Agenda — Maricopa City Council, February 24, 2026

Maricopa City Council Agenda
Tuesday, February 24, 2026
6:00 PM
Location: Gusher Hall, 271 California Street, Maricopa, CA 93252 Also available through Zoom Video Conferencing:
https://zoom/us.join Meeting ID:862 3843 4772 Passcode: 034332 I. Call to Order and Pledge of Allegiance
II. Roll Call
Mayor Cory Morse City Administrator Eric Ziegler
Mayor Pro Tem Virgil Bell City Attorney Alan Peake
Council Member Crystal Harris City Treasurer Dorine Horn Council Member John Horn City Clerk Meghan Wilson
Council Member James Owens
III. Community Recognition
IV. Reorder of Agenda
V. Council Reports/Statements
a. Report by Public Safety/Sheriff Department/Fire Department b. City Clerk Meghan Wilson
c. City Treasurer Dorine Horn
• City Administrator Eric Ziegler
e. City Attorney Alan Peake
f. City Council Members
g. Mayor Cory Morse
VI. Public Hearings
VII. Public Commentary
Persons wishing to address the council on items within its jurisdiction, but not on this agenda, may do so now. Any items presented to the council at this time will not be acted upon.

Please note: State law allows the City Council to briefly respond to questions on items raised by the public which are not on the agenda Govt. Code Section 549.54.2(a) Alternatively, the Council may choose to direct staff to provide information at the following meeting. Any member of the public may comment on any matter within the jurisdiction of the city that is not on this agenda. Those wishing to comment should be recognized by the mayor and approach the podium.

Please complete a Speaker's Form and submit it to the City Clerk prior to the start of the meeting to be acknowledged as a speaker.

VIll. Approval of Minutes
a. Approve Maricopa City Council Regular Agenda Minutes for February 10, 2026 IX. Consent Calendar
Approve payment of current warrants for February
X. Agendized Items
a. Review/Discuss/Accept City of Maricopa financial audit for fiscal Year Ending June 30, 2025 Recommendation:

Motion to Accept City of Maricopa Financial Audit for Fiscal Year Ending June 30, 2025.
b. Accept City of Maricopa TDA audit for Fiscal Year Ending June 30, 2024 Recommendation:

Motion to Accept City of Maricopa TDA Audit for Fiscal Year Ending June 30, 2024. c. Discussion/Direction/Action re Payment of Bills/Signing Checks Recommendation:

None
d. Notification in Event of Absence
Recommendation:

None
XI. New Business
XII. Closed Session
XIII. Come into Open Session
XIV: Council/Staff Items
XV: Adjourn
I certify that a copy of this agenda was posted at Maricopa City Hall, Gusher Hall, and Maricopa Post Office on February 19, 2026.

Meghan Wilson, City Clerk
Maricopa City Council Minutes
Tuesday, February 10th, 2026
Location: Gusher Hall
271 California Street, Maricopa, CA 93252
I. Call to Order and Pledge of Allegiance
Mayor Morse called the meeting to order at 6:00 P.M., followed by the flag salute.

II. Roll Call
Mayor Cory Morse - Present
Mayor Pro Tem Virgil Bell - Present
Council Member John Horn - Present
Council Member Crystal Harris - Present
Council Member James Owens - Present
City Administrator Eric Ziegler - Present
City Attorney Alan Peake - Present
City Treasurer Dorine Horn - Present
City Clerk Meghan Wilson - Present
III. Community Recognition
None.

IV. Reorder of Agenda
None.

V. Council Reports/Statements
Report by Public Safety/Sheriff Department/Fire Department Stats were submitted and read aloud for the period 01/21/26 - 02/10/26. Council member Owens reported irresponsible driving occurring on Busch Street, particularly on the weekends. Council member Bell b. City Clerk Meghan Wilson - None.
c. City Treasurer Dorine Horn - None.
d. City Administrator Eric Ziegler - None.
e. City Attorney Alan Peake - None.
f. City Council Members - Council member Bell asked about code enforcement working on the old Jolly Cone building and whether demolition is being considered due to tagging, intentional fires, etc.
g. Mayor Cory Morse - None.

VI. Public Hearings
None.

VII. Public Commentary
None.

VIII. Approval of Minutes
a. Approve Special Meeting Minutes for January 8t, 2026 Motion by Bell, 2nd by Horn.

Ayes: Harris, Bell, Horn
Noes: 0

Absent: 0
Abstain: Owens, Morse
Item a. approved.
b. Approve Maricopa City Council Regular Agenda Minutes for January 13, 2026 Motion by Horn, 2"° by Harris.

Ayes: Harris, Bell, Horn,
Noes: 0

Absent: Owens, Morse
Abstain: 0
Item b. approved.
c. Approve Maricopa City Council Regular Agenda Minutes for January 27', 2026 Motion by Harris, 2d by Horn.

Ayes: Harris, Owens, Horn
Noes: 0

Absent: 0
Abstain: Bell, Morse
Item c. approved.

IX. Consent Calendar
None.
x. Agendized Items
a. Adopt Resolution Entitled Resolution of the City Council of the City of Maricopa Amending Certain Personnel Policies and Procedures Governing Employees of the City of Maricopa by Adding a Policy on Bereavement Leave
Motion to adopt by Harris, 2d by Morse.

Ayes: Harris, Bell, Owens, Horn Morse
Noes: Bell, Owens

Absent: 0
Abstain: Horn
Motion has not passed.

Motion to modify policy by changing 3 days of paid time off to 1 day of paid time off by Bell, 2nd by Owens.

Ayes: Bell, Owens, Morse
Noes: Harris

Absent: 0
Abstain: Horn
Motion has passed.

Motion to adopt modified version of policy by Owens, 2nd by Bell.

Ayes: Bell, Owens, Morse
Noes: Harris

Absent: 0
Abstain: Horn
Motion passed
b. A Proclamation of the City of Maricopa Proclaiming February 2026 as Safely Surrendered Baby Awareness Month in the City of Maricopa Motion to proclaim by Bell, 2d by Owens.

Ayes: Harris, Bell, Owens, Horn Morse
Noes: 0

Absent: 0
Abstain:

Motion passed.
c. Discussion/Direction/Action re Elected Official Absences and Related Matters Council discussed unknown absences of council members and agreed on making some form of contact with the city administrator if the situation every arises in the future. d. Adopt Ordinance Entitled an Ordinance of the City Council, Of the City of Maricopa, Amending 17.10.90 of the City of Maricopa Municipal Code (Zoning Code) Related to Fences and Walls.

