds are available for withdrawal on demand and at June 30, 2025, have a weighted average maturity of 1 to 52 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. Presented below is the actual rating as of June 30, 2025 for each investment type as provided by Standard and Poor’s investment rating system, except as noted.

Standard and Poor's Moody's
Investment Type AAAm/AAA AA+/AA/AA- A+/A/A- Aaa Aa2 A1/A2/A3 Total Held by City:
$21,163,801 $21,163,801
Medium Term Corporate Notes:

Callable $1,118,457 5,660,043 $23,397,157 $1,318,154 31,493,811 Non-Callable 4,892,472 7,355,651 643,036 12,891,159
Negotiable Certificates of Deposit 3,368,786 3,368,786
Asset-Backed Securities 20,294,215 $11,567,939 31,862,154 Municipal Bonds 395,000 $504,459 899,459
California Asset Management Program 74,990,197 74,990,197 Money Market Mutual Funds (U.S. Securities) 97,198 97,198 Held by Trustees:

Money Market Mutual Funds (U.S. Securities) 58,895,574 58,895,574 Totals $155,395,641 $32,111,316 $34,121,594 $11,567,939 $504,459 $1,961,190 235,662,139 Not rated:

California Local Agency Investment Fund 52,731,914
Exempt from credit rating disclosure:

U.S. Treasury Notes 59,985,570
Total Investments $348,379,623
Mortgage Pass Through Federal Agency Securities

64 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 - CASH AND INVESTMENTS (Continued)
G. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2025:

Level 1 Level 2 Total
Investments by Fair Value Level:

U.S. Treasury Notes $59,985,570 $59,985,570
Mortgage Pass Through Federal Agency Securities $21,163,801 21,163,801 Medium Term Corporate Notes 44,384,970 44,384,970
Negotiable Certificates of Deposit 3,368,786 3,368,786
Asset-Backed Securities 31,862,154 31,862,154
Municipal Bonds 899,459 899,459
Totals $59,985,570 $101,679,170 161,664,740
Investments Measured at Net Asset Value Per Share:

Held by City:

California Asset Management Program 74,990,197
Investments Measured at Amortized Cost:

Held by City:

Money Market Mutual Funds (U.S. Securities) 97,198
Held by Trustees:

Money Market Mutual Funds (U.S. Securities) 58,895,574
Investments Exempt from Fair Value Hierarchy:

California Local Agency Investment Fund 52,731,914
Total Investments $348,379,623
Investments classified in Level 1 of the fair value hierarchy were valued using quoted prices in active markets. All investments classified in Level 2 of the fair value hierarchy were valued using matrix pricing techniques maintained by various pricing vendors. These prices were obtained from various pricing sources from our custodian bank. The California Local Agency Investment Fund is exempt from classification in the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.

65 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 - INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. During the fiscal year ended June 30, 2025, the transfers were as follows:

Amount
Fund Receiving Transfers Fund Making Transfers Transferred Purpose General Fund Insurance Internal Service Fund $24,640 A
Recreation Special Revenue Fund General Fund 840,000 A
Sewer Enterprise Fund General Fund 526,894 B
Golf Enterprise Fund General Fund 91,500 A
$1,483,034
A To fund operations
B Transfer 50% of the business license tax collections to lower the PFIP Sewer Fee, in accordance with the 2013 Public Facilities Implementation Plan Update B. Current Interfund Balances
Current interfund balances arise mainly due to the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. These balances are expected to be repaid shortly after the end of the fiscal year. At June 30, 2025, interfund balances were as follows:

Due From Funds Due To Funds Amount
General Fund Non-Major Governmental Funds $4,070,530
Transit Enterprise Fund 1,674,268
Vehicle Internal Service Fund 662,203
Total $6,407,001

66 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
C. Long-Term Interfund Advances
At June 30, 2025, the funds below had made advances that are not expected to be repaid within the next year. These long-term interfund advances are expected to be repaid out of future developer fees. (Asset) (Liability) Amount of
Fund Making Advance Fund Receiving Advance Advance
General Fund Public Facilities Implementation Plan
Capital Improvements Fund $1,081,780
Public Facilities Implementation Plan
Capital Improvements Fund Water Enterprise Fund 3,226,131 Sewer Enterprise Fund 7,571,497
Water Enterprise Fund Public Facilities Implementation Plan Capital Improvements Fund 180,280
Sewer Enterprise Fund 272,802
Sewer Enterprise Fund Public Facilities Implementation Plan Capital Improvements Fund 259,606
Water Enterprise Fund 86,961
Total Advances $12,679,057
Public Facilities Implementation Plan
Advances above in the amount of $12,679,057 have been made between the Public Facilities Improvement Plan, General Fund, Water, and Sewer Funds in coordination with the City’s adopted Public Facilities Implementation Plan. The long-term interfund advances to and from these funds were made in accordance with this Plan and are expected to be repaid out of future developer fees over the next fifteen years.

During the fiscal year 2011, the Public Facilities Implementation Plan Fund made an additional advance to the Sewer Enterprise Fund in the amount of $5,000,000 which is included in the balance above. The advance bears interest at an annual rate of 2%.

D. Internal Balances
Internal balances are presented in the Entity-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.
67 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE
The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to expend these funds in accordance with the Agency’s terms. With the dissolution of the Redevelopment Agency as discussed in Note 17, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund. The balances of the notes receivable in the Low and Moderate Income Housing Asset Fund at June 30, 2025 are set forth below:

A. Summary of Notes Receivable and Unavailable Revenue
The City has deferred the recognition of revenues from the proceeds of the Notes. At June 30, 2025, these Notes totaled:

HOPE Shelter $1,382,482
Habitat for Humanity 10,000
Down Payment Assistance Program 1,191,700
Residential Rehabilitation 73,458
First-Time Homebuyer Loan Program 60,000
Mid-Peninsula Housing Coalition 3,950,891
Eden Housing Inc. - Union Court Apartments 3,191,736
Eden Housing Inc. - Senior Housing 2,853,623
Manteca Senior Housing, Inc. - Affirmed Housing 1,003,389 Senior Rehabilitation Loans 17,070
Manteca Atherton Associates - Juniper Apartments 14,573,599 Total notes receivable 28,307,948
Less: Allowance for conditional grants (968,822)
Net long-term notes receivable $27,339,126
In addition, the General Fund has recorded a loan receivable in the amount of $405,000 as discussed in Note 16D.

Unavailable revenue at June 30, 2025 consisted of the outstanding balances of the above notes.

B. HOPE Shelter
On November 16, 2010, the Agency entered into an Owner Participation and Loan Agreement with HOPE to loan $1,243,440 to fund the construction phase of the rehabilitation of the Shelter. This loan is secured by a deed of trust and bears simple interest of one percent from the date of each disbursement of loan funds, if the new rental units are used for affordable housing for low and moderate income households for fifty-five years after completion of construction. The Agency agreed to forgive the loan after fifty-five years if the facility is used for the stated purpose.

As of June 30, 2025, HOPE had drawn down $1,206,037 of the available loan and no further drawdowns are expected. Interest accrued on the loan totaled $176,445 as of June 30, 2025.

68 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) C. Habitat for Humanity
In March 1998 the Agency loaned $10,000 to the Habitat for Humanity, to be used toward the purchase of property to construct an affordable housing unit. Habitat has signed a promissory note secured by a deed of trust. The loan only becomes due if the property is not maintained as affordable housing. If the property is used for the stated purpose for thirty years, the City will forgive the loan.

D. Down Payment Assistance Program
The Moderate Income Housing Down Payment Assistance Program was established in 2004 to provide financing for homebuyers with moderate income who are unable to qualify for a home purchase without down payment assistance. At June 30, 2025, loans related to this Program in the amount of $1,191,700 had been extended. These loans are secured by second deeds of trust and bear no interest. These promissory notes are due if the home is sold, equity is removed, home is non-owner occupied, or after 40 years.

E. Residential Rehabilitation Loans

During fiscal year 2003, the Redevelopment Agency began the Residential Rehabilitation Matching Grant Program under which it made loans to real property owners in the Redevelopment Area for the purpose of making property improvements. The Agency agreed to forgive the loans after ten years based on program provisions; the loans bear eight percent interest due from date of closing applicable only in case of default.

At June 30, 2025, loans receivable under this program totaled $73,458.

F. First-Time Homebuyer Loan Program
In January 2002, the Agency engaged in a First-Time Homebuyer Down Payment Assistance Program designed to encourage home ownership among low-and-moderate-income households. Under this program, an interest free loan up to $60,000 is provided to eligible households to be used as part of the down payment for the purchase of home in the City of Manteca. These promissory notes are secured by second deeds of trust and due forty years from the date the property was purchased. The balance of the notes receivable arising from this program at June 30, 2025 was $60,000.

G. Mid-Peninsula Housing Coalition
In March 2006, the Manteca Redevelopment Agency entered into a loan agreement with the Mid-Peninsula Housing Coalition for affordable housing. Under the terms of the agreement, the Agency loaned $2,500,000 to partially fund the acquisition of the property to be used for the construction of affordable rental housing. The note bears interest of 3% interest. Repayment of the loan will commence on April 30 of the year after the completion of construction of the project. Principal and interest payments will be due annually and equal to 50% of residual receipts, if any, as defined in the loan agreement. The loan is due in full no later than December 31, 2065. The agreement is secured by a deed of trust. Interest accrued on the loan totaled $1,450,891 as of June 30, 2025. Mid-Peninsula Housing Coalition is in default on the loan.

The City is in negotiations to resolve the issue.

H. Eden Housing Inc. – Union Court Apartments
On September 1, 2000, the Agency agreed to loan $2,593,742 to Eden Housing Inc., for the acquisition and rehabilitation of the Union Court Apartments. The loan is secured by a second deed of trust, bears interest at 1% and is due in 2055. Interest accrued on the loan totaled $597,994 as of June 30, 2025. 69 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) I. Eden Housing Inc. – Senior Housing (Almond Terrace)
On June 5, 2000, the Agency agreed to loan Eden Housing Inc. up to $900,000 at 3% interest to assist with the acquisition of two parcels and construction of fifty units of affordable rental housing for very-lowincome seniors. On April 17, 2002, the Agency loaned an additional $781,000 to increase the total amount of loan to $1,681,000 in order to help Eden Housing Inc. complete the construction. The loan is secured by a deed of trust. If Eden Housing sells or transfers any of the parcels prior to the June 5, 2030 due date, the unpaid principal and interest on those parcels become due. As of June 30, 2025, Eden Housing had drawn down the loan in the amount of $1,680,932. Interest accrued on the loan totaled $1,172,691 as of June 30, 2025.

J. Manteca Senior Housing Inc. – Affirmed Housing
On March 22, 2007, the Agency agreed to loan Manteca Senior Housing Inc. $750,000 along with a grant of $2,000,000 to be used for the acquisition and development costs for the fifty-two-unit apartment complex available for low income households. The Agency agreed to forgive the loan after fifty-five years based on program provisions; the loan bears a 3% interest due from date of closing applicable only in case of default.

If there are residual receipts, the developer must pay to the City 50% of the receipts. At June 30, 2025, $750,000 has been drawn down from the loan, and all $2,000,000 of the grant has been drawn down.

Interest accrued on the loan totaled $253,389 as of June 30, 2025.

K. Senior Rehabilitation Loans
During fiscal year 2010, the Agency began the Senior Rehabilitation Loan Program under which it made loans up to $7,500 to senior citizens in the Redevelopment Area for the purpose of making property improvements. The terms and conditions of the loans are dependent upon the income of the applicants. At June 30, 2025, loans receivable under this program totaled $17,070.

L. Manteca Atherton Associates – Juniper Apartments
On December 21, 2010, the Agency entered into an Owner Participation and Loan Agreement under which it agreed to loan $12,250,000 to Manteca Atherton Associates to finance the construction of the Juniper Apartments, a 153-unit affordable housing complex. The Agreement was amended in March 2011 to increase the loan to $12,750,000, payable as follows: $4,530,644 of the loan is to pay the cost of the City development fees, $4,301,069 is to pay for the cost of acquiring the land and construction costs, and $3,918,287 is to be disbursed upon completion of the project to repay other sources of construction financing. The loan is secured by a deed of trust and bears simple interest of one percent from the date of each disbursement of loan funds. The loan is repayable from residual receipts, as defined in the agreement, beginning twelve months after the issuance of the certificate of occupancy, which was issued on October 10, 2012, and all unpaid principal and interest on the loan is due fifty-five years after the issuance of the certificate of occupancy.

The Agency disbursed the loan to an escrow account from which the developer drew the funds as eligible costs were incurred. The balance of the loan receivable as of June 30, 2025 is $12,750,000. Interest accrued on the loan totaled $1,823,599 as of June 30, 2025.

70 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) M. Conditional Grants
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City’s housing stock and/or its supply of low-and-moderate income housing.

Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City accounts for these loans as conditional grants in the Government-wide financial statements and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan. The balance of the allowance for conditional grants as of June 30, 2025 is $968,822.

NOTE 6 - EMPLOYEE NOTES RECEIVABLE

All full-time City employees who have completed their probationary period are eligible to obtain an interest free loan of up to $3,000 to purchase a computer. All requests for loans are subject to review by the employee’s department manager and the Information Technology Department, and ultimately must be approved by the Finance Director. Repayment of these loans is handled through payroll deductions which are spread out equally over a three-year period or less. Employees must repay the outstanding balance of their loans upon ending their employment with the City. As of June 30, 2025, 26 employees had notes totaling $24,374 due to the City.

NOTE 7 - CAPITAL ASSETS
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for intangible right to‐use lease assets, the measurement of which is discussed in Note 14 below, and intangible right to use subscription assets, the measurement of which is described in Note 15 below. The City’s practice is to capitalize all assets with costs exceeding the $5,000 threshold.

Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:

Buildings and Improvements 30 years
Right-to-Use Buildings 3 years
Machinery and Equipment 5-15 years
Right-to-Use Equipment 3-5 years
Right-to-Use Software 2-7 years
Storm Drain 50 years
Streets 30 years
Parks 15-30 years
Subscription Assets 2-6 years
Sewer Lines and Improvements 50 years
Water Wells and Lines 50 years
Sewer Plant Expansion 10-20 years
Water Rights 25 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. 71 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 7 - CAPITAL ASSETS (Continued)
A. Capital Asset Additions and Retirements

Capital assets activities for the year ended June 30, 2025 were as follows:

Governmental activities
Balance at
June 30, 2024 Balance at
(As Restated) Additions Retirements Transfers June 30, 2025 Capital assets not being depreciated:

Land and improvements $67,471,204 $67,471,204
Subscription assets in progress 1,064,912 ($1,064,912)
Construction in progress 53,793,517 $8,667,917 (2,009,167) 60,452,267 Total capital assets not being depreciated 122,329,633 8,667,917 (3,074,079) 127,923,471 Capital assets being depreciated:

Buildings and improvements 17,775,810 1,615,704 261,052 19,652,566 Intangible right-to-use building 634,944 ($634,944)
Machinery and equipment 28,532,281 4,550,205 (437,106) 1,748,115 34,393,495 Intangible right-to-use equipment 28,661 179,818 (20,832) 187,647 Storm drain 72,988,556 4,381,300 77,369,856
Streets 359,451,836 12,531,301 371,983,137
Parks 82,582,761 3,505,870 86,088,631
Subscription assets 1,810,085 2,296,282 (101,073) 1,064,912 5,070,206 Total capital assets being depreciated 563,804,934 29,060,480 (1,193,955) 3,074,079 594,745,538 Less accumulated depreciation for:

Buildings and improvements (15,631,181) (1,050,817) (16,681,998) Intangible right-to-use building (486,342) (148,602) 634,944 Machinery and equipment (22,303,100) (2,155,043) 437,106 (24,021,037) Intangible right-to-use equipment (21,036) (65,377) 20,832 (65,581) Storm drain (20,654,764) (1,439,946) (22,094,710)
Streets (122,208,953) (11,001,766) (133,210,719)
Parks (37,930,064) (2,592,322) (40,522,386)
Subscription assets (569,335) (787,087) 101,073 (1,255,349) Total accumulated depreciation (219,804,775) (19,240,960) 1,193,955 (237,851,780) Net capital assets being depreciated 344,000,159 9,819,520 3,074,079 356,893,758 Governmental activity capital assets, net $466,329,792 $18,487,437 $484,817,229

72 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 7 - CAPITAL ASSETS (Continued)
Business-type activities
Balance at
June 30, 2024 Balance at
(As Restated) Additions Retirements Transfers June 30, 2025 Capital assets not being depreciated:

Land and improvements $4,960,217 $4,960,217
Construction in progress 10,509,051 $8,726,859 ($1,138,889) 18,097,021 Total capital assets not being depreciated 15,469,268 8,726,859 (1,138,889) 23,057,238 Capital assets being depreciated:

Sewer lines and improvements 103,022,609 1,818,871 906,239 105,747,719 Water wells, pipelines and water rights 155,958,174 3,537,296 159,495,470 Buildings and improvements 18,703,561 258,180 18,961,741 Intangible right-to-use building 21,922 19,907 41,829
Machinery and equipment 34,206,539 3,237,927 ($259,502) 232,650 37,417,614 Intangible right-to-use equipment 23,487 (21,921) 1,566 Infrastructure 165,424 165,424
Sewer plant expansion 128,914,748 128,914,748
Total capital assets being depreciated 441,016,464 8,872,181 (281,423) 1,138,889 450,746,111 Less accumulated depreciation for:

Sewer lines and improvements (28,072,372) (1,880,135) (29,952,507) Water wells, pipelines and water rights (71,575,126) (3,917,734) (75,492,860) Buildings and improvements (10,025,721) (557,522) (10,583,243) Intangible right-to-use building (20,704) (20,704)
Machinery and equipment (24,648,145) (3,047,167) 259,502 (27,435,810) Intangible right-to-use equipment (13,374) (10,984) 21,921 (2,437) Infrastructure (87,498) (6,567) (94,065)
Sewer plant expansion (37,062,644) (2,504,606) (39,567,250) Total accumulated depreciation (171,505,584) (11,924,715) 281,423 (183,148,876) Net capital assets being depreciated 269,510,880 (3,052,534) 1,138,889 267,597,235 Total Business-type activity capital assets, net $284,980,148 $5,674,325 $290,654,473 B. Capital Asset Contributions
Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
73 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 7 - CAPITAL ASSETS (Continued)
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 program was as follows:

Governmental Activities
General government $1,062,395
Community development 62,149
Public safety 1,602,138
Public works 13,126,302
Parks and recreation 2,860,085
Internal Service Funds 527,891
Total Governmental Activities $19,240,960
Business-Type Activities
Water $4,349,306
Sewer 5,308,551
Solid waste 1,730,477
Golf 66,295
Transit 470,086
Total Business-Type Activities $11,924,715
NOTE 8 - LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City’s debt issues and transactions are summarized below and discussed in detail thereafter.

A. Current Year Transactions and Balances
Original Issue Balance Balance Current
Amount June 30, 2024 Retirements June 30, 2025 Portion
Business-type Activity Debt:

Sewer Revenue Bonds
Series 2009 Bonds, 4.875-5.75% $19,000,000 $19,000,000 $560,000 $18,440,000 $640,000 Series 2012 Refunding Bonds, 2.00 - 4.00% 22,690,000 7,615,000 640,000 6,975,000 670,000 Net premium 1,555,736 84,094 1,471,642
Water Revenue Bonds
Series 2012 Refunding Bonds, 2.00 - 5.00% 35,840,000 21,530,000 1,710,000 19,820,000 1,800,000 Net premium 3,575,939 193,316 3,382,623
Total Business - Type Activity Debt $77,530,000 $53,276,675 $3,187,410 $50,089,265 $3,110,000

74 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 - LONG TERM DEBT (Continued)
B. Sewer Revenue Bonds
On May 27, 2009 the Manteca Financing Authority issued the Sewer Revenue Bonds Series 2009 in the amount of $19,000,000 to finance the City’s expansion and upgrade of its Wastewater Quality Control Facility. The 2009 Revenue Bonds are secured on parity with the 2003 Sewer Revenue Bonds Series 2003A and 2003B, by installment payments payable by the City of Manteca under the Installment Sales Agreement dated December 1, 2003 as amended by Amendment 1 dated June 1, 2009. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s sewer system.

On December 11, 2012, the City issued Sewer Revenue Refunding Bonds, Series 2012 in the original principal amount of $22,690,000 at interest rates that range from 2.00-5.00% to provide for a refunding of the Manteca Financing Authority’s outstanding 2003A and 2003B Sewer Revenue Bonds. During fiscal year 2014, the 2003A and 2003B bonds were called and fully retired. Principal payments are due annually on December 1, with interest payments payable semi-annually on December 1 and June 1 through December 1, 2033. Repayment of these bonds is from a pledge of revenue from the Sewer Enterprise Fund.

The City has pledged future sewer revenues, net of specified operating expenses, to repay the 2009 and 2012 Sewer Revenue Bonds through 2036. Projected net customer revenues are expected to provide coverage over debt service of at least 125% over the life of the bonds. The Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $35,091,951. The Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $2,513,990 and $8,656,073, respectively.

The 2009 and 2012 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the City all payments due on the 2009 and 2012 Bonds, and the City will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.

On March 8, 2021, Moody’s Investors Service downgraded its underlying rating of the 2012 Bonds from “Aa3” to “A1”. On July 5, 2023, Moody’s withdrew the City’s issuer rating and also withdrew its ratings of the 2009 and 2012 Bonds, due to the City’s delay in issuing the audited financial statements. In addition, on April 20, 2023, Fitch Ratings withdrew its AA- rating for the 2009 Bonds for the same reason.

C. Water Revenue Bonds
On December 11, 2012, the City issued Water Revenue Refunding Bonds, Series 2012 in the original principal amount of $35,840,000 at interest rates that range from 2.00-5.00% to provide for a refunding of the Manteca Financing Authority’s outstanding 2003A Water Revenue Bonds. During fiscal year 2014, the 2003 Water Revenue Bonds were called and fully retired. Principal payments are due annually on July 1, with interest payments payable semi-annually on July 1 and January 1 through July 1, 2033. Repayment of these bonds is from a pledge of revenue from the Water Enterprise Fund.

The City has pledged future water customer revenues, net of specified operating expenses, to repay the Water Revenue Bonds through 2033. Annual principal and interest payments on the bonds are expected to require less than 125% of net water revenues. The Water Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $24,601,000. The Water Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $2,743,750 and $12,815,905, respectively. 75 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 - LONG TERM DEBT (Continued)
The 2012 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the City all payments due on the 2012 Bonds, and the City will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.

As noted in Note 8B above, on July 5, 2023, Moody’s withdrew the City’s issuer rating and also withdrew it’s rating of the 2012 Bonds, due to the City’s delay in issuing the audited financial statements.

D. Debt Service Requirements

Annual debt service requirements are shown below for all long-term debt:

For the Year Business-type Activities
Ending June 30 Principal Interest
2026 $3,110,000 $2,205,546
2027 3,300,000 2,061,071
2028 3,505,000 1,905,945
2029 3,725,000 1,734,944
2030 3,905,000 1,548,797
2031-2035 20,815,000 4,600,731
2036-2037 6,875,000 400,917
Total 45,235,000 $14,457,951
Plus: Bond Premiums 4,854,265
Gross Long Term Debt $50,089,265
E. Bond Issuance Costs, Original Issue Discounts and Premiums and Deferred Charge on Refunding For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Any differences between proprietary refunded debt and the debt issued to refund it is amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter.

F. Special Assessment District Bonds
Special Assessment Districts (Districts) within the City have issued debt under the Mello-Roos Community Facilities Act of 1982 to finance infrastructure improvements and facilities within the boundaries of the Districts. The City is the collecting and paying agent for the debt issued by the Districts but has no direct or contingent liability or moral obligation for the payment of the debt. Therefore, debt issued by the Districts is not included in long term debt of the City.

The outstanding balance of the issues at June 30, 2025 is:

Special Assessment Debt with no Issue Maturity Outstanding at Governmental Commitment Year Year June 30, 2025
Villa Ticino West Community Facilities
District No. 2023-1, Series 2024 2024 2055 $15,750,000
District No. 2023-1, Series 2025 2025 2056 5,515,000
$21,265,000
76 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net Position is divided into three captions on the Statement of Net Position.

These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low-and-moderate-income purposes.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balance
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 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 represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances 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. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

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 have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council. The highest level of formal action of the City Council is an Ordinance. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.

77 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
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, the Finance Director, and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; 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.