Motion by Ownes, 2"d Bell.

Ayes: Harris, Bell, Owens, Horn, Morse
Noes: 0

Absent: 0
Abstain: 0
Motion passed.

XI. New Business
None.

XII. Closed Session
None.

XIII. Come into Open Session
Not Applicable.

XIV: Council/Staff Items
• Councilmember Horn inquired about the status of the camera installation project and requested a specific installation date, noting that the equipment has already been paid for. • Councilmember Owens asked for clarification regarding the Fire Department's absence at the meeting.

Mayor Morse proposed an alternative procedure for check signing, suggesting that checks be presented to the Council for review prior to being signed.

XV: Adjourn
Motion to end the meeting by Bell, 2d by Owens.

Ayes: Harris, Bell, Owens, Horn, Morse
Noes: 0

Absent: 0
Abstain: 0
The meeting is adjourned at 6:57 PM.

I certify that a copy of this agenda was posted at Maricopa City Hall, Gusher Hall, and Maricopa Post Office on February 6, 2026.

Meghan A. Wilson, City Clerk
City of Maricopa PAGE: 001
l'hursday
Time: 14:21 Cash Disbursement Detail Report ID #: PY-DP Check Listing for 02-26 Bank Account.: 10000 CTL. : MAR Check Check Vendor Gross Discount Net --Payment Information- Amount Amount Amount Invoice Description
Number Date Number Name
-__-
ELECTRICAL ASAP 4100.00 .00 4100.00 C60205 SEWER PONDS-REPAIR AERATO 024266 02/05/26 ELE02
024267 02/05/26 HYD01 HYDRA TECH NETWORK SOLUTI 385.00 .00 385.00 C60205 #10367,1/21/26, SET UP & C 024268 02/05/26 KER07 KERN COUNTY FIRE DEPT. 2477.92 .00 2477.92 C60205 FIRE PROTECTION, 2025-2026 024269 02/05/26 WAL02 WALL, WALL, & PEAKE 3539.50 .00 3539.50 C60205 LEGAL-INVESTIGATION,S.K.N 024270 02/05/26 PGE01 PG&- CEM/PPPC DEPARTMENT 3311.91 . 00 3311.91 C60205 PG&E - JANUARY 2026 024271 02/10/26 WES03 WESTSIDE WASTE MANAGEMENT 22.60 .00 22.60 C60210 REFUSE/EXTRA SERVICE, #844 8118.00 .00 8118.00 C60211 REFUSE/CITY TRASH PICK UP
Check Total..........: 8140.60 . 00 8140.60
024272 02/10/26 BRA03 BRANDON DILLINGHAM MECHAN 2292.04 .00 2292.04 C60210 SEWER/LIFT STATION, #9037, 024273 02/17/26 BHT01 BHT ENGINEERING, INC. 465.00 .00 465.00 C60217 CLEAN CA-#CCL-5201-001/PA -465.00 .00 -465.00 C60217u Ck# 024273 Reversed
179.00 . 00 179.00 C60217y Ck# 024273->024279 Repla
465.00 .00 465.00 C60218 PARK PROJ. GRANT, #SW-15-00
-465.00 .00 -465.00 C60218u Ck# 024273 Reversed

60.00 .00 60.00 C60219 ENG. BILLING-ADMIN, MA 26-0
-60.00 . 00 -60.00 C60219u Ck# 024273 Reversed
Check Total..........: 179.00 .00 179.00
024274 02/17/26 BRI01 CHARTER COMMUNICATIONS 141.16 . 00 141.16 C60217 RING CENTRAL/CITY HALL, FE -141.10 .00 -141.16 C60217u Ck# 024274 Reversed
465.00 .00 465.00 C60217y Ck# 024274->024273 Repla
110.00 .00 110.00 C60218 INTERNET/GUSHER HALL, FEB.
.00 -110.00 C60218u Ck# 024274 Reversed
- 165.00 C60218y
.00 465.00 Ck# 024274->024273 Repla
420.95 .00 420.95 C60219 PHONE, INTERNET, WIFI, EMAIL
-420.95 .00 -420.95 C60219u Ck# 024274 Reversed

60.00 . 00 60.00 C60219y Ck# 024274->024273 Repla

29. 9 .00 129.99 C60220 INTERNET/PUBLIC WORKS, FEB
129.0 .00 -129.99 C60220u Ck# 024274 Reversed
Check Total.. 990000 .00 990.00
024275 02/17/26 BRO01 BROWN & REICH 740.4 .00 740.44 C60217 FUEL-PUB. WORKS YARD, 1/21/ 740.44 . 00 -740.44 C60217u Ck# 024275 Reversed
141.16 .00 141.16 C60217y Ck# 024275->024274 Repla
110.00 .00 110.00 C60218y Ck# 024275->024274 Repla
120.9 .00 420.95 C60219y Ck# 024275->024274 Repla

29.90 . 00 129.99 C60220y Ck# 024275->024274 Repla
Check Total.. 802.10 .00 802.10
024276 02/17/26 CIT02 CITY OF TAFT 2295.00 .00 2295.00 C60217 TRANSIT, #11009, DECEMBER 2 -2295.00 .00 -2295.00 C60217u Ck# 024276 Reversed
740.44 .00 740.44 C60217y Ck# 024276->024275 Repla
Check Total......: 740.44 . 00 740.44
024277 02/17/26 DAI01 TAFT MIDNAY DRILLER 84.00 .00 84.00 C60217 AD/NOTICE PUB. HR-UNMET TR -84.00 . 00 -84.00 C60217u Ck# 024277 Reversed
2295.00 . 00 2295.00 C60217y Ck# 024277->024276 Repla
Check Total. 2295.00 .00 2295.00
024278 02/17/26 HOM01 HOME DEPOT 58.44 58.44 C60217 EQUIP. MAINT-RIDING MOWER -58.44 888 -58.44 C60217u Ck# 024278 Reversed

84.00 84.00 C60217y Ck# 024278->024277 Repla
---
Check Total.....: 84.00 34.00
024279 02/17/26 IES01 IES-INTERACTIVE EDUCATION 179.00 179.00 C60217 WEBSITE W/UPDATING, 189556 -179.00 888 -179.00 C60217u Ck# 024279 Reversed