Detailed classifications of the City’s Fund Balances as of June 30, 2025, are below:

Special Revenue
Low and
Moderate Homeless
General Income Navigation Development
Fund Balance Classifications Fund Housing Assets Center Recreation Services Nonspendable:

Items not in spendable form:

Advance to other funds $1,081,780
Prepaids and deposits 4,124
Total Nonspendable
Fund Balances 1,085,904
Restricted for:

Health Reimbursement Arrangement 423,373
Low and Moderate Income Housing Projects $1,175,742
Transportation Projects
Development Services Projects $24,124,670
Engineering Services
Public Safety Projects
Homeless Center $227,730
Parks Projects
Major Equipment Purchases
Landscaping and Lighting Projects
City and Public Facilities Projects
Flood Protection Projects
Recreation $1,158,367
Total Restricted Fund Balances 423,373 1,175,742 227,730 1,158,367 24,124,670 Committed to:

Innovation and Technology Projects
Assigned to:

Fiscal Stability 20,138,103
Pension 4,027,621
Economic Development 2,500,000
Public Facilities Oversizing 3,691,709
Capital Facilities 1,500,000
Technology 1,500,000
Total Assigned Fund Balances 33,357,433
Unassigned:

General Fund 20,027,967
Total Unassigned Fund Balances 20,027,967
Total Fund Balances $54,894,677 $1,175,742 $227,730 $1,158,367 $24,124,670 (Continued)
78 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
Capital Projects
Public
Facilities State Government Other
Implementation Gasoline Gas Tax Building Governmental
Fund Balance Classifications Plan Tax SB1 Facilities Funds Total Nonspendable:

Items not in spendable form:

Advance to other funds $1,081,780
Prepaids and deposits 4,124
Total Nonspendable
Fund Balances 1,085,904
Restricted for:

Health Reimbursement Arrangement 423,373
Low and Moderate Income Housing Projects $12,829 1,188,571 Transportation Projects $753,088 $6,981,800 41,752,035 49,486,923 Development Services Projects 14,491,182 38,615,852
Engineering Services 8,177,916 8,177,916
Public Safety Projects 6,951,196 6,951,196
Homless Center 227,730
Parks Projects 30,163,404 30,163,404
Major Equipment Purchases 1,584,955 1,584,955
Landscaping and Lighting Projects 1,937,496 1,937,496
City and Public Facilities Projects $62,288,582 $49,623,584 19,348,268 131,260,434 Flood Protection Projects 36,228 36,228
Recreation 1,158,367
Total Restricted Fund Balances 62,288,582 753,088 6,981,800 49,623,584 124,455,509 271,212,445 Committed to:

Innovation and Technology Projects 538,578 538,578
Assigned to:

Fiscal Stability 20,138,103
Pension 4,027,621
Economic Development 2,500,000
Public Facilities Oversizing 3,691,709
Capital Facilities 2,960,884 4,460,884
Technology 1,500,000
Total Assigned Fund Balances 2,960,884 36,318,317
Unassigned:

General Fund 20,027,967
Total Unassigned Fund Balances 20,027,967
Total Fund Balances $62,288,582 $753,088 $6,981,800 $49,623,584 $127,954,971 $329,183,211 79 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance Policies and Stabilization and Contingency Arrangements The objective of the City’s Fund Balance Reserve Policy (Resolution 2020-111, adopted by Council action on June 16, 2020) is to establish adequate levels of fund balance reserve that will provide the City the resources necessary for financial stabilization, particularly during times of unforeseen emergencies and economic downturns. Industry best practices were used in establishing fund balance reserve levels including a target range for General Fund Operating Reserves and Emergency Reserves (Unassigned Fund Balance) of a combined total of no less than 17% of expenditures and up to 25%, depending upon identified risk factors. The fund balance reserve level should be set such that the fund balance reserve can withstand at least two negative budgetary events. The goal of the Policy is to maintain reserves at or near the 25% reserve. A planned draw down of the unassigned fund balance should not exceed 3% of the budgeted revenues unless determined necessary by the City Manager and approved by a vote of the Council. Fund balance reserves should be funded at 100% at June 30th each year if sufficient funds are available. If sufficient funds are not available, a plan to replenish the reserves back to the minimum required amount within five years, shall be presented to the City Council, by the following year’s budget adoption.

For Water, Wastewater and Transit Enterprise Funds, the target for working capital was established at baseline of 90 days working capital or 25% of operating expenses. For the Golf Enterprise Fund, the reserve is set at 15% of operating expenses.

The Reserve Policy created six types of General Fund reserves in order of priority as follows:

Fiscal Stability Reserve: The City will strive to maintain an unrestricted fund balance of at least 25% of operating expenditures in the General Fund based upon the annual adopted budget.

This fund balance reserve is set up to provide for adequately addressing:
• Revenue source stability, local disasters and other financial hardships or downturns in the local or national economy.
• Contingencies for unseen operating or capital needs.
• Dependency of other funds on the General Fund.
• Cash flow requirements.

The target of at least 25% of operating expenses will be determined in conjunction with the City’s budget process and will be established based on the annual adopted budget.

This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.
80 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as:
• One-time uses in meeting cash-flow needs; closing a projected short-term revenueexpenditure gap; responding to unexpected expenditure requirements or revenue shortfalls; natural disasters and liability reductions, revenue base improvements, productivity improvements and other strategies that will strengthen City revenues or reduce future costs.

However, reserves should not be used to fund ongoing costs or projected systemic “gaps.” Stated simply, reserves should only be used once, so the use should be restricted to one-time (or shortterm) uses.

In accordance with generally accepted accounting principles, when the unrestricted balance at fiscal year-end meets or is less than this target, the amount will be shown as “assigned” in the City’s audited financial statements.

Pension Stabilization Reserve: The purpose of this reserve is to mitigate the operational impact of employer contribution rate volatility, as well as to set aside funding for strategic opportunities to reduce the City’s pension liability. The City will strive to maintain an assigned fund balance of at least 5% of operating expenditures in the General Fund. This assigned fund balance shall serve as a source of funding for situations included but not limited to:
• Mitigating the impact of a significant year-over-year increase in employer contribution rates due to actions outside of the City’s control, such as low investment returns in the CalPERS portfolio and or changes to actuarial assumptions. • Take advantage of opportunities to make non-recurring payments to CalPERS that will reduce the City’s Pension liabilities, such as paying down or paying off unfunded liabilities earlier than scheduled.

In addition to the Pension Stabilization Reserve, any un-used pension benefits, as a result of vacant positions, budgeted for each fiscal year, will be used to make a one-time payment to pay down the City’s unfunded liability.

Economic Development Reserve: Due to the dissolution of redevelopment agencies, enterprise zones and other incentives in the state, locally designated funds for economic development purposes are needed to promote the development job creation, downtown revitalization, city-wide marketing and other strategies to stimulate the local economy.

The funds for this reserve assignment will come from a pro-rata portion of residual property tax generated from the former redevelopment project areas in excess of State-approved Enforceable Obligations.

At June 30th each year any Economic Development Reserve balance in excess of $2,500,000 will be transferred to the General Fund Unassigned Reserve.
81 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
Public Facilities Oversizing Reserve: In June 1994, the City Council adopted Ordinance No. 998, imposing a Business License Tax on the Business of Constructing Residential Dwelling Units in the City. While the revenues generated from this tax are general in nature, the tax was adopted in conjunction with the City's Public Facilities Implementation Plan (PFIP) to fund required public facilities oversizing in the central and “core” areas of the City.

In February 2013, Council approved the updated PFIP. Per Section 2 (H)(3) of the adopted plan, 50% of the revenue received from this tax is to be transferred to the PFIP Sewer Fund to help lower the PFIP Sewer Fee. The remaining 50% of the revenue received will be assigned to Public Facilities Oversizing Reserve. The use of these funds shall be restricted to projects identified in the City’s adopted Capital Improvement Plan.

Capital Facilities Reserve: The City will pre-fund anticipated capital needs for General Fund Departments by establishing a dedicated assigned fund balance for major capital improvements for City-owned or operated buildings such as roofs, HVAC, parks, irrigation wells and improvements needed to comply with the Americans with Disabilities Act (ADA). This policy is primarily intended for facility capital repairs. Planning for new City facilities shall be governed by the policies set forth in the City's Government Building Facilities Fee study.

The City will establish an amount of 3% of General Fund operating expenditures based on the subsequent year’s budget to be used exclusively for capital items described within the Reserve Policy, with a maximum reserve of $1,500,000.

Technology Reserve: The City will pre-fund major anticipated capital needs for Technology replacement and upgrade needs by establishing a dedicated assigned fund balance reserve to be funded through annual budget appropriations. Major capital needs may include, but are not limited to, Enterprise Resource Planning (ERP) software replacement, Virtual Storage Upgrades/Replacement and Fiber Optic deployment.

The City will establish an amount of 3% of General Fund operating expenditures based upon the subsequent year’s budget to be used exclusively for major hardware and software items described within the Reserve Policy, with a maximum reserve of $1,500,000.

The reserve target and the actual balance of each reserve for the year ended June 30, 2025, which are reported within the assigned fund balance of the General Fund follows:

Minimum or Reserve
Maximum as of
Reserve June 30, 2025
General Fund:

Assigned Fund Balance:

Fiscal Stability $20,138,103 $20,138,103
Pension Stabilization 4,027,621 4,027,621
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 3,691,709 3,691,709
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balance $33,357,433
82 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
In addition to the General Fund Reserves, the Reserve Policy also established the following:

Public Safety Sales Tax Fund - The City will strive to maintain a fund balance of at least 25% of operating expenditures in the Public Safety Sales Tax Fund (revised from 50% to 25% in March 2023 with Resolution 2023-27) consistent with the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association inadequately addressing:
a) Higher levels of fund balance may be needed if significant revenue sources are subject to instability and downturns in the local or national economy. b) Dependency of the Public Safety Sales Tax Fund on the General Fund.

This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.

Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as one-time uses in meeting cash-flow needs; closing a projected short-term revenue-expenditure gap; responding to unexpected revenue shortfalls.

Self Insurance Fund - The City will strive to maintain a fund balance of at least 50% of operating expenditures in the Self Insurance Fund consistent with the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association in adequately addressing:
a) Higher levels of fund balance may be needed if significant operating expenditures are highly volatile or have unpredictable fluctuations. b) Dependency of the Self Insurance Fund on the General Fund.

This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.

Circumstances where taking reserves below policy levels would be appropriate include mitigating the impact of a significant year-over-year increase in insurance premiums, unanticipated legal expenses due to negotiated settlements, and short-term revenue-expenditure gaps.

The City also established a separate reserve policy for the Development Services Special Revenue Fund:

Development Services Fund - The target maximum reserve level for the Fund’s Restricted Reserve balance is based on six months of currently budgeted expenditures for both the planning and engineering programs and twelve months of budgeted expenditures for the building safety program. The goal is to maintain reserves at or near the maximum end of the range. After the reserve amount has been reached, if the fund balances reserve falls below 50% of the reserve amount, then the plan to replenish the fund to the reserve amount shall be structured over a period not to exceed a three- to five-year period.

83 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 - NET POSITION AND FUND BALANCES (Continued)
D. Deficit Net Position and Accumulated Deficits
At June 30 2025, the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund and the Equipment Internal Service Fund had deficit net position of $74,958,179 and $53,656, respectively.

E. Adjustments and Restatements
Adjustments to and restatements of beginning balances during fiscal year 2025 and changes to or within the financial reporting entity, resulted in adjustments to beginning fund balance and net position, as follows:

Change to or
within the
Financial
June 30, 2024 Reporting Error
As Previously Entity Correction June 30, 2025
Reported (Major Funds) (Capital Assets) As Adjusted
Government-Wide:

Governmental Activities $653,718,839 ($634,407) $653,084,432 Business-Type Activities 315,382,583 575,873 315,958,456 Total Primary Government $969,101,422 ($58,534) $969,042,888 Governmental Funds
Major Funds:

Government Building Facilities Capital Projects Fund $40,004,310 $40,004,310 Nonmajor Funds $40,004,310 (40,004,310)
Total Governmental Funds $40,004,310 $40,004,310
Proprietary Funds
Major Funds:

Sewer Enterprise Fund $196,559,188 $125,102 $196,684,290 Solid Waste Enterprise Fund 3,778,980 (125,102) 3,653,878 Golf Enterprise Fund 333,199 9,890 343,089
Transit Enterprise Fund 5,551,609 565,983 6,117,592
Internal Service Funds 5,056,436 (88,647) 4,967,789
Total Proprietary Funds $211,279,412 $487,226 $211,766,638 In addition to the changes within the financial reporting entity to move a fund from non-major funds to major funds noted above, the City made the following restatements:

Error Correction – During fiscal year 2025, the City discovered that the balance of capital assets from the prior year included errors that needed to be corrected in multiple funds as detailed in the table above. The correction has been recorded as a restatement of net position as of July 1, 2024 in the statements of net position.
84 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS
A. Plan Descriptions and Summary of Balances by Plan
The City has three defined benefit pension plans, a Miscellaneous Plan, a Safety (Police and Fire) Plan, and a Retirement Enhancement Plan. The Miscellaneous Plan is an Agent-Multiple Employer Plan and the Safety Plan is a Cost-Sharing Multiple Employer Plan, both of which are administered by the California Public Employees’ Retirement System (CalPERS). The Retirement Enhancement Plan is an Agent-Multiple Employer Plan administered by the Public Agency Retirement System (PARS). Benefit provisions under the Plans are established by State statute and City Ordinance. The PARS Plan is closed to new participants.

All qualified permanent and probationary employees are eligible to participate in the separate Safety (police and fire) Plan, a cost-sharing multiple employer defined benefit pension plan administered by CalPERS and Miscellaneous (all other) Plan, an agent multiple-employer defined benefit pension plan administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. PARS issues publicly available reports that may be requested from PARS via email at [email protected].

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 Miscellaneous and Safety Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office or PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

For the year ended June 30, 2025, total pension expense for the Miscellaneous, Safety and PARS Retirement Enhancement plans amounted to $26,291,787.

Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan:

Net Pension
Liability/
Deferred Proportionate Deferred
Outflows Share of Net Inflows
Plan of Resources Pension Liability of Resources
CalPERS Plans:

Miscellaneous $15,730,654 $67,696,745
Safety - Police and Fire 24,640,233 75,997,348 $1,707,220 PARS Retirement Enhancement Plan 374,920 499,211
Total $40,745,807 $144,193,304 $1,707,220
Pension liabilities are liquidated by the funds that have recorded the liability. The long-term portion of the governmental activities pension liabilities are liquidated primarily by the General Fund.

Each Plan is discussed in detail below.

85 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
B. CalPERS Miscellaneous Plan
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.

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

Miscellaneous
Tier I Tier II PEPRA
Hire date Prior to April 3, 2012 After April 3, 2012 On or after January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.092% - 2.418% 1.0% - 2.5% Required employee contribution rates 8.00% 7.00% 7.75%
Required employer contribution rates 11.600% 11.600% 11.600% Required UAL Contribution $5,767,118
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 (UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contribution for the unfunded liability was $5,767,118 in fiscal year 2025, which was made under the lump sum payment option.

Employees Covered – The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2023 and as of the measurement date of June 30, 2024:

Miscellaneous
June 30, 2023 June 30, 2024
Inactive employees or beneficiaries currently receiving benefits 328 339 Inactive employees entitled to but not yet receiving benefits 328 359 Active employees 308 316
Total 964 1,014
As of June 30, 2025, the City had 325 active employees in the Miscellaneous Plan.

86 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

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.

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

Changes in the Net Pension Liability - The changes in the Net Pension Liability for the Miscellaneous Plan follows:

Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) $226,543,871 $155,073,131 $71,470,740 Changes in the year:

Service cost 4,645,118 4,645,118
Interest on the total pension liability 15,556,336 15,556,336 Differences between actual and expected experience 2,155,981 2,155,981 Changes in assumptions
Changes in benefit terms
Net Plan to Plan Resource Movement
Contribution - employer 9,079,427 (9,079,427)
Contribution - employees 2,152,520 (2,152,520)
Net investment income 15,025,666 (15,025,666)
Administrative expenses (126,183) 126,183
Benefit payments, including refunds of employee
contributions (11,136,538) (11,136,538)
Other Miscellaneous Income/ (Expense)
Net changes 11,220,897 14,994,892 (3,773,995)
Balance at June 30, 2024 (Measurement Date) $237,764,768 $170,068,023 $67,696,745 87 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s 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:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $100,236,329
Current Discount Rate 6.90%
Net Pension Liability $67,696,745
1% Increase 7.90%
Net Pension Liability $41,018,739
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2025, the City recognized pension expense of $11,200,599. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $9,111,728 Differences between actual and expected experience 2,877,767 Changes in assumptions 1,511,604
Net differences between projected and actual earnings
on plan investments 2,229,555
Total $15,730,654 $0
The Miscellaneous Plan reported $9,111,728 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. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2026 $2,641,387
2027 5,068,356
2028 (224,523)
2029 (866,294)
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 88 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
C. CalPERS Safety Plan
The City’s Safety Plan is part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors five rate plans (two fire and three police) within the safety risk pool.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.

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

Safety
First Tier Second Tier PEPRA
Hire date
Prior to
April 3, 2012
After
April 3, 2012
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% - 3.0% 2.0% - 2.7% Required employee contribution rates 9% 9% 14.50%
Required employer contribution rates 29.300% 24.960% 14.720% Required UAL Contribution $3,669,888 $15,426 $18,439
Fire
First Tier PEPRA
Hire date
Prior to /After
April 3, 2012
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Public Monthly for life Monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 2.4% - 3.0% 2.0% - 2.7% Required employee contribution rates 9% 14.50%
Required employer contribution rates 26.290% 14.720%
Required UAL Contribution $2,483,544 $10,520
Police

89 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Beginning in fiscal year 2016, CalPERS collects employer contributions for the cost-sharing 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 (UAL) as noted in the table above. The dollar amounts are billed on a monthly basis or can be paid in a lump sum at a reduced amount. The City elected to make the lump sum contributions and the required contribution for the unfunded liability was $6,197,817 in fiscal year 2025, as shown in the table above.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

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.

For the year ended June 30, 2025, the contributions to the Safety Plan were as follows:

Contributions - employer $9,663,435
Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources Related to 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 Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

As of June 30, 2025, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan in the amount of $75,997,348.

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability for the Plans 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 plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Total
Proportion - June 30, 2023 1.03178%
Proportion - June 30, 2024 1.04237%
Change - Increase (Decrease) 0.01059%
90 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
For the year ended June 30, 2025, the City recognized pension expense of $14,987,682 for the Safety Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Safety Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $9,663,435 Differences between actual and expected experience 6,202,059 ($201,656) Changes in assumptions 1,872,419
Net differences between projected and actual earnings on plan investments 3,673,366
Change in proportion and differences between actual
contributions and proportionate share of contributions 3,228,954 (1,505,564) Total $24,640,233 ($1,707,220)
The Safety Plan reported $9,663,435 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. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2026 $4,994,533
2027 9,291,628
2028 240,276
2029 (1,256,859)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for each Plan as of the measurement date, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Total
1% decrease 5.90%
Net Pension Liability $109,115,272
Current Discount Rate 6.90%
Net Pension Liability $75,997,348
1% Increase 7.90%
Net Pension Liability $48,911,542
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 91 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
D. Information Common to the Miscellaneous and Safety Plans Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liabilities were determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2023 total pension liabilities were based on the following actuarial methods and assumptions:

Miscellaneous and Safety (Fire and Police)
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 6.90% (2)
Mortality Rate Table Derived using CalPERS Membership
Data for all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
(1) Depending on age, service, and type of employment
(2) Net of pension plan investment and administrative expenses, including inflation (3) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Mortality rates incorporate generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for each Plan was 6.90%.

The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) 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, each 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 for each Plan. 92 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
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. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.

The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.

The expected real rates of return by asset class are as follows:

Assumed
Asset Real Return
Asset Class (a) Allocation (a),(b)
Global Equity - Cap-Weighted 30.0% 4.54%
Global Equity - Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

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

93 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
E. PARS Supplemental Retirement Plan
Benefits Provided - Effective October 1, 2001, the City contracted with the Public Agency Retirement System (PARS), to sponsor a supplemental Retirement Enhancement Plan created in accordance with IRC Section 401(a), which is a qualified agent multiple-employer defined benefit pension plan covering all eligible employees of the City. All eligible employees covered by this plan are fully vested. The Plan is closed to new participants. Eligibility requirements are shown in the table below:

Eligibility Tier I Tier II Tier III Tier IV
City Manager prior to December 31, 2004 X
Department Head prior to December 31, 2004 X
City Manager on or after December 31, 2004 X
Department Head on or after December 31, 2004 X
At least 55 years of age X X X X
5 years of continuous service X X
10 years of continuous service X X
Terminated with City and concurrently retired under
CalPERS under a regular service retirement on or after
October 1, 2002 XXXX
The retirement benefit for each Tier is as follows:

Retirement Benefit Tier I Tier II Tier III Tier IV
Full-time City service: 3%@55 less CalPERS 2.7%@55 X X
Full-time non-City service: 3%@55 less CalPERS 2%@55 X X 3%@55 less CalPERS 2.7%@55 X X
Full-time City service X X
Also, effective October 1, 2001, the City contracted with PARS to sponsor an Excess Benefit Plan, created in accordance with the IRC Section 415(m), which is a qualified governmental excess benefit arrangement covering all employees participating in the Retirement Enhancement Plan. Benefits are paid in the same form, time, and periods as under the Retirement Enhancement Plan. All eligible employees covered by this plan are fully vested. The Plan is also closed to new participants.

94 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
The Plan provides a monthly benefit equal to one-twelfth of the difference between the number of credited service years multiplied by the PARS Benefit Factor and the number of credited service years multiplied by the PERS Benefit Factor. The PARS Benefit Factor is dependent upon the retirement age as shown in the chart below. The PERS Benefit Factor also depends upon the retirement age as discussed in Notes 10B and 10C above. The monthly benefits are also subject to a 2% annual cost of living increase.

PARS Benefit Factor
Age at Age
Retirement Factor
52 2.640%
53 2.760%
54 2.880%
55+ 3.000%
These Plan assets are held by a Trust for the exclusive benefits of plan participants as their beneficiaries.

Assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City.

Employees Covered – As of the June 30, 2024 measurement- date, the following employees were covered by the benefit terms for the Plan:

PARS
Inactive employees or beneficiaries currently receiving benefits 8 Inactive employees entitled to but not yet receiving benefits 0 Active employees 0
Total 8
All Plan participants were retired as of June 30, 2025.

Contributions - The City makes all contributions necessary to fund the benefits available under the Plan.

Employees are not permitted to make any contributions.

The City contributed $338,000 to the Plan during the fiscal year ended June 30, 2025.

Net Pension Liability - The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

95 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liability was determined using an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024 using standard update procedures. The June 30, 2023 total pension liability was based on the following actuarial methods and assumptions:

PARS Plans
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Amortization period 4-year fixed period for 2024/25
Actuarial Assumptions:

Discount Rate 3.20% at June 30, 2023 and 3.20% at June 30, 2024 Inflation 2.50%
Investment Rate of Return 3.20% at June 30, 2023 and 3.20% at June 30, 2024 Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Scale Mortality projected fully generational with Scale MP-2021 Discount Rate - The discount rate used to measure the total pension liability for the Plan was 3.20%. The Plan’s long-term expected rate of return was determined by adding expected inflation to expected longterm real returns and reflecting expected volatility and correlation based upon the investment of all assets in PARS’ diversified Moderately Conservative portfolio.

The table below reflects the expected real rates of return by asset class.

Asset Class Component
Target Allocation
Qualified and NonQualified Assets (a)
Expected
Real Rate
of Return
Global Equity 10.0% 4.56%
Fixed Income 22.0% 0.78%
Cash 68.0% -0.05%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 3.20%
(a) Qualified assets invested in PARS-Moderately
Conservative Trust. Non-Qualified assets in cash.

Rate of return developed based on qualified
and non-qualified assets.
96 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Changes in the Net Pension Liability - The changes in the Net Pension Liability for the Plan as of the June 30, 2024 Measurement Date follows:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) $2,911,225 $2,097,966 $813,259 Changes in the year:

Service cost
Interest on the total pension liability 90,379 90,379
Differences between actual and expected experience 57,591 57,591 Changes in assumptions
Changes in benefit terms
Contribution - employer 338,000 (338,000)
Contribution - employee
Net investment income 132,673 (132,673)
Administrative expenses (8,655) 8,655
Benefit payments, including refunds of employee
contributions (173,771) (173,771)
Net changes (25,801) 288,247 (314,048)
Balance at June 30, 2024 (Measurement Date) $2,885,424 $2,386,213 $499,211 Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s 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:

PARS
1% Decrease 2.20%
Net Pension Liability $833,111
Current Discount Rate 3.20%
Net Pension Liability $499,211
1% Increase 4.20%
Net Pension Liability $218,901
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report. 97 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 - PENSION PLANS (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2025, the City recognized pension expense of $103,506 for the Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Plan from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $338,000 Differences between actual and expected experience
Changes in assumptions
Net differences between projected and actual earnings on plan investments 36,920
Total $374,920 $0
The Plan reported $338,000 as deferred outflows of resources related to contributions subsequent to the measurement date, that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2026 $18,460
2027 45,483
2028 (13,776)
2029 (13,247)
PARS
98 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plan Plan Description – The City’s Other Post Employment Benefit Plan is a single-employer defined benefit OPEB plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75.

The City provides postretirement health care benefits to employees who retire in good standing from the City after attaining the age of 50 and to certain employees who retire due to disability. As of June 30, 2025, there were 228 participants receiving these health care benefits.

Benefits Provided – In order to qualify for postemployment medical and dental benefits an employee must retire from the City and maintain enrollment in one of the City’s eligible health plans. In addition, there are eligibility rules and contribution requirements defined in the Memorandum of Understanding (MOU) with each employee group. For all retirements effective as of January 1, 2012 through June 30, 2012, the City-paid contribution for retiree health will be equal to the Minimum Employer Contribution (MEC) as set by CALPERS. For retirements effective on or prior to December 31, 2011, the benefit is set at the amount the employee or retiree was receiving as of December 31, 2011 for health benefits. The eligibility, rules, and Plan Benefits for each MOU and associated benefits are summarized below as of June 30, 2025:

Manteca Police
Officers
Association Fire
Manteca Police
Employees
Association
Technical Support
Services General Services Management
Benefit Types Provided Medical only Medical only Medical only Medical only Medical only Medical only Duration of Benefits Lifetime Lifetime Lifetime Lifetime Lifetime Lifetime Required Service:

Basic
Supplemental
Minimum Age 50 50 50 50 50 50
Dependent Coverage Yes Yes Yes Yes Yes Yes
City Contribution 100% 100% 100% 100% 100% 100% 100%
City Contribution Cap per Month
(Basic) retirement on or prior to
12/31/2011 $630 for single $631 for single $640 for single $725 for single $725 for single $683 for single $1,170 for two
party
$1,165 for two
party
$1,165 for two
party
$1,390 for two
party
$1,165 for two
party
$1,361 for two
party
$1,440 for family $1,490 for family $1,515 for family $1,800 for family $1,875 for family $1,810 for family City Contribution Cap per Month
(Basic) retirement after 12/31/2011,
but hired on or before 12/31/2011 $675 $675 $675 $675 $675 $675 City Contribution Cap per Month
(Basic) hired after 12/31/2011 $158 $158 $158 $158 $158 $158 Retirement under CALPERS

99 CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) The City elected to establish a Health Reimbursement Arrangement for Retirees to provide a funding mechanism for the pay-as-you go OPEB benefit during fiscal year 2012. This Health Reimbursement Arrangement is not a trust and is not considered a component unit of the City and has been excluded from these financial statements.

For the year ended June 30, 2025, the City’s contributions to the Plan were $2,105,834.

Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2024:

Active employees 438
Inactive employees or beneficiaries currently
receiving benefit payments 227
Inactive employees entitled to but not yet
receiving benefit payments 81
Total 746
B. Total OPEB Liability
Actuarial Methods and Assumptions – The City’s total OPEB liability was measured as of June 30, 2024 and the total OPEB liability was determined by an actuarial valuation dated June 30, 2024 based on the following actuarial methods and assumptions:

Actuarial Assumptions
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Actuarial Assumptions:

Discount Rate 3.93% at June 30, 2024 and 3.65% at June 30, 2023 (1) Inflation 2.50%
Payroll Growth 2.75% (2)
PEMHCA Minimum Increases 3.50%
Contribution Policy No pre-funding
Cap Increases None beyond amounts specified
Mortality Rate CalPERS 2000 -2019 Experience Study (3)
Healthcare Trend Rates Non-Medicare - 7.9% 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
Participation at Retirement Eligible for portion of projected premium covered by cap in retirement year: 90% in 2016, decreasing to an ultimate rate of 50% in 2048 and later years; Eligible for PEMHCA minimum only: 50%
(1) Bond Buyer 20-Bond Index
(2) Merit - Tables from CalPERS 2000-2019 Experience Study (3) Mortality projected fully generational with Scale MP-2021 The underlying mortality assumptions were based on the CalPERS 2000-2019 Experience Study and all other actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience study for the period 2000-2019.
100

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) Change in Assumptions – The discount rate increased from 3.65% at June 30, 2023, to 3.93% at June 30, 2024, based on the municipal bond rate as of the measurement date.

C. Changes in Total OPEB Liability
The changes in the total OPEB liability follows:

Total OPEB
Liability
Balance at June 30, 2023 Measurement Date $37,877,467
Changes Recognized for the Measurement Period:

Service cost 1,129,955
Interest on the total OPEB liability 1,387,366
Changes of assumptions (1,158,475)
Actual vs. expected experience 169,416
Benefit payments * (1,994,798)
Net changes (466,536)
Balance at June 30, 2024 Measurement Date $37,410,931
* Includes $1,552,798 cash benefit payments and $442,000 implied subsidy benefit payments by the City.

D. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:

Total OPEB Liability/(Asset)
Current
Discount Rate -1% Discount Rate Discount Rate +1%
(2.93%) (3.93%) (4.93%)
$41,838,660 $37,410,931 $33,713,989
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates:

Total OPEB Liability/(Asset)
Healthcare Cost Trend Rates
1% Decrease Current Trend 1% Increase
$36,182,839 $37,410,931 $39,104,817
101

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 - OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense of $2,365,474. At June 30, 2025, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $2,105,834 Differences between actual and expected experience 960,102 ($23,320) Changes of assumptions 2,537,314 (6,421,261)
Total $5,603,250 ($6,444,581)
$2,105,834 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2026.

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

Year Annual
Ended June 30 Amortization
2026 ($97,165)
2027 (10,306)
2028 (411,523)
2029 (1,031,933)
2030 (1,061,497)
Thereafter (334,741)
NOTE 12 - DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Sections 401 and 457. Under the Plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, and death or in an emergency as defined by the Plans.

The Plans are part of the public agency agent multiple-employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC) and, Newport Retirement Services (Newport). Benefit provisions under the Plans are established by City resolution. The City has no liability for any losses incurred by the Plans and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Mission Square and Newport to manage and invest the assets of the Plans. The administrator pools the assets of the Plan with those of other participants and does not make separate investments for the City. The assets in the Plans are the sole property of the participants or their beneficiaries. Since the assets held under the Plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plans require investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts. A summary of eligibility and employer contribution requirements for the City’s Plans are shown below by bargaining unit:
102

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 12 - DEFERRED COMPENSATION PLAN (Continued)
Fire
The City will contribute $20.00 per month to the deferred compensation plan.

If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2026.

Manteca Mid-Manager Association
Employees receive a non-PERSable stipend equal to 2% of their base salary. The 2% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation. Any unused stipend will be automatically cashed out on June 30. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which they were hired.

If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2026.

Manteca Police Employees' Association
The City will contribute 4% of base salary per month to the deferred compensation plan.

If an employee chooses to decline health insurance coverage, the City will contribute to the employee's deferred compensation account or cash in lieu of deferred compensation of $600 each month.

Manteca Police Officers' Association
The City will contribute 1% of base salary per month to the deferred compensation plan.

If a member chooses to decline health insurance coverage, the City will issue a non-PERS stipend of$ $600.00 in lieu of medical coverage, provided proof of coverage is obtained through June 30, 2026.

Manteca Public Safety Management Association
Employees will receive a non-PERSable stipend equal to 6% of their base salary. The 6% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation or on June 30th each year if not cashed out or placed into a deferred compensation account. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which If an employee chooses to decline health insurance coverage, the City will contribute to the employee' s deferred compensation account or cash in lieu of deferred compensation of $600 each month through June 30, 2026.

Operating Engineers Local Union Unit 3
The City will contribute 5% of base salary per month to the deferred compensation plan.

If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2026 Manteca Technical and Support Services Association
The City will contribute 2% of base salary per month to the deferred compensation plan.

If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2026.

Confidential Employees Unit
Benefits mirror the designated units for each employee identified in this MOU.

Executive Management
Employees will receive a non-PERSable stipend equal to 6% of their base salary. The 6% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation or on June 30 each year, if not cashed out or placed into a deferred compensation account. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which The City will also contribute 5% per month to the deferred compensation plan.

If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month The City’s required contributions for the year ended June 30, 2025 totaled $1,098,553. 103

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 13 - RISK MANAGEMENT
A. Coverage
On June 1, 2002 the City joined the Municipal Pooling Authority’s workers’ compensation program. The City joined the Authority’s general liability program on January 1, 1998. The Authority provides coverage against the following types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies as follows:

Type of Coverage (Deductible) Coverage Limits
Liability ($100,000) $29,000,000
All Risk Fire and Property:

Property ($25,000 all risk, $5,000 fine art, $150,000 water claims) 1,000,000,000 Flood* 25,000,000
Boiler and Machinery ($10,000) 100,000,000
Vehicle Physical Damage ($3,000 police; $2,000 others) 250,000 Cyber Liability ($50,000) 4,000,000
Public Entity Pollution Liability ($250,000) 2,000,000
Government Crime ($2,500) 5,000,000
Workers' Compensation ($0) Statutory Limit
Employment Liability ($50,000) 2,000,000
* $100,000 minimum deductible per occurrence, except Zone A and V, which are subject to a $500,000 deductible per occurrence
The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.

The City’s deposits with the Authority are in accordance with formulas established by the Authority. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

Audited financial statements can be obtained from Municipal Pooling Authority, 1911 San Miguel Drive #100, Walnut Creek, CA 94596.
104

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 13 - RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Insurance Internal Service Fund.

Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims.

The City’s liability for uninsured claims was estimated by management based on prior years’ claims experience as follows:

Workers’
Compensation
Claims
General
Liability Claims Total
Balance June 30, 2023 $776,550 $839,092 $1,615,642
Net change in:

Liability for current fiscal year claims 93,880 93,880
Liability for prior fiscal years' claims and
claims incurred but not reported (IBNR) (21,055) 179,189 158,134 Claims paid (21,127) (496,942) (518,069)
Balance June 30, 2024 734,368 615,219 1,349,587
Net change in:

Liability for current fiscal year claims 238,952 238,952 Liability for prior years' claims and
claims incurred but not reported (IBNR) (64,040) 539,854 475,814 Claims paid (5,207) (418,656) (423,863)
Balance June 30, 2025 $665,121 $975,369 $1,640,490
Claims liability, due within one year $622,856 $975,369 $1,598,225 For the fiscal years ended June 30, 2025, 2024, and 2023 respectively, the amount of settlements did not exceed insurance coverage.

NOTE 14 - LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivables or liabilities with an initial, individual value of $5,000 or more.

Lessor - The City is a lessor for noncancellable leases of buildings and facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.

105

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 - LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Lessee - The City is a lessee for a noncancellable leases of buildings and equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide and proprietary fund financial statements.

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

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

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

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

106

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 - LEASES (Continued)
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2025 were:

Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
Communication Site Leases $499,746 $470,657
Business-Type Activities
Leases Receivable (Lessor)
Building Leases 2,212,881 2,157,595
Total Leases Receivable $2,712,627 $2,628,252
Communication Site Leases – The City leases various locations to third parties for the provisions of cable/mobile/wireless communications services. During the year ended June 30, 2025, the City had four leases, with original lease terms ranging from ten to twenty-five years, including the optional extension periods, and as of June 30, 2025, the leases had 1 to 12 years remaining. The City recognized $76,544 in lease revenue and $990 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.

Municipal Golf Course Leases – The City leases buildings to a third party for the purpose of providing banquet facilities and a snack bar at the City’s municipal golf course. During the year ended June 30, 2025, the City had three leases, with original lease terms of ten to twenty years, including the optional extension periods. The City recognized $116,110 in lease revenue and $83,710 in interest revenue during the current fiscal year related to these leases.
107

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 - LEASES (Continued)
C. Leases Payable
A summary of lease transactions for the fiscal year ended June 30, 2025, are as follows:

Balance Balance Current
June 30, 2024 Additions Deductions June 30, 2025 Portion Governmental Activities:

Building - Hensley $156,148 $156,148
Equipment 7,224 $174,542 54,727 $127,039 $63,583
Total Governmental Activities $163,372 $174,542 $210,875 $127,039 $63,583 Business-Type Activities:

Building - Mobile Modular $1,223 $1,223
Equipment 9,463 $19,907 9,664 $19,706 $11,526
Total Business-Type Activities $10,686 $19,907 $10,887 $19,706 $11,526 Total Leases Payable $174,058 $194,449 $221,762 $146,745 $75,109 Building Lease - Hensley – The City entered into a five-year lease agreement with Hensley Properties, as lessee for the use of office space that commenced in May 2020. An initial lease liability was recorded in the amount of $634,944 during fiscal year 2022 and as of June 30, 2025, the value of the lease liability was $0. The City is required to make monthly principal and interest payments of $13,020. The lease bears the City’s incremental borrowing rate of 4.57%. The value of the right-to-use asset as of the end of the current fiscal year and the associated accumulated amortization were $0 as the lease was fully retired.

Equipment Leases – The City entered into two three-year lease agreement with Konica Minolta, as lessee for the use of office equipment in February 2022. An initial lease liability was recorded in the amount of $20,831 during fiscal year 2022. The City is required to make monthly principal and interest payments of $6,987. The leases bear the City’s incremental borrowing rate of 4.26%. The value of the lease liability, right-to-use assets as of the end of the current fiscal year and the associated accumulated amortization were $0 as the leases were fully retired.

The City entered into a five-year lease agreement with Pitney Bowes, as lessee for the use of office equipment that commenced in August 2021. An initial lease liability was recorded in the amount of $31,317 during fiscal year 2022 and as of June 30, 2025, the value of the lease liability was $6,327. The City is required to make monthly principal and interest payments of $6,349. The lease bears the City’s incremental borrowing rate of 5.77%. The value of the right-to-use asset as of the end of the current fiscal year was $31,317 and had accumulated amortization of $24,096.

The City entered into a four-year lease agreement with De Lage Laden Public Finance, as lessee for a City-wide copier lease. An initial lease liability was recorded in the amount of $155,685 during fiscal year 2025 and as of June 30, 2025, the value of the lease liability was $117,006. The City is required to make monthly principal and interest payments of $55,904. The lease bears the City’s incremental borrowing rate of 3.110%. The value of the right-to-use asset as of the end of the current fiscal year was $155,685 and had accumulated amortization of $39,642.
108

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 - LEASES (Continued)
The City entered into a two-year lease agreement with Caltronics Business Systems, as lessee for the Engineering, Police Department and Animal Shelter copier lease. An initial lease liability was recorded in the amount of $25,234 during fiscal year 2025 and as of June 30, 2025, the value of the lease liability was $12,766. The City is required to make monthly principal and interest payments of $12,930. The lease bears the City’s incremental borrowing rate of 2.363%. The value of the right-to-use asset as of the end of the current fiscal year was $24,976 and had accumulated amortization of $5,069.

The City entered into a five-year lease agreement with Caltronics Business Systems, as lessee for the Engineering Department copier lease. An initial lease liability was recorded in the amount of $13,529 during fiscal year 2025 and as of June 30, 2025, the value of the lease liability was $10,646. The City is required to make monthly principal and interest payments of $3,311. The lease bears the City’s incremental borrowing rate of 3.511%. The value of the right-to-use asset as of the end of the current fiscal year was $29,941 and had accumulated amortization of $4,386.

Building Lease – Mobile Modular – The City entered into a five-year lease agreement with Mobile Modular Management Corporation, as lessee for the use of office space that commenced in August 2021. An initial lease liability was recorded in the amount of $21,922 during fiscal year 2022. The City is required to make monthly principal and interest payments of $7,341. The lease bears the City’s incremental borrowing rate of 3.15%. As of June 30, 2025, the value of the lease liability was $0, the value of the right-to-use asset as of the end of the current fiscal year and the associated accumulated amortization were $0 as the lease was fully retired.

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

Governmental Activities Business-Type Activities
Year Ending Principal Interest Principal Interest
June 30 Payments Payments Total Payments Payments Total 2026 $63,583 $3,001 $66,584 $11,526 $384 $11,910
2027 50,792 1,274 52,066 6,994 155 7,149
2028 11,296 141 11,437 1,186 5 1,191
2029 1,368 12 1,380
$127,039 $4,428 $131,467 $19,706 $544 $20,250
D. Shopping Center Parking Lease Agreement
In fiscal year 2007, the City entered into a lease agreement to lease public parking at a local shopping center. The lease became effective in fiscal year 2012 and the City is to make annual lease payments by September 1 of each year equal to 55% of the previous fiscal year’s actual local sales taxes generated from the shopping center. Although the lease payments are based on the sales taxes collected, they can be made from any source of legally available funds. If the local sales taxes are insufficient in one year for the City to make the full scheduled lease payment, the shortfall carries to the next year without interest. Payments in excess of the scheduled annual lease payments are credited first to any outstanding shortfall and then against the total amount due under the lease. The total amount of lease payments to be made under the agreement is $61,704,140; however, the agreement terminates in 2047, regardless of whether this amount has been paid to the developer. Therefore, the City has not recorded a liability for the lease, since the payments are contingent upon the collection of sales taxes. During fiscal year 2025, payments made to the developer under the agreement were $323,1713 and payments to date total $4,974,992. 109

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 15 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes SBITA assets/liabilities with an initial, individual value of $5,000 or more.

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

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.

The City monitors changes in circumstances that would require a remeasurement of its subscription 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 capital assets and subscription liabilities are reported as longterm debt on the statement of net position.

A summary of governmental activities SBITA transactions for the fiscal year ended June 30, 2025, are as follows:

Balance Balance Current
June 30, 2024 Additions Deductions June 30, 2025 Portion Governmental Activities:

Subscription Liabilities
Axon $346,987 $18,165 $105,893 $259,259 $90,429
LCT Applications and Platforms 35,379 11,479 23,900 11,790 DebtBook SaaS Application 21,051 9,389 11,662 11,662
Microsoft Enterprise 699,329 1,378,806 699,346 1,378,789 680,295 NextRequest 39,922 7,592 32,330 7,783
Accela Saas Subscription 124,077 93,922 30,155 30,155
ESRI 198,900 68,036 130,864 64,430
Flock Safety 794,682 794,682
Total Subscription Liabilities $1,142,668 $2,514,630 $995,657 $2,661,641 $896,544 110

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 15 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (Continued) As of June 30, 2025, the City had eight active subscriptions. The subscriptions have annual payments that range from $7,592 to $717,181 and interest rates that range from 2.1843% to 3.238%. As of June 30, 2025, the total combined value of the subscription liability was $2,661,641. The combined value of the right to use subscription assets as of the end of the current fiscal year was $5,070,206 and had accumulated amortization of $1,255,349.

The future principal and interest subscription liability payments as of June 30, 2025 for the active subscriptions, were as follows:

Governmental Activities
Year Ending Principal Interest
June 30 Payments Payments Total
2026 $896,544 $49,984 $946,528
2027 1,036,383 81,537 1,117,920
2028 295,339 24,465 319,804
2029 217,215 15,133 232,348
2030 216,160 7,589 223,749
$2,661,641 $178,708 $2,840,349
NOTE 16 - COMMITMENTS AND CONTINGENCIES
A. Litigation
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.

B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
111

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Continued)
C. Public Facilities Implementation Plan
The City has developed a Public Facilities Implementation Plan (PFIP) to ensure that public facilities are adequate and constructed in accordance with the adopted master plans for water, sewer, storm drainage and traffic as the City grows and develops in accordance with its General Plan. Development Impact Fees are collected at or near the time of development and are used wherever practical to finance the expansion of infrastructure necessary to accommodate the demand for new capacity. In certain cases, developers may construct public improvements that are in the PFIP and enter into reimbursement agreements with the City. Developers are then granted credit against the fees owed or are reimbursed any remaining amounts owed to the developer by the City when sufficient funds are available from future development impact fees paid by subsequent development that benefit from the available improvements.

As of June 30, 2025, the City had outstanding reimbursement commitments totaling $23,829,121.

D. Transient Occupancy Tax Sharing Agreement
In fiscal April 2018, the City entered into a Disposition and Development Agreement (DDA) with a Developer to construct a destination resort (Project). Under the terms of the agreement, the City is to convey land to the Developer for $675,000 in exchange for an agreement to develop the Project on the property. The sales price of the land is to be paid solely using transient occupancy tax revenue (TOT) generated by the Project. Escrow closed on the land in August 2018 and construction of the Project began in fiscal year 2019. Upon the close of escrow, the City will give the Developer a ten-year option to purchase an adjacent property at the fair market value at the time of purchase. For eighteen years following the issuance of a certificate of occupancy for the Project, the City may not provide financial incentives to any other entities for development of a similar project larger than 5,000 square feet.

In connection with the DDA, the City also entered into a Development Agreement (DA) with the Developer. Under the terms of the DA, beginning when TOT revenue is first received from the Project and continuing for 25 years thereafter, the City will allocate TOT revenue received on a quarterly basis in the following priority:
(1) Pay $2 million each year to the Developer, without interest. (2) Pay the Developer and the City pro-rata for reimbursable fees, amortized over two years, without interest, including any reimbursable fee shortfalls from prior years. Any reimbursable fee shortfalls remaining after two years will roll over to future years until paid in full. Reimbursable fees are any development fees paid by the City or Developer in cash or fee credit to any Non-City Agency in connection with the Project and any development fees paid by the Developer to planning/inspection consultants or to the City, up to $500,000.
(3) Pay the City for the property purchase price, amortized over 10 years, without interest, including any purchase price shortfalls from prior years. Any shortfalls remaining after 10 years will roll over to future years until paid in full. (4) Pay the City for deferred City fees, amortized over 20 years, without interest, including any shortfalls from prior years. Any shortfalls remaining after 20 years will roll over until paid in full. Deferred City fees are fees owed by the Developer to the City in connection with the Project and fees paid by the City to planning/inspection consultants in connection with the Project in excess of the $500,000 paid by the Developer in (2) above. (5) Pay the Developer 75% of the remaining TOT revenue for the first 10 years and 50% for the following 15 years.
112

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Continued)
Finally, under the terms of the DDA, the City Council may not increase the transient occupancy tax rate applicable to the Project to a rate greater than (a) 12% for 10 years following the issuance of a certificate of occupancy for the Project, or (b) the regional average transient occupancy tax beginning in the 11th year following the issuance of a certificate of occupancy for the Project.

The grand opening of the Project was held in June 2021.

The City began collecting TOT revenue related to the Project during fiscal year 2023 and $2,897,483 was paid to the Developer during fiscal year 2025 and $13,018,575 has been paid to date. As of June 30, 2025, the deferred fees due from the developer total $7,184,206, which have been recorded as accounts receivable in the applicable governmental and enterprise funds, which will be paid as the General Fund collects the TOT revenue, as noted above. In addition, the General Fund has recorded a loan receivable in the amount of $405,000 as of June 30, 2025.

E. Sales Tax Sharing Agreement – Furniture Retailer
In June 2018, the City entered into a sales tax sharing agreement with a furniture retailer in the amount of $3,000,000. The agreement became effective in June 2018 and the City is to make semi-annual payments each year equal to 50% of the total sales tax generated by the retailer and received by the City. Although the payments are based on the sales taxes collected, they can be made from any source of legally available funds. The agreement terminates on the date that the City has paid $3,000,000 or ten years from the retail store opening, regardless of the unpaid balance. Construction of the retail furniture store was delayed due to the COVID-19 emergency; however, the project was fully permitted in July 2020 and construction began immediately following. The store opened in June 2021. During fiscal year 2025, payments made to the developer under the agreement were $139,279 and payments to date total $595,222.

F. Construction Commitments
The City has the outstanding construction commitments totaling $911,783 as of June 30, 2025.

NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26. 113

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
ABx1 26 and AB1484 created three regulatory authorities, the Successor Agency Oversight Board, State Controller and Department of Finance (DOF), to review former Agency’s asset transfer, obligation payments and wind down activities. ABx1 26 specifically directs the State Controller to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency.

In fiscal 2011 and 2012, the former Redevelopment Agency transferred $58,959,477 of assets to the City.

ABx1 26 and AB 1484 contain provisions that such transfers are subject to a review by the State Controller’s Office. According to Health and Safety Code 34167.5, if such an asset transfer did occur during that period and the government agency that received the assets is not contractually committed to a third party for the expenditure or encumbrance of those assets, to the extent not prohibited by state and federal law, the Controller shall order the available assets to be returned to the former Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency. As of June 30, 2012, assets totaling $44,129,682, comprised of current assets of $43,670,205 and capital assets of $459,477, were held by the City. During fiscal year 2013, the City returned the current assets of $43,670,205 to the Successor Agency and only the capital assets of $459,477 were held by the City. The City received the results of the State Controller’s asset transfer review in February 2015 that indicates the City is to return the capital assets in the amount of $459,477 to the Successor Agency. Concurrent with the finalization of the asset transfer review, the City began working with the California Department of Finance (DOF) on the Agency’s Long Range Property Management Plan (LRPMP). On December 17, 2015 the DOF approved the revised LRPMP and the Agency’s use or disposition of all properties listed on the plan. This included the retention by the City of the $459,477 capital asset previously identified in the State Controller’s asset transfer review. Based on this approval, the identified asset will not be returned to the Agency.

Based on the passage of Senate Bill 107, the Agency amended the LRPMP to allow for the retention of one parcel that constituted a lot dedicated solely to public parking. The Oversight Board approved the amended LRPMP on June 29, 2016 and the revised LRPMP was submitted to the DOF for final approval. The final approval was received from the DOF during fiscal year 2017 and the identified parcel was transferred to the City during that fiscal year.

Effective January 31, 2012, the Redevelopment Agency was dissolved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and the remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.

Under the provisions of AB 1484, the City can elect to become the Housing Successor and retain the housing assets. The City elected to become the Housing Successor and on February 1, 2012, certain housing assets were transferred to the City’s Low and Moderate Income Housing Asset Special Revenue Fund.

The activities of the Housing Successor are reported in the Low and Moderate Income Housing Assets Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law. 114

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which was comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor. On July 1, 2018, the duties of the Manteca Oversight Board transferred to a new San Joaquin Countywide Consolidated Oversight Board, which will now be responsible for overseeing the winddown affairs of all Successor Agencies in San Joaquin County, including the Manteca Successor Agency.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

AB1484 required the Successor Agency to complete two due diligence reviews – one for the low and moderate income housing assets of the Successor Agency (Housing DDR), and a second for all other balances of the Successor Agency (Non-housing DDR). The due diligence reviews are to calculate the balance of unencumbered balances as of June 30, 2012 available to be remitted to the County for disbursement to taxing entities. The Successor Agency submitted both due diligence reviews to the State Department of Finance for review and approval. The Department of Finance approved the Housing DDR in December 2012, which indicated that no funds were available for distribution. The Department of Finance did not initially approve the Non-housing DDR, which indicated that the Successor Agency had an unencumbered balance of $1, and the State made adjustments to the Non-housing DDR and instead made a demand for the return of funds totaling $10,161,469, which was remitted to the County in May 2013. The Successor Agency received its Finding of Completion in May 2013 which means it can now utilize bond proceeds for projects consistent with the original bond covenants.

In addition to the above transactions, the Non-housing DDR indicated that the City was to return unspent bond proceeds held by the Special Apportionment Streets Capital Improvement Fund totaling $43,670,205 to the Successor Agency. The City made the transfer during fiscal year 2013.

115

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
On October 22, 2013 the Oversight Board approved Bond Proceeds Funding Agreements (Agreements) between the Successor Agency and the City of Manteca in relation to specific bond projects associated with the $43,670,205 in bond proceeds transferred back to the Successor Agency in Fiscal Year 2012-13. The DOF approved the Agreements on November 8, 2013 and December 9, 2013. The Agency included the requests for expenditure of the associated funds on the 2013-14B Recognized Obligation Payment Schedule (ROPS). Proceeds in the amount of $12,009,030 were transferred from the Successor Agency to the City as of June 30, 2013 and were recorded in the Redevelopment Bonds Project Fund. An additional $500,000 was approved for transfer on the Agency’s 2014-15A ROPS and $1,500,000 was approved for transfer on the Agency’s 2015-15B ROPS. One of the eligible bond projects listed on the DOF approved 2013-14B ROPS was the reimbursement to the City of Manteca in the amount of $3,864,030 for the land purchased in association with the proposed South County Courthouse and Administration Complex (APN 222-250-060).