58.44 58.44 (60217y Ck# 024279->024278 Repla
Check Total....: 58.44 58.44
024280 02/17/26 ELE02 ELECTRICAL ASAP 580.00 .00 580.00 C60217 SEWER/LIFT STATION, #2294, 024281 02/17/26 PACO1 PACE ANALYTICAL SERVICES, 325.00 .00 325.00 C60217 SEWER/WATER TEST, #2627B53 024282 02/18/26 PET01 PETTY CASH 300.00 .00. 300.00 C60218 REFILL PETTY CASH 024283 02/19/26 AMC01 AM CONSULTING ENGINEERS, 2130.00 88 130. C6021 CDBG SEWR#C-06-8206-210, E 1450.00 150. C6021 CDBG SEWR#C-069-8206-210,
Check Total...: 3580.00 3580.00
024284 02/19/26 AME03 AMERITAS LIFE INSURANCE C 442.16 -00 442.16 C60218 DENTAL INS.#010-58874-000 City of Maricopa PAGE: 002
Cash Disbursement Detail Report ID # : PY-DP
Check Listing for 02-26 Bank Account.: 10000 CTL.: MAR
Check Check Vendor Gross Discount Net ice Paymese Intormation- Number Date Number Name Amount Amount Amount Invoice #
---- ----- -----
024285 02/19/26 BRY01 BRYANT L. JOLLEY CPA 23000.00 •00 23000.00 C60218 LEGAL - AUDIT, 2024-2025 024286 02/19/26 CIT02 CITY OF TAFT 75.00 .00 75.00 C60218 ANIMAL SHEITER-#11005, JAN 024287 02/19/26 KAI01 KAISER FOUNDATION 4310.99 .00 4310.99 C60218 HEALTH INS. -ID#0003348412 024288 02/19/26 LCC01 LCC SOUTH SAN JOAQUIN VAL 23.78 .00 23.78 C60218 2026 MEMBERSHIP DUBS, #825 024289 02/19/26 LOV01 LOVE'S BACKFLOW SERVICE 1034.90 •00 1034.90 C60218 BACKELOW TEST, INV. #4396, ' 024290 02/19/26 TRU01 TRUE VALUE 199.98 •00 199.98 C60218 JAN. 2026/SHOP-SCRAPER: GUS 024291 02/19/26 PGE01 PG&- CFM/PPPC DEPARTMENT 1172.34 .00 1172.34 C60219 SEWER/PONDS-#9157090827-6 Cash Account Total.. 64440.10 . 00 64440.10
Total Disbursements.. 64440.10 .00 64440.10

AGENDA ITEM
TITLE: Review/Discuss/Accept City of Maricopa financial audit for fiscal Year Ending June 30, 2025 PROPOSED BY: Eric G. Ziegler
MEETING DATE: February 24, 2026

RECOMMENDATION
Motion to Accept City of Maricopa Financial Audit for Fiscal Year Ending June 30, 2025.

BACKGROUND
Attached hereto is the city's annual financial audit for fiscal year 2024 - 2025 ending June 30, 2025.

Staff will review the audit document with Council and respond to questions, if any after which it is appropriate for council to favorably consider a motion to accept City of Maricopa Financial Audit for Fiscal Year Ending June 30, City Adm.

Approval FISCAL IMPACT:
$
[No I]
Eric G. Ziegler Funds Budgeted: Yes Amount Required
Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance

CITY OF MARICOPA

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2025

TABLE OF

CONTENTS
Page
Required Communications 1 - 3
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Ryan P. Jolley C.P.A
Darryl L. Smith C.P.A
Luis A. Perez C.P.A
Lan T. Kimoto
To the Honorable Mayor and City Council
City of Maricopa, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Maricopa for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 8, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements was:

Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.

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

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 16, 2026.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City of Maricopa's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Maricopa's auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
2 We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

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

CITY OF MARICOPA

INDEPENDENT AUDITOR'S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2025

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR'S REPORT 1-3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet and Reconciliation of the Balance Sheet
to the Statement of Net Position - Governmental Funds 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Governmental Funds Reconciliation of Statement of Revenue, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 8
Statement of Net Position - Proprietary Funds 9
Statement of Revenue, Expense and Changes in Fund Net
Position - Proprietary Funds 10
Statement of Cash Flow - Proprietary Funds 11
Notes to the Basic Financial Statements 12-26
Required Supplementary Information
Budgetary Comparison Schedule - General Fund 27
Budgetary Comparison Schedule - Public Safety Special Revenue Fund Budgetary Comparison Schedule - Gas Tax Special Revenue Fund 29 Supplemental Only Information
Combining Balance Sheet - Nonmajor
Special Revenue Funds 30
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance - Nonmajor
Special Revenue Funds 31

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 32-33
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Ryan P. Jolley C.P.A
Darryl L. Smith C.P.A
Luis A. Perez C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council
City of Maricopa, 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 Maricopa, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Maricopa, California's basic financial statements as listed in the table of contents.

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

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

Responsibilities of Management for the Financial Statements of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Maricopa, California'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. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 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 of Maricopa, California'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 of Maricopa, California'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.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 27 - 29 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 of Maricopa, California's basic financial statements. The accompanying combining and individual nonmajor fund financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 16, 2026, on our consideration of the City of Maricopa, California'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 anc compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Maricopa, California's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Maricopa, California's internal control over financial reporting and compliance.

CITY OF MARICOPA

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 1,676,773 $ 271,021 $ 1,947,794
Due from other governmental agencies 205,354 15,555 220,909 Capital assets (net of allowance
for depreciation) 1,468,390 2,192,389 3,660,779
Total assets 3,350,517 2,478,965 5,829,482

LIABILITIES
Accounts payable and accrued expenses 27,577 8,876 36,453 Total liabilities 27,577 8,876 36,453

NET POSITION
Net investment in capital assets 1,468,390 2,192,389 3,660,779 Restricted for specific projects and programs 912,421 912,421 942,129 277,700 1,219,829
Unrestricted
Total net position $ 3,322,940 $ 2,470,089 $ 5,793,029
See accompanying notes.