The original source of funding for the land purchase was the Development Mitigation Fund. During 2016 the Development Mitigation Fund was reimbursed the final land cost in the amount $3,811,408 via an operating transfer from the Redevelopment Bonds Project Fund.

On February 24, 2015 the Oversight Board approved a Consolidated Non-Housing Bond Proceeds Funding Agreement (Agreement) between the Successor Agency and the City of Manteca. This final agreement approved the transfer of all remaining bond proceeds to the City for use on bond qualified expenditures.

The remaining bond proceeds was included for approval in the Agency’s 2015-16A ROPS. The DOF approved both the Agreement and the transfer of the remaining bond proceeds as listed on the 2015-16A ROPS on April 15, 2015. All remaining bond proceeds and interest totaling $29,671,675 was transferred from the Agency to the City as of June 30, 2016.

Cash and investments of the Successor Agency as of June 30, 2025 are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2025.

B. Redevelopment Agreements and Notes Receivable
The Successor Agency assumed the non-housing loans receivable of the Redevelopment Agency as of February 1, 2012. The Redevelopment Agency engaged in programs designed to encourage economic development. Under these programs, grants or loans were provided under favorable terms to developers who agreed to expend these funds in accordance with the Agency’s terms. The balances of the notes receivable arising from these programs at June 30, 2025 are set forth below:

AKF Development, LLC $54,080
Cabral Western Motors 338,040
Total notes receivable 392,120
Less: Allowance for conditional grants (392,120)
Net long-term notes receivable $0
116

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
AKF Development, LLC (Spreckels Park)
On April 8, 2003 the Agency loaned an additional $54,080 to AKF Development, LLC, of which $54,080 was for assistance from the Agency’s Fee Reduction Program. This additional loan was to partially finance the construction costs of Sexton Chevrolet Property in order to assist in the elimination of blight in an adjacent to the Project Area and will enhance the viability of the Project Area. The loan bears interest at five percent annual interest, and was due the earliest of the sixth anniversary of the opening of the automobile dealership or August 1, 2009. AKF signed a promissory note secured by a deed of trust.

The Agency will forgive repayment of the loan if certain provisions regarding completion of public improvements, job creation, continued business for five years, and sales tax generation are met. As of June 30, 2025, the developer had not met all of the forgiveness provisions of the loan agreement, but the Agency had not yet required repayment of the loan and the principal balance outstanding was $54,080.

Cabral Western Motors
On May 14, 2002 the Agency agreed to loan Cabral Western Motors $338,040 at three percent interest to assist with the expansion of its facility, which includes a $311,000 Forgivable Business Development Loan and a $27,040 Development Fee Reduction Loan. The loans are secured by a second and third deed of trust, respectively. As of June 30, 2025, the principal balance outstanding was $338,040.

Conditional Grants
The Agency has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the Agency’s housing stock and/or its supply of low-and-moderate income housing.

Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The Agency accounts for these loans as conditional grants in the Fiduciary fund financial statements, and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan.

C. Capital Assets
The Successor Agency assumed the non-housing capital assets of the Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the assets constructed, net of interest earned on the invested proceeds over the same period.

117

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Capital assets recorded as of June 30, 2025 comprise:

Balance at Balance at
June 30, 2024 Additions June 30, 2025
Capital assets not being depreciated:

Land $726,026 $726,026
Capital assets being depreciated:

Buildings and improvements 3,788,211 3,788,211
Less accumulated depreciation (2,299,121) ($125,618) (2,424,739) Net capital assets being depreciated 1,489,090 (125,618) 1,363,472 Capital assets, net $2,215,116 ($125,618) $2,089,498
D. Long-Term Debt
The Successor Agency assumed the long-term debt and interest-rate swap agreement of the Redevelopment Agency as of February 1, 2012.

1. Current Year Transactions and Balances
All of the long-term debt of the Successor Agency is comprised of Tax Allocation Bonds issued by the Redevelopment Agency. The Bonds are special obligations of the Agency and are secured only by the Agency’s tax increment revenues. Tax Allocation Bond transactions were as follows:

Balance Balance Current
June 30, 2024 Retirements June 30, 2025 Portion
Redevelopment Agency Tax
Allocation Bonds -
Tax Allocation Refunding Bonds Series 2020A and 2020B
Subordinated Tax Allocation Bonds 1.590-4.0% $83,185,000 $4,385,000 $78,800,000 $4,450,000 Plus: Unamortized Bond Premium 4,351,408 235,211 4,116,197 Total Successor Agency Debt $87,536,408 $4,620,211 $82,916,197 $4,450,000 118

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)

2. Redevelopment Agency Tax Allocation Bonds
The 2020 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the Successor Agency all payments due on the 2020 Bonds, and the Successor Agency will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.

The Successor Agency has pledged all future tax increment revenues, for the repayment of the 2020 Tax Allocation Refunding Bonds. The pledge of all future tax increment revenues end upon repayment of the remaining debt service of $104,424,032 for the Bonds, which is scheduled to occur in 2042.

With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. In addition, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2025 calculated by the County AuditorController was $31,501,962 and the total received by the Successor Agency for fiscal year 2025 debt service was $5,238,030, which the Agency used, along with cash on hand, to pay the $6,843,104 of fiscal year debt service.

3. Debt Service Requirements
Annual debt service requirements, are shown below:

For the Year
Ending June 30 Principal Interest
2026 $4,450,000 $2,360,709
2027 4,530,000 2,256,328
2028 4,610,000 2,137,456
2029 4,725,000 2,005,452
2030 4,845,000 1,867,018
2031-2035 26,300,000 7,010,544
2036-2040 19,845,000 5,353,618
2041-2043 9,495,000 2,632,907
Total 78,800,000 $25,624,032
Plus Bond Premium 4,116,197
Gross Long Term Debt $82,916,197

119

CITY OF MANTECA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 17 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
E. Commitments and Contingencies
Payable to San Joaquin County
When the Successor Agency sells capital assets, the net proceeds from the sale are to be remitted to the County Auditor-Controller for distribution to the taxing entities in the affected redevelopment area. During the year ended June 30, 2024, the Successor Agency sold a parcel of land to the City and the net proceeds of $1,760,625 were due and payable to the County as of June 30, 2025.

State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

NOTE 18 – SUBSEQUENT EVENTS
A. 2025 Wastewater Revenue Bonds
On November 5, 2025, the Manteca Financing Authority issued the 2025 Wastewater Revenue Bonds in the amount of $46,795,000 to refinance the Manteca Financing Authority Sewer Revenue Bonds, Series 2009, and the Sewer Revenue Refunding Bonds, Series 2012, and to finance certain improvements to the wastewater system. The 2025 Revenue Bonds are secured by installment payments payable by the City of Manteca under the Installment Sales Agreement dated November 1, 2025. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s wastewater system. Principal payments are due annually on December 1, with interest payments payable semi-annually on December 1 and June 1 through December 1, 2045.

B. City Credit Issuer Rating
As discussed in Notes 8B and 8C, due to the City being delayed in issuing the audited financial statements, Moody’s Investors Service withdrew the City’s issuer rating. In October 2025, the City worked diligently to finalize all continuing disclosure reports and request a new rating. The City received an AA rating for their issuer rating.
120

REQUIRED SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Total Pension Liability
Service Cost $2,785,261 $2,929,446 $3,359,127 $3,450,233 Interest 9,947,329 10,547,066 11,091,828 11,413,314
Differences between expected and actual experience (606,531) 895,276 280,782 (1,730,389) Changes in assumptions (2,540,846) 9,610,904 (1,373,783) Changes in benefits
Benefit payments, including refunds of employee contributions (5,583,081) (6,137,452) (6,508,026) (7,283,995) Net change in total pension liability 4,002,132 8,234,336 17,834,615 4,475,380 Total pension liability - beginning 134,576,742 138,578,874 146,813,210 164,647,825 Total pension liability - ending (a) $138,578,874 $146,813,210 $164,647,825 $169,123,205 Plan fiduciary net position
Contributions - employer $4,021,488 $4,687,535 $4,971,846 $5,489,151 Contributions - employee 1,275,356 1,337,368 1,321,071 1,484,945 Net investment income 2,149,298 530,419 10,909,900 9,098,992 Net Plan to Plan Resource Movement (269)
Administrative expenses (109,588) (59,337) (144,277) (168,715) Other Miscellaneous Income (Expense) (320,393)
Benefit payments, including refunds of employee contributions (5,583,081) (6,137,452) (6,508,026) (7,283,995) Net change in plan fiduciary net position 1,753,473 358,533 10,550,514 8,299,716 Plan fiduciary net position - beginning 95,608,088 97,361,561 97,720,094 108,270,608 Plan fiduciary net position - ending (b) $97,361,561 $97,720,094 $108,270,608 $116,570,324 Net pension liability - ending (a)-(b) $41,217,313 $49,093,116 $56,377,217 $52,552,881 Plan fiduciary net position as a percentage of the total pension liability 70.26% 66.56% 65.76% 68.93% Covered payroll $15,260,582 $15,917,657 $16,420,663 $17,179,599 Net pension liability as percentage of covered payroll 270.09% 308.42% 343.33% 305.90% Notes to Schedule:

Changes in assumptions. GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, 2018, 2019, 2020, 2021, 2023, and 2024 there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to

7.65 percent (without a reduction for pension plan administrative expense.) Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30.

This applied for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 122

REQUIRED SUPPLEMENTARY INFORMATION
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 $3,662,753 $3,713,864 $3,711,204 $4,302,617 $4,559,169 $4,645,118 12,088,271 12,825,762 13,444,999 14,048,114 14,813,753 15,556,336 2,008,072 2,643,438 886,800 346,337 2,496,481 2,155,981 7,180,122
231,820
(7,791,837) (8,419,092) (9,109,794) (9,739,112) (10,483,075) (11,136,538) 9,967,259 10,763,972 8,933,209 16,138,078 11,618,148 11,220,897 169,123,205 179,090,464 189,854,436 198,787,645 214,925,723 226,543,871 $179,090,464 $189,854,436 $198,787,645 $214,925,723 $226,543,871 $237,764,768 $5,845,005 $6,475,687 $6,960,408 $7,828,674 $8,681,655 $9,079,427 1,613,156 1,571,752 1,533,922 1,651,472 1,861,766 2,152,520 7,772,814 6,213,521 29,607,098 (12,103,385) 9,126,107 15,025,666 (218) (572)
(83,187) (174,706) (129,456) (98,708) (107,357) (126,183) 269
(7,791,837) (8,419,092) (9,109,794) (9,739,112) (10,483,075) (11,136,538) 7,356,002 5,667,162 28,861,606 (12,461,059) 9,079,096 14,994,892 116,570,324 123,926,326 129,593,488 158,455,094 145,994,035 155,073,131 $123,926,326 $129,593,488 $158,455,094 $145,994,035 $155,073,131 $170,068,023 $55,164,138 $60,260,948 $40,332,551 $68,931,688 $71,470,740 $67,696,745

69.20% 68.26% 79.71% 67.93% 68.45% 71.53%
$20,193,041 $21,471,907 $20,618,181 $22,822,694 $24,809,517 $26,212,038 273.18% 280.65% 195.62% 302.03% 288.08% 258.27%
123

REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years

SCHEDULE OF CONTRIBUTIONS
For the Fiscal Year Ended June 30, 2016 2017 2018 2019 2020 Actuarially determined contribution $4,687,535 $4,021,488 $5,172,358 $5,842,872 $6,477,118 Contributions in relation to the actuarially determined contributions (4,687,535) (4,021,488) (5,172,358) (5,842,872) (6,477,118) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $15,917,657 $16,420,663 $17,179,599 $20,193,041 $21,471,907 Contributions as a percentage of covered payroll 29.45% 24.49% 30.11% 28.94% 30.17% Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 For the Fiscal Year Ended June 30, 2021 2022 2023 2024 2025 Actuarially determined contribution $7,061,971 $7,838,893 $8,561,953 $9,070,568 $9,111,728 Contributions in relation to the actuarially determined contributions (7,061,971) (7,838,893) (8,561,953) (9,070,568) (9,111,728) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $20,618,181 $22,822,694 $24,809,517 $26,212,038 $27,175,202 Contributions as a percentage of covered payroll 34.25% 34.35% 34.51% 34.60% 33.53% Valuation date: 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Notes to Schedule
Valuation date: 6/30/2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method Level percentage of payroll, closed Average remaining amortization period 15 years as of Valuation Date Asset valuation method Market Value of Assets
Inflation 2.75% for 2015 to 2019, 2.625% for 2020, 2.50% for 2021 and 2022, and 2.30% for 2023, 2024 and 2025 Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality Rate Table
The probabilities of Retirement are based on the CalPERS Experience Study.

The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and 2022, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For 2023, 2024 and 2025, pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021 and 2022 and 6.80% for 2023, 2024, and 2025, net of administrative expenses, including inflation
124

REQUIRED SUPPLEMENTARY INFORMATION
Safety Plan
Cost Sharing Multiple-Employer Defined Pension Plan
Last 10 Years

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Measurement Date: 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Plan's proportion of the Net Pension Liability (Asset) 1.03004% 0.95974% 0.93552% 0.95843% 0.95585% Plan's proportion share of the Net Pension Liability (Asset) $42,442,275 $49,781,654 $55,899,346 $56,236,322 $59,669,242 Plan's Covered Payroll 12,280,143 12,543,342 12,807,240 13,238,467 14,330,518 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 345.62% 396.88% 436.47% 424.79% 416.38% Plan's Fiduciary Net Position as a Percentage of the
Plan's Total Pension Liability 78.40% 74.06% 73.31% 75.26% 75.26% Measurement Date: 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Plan's proportion of the Net Pension Liability (Asset) 0.95974% 1.27699% 1.05081% 1.03178% 1.04237% Plan's proportion share of the Net Pension Liability (Asset) $63,941,257 $44,815,713 $72,207,303 $77,124,746 $75,997,348 Plan's Covered Payroll 17,965,730 15,113,158 15,917,533 16,945,456 17,700,510 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 355.91% 296.53% 453.63% 455.14% 429.35% Plan's Fiduciary Net Position as a Percentage of the
Plan's Total Pension Liability 75.10% 88.29% 76.68% 76.21% 78.08%

125

REQUIRED SUPPLEMENTARY INFORMATION
Safety Plan
Cost Sharing Multiple-Employer Defined Benefit Pension Plan Last 10 Years

SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended: 2016 2017 2018 2019 2020
Actuarially determined contribution $4,055,568 $4,455,903 $4,959,631 $5,719,302 $6,571,899 Contributions in relation to the actuarially
determined contributions (4,055,568) (4,455,903) (4,959,631) (5,719,302) (6,571,899) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $12,543,342 $12,807,240 $13,238,467 $14,330,518 $17,965,730 Contributions as a percentage of covered payroll 32.33% 34.79% 37.46% 39.91% 36.58% Fiscal Year Ended: 2021 2022 2023 2024 2025
Actuarially determined contribution $7,215,323 $7,786,074 $8,516,327 $8,917,736 $9,663,435 Contributions in relation to the actuarially
determined contributions (7,215,323) ($7,786,074) (8,516,327) (8,917,736) (9,663,435) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $15,113,158 $15,917,533 $16,945,456 $17,700,510 20,256,651 $ Contributions as a percentage of covered payroll 51.52% 48.92% 50.26% 50.38% 47.70% 126

REQUIRED SUPPLEMENTARY INFORMATION
PARS Enhancement Excess Benefit
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total Pension Liability
Service Cost $25,000 $8,000 $9,000 $8,901
Interest 124,000 126,000 134,000 134,821 $107,078
Differences between expected and actual experience 53,000 47,056 Changes in assumptions 659,042 86,000 (75,860)
Changes in benefits
Benefit payments, including refunds of employee contributions (99,000) (112,000) (137,000) (139,237) (146,447) Net change in total pension liability 161,000 50,000 6,000 710,583 (115,229) Total pension liability - beginning 2,345,000 2,295,000 2,506,000 2,512,000 3,222,583 Total pension liability - ending (a) $2,345,000 $2,506,000 $2,512,000 $3,222,583 $3,107,354 Plan fiduciary net position
Contributions - employer $245,000 $270,000 $239,000 $400,000 Contributions - employee
Net investment income 21,000 51,000 80,000 53,127 $124,714 Administrative expenses (7,000) (8,000) (8,000) (9,143) (9,920) Benefit payments, including refunds of employee contributions (99,000) (112,000) (137,000) (139,237) (146,447) Net change in plan fiduciary net position 201,000 160,000 174,000 304,747 (31,653) Plan fiduciary net position - beginning 1,659,000 1,499,000 1,860,000 2,034,000 2,338,747 Plan fiduciary net position - ending (b) $1,659,000 $1,860,000 $2,034,000 $2,338,747 $2,307,094 Net pension liability - ending (a)-(b) $686,000 $646,000 $478,000 $883,836 $800,260 Plan fiduciary net position as a percentage of the total pension liability 70.75% 74.22% 80.97% 72.57% 74.25% Covered payroll $653,039 $586,464 $182,068 $186,997 (A) Net pension liability as percentage of covered payroll 105.05% 110.15% 262.54% 472.65% N/A Measurement Date 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Total Pension Liability
Service Cost
Interest $108,975 $102,103 $93,001 $92,912 $90,379
Differences between expected and actual experience (83,407) 53,376 57,591 Changes in assumptions (54,339) 133,365 19,556
Changes in benefits
Benefit payments, including refunds of employee contributions (160,537) (163,748) (167,023) (170,363) (173,771) Net change in total pension liability 71,720 (189,308) (1,090) (77,451) (25,801) Total pension liability - beginning 2,918,046 3,107,354 2,989,766 2,988,676 2,911,225 Total pension liability - ending (a) $2,918,046 $2,989,766 $2,988,676 $2,911,225 $2,885,424 Plan fiduciary net position
Contributions - employer $330,000 $338,000
Contributions - employee
Net investment income $105,737 $212,741 ($226,244) 66,640 132,673 Administrative expenses (9,649) (9,360) (8,790) (8,532) (8,655) Benefit payments, including refunds of employee contributions (160,537) (163,748) (167,023) (170,363) (173,771) Net change in plan fiduciary net position 39,633 (64,449) (402,057) 217,745 288,247 Plan fiduciary net position - beginning 2,242,645 2,307,094 2,282,278 1,880,221 2,097,966 Plan fiduciary net position - ending (b) $2,242,645 $2,282,278 $1,880,221 $2,097,966 $2,386,213 Net pension liability - ending (a)-(b) $675,401 $707,488 $1,108,455 $813,259 $499,211 Plan fiduciary net position as a percentage of the total pension liability 76.85% 76.34% 62.91% 72.06% 82.70% Covered payroll (A) (A) (A) (A) (A)
Net pension liability as percentage of covered payroll N/A N/A N/A N/A N/A Notes to Schedule:

Changes in assumptions. There were no changes in assumptions. (A) All Plan participants were retired as of July 1, 2018 Benefit changes. There were no changes in benefits.

127

REQUIRED SUPPLEMENTARY INFORMATION
PARS Enhancement Excess Benefit
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years

SCHEDULE OF CONTRIBUTIONS
For the Fiscal Year Ended June 30, 2016 2017 2018 2019 2020 Actuarially determined contribution $280,000 $297,000 $391,000 $0 $97,000 Contributions in relation to the actuarially determined contributions (290,000) (272,689) (400,000) 0 0
Contribution deficiency (excess) $7,311 $7,000 ($9,000) $0 $97,000 Covered payroll $586,464 $182,068 $186,997 $0 (A) $0 (A) Contributions as a percentage of covered payroll 46.50% 159.28% 213.91% 0% 0% Notes to Schedule
Valuation date: 6/30/2014 6/30/2015 6/30/2016 6/30/2016 6/30/2017 For the Fiscal Year Ended June 30, 2021 2022 2023 2024 2025 Actuarially determined contribution $100,000 $100,000 $208,000 $209,000 $142,000 Contributions in relation to the actuarially determined contributions 0 0 (330,000) (338,000) (338,000)
Contribution deficiency (excess) $100,000 $100,000 ($122,000) ($129,000) ($196,000) Covered payroll $0 (A) $0 (A) $0 (A) $0 (A) $0 (A)
Contributions as a percentage of covered payroll 0% 0% 0% 0% 0% Notes to Schedule
Valuation date: 6/30/2018 6/30/2020 6/30/2020 6/30/2022 6/30/2024 Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Average remaining amortization period 4-year fixed period for 2024/25 Asset valuation method Market value of assets
Discount rate 3.20%
Inflation
Projected Salary Increase
Mortality Rate Table CalPERS 2000-2019 Experience Study Mortality Improvement Scale Mortality projected fully generational with Scale MP-2021 (A) All Plan participants were retired as of July 1, 2018

2.50%

3.00%
128

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Single-Employer Other Post-Employment Benefit Plan
Last 10 fiscal years*
Measurement Date 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 Total OPEB Liability (1)
Service Cost $1,509,000 $1,263,802 $1,183,810 $1,323,555 $1,767,370 Interest 1,059,000 1,235,540 1,299,001 1,256,947 968,637 Changes of benefit terms
Differences between expected and actual experience (256,511) 866,800 Changes of assumptions (3,276,000) (1,351,768) 1,523,401 5,876,460 288,190 Benefit payments (1,631,000) (1,733,000) (1,781,930) (1,816,214) (1,885,034) Net change in total OPEB liability (2,339,000) (841,937) 2,224,282 7,507,548 1,139,163 Total OPEB liability - beginning 36,454,000 34,115,000 33,273,063 35,497,345 43,004,893 Total OPEB liability - ending (a) $34,115,000 $33,273,063 $35,497,345 $43,004,893 $44,144,056 Covered-employee payroll $38,034,624 $31,729,215 $39,889,613 $36,097,420 $39,082,228 Total OPEB liability as a percentage of covered-employee payroll 89.69% 104.87% 88.99% 119.14% 112.95% Measurement Date 6/30/22 6/30/23 6/30/24
Total OPEB Liability (1)
Service Cost $1,820,051 $1,126,902 $1,129,955
Interest 971,080 1,345,035 1,387,366
Changes of benefit terms
Differences between expected and actual experience 811,844 169,416 Changes of assumptions (7,876,327) (474,103) (1,158,475) Benefit payments (2,013,440) (1,977,631) (1,994,798)
Net change in total OPEB liability (6,286,792) 20,203 (466,536) Total OPEB liability - beginning 44,144,056 37,857,264 37,877,467 Total OPEB liability - ending (a) $37,857,264 $37,877,467 $37,410,931 Covered-employee payroll $44,166,566 $53,616,150 $57,114,527 Total OPEB liability as a percentage of covered-employee payroll 85.71% 70.65% 65.50% Notes to Schedule:
(1) No assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75.

Benefit changes: No changes.

Changes in assumptions: The discount rate was updated based on the municipal bond rate at the measurement date
* Fiscal year 2018 was the first year of implementation. 129
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SUPPLEMENTARY INFORMATION
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MAJOR GOVERNMENTAL FUNDS, OTHER THAN

GENERAL FUND AND SPECIAL REVENUE FUNDS
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND - This fund was initially established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the Drainage and Transportation elements of the Plan. The Sewer and Water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds.

STATE GASOLINE TAX FUND - Established to account for the construction and maintenance of the street system in Manteca. Financing is provided by the City’s share of state gasoline taxes and State of California under AB2928. The allocations from AB2928 must be spent on local streets and roads maintenance, rehabilitation and reconstruction projects according to the tax levied for that purpose by San Joaquin County.

GAS TAX SB1 FUND - Established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California.

GOVERNMENT BUILDING FACILITIES FUND - Established to account for the financing and construction activities of the Civic Center expansion and other City facilities, as well as fire sprinkler fees. Financing is provided by government building facilities fees and fire fees imposed on developments. 133

CITY OF MANTECA

PUBLIC FACILITIES IMPLEMENTATION PLAN FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance
Positive
Budget Actual (Negative)

REVENUES
Use of money and property $250,000 $3,091,487 $2,841,487 Charges for current services 9,340,000 13,556,123 4,216,123 Total Revenues 9,590,000 16,647,610 7,057,610

EXPENDITURES
Current:

Public works 904,355 404,402 499,953
Capital outlay 13,110,278 5,478,228 7,632,050
Total Expenditures 14,014,633 5,882,630 8,132,003
NET CHANGE IN FUND BALANCE ($4,424,633) 10,764,980 $15,189,613 BEGINNING FUND BALANCE 51,523,602
ENDING FUND BALANCE $62,288,582
134

CITY OF MANTECA

STATE GASOLINE TAX FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Positive
Budget Actual (Negative)
REVENUES:

Use of money and property $8,000 $171,301 $163,301
Revenue from other agencies 2,557,634 2,537,490 (20,144) Other revenue 29,766 29,766
Total Revenues 2,565,634 2,738,557 172,923
EXPENDITURES:

Current:

Public works 8,000 30 7,970
Streets and highways 3,648,804 3,217,436 431,368
Capital outlay 2,326 2,326
Total Expenditures 3,659,130 3,219,792 439,338
NET CHANGE IN FUND BALANCE (1,093,496) (481,235) 612,261 NET CHANGE IN FUND BALANCE ($1,093,496) (481,235) $612,261 BEGINNING FUND BALANCE 1,234,323
ENDING FUND BALANCE $753,088
135

CITY OF MANTECA
GAS TAX SB1 FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance
Positive
Budget Actual (Negative)

REVENUES
Use of money and property $301,826 $301,826
Revenue from other agencies $2,272,678 2,481,043 208,365 Total Revenues 2,272,678 2,782,869 510,191

EXPENDITURES
Streets and highways 287,967 63,830 224,137
Capital outlay 4,879,653 2,828,579 2,051,074
Total Expenditures 5,167,620 2,892,409 2,275,211
NET CHANGE IN FUND BALANCE ($2,894,942) (109,540) $2,785,402 BEGINNING FUND BALANCE 7,091,340
ENDING FUND BALANCE $6,981,800
136

CITY OF MANTECA

GOVERNMENT BUILDING FACILITIES FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance
Positive
Budget Actual (Negative)

REVENUES
Licenses and permits $5,000,000 $7,333,739 $2,333,739
Use of money and property 2,783,397 2,783,397
Total Revenues 5,000,000 10,117,136 5,117,136

EXPENDITURES
Public works 120,360 120,360
Capital outlay 660,444 497,862 162,582
Total Expenditures 780,804 497,862 282,942
NET CHANGE IN FUND BALANCE $4,219,196 9,619,274 $5,400,078 BEGINNING FUND BALANCE 40,004,310
ENDING FUND BALANCE $49,623,584
137
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NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:

COMMUNITY DEVELOPMENT BLOCK GRANT
Established to account for projects financed by the Federal Housing and Urban Development Department through San Joaquin County.