CITY OF MARICOPA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
Net Revenue/(Expense) and Changes in Net Position
Program Revenue Primary Government
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government 323,289 $ - $ - $ (323,289) $ (323,289) Public works and community development 179,662 18,258 137,120 107,051 82,767 82,767 Parks and recreation 81.558 794,631 713,073 713.073
Public safety 211.540 1,434 194,663 (15.443) (15,443)
Total governmental activities 796.049 19.692 331.783 901.682 457.108 457.108 Business-type activities
Sewer 199.652 154.942 29,717 (14,993) (14,993)
Refuse 138.309 138.831 13.582 14.104 14,104
Total business-type activities 337.961 293.773 13.582 29.717 (889) 889) Total primary government 1,134,010 313.465 345,365 931,399 457,108 (889) 456.219 General Revenues
Property taxes 266,569 266.569
Sales taxes 45,799 45,799
Lodging taxes 14,906 14.906
Franchise taxes 35.122 35,122
Business licenses 2,260 2,260
Interest 72,348 72,348
Other 26.976 26.976
Total general revenue 463.980 463.980
Change in Net Position 921,088 (889) 920,199
Net Position
Beginning of year 2,401,852 2.470,978 4,872.830
End of year 3.322.940 2,470.089 5,793.029
See accompanying notes.

CITY OF MARICOPA

BALANCE SHEET AND RECONCILIATION TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS JUNE 30, 2025
Special Revenue Funds
Other Total
Public LTF Gas Governmental Governmental
General Safety Transit Tax Grants Funds Funds
ASSETS
Cash and investments 835,230 $ 286,227 S 10,035 $ 246,058 $ 22,354 $ 276,869 1,676,773 Due from other governmental agencies 34,528 88,033 2,743 75,116 4,934 205,354 Due from other funds 76,668 76,668
946,426 286.277 93,068 248,801 97,470 281,803 1,958,795

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and acerued expenses $ - S 5,160 $ - S 18,120 $ - S 27,577 Due to other funds 76,668 76.668
Total liabilities 4.297 81,828 18,120
104,245
Fund Balance
Restricted for circulation improvements 16,240 248,801 79,350 281,803 626.194 Restricted for public safety 286,227
286,227
Unassigned 942,129 942,129
Total fund balance 942.129 286.227 248.801 79.350
281.803 1.854.550
Total liabilities and fund balance 946.426 286.227 98,068 248,801 $ 97,470 $ 281,803 1,958,795 Total Governmental Fund Balances 1,854,550
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds 11468.390 Net position of governmental activities 3,322,940
See accompanying notes.

CITY OF MARICOPA

STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2025
Special Revenue Funds Other Total
Public LTF Gas Governmental Governmental
General Safety Transit Tax Grants Funds Funds
Revenue
362,396 $ - $ 933,979 - S
1,434 194,663 43,695 33,129$ 27,999
20,518
Interest 72,348
Other 26,976
Total revenue 483,672 194,663 43,695 33.129 933,979 27,999 Expenditures
Current
General government 321,446 321,446
Public works and community development 37,642 48,575 18.350 73,169 177,736 Parks and recreation 76,204 76,204
Public safety 59,049 152,298
211,347
Capital outlay 864,681
Total expenditures 494,341 152,298 48,575 18.350 937,850 1,651,414
Revenue over/(under) expenditures (10,669) 42,365 (4,880) 14,779 (3,871) 27,999 65,723 Other Financing Sources/(Uses)
Transfers in/(out) - net (17,360) 7,904 9.456
Total other financing sources (uses) (17,360) 7,904 " ' 9.456 Change in Fund Balance (28,029) 42,365 3,024 14,779 5,585 27,999 65,723 Fund Balance
Beginning of year 970,158 243.862 234,022 1,788,827
End of year 942,129 286.227 16,240 248,801 $ 73-350 251.800 1,854,550 See accompanying notes.

CITY OF MARICOPA

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025
Net change in fund balance - total governmental funds $ 65,723 Amounts reported for governmental activities in the statement of activities are different because:

Depreciation expense on capital assets is reported in the Statement of Activities, but they do not require the use of current financial resources.

Therefore, depreciation expense is not recorded as expenditures in the governmental funds (9,316)
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital outlay in the current period. 864,681
Change in net position of governmental activities $ 921,088 See accompanying notes.

CITY OF MARICOPA

STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30, 2025
Business-Type Activities - Enterprise Funds
-
Total
Business-Type
- Sewer Refuse Funds
ASSETS
Current assets
Cash and investments $ $ 271,021 $ 271,021
Due from other governmental agencies 15,555 15,555
Due from other funds 60,094 60,094
Total current assets 15,555 331,115 346,670
Non-current assets
Property, plant and equipment
(net of allowance for depreciation) 2,192,389 2,192,389 Total noncurrent assets 2,192,389 2,192,389
2,207,944 331,115. 2,539,059
Total assets

LIABILITIES
Current liabilities
Accounts payable and accrued expenses 736 8,140 8,876
Due to other funds 60,094 60,094
60,830 8,140 68,970
Total current liabilities

NET POSITION
Net investment in capital assets 2,192,389 2,192,389
Unrestricted/(deficit) (45,275) 322,975 277,700
Total net position 2,147,114 $ 322,975 $ 2,470,089
See accompanying notes. 9

CITY OF MARICOPA

STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION -

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
Business-Type Activities - Enterprise Funds
Total
Business-Type
Sewer Refuse Funds
Operating Revenue
Charges for services 154,942 $ 138,831 $ 293,773
Total operating revenue 154,942 138,831 293,773
Operating Expense
Contractual services and utilities 65,291 105,301 170,592 Personnel 27,570 24,884 52,454
Supplies, repairs and other 44,937 8,124 53,061
Depreciation expense 61,854 61,854
199,652 138,309 337,961
Total operating expense
Operating income/(loss) (44,710) 522 (44,188)
Nonoperating Revenue/(Expense)
Grant income 13,582 13,582
Total nonoperating revenue/(expense) 13,582 13,582
Income/(Loss) before Contributions
and Transfers (44,710) 14,104 (30,606)
Capital Contributions 29,717 29,717
(14,993) 14,104 (889)
Net Income/(Loss)
Net Position
Beginning of year 2,162,107 308,871 2,470,978
2,147,114 322,975 2,470,089
End of year
See accompanying notes.

CITY OF MARICOPA

STATEMENT OF CASH FLOW - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
Business-Type Activities - Enterprise Funds
Total
Business-Type
Sewer Refuse Funds
Operating Activities
Receipts from customers and users $ 154,942 $ 138,831 $ 293,773 Payments for contractual services and utilities (141,201) (105,301) (246,502) Payments to employees (27,570) (24,884) (52,454)
Payments to suppliers (44,937) (44,921)
Net cash provided by (used in)
operating activities (58,766) 8,662 (50,104)
Non-capital Financial Activities
Grants received 13,582 13,582
Payments (to)/from other funds 1,885. (4,885)
Net cash provided by (used in)
noncapital financing activities 4,885 8,697 13,582
Capital and Related Financing Activities
Capital grants 27,530 : 27,530
Purchase of property, plant and equipment (29,625) (29,625) Net cash provided by (used in) capital and related
financing activities (2,095) (2,095)
Net Increase (Decrease) in Cash (55,976) 17,359 (38,617) Cash
Beginning of year 55,976 253,662 309,638
End of year $ 271,021 $ 271,021
Cash Flows from Operating Activities
Operating income (loss) $ (44,710) $ 522 $ (44,188)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation expense 61,854 - 61,854
Increase (Decrease) in Accounts Payable
and Accrued Expenses (75,910) 8,140 (67,770)
Net Cash Provided by (Used in) Operating Activities $ (58,766) $ 8,662 (50,104) See accompanying notes.

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Maricopa (the City have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Reporting Entity
The City of Maricopa, State of California (the "City"), was incorporated in 1911. The City operates under a Council-Manager form of government. The City's major operations include public safety; highways and streets; sewer and refuse; parks and recreation; building inspection; public improvements; planning and zoning, and general administrative services.

Basis of Presentation - Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities and Changes in Net Position) report information of all of the nonfiduciary activities of the primary government. For the most part, eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities and Changes in Net Position 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 are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Net position are restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City's policy to use restricted resources first, then unrestricted resources as they are Governmental Fund Financial Statements - The Governmental Fund Financial Statements provide information about the City's funds. Separate statements for each fund category - governmental and proprietary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.
12 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies (Continued) Proprietary 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. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.

Public Safety Fund - The Public Safety Fund is used to account for State funds which are expended to enhance law enforcement services.

LTF and Transit Fund - The LTF and Transit Fund is used to account funds which are expended for street improvements.

Gas Tax Fund - The Gas Tax Fund is used to account funds which are expended for street improvements.

Grants Fund - The Grants Fund is used to account funds which are expended according to specific grant guidelines.

Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the 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. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place.

Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

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. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and 13 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies (Continued) Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund's principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Investments - Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.

The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund. Investments are recorded at amortized cost or fair value. Fair value is based upon quoted market prices.

Accounts Receivable - Billed but unpaid services provided to individuals or non-governmental entities are recorded as accounts receivable.

Kern County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is March 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the March 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.

Interfund Receivables/Payables - Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds - This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.
14 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies (Continued) Capital Assets - Capital outlays are recorded as expenditures of the General and Special Revenue Funds and as assets in the Government-Wide Financial Statements to the extent the City's capitalization threshold is met.

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidemans in th Giovitares)ide Financied athens. Cable gaserate delic d by the gope activitias assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Years
Buildings, structures and improvements 40
Infrastructure 40
Equipment 5
Compensated Absences - It is the City's policy to permit all employees to accumulate earned but unused vacation and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits. Employees are considered vested after they have completed one year of service, although vacation hours begin to accumulate at hire date. Part time employees will not vest.

Vested or accumulated vacation, holiday and any compensation time that is expected to be paid with expendable available financial resources is reported as an expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements. 15 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies (Continued) Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accrue.

Sick leave can be accumulated, but vesting is limited and will not be paid upon termination. For this reason, the City does not accrue any costs relating to sick leave.

Long-Term Obligations - In the Government-Wide Financial Statements, and Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in Postion. beb principal paycients of boit goyermint and busines type undies are repote as decreases in the balance of the liability on the Statement of Net Position. 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.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Non-Current Governmental Assets/Liabilities - GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.

Pension Plan - The City is not participating in any pension plan on behalf of its employees at this time.

Net Position - The government-wide and business-type activities fund financial statements utilize a net position presentation. Net positions are categorized as net investment in capital assets, restricted and unrestricted.

Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position - This category presents external restrictions on net position imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other purpose.
16 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 - Summary of Significant Accounting Policies (Continued) Fund Balance - In the fund financial statements, governmental fund balance is made up of the following components:
• Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments. • Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
• Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment. • Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed. • Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City's policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City's policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions 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 expenditures/expenses during the reporting period. Actual results could differ from those estimates. 17 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 2 - Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Government Code and the Maricopa Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds.

Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

Note 3 - Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 1,947,794
Cash and investments as of June 30, 2025 consist of the following:

Cash on hand 2,221
Deposits with Financial Institutions 591,684
Local Agency Investment Fund 1,353,889
Total Cash and Investments $ 1,947,794

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 - Cash and Investments (continued)
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level I: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs - other than quoted prices included within Level 1 - that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset's or liability's fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).

The City had the following recurring fair value measurements as of June 30, 2025:

June 30, 2025
Level l Level 2 Level 3 Balance
Investments by fair value level:

LAIF $ 1,353,889 $ $ 1,353,889
Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive that address interest rate risk, credit risk, and concentration of credit risk. The City's investment policy does not contain any specific provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 - Cash and Investments (Continued)
Maximum Maximum
Maximum or Pentale Investment
Authorized Investment Type Maturity In One Issuer
Local Agency Bonds 1 year None 5%
U.S. Treasury Obligations 1 year None None
U.S. Agency Securities 1 year None None
Banker's Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 5%
Negotiable Certificates of Deposit 1 year 30% None
Medium-Term Notes 1 year 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 1 year 20% None
Local Agency Investment Fund (LAIF) N/A None None
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio In One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 1 year None None
Commercial Paper None None None
Money Market Mutual Funds None None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
20 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 - Cash and Investments (Continued)
Disclosures Relating to 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. As of June 30, 2025 the City had the following investments.

Investment Type Maturity Date
Local Agency Investment Fund $ 1,353,889 N/A
Total $ 1,353,889
Disclosures Relating to Credit Risk
Generally, 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 minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type.

Minimum Rating as of Year End
Legal Not
Investment Type Rating Rated
Local Agency Investment Fund $ 1,353,889 N/A $ 1,353,889 Total $ 1,353,882 $ 1,353,889
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of 21 the secured public deposits.

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 - Cash and Investments (Continued)
The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Note 4 - Accounts Receivable
The City contracts with the County of Kern for collection of all Sewer and Refuse charges to customers.

These charges are included in the property owners' real property tax bills which are paid biannually. As such, the City receives the utility revenue twice a year, paralleling the Property Tax revenue receipt pattern in the General Fund. Due to this arrangement there is no aged utilities accounts receivable in the Sewer and Refuse Funds.