POLICE GRANTS
Established to account for the City’s various Police grants. The U.S. Department of Justice Universal Hiring Grants are used to hire additional Patrol officers as well as to provide officers to each of the City’s high school attendance areas for the school’s Resource Officer Program. The Federal Local Law Enforcement Block Grants are used to supplement communications and equipment needs. State grants are used for specific equipment and personnel costs incurred in the implementation of the grant specific programs.

SUPPLEMENTAL LAW ENFORCEMENT SERVICES
Established to account for the Citizens Option for Public Safety (COPS) appropriation pursuant to Assembly Bill 3229. The Manteca police department is using these funds for front-line law enforcement programs.

STREET IMPROVEMENTS
Established to account for financing of the City’s traffic signal installations and highway interchange.

Financing is provided by specific traffic signal installation and highway interchange fees imposed on developments.

MAJOR EQUIPMENT PURCHASE FEE
Established to account for financing of major equipment utilization by City departments. Financing is provided by specific major equipment purchase fees imposed on developments.

LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
Established to account for the financing of lighting and landscape maintenance districts formed pursuant to the Landscaping and Lighting Act of 1972 and benefit assessment districts formed pursuant to the Benefit Assessment Act of 1982. The City currently has twenty five approved districts.

DEVELOPMENT MITIGATION
Established to account for the collection and use of fees collected as part of negotiated development agreements. These fees include a Development Agreement Fee, and Economic Development Fee, a Public Facilities Fee, a Development Services Fee, a Public Safety Endowment Fee, and a Recreational Amenities Fee.
139
NON-MAJOR GOVERNMENTAL FUNDS (Continued)

COMMUNITY FACILITIES DISTRICTS
The Community Facilities Districts Fund (CFD) was established to account for the monies collected and special taxes levied in association with the formation of and services associated with Community Facilities Districts.

FIRE GRANTS
The Fire Grants Fund was established to account for the fire grants received by the City. Federal grants are used for specific equipment and personnel costs incurred in the implementation of the grant programs.

PUBLIC SAFETY SALES TAX
Established to account for all proceeds collected from the levying of the Gang and Drug Prevention, 9-1-1 Emergency and Public Safety Improvement Transactions and Use Tax. Taxes received are to be used solely for the public safety services set forth in the Program Guidelines and Public Safety Expenditure Plan. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, so long as the funds are utilized for public safety, police and fire protection services.

INNOVATION AND TECHNOLOGY
Established during the year ended June 30, 2021 to account for the creation, expansion, and maintenance of a fiber conduit network and future “Smart City” technology initiatives and infrastructure projects throughout the City.

ENGINEERING SERVICES
Established to account for developer fees used to oversee planning, design, and construction for new capital projects.

COVID RELIEF
Established to account for federal grant funding and expenditures dedicated to support the City’s response to COVID-19.

CAPITAL IMPROVEMENT FUNDS:

REGIONAL TRANSPORTATION IMPACT FEES
Established to account for fees collected in association with the Regional Transportation Impact Fee Program (RTIF). The RTIF Program is a County-wide program administered by the San Joaquin Council of Governments as part of a regional effort to mitigate traffic congestion. Improvements to the Regional Transportation Network have been identified in the RTIF Capital Project list. This program collects fees from future residential and non-residential development. Fees collected are used exclusively on identified projects locally and within the region. 140
NON-MAJOR GOVERNMENTAL FUNDS (Continued)

MEASURE K
Established to account for the construction and maintenance of the street system in Manteca financed with a 1/2 cent sales tax levied for that purpose by San Joaquin County. The tax was established in 1999, renewed in 2006 and sunsets in 2036.

PARKS
Established to account for the construction and maintenance of all City owned parks. Financing is provided by a special parks improvement fee imposed on developments.

FLOOD PROTECTION
Established to account for permit payments that are collected for the two-hundred-year flood.

REDEVELOPMENT BONDS PROJECTS
This fund was established to account for the financing and construction activities funded with the taxexempt proceeds from the issuance of the former Manteca Redevelopment Agency’s long-term debt.

FIRE FACILITIES FEE
Established to account for financing and construction activities related to Fire Facilities. Financing is provided by fees imposed on developments.

NEIGHBORHOOD PARKS IN LIEU FEE
Established to account for fees paid by developers in-lieu of building and dedicating a park when a development is determined to be too small to develop their own neighborhood park.

SPECIAL APPORTIONMENT STREETS FUND
Established to account for the construction and maintenance of the street system in Manteca. Financing is provided through local transportation funds and State and Federal grants. 141

CITY OF MANTECA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025
Supplemental
Community Law Major
Development Enforcement Street Equipment
Block Grant Police Grants Services Improvements Purchase Fee ASSETS
Cash and investments $470,636 $49,572 $1,588,637
Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) $86,040 $356,524 88,860 Taxes receivable
Interest receivable
Leases receivable
Total Assets $86,040 $356,524 $470,636 $49,572 $1,677,497

LIABILITIES
Accounts payable $8,620 $3,682
Contracts payable
Refundable deposits
Due to other funds 51,927 $62,215
Unearned revenue 38,422
Total Liabilities 60,547 100,637 3,682

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 12,664 123,454 88,860 Related to leases
Total Deferred Inflows of Resources 12,664 123,454 88,860

FUND BALANCE
Fund balance:

Restricted 12,829 132,433 $470,636 $49,572 1,584,955
Committed
Assigned
Total Fund Balances 12,829 132,433 470,636 49,572 1,584,955 Total Liabilities and Fund Balances $86,040 $356,524 $470,636 $49,572 $1,677,497

SPECIAL REVENUE FUNDS
142

SPECIAL REVENUE FUNDS
Landscape
and Lighting Community Public Innovation
Maintenance Development Facilities Fire Safety and Engineering COVID District Mitigation Districts Grants Sales Tax Technology Services Relief $1,949,286 $14,491,182 $7,104,914 $362,841 $4,265,417 $508,581 $9,016,084 $3,127,247 158,846 122,321
24,462 1,741,205
908
499,746
$1,973,748 $14,491,182 $7,263,760 $362,841 $6,006,622 $1,009,235 $9,138,405 $3,127,247 $36,252 $101,966 $21,336 $58,125 $1,218,063
163,880 902,364
1,909,184
36,252 265,846 21,336 960,489 3,127,247
$470,657
470,657
1,937,496 $14,491,182 6,997,914 $362,841 5,985,286 8,177,916 538,578
1,937,496 14,491,182 6,997,914 362,841 5,985,286 538,578 8,177,916 $1,973,748 $14,491,182 $7,263,760 $362,841 $6,006,622 $1,009,235 $9,138,405 $3,127,247 (Continued)
143

CITY OF MANTECA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025

CAPITAL IMPROVEMENT FUNDS
Regional Redevelopment
Transportation Flood Bonds
Impact Fees Measure K Parks Protection Projects
ASSETS
Cash and investments $28,627,082 $11,547,027 $26,339,255 $430,965 Restricted cash and investments 1,990,735 $9,414,620
Accounts receivables (net of allowance for
estimated uncollectible accounts) 1,621,518
Taxes receivable 540,347
Interest receivable
Leases receivable
Total Assets $28,627,082 $13,708,892 $28,329,990 $430,965 $9,414,620

LIABILITIES
Accounts payable $423,245 $176,230 $502,020 $394,737
Contracts payable 2,214
Refundable deposits 34,036 1,990,735
Due to other funds $3,956,388
Unearned revenue
Total Liabilities 457,281 176,230 2,494,969 394,737 3,956,388

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Related to leases
Total Deferred Inflows of Resources

FUND BALANCE
Fund balance:

Restricted 28,169,801 13,532,662 25,835,021 36,228 5,458,232 Committed
Assigned
Total Fund Balances 28,169,801 13,532,662 25,835,021 36,228 5,458,232 Total Liabilities and Fund Balances $28,627,082 $13,708,892 $28,329,990 $430,965 $9,414,620 144

CAPITAL IMPROVEMENT FUNDS
Total
Fire Neighborhood Special Nonmajor
Facilities Parks Apportionment Governmental
Fee In Lieu Fee Streets Funds
$7,093,606 $4,328,383 $1,251,911 $122,552,626
11,405,355
94,414 2,770,622 5,299,145
2,306,014
908
499,746
$7,188,020 $4,328,383 $4,022,533 $142,063,794
$201,484 $1,034,895 $4,180,655
26,192 28,406
562 3,091,577
4,070,530
1,947,606
201,484 1,061,649 13,318,774
94,414 319,392
470,657
94,414 790,049
6,892,122 $4,328,383 124,455,509
538,578
2,960,884 2,960,884
6,892,122 4,328,383 2,960,884 127,954,971
$7,188,020 $4,328,383 $4,022,533 $142,063,794
145

CITY OF MANTECA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025

SPECIAL REVENUE FUNDS
Supplemental
Community Law Major
Development Enforcement Street Equipment
Block Grant Police Grants Services Improvements Purchase Fee

REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $83,478
Revenue from other agencies $447,441 $630,747 $277,567
Charges for current services 416,331
Other revenue
Total Revenues 447,441 630,747 277,567 499,809

EXPENDITURES
Current:

General government 340,509
Public safety 289,866 114,586
Public works
Parks and recreation
Streets and highways
Nondepartmental 28,592
Capital outlay 376,232 195,426 602,800
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 340,509 666,098 338,604 602,800

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 106,932 (35,351) (61,037) (102,991)

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES 106,932 (35,351) (61,037) (102,991)

BEGINNING FUND BALANCES (DEFICITS),
AS PREVIOUSLY REPORTED (94,103) 167,784 531,673 $49,572 1,687,946

ADJUSTMENTS
Changes from nonmajor fund to major fund

BEGINNING FUND BALANCES (DEFICITS),
AS ADJUSTED (94,103) 167,784 531,673 49,572 1,687,946
ENDING FUND BALANCES $12,829 $132,433 $470,636 $49,572 $1,584,955 146

SPECIAL REVENUE FUNDS
Landscape
and Lighting Community Public Innovation
Maintenance Development Facilities Fire Safety and Engineering COVID District Mitigation Districts Grants Sales Tax Technology Services Relief $10,235,229
$168,282 $794,044 $275,096 273,630 $21,259 $368,409 $1
$226,056 100,754 74,065 4,332,693
1,554,265 2,500,469 2,740,628 6,037,942
1,360 280,247 1,850 113,540 136,622
1,723,907 3,574,760 3,017,574 226,056 10,508,859 235,553 6,617,038 4,332,694 10,284,281 47,230
1,131,185 2,472,351
1,796,229 35,073
357,592
45,553 5,607 107,545 88,311 88,852 4,722,554
7,122
1,076
1,841,782 5,607 1,273,803 10,372,592 2,569,401 5,127,376 (117,875) 3,569,153 1,743,771 226,056 136,267 235,553 4,047,637 (794,682) 22,108
794,682
22,108 794,682
(117,875) 3,569,153 1,743,771 226,056 136,267 235,553 4,069,745 2,055,371 10,922,029 5,254,143 136,785 5,849,019 303,025 4,108,171 2,055,371 10,922,029 5,254,143 136,785 5,849,019 303,025 4,108,171 $1,937,496 $14,491,182 $6,997,914 $362,841 $5,985,286 $538,578 $8,177,916 (Continued)
147

CITY OF MANTECA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025

CAPITAL IMPROVEMENT FUNDS
Regional Redevelopment
Transportation Flood Bonds
Impact Fees Measure K Parks Protection Projects

REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $1,560,463 $626,333 $1,444,628 $29,530 $1,931,818 Revenue from other agencies 10,626,899
Charges for current services 4,303,494 5,364,068
Other revenue 2,003
Total Revenues 5,863,957 11,255,235 6,808,696 29,530 1,931,818

EXPENDITURES
Current:

General government
Public safety
Public works 534,235 24,375
Parks and recreation 182,675
Streets and highways 272,324 31,217
Nondepartmental
Capital outlay 783,663 3,432,183 784,822 53
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 1,055,987 3,997,635 967,497 24,375 53

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,807,970 7,257,600 5,841,199 5,155 1,931,765

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES 4,807,970 7,257,600 5,841,199 5,155 1,931,765

BEGINNING FUND BALANCES (DEFICITS),
AS PREVIOUSLY REPORTED 23,361,831 6,275,062 19,993,822 31,073 3,526,467

ADJUSTMENTS
Changes from nonmajor fund to major fund

BEGINNING FUND BALANCES (DEFICITS),
AS ADJUSTED 23,361,831 6,275,062 19,993,822 31,073 3,526,467 ENDING FUND BALANCES $28,169,801 $13,532,662 $25,835,021 $36,228 $5,458,232 148

CAPITAL IMPROVEMENT FUNDS
(Previously
Nonmajor) Total
t Fire Neighborhood Government Special Nonmajor
Facilities Parks Building Apportionment Governmental
Fee In Lieu Fee Facilities Streets Funds
$10,235,229
$2,492,372 2,492,372
319,814 $202,647 8,099,432
$5,491,689 22,207,911
22,917,197
535,622
2,812,186 202,647 5,491,689 66,487,763
340,509
21,870 10,757,833
4,162,146
2,013,977
1,932,717 2,593,850
28,592
1,452,718 3,550,492 16,236,811
7,122
1,076
1,474,588 5,483,209 36,141,916
1,337,598 202,647 8,480 30,345,847
22,108
794,682
816,790
1,337,598 202,647 8,480 31,162,637
5,554,524 4,125,736 $40,004,310 2,952,404 136,796,644
(40,004,310) (40,004,310)
5,554,524 4,125,736 2,952,404 96,792,334
$6,892,122 $4,328,383 $2,960,884 $127,954,971
149

CITY OF MANTECA

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

COMMUNITY DEVELOPMENT

BLOCK GRANT POLICE GRANTS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Sales taxes
Licenses and permits
Use of money and property
Revenue from other agencies $417,278 $447,441 $30,163 $1,330,922 $630,747 ($700,175) Charges for current services
Other revenue
Total Revenues 417,278 447,441 30,163 1,330,922 630,747 (700,175)

EXPENDITURES
Current:

General government 1,764,682 340,509 1,424,173
Public safety 476,349 289,866 186,483
Public works
Parks and recreation
Streets and highways
Nondepartmental
Capital outlay 37,712 37,712 355,666 376,232 (20,566)
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 1,802,394 340,509 1,461,885 832,015 666,098 165,917

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,385,116) 106,932 1,492,048 498,907 (35,351) (534,258)

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($1,385,116) 106,932 $1,492,048 $498,907 (35,351) ($534,258) BEGINNING FUND BALANCES (DEFICITS) (94,103) 167,784
ENDING FUND BALANCES $12,829 $132,433
150

SUPPLEMENTAL LAW MAJOR EQUIPMENT

ENFORCEMENT SERVICES STREET IMPROVEMENTS PURCHASE FEE
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $2,000 $83,478 $81,478
$277,567 $277,567
350,000 416,331 66,331
277,567 277,567 352,000 499,809 147,809
167,978 114,586 $53,392
51,225 28,592 22,633
203,634 195,426 8,208 706,245 602,800 103,445
422,837 338,604 84,233 706,245 602,800 103,445
(145,270) (61,037) 84,233 (354,245) (102,991) 251,254
($145,270) (61,037) $84,233 ($354,245) (102,991) $251,254 531,673 $49,572 1,687,946
$470,636 $49,572 $1,584,955
(Continued)
151

CITY OF MANTECA

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

LANDSCAPE AND

LIGHTING MAINTENANCE DISTRICT DEVELOPMENT MITIGATION
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Sales taxes
Licenses and permits
Use of money and property $5,000 $168,282 $163,282 $410,000 $794,044 $384,044 Revenue from other agencies
Charges for current services 1,473,459 1,554,265 80,806 2,543,300 2,500,469 (42,831) Other revenue 1,360 1,360 280,000 280,247 247
Total Revenues 1,478,459 1,723,907 245,448 3,233,300 3,574,760 341,460

EXPENDITURES
Current:

General government
Public safety
Public works
Parks and recreation 1,569,254 1,796,229 (226,975)
Streets and highways
Nondepartmental
Capital outlay 87,188 45,553 41,635 165,606 5,607 159,999 Debt service:

Principal
Interest and fiscal charges
Total Expenditures 1,656,442 1,841,782 (185,340) 165,606 5,607 159,999

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (177,983) (117,875) 60,108 3,067,694 3,569,153 501,459

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($177,983) (117,875) $60,108 $3,067,694 3,569,153 $501,459 BEGINNING FUND BALANCES (DEFICITS) 2,055,371 10,922,029 ENDING FUND BALANCES $1,937,496 $14,491,182
152

COMMUNITY

FACILITIES DISTRICTS FIRE GRANTS PUBLIC SAFETY SALES TAX Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $10,007,000 $10,235,229 $228,229
$275,096 $275,096 143,000 273,630 130,630
$226,056 $226,056
$2,723,233 2,740,628 17,395
1,850 1,850
2,723,233 3,017,574 294,341 226,056 226,056 10,150,000 10,508,859 358,859 10,434,560 10,284,281 150,279
2,324,324 1,131,185 1,193,139
46,552 35,073 11,479
505,398 107,545 397,853 162,262 88,311 73,951
2,876,274 1,273,803 1,602,471 10,596,822 10,372,592 224,230 (153,041) 1,743,771 1,896,812 226,056 226,056 (446,822) 136,267 583,089 ($153,041) 1,743,771 $1,896,812 226,056 $226,056 ($446,822) 136,267 $583,089 5,254,143 136,785 5,849,019
$6,997,914 $362,841 $5,985,286
(Continued)
153

CITY OF MANTECA

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

INNOVATION AND TECHNOLOGY ENGINEERING SERVICES
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Sales taxes
Licenses and permits
Use of money and property $113,400 $21,259 ($92,141) $368,409 $368,409 Revenue from other agencies 100,754 100,754 $25,000 74,065 49,065 Charges for current services 5,330,000 6,037,942 707,942 Other revenue 100,000 113,540 13,540 11,000 136,622 125,622 Total Revenues 213,400 235,553 22,153 5,366,000 6,617,038 1,251,038

EXPENDITURES
Current:

General government 446 446
Public safety
Public works 3,104,471 2,472,351 632,120
Parks and recreation
Streets and highways
Nondepartmental
Capital outlay 130,000 88,852 41,148
Debt service:

Principal 7,122 (7,122)
Interest and fiscal charges 1,076 (1,076)
Total Expenditures 446 446 3,234,471 2,569,401 665,070

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 212,954 235,553 22,599 2,131,529 4,047,637 1,916,108

OTHER FINANCING SOURCES (USES)
Inception of lease 22,108 22,108
Inception of SBITA
Transfers in
Transfers out
Total Other Financing Sources (Uses) 22,108 22,108
NET CHANGE IN FUND BALANCES $212,954 235,553 $22,599 $2,131,529 4,069,745 $1,938,216 BEGINNING FUND BALANCES (DEFICITS) 303,025 4,108,171
ENDING FUND BALANCES $538,578 $8,177,916
154

REGIONAL

COVID RELIEF TRANSPORTATION IMPACT FEES MEASURE K
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1 $1 $40,000 $1,560,463 $1,520,463 $50,000 $626,333 $576,333 $5,741,030 4,332,693 (1,408,337) 5,100,000 10,626,899 5,526,899 2,355,000 4,303,494 1,948,494
2,003 2,003
5,741,030 4,332,694 (1,408,336) 2,395,000 5,863,957 3,468,957 5,150,000 11,255,235 6,105,235 32,883 32,883
47,230 47,230
30,750 30,750 637,911 534,235 103,676
357,159 357,592 (433) 272,000 272,324 (324) 31,217 31,217 4,668,820 4,722,554 (53,734) 3,149,481 783,663 2,365,818 6,958,190 3,432,183 3,526,007 5,136,842 5,127,376 9,466 3,421,481 1,055,987 2,365,494 7,627,318 3,997,635 3,629,683 604,188 (794,682) (1,398,870) (1,026,481) 4,807,970 5,834,451 (2,477,318) 7,257,600 9,734,918 794,682 794,682
52,643 (52,643)
(660,387) 660,387
(607,744) 794,682 1,402,426
($3,556) $3,556 ($1,026,481) 4,807,970 $5,834,451 ($2,477,318) 7,257,600 $9,734,918 23,361,831 6,275,062
$28,169,801 $13,532,662
(Continued)
155

CITY OF MANTECA

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

PARKS FLOOD PROTECTION
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Sales taxes
Licenses and permits
Use of money and property $1,444,628 $1,444,628 $29,530 $29,530 Revenue from other agencies
Charges for current services $5,070,000 5,364,068 294,068 $500,000 (500,000) Other revenue
Total Revenues 5,070,000 6,808,696 1,738,696 500,000 29,530 (470,470)

EXPENDITURES
Current:

General government
Public safety
Public works 24,375 (24,375)
Parks and recreation 182,675 182,675
Streets and highways
Nondepartmental
Capital outlay 1,309,710 784,822 524,888
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 1,492,385 967,497 524,888 24,375 (24,375)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,577,615 5,841,199 2,263,584 500,000 5,155 (494,845)

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $3,577,615 5,841,199 $2,263,584 $500,000 5,155 ($494,845) BEGINNING FUND BALANCES (DEFICITS) 19,993,822 31,073
ENDING FUND BALANCES $25,835,021 $36,228
156

REDEVELOPMENT BOND PROJECTS FIRE FACILITIES FEE NEIGHBORHOOD PARKS IN LIEU FEE Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,561,000 $2,492,372 $931,372
$1,931,818 $1,931,818 319,814 319,814 $202,647 $202,647 $1,300,000 (1,300,000)
1,931,818 1,931,818 1,561,000 2,812,186 1,251,186 1,300,000 202,647 (1,097,353) 93,000 21,870 71,130
$557 53 504 2,638,312 1,452,718 1,185,594
557 53 504 2,731,312 1,474,588 1,256,724
(557) 1,931,765 1,932,322 (1,170,312) 1,337,598 2,507,910 1,300,000 202,647 (1,097,353) ($557) 1,931,765 $1,932,322 ($1,170,312) 1,337,598 $2,507,910 $1,300,000 202,647 ($1,097,353) 3,526,467 5,554,524 4,125,736
$5,458,232 $6,892,122 $4,328,383
(Continued)
157

CITY OF MANTECA

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

SPECIAL APPORTIONMENT STREETS
Variance
Positive
Budget Actual (Negative)

REVENUES
Sales taxes
Licenses and permits
Use of money and property
Revenue from other agencies $18,793,659 $5,491,689 ($13,301,970) Charges for current services
Other revenue
Total Revenues 18,793,659 5,491,689 (13,301,970)

EXPENDITURES
Current:

General government
Public safety
Public works
Parks and recreation
Streets and highways 3,505,871 1,932,717 1,573,154
Nondepartmental
Capital outlay 16,473,597 3,550,492 12,923,105
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 19,979,468 5,483,209 14,496,259

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,185,809) 8,480 1,194,289

OTHER FINANCING SOURCES (USES)
Inception of lease
Inception of SBITA
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($1,185,809) 8,480 $1,194,289 BEGINNING FUND BALANCES (DEFICITS) 2,952,404
ENDING FUND BALANCES $2,960,884
158

INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements, including the funds below.

VEHICLE
Established to account for the purchase and replacement of vehicles utilized by City departments.

EQUIPMENT
Established to account for the purchase and replacement of equipment (including Information Systems equipment) utilized by City departments.