Note 5- Interfund Transactions
Interfund Receivables and Payables
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash, and carry an interest rate equal to the rate carned on pooled cash.

Individual fund interfund receivables and payables balances as of June 30, 2025 are as follows:

Due From Due To
Other Funds Other Funds
Major Governmental Funds:

General Fund $ $
706568 76,668
Local Transportation Fund - Transit
Major Enterprise Funds:

Sewer Fund 60,094
60,024
Refuse Fund -
$ 136,762 $ 136,762

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 - Interfund Transactions (continued)
Interfund Transfers
Transfers consisted of general fund subsidies of maintenance, capital projects for expenditures not eimbursable by other governments. The following schedule briefly summarizes the City's transfer activity Transfers In Transfers Out
Major Governmental Funds:

General Fund $ $ 17,360
Grants -
Local Transportation Fund - Transit 7,904
$ 17,360 $ 17,360
Note 6 - Capital Assets
Capital asset activity for the year ended June 30, 2025, was as follows:

Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Governmental Activities
Capital assets, not being depreciated
Land $ 75,000 $ - $ 75,000
Construction in progress 271,447 864,681 1,136,128
Total capital assets, not being depreciated 346,447 864,681 1.211.128 Capital assets, being depreciated
Buildings and improvements 670,766 670,766
Machinery and equipment 93.644 93.644
Total capital assets, being depreciated 764,410 764,410 Less accumulated depreciation for:

Buildings and improvements (473,065) (8,737) (481,802)
achinery and equipmer (24,767) (579) (25,346)
otal accumulated depreciatic (497,832) (2,316) (507,148) Total capital assets, being depreciated, net 266,578 (2,316) 257,262 Governmental activities capital assets, net 613.025 $ 855,365 $ $ 1.468.390

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 6 - Capital Assets (Continued)
Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Business-Type Activities
Capital assets, not being depreciated
Construction in progress $ 407,969 $ 29,625 $ = $ 437,594 Total capital assets, not being depreciated 407.969 29,625 437.594 Capital assets, being depreciated
Building 200,000 200,000
Improvements other than buildings 2,287,426 2,287,426
Machinery and equipment 102,968 102,968
Total capital assets, being depreciated 2,590,394 2,590,394 Less: accumulated depreciation (773,745) (61,854) (835,599) Total capital assets, being depreciated, net 1,816,649 (61,854) = 1,754,795 Business-type activities capital assets, net 2,224,618 $ (32,229) $ = S 2,192,389 Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

Public works $ 1,925
Parks and Recreation 7,198
Public safety 193
$ 9,316
Business-Type Functions:

Sewer $ 61,854
$ 61,854
Note 7 - Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSIVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each worker's compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City's account for liability losses under $10,000 and workers' compensation losses under $10,000. The CSJVRMA purchases excess reinsurance from $1,000,000 to $15,000,000. The CSJVRMA participates in an excess pool which provides Workers' Compensation coverage from $500,000 to $1,500,000 and purchases excess reinsurance above $1,500,000 to the statutory limit.
24 CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 - Risk Management (continued)
The CSJVRMA is a consortium of 55 cities in San Joaquin Valley, California. It was established under the member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

The financial statements of CSJVRMA can be obtained at 1831 K Street, Sacramento, CA 95814.

The latest audited financial information and the most current information available for CVRMA for fiscal year ended June 30, 2024 is as follows:

Total assets $ 153,984,502
Total liabilities 120,022,096
Net position $ 33,962,406
Total revenues $ 73,088,767
Total expenses 71,300,255
Increase/(decrease) in net position $ 1,788,512
Note 8 - Contingencies
Federal and State Government Programs - The City participates in several federal and state grant programs. These programs have been audited, as needed, in accordance with the provisions of the federal Single Audit Act of 1984 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.

Note 9 - Stewardship, Compliance and Accountability
Excess of Expenditures over appropriations - The following funds incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2025:

General Fund:

Current:

General government $ (136,041)
Public works and community development $ (13,225)
Public safety $ (41,852)
Gas Tax Fund
Current:

Public works and community development $ (1,584)
The excess expenditures were covered by other expense categories that had a surplus during the fiscal year or expected surpluses in future fiscal years.

CITY OF MARICOPA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 - Subsequent Events
The City evaluated subsequent events for recognition and disclosure through January 16, 2026, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025 that required recognition or disclosure in such financial statements.
26 REQUIRED SUPPLEMENTARY INFORMATION

CITY OF MARICOPA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 320,780 $ 320,780 $ 362,396 $ 41,616
Charges for services 1,300 1,300 1,434 134
Licenses and permits 6,000 6,000 20,518 14,518
Interest 72,348 72,348
Other 1,900 1,000 26,976 25,076
Total revenue 329,980 329,980 483,672 153,692
Expenditures
Current
General government 185,405 185,405 321,446 (136,041)
Public works and community development 24,417 24,417 37,642 (13,225) Parks and recreation 100,399 100,399 76,204 24,195
Public safety 17,197 17,197 59,049 (41,852)
Total expenditures 327,418 327,418 494,341 (166,923)
Revenue over (under) expenditures 2,562 2,562 (10,669) (13,231) Other Financing Sources
Transfers in (out) - net • 1 (17,360) (17,360)
-
Net Change in Fund Balance $ 2,562 $ 2,562 (28,029) $ (30,591) Fund Balance
Beginning of year 970,158
End of year $ 942,129
27 CITY OF MARICOPA

BUDGETARY COMPARISON SCHEDULE

PUBLIC SAFETY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 169,000 $ 169,000 $ 194,663 $ 25,663 Total revenue 169,000 169,000 194,663 25,663
Expenditures
Current
Public safety 167,711 167,711 152,298 15,413
Total expenditures 167,711 167,711 152,298 15,413
Net Change in Fund Balance $ 1,289 $ 1,282 42,365 $ 41,076 Fund Balance
Beginning of year 243,862
End of year $ 286,227
28 CITY OF MARICOPA

BUDGETARY COMPARISON SCHEDULE

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
= Original Final A mounts (Negative)
Revenue
Intergovernmental $ 30,000 $ 30.000 $ 33,129 $ 3,129
Total revenue - 30,000 30,000 33,129 3,129
Expenditures
Current
Public works and community developme 16,766 16,766 18,350 (1,584) Total expenditures 16,766 16,766 18,350 (1,584)
Net Change in Fund Balance $ 13,234 $ 13,234 14,779 $ 1,545 Fund Balance
Beginning of year 234,022
End of year $ 248,801
29 SUPPLEMENTAL ONLY INFORMATION