INSURANCE
Established to account for the self-insured portion of the City’s workers’ compensation and liability insurance programs.
159

CITY OF MANTECA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025
Vehicle Equipment Insurance Total
ASSETS
Current Assets:

Cash and investments $2,169,856 $5,608,866 $7,778,722
Accounts receivable $62,738 43,392 106,130
Prepaids and deposits
Total Current Assets 62,738 2,169,856 5,652,258 7,884,852 Non-Current Assets:

Capital assets not being depreciated 956,064 551,565 1,507,629 Capital assets (net of
accumulated depreciation) 1,095,490 2,103,787 3,199,277 Total Non-Current Assets 2,051,554 2,655,352 4,706,906
Total Assets 2,114,292 4,825,208 5,652,258 12,591,758

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 132,137 750,352 149,441 1,031,930 Deferred outflows related to OPEB 71,837 38,313 110,150 Total Deferred Outflows of Resources 132,137 822,189 187,754 1,142,080

LIABILITIES
Current Liabilities:

Accounts payable 107,031 136,055 243,585 486,671
Refundable deposits 808 808
Due to other funds 662,203 662,203
Interest payable 33,038 33,038
Compensated absences 23,031 25,311 48,342
Estimated claims liability 1,598,225 1,598,225
Lease liability 11,810 11,810
Subscription liability 752,508 752,508
Total Current Liabilities 792,265 958,722 1,842,618 3,593,605 Long-term Liabilities:

Compensated absences 93,010 149,133 38,085 280,228
Estimated claims liability 42,265 42,265
Net pension liability 568,653 3,229,135 643,119 4,440,907 Total OPEB Liability 479,627 255,801 735,428
Lease liability 12,338 12,338
Subscription liability 789,475 789,475
Total Long-Term Liabilities 661,663 4,659,708 979,270 6,300,641 Total Liabilities 1,453,928 5,618,430 2,821,888 9,894,246

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 82,623 44,066 126,689
Total Deferred Inflows of Resources 82,623 44,066 126,689

NET POSITION
Investment in capital assets 2,051,554 1,089,221 3,140,775 Unrestricted (1,259,053) (1,142,877) 2,974,058 572,128
Total Net Position $792,501 ($53,656) $2,974,058 $3,712,903 160

CITY OF MANTECA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Vehicle Equipment Insurance Total

OPERATING REVENUES
Charges for services $1,015,135 $5,343,115 $6,358,250
Insurance premium contribution from other funds $7,990,830 7,990,830 Miscellaneous 409,718 409,718
Total Operating Revenues 1,015,135 5,343,115 8,400,548 14,758,798

OPERATING EXPENSES
Personnel services 1,564,314 2,078,067 499,234 4,141,615 Contractual services 191,329 26,712 218,041
Supplies (147,264) 500,941 102,503 456,180
Utilities 2,150 717,672 8,566 728,388
Repairs and maintenance 1,236,180 927,357 2,163,537
Interdepartmental 50,980 299,315 6,000 356,295
Insurance 190,174 96,138 6,253,109 6,539,421
Claims 1,223,968 1,223,968
Depreciation 49,030 478,861 527,891
Miscellaneous 47,990 43,700 91,690
Total Operating Expenses 2,945,564 5,337,670 8,163,792 16,447,026 Total Operating Income (Loss) (1,930,429) 5,445 236,756 (1,688,228)

NONOPERATING REVENUES (EXPENSES)
Interest income 775 114,293 222,331 337,399
Interest expense (33,763) (33,763)
Gain on sale of capital assets 154,346 154,346
Total Nonoperating Revenues (Expenses) 155,121 80,530 222,331 457,982 Change in Net Position Before Transfers (1,775,308) 85,975 459,087 (1,230,246) Transfers Out (24,640) (24,640)
Change in Net Position (1,775,308) 85,975 434,447 (1,254,886) BEGINNING NET POSITION, as previously reported 2,816,428 (299,603) 2,539,611 5,056,436

ADJUSTMENTS
Error Correction - Capital Assets (248,619) 159,972 (88,647) BEGINNING NET POSITION (DEFICIT), AS RESTATED 2,567,809 (139,631) 2,539,611 4,967,789 ENDING NET POSITION (DEFICIT) $792,501 ($53,656) $2,974,058 $3,712,903 161

CITY OF MANTECA

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Vehicle Equipment Insurance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $970,539 $5,343,115 $8,357,156 $14,670,810 Payments to suppliers (1,358,589) (2,837,896) (6,489,646) (10,686,131) Payments to or on behalf of employees (1,011,757) (1,970,930) (495,096) (3,477,783) Claims paid (933,065) (933,065)
Cash Flows from (used by) Operating Activities (1,399,807) 534,289 439,349 (426,169)

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Interfund receipts (payments) 662,203 662,203
Transfers out (24,640) (24,640)
Cash Flows from (used by) Noncapital and Related
Financing Activities 662,203 (24,640) 637,563

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (1,184,354) (210,391) (1,394,745) Proceeds from sale of capital assets 154,346 154,346
Lease liability - principal payment (9,039) (9,039)
Subscription liability - principal payment (774,974) (774,974) Lease and subscription liability - interest (19,946) (19,946) Cash Flows from (used by) Capital and Related
Financing Activities (1,030,008) (1,014,350) (2,044,358)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 775 114,293 222,331 337,399
Cash Flows from Investing Activities 775 114,293 222,331 337,399 Net Cash Flows (1,766,837) (365,768) 637,040 (1,495,565) Cash and investments at beginning of period 1,766,837 2,535,624 4,971,826 9,274,287 Cash and investments at end of period $2,169,856 $5,608,866 $7,778,722 Reconciliation of operating income (loss) to net cash flows from operating activities:

Operating income (loss) ($1,930,429) $5,445 $236,756 ($1,688,228) Adjustments to reconcile operating income to net cash flows from operating activities:

Depreciation 49,030 478,861 527,891
Change in assets and liabilities:

Receivables, net (44,596) (43,392) (87,988)
Prepaids and deposits 26,544 26,544
Accounts and other payables (26,369) (83,698) (49,056) (159,123) Compensated absences 116,041 174,444 38,085 328,570
Claims liability 290,903 290,903
Net pension liability, deferred outflows and inflows 436,516 (59,968) (30,033) 346,515 Total OPEB liability, deferred outflows and inflows (7,339) (3,914) (11,253) Cash Flows from (used by) Operating Activities ($1,399,807) $534,289 $439,349 ($426,169) NONCASH TRANSACTIONS:

Lease asset addition $30,026 $30,026
Issuance of lease liability (30,026) (30,026)
Subscription asset addition 1,577,706 1,577,706
Issuance of subscription liability (1,577,706) (1,577,706) 162

CUSTODIAL FUNDS
Custodial funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.

CFD 2023-1 VILLA TICINO WEST CUSTODIAL FUND
The fund is used to account for Community Facilities District 2023-1, Villa Ticino West, special assessment collections and debt service payments.

PBID CUSTODIAL FUND
The Public Business Improvement District (PBID) fund is used to account for the improvement of general areas within Manteca's downtown business community.
163

CITY OF MANTECA

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
CFD 2023-1
Villa Ticino West PBID Total
Custodial Custodial Custodial
Fund Fund Funds
ASSETS
Cash and investments $868,126 $67,596 $935,722
Restricted cash and investments 2,127,494 2,127,494
Accounts receivable 47,500 47,500
Total Assets 3,043,120 67,596 3,110,716

LIABILITIES
Accounts payable 26,292 67,596 93,888
Refundable deposits 50,284 50,284
Total Liabilities 76,576 67,596 144,172

NET POSITION
Restricted for Other Purposes $2,966,544 $2,966,544
164

CITY OF MANTECA

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
CFD 2023-1
Villa Ticino West PBID Total
Custodial Custodial Custodial
Fund Fund Funds

ADDITIONS
Net investment income $72,699 $72,699
Charges for services 968,260 $144,092 1,112,352
Contributions from property owners 16,220,775 16,220,775 Other revenue 77,500 77,500
Total additions 17,339,234 144,092 17,483,326

DEDUCTIONS
Professional services 13,938,496 13,938,496
General government 144,092 144,092
Interest and fiscal charges 1,358,537 1,358,537
Total deductions 15,297,033 144,092 15,441,125
CHANGE IN NET POSITION 2,042,201 2,042,201

NET POSITION

RESTRICTED FOR OTHER PURPOSES
Beginning of year 924,343 924,343
End of year $2,966,544 $2,966,544
165
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STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balance of Governmental Funds

4. Changes in Fund Balances of Governmental Funds

5. General Revenues by Source

6. General Expenditures by Function
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Value of Taxable Property

2. Direct and Overlapping Property Tax Rates

3. Principal Property Taxpayers

4. Property Tax Levies and Collections

5. Manteca Redevelopment Project Area No. 1 – Top Twenty Assessed Values

6. Manteca Redevelopment Project Area No. 2 – Top Twenty Assessed Values

7. Manteca Redevelopment Merged Project Area (2005 Merged Project Amended Area) – Top Twenty Assessed Values

8. Manteca Redevelopment Amended Merged Project Area (2004 Amended Area) – Top Twenty Assessed Values

9. Taxable Sales by Category

10. Direct and Overlapping Sales Tax Rates

11. Principal Sales Tax Payers
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:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Revenue Bond Coverage – Water Revenue Bonds

5. Revenue Bond Coverage – Sewer Revenue Bonds

6. Bonded Debt Pledged-Revenue Coverage – Redevelopment Agency Tax Allocation Bonds 167
STATISTICAL SECTION (Continued)
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic and Economic Statistics

2. Principal Employers
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 City provides and the activities it performs:

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators and Capital Assets Statistics by Function/Program Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
168
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CITY OF MANTECA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018(A) 2019 2020
Governmental activities
Net investment in capital assets $282,954,575 $311,611,351 $327,232,512 $346,055,728 $395,180,359 Restricted 139,014,904 139,177,788 153,222,783 159,370,865 149,336,987 Unrestricted (42,549,501) (35,156,678) (54,265,195) (54,138,733) (62,776,206) Total governmental activities net position $379,419,978 $415,632,461 $426,190,100 $451,287,860 $481,741,140 Business-type activities
Net investment in capital assets $144,968,629 $136,859,563 $157,529,677 $168,685,323 $193,144,500 Unrestricted 38,202,656 51,856,903 43,293,291 52,128,274 44,732,619 Total business-type activities net position $183,171,285 $188,716,466 $200,822,968 $220,813,597 $237,877,119 Primary government
Net investment in capital assets $427,923,204 $448,470,914 $484,762,189 $514,741,051 $588,324,859 Restricted 139,014,904 139,177,788 153,222,783 159,370,865 149,336,987 Unrestricted (4,346,845) 16,700,225 (10,971,904) (2,010,459) (18,043,587) Total primary government net position $562,591,263 $604,348,927 $627,013,068 $672,101,457 $719,618,259 (A) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated.
-$100$0 $100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
Millions
Net investment in capital assets
Restricted
170
2021 2022 2023 2024 2025
$414,565,642 $422,119,848 $439,385,476 $465,658,158 $482,028,549 173,389,648 197,202,912 217,804,065 249,083,701 305,938,423 (63,375,920) (67,239,259) (53,591,717) (61,023,020) (61,312,801) $524,579,370 $552,083,501 $603,597,824 $653,718,839 $726,654,171 $212,888,678 $220,695,835 $222,479,874 $231,116,914 $240,545,502 53,979,732 61,562,129 73,808,452 84,265,669 97,408,198
$266,868,410 $282,257,964 $296,288,326 $315,382,583 $337,953,700 $627,454,320 $642,815,683 $661,865,350 $696,775,072 $722,574,051 173,389,648 197,202,912 217,804,065 249,083,701 305,938,423 (9,396,188) (5,677,130) 20,216,735 23,242,649 36,095,397 $791,447,780 $834,341,465 $899,886,150 $969,101,422 $1,064,607,871 171

CITY OF MANTECA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2016 2017 2018(1) 2019 2020
Expenses:

Governmental Activities:

General Government $3,629,365 $3,483,457 $5,906,891 $6,053,229 $7,054,126 Community Development 6,616,224 6,196,786 9,669,910 7,701,286 8,242,158 Public Safety 25,193,524 22,357,675 34,883,973 36,204,202 42,395,447 Library 118,809 124,185 120,222 134,006 145,310
Public Works 4,843,276 5,274,495 7,091,236 8,645,927 7,137,403 Parks and Recreation 8,331,503 9,295,263 10,651,329 10,125,867 11,710,512 Streets and Highways 10,856,381 9,817,010 8,850,328 11,513,804 10,268,116 Interest and Fiscal Charges 101,562 89,384 84,784 80,021 129,403 Total Governmental Activities Expenses 59,690,644 56,638,255 77,258,673 80,458,342 87,082,475 Business-Type Activities:

Water 14,996,267 16,753,545 17,520,196 17,818,593 18,967,868 Sewer 14,274,230 22,082,085 16,478,268 17,479,631 18,596,722 Solid Waste 10,566,029 12,126,537 11,491,357 12,622,724 12,752,503 Golf 1,178,770 1,347,568 1,121,928 1,284,914 1,327,641
Transit
Total Business-Type Activities Expenses 41,015,296 52,309,735 46,611,749 49,205,862 51,644,734 Total Primary Government Expenses $100,705,940 $108,947,990 $123,870,422 $129,664,204 $138,727,209 Program Revenues:

Governmental Activities:

Charges for Services:

General Government $4,337,680 $5,136,836 $5,994,217 $6,266,735 $6,038,904 Community Development 2,877,168 4,624,314 7,306,692 7,640,377 6,545,381 Public Safety 1,360,473 1,542,872 1,874,561 3,232,381 1,580,738 Public Works 183,422 273,903 288,452 398,437 239,053
Parks and Recreation 2,772,184 3,458,096 3,337,139 4,247,649 4,173,698 Streets and Highways 2,925,863
Operating Grants and Contributions 6,085,529 6,698,385 8,695,800 9,575,549 9,952,561 Capital Grants and Contributions 41,118,815 33,113,697 33,768,730 26,345,923 38,154,802 Total Government Activities Program Revenues 58,735,271 54,848,103 61,265,591 60,632,914 66,685,137 Business-Type Activities:

Charges for Services:

Water 13,901,722 15,396,799 17,841,323 16,620,397 17,576,060 Sewer 19,969,107 22,953,356 26,572,846 26,305,512 22,510,081 Solid Waste 9,131,837 10,483,066 12,593,379 13,429,983 13,875,762 Golf 978,427 908,639 1,193,170 1,112,976 1,044,323
Transit
Operating Grants and Contributions
Capital Grants and Contributions 935,948 6,660,347 4,487,162 3,577,598 10,233,700 Total Business-Type Activities Program Revenue 44,917,041 56,402,207 62,687,880 61,046,466 65,239,926 Total Primary Government Program Revenues $103,652,312 $111,250,310 $123,953,471 $121,679,380 $131,925,063 Net (Expense)/Revenue:

Governmental Activities ($955,373) ($1,790,152) ($15,993,082) ($19,825,428) ($20,397,338) Business-Type Activities 3,901,745 4,092,472 16,076,131 11,840,604 13,595,192 Total Primary Government Net Expense $2,946,372 $2,302,320 $83,049 ($7,984,824) ($6,802,146) General Revenues and Other
Changes in Net Position:

Governmental Activities:

Taxes:

Property Taxes $12,633,502 $14,476,480 $15,511,281 $17,158,387 $19,385,771 Sales Taxes 14,552,582 17,550,799 18,971,755 20,298,214 22,292,924 Other Taxes 5,006,171 3,012,505 3,325,769 3,761,139 3,434,933 Interest Income 1,635,220 850,024 1,175,293 5,026,389 4,501,680 Other Revenue 937,712 1,327,689 1,867,047 848,738 215,694 Developer Contributions 72,154 326,216 209,612 350,696 1,144,141 Gain From Sale of Capital Assets 1,675,000 457,360
Transfers, net (241,200) (300,488) (468,073) (4,195,375) (581,885) Special Item 759,410
Total Government Activities 34,596,141 38,002,635 40,592,684 44,923,188 50,850,618 Business-Type Activities:

Interest Income 1,167,858 472,012 810,465 3,528,311 2,679,191 Other Revenue 276,950 680,209 389,176 426,339 207,254
Gain From Sale of Capital Assets
Transfers, net 241,200 300,488 468,073 4,195,375 581,885 Total Business-Type Activities 1,686,008 1,452,709 1,667,714 8,150,025 3,468,330 Total Primary Government $36,282,149 $39,455,344 $42,260,398 $53,073,213 $54,318,948 Change in Net Position:

Governmental Activities $33,640,768 $36,212,483 $24,599,602 $25,097,760 $30,453,280 Business-Type Activities 5,587,753 5,545,181 17,743,845 19,990,629 17,063,522 Total Primary Government $39,228,521 $41,757,664 $42,343,447 $45,088,389 $47,516,802 (1) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated. (2) The Transit Enterprise Fund activities were previously reported in governmental activities. 172
2021 2022 2023 2024 2025
$9,079,274 $5,493,756 $10,150,611 $14,222,196 $14,647,356 10,364,833 15,021,715 14,921,624 15,960,910 16,097,481
40,640,436 54,117,359 36,874,290 52,495,969 60,079,637
87,185 124,342 146,067 159,214 587,467
9,367,355 12,812,977 17,004,659 19,615,341 32,323,376
9,047,085 6,821,241 6,080,603 5,513,406 6,529,667
11,463,230 12,042,148 12,874,297 15,133,269 5,549,087
163,409 85,578 89,385 93,675 14,103
90,212,807 106,519,116 98,141,536 123,193,980 135,828,174 26,674,047 19,513,996 20,449,549 24,628,431 27,663,072
19,697,865 21,604,463 22,408,854 27,934,721 36,170,020
12,884,734 15,402,035 16,728,245 17,964,654 20,285,758
1,643,383 1,756,328 1,636,173 1,654,615 1,411,433
(2) 3,377,255 4,197,567 4,338,128
60,900,029 58,276,822 64,600,076 76,379,988 89,868,411
$151,112,836 $164,795,938 $162,741,612 $199,573,968 $225,696,585 $6,172,866 $6,179,781 $6,749,391 $7,841,363 $8,284,171
7,062,924 8,921,025 6,254,666 9,422,712 14,683,017
2,969,457 3,193,265 2,513,921 1,774,957 3,105,403
1,056,285 996,377 2,542,957 5,006,321 3,527,153
3,846,159 4,741,365 4,971,913 5,975,713 5,826,290
9,597,652 13,069,036 8,725,900 15,253,363 13,065,485
50,590,297 39,061,963 52,366,303 45,022,662 64,008,685
81,295,640 76,162,812 84,125,051 90,297,091 112,500,204 21,103,821 21,816,772 18,786,751 24,411,625 26,863,507
24,757,696 26,024,468 25,917,480 27,693,625 30,647,569
14,624,464 15,730,829 16,288,404 21,136,784 27,112,875
1,689,785 1,642,464 1,525,393 1,592,653 1,762,680
105,822 121,233 136,489
23,126,463 6,000,000 3,535,010 2,712,163 7,619,115
4,401,716 2,380,360 4,229,461 9,851,452 6,992,789
89,703,945 73,594,893 70,388,321 87,519,535 101,135,024 $170,999,585 $149,757,705 $154,513,372 $177,816,626 $213,635,228 ($8,917,167) ($30,356,304) ($14,016,485) ($32,896,889) ($23,327,970) 28,803,916 15,318,071 5,788,245 11,139,547 11,266,613
$19,886,749 ($15,038,233) ($8,228,240) ($21,757,342) ($12,061,357) $21,126,114 $21,443,545 $25,660,666 $27,637,304 $30,296,255 23,509,852 28,438,483 29,324,167 29,241,378 33,364,542
4,144,750 9,577,052 10,218,719 9,964,285 10,607,216
1,012,967 (3,237,386) 4,531,826 9,760,393 19,844,868
598,244 907,892 1,408,087 2,059,406 1,336,341
1,268,286 1,173,042 368,332 770,559 2,066,881
29,762 317,807
95,184 (471,955) (5,984,989) 2,484,789 (618,394)
51,755,397 57,860,435 65,526,808 82,235,921 96,897,709
125,791 (1,754,659) 1,890,954 4,813,201 9,330,036
154,268 1,354,187 366,174 234,830 779,049
2,500 1,250,000 1,152
(95,184) 471,955 5,984,989 (2,484,789) 618,394
187,375 71,483 8,242,117 3,813,242 10,728,631
$51,942,772 $57,931,918 $73,768,925 $86,049,163 $107,626,340 $42,838,230 $27,504,131 $51,510,323 $49,339,032 $73,569,739 28,991,291 15,389,554 14,030,362 14,952,789 21,995,244
$71,829,521 $42,893,685 $65,540,685 $64,291,821 $95,564,983 173

CITY OF MANTECA
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
June 30,
2016 2017 2018 2019 2020
General Fund:

Nonspendable $1,140,121 $1,236,685 $1,174,248 $1,167,635 $1,081,780 Restricted 496,896 493,423 497,968 468,942
Assigned 10,860,353 12,167,528 12,242,789 22,234,205 22,845,194 Unassigned 14,362,743 15,313,223 17,864,670 5,365,691 9,498,731 Total General Fund $26,363,217 $29,214,332 $31,775,130 $29,265,499 $33,894,647 All Other Governmental Funds:

Nonspendable $367,368
Restricted 109,084,616 $108,951,883 $121,695,103 $130,317,107 $114,589,894 Committed 566,659 513,754 315,126 128,901 151,617
Assigned 6,873,122 7,593,864 8,993,799 6,595,121 2,464,870 Unassigned (217,246)
Total All Other Governmental Funds $116,891,765 $117,059,501 $131,004,028 $137,041,129 $116,989,135 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50
$100
$150
$200
$250
$300
$350
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Nonspendable Restricted Committed Assigned Unassigned
174
2021 2022 2023 2024 2025
$1,081,780 $1,081,780 $1,161,780 $1,085,904 $1,085,904
463,902 455,838 448,821 427,774 423,373
22,693,202 26,188,105 28,411,565 30,542,921 33,357,433
12,784,135 9,331,508 10,485,964 15,591,035 20,027,967
$37,023,019 $37,057,231 $40,508,130 $47,647,634 $54,894,677 (a) $12,640
$135,284,222 160,541,696 $184,317,805 $213,541,542 $270,789,072 292,905 303,025 538,578
2,951,856 726,934 2,952,404 2,960,884
(627,731) (614,292) (7,234,011) (177,923)
$137,608,347 $160,666,978 $177,376,699 $216,619,048 $274,288,534 (a) 175

CITY OF MANTECA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2016 2017 2018 2019 2020
Revenues
Taxes $32,947,680 $35,923,482 $38,836,074 $41,952,454 $46,095,783 Licenses and permits 5,500,733 7,297,736 9,361,925 7,741,377 8,434,426 Fines and forfeitures 251,348 242,370 274,079 495,618 592,613 Use of money and property 1,524,560 887,642 1,178,617 4,702,952 4,322,549 Revenue from other agencies 36,458,520 8,181,175 9,979,594 10,055,955 9,472,396 Charges for services 12,393,596 16,563,471 24,833,693 25,269,605 25,323,831 Other revenue 840,611 1,310,923 978,783 792,282 547,619 Total Revenues 89,917,048 70,406,799 85,442,765 91,010,243 94,789,217 Expenditures
Current:

General government 3,426,132 4,213,380 3,908,666 4,489,437 5,257,415 Community development 3,969,714 3,427,208 6,062,166 4,642,422 5,057,407 Public safety 26,515,201 28,149,443 29,913,998 32,607,974 36,853,715 Library 119,733 124,621 116,993 128,069 130,899
Public works 2,943,548 3,437,585 4,235,394 4,805,032 5,093,797 Parks and recreation 6,447,370 6,811,941 7,619,147 8,074,112 8,142,074 Streets and highways 3,657,370 3,911,368 2,406,785 6,976,028 4,553,139 Nondepartmental 2,620,108 2,853,407 3,087,315 2,996,435 2,624,979 Capital outlay 6,582,238 13,440,297 11,593,401 19,115,918 41,854,768 Debt service:

Principal repayment 277,308 129,708 134,307 139,070 144,002 Interest and fiscal charges 101,562 89,384 84,784 80,021 129,403 Total Expenditures 56,660,284 66,588,342 69,162,956 84,054,518 109,841,598 Excess (deficiency) of revenues over
(under) expenditures 33,256,764 3,818,457 16,279,809 6,955,725 (15,052,381) Other Financing Sources (Uses)
Transfers in 4,773,733 346,972 753,989 217,000 540,000
Transfers (out) (5,814,933) (1,147,460) (1,117,564) (4,645,255) (1,451,875) Issuance of long-term debt 580,000
Inception of lease
Inception of SBITA
Proceeds from sale of property 1,787 882 589,091 1,000,000 541,410 Total other financing sources (uses) (459,413) (799,606) 225,516 (3,428,255) (370,465) Net Change in Fund Balances $32,797,351 $3,018,851 $16,505,325 $3,527,470 ($15,422,846) Debt service as a percentage of
noncapital expenditures 0.9% 0.7% 0.4% 0.4% 0.3%
176
2021 2022 2023 2024 2025
$49,951,360 $60,957,368 $66,308,748 $68,203,283 $75,591,593 11,329,285 12,795,149 12,139,086 16,458,942 20,231,672
478,460 468,601 442,332 422,302 618,015
906,839 (3,083,699) 4,379,982 9,385,646 19,312,902
16,804,068 17,348,818 15,927,169 26,565,537 27,820,096
35,093,633 37,963,370 33,373,777 41,833,465 49,721,056
589,850 852,914 1,544,624 2,177,272 1,645,024
115,153,495 127,302,521 134,115,718 165,046,447 194,940,358 6,546,850 8,075,381 9,924,451 12,099,351 12,396,543
5,547,248 5,042,477 4,378,840 5,326,519 5,845,398
38,759,432 46,155,673 45,891,215 48,102,772 51,869,485
75,421 135,760 153,898 159,214 584,431
7,738,420 13,356,878 12,118,575 14,019,873 13,819,534
6,351,451 4,623,634 3,742,659 3,106,823 3,662,964
4,278,286 5,153,928 3,953,457 4,700,282 5,875,116
3,828,297 9,770,845 9,351,502 9,611,308 9,616,208
17,306,911 11,343,816 23,794,169 29,591,082 26,471,853
115,961 157,176 255,226 318,346 422,519
163,409 85,391 87,780 90,303 14,964
90,711,686 103,900,959 113,651,772 127,125,873 130,579,015 24,441,809 23,401,562 20,463,946 37,920,574 64,361,343
496,000 845,514 10,981,244 3,518,770 864,640
(1,190,225) (1,272,327) (11,411,044) (2,840,352) (1,458,394) 20,832 144,516
58,974 446,372 936,924
97,262 67,500 385,307 67,500
(694,225) (308,719) (303,326) 1,510,097 555,186
$23,747,584 $23,092,843 $20,160,620 $39,430,671 $64,916,529

0.4% 0.4% 0.3% 0.4% 0.4%
177
Licenses Revenue Use of Charges Fines, Forfeits
Fiscal and From Other Money and for and Other
Year Taxes Permits Agencies Property Services Revenue Total 2016 $32,947,680 $5,500,733 $36,458,520 $1,524,560 $12,393,596 $1,091,959 $89,917,048 2017 35,923,482 7,297,736 8,181,175 887,642 16,563,471 1,553,293 70,406,799 2018 38,836,074 9,361,925 9,979,594 1,178,617 24,833,693 1,252,862 85,442,765 2019 41,952,454 7,741,377 10,055,955 4,702,952 25,269,605 1,287,900 91,010,243 2020 46,095,783 8,434,426 9,472,396 4,322,549 25,323,831 1,140,232 94,789,217 2021 49,951,360 11,329,285 16,804,068 906,839 35,093,633 1,068,310 115,153,495 2022 60,957,368 12,795,149 17,348,818 (3,083,699) 37,963,370 1,321,515 127,302,521 2023 66,308,748 12,139,086 15,927,169 4,379,982 33,373,777 1,986,956 134,115,718 2024 68,203,283 16,458,942 26,565,537 9,385,646 41,833,465 2,599,574 165,046,447 2025 75,591,593 20,231,672 27,820,096 19,312,902 49,721,056 2,263,039 194,940,358 Source: City Operating Budget and City Annual Financial Report

CITY OF MANTECA

GENERAL REVENUES BY SOURCE

ALL GOVERNMENTAL FUND TYPES

LAST TEN FISCAL YEARS
$0
$10
$20
$30
$40
$50
$60
$70
$80
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Taxes Licenses and Permits
Revenue From Other Agencies Use of Money and Property
Charges for Services Fines, Forfeits and Other Revenue
178
Fiscal General Public Public Parks and Capital Debt
Year Government (a) Safety Works Recreation Improvement (b) Service Total 2016 $10,135,687 $26,515,201 $2,943,548 $6,447,370 $10,239,608 $378,870 $56,660,284 2017 10,618,616 28,149,443 3,437,585 6,811,941 17,351,665 219,092 66,588,342 2018 13,175,140 29,913,998 4,235,394 7,619,147 14,000,186 219,091 69,162,956 2019 12,256,363 32,607,974 4,805,032 8,074,112 26,091,946 219,091 84,054,518 2020 13,070,700 36,853,715 5,093,797 8,142,074 46,407,907 273,405 109,841,598 2021 15,997,816 38,759,432 7,738,420 6,351,451 21,585,197 279,370 90,711,686 2022 23,024,463 46,155,673 13,356,878 4,623,634 16,497,744 242,567 103,900,959 2023 23,808,691 45,891,215 12,118,575 3,742,659 27,747,626 343,006 113,651,772 2024 27,196,392 48,102,772 14,019,873 3,106,823 34,291,364 408,649 127,125,873 2025 28,442,580 51,869,485 13,819,534 3,662,964 32,346,969 437,483 130,579,015 Source: City Operating Budget and City Annual Financial Report Notes: (a) Includes all General Government, Community Development, Library and Nondepartmental Expenditures (b) Includes Streets and Highways and Capital Outlay Expenditures

CITY OF MANTECA

GENERAL EXPENDITURES BY FUNCTION

ALL GOVERNMENTAL FUND TYPES

LAST TEN FISCAL YEARS
$0
$10
$20
$30
$40
$50
$60
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
General Government (a) Public Safety Public Works
Parks and Recreation Capital Improvement (b) Debt Service 179

CITY OF MANTECA

ASSESSED AND ESTIMATED
VALUE OF TAXABLE PROPERTY (in thousands)

LAST TEN FISCAL YEARS
Total Real Net Real Total
Fiscal Land Improvements Personal Secured (Less) Public Secured Unsecured Total Estimated Direct Year Property Property Property Property Exemption Utility Property Property Assessed (a) Full Market (a) Tax Rate (b) 2016 $1,936,284 $4,145,924 $56,729 $6,138,937 ($216,669) $1,346 $5,923,614 $181,734 $6,105,348 $6,105,348 1% 2017 2,098,268 4,433,045 56,943 6,588,256 (219,922) 1,282 6,369,616 182,277 6,551,893 6,551,893 1% 2018 2,300,404 4,760,891 48,467 7,109,762 (224,278) 1,282 6,886,766 201,060 7,087,826 7,087,826 1% 2019 2,412,089 5,220,890 48,882 7,681,861 (231,360) 1,282 7,451,783 182,024 7,633,807 7,633,807 1% 2020 2,595,124 5,785,690 53,707 8,434,521 (153,256) 1,282 8,282,547 175,612 8,458,159 8,458,159 1% 2021 2,775,610 6,430,002 73,481 9,279,093 (156,760) 1,190 9,123,523 171,834 9,295,357 9,295,357 1% 2022 2,937,636 6,966,264 73,947 9,977,847 (171,388) 1,190 9,807,649 173,838 9,981,487 9,981,487 1% 2023 3,201,023 7,720,270 102,198 11,023,491 (177,325) 1,190 10,847,356 205,710 11,053,066 11,053,066 1% 2024 3,517,108 8,502,339 115,195 12,134,642 (191,572) 1,190 11,944,260 240,535 12,184,795 12,184,795 1% 2025 3,875,583 9,170,364 135,791 13,181,738 (198,542) 3,975 12,987,171 269,981 13,257,152 13,257,152 1% Source: San Joaquin County Auditor Controller Office Certificate of Assessed Valuations (a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

The City of Manteca encompasses more than 15 tax rate areas.

Real Property
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Unsecured Property Secured Property
180

CITY OF MANTECA

DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal Year
Total Direct
Rate (4)
2016 $1.00000 $0.09510 $0.05070 $0.01980 $0.02700 $1.19260 $0.14408 $0.14264 2017 1.00000 0.08660 0.05200 0.01800 0.02310 1.17970 0.14408 0.14186 2018 1.00000 0.09160 0.04810 0.01800 0.02420 1.18190 0.14408 0.14127 2019 1.00000 0.08140 0.04680 0.02250 0.02600 1.17670 0.14408 0.14295 2020 1.00000 0.07690 0.04480 0.01990 0.02400 1.16560 0.14408 0.14259 2021 1.00000 0.07120 0.04370 0.01830 0.02300 1.15620 0.14408 0.14100 2022 1.00000 0.10780 0.04140 0.01630 0.02440 1.18990 0.14408 0.13968 2023 1.00000 0.09980 0.03840 0.01440 0.02340 1.17600 0.14408 0.13896 2024 1.00000 0.09530 0.03500 0.01350 0.02320 1.16700 0.14408 0.13792 2025 1.00000 0.08820 0.03340 0.01220 0.02630 1.16010 0.14408 0.13954 Notes:

Data Source:

San Joaquin
Delta College
District
Yosemite
College
Total Direct
and Overlapping
Tax Rates (2)
San Joaquin County Assessor 2015/16-2024/25 Tax Rate Table City's Share
of

1.% Levy
Per Prop 13 (3)
(1)In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. (3) City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where know.
(4) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

The ratios are expressed as dollars assessed per $100 of assessed valuation Basic Levy
(1) Manteca USD
Ripon
Unified
District

0.0000

0.2000

0.4000

0.6000

0.8000

1.0000

1.2000

1.4000

1.6000
2016
2017
2018
2019
Per Hundred $
0 0.2

0.4 0.6

0.8 1

1.2 1.4

1.6 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Rate
Per $100 of Taxable Value
Basic Levy Manteca USD Rippon Unified District
San Joaquin Delta College District Yosemite College Total Direct and Overlapping Tax Rates City's Share of 1% Levy Per Prop 13 Redevelopment Rate Total Direct Rate 181

CITY OF MANTECA
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable
Type of Assessed Type of Assessed
Taxpayer Business Value Business Value
GWR Manteca LLC Water Park/Resort 1.52%
Centerpoint Properties Trust Industrial Industrial 0.50% The Atherton Manteca LLC Apartments 0.55%
Exeter 3565 Airport LLC Industrial 0.76%
Compton Merger LLC Industrial 0.51%
DP & DK Investment Inc. Shopping Center 0.40%
LLH MRS Master RE LLC Cold Storage Cold Storage 0.74%
Paseo Apartments LLC Apartments Apartments 0.47%
Manteca Lifestyle Center LLC Shopping Center Shopping Center 0.84% Exeter 2226 Roth LLC Industrial 0.49%
Havelock Logistics West 3 Assets LLC Industrial 0.45%
Valencia Place Apartments Apartments 0.42%
Meritage Homes of California LLC Industrial 0.38%
Lineage Growth Logistics INC Industrial 0.38%
Excel Manteca LLC Commercial 0.84%
Pulte Home Corporation Industrial 0.50%
Prologis Warehouse 0.45%
Edward J & Dolores M Cardoza Trust Shopping Center 0.41% Duke Realty LP Industrial 0.40%
Costco Wholesale Corporation Commercial Store 0.39%
Total 5.86% 5.54%
Source: California Municipal Statistics
2024-2025 2015-2016
182

CITY OF MANTECA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
#
#
#
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) (b) Collections Collected Collections Collections to Tax Levy 2016 $12,633,502 $12,633,502 100.00% 0 $12,633,502 100.00% 2017 14,476,479 14,476,479 100.00% 0 14,476,479 100.00% 2018 15,511,281 15,511,281 100.00% 0 15,511,281 100.00% 2019 17,158,387 17,158,387 100.00% 0 17,158,387 100.00% 2020 19,385,771 19,385,771 100.00% 0 19,385,771 100.00% 2021 21,126,114 21,126,114 100.00% 0 21,126,114 100.00% 2022 21,443,545 21,443,545 100.00% 0 21,443,545 100.00% 2023 25,660,666 25,660,666 100.00% 0 25,660,666 100.00% 2024 27,637,304 27,637,304 100.00% 0 27,637,304 100.00% 2025 30,296,255 30,296,255 100.00% 0 30,296,255 100.00% Source: City of Manteca Records
NOTE: Current tax collections beginning in 1993 have been reduced by a mandatory tax reallocation imposed by the State of California
(a) During fiscal year 1995, the County began providing the City 100% of its tax levy under an agreement which allows the County to keep all interest and delinquency charges collected.
(b) Includes State Mandated Vehicle License Fee in lieu of property taxes $0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Tax Levy (a) (b) Tax Collections
183
2024-25 Total Local Secured Taxpayers
Assessed Valuation $1,160,790,252
Project Area No. 1
Property Owner Primary Land Use
2024-25 Assessed
Valuation
% of Total
Assessed
Valuation
1 Tilden - Laurel Glen LLC Apartments $38,116,083 3.28% 2 Stonegate Apts LLC Apartments 26,030,361 2.24%
3 Doctors Hospital of Manteca Inc. Hospital 23,336,480 2.01% 4 Second Harvest of the Greater Valley Warehouse 21,017,789 1.81% 5 Edward J. & Dolores M. Cardoza Trust Shopping Center 18,319,265 1.58% 6 Gurjinder Singh & Baljeet Kaur Hotel/Motel 16,056,152 1.38% 7 VFT Properties LLC Apartments 15,250,779 1.31%
8 Wal Mart Realty Company Commercial Store 14,740,559 1.27% 9 B.R. Funsten & Co. Corp. Warehouse 14,150,339 1.22%
10 Bank of Stockton Trust Automotive Repair 13,517,242 1.16% 11 MP Core Sienna Place LLC Apartments 11,959,462 1.03% 12 Eckert Engineering Corp. Warehouse 10,762,922 0.93%
13 Manteca Self Storage Owner LP Public Storage 10,665,139 0.92% 14 DSP Hospitality LLC Hotel/Motel 9,628,940 0.83%
15 CREFMA1 1019 Bessemer LLC Truck Terminal 9,363,600 0.81% 16 North Main Storage LLC Public Storage 7,216,655 0.62% 17 Store Capital Bowling Alley & Sports Bar 6,425,000 0.55% 18 KDDC Properties LLC Commercial 6,403,983 0.55%
19 Brocchini Family Partnership Commercial 5,882,036 0.51% 20 MN Gianni LLC Commercial 5,669,190 0.49%
$284,511,976 24.50%
Source: California Municipal Statistics, Inc

CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 1

TOP TWENTY ASSESSED VALUES
June 30, 2025
184
2024-25 Total Local Secured Taxpayers
Assessed Valuation $2,024,292,807
Project Area No. 2
Property Owner Primary Land Use
2024-25 Assessed
Valuation
% of Total
Assessed
Valuation
1 Compton Merger Sub LLC Warehouse $67,320,000 3.33%
2 DP & DK Investments Inc. Shopping Center 53,588,637 2.65% 3 Lineage Growth Logistics Inc. Cold Storage 49,736,724 2.46% 4 1340 Dupont Court LLC Apartments 40,250,000 1.99%
5 Prologis Warehouse 32,765,115 1.62%
6 Costco Wholesale Corporation Commercial Store 27,474,774 1.36% 7 Yip Holdings Five LLC Shopping Center 15,525,495 0.77% 8 Argo Manteca LLC Shopping Center 15,210,533 0.75%
9 Manteca Associates LP Light Industrial 14,482,600 0.72% 10 Target Corp. Shopping Center 13,612,611 0.67%
11 JEN California 23 LLC Residential Development 12,377,806 0.61% 12 Manteca Corners LLC Shopping Center 12,358,198 0.61% 13 VFT Family Partnership LP Apartments 11,662,051 0.58% 14 Cranbrook Realty Invest Fund LP Warehouse 11,617,883 0.57% 15 Kohl's Department Stores Inc. Shopping Center 11,500,000 0.57% 16 MHC 178 LLC Public Storage 11,248,783 0.56%
17 HD Development of Maryland Inc. Commercial Store 10,921,872 0.54% 18 Nestle Dreyers Ice Cream Co. Cold Storage 10,491,493 0.52% 19 Brocchini Family Partnership LP Office Building 10,443,411 0.52% 20 Daniel M. & Belinda A. Sarich, Trust Light Industrial 10,416,331 0.51% $443,004,317 21.91%
Source: California Municipal Statistics, Inc

CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 2

TOP TWENTY ASSESSED VALUES
June 30, 2025
185
2024-25 Total Local Secured Taxpayers
Assessed Valuation $35,510,997
2005 Merged Project Amended Area
Property Owner Primary Land Use
2024-25
Assessed
Valuation
% of Total
Assessed
Valuation
1 Las Animas Development LLC Medical Offices $4,138,481 11.65% 2 Lovejot Aulakh Truck Terminal 4,029,000 11.35%
3 AGS Gasoline LLC Service Station 3,350,588 9.44%
4 Makhan Sandhu Commercial Land 1,480,384 4.17%
5 Kahlon Group LLC Residential 1,300,000 3.66%
6 Rogelio Castaneda Nava and Veron Castaneda Residential 1,104,150 3.11% 7 Jaswant S. Pannu Commercial Land 1,059,741 2.98%
8 National San Joaquin LLC Assisted Living 1,018,589 2.87% 9 Major Singh Brar Commercial Land 940,000 2.65%
10 Gian S and Ghangu Sandeep Bhangu Residential 830,376 2.34% 11 Chattarpal S. Pabla Multi-Family Residential 805,000 2.27% 12 Van Tran and Dao Luu Residential 759,900 2.14%
13 Ranjit & Jaswinder Khangura Residential 721,700 2.03% 14 Natalyn J. and Thomas E. Bergman Jr. Residential 669,597 1.89% 15 Gustavo and Martha Ramirez Residential 663,255 1.87% 16 Jasvir and Sarbjit K. Singh Trust Light Industrial 657,569 1.85% 17 James H. Zimmerman Residential 586,884 1.65%
18 Arturo Ramirez Residential 506,800 1.43%
19 Alfredo Valenzuela Felix Residential 477,126 1.34%
20 Amarjit Singh Residential 440,000 1.24%
$25,539,140 71.93%
Source: California Municipal Statistics, Inc

CITY OF MANTECA

MANTECA REDEVELOPMENT MERGED PROJECT AREA

TOP TWENTY ASSESSED VALUES
June 30, 2025
186
2024-25 Total Local Secured Taxpayers
Assessed Valuation $539,499,293
2004 Amended Area
Property Owner Primary Land Use
2024-25 Assessed
Valuation
% of Total
Assessed
Valuation
1 GWR Manteca LLC Water Park/Resort $201,247,587 37.30% 2 The Atherton Manteca LLC Apartments 72,822,077 13.50% 3 Anson Logistics Assets LLC Warehouse 59,640,127 11.05% 4 Valencia Place Apartments LLC Apartments 55,302,435 10.25% 5 Manteca Lifestyle Center LLC Shopping Center 40,370,610 7.48% 6 RV Retailer Northern California Real Estate RV Sales 15,606,000 2.89% 7 Big Box Property Owner A LLC Light Industrial 12,824,462 2.38% 8 Cedar Real Estate Group IV LLC Truck Terminal 10,612,079 1.97% 9 Manteca Lodging LLC Shopping Center 10,335,916 1.92%
10 Andreetta Properties LP Food Processing 8,515,882 1.58% 11 JC Penney Properties Inc. Shopping Center 7,983,178 1.48% 12 Tesoro Commons LLC Residential Land 4,500,000 0.83%
13 JEN California 23 LLC Residential Development 2,639,707 0.49% 14 P & P Investments LLC Public Storage 2,545,135 0.47% 15 Manteca Truck Terminal LLC Industrial Land 2,427,893 0.45% 16 Ergonis Land Co. LP Light Industrial 2,413,586 0.45% 17 Plumrose USA Inc. Truck Terminal 2,340,899 0.43%
18 Jarnail Singh Kamboj Vacant 1,980,958 0.37%
19 Rajinder Aulakh Commercial Land 1,561,372 0.29%
20 Parmvir Sidhu Apartments 1,524,429 0.28%
$517,194,332 95.86%
Source: California Municipal Statistics, Inc

CITY OF MANTECA

MANTECA REDEVELOPMENT AMENDED MERGED PROJECT AREA

TOP TWENTY ASSESSED VALUES
June 30, 2025
187

CITY OF MANTECA

TAXABLE SALES BY CATEGORY

LAST TEN CALENDAR YEARS
(in thousands of dollars)
2015 2016 2017 2018 2019
Apparel Stores $42,537 $44,158 $46,781 $50,143 $51,211
General Merchandise 198,554 203,016 212,248 214,730 220,108 Food Stores 28,535 30,245 30,401 31,540 32,195
Eating and Drinking Places 107,809 116,177 125,661 130,613 140,213 Building Materials 113,578 121,128 128,925 129,723 135,369 Auto Dealers and Supplies 151,717 163,496 168,973 179,318 179,014 Service Stations 90,313 89,246 102,907 122,935 130,431
Other Retail Stores 128,152 130,676 126,974 126,018 126,131 All Other Outlets 226,773 245,295 263,859 294,936 322,087 Total $1,087,968 $1,143,437 $1,206,729 $1,279,956 $1,336,759 Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 188
2020 2021 2022 2023 2024
$38,668 $62,539 $62,144 $62,017 $66,041
213,182 262,639 297,348 281,795 277,903
38,458 37,431 39,132 40,347 39,554
131,768 177,421 196,009 202,745 212,599
138,684 162,761 174,245 158,037 152,366
188,657 238,976 227,734 185,562 156,712
111,817 165,463 209,413 190,702 182,794
134,618 171,905 184,931 180,448 185,247
333,889 452,350 510,963 588,088 602,731
$1,329,741 $1,731,485 $1,901,919 $1,889,741 $1,875,947
189

CITY OF MANTECA

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN FISCAL YEARS
Fiscal City Direct State of
Year Rate Measure M Measure K California
2015-16 1.00 0.50 0.50 6.50
2016-17 1.00 0.50 0.50 6.25 (a)
2017-18 1.00 0.50 0.50 6.25
2018-19 1.00 0.50 0.50 6.25
2019-20 1.00 0.50 0.50 6.25
2020-21 1.00 0.50 0.50 6.25
2021-22 1.00 0.50 0.50 6.25
2022-23 1.00 0.50 0.50 6.25
2023-24 1.00 0.50 0.50 6.25
2024-25 1.00 0.50 0.50 6.25
(a) On January 1, 2017, the State decreased the
the State Rate 0.25%
Source: California State Board of Equalization / California Department of Tax and Fee Administration
190

CITY OF MANTECA

PRINCIPAL SALES TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO

IN ALPHABETICAL ORDER
Calendar Year 2024 Calendar Year 2015
Amazon Com Services Ahmeds Chevron
Amazon MFA American Modular Systems
American Modular Systems Arco
Arco B. R. Funsten & Company
Arco AM PM Bass Pro Shops Outdoor World
Arco AM PM Burlington
B R Funsten & Company Cabral Chrysler Jeep Dodge Ram Fiat Bass Pro Shops Outdoor World Chevron
Blue Compass Rv Costco
Cabral Chrysler Jeep Dodge Ram Fiat Country Kia
Chevron Home Depot
Chick Fil A J. M. Equipment Company
Core & Main J C Penney
Costco Kmart
Country Kia Kohls
Great Wolf Lodge Manteca Ford
Home Depot Manteca Trailer & Motorhome
J M Equipment Company Quik Stop
Knife River Concrete Roberts & Brune Co
Living Spaces Furniture Ross
Manteca Ford Save Mart
Ross Family Super Stop Gas & Liquor
Target Target
TJ Maxx TJ Maxx
Walmart Supercenter Walmart Supercenter
Percent of fiscal year total paid by top 25 accounts:

55.49% 55.16%
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, TheHdL Companies 191

CITY OF MANTECA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Capital Lease Subscription
Year Leases Liabilities Liabilities Total
2016 $1,150,979 $1,150,979
2017 905,370 905,370
2018 651,199 651,199
2019 388,165 388,165
2020 115,961 115,961
2021 0
2022 $504,872 504,872
2023 1,305,330 $103,392 1,408,722
2024 902,624 403,417 1,306,041
2025 127,039 2,661,641 2,788,680
Business-Type Activities
Water Sewer Total Percentage
Fiscal Revenue Revenue Leases Primary of Personal Per
Year Bonds Bonds Liabilities Total Government Income (a) Capita (a) 2016 $37,787,462 $40,748,487 $78,535,949 $79,686,928 4.74% $1,079 2017 36,404,147 39,484,393 75,888,540 76,793,910 4.47% 1,007 2018 34,970,831 38,135,300 73,106,131 73,757,330 4.09% 907 2019 33,487,516 36,831,206 70,318,722 70,706,887 3.68% 844 2020 31,954,201 35,337,112 67,291,313 67,407,274 3.22% 795 2021 30,350,886 33,728,018 64,078,904 64,078,904 2.80% 734 2022 28,677,570 31,988,924 $34,666 60,701,160 61,206,032 2.47% 705 2023 26,929,255 30,149,830 22,701 57,101,786 58,510,508 2.16% 659 2024 25,105,939 28,170,736 22,702 53,299,377 54,605,418 1.69% 583 2025 23,202,623 26,886,642 19,706 50,108,971 52,897,651 1.64% 564 Sources: City of Manteca
State of California, Department of Finance (population) Bureau of Economic Analysis
Note: Debt amounts exclude any premiums, discounts, or other amortization amounts. (a) See Demographic Statistics for personal income and population data. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Governmental Activities
192

CITY OF MANTECA

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2025
2024-25 Assessed Valuation: $13,257,151,600
Total Debt City's Share of
JURISDICTION 6/30/2025 % Applicable (1) Debt 6/30/25

OVERLAPPING TAX AND ASSESSMENT DEBT
San Joaquin Delta Community College District $148,565,000 10.322% $15,334,879 Yosemite Community College District 229,290,111 0.302% 692,456 Manteca Unified School District 378,163,008 52.272% 197,673,368 Ripon Unified School District 32,157,036 6.945% 2,233,306 Manteca Unified School District Community Facilities District No. 1989-2 13,770,000 79.150% 10,898,955 Manteca Unified School District Community Facilities District No. 2018-5 44,325,000 100% 44,325,000 Manteca Unified School District Community Facilities District No. 2000-3 43,555,000 100% 43,555,000 City of Manteca Community Facilities District No. 2023-1, I.A. No. 1 5,640,000 100% 5,640,000 City of Manteca Community Facilities District No. 2023-1, I.A. No. 2 10,110,000 100% 10,110,000 City of Manteca Community Facilities District No. 2023-1, I.A. No. 3 5,515,000 100% 5,515,000 California Statewide Communities Development Authority CFD No. 2012-2 5,610,000 100% 5,610,000 California Statewide Communities Development Authority CFD No. 2024-16 6,595,000 100% 6,595,000 California Statewide Communities Development Authority 1915 Act Bonds 76,305,779 100% 76,305,779 Reclamation District No 17 Assessment District 19,320,000 6.969% 1,346,411 TOTAL OVERLAPPING DEBT $911,090,155 $425,835,154

DIRECT AND OVERLAPPING GENERAL FUND DEBT
San Joaquin County Certificates of Participation $43,190,000 11.384% $4,916,750 Manteca Unified School District Certificates of Participation 9,985,000 52.272% 5,219,359 CITY OF MANTECA GENERAL FUND OBLIGATIONS 0 100% 0
Total Gross Direct and Overlapping General Fund Debt $53,175,000 10,136,109 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $10,136,109 (2) OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 78,800,000 100% $78,800,000 TOTAL DIRECT DEBT $0 (2)
TOTAL OVERLAPPING DEBT $514,771,263 (2)
COMBINED TOTAL DEBT $514,771,263 (2)
(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 city's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 3.21%
Total Direct Debt 0.00%
Combined Total Debt 3.88%
Ratios to Redevelopment Incremental Valuation ($3,491,586,455) Total Overlapping Tax Increment Debt 2.26%
Source: California Municipal Statistics, Inc.
193

CITY OF MANTECA

COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2025
ASSESSED VALUATION:

Assessed Value $13,257,152,000
Add back: Exempt real property 0
Total Assessed Valuation $13,257,152,000
BONDED DEBT LIMIT (15.0% OF ASSESSED VALUE) (a) $1,988,572,800 AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LEGAL BONDED DEBT MARGIN $1,988,572,800
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2016 $926,579,505 $0 $926,579,505 0.00%
2017 993,777,916 0 993,777,916 0.00%
2018 1,074,262,278 0 1,074,262,278 0.00%
2019 1,156,369,671 0 1,156,369,671 0.00%
2020 1,268,723,873 0 1,268,723,873 0.00%
2021 1,394,303,550 0 1,394,303,550 0.00%
2022 1,497,223,050 0 1,497,223,050 0.00%
2023 1,657,959,900 0 1,657,959,900 0.00%
2024 1,827,719,250 0 1,827,719,250 0.00%
2025 1,988,572,800 0 1,988,572,800 0.00%
NOTE:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
194

CITY OF MANTECA

REVENUE BOND COVERAGE

WATER REVENUE BONDS

LAST TEN FISCAL YEARS
Depreciation Net Revenue
Fiscal Gross Operating Non-Operating Available for Debt Service Requirements Year Revenue Expenses Revenues (a) Debt Service Principal Interest Total Coverage 2016 $13,911,824 ($13,569,363) $4,219,136 $4,561,597 $1,145,000 $1,618,950 $2,763,950 1.65 2017 15,475,870 (15,374,241) 3,955,645 4,057,274 1,190,000 1,572,250 2,762,250 1.47 2018 17,874,779 (16,190,492) 4,115,119 5,799,406 1,240,000 1,523,650 2,763,650 2.10 2019 16,630,981 (16,540,348) 5,353,867 5,444,500 1,290,000 1,473,050 2,763,050 1.97 2020 17,460,808 (17,781,017) 4,918,205 4,597,996 1,340,000 1,413,750 2,753,750 1.67 2021 21,103,961 (17,381,197) 3,838,008 7,560,772 1,410,000 1,345,000 2,755,000 2.74 2022 21,846,755 (17,204,712) 3,187,306 7,829,349 1,480,000 1,272,750 2,752,750 2.84 2023 18,828,384 (19,455,588) 4,905,189 4,277,985 1,555,000 1,196,875 2,751,875 1.55 2024 24,451,854 (23,678,287) 6,384,288 7,157,855 1,630,000 1,117,250 2,747,250 2.61 2025 27,501,701 (26,863,823) 8,254,650 8,892,528 1,710,000 1,033,750 2,743,750 3.24 Source: City of Manteca Annual Financial Statements
Note: (a) Depreciation expense is added back to exclude it from net revenues. Interest income is included the calculation of net revenues.