CITY OF MARICOPA

COMBINING BALANCE SHEET

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2025
Total
Non-major
Proposition Special Revenue
1B SBI Funds
ASSETS
Cash and investments $ 117,824 $ 159,045 $ 276,869
Due from other governmental agencies 4,934 4,934
Total assets $ 117,824 $ 163,979 $ 281,803

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense $ - $
-
Total liabilities
Fund Balance
Restricted for circulation improvements 117,824 163,979 281,803 Total fund balance 117,824 163.979 281.803
Total liabilities and fund balance $ 117,824 $ 163,979 $ 281,803 30 CITY OF MARICOPA

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2025
Total
Non-major
Proposition Special Revenue
1B SBI Funds
Revenue
Intergovernmental $ 27,999 $ 27,999
Total revenue 27,999 27,999
Expenditures
Current
Public works and community development
Total expenditures
Change in Fund Balance - 27,999 27,999
Fund Balance
Beginning of year 117,824 135,980 253,804
End of year $ 117,824 $ 163,979 $ 281,803
31 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Maricopa, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Maricopa, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Maricopa, California's basic financial statements, and have issued our report thereon dated January 16, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Maricopa, California's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Maricopa, California's internal control. Accordingly, we do not express an opinion on the effectiveness of City of Maricopa, California's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Maricopa, California's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
33 AGENDA ITEM
TITLE: Accept City of Maricopa TDA audit for Fiscal Year Ending June 30, 2024 PROPOSED BY: Eric G. Ziegler
MEETING DATE: February 24, 2026

RECOMMENDATION
Motion to Accept City of Maricopa TDA Audit for Fiscal Year Ending June 30, 2024.

BACKGROUND
Attached hereto is the audit of the City of Maricopa's TDA Funds for the fiscal year ending June 30, 2024. The audit was performed by Brown Armstrong, Certified Public Accountants under contract to the Kern Council of Governments (KernCOG).

Staff has cooperated with both KernCOG and Brown Armstrong to provide the necessary information to complete the audit resulting in the attached reports for Council consideration. Staff will briefly discuss the audit at the regularly scheduled Council meeting. It is important to note, however, that the auditor's conclusion is that financial statements associated with the audit present fairly, in all material respect, the respective financial position of the city's TDA funds for the year audited.

Staff recommends that Council favorably consider a motion to accept City of Maricopa TDA Audit for Fiscal Year Ending June 30, 2024.

City Adm.

Approval FISCAL IMPACT:
$
Funds Budgeted: Yes LiNo LI Amount Required
Eric G. Ziegler
Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance
DRAFT

CITY OF MARICOPA

TRANSPORTATION DEVELOPMENT ACT FUNDS

FISCAL AND COMPLIANCE AUDIT
PURSUANT TO SECTION 99245

OF THE PUBLIC UTILITIES CODE

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITOR'S REPORTS

FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
DRAFT

CITY OF MARICOPA

TRANSPORTATION DEVELOPMENT ACT FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

TABLE OF CONTENTS
Page
Independent Auditor's Report.. 1
Financial Statements
Balance Sheet - Streets and Roads Fund........ 4
Statement of Revenues, Expenditures, and Changes in Fund Balance - Streets and Roads Fund 5
Notes to the Financial Statements ... 6
Supplementary Information
Schedule of Project Status... 9
Other Reports
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 10 Independent Auditor's Report on State Compliance 12
DRAFT

INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Kern Council of Governments
Bakersfield, California
To the City Council
City of Maricopa
Maricopa, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Streets and Roads Fund (the Transportation Development Act (TDA) Fund) of the City of Maricopa, California (City), as of and for the fiscal year ended June 30, 2024, as listed in the table of contents, and the related notes to the financial statements. The June 30, 2023, summarized comparative information has been derived from the 2023 financial statements and is included for additional analysis only.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the TDA fund as of June 30, 2024 and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or 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.

DRAFT
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 auditing standards generally accepted in the United States of America 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 auditing standards generally accepted in the United States of America 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 relating to the TDA Fund. 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.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund of the City pursuant to Section 99245 of the Public Utilities Code and do not purport to, and do not, present the financial position of the City as of June 30, 2024, or the changes in its financial position for the fiscal year then ended, in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Required Supplementary Information
Management has omitted the 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. 2 DRAFT
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated 2025, on our consideration of the City's internal control over financial reporting as it relates to the TDA Fund and 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 complianc relating to the TDA Fund. 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 relating to the TDA Fund.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION
Bakersfield, California
_, 2025
3 DRAFT

CITY OF MARICOPA

STREETS AND ROADS FUND

BALANCE SHEET
JUNE 30, 2024

WITH COMPARATIVE TOTALS
2024 2023
ASSETS
Current Assets:

Cash and investments $ - $ 10,567
Due from other governments 135,353 89,243
Total Assets $ 135,353 $ 99,810

LIABILITIES AND FUND BALANCE
Current Liabilities:

Accounts payable $ 3,917 $ 8,675
Due to other funds 118,220 76,667
Total Liabilities 122,137 85,342
Fund Balance:

Restricted for TDA expenditure 13,216 14,468
Total Liabilities and Fund Balance $ 135,353 $ 99,810
•
The accompanying notes are an integral part of these financial statements.

DRAFT

CITY OF MARICOPA

STREETS AND ROADS FUND

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

WITH COMPARATIVE TOTALS
2024 2023

REVENUES
Local transportation fund $ 46,109 $ 45,885
Interest 4
Total Revenues 46,109 45,889

EXPENDITURES
Public works and community development 47,361 41,579
Change in Fund Balance (1,252) 4,310
Fund Balance, Beginning 14,468 10,158
Fund Balance, Ending $ 13,216 $ 14,468
The accompanying notes are an integral part of these financial statements.

DRAFT

CITY OF MARICOPA

TRANSPORTATION DEVELOPMENT ACT FUNDS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

WITH COMPARATIVE TOTALS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Streets and Roads Fund (the Transportation Development Act (TDA) The Governmental
described below.

A. Reporting Entity
The TDA provides funding of public transportation through regional planning and programming Council of Governments (KCOG). The TDA Fund accounts for the City's share of the TDA allocations, which are legally restricted for specific purposes as detailed in applicable sections of the Public Utilities Code.

The accompanying financial statements present only the TDA Fund of the City and are not intended to present fairly the financial position, changes in financial position, or cash flows of the City in conformity with accounting principles generally accepted in the United States of America.