Source: City of Manteca Annual Financial Statements

0.00 1.00

2.00 3.00

4.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Coverage
195

CITY OF MANTECA

REVENUE BOND COVERAGE

SEWER REVENUE BONDS

LAST TEN FISCAL YEARS
Depreciation Net Revenue
Fiscal Operating Operating Non-Operating Available for Debt Service Requirements Year Revenue Expenses Revenues (a) Debt Service Principal Interest Total Coverage 2016 $20,088,298 ($12,427,362) $3,823,516 $11,484,452 $1,105,000 $1,844,216 $2,949,216 3.89 2017 23,353,626 (20,270,910) 3,693,782 6,776,498 1,180,000 1,809,941 2,989,941 2.27 2018 26,752,536 (14,696,631) 3,953,777 16,009,682 1,265,000 1,779,591 3,044,591 5.26 2019 26,407,556 (15,734,144) 5,554,762 16,228,174 1,220,000 1,744,741 2,964,741 5.47 2020 22,632,685 (16,910,860) 5,314,430 11,036,255 1,410,000 1,687,291 3,097,291 3.56 2021 24,878,743 (17,983,713) 4,527,785 11,422,815 1,525,000 1,613,916 3,138,916 3.64 2022 26,764,183 (20,033,066) 3,464,611 10,195,728 1,655,000 1,550,966 3,205,966 3.18 2023 26,115,040 (20,907,297) 5,553,416 10,761,159 1,755,000 1,482,266 3,237,266 3.32 2024 27,788,557 (26,520,819) 7,289,038 8,556,776 1,895,000 1,391,016 3,286,016 2.60 2025 30,759,579 (34,941,393) 9,987,675 5,805,861 1,200,000 1,313,990 2,513,990 2.31 Note (a) Depreciation expense is added back to exclude it from net revenues. Interest income is included the calculation of net revenues.

Source: City of Manteca Annual Financial Statements

0.00 1.00

2.00 3.00

4.00 5.00

6.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Coverage
196

CITY OF MANTECA

BONDED DEBT PLEDGED-REVENUE COVERAGE

REDEVELOPMENT AGENCY TAX ALLOCATION BONDS

LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest (c) Total Coverage
2016 $9,143,768 (a) (b) $3,000,000 (a) $5,003,356 (a) $8,003,356 1.14 2017 8,860,814 (a) (b) 3,135,000 (a) 5,765,392 (a) 8,900,392 1.00 2018 8,970,904 (a) (b) 3,275,000 (a) 5,599,995 (a) 8,874,995 1.01 2019 8,638,662 (a) (b) 3,420,000 (a) 5,155,090 (a) 8,575,090 1.01 2020 8,463,615 (a) (b) 3,570,000 (a) (d) 3,815,396 (a) 7,385,396 1.15 2021 4,982,819 (a) (b) 1,985,000 (a) 1,657,216 (a) (d) 3,642,216 1.37 2022 14,926,936 (a) (b) 4,190,000 (a) 2,723,702 (a) 6,913,702 2.16 2023 1,427,520 (a) (b) 4,255,000 (a) 2,639,891 (a) 6,894,891 0.21 2024 5,861,798 (a) (b) 4,315,000 (a) 2,551,099 (a) 6,866,099 0.85 2025 5,238,030 (a) (b) 4,385,000 (a) 2,458,104 (a) 6,843,104 0.77 Note: (a) The Redevelopment Agency was dissolved effective January 31, 2012, and its liabilities were assumed by a Successor Agency. Amounts reported here include tax revenue and debt service of both the former Redevelopment Agency and the Successor Agency. (b) Beginning in fiscal year 2012, tax increment reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. (c) Excludes the letter of credit and remarketing fees on the 2005 Tax Allocation Bonds. (d) Excludes principal retirements related to the issuance of the Series 2020A and 2020B Refunding Bonds.

Source: City of Manteca Annual Financial Statements
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Incremental Revenue Debt Service Payment
197

CITY OF MANTECA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Total
Personal Per Capita San Joaquin City
Calendar City Income Personal Unemployment County Population Year Population (in thousands) Income (a) Rate (%) Population % of County 2015 73,841 $1,682,925 $22,791 8.9% 735,677 10.04%
2016 76,247 1,717,719 22,528 8.1% 747,263 10.20%
2017 81,345 1,804,801 22,187 6.9% 758,744 10.72%
2018 83,781 1,923,643 22,960 4.5% 770,385 10.88%
2019 84,800 2,091,006 24,658 4.4% 773,505 10.96%
2020 87,319 2,286,735 26,188 9.9% 783,534 11.14%
2021 86,859 2,473,733 28,480 7.3% 784,298 11.07%
2022 88,803 2,714,458 30,567 4.1% 786,145 11.30%
2023 90,917 3,020,305 33,220 5.1% 800,965 11.35%
2024 93,733 3,229,445 34,454 5.8% 812,340 11.54%
Source: California State Department of Finance - City Population (1/1/20) Bureau of Labor Statistics - Unemployment Rate (Not Seasonally Adjusted) Bureau of Economic Analysis - Per Capita (San Joaquin County) Note: Data for Per Capita 2016 and 2017 was not available. Numbers are projections. (a) Personal income is a product of the countywide per capita amount and the City's population

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Unemployment Rate

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

11.00%

11.50%

12.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Population as a % of County Population
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Personal Income (in thousands)
$20
$22
$24
$26
$28
$30
$32
$34
$36
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Per Capita Personal Income
198

CITY OF MANTECA
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Manteca Unified School District 687 1 0.7% 2,313 1 3.1% Amazon.com Services, LLC 683 2 0.7%
Gardener Trucking, Inc 520 3 0.7%
GWR Manteca, LLC. 453 3 0.5%
Doctors Hospital of Manteca 385 4 0.4% 449 4 0.6%
City of Manteca 367 5 0.5%
Kaiser Foundation Hospital 314 5 0.3% 619 2 0.8%
Wal-Mart Store #1840 307 6 0.3% 332 6 0.4%
Costco Wholesale #1031 307 6 0.3% 220 10 0.3%
Bass Pro Outdoor World 300 7 0.3%
Sunvalley Smoked Meats Inc 270 8 0.3%
Lassen Canyon Nursery 250 9 0.3% 250 7 0.3%
Eckert Cold Storage 250 9 0.3% 250 7 0.3%
Karma Inc., (DBA Manteca Care & Rehab) 217 10 0.2% 225 9 0.3% Guardian Care and Rehab Center 217 10 0.2%
Home Depot #1006 205 11 0.2%
Protech Staffing Services, Inc. 200 12 0.2%
Golden Brands - Manteca 200 12 0.2%
Advance Packaging Distribution Specialist Inc. 200 8 0.3% Harvest Crossing Post Acute 194 13 0.2%
Give Every Child a Chance 183 14 0.2%
American Modular System 180 15
Total Employees - Principal Employers 5,802 6.2% 5,745 7.8% Total City Population 93,733 73,841
Source: City of Manteca Community Development Department (Business License) (a) FY 2015-16 MUSD employees included the entire district; FY2024-25 includes only MUSD employees in the City of Manteca.
2024-25 2015-16
199

CITY OF MANTECA

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government 38.00 39.00 40.00 39.00 39.00 65.00 69.00 65.00 64.00 56.00 Public safety 147.00 152.00 151.00 159.00 159.00 162.00 158.00 165.00 165.00 172.00 Public works 35.00 36.00 41.00 44.00 44.00 30.00 27.00 62.00 58.00 60.00 Community development 16.00 21.00 24.00 25.00 25.00 19.00 20.00 20.00 27.00 22.00 Parks & recreation 34.00 36.00 37.00 38.00 38.00 36.00 35.00 32.00 41.00 38.00 Water 25.00 29.00 27.00 27.00 27.00 24.00 26.00 29.00 29.00 28.00 Wastewater 35.00 38.00 38.00 38.00 38.00 34.00 35.00 38.00 41.00 41.00 Solid Waste 37.00 36.00 37.00 37.00 37.00 36.00 38.00 40.00 41.00 48.00 Transit 2.00 2.00
Total 367.00 387.00 395.00 407.00 407.00 406.00 408.00 451.00 468.00 467.00 Source: City of Manteca Budget Document

0.00 50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FTE's
General government Public safety Public works Community development Parks & recreation Water Wastewater Transit
200
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CITY OF MANTECA

OPERATING INDICATORS AND CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020
Citizens 73,841 76,247 81,345 83,781 84,842
Date of Incorporation May 28,1918 May 28,1918 May 28,1918 May 28,1918 May 28,1918 Form of Government Council/Manager Council/Manager Council/Manager Council/Manager Council/Manager Area 20.92 Sq Miles 20.92 Sq Miles 21.45 21.45 21.45
Registered Voters 33,105 36,327 37,775 38,575 43,642
Building Permits Issued 3,418 3,565 4,312 3,653 3,740
Employees from Budget Document 3670 0 0 0
Number of Stations 44445
Number of Reserve Personnel 22 20 24 23 15
Number of Sworn Fire Personnel * 49 60 48 48 49
Number of Calls Answered 6,682 7,132 7,579 8,230 9,052
Number of Stations 11111
Number of Police Officers 65 65 67 73 73
Number of Volunteers 87 62 71 65 17 (1)
Number of Support Personnel 29 33 33 40 36
Number of Calls Answered 42,717 43,229 42,114 50,094 46,874 Park Sites 6569696970
Acres of Parks 382 382 465 465 470
Senior Centers 11111
Swimming Pools 22222
Tennis Courts 88888
Pickle Ball Court
Number of Park/Golf Trees 7,600 7,600 7,600 5,000 5,000 Number of Street Trees 18,500 18,700 18,700 12,500 12,675 Acres of Golf Course 111 111 111 111 111
Public Libraries 11111
Landscape Maintenance Districts 2929292929
Benefit Area District 44444
Community Facility Districts 9 10 12 12 16
Miles of Streets 250 259 271 271 275
Number of Street Lights 5,405 5,443 5,603 5,603 5,650
Number of Meters 21,696 22,380 22,920 23,329 24,906
Miles of Water Mains 280 298 299 299 320
Average Daily Consumptions (Gal) 9.89 MGD 10.498 MGD 10.498 MGD 11.943 MGD 13.643 MGD Number of Connections 21,325 21,951 22,529 23,094 24,411 Miles of Sewer Lines 250 257 258 258 272
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6.25 MGD 6.21 MGD 6.21 MGD 6.21 MGD 6.83 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87MGD 9.87MGD 9.87 MGD Number of Accounts 21,411 22,080 22,641 23,215 24,541
Elementary Schools 23 20 20 20 19
High Schools 55555
Alternative Schools 33332
Adult Education 1 1 1 1 1
Charter School 11111
Teachers 1,041 1,092 1,099 1,099 1,242
Elementary Classrooms 895 899 884 884 550
High School Classrooms 457 457 445 445 272
Adult Education Classrooms 3 3 3 3Not Available
Current Enrollment 23,981 23,852 23,599 23,599 24,061
Source: City of Manteca Budget Document
Manteca Fire Department Annual Report
Various Manteca Unified School District Records
City of Manteca
Note: n/a denotes information not available.
* Includes the Fire Department's Chief Officers
** Updated numbers from Muni Service Sales Tax Analysis *** New State Mandates require reserves to be as fully trained as a full-time Firefighter, making it difficult to retain individuals as reserves when they can move on to full-time firefighter employment.

Education
Public Works
Water Utility
Wastewater
Solid Waste
Population
Fire Protection
Parks & Recreation
Police Protection
202
Fiscal Year
2021 2022 2023 2024 2025
Citizens 87,319 86,859 88,803 90,917 93,733
Date of Incorporation May 28,1918 May 28,1918 May 28,1918 May 28,1918 May 28,1918 Form of Government Council/Manager Council/Manager Council/Manager Council/Manager Council/Manager Area 21.48 21.48 21.48 22.18 22.18
Registered Voters 44,829 46,145 47,957 39,652 51,549
Building Permits Issued 4,679 4,777 4,319 4,819 4,356
Employees from Budget Document 406 408 451 468 475
Number of Stations 5 5 5 5 5
Number of Reserve Personnel 5*** 5*** 12 10 22
Number of Sworn Fire Personnel 49 50 50 50 50
Number of Calls Answered 10,480 10,852 10,771 11,303 11,457 Number of Stations 1 1 1 1 1
Number of Police Officers 73 74 74 79 80
Number of Volunteers 56 61 65 67 60
Number of Support Personnel 38 39 41 44 44
Number of Calls Answered 44,791 45,274 43,497 41,552 42,747 Park Sites 71 727275 77
Acres of Parks 474 480 480 485 492
Senior Centers 1 1 1 1 1
Swimming Pools 2 2 2 2 2
Tennis Courts 8 8 8 8 8
Pickle Ball Court 11 1 1 1
Number of Park/Golf Trees 5,000 5,000 5,000 5,000 5,000 Number of Street Trees 12,500 12,550 12,550 12,550 12,550 Acres of Golf Course 111 111 111 111 111
Public Libraries 1 1 1 1 1
Landscape Maintenance Districts 29 29 29 29 29
Benefit Area District 44 4 4 4
Community Facility Districts 19 232427 30
Miles of Streets 280 290 290 309 315
Number of Street Lights 5,650 5,654 5,771 6,022 6,322
Number of Meters 26,475 28,143 28,612 33,022 34,155
Miles of Water Mains 338 345 345 359 362
Average Daily Consumptions (Gal) 12.90 MGD 13.21 MGD 12.346 MGD 13.40 MGD 13.93 MGD Number of Connections 25,730 27,120 28,612 30,012 30,000 Miles of Sewer Lines 273 276 278 295 298
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 7.30 MGD 7.50 MGD 8.1 MGD 8.35 MGD 8.26 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD Number of Accounts 25,867 27,264 28,764 30,172 28,391
Elementary Schools 15 15 15 15 15
High Schools 5 5 5 4 4
Alternative Schools 2 1 1 2 2
Adult Education 0 1 1 1 1
Charter School 0 0 0 0 0
Teachers 707 751 730 670 687
Elementary Classrooms 593 549 557 842 614
High School Classrooms 331 352 353 353 279
Adult Education Classrooms 21 21 21 21 21
Current Enrollment 15,458 15,604 15,935 16,376 17,064
Source: City of Manteca Budget Document
Manteca Fire Department Annual Report
Various Manteca Unified School District Records
City of Manteca
Note: n/a denotes information not available.
* Includes the Fire Department's Chief Officers
** Updated numbers from Muni Service Sales Tax Analysis *** New State Mandates require reserves to be as fully trained as a full-time Firefighter, making it difficult to retain individuals as reserves when they can move on to full-time firefighter employment.

Education
Solid Waste
Wastewater
Water Utility
Public Works
Police Protection
Parks & Recreation
Population
Fire Protection
203
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MANTECA FINANCING AUTHORITY

BASIC COMPONENT UNIT

FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the
Board of Directors of the Manteca Financing Authority
Manteca, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the 2009 Sewer Revenue Bonds Fund (Fund) of the Manteca Financing Authority (Authority), a component unit of the City of Manteca (City), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the 2009 Sewer Revenue Bonds Fund of the Authority, as of June 30, 2025, and the change in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the 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 Authority’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. 207
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 opinion. 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 Authority’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’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 management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinion on the basic financial statements is not affected by this missing information. 208
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 13, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
January 13, 2026
209
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MANTECA FINANCING AUTHORITY

STATEMENT OF NET POSITION AND

STATEMENT OF REVENUES AND

CHANGES IN NET POSITION
The purpose of The Statement of Net Position and the Statement of Revenues and Changes in Net Position is to summarize the entire Authority’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the Authority’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses.

The Statement of Net Position reports the difference between the Authority’s total assets and deferred outflows of resources and the Authority’s total liabilities and deferred inflows of resources, including all the Authority’s long-term debt. The Statement of Net Position summarizes the financial position of all the Authority’s activities in a single column.

The Statement of Revenues, Expenses, and Changes in Net Position reports increases and decreases in the Authority’s net position. It is also prepared on the full accrual basis, which means it includes all the Authority’s revenues and all its expenses, regardless of when cash changes hands. 211

MANTECA FINANCING AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2025
2009
Sewer
Revenue Bonds
ASSETS
Current Assets:

Investments held by trustee (Note 2) $2,106,018
Interest receivable 85,955
Total Current Assets 2,191,973
Receivable from the City of Manteca (Note 3) 16,333,982 Total Assets 18,525,955

LIABILITIES
Current Liabilities:

Accrued interest payable 85,955
Lease revenue bonds payable (Note 4):

Due in less than one year 640,000
Total Current Liabilities 725,955
Non-Current Liabilities:

Lease revenue bonds payable (Note 4):

Due in more than one year 17,800,000
Total Liabilities 18,525,955

NET POSITION
Restricted for Debt Service
Total Net Position
See accompanying notes to financial statements
212

MANTECA FINANCING AUTHORITY

STATEMENT OF REVENUES,

EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
2009
Sewer
Revenue Bonds

OPERATING REVENUE
Interest on base rental payments $944,007
Total Operating Revenue 944,007

OPERATING EXPENSES
Interest and fiscal fees 1,042,999
Total Operating Expenses 1,042,999
Operating Loss (98,992)

NONOPERATING INCOME
Interest on investments 98,992
Net Nonoperating Income 98,992
Change in net position
Net position at beginning of year
Net position at end of year
See accompanying notes to financial statements
213

MANTECA FINANCING AUTHORITY

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
2009
Sewer
Revenue Bonds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from the City $1,605,113
Payments to bond trustees (1,045,274)
Cash Flows from Operating Activities 559,839

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Long-term debt payment - principal (560,000)
Cash Flows from Operating Activities (560,000)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment interest received 98,992
Cash Flows from Investing Activities 98,992
Net Cash Flows 98,831
Cash and investments at beginning of period 2,007,187
Cash and investments at end of period $2,106,018
Reconciliation of operating loss to net cash flows
from operating activities:

Operating loss ($98,992)
Change in assets:

Receivables, net 658,831
Cash Flows from Operating Activities $559,839
See accompanying notes to financial statements
214

MANTECA FINANCING AUTHORITY

NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization and Purpose
The Manteca Financing Authority (Authority) is a Joint Powers Authority organized by the City of Manteca (City) and the Manteca Redevelopment Agency (Agency) on May 1, 1991 under the laws of the State of California. The Authority was organized to provide assistance to the City and Agency in financing public improvements for the benefit of the residents of the City and surrounding areas.

Administrative and related normal business expenses incurred in the day-to-day operations of the Authority are provided by the City and are not included in the accompanying financial statements.

Such expenses are insignificant to the Authority’s operations.

The Authority is an integral part of the City and the accompanying financial statements are included as a component of the basic financial statements prepared by the City. A component unit is a separate governmental unit, agency, or nonprofit corporation which, when combined with all other component units, constitutes the reporting entity as defined in the City’s basic financial statements.

B. Basis of Presentation
The Authority’s Basic Component Unit Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.

These Standards require that the financial statements described below be presented.

Fund Financial Statements: The fund financial statements provide information about the Authority's funds. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. The Authority considers its only fund to be a major fund.

C. Basis of Accounting
The Authority accounts for all transactions in a single enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of the private sector in which the purpose is to conserve and add to economic resources.

Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.

The 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 liabilities are incurred, regardless of when the related cash flows take place.

D. Major Fund
The Authority’s only fund is required to be identified as a major fund and presented in the fund financial statements. Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenses equal to ten percent of their fund-type total and five percent of the grand total. 215

MANTECA FINANCING AUTHORITY

NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Authority reported its only fund, the 2009 Sewer Revenue Bonds Enterprise Fund, as a major enterprise fund in the accompanying financial statements, and the fund is used to account for Bond transactions.

E. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

F. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 - INVESTMENTS HELD BY TRUSTEE
The Authority invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.

The Authority’s investments are carried at fair value, as required by generally accepted accounting principles. The Authority 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.

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MANTECA FINANCING AUTHORITY

NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 - INVESTMENTS HELD BY TRUSTEE (Continued)
A. Investments Authorized by Debt Agreements
In accordance with the Lease Revenue Bond Indenture of Trust, a Trustee holds the portion of Bond proceeds established as reserves for debt service on these Bonds. The California Government Code requires these funds to be invested in accordance with bond indentures or State statutes. The table below identifies the investment types and their minimum credit ratings that are authorized for investments held by trustee and certain provisions of the debt agreement. The bond indenture contains 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.

Minimum
Maximum Credit
Authorized Investment Type Maturity Quality
United States Treasury Bill, Bonds, Notes 5 years N/A
United States Government Agency Obligations 5 years N/A Bankers' Acceptances 30 days to 1 year A-1
Commercial Paper 270 days to 1 year A-1
Certificates of Deposit 30 days to 5 years None to A
Repurchase Agreements None to 30 days A-1
Local Agency Investment Fund n/a Not rated
Money Market Funds n/a AA-m
Investment Agreements None None to AA
State and Municipal Bonds, Notes None Two Highest Categories B. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the Authority’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity:
12 Months
Investment Type or Less
Held by Trustees:

Money Market Funds (U.S. Securities) $2,106,018
C. 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 rating as of June 30, 2025, for the Money Market Funds was AAAm as provided by Standard & Poor’s investment rating system. Money market funds are available for withdrawal on demand and at June 30, 2025, have an average maturity of 1 day. 217

MANTECA FINANCING AUTHORITY

NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 - INVESTMENTS HELD BY TRUSTEE (Continued)
D. Fair Value Hierarchy
The Authority categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Authority’s money market funds are measured at amortized cost as of June 30, 2025.

NOTE 3 - RECEIVABLE FROM THE CITY OF MANTECA
The Authority used the proceeds from its Bond issues to finance capital improvements throughout the City. The City leases these improvements from the Authority under the terms of the lease agreement that expires in 2037.

Anticipated receipts of the base rental payments, net of cash and investments held by trustee, capitalized interest proceeds and interest expense net of anticipated interest earned on the investments, are as follows:

Year ending
June 30 Principal Interest Total
2026 $640,000 $1,009,476 $1,649,476
2027 720,000 975,476 1,695,476
2028 810,000 936,720 1,746,720
2029 905,000 892,208 1,797,208
2030 955,000 842,786 1,797,786
2031-2035 7,535,000 3,273,201 10,808,201
2036-2037 6,875,000 388,945 7,263,945
$18,440,000 $8,318,812 26,758,812
Less:

Investments held by trustee 2,106,018
Amount representing interest 8,318,812
Receivable from the City of Manteca June 30, 2025 $16,333,982 218

MANTECA FINANCING AUTHORITY

NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 - LONG TERM DEBT
On May 27, 2009 the Authority issued the Sewer Revenue Bonds Series 2009 in the amount of $19,000,000 to finance the City’s expansion and upgrade of its Wastewater Quality Control Facility.

The 2009 Revenue Bonds are secured by installment payments payable by the City of Manteca under the Installment Sales Agreement dated December 1, 2003, as amended by Amendment 1 dated June 1, 2009. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s sewer system.

On July 5, 2023, Moody’s Investors Service withdrew the City’s issuer rating and also withdrew it’s rating of the 2009 Revenue Bonds, due to the City’s delay in issuing the audited financial statements.

In addition, Fitch Ratings withdrew its AA- rating for the 2009 Revenue Bonds for the same reason.

Annual debt service requirements are shown below for the long-term debt:

Year Principal Interest Total
2026 $640,000 $1,015,462 $1,655,462
2027 720,000 981,462 1,701,462
2028 810,000 942,706 1,752,706
2029 905,000 898,194 1,803,194
2030 955,000 848,772 1,803,772
2031-2035 7,535,000 3,303,131 10,838,131
2036-2037 6,875,000 400,917 7,275,917
Total $18,440,000 $8,390,644 $26,830,644
NOTE 5 - SUBSEQUENT EVENT
2025 Wastewater Revenue Bonds
On November 5, 2025, the Manteca Financing Authority issued the 2025 Wastewater Revenue Bonds in the amount of $46,795,000 to refinance the Manteca Financing Authority Sewer Revenue Bonds, Series 2009 and the Sewer Revenue Refunding Bonds Series 2012 and to finance certain improvements to the wastewater system. The 2025 Revenue Bonds are secured by installment payments payable by the City of Manteca under the Installment Sales Agreement dated November 1, 2025. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s wastewater system.

Principal payments are due annually on December 1, with interest payments payable semi-annually on December 1 and June 1 through December 1, 2045.
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