The City Council does not adopt a budget that provides for the general operations of the City TDA Fund. As the City does not budget for general operations for the TDA Fund, a budget to actual comparison for the TDA Fund is not included as supplementary information.

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

The TDA Fund is a governmental fund that is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

C. Measurement Focus and Basis of Accounting
The TDA Fund is accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available and expenditures are recognized when the fund liabilities are incurred. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter (60 days) to be used to pay liabilities of the current period.
6 DRAFT
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus and Basis of Accounting (Continued) The TDA Fund reports unearned revenue on its balance sheet. Unearned revenue for this fund arises when potential revenue does not meet the "measurable" and "available" criteria for recognition in the current period or when resources are received in advance of meeting eligibility requirements.

In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized.

No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year.

D. Interfund Transactions
The City's General Fund may advance cash for payment of expenditures related to the TDA Fund.

Such amounts are classified as "Due to Other Funds" on the TDA Fund's balance sheet.

E. Grants
Grant revenues and receivables are recorded when all of the eligibility requirements imposed by the provider have been met. Grant sources include State Transit Assistance (STA) and Local Transportation Fund (LTF). The LTF and STA were created by the State Legislature under the TDA.

F. Transfers
The City transfers TDA funds from the General Fund to and from the TDA Fund when eligible TDA expenditures have been incurred for specific projects.

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

NOTE 2 - CASH AND INVESTMENTS
Cash balances of the TDA Fund are pooled with those of other funds of the City. Investment income resulting from this pooling is allocated among the funds based upon each respective fund's average cash balance in relation to the aggregate investment balance. Further information regarding the City's cash and investment pool may be found in the City's basic financial statements.

NOTE 3 - STATE OF GOOD REPAIR
On April 28, 2017, the governor signed the Road Repair and Accountability Act 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), which includes a program that will provide additional revenues for transit infrastructure repair and service improvements, known as the State of Good Repair (SGR) Program. This program received funding of approximately $105 million annually. SGR funds are to be made available for eligible transit maintenance, rehabilitation, and capital projects.

No funds were received or expended for the SGR Program for the fiscal year ended June 30, 2024. 7 DRAFT
NOTE 4 - SUBSEQUENT EVENTS
The date to which events occurring after June 30, 2024, have been evaluated for possible adjustments to the financial statements or disclosures is - 2025, which is the date that the financial statements were available to be issued. There were no events brought to our attention that were deemed to be reportable at that time.
8 DRAFT

SUPPLEMENTARY INFORMATION
DRAFT

CITY OF MARICOPA

STREETS AND ROADS FUND

SCHEDULE OF PROJECT STATUS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

WITH COMPARATIVE TOTALS
For the Fiscal Year Ended June 30, 2024
Project Description Beginning Balance LTF Allocation Allocation Adjustments Interest Earning Allocation Expenditures Ending Balance Operating:

Road and Street Light Maintenance 14,468 46,109 47,361 13,216 Total Operating 14,468 46,109 47,361 13,216
For the Fiscal Year Ended June 30, 2023
Project Description Beginning Balance LTF Allocation Allocation Adjustments Interest Earning Allocation Expenditures Ending Balance Operating:

Road and Street Light Maintenance 10,158 45,885 41,579 14,468 Total Operating 45,885 41,579 14,468
DRAFT

OTHER REPORTS
DRAFT

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Kern Council of Governments
Bakersfield, California
To the City Council
City of Maricopa
Maricopa, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Streets and Roads Fund (the Transportation Development Act (TDA) Fund) of the City of Maricopa, California (City), as of and for the fiscal year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated
Report on Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting (internal control) as it relates to the TDA Fund as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control relating to the TDA Fund. Accordingly, we do not express an opinion on the effectiveness of the City's internal control relating to the TDA Fund.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that were not identified.
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Report Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Fund financial statements are free from material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance relating to the TDA Fund and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance relating to the TDA Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance relating to the TDA Fund. Accordingly, this communication is not suitable for any other purpose.

This report is intended solely for the information and use of the Kern Council of Governments, City management, the City Council, California Department of Transportation, and the State Controller's Office and is not intended to be, and should not be, used by anyone other than these specified parties.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION
Bakersfield, California
2025
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INDEPENDENT AUDITOR'S REPORT ON STATE COMPLIANCE
To the Board of Directors
Kern Council of Governments
Bakersfield, California
To the City Council
City of Maricopa
Maricopa, California
Report on Compliance with Transportation Development Act Requirements We have audited the City of Maricopa, California's (City) compliance with Transportation Development Act (TDA) requirements that funds allocated to and received by the City were expended in conformance with applicable statutes, rules, and regulations of the TDA and the allocation instructions and resolutions of the Kern Council of Governments as required by Sections 6666 and 6667 of Title 21, Division 3, Chapter 2, Article 5.5 of the California Code of Regulations during the fiscal year ended June 30, 2024.

Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to the applicable statutes, rules, and regulations of the TDA.

Auditor's Responsibility
Our responsibility is to express an opinion on each of the City's compliance requirements referred to above. We have conducted our audit of compliance in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the Streets and Roads Fund (the TDA Fund), allocated for transit and non-transit purposes, occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

Opinion on Transportation Development Act Compliance
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the City for the fiscal year ended June 30, 2024. 12 DRAFT
Purpose of this Report
The purpose of this report on compliance is solely to describe the scope of our testing of compliance and the results of that testing. Accordingly, this report is not suitable for any other purpose.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION
Bakersfield, California
, 2025
13 AGENDA ITEM
TITLE: Discussion/Direction/Action re Payment of Bills/Signing Checks PROPOSED BY: Mayor Morse
MEETING DATE: February 24, 2026

RECOMMENDATION
None

BACKGROUND
This item is on the agenda at the request of Mayor Morse City Adm.

Approval FISCAL IMPACT:
$
Eric G. Ziegler Funds Budgeted: Yes Lo I Amount Required Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance

AGENDA ITEM
TITLE: Notification in Event of Absence
PROPOSED BY: Council Member Horn
MEETING DATE: February 24, 2026

RECOMMENDATION
None

BACKGROUND
This item is on the agenda at the request of Council Member Horn City Adm.

Approval FISCAL IMPACT:
$
Eric G. Ziegler Funds Budgeted: Yes Amount Required
Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance

Maricopa City CouncilFebruary 24, 2026

Maricopa City Council
February 24, 2